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2051. Japanese Economic Stagnation: Still in Neutral

Author:
Edward Lincoln
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
One of the discouraging problems in Northeast Asia over the past decade has been the lengthy malaise in the Japanese economy and the inability of government, business, and the public to forge effective solutions. In the decade since 1992, the average annual real (inflation-adjusted) economic growth rate has been only one percent—positive but very low and punctuated by four recessions in which gross domestic product (GDP) fell for at least two consecutive quarters. The financial sector is weighed down under an enormous amount of non-performing loans that has only grown larger over time. Meanwhile, Japan has become the first industrial country since the 1930s to experience deflation—a decline in the overall price level.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
Japan, Asia, and Northeast Asia

2052. Chinese State, Chinese Society: Facing a New Century

Author:
Jae Ho Chung and Zhang Ye
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The Sixteenth Congress of the Chinese Communist Party (CCP) was convened during November 8-15, 2002. The Congress reconfirmed the Party's strong commitment to the three key tasks of achieving modernization, accomplishing national unification, and safeguarding world peace and development. The outgoing CCP General Secretary Jiang Zemin, on behalf of the Fifteenth Central Committee, emphasized the need for further political changes at the grassroots and presented the target of quadrupling China's gross domestic product (GDP) by 2020. Jiang also projected that China's armed forces would possess fewer but better troops “ with Chinese characteristics. ”
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
China and Asia

2053. Crisis on the Korean Peninsula

Author:
Richard Bush, Dean Nowowiejski, and Tomatsu Nakano
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Most signs during the late summer and early fall of 2002 pointed to progress on the Korean peninsula. North Korean leader Kim Jong Il had finally grasped, it appeared, the need for international moderation and domestic reform. The United States seemed ready to respond in kind. But with the visit to Pyongyang in October of U.S. Assistant Secretary of State James Kelly – the first high-level contact since the Bush Administration came into office – the situation quickly unraveled. Instead of offering the “bold initiative” that was reportedly in the works, Kelly confronted his interlocutors with evidence that their government had mounted a new, clandestine uranium-based nuclear program. The North Koreans refused to disavow the program and insisted on their right to nuclear weapons. Kelly responded that the United States would not engage the DPRK unless and until it abandoned the program. The status of the 1994 U.S.-DPRK Agreed Framework, which had capped North Korea's plutonium-based program in return for international assistance in meeting its civilian energy needs, was uncertain at best. The Korean Peninsula Energy Development Organization (KEDO), the mechanism for providing that aid, stopped heavy fuel oil shipments to North Korea at the end of 2002 at American insistence.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States, Asia, Korea, and Sinai Peninsula

2054. Brookings Northeast Asia Survey, 2002-03

Author:
Catharin Dalpino and Richard Bush
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This is the third edition of the Northeast Asian Survey, sponsored by the Center for Northeast Asian Policy Studies of the Brookings Institution. Following this review of developments in the region during 2002, the bulk of the volume is composed of essays that provide mid-term perspectives on internal dynamics in China, Hong Kong, and Japan, on the crisis on the Korean peninsula, and on relations between China and Taiwan and on China and Southeast Asia. All the authors have been affiliated with the Brookings Institution during the 2002-03 year. Most were CNAPS Visiting Fellows or Brookings Federal Executive Fellows.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
China, Taiwan, Asia, Southeast Asia, Hong Kong, and Northeast Asia

2055. Options for Dealing with North Korea

Author:
Ted Galen Carpenter
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
North Korea's recent actions in violation of the clear intent of the agreement it signed in 1994 to freeze its nuclear program have ignited a crisis in northeast Asia. Unfortunately, all of the frequently discussed options for dealing with this crisis have major drawbacks.
Topic:
International Political Economy, Nuclear Weapons, Treaties and Agreements, and Weapons of Mass Destruction
Political Geography:
Asia and North Korea

2056. Whither Europe?

Author:
Barry Eichengreen
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
Where I live, on the West Coast of the United States, and teach, at the University of California, Europe seems far away. Geographically we are closer to Latin America and Asia. Ethnically, Californians of Hispanic and Asian-American descent are increasingly numerous. Within 20 years, residents of European origin will be a minority; already they are a minority of the undergraduates enrolling at Berkeley. Economically as well, we look to Asia. It is in California where the largest number of container ships arriving from Asia are unloaded, and it is across the Pacific, and in China in particular, that most of those containers originate.
Topic:
Economics and Political Economy
Political Geography:
United States, China, Europe, Asia, California, and Latin America

2057. Institutions for Fiscal Stability (Financial Integration in Europe and Asia)

Author:
Barry Eichengreen and Yung Chul Park
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
One of the most striking aspects of Europe's recent development has been the growth and integration of financial markets. Bond markets have grown explosively since the advent of the euro. Cross border transactions in government bonds have risen sharply with the emergence of the German bund as a benchmark asset, while the volume of corporate bond issues has grown even more dramatically. Securities markets are consolidating around London and Frankfurt, which are competing for the mantle of Europe's dominant financial center. This rapid market integration has raised questions about the viability of Europe's traditional model of bank-based financial intermediation, causing commercial and investment banks to respond with a wave of mergers and acquisitions.
Topic:
Economics and Political Economy
Political Geography:
Europe, Asia, London, and Germany

2058. Participation in a Decentralized Housing Allowance Program in a Transition Economy

Author:
Tatiana Lykova, Sergei Sivaev, Raymond J. Struyk, and Ekaterina Petrova
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
When Russia's housing allowance program, the country's first means-tested program, was introduced in 1994, it was truly innovative. But there were difficulties from the start, many arising from the division of authority for setting program parameters among different levels of government and the potential for variation in the treatment of similar households in different cities. In 1996, the program's original simple basis for benefit determination was seriously impaired by the introduction of different principles for very low-income households. Moreover, local governments have exhibited a willingness to vary benefits from year-to-year, depending on political and budgetary considerations. The analysis presented here documents the impact of these variations on participation rates in a sample of Russian cities. Large inequities are obviously present in the treatment of similar households from city to city. Indeed, it is questionable whether the program as currently configured is fulfilling the social safety net function envisioned for it in the original legislation.
Topic:
Development, Government, and Human Welfare
Political Geography:
Russia, Europe, and Asia

2059. Russia's Winter Woes: Tariff Setting for Local Utilities in a Transition Economy

Author:
Sergei Sivaev, Raymond J. Struyk, Valentin Andrianov, and Emin Askerov
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
During the past two winters, breakdowns in district heating services in Russia have grabbed international headlines. In Russia these services and water and sewerage services are the responsibility of municipal governments; these governments set the tariffs for these services. This article examines the tariff-setting process during 1997–2001 for these two services with particular emphasis on the decision process for considering tariff increases. We find that little progress has been made during the transition period in developing the legal base for rational tariff-setting procedures. Overall, tariff increases have been substantially less than the rate of inflation. Statistical analysis confirms that decisionmaking is highly politicized and that in times of extreme inflation tariff increases lag even further behind inflation, with the sector being used as a kind of shock absorber to cushion the full impacts of inflation on the population. There is an obvious acute need for leadership at the national level to address these problems.
Topic:
Development, Energy Policy, and Government
Political Geography:
Russia, Europe, and Asia

2060. A Decomposition Analysis of Regional Poverty in Russia

Author:
Anthony Shorrocks and Stanislav Kolenikov
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper applies a new decomposition technique to the study of variations in poverty across the regions of Russia. The procedure, which is based on the Shapley value in cooperative game theory, allows the deviation in regional poverty levels from the all- Russia average to be attributed to three proximate sources; mean income per capita, inequality, and local prices. Contrary to expectation, regional poverty variations turn out to be due more to differences in inequality across regions than to differences in real income per capita. However, when real income per capita is split into nominal income and price components, differences in nominal incomes emerge as more important than either inequality or price effects for the majority of regions.
Topic:
Economics and Poverty
Political Geography:
Russia, Europe, and Asia

2061. Illegal Immigration, Human Trafficking, and Organized Crime

Author:
Raimo Väyrynen
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
It is important to make a careful distinction between illegal immigration, human smuggling, and human trafficking which are nested, but yet different concepts. This distinction is relevant because these different categories of the illegal movement of people across borders have quite different legal and political consequences. Human smuggling and trafficking have become a world-wide industry that 'employs' every year millions of people and leads to the annual turnover of billions of dollars. Many of the routes and enclaves used by the smugglers have become institutionalized; for instance, from Mexico and Central America to the United States, from West Asia through Greece and Turkey to Western Europe, and within East and Southeast Asia. More often than not flourishing smuggling routes are made possible by weak legislation, lax border controls, corrupted police officers, and the power of the organized crime. Naturally, poverty and warfare contribute to the rising tide of migration, both legal and illegal.
Topic:
Environment and Human Welfare
Political Geography:
United States, Europe, Turkey, East Asia, Greece, Asia, Latin America, Central America, North America, Mexico, Southeast Asia, Western Europe, and West Asia

2062. Quo Vadis? Inequality and Poverty Dynamics across Russian Regions

Author:
Ruslan Yemtsov
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper analyses regional data on inequality and poverty in Russia during 1994-2000 using published series from the regionally representative Household Budget Survey. The paper finds that the share of inequality in Russia coming from the between-regions component is large (close to a third of the total inequality), growing, and accounts for most of the increase in national inequality over 1994-2000. The paper demonstrates an absence of interregional convergence in incomes across Russian regions using various techniques. On the other hand, the paper finds evidence of convergence in inequality within regions, trended towards an internationally high level. Based on these two findings, the paper projects dynamics of inequality and poverty in Russia over a ten-year time horizon. The projections show that if the observed trend continues, by 2010 the absolute majority of Russia's poor will be concentrated in a few permanently impoverished regions, while relatively more affluent regions will become virtually free of poverty. Finally, the paper relates fluctuations in inequality within regions to a set of factors classified into four broad categories: endowments and initial conditions, preferences, policies, and shocks. Among these factors short-run fluctuations of the unemployment rate are revealed as significant and strong signals of inequality.
Topic:
Demographics, Economics, and Poverty
Political Geography:
Russia, Europe, and Asia

2063. Externalities in Rural Development: Evidence for China

Author:
Martin Ravallion
Publication Date:
07-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The paper tests for external effects of local economic activity on consumption and income growth at the farm household level using panel data from four provinces of post-reform rural China. The tests allow for nonstationary fixed effects in the consumption growth process. Evidence is found of geographic externalities, stemming from spillover effects of the level and composition of local economic activity and private returns to local human and physical infrastructure endowments. The results suggest an explanation for rural underdevelopment arising from underinvestment in certain externality-generating activities, of which agricultural development emerges as the most important.
Topic:
Development and Economics
Political Geography:
China and Asia

2064. Social and Economic Decline as Factors in Conflict in the Caucasus

Author:
Svetlana Glinkina and Dorothy Rosenberg
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We argue that the conflicts in the Caucasus are the result of the abrogation by the elite of the earlier, Soviet era, social contract. This process was accompanied by the collapse of the formal economy; evidenced by huge national income compression, falling public goods provision, and growing inequality and poverty. In the absence of state provision of basic amenities and governance, ordinary people are compelled to fall back on kinship ties. Declining standards of governance facilitate state-sponsored corruption and criminality in a setting where the shadow economic activity is increasingly important to individual survival strategies. Oil pipelines and the right to control the transit of goods both legal and illegal also underlie conflict in the region. Criminality has replaced ethnicity as the major motivation for conflict and conflict per se has become a lucrative source of income.
Topic:
Economics, Ethnic Conflict, and Poverty
Political Geography:
Russia, Europe, Asia, and Soviet Union

2065. In the Shadow of a Cease-fire: The Impacts of Small Arms Availability and Misuse in Sri Lanka

Author:
Chris Smith
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Small Arms Survey
Abstract:
Sri Lanka appears to be entering the final chapter of the 20-year civil war between the Government of Sri Lanka and the Liberation Tigers of Tamil Eelam (LTTE). Although it may be too early to assess, and the peace process is currently stalled, it does seem that the LTTE is more serious about a sustained peace process than at any time since the violence erupted in 1983.
Topic:
Conflict Resolution, International Relations, and Arms Control and Proliferation
Political Geography:
Asia and Sri Lanka

2066. Policy Recommendations for the Third Tokyo International Conference on African Development (TICAD III)

Publication Date:
09-2003
Content Type:
Working Paper
Abstract:
The world is now several years into the twenty-first century. However, Africa remains a place faced with many difficulties, from violent conflicts to poverty and disease. A cursory examination of Africa today shows that the majority of the people in this region are not able to raise their incomes, and that the number of Africans living in poverty continues to increase, despite the fact that their countries receive considerable aid from the international community.
Topic:
Development, Human Welfare, and Non-Governmental Organization
Political Geography:
Africa and Asia

2067. Yemen between Democratization and Prolonged Power

Author:
Hiroshi Matsumoto
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
The purpose of this paper is to present my own views on Yemen's moves to democratize. In order to do so, I will analyze a variety of issues related to the electoral system in Yemen and Yemeni political parties.
Topic:
Democratization
Political Geography:
Asia

2068. Sino-Japanese Relations Entering A New Stage- With the Trend of the Times, Broader Perspective as A Fresh Starting Point

Author:
Yang Bojiang
Publication Date:
01-2003
Content Type:
Working Paper
Abstract:
Relations between China and Japan have weathered 30 turbulent years since the normalization of diplomatic ties in 1972. This period of 30 years can be divided roughly in half into the first and second parts. From 1972 to the late 1980s, when the world had the bipolar polygenetic political and military structures, the two countries took down the barriers of the Cold War to restore normal exchanges between the states and their cooperative relationship achieved rapid development in areas of trade, finance and technologies. In the period between the end of the Cold War and the present day, the bilateral relationship has entered the new stage where friction and collaboration coexist as do competition and cooperation amid the progress in political multipolarization and economic globalization of the world.
Topic:
International Trade and Finance and Regional Cooperation
Political Geography:
China and Asia

2069. Went for Cost, Stayed for Quality?: Moving the Back Office to India

Author:
Rafiq Dossani and Martin Kenney
Publication Date:
11-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Will the next great wave of globalization come in services? Increasingly, components of back-office services, such as payroll and order fulfillment, and some front-office services, such as customer care, are being relocated from the United States and other developed countries to English-speaking, developing nations—especially India, but also other nations, such as the Philippines. Though moving service activities offshore is not entirely new, the pace has quickened of late. The acceleration of this business process offshoring (BPO) is intertwined, though not synonymous, with another phenomenon, namely an increasing willingness by firms to outsource what formerly were considered core activities. It is significant that a substantial number of service activities might move offshore, because it was once thought that service jobs were the future growth area for developed country economies. Manufacturing, by contrast, would relocate to lower labor cost regions offshore. Notably, the services commonly known as “business processes” (BPs) are among the fastest growing job categories in the United States (Goodman and Steadman 2002). Should these jobs begin to move offshore, a new tendency may be under way in the global economy that will be as or more important than the relocation of manufacturing offshore, and might necessitate a rethinking of government policies across a wide spectrum.
Topic:
International Relations and Globalization
Political Geography:
United States, India, Asia, and Philippines

2070. Emerging Third Stage Peri-Urbanization: Functional Specialization in the Hangzhou Peri-Urban Region

Author:
Douglas Webster, Jianming Cai, Binyi Luo, and Larisa Muller
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Hangzhou Municipality is the provincial capital of Zhejiang, on China's east coast. It forms part of the Yangtze River Delta (YRD) region. Hangzhou was “opened up” in the mid-1980s, following Deng Xiaoping's visit to the South, resulting in an almost immediate flood of foreign and domestic investment in manufacturing. This initial investment was significantly in the peri-urban areas, i.e., outside the built-up area. The authors have been following development in the Hangzhou extended urban region, with emphasis on peri-urbanization processes, since 2000. A previous APARC discussion paper describes findings of preliminary field research on the Hangzhou–Ningbo Corridor, conducted in August 2000 and March 2001. The present paper zooms in on two peri-urban clusters in the Hangzhou extended urban region, and assesses their development over time. The goal of the research is to better understand how a peri-urban region changes—particularly in terms of firm evolution, labor characteristics, and spatial dynamics—as it becomes more economically and demographically mature. This paper also examines such changes in the context of the increasing cost structures and emerging competitors, primarily from other areas in China, that the Hangzhou peri-urban region now faces.
Topic:
Demographics, Economics, and Industrial Policy
Political Geography:
China, Asia, and Maryland

2071. Spatial and Temporal Patterns of Urban Dynamics in Chengdu, 1975–2002

Author:
Douglas Webster, Jianming Cai, Binyi Luo, Annemarie Schneider, and Karen C. Seto
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Chengdu, the provincial capital of Sichuan, has undergone rapid transformation during China's post-reform period between 1978 and 2003. One of the leading cities in southwest China, Chengdu is second only to Chongqing in population. Chengdu anchors one end of the Chongqing-Chengdu urban corridor, the fourth most populous urban cluster in China. Although the upgrading of Chongqing Municipality to the equivalent of provincial status in 1997 has increased the city's profile and potential as an administrative, land transportation, and manufacturing center, it is expected that Chengdu's regional and strategic importance as a service and high-tech center will increase in the future. With increased economic specialization among Chinese cities, it is expected that Chengdu and Chongqing cities will increasingly complement each other in terms of function, both enhancing their developmental prospects as a result. Further, the development of western China is a major objective of the Tenth Five Year Plan. The “Go West” policy was introduced in 1999.
Topic:
Economics, Government, and Politics
Political Geography:
China, Asia, Chongqing, and Chengdu

2072. Tax Reforms for Enhancing the Stable Development of the Chinese Financial System

Author:
Lawrence J. Lau and Guijuan Wang
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
The Chinese economy has had the highest rate of growth in the world in the past two decades. However, despite its rapid growth and the significant improvements in its financial system, serious risks and problems still exist in both the commercial banking sector and the stock market, that may potentially threaten the stable development and growth of the entire economy. In this paper, these risks and problems in the stock market and the commercial banking sector are identified. Possible solutions are then discussed. Finally, tax reforms are proposed that have the effects of (1) eliminating the double taxation on cash dividends from corporate profits; (2) encouraging the substitution of new equity for existing debt by corporations, which can lower the P/E ratios without lowering the stock prices and improve quality of commercial bank assets by reducing the probability of new nonperforming loans; and (3) attracting new and longer-term investors, both domestic and foreign, to the Chinese stock market. It is also shown that the proposed tax reforms will not result in a significant reduction in total fiscal revenue.
Topic:
Economics and Government
Political Geography:
China and Asia

2073. The Politics of China's Shareholding System

Author:
Mary Comerford Cooper
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
This paper considers two questions. First, why did the Chinese government establish stock markets? Second, how have political interests shaped the key features of these markets? Based on both interviews and statistical analysis, the paper argues that China's top Party-State leaders attempted to create stock market institutions that allow the state to maintain control over listed companies, and over “the market” as a whole.
Topic:
Economics and Government
Political Geography:
China, Israel, East Asia, and Asia

2074. Local Governments and the Chinese Stock Market

Author:
Mary Comerford Cooper
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
This paper examines a key aspect of the politics of stock markets in China—the distinct differences in interests between central government leaders and local governments. Central government leaders have a powerful incentive to promote macroeconomic stability and good performance of the stock market. Local leaders, for their part, are less concerned with the overall performance of the stock market than with gaining access to the stock market for companies under their own jurisdiction. The paper demonstrates that company listing brings tangible economic benefits to municipalities. Listed companies are associated with higher levels of gross domestic product (GDP), budgetary revenue, and industrial and commercial tax revenue. Therefore, it is not surprising that local officials put substantial effort into lobbying for the right to list additional companies on the national stock exchanges.
Topic:
Communism, Democratization, Economics, and Government
Political Geography:
China and Asia

2075. Addressing the North Korea Nuclear Challenge

Author:
Michael H. Armacost, Daniel I. Okimoto, and Gi-Wook Shin
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
North Korea's renewed bid for nuclear weapons poses an urgent, serious foreign policy challenge to the United States. The current situation—though it bears a resemblance to the events of 1993–1994—is far more dangerous and difficult. North Korea has developed longer-range ballistic missiles; South Korea's growing nationalism has put its U.S. relations on shakier ground; and the United States is distracted by the wars on terrorism and for regime change in Iraq.
Topic:
Nuclear Weapons and Weapons of Mass Destruction
Political Geography:
United States, Iraq, Israel, East Asia, Asia, South Korea, North Korea, and Palestine

2076. Sociological Dimensions of China's Economic Transition: Organization, Stratification, and Social Mobility

Author:
Andrew G. Walder
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Despite skepticism about official economic statistics, there is little doubt that China since 1978 has undergone an economic transformation of historic proportions. This outcome stands in stark opposition to arguments that were once widely accepted in several scholarly communities, and which are still highly influential even today. In the early 1980s there was wide agreement that “partial” reform, under a single party dictatorship that sought indefinitely to preserve public ownership, was a recipe for failure. China specialists, students of comparative economic systems, and economists who advised governments and international agencies about postcommunist restructuring in Eurasia were initially in broad agreement on this point.
Topic:
Economics, Government, and Politics
Political Geography:
China and Asia

2077. International Organizations and Democratization: Testing the Effect of GATT/WTO Membership

Author:
Mary Comerford Cooper
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Does the World Trade Organization promote democracy? A large part of the heated and protracted debate over China's application for WTO membership revolved around this question. Prior to China's WTO accession in December 2001, this debate had dragged on for nearly fifteen years. While one side argued that WTO membership would promote democratization in China, others argued that the wealth generated through economic integration would provide the resources to maintain authoritarian rule. Only time will tell whether WTO accession will contribute to pressures for democratization in China. In the meantime, however, this paper examines the empirical basis for these competing claims about the effects of GATT/WTO memberships on domestic political systems. Based on statistical analysis of a global data set, this paper concludes that members of the international trade regime are more likely than nonmembers to be democracies. However, there is little evidence that WTO membership in itself can promote democratic transition. Instead, it appears to be the case that democratic countries are more likely to seek to join the WTO.
Topic:
Communism, Democratization, Economics, and Government
Political Geography:
China and Asia

2078. Politics and Property in Transitional Economies: A Theory of Elite Opportunity

Author:
Andrew G. Walder
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Command economies gave communist-era elites administrative control and material privilege but severely restricted money income and private wealth. Markets and privatization inject new value into public assets and create unprecedented opportunities for elite insiders to extract incomes or assume ownership. These opportunities vary with the extensiveness of regime change and the barriers to asset appropriation. Within these limits, they further vary with the concentration and form of economic assets and structural changes induced by reform. Elite advantages are smallest where regime change is extensive and barriers to asset appropriation are high, and in small-scale economies that grow rapidly. In China, there has been no regime change and privatization has been delayed and slow. In the rural economy, elites keep their posts as a source of economic advantage, while low entry barriers to household enterprise and rapid growth have created new entrepreneurial elites. After two decades, rural officials nonetheless enjoy large net income advantages that grow along with the expansion of labor markets and private entrepreneurship. These are not generic outcomes of market reform, but the product of market reform in distinctive political and structural conditions.
Topic:
Communism, Economics, Government, and International Trade and Finance
Political Geography:
China and Asia

2079. The Paradox of Korean Globalization

Author:
Gi-Wook Shin
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Some months ago a Stanford freshman came to ask for help on his project on Korea. At the time, I thought he was a Korean American, given that his command of both English and Korean is excellent. To my surprise, I learned that he was educated until high school in Korea and had never been to the United States before coming to Stanford. He surprised me further when he told me about his high school, the Korean Minjok Leadership Academy (KMLA). Located in a remote area of Kwangwon province—arguably the more underdeveloped region in South Korea—KMLA aspires to be Korea's version of Eton. The school's goal is to produce Korea's future leaders, and to instill in them a strong national identity (see its website at http://www.minjok.hs.kr). Fascinated by what he told me, I made a visit to his high school in fall 2002.
Topic:
Economics, Globalization, and Nationalism
Political Geography:
United States, America, Asia, and Korea

2080. China's New Leadership: Paradoxes, Characteristics and Implications

Author:
Cheng Li
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
In his seven-decade-long academic career, the great British historian, Joseph Needham, tried to explain what Sinologists later called “the Needham Paradox.” It was a paradox that, while traditional China had many talented people and was advanced in science, the country declined during the middle part of the last millennium. According to Needham, a primary reason for the decline of China was that the country “lost its edge” by suppressing technicians and merchants “whose power posed a threat to the Emperor.”
Topic:
Government
Political Geography:
China, Israel, East Asia, and Asia

2081. The Prospects for Political Reform in China: Religious and Political Expression

Author:
Richard Madsen
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Religion is flourishing in China today. After being severely restricted in the first decade and a half of the Maoist era, virtually all forms of public religious practice were suppressed during the Cultural Revolution and replaced by a quasi-religious cult of Mao, complete with sacred texts (the Little Red Book), rituals, and claims of miracles. But the Mao cult imploded amid the chaos of the Cultural Revolution. After the death of Mao and the overthrow of his close associates, the Deng Xiaoping regime relaxed restrictions on religious practice; and the freedoms of an expanding market economy made the remaining restrictions easy to subvert. In this environment, hundreds of religious flowers began to bloom, some of them replications of pre-revolutionary religious forms, many others new mutations of the old. According to the government's own—almost certainly underestimated—figures, there are over 100 million religious believers in China today. The real number is probably several times as large.
Topic:
Politics and Religion
Political Geography:
China, Israel, East Asia, and Asia

2082. Taiwan in U.S.-China Relations

Author:
Shelley Rigger
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
It is hardly a revelation that U.S. relations with Taiwan and the People's Republic of China are vexed and vexing. Managing U.S. relationships with Taiwan and China has never been easy, but the trend seems to be toward ever greater complexity and ever higher stakes. The U.S. is like a helicopter pilot carrying out a rescue at sea. The pilot is struggling to hover above the boat, which is drifting and heaving, while the wind does its best to blow his craft out of the sky. Meanwhile, the passengers on the deck are fighting over who gets to go up first. Like the helicopter pilot, U.S. policy makers must hold a steady course while they wait for Taiwan and China to resolve their differences. They also would like to do what they can to speed up the negotiations down on the deck.
Topic:
Foreign Policy
Political Geography:
United States, China, Israel, Taiwan, East Asia, and Asia

2083. Taiwan's Approach to Cross-Strait Relations

Author:
Ying-jeou Ma
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Civil war broke out between the Nationalist Kuomintang (KMT) Government of China and the Chinese Communist forces shortly after Japan surrendered to the Allied forces in 1945. Having occupied most of the country by mid-1949, the Chinese Communists proclaimed in Beijing the establishment of the People's Republic of China (PRC) on October 1, 1949. The Nationalist Government retreated to Taiwan, an island of 13,969 square miles just 90 miles off the coast of the Chinese Mainland, in December that year and continued to call itself the Republic of China (ROC). Sporadic battles continued in coastal areas of the Chinese Mainland.
Topic:
Foreign Policy and Government
Political Geography:
United States, Japan, China, Israel, Taiwan, Beijing, East Asia, Asia, and Island

2084. The Chinese Economy: WTO, Trade, and U.S.-China Relations

Author:
Barry Naughton
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
The Chinese economy is showing extraordinary dynamism, which partly reflects the early impact of the commitments in China's WTO accession agreement to liberalize the economy. Incoming foreign investment has increased, and trade has grown rapidly. At the same time, China is grappling with serious economic problems that may worsen in the near future. The most difficult problem in crafting China policy is deciding how to respond flexibly to this extraordinary mixture of dynamism and fragility. Rapid growth gives the Chinese economy remarkable resilience; but deep-seated institutional weakness and stubborn problems of poverty and unemployment create dangers of social and economic disruption. An effective U.S. China policy must navigate between the extremes of over-estimating China's current economic strength and under-estimating her potential.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States, China, and Asia

2085. Voluntary associations and region building. A post-national perspective on Baltic history

Author:
Jörg Hackmann
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Voluntary associations are a major topic of historical research on nation building and civil society in Europe. This paper focuses on the associational sphere in the Baltic provinces of Tsarist Russia and tries to outline the impact of associations on modern societies in this region. The first section addresses the legal and social frameworks of voluntary associations, followed by a sketch of developmental trends in the nineteenth and early twentieth centuries. The next sections discuss the role of voluntary associations within the concepts of civil society and cultural nation building. Slightly different from conventional functionalist national discourses, it is argued here that, in the perspective of cultural history, voluntary associations contributed considerably to the emergence of the region of North Eastern Europe, a region shaped by close cultural contacts and inter-ethnic relations within the Baltic Sea region as well as by the strivings of the small nations to integrate with larger European structures.
Topic:
Civil Society and Regional Cooperation
Political Geography:
Russia, Europe, and Asia

2086. Chinese Military Power

Author:
Harold Brown, Adam Segal, and Joseph W. Prueher
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
The People's Republic of China (PRC) is currently engaged in comprehensive military modernization. This report addresses the state of China's military capability, assesses the current capabilities of the People's Liberation Army (PLA), and establishes milestones for judging the future evolution of Chinese military power over the next twenty years. These assessments and milestones will provide policymakers and the public with a pragmatic and nonpartisan approach to measuring the development of Chinese military power. They will allow observers of Chinese military modernization to determine the degree to which changes in the quantity and quality of China's military power may threaten the interests of the United States, its allies, and its friends; and how the United States should adjust and respond politically, diplomatically, economically, and militarily to China's military development.
Topic:
Defense Policy
Political Geography:
United States, China, and Asia

2087. Taiwan Strait III: The Chance of Peace

Publication Date:
06-2003
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Apparently irreconcilable positions on the 'one China' principle have emerged between China and Taiwan over the last decade, with Taiwan for some time now asserting not only that it is a separate political entity but an independent sovereign country. China for its part remains absolutely unwilling to compromise its position that Taiwan and the mainland are part of one country, and has not renounced the use of force as a means of making that principle a reality. The risk of war between them must, accordingly, continue to be taken seriously.
Topic:
International Relations, Peace Studies, and Sovereignty
Political Geography:
China, Taiwan, and Asia

2088. Taiwan Strait II: The Risk of War

Publication Date:
06-2003
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
China's underlying position on its cross-Strait relations, however strong its current commitment to peaceful diplomacy, is that Taiwan must make sustained, visible progress toward a peaceful settlement or risk a resort to armed hostilities. It has also indicated that any move by Taiwan that might demonstrate its substantive rejection of this new demand could well be the last straw.
Topic:
International Relations, Sovereignty, and War
Political Geography:
China, Taiwan, and Asia

2089. Taiwan Strait I: What's Left of 'One China'?

Publication Date:
06-2003
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
In the last decade, Taiwan has moved slowly but surely away from its commitment to the idea of 'one China', the proposition, long agreed on both sides of the Taiwan Strait, that Taiwan and the mainland are parts of one country. This has led to steadily mounting tension between Taiwan and China, for both of whom the issue goes to the heart of their sense of identity. While the prospect of an outbreak of war across the Strait remains distant, action is needed by all relevant parties to contain and reverse the situation.
Topic:
Government, Politics, and Sovereignty
Political Geography:
China, Taiwan, and Asia

2090. Through the Fog of Peace Building: Evaluating the Reconstruction of Afghanistan

Author:
Barnett Rubin, Abby Stoddard, and Humayan Hamidzada
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Center on International Cooperation (CIC)
Abstract:
A year and a half after the defeat of the Taliban, anger is rising in Afghanistan at the slow pace of reconstruction. Success in reconstruction means meeting goals, not fulfilling pledges or being generous. The overriding goal is enabling Afghans to build a country that contributes to, rather than threatens, their own and global security. As the government of Afghanistan becomes better organized and articulates both this goal and what is needed to reach it more clearly, it has become evident that donors underestimated the amount of assistance required. Initial pledges fell short even of underestimates of the needs and were far less than in other comparable cases. Initial disbursements, which in past cases have always exceeded subsequent ones, came relatively quickly and nearly met pledges, as donors have highlighted (see figure 1). But most of these disbursements went for emergency humanitarian needs, not reconstruction. Implementation of those reconstruction projects that have been funded has been exceedingly slow, leaving little to show on the ground. As of May 2003, donors reported that in 17 months they had completed reconstruction projects with a total expenditure of only $191 million, out of $2.1 billion pledged to reconstruction for the first twelve months. Furthermore, according to Afghan government figures, only 16 percent of the total disbursements (including for humanitarian purposes) had passed through channels controlled by the struggling Afghan government and had thus failed to build that government's capacity or legitimacy. The pervasive insecurity outside of Kabul prevented implementation of major projects and sapped the public's confidence in the new authorities. Failure to strengthen the government and provide security will doom the reconstruction effort even if contributions increase. The government has articulated an ambitious policy framework for reconstruction and asked for both reconstruction and security assistance. Success is possible, and at a modest cost. Failure by the US and other major states to respond will doom Afghanistan, the region, and the world to a repetition of anarchy that gave birth to the Taliban and refuge to al-Qaida.
Topic:
Development, International Cooperation, and Peace Studies
Political Geography:
Afghanistan, United States, Asia, and Taliban

2091. The Politics of Center-Periphery Relations in Afghanistan

Author:
Barnett Rubin and Helena Malikyar
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
Center on International Cooperation (CIC)
Abstract:
The relationship of the central government of Afghanistan to the other units of government is in many ways a proxy for the relationship of state to society. It would not be so if the state were more institutionalized and in control of the territory and population of the country. But the current situation, where the direct administrative control of the government is largely limited to the capital city and environs, and in which the government relies on international support (“foreign” support to its opponents) to exercise that control, has precedents in other eras of Afghan history.
Topic:
Democratization, Development, and Government
Political Geography:
Afghanistan and Asia

2092. The Difficulties of Discerning What's Too Tight: Taylor Rules and Japanese Monetary Policy

Author:
Adam S. Posen and Kenneth N. Kuttner
Publication Date:
12-2003
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Observers have relied increasingly on simple reaction functions, such as the Taylor rule, to assess the conduct of monetary policy. Applying this approach to deflationary or near-zero inflation environments is problematic, however, and this paper examines two shortcomings of particular relevance to the Japanese case of the last decade. One is the unusually high degree of uncertainty associated with potential output in an environment of prolonged stagnation and deflation. Consequently, reaction function-based assessments of Japanese monetary policy are so sensitive to the chosen gauge of potential output as to be unreliable. The second shortcoming is the neglect of policy expectations, which become critically important as nominal interest rates approach zero. Using long-term bond yields, we identify five episodes since 1996 characterized by abrupt declines in Japanese inflation expectations. Policies undertaken by the Bank of Japan during this period did little to stabilize expectations, and the August 2000 interest rate increase appears to have intensified deflationary concerns.
Topic:
Climate Change, Economics, and International Trade and Finance
Political Geography:
Japan, Israel, East Asia, and Asia

2093. The Kashmiri Conflict: Historical and Prospective Intervention Analyses

Publication Date:
06-2003
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
In late March 2003, terrorists thought to be members of Pakistan-supported Islamic groups killed 24 Hindu villagers in Kashmir. This incident evoked memories of the suicide attack by Muslim terrorists on the Indian Parliament in New Delhi in December 2001. Events like these raise the potential threat of war between India and Pakistan. South Asia is thought by many observers to be the most dangerous place in the world, with both antagonists armed with nuclear weapons.
Topic:
Conflict Resolution, Security, and Terrorism
Political Geography:
Pakistan and Asia

2094. Stand-off with North Korea: War Scenarios and Consequences

Author:
Colin Robinson and Stephen H. Baker
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Center for Defense Information
Abstract:
North Korea's military threat and somewhat peculiar approaches to international relations have been a central difficulty in dealing with the isolated regime during the past decade. In the early 1990s, North Korea, formally known as the Democratic People's Republic of Korea (DPRK), was expected by many observers to collapse, just as communist regimes in Eastern Europe and the Soviet Union did.
Topic:
Security, Defense Policy, Arms Control and Proliferation, Nuclear Weapons, and Science and Technology
Political Geography:
Eastern Europe, Asia, North Korea, and Soviet Union

2095. The Bush Administration's Nuclear Strategy and Its Implications for China's Security

Author:
Tian Jingmei
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
Center for International Security and Cooperation (CISAC), Stanford University
Abstract:
Since the Bush administration took office, and especially since excerpts of the Nuclear Posture Review were released, there have appeared in America some heated arguments about the Bush administration's changes to the Clinton administration's nuclear strategy, what consequences these changes would produce, and what influences they would exert on international and regional security. Different people have different views. The purpose of this working paper is to find solutions to these key issues. The effects of the Bush administration's nuclear strategy on China's security are also discussed.
Topic:
Security, Nuclear Weapons, and Politics
Political Geography:
China, America, and Asia

2096. South Korea, a new model for the new economy?

Author:
Christian Milelli
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales (CERI)
Abstract:
The "new economy" in South Korea rhymes with the Internet. In 2003, the "land of morning calm" has actually become the most connected country in the world. The present study tackles this phenomenon from a number of angles. The Internet is not only considered as a physical network but a lever of transformation of the country's economic and social life. Although the role of the state has been decisive and remains focal, it is not enough to explain the extreme rapidity with which the new electronic medium spread, which is due to a broad range of causes. The Korean experience differs from former ones in that it extends well beyond the market sphere (ecommerce) to areas such as education, volunteer associations and even politics. The emergence of a national dimension constitutes another characteristic that at first seems paradoxical, since the Internet is so universal in scope. Yet observation of the evolution of Internet traffic on the national level confirms this trend. South Korea is far from an exceptional case in Asia, but the country has taken the lead over its neighbors, becoming a new "model." Beyond these singular features, the Korean experience in the use of the Internet again demonstrates that a global "information revolution" – in other words, a process that is quickly reshaping the material bases of an entire society – is underway.
Topic:
Development, Economics, and Emerging Markets
Political Geography:
Asia and South Korea

2097. CERI: Barter and Inter-business Transactions in Russia: Trade Normalization in View after the Ruble Crisis of 1998?

Author:
Caroline Dufy
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales (CERI)
Abstract:
Barter was a prominent issue in public debate during the 1990s in Russia: it prompted a more overall reflection on the nature of the Russian economy and the aim pursued by economic reforms. These major issues shaped a number of divisions: the government opposition portrayed barter as one of the pernicious effects of economic policies that gave priority to finance to the detriment of the national productive sphere. For others, it was to be interpreted as the legacy of the Soviet industrial sector and its lack of competitiveness.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Russia, Europe, and Asia

2098. CERI: Developing Border Cooperation between China and Russia

Author:
Sébastien Colin
Publication Date:
07-2003
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales (CERI)
Abstract:
Since the resumption of talks between China and Russia – still the Soviet Union when this occurred in the mid-1980s, relations between the two countries have been particularly dynamic. On the international level, the two countries in fact share the same viewpoint on a number of issues. These mutual concerns led to the signing of a strategic partnership in 1997, then a new treaty of friendship in 2001. The complementarity between the two countries in the energy and arms sectors also stimulates cooperation. However, this alliance is not without its limits. The United States, its primary target, can easily short-circuit it, as it did just after the September 11, 2001 attacks. In the field of cooperation, the intensity and structure of trade between the two countries are both inadequate. The rise in trade during the 1990s was very uneven and marked by a drop between 1994 and 1996. The main causes of this are situated at the local echelon along the Chinese-Russian border. After the dynamism characteristic of the 1988-1993 period, the opening of the border triggered new problems, such as illegal Chinese immigration in the little-inhabited border zones of Russia. Although this trend caused friction among the local Russian population, it was mainly the retrocession of certain Russian territories to China when the border was demarcated between 1993 and 1997 that radicalized the inhabitants, paralyzing border cooperation. The Russian and Chinese government played an active role in attempting to resolve most of these disputes, as the Tumen program illustrated. Since then, the various authorities in the two countries have tried to revitalize border cooperation, but a number of problems remain that are mainly economic in nature and vary depending on the border region.
Topic:
Development and International Cooperation
Political Geography:
Russia, United States, China, Europe, and Asia

2099. Survey of SSR Regional and Sub-Regional Networks

Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Global Facilitation Network for Security Sector Reform
Abstract:
The enclosed survey was conducted in order to map all regional and sub regional networks working in the field of Security Sector Reform (SSR) in Africa, Asia, Europe and Latin America and the Caribbean. The objective of mapping SSR networks in these regions is multi-fold. Firstly it is imperative that at a time when security has taken a truly global dimension and span, academics and practitioners alike are aware of the state of SSR in different regions. Certain similarities and patterns emerge during the analysis that offer lessons and directions for actors wishing to become involved in SSR in a particular region, or searching for guidance in applying best practices and lessons learned to particular situations. Secondly, exchange of experience and ideas is especially important in supporting South-South dialogue, but the value of cooperation cannot be overemphasized given the often-unclear context in which SSR activities take place. The mapping exercise serves as an entry-point for practitioners to identify existing networks and their areas of expertise. Opportunities for collaboration are made possible by identifying other organisations that are pursuing similar goals. Additionally, the map of SSR networks serves to identify possible gaps in scope of activity and highlights entry points for other organisations and networks to further the objectives of security sector management and reform. Lastly, this exercise will serve as a vehicle for the GFN-SSR to develop ways to strengthen its activities. One way in which the GFN-SSR is already adding value is through the development of its website, which, inter alia, offers a newsletter in four languages, i.e., English, French, Spanish and Portuguese. An activity to reinforce the access to information for those in areas of poor connectivity is already being developed through the conception of a CD-ROM containing all the existing website information for distribution on a timely basis to interested organisations.
Topic:
Security, Development, and International Organization
Political Geography:
Africa, America, Europe, Asia, South America, Latin America, Central America, and Caribbean

2100. Chechen Militia Threaten Increased Terrorism

Author:
Tamara Makarenko
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Centre for the Study of Terrorism and Political Violence, St. Andrews University, Scotland
Abstract:
Chechen resistance movements have reorganised to adjust to the post 11 September 2001 security environment, and appear to be adopting more lethal terrorist tactics. Tamara Makarenko reports.
Topic:
Security, Economics, and Terrorism
Political Geography:
Russia, Europe, Asia, and Moscow