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5261. One Third of the World's Growth and Inequality

Author:
Danny Quah
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper studies growth and inequality in China and India—two economies that account for a third of the world's population. By modelling growth and inequality as components in a joint stochastic process, the paper calibrates the impact each has on different welfare indicators and on the personal income distribution across the joint population of the two countries. For personal income inequalities in a China-India universe, the forces assuming first-order importance are macroeconomic: Growing average incomes dominate all else. The relation between aggregate economic growth and within-country in- equality is insignificant for inequality dynamics.
Topic:
Development and Economics
Political Geography:
China, South Asia, India, and Asia

5262. From the Grabbing Hand to the Helping Hand: A Rent Seeking Model of China's Township-Village Enterprises

Author:
Jiahua Che
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
I present a study of ownership of firms under government rent seeking. Using its control of regulated inputs, a government agency extracts rents from a manager who undertakes an investment. Such a government rent seeking activity leads to a typical hold-up problem. Government ownership is shown to serve as a second best commitment mechanism through which the government agency will restrain itself from the rent seeking activity and even offer the manager support and favor such as tax breaks and subsidies. This mechanism works at a cost as government ownership compromises ex post managerial incentives and creates distortion in resource allocation. Nevertheless, government ownership may Pareto dominate private ownership under certain conditions. These conditions correspond to a host of stylized empirical observations concerning local government-owned firms (township-village enterprises) during China's transition to a market economy.
Topic:
Development, Emerging Markets, and Government
Political Geography:
China and Asia

5263. Household Income Dynamics in Rural China

Author:
Martin Ravallion and Jyotsna Jalan
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
It is well known in theory that certain forms of non-linear dynamics in household incomes can yield poverty traps and distribution-dependent growth. The potential implications for policy are dramatic: effective social protection from transient poverty will be an investment with lasting benefits, and pro-poor redistribution will promote aggregate economic growth. We test for non-linearity in the dynamics of household expenditures and incomes using panel data for rural south-west China. While we find evidence of non-linearity, there is no sign of a dynamic poverty trap. Existing private and social arrangements in this setting appear to protect vulnerable households from the risk of destitution. However, the concavity we find in the recursion diagram does imply that the speed of recovery from an income shock is lower for the poor, and that current inequality reduces growth in mean incomes.
Topic:
Development and Economics
Political Geography:
China and Asia

5264. Political Office, Kinship, and Household Wealth in Rural China

Author:
Andrew G. Walder and Litao Zhao
Publication Date:
12-2002
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
For more than two decades after the demise of Maoist collectivism, a resurgent market economy has deeply transformed the social structure of rural China. By the mid-1980s, peasant households had already returned to historical marketing patterns of agricultural produce and other sidelines and services. By the turn of the century, almost 140 million individuals, or 30 percent of the rural labor force, earned regular incomes from wage labor outside agriculture. Twenty million rural households had registered individual family enterprises, and two million of them had already grown into substantial private firms. A massive rural industrial sector grew up under public ownership in the 1980s, employing more than 80 million at its height. It was then extensively privatized in the 1990s, and is now less than half its former size. While these developments have been widely noted in studies of rural industrialization and income inequality, it is still far from clear how they have altered the structure and wealth of village political and economic elites.
Topic:
Communism, Economics, and Politics
Political Geography:
China and Asia

5265. Inaugural Oksenberg Lecture: The United States and China: A President's Perspective. An address by Jimmy Carter

Author:
Jimmy Carter
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
The Oksenberg Lectures honor the legacy of Professor Michel Oksenberg (1938–2001), Senior Fellow at the Asia/Pacific Research Center, professor of political science, and a foremost authority on China.
Topic:
Development
Political Geography:
China, Israel, East Asia, and Asia

5266. Privatization and Elite Mobility: Rural China, 1979-1996

Author:
Andrew G. Walder
Publication Date:
07-2002
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
The ideal types that motivate research on transitional economies have led to a neglect of the varied mechanisms that generate social change. One example is the implicit treatment of privatization as a single process whose initial impact will become more pronounced through time. Privatization in fact occurs via distinct mechanisms that have different consequences across types of assets and through time, as shown in an analysis of career trajectories over two decades in rural China. During the first decade, when privatization proceeded via the rapid expansion of household enterprise, ordinary individuals with nonagricultural work experience were the most likely to become private entrepreneurs. Village officials, their relatives, and public enterprise managers did not enter the private sector at rates higher than others. However, during the second decade the privatization of public enterprises began to transfer collective assets to individual ownership. During this period, public enterprise managers and the relatives of cadres emerged as the most likely to become private entrepreneurs. Private entrepreneurs, however, have yet to move into cadre posts, and cadres have yet to move into private entrepreneurship, at rates higher than others. Administrative elites have therefore proven resilient in the face of private-sector expansion, and the benefits of privatization have gradually shifted in their favor.
Topic:
Communism and Economics
Political Geography:
China and Asia

5267. Challenges of Peri-urbanization in the Lower Yangtze region: The Case of the Hanzhou-Ningbo Corridor

Author:
Douglas Webster
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
This discussion paper is based on analysis of peri-urbanization dynamics in the Hangzhou- Ningbo Corridor of the Lower Yangtze Region of China. The case-study area is of particular interest, both because of the scale of the phenomenon in the area and the fact that the corridor typifies the long-running and dynamic peri-urbanization process occurring in the Lower Yangtze Region as a whole, arguably the world's largest extended urban region (EUR). Analysis focuses on adaptation, successful and otherwise, to the severe stresses, demographic, social, and environmental, accompanying peri-urbanization. Policy implications are then drawn; anticipated future stresses in the case-study area, and by implication the larger extended urban region, are used to trigger recommendations.
Topic:
Development
Political Geography:
China

5268. The United States and Russia in Central Asia: Uzbekistan, Tajikistan, Afghanistan, Pakistan, and Iran

Author:
Fiona Hill
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Before 1991, the states of Central Asia were marginal backwaters, republics of the Soviet Union that played no major role in the Cold War relationship between the USSR and the United States, or in the Soviet Union's relationship with the principal regional powers of Turkey, Iran, and China. But, in the 1990s, the dissolution of the Soviet Union coincided with the re-discovery of the energy resources of the Caspian Sea, attracting a range of international oil companies including American majors to the region. Eventually, the Caspian Basin became a point of tension in U.S.-Russian relations. In addition, Central Asia emerged as a zone of conflict. Violent clashes erupted between ethnic groups in the region's Ferghana Valley. Civil war in Tajikistan, in 1992-1997, became entangled with war in Afghanistan. Faltering political and economic reforms, and mounting social problems provided a fertile ground for the germination of radical groups, the infiltration of foreign Islamic networks, and the spawning of militant organizations like the Islamic Movement of Uzbekistan (IMU). The IMU first sought to overthrow the government of President Islam Karimov in Uzbekistan, later espoused greater ambitions for the creation of an Islamic caliphate (state) across Central Asia, and eventually joined forces with the Taliban in Afghanistan. With the events of September 11, 2001 and their roots in the terrorist groups operating in Afghanistan, Central Asia came to the forefront of U.S. attention.
Topic:
Cold War and Religion
Political Geography:
Pakistan, Afghanistan, Russia, United States, China, Europe, Iran, Central Asia, Turkey, Asia, Tajikistan, Uzbekistan, Taliban, and Soviet Union

5269. Central Asia: Border Disputes and Conflict Potential

Publication Date:
04-2002
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
For the past decade Russia, China, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan and Kazakhstan have all been involved in high stakes negotiations to define their respective borders. Strong-arm politics, economic pressures, shadowy backroom deals, nationalist sentiments, public dissatisfaction and an environment of mutual mistrust have marked this process. The resolution of border issues peacefully and transparently would have a positive impact on regional security, economic cooperation, ethnic relations and efforts to combat drug trafficking and religious extremism. But progress has been slow, and no immediate breakthrough can be seen in an all too often antagonistic process that is defining the new map of Central Asia.
Topic:
Conflict Resolution, Ethnic Conflict, and Politics
Political Geography:
Russia, China, Central Asia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Turkmenistan

5270. Staying the Course: Limitations in U.S. -China Relations

Author:
Gen. Jack N. Merritt
Publication Date:
09-2002
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The People's Republic of China (PRC). As of mid-2002, the PRC's policy is to emphasize the positive, stressing its desire for an improved – and hopefully more stable – relationship with the United States. This policy reflects China's recognition of the need for stability at a time of many challenges. In the next few years, the PRC leadership will be seeking to extend economic reform and build prosperity beyond the limited areas in big cities and the eastern provinces that have made great strides in recent years. China will need to adjust the economy to the market-opening demands that World Trade Organization (WTO) membership will bring and it will face the problem of moving successfully over the next decade through a transition in leadership without compromising the continued power of the Party leadership group.
Topic:
International Relations and Foreign Policy
Political Geography:
United States, China, and Asia

5271. People's Liberation Army Air Force (PLAAF): Shifting Airpower Balance and Challenges to India's Security

Author:
Ramesh V. Phadke
Publication Date:
02-2002
Content Type:
Working Paper
Institution:
Center for International Security and Cooperation (CISAC), Stanford University
Abstract:
China is India's largest and most important neighbor, and despite recent efforts at improving relations between the two countries, the over half-century-old border dispute remains unresolved. China is an expansionist power trying to enhance the security of its peripheral areas. It is important to note that in the recent past, China has resolved its border disputes with almost all its neighbors except India. Relations between the two countries have no doubt improved since 1988, when then-Indian prime minister, the late Rajiv Gandhi, visited Beijing, and since the conclusion of 1993 and 1996 agreements on maintenance of peace and tranquility on the borders, but the progress so far has been slow. China continues to claim some 90,000 square kilometers of Indian territory in the northeast while it illegally occupies some 23,000 square kilometers of Aksai Chin in the north of India.
Topic:
Security, Defense Policy, and Religion
Political Geography:
China, South Asia, and India

5272. The Global Nuclear Balance: A Quantitative and Arms Control Analysis

Author:
Anthony H. Cordesman
Publication Date:
02-2002
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Russia retains a significant strategic nuclear force capability, despite the decline in overall force size since the dissolution of the Soviet Union, and despite apparent defense budgetary shortfalls and system aging. Russia also inherited sizeable biological and chemical warfare establishments from the FSU, and some components of these programs remain largely intact. Russian entities have exported various nuclear and ballistic missile technologies to states of proliferation concern, and Russia also remains a source for offensive biological and chemical warfare technologies and expertise.
Topic:
Nuclear Weapons and Treaties and Agreements
Political Geography:
Russia, United States, China, Europe, Middle East, and Asia

5273. The Asian Balance of Weapons of Mass Destruction A Quantitative and Arms Control Analysis

Author:
Anthony H. Cordesman
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Beijing continues to emerge as an increasingly active player in the region. Therefore, it is focused on becoming a world - class industrialized power through a countrywide modernization effort, which includes economic, technological, and military components of national power. Beijing already wields significant international influence by virtue of its permanent membership on the United Nations (UN) Security Council and its economic influence. China's public support for nonproliferation regimes is motivated by several factors, including a desire to enhance its image as a responsible world power and support for nonproliferation objectives.
Topic:
Nuclear Weapons, Treaties and Agreements, and United Nations
Political Geography:
Russia, China, Europe, South Asia, Beijing, and Asia

5274. US and Russian Nuclear Forces and Arms Control After the US Nuclear Posture Review

Author:
Anthony H. Cordesman
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
The reporting of START accountable warheads has led to serious confusion between START accountable warheads and actual warheads.
Topic:
Nuclear Weapons and Treaties and Agreements
Political Geography:
Russia, United States, China, Europe, South Asia, Middle East, and Asia

5275. Russia's Southern Regions: Threats and Opportunities

Author:
Robert Orttung
Publication Date:
06-2002
Content Type:
Policy Brief
Institution:
EastWest Institute
Abstract:
Instability in Russia's southern regions poses a threat to the continuation of the country's overall political and economic reform, and to regional stability in Central Eurasia. These regions, which already possess Russia's most fragile local economics, face a variety of problems emanating from the weak and failing states to their immediate south. Most visibly, there is the threat of terrorism, an increasing flow of illegal narcotics from producers in Afghanistan, an influx of contraband goods that wipe out Russian jobs, and illegal immigration. With few resources and extensive corruption among key officials, Russia's southern regions are poorly equipped to deal with these problems. Developing mutually beneficial trade links between Russia's southern regions and its neighbors in Central Asia, China, and Mongolia can mitigate instability and economic stagnation in this region, help to rebuild regional economies, generate income, and better enable governments to provide security and basic human services to their people. The West can support these developments as well as help combat organized crime, target corruption, and improve border security.
Topic:
Security, Economics, International Cooperation, and Terrorism
Political Geography:
Afghanistan, Russia, China, Europe, Mongolia, and Asia

5276. China's Rise and the U.S. Army: Leaning Forward

Author:
Russell D. Howard and Albert Willner
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Department of Social Sciences at West Point, United States Military Academy
Abstract:
The United States led war on terrorism has already had a major impact on developing state relationships in Asia. The coalition of convenience that emerged in the aftermath of the September 2001 attacks on the World Trade Center and the Pentagon has engendered a change in strategic thinking, perceptions, and influence. A significant shift in any of these three areas could have dramatic implications. For the United States, what is required is not only a reassessment of the new realities but also a strategy to take advantage of new opportunities and cope with potential threats. Perhaps nowhere is this need more apparent, or possible responses more fraught with risk, than in determining the impact of such strategic shifts on the U.S.-China relationship, particularly in the security realm.
Topic:
Security and Defense Policy
Political Geography:
United States, China, and Asia

5277. Democratic America in Northeast Asia: U.S. Strategy, Theater Missile Defense, and Allied Defense Relationships

Author:
Sonya L. Finley
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Department of Social Sciences at West Point, United States Military Academy
Abstract:
With the proliferation of ballistic and cruise missiles and weapons of mass destruction (WMD), American political leaders have embarked on a long-term plan for deploying Theater Missile Defense (TMD) as a means to protect the United States, US forces abroad, and allies. Effective on 13 June 2002, the United States is no longer party to the 1972 ABM Treaty and missile defense is a priority with "prominence in policy, funding, and organization." TMD essentially is a family of military weapon systems whose purpose is to intercept hostile missiles that have been launched, whether intentionally or unintentionally. However, the question remains whether Theater Missile Defense is, and will be, an integrated and effective tool in achieving overall US national security goals in Northeast Asia, namely enhancing regional security and reducing the threat of weapons of mass destruction.
Topic:
Security and Defense Policy
Political Geography:
United States, China, America, and Asia

5278. Managing Asia Pacific's Energy Dependence on the Middle East: Is There a Role for Central Asia?

Author:
Kang Wu and Fereidun Fesharaki
Publication Date:
06-2002
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
The Middle East is Asia Pacific's largest energy supplier, satisfying a demand for oil that must keep pace with the region's continued economic growth. This dependence on the Middle East has caused Asia Pacific to join the United States and other Western nations in the hunt for alternative suppliers. Central Asia, located between the Middle East and Asia Pacific and already an oil and gas exporter, is an attractive possibility. With energy production projected to rise rapidly over the next decade, Central Asia is poised to become a major player in the world energy market. But the land-locked region's options for transporting oil and gas to Asia Pacific markets are limited and problematic. Passage via pipeline east through China presents construction challenges; south through Iran, or through India and Pakistan via Afghanistan, is fraught with political difficulties. Not until geopolitics become more favorable to the south-bound options, or technologies make the China route possible, will Asia Pacific be able to tap the energy resources of Central Asia.
Topic:
Security and International Trade and Finance
Political Geography:
Pakistan, Afghanistan, United States, China, Iran, Middle East, and Asia

5279. Coalition Dynamics in the War Against Terrorism

Author:
Ian O. Lesser
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
“Coalition” may be an inappropriate term to describe the constellation of state and non state actors cooperating in the global struggle against terrorism. The term coalition implies a certain agreement on strategy and objectives, short of a formal alliance. In fact, to the extent that NATO plays an active role in counter-terrorism, the current pattern of cooperation does have elements of an alliance. But the vast bulk of international cooperation on counter-terrorism, before and after September 11th, has involved the routine, sometimes intensive, coordination of intelligence, police and judicial activity. Contributions to large-scale military operations in Afghanistan, or elsewhere – although important to current objectives – are exceptional. Most counter-terrorism cooperation has been, and will almost certainly continue to be, of a more prosaic nature. The sheer range of activity – from the most intensive cooperation among European allies, to the ad hoc and often arms length relations with states such as Libya, Syria and Iran, not to mention Russia and China, makes it difficult to speak of a single grand coalition against terrorism.. The reality is a highly diverse pattern of cooperation; some limited, some extensive; some sustained, and some on a case-by-case basis.
Topic:
Security, NATO, International Cooperation, and International Organization
Political Geography:
Afghanistan, Russia, China, Europe, Iran, Libya, and Syria

5280. The Phalcon Sale to China: The Lessons for Israel

Author:
Jonathan Adelman
Publication Date:
03-2002
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
The Israeli decision, under intense American pressure, to cancel the sale of the Phalcon Airborne Early Warning System to China during the Camp David summit in July 2000 threatens to be a major foreign policy debacle for Israel.
Topic:
Security, Foreign Policy, and Religion
Political Geography:
China, America, Middle East, Israel, and Arab Countries