China in the era of globalization: the emergence of the discourse on economic security

Abstract

This article looks at the Chinese debate on economic security during the period between 1997 and 2004. The contemporary concept of economic security (jingji anquan, 经济安全) was first raised in the Chinese academic literature in 1997, partly as a reaction to the Asian financial crisis and partly due to the increasing role China began to play in globalization, the effects of which it increasingly felt as its economy became more integrated with that of the world. This article examines the emergence of the discourse on economic security within Chinese academic circles, and identifies the development of this concept in China between 1997 and 2004 prior to the ascendancy of the ‘fourth-generation’ leadership.     

Introduction: economic security,globalization and governance

Abstract

This introductory article examines different approaches to conceptualizing economic security by drawing on the broader social science literature beyond realism/neorealism. Arguing that traditional conceptions of economic security that see economics as a source, or instrument of state power are insufficient, it draws on a growing literature that looks directly at the economic roots of conflicts, particularly those arising from the manner in which capitalist production is organized in distinct settings. While the paper identifies a range of ways in which scholars, policy practitioners and communities think about economic security depending on the particular circumstances different states and societies find themselves in, the paper, nonetheless, argues for a notion of economic security that also emphasizes issues of justice/fairness and distributive equity. Under conditions of globalization, it is important for us to think of the needs of those made insecure by prevailing systems of market governance but in ways that do not undermine the integrity of the market nor sanction protection for chronically uncompetitive firms. Drawing on insights from International Political Economy and Economic Sociology, the paper suggests one useful way of conceptualizing economic security under conditions of globalization: that of ensuring a low probability of damage to (a) the income and consumption streams that are deemed appropriate for individual well-being; (b) the income-generating potential of an economy; and (c) some minimal level of distributive equity. To this end, appropriately designed national, regional and global institutions can function as mechanisms of governance in the interests of economic security. The rest of the papers in this Special Issue provide empirical case studies drawn from East Asia on many of the points raised in this introduction.     

Conceptualizing economic security and governance: China confronts globalization

Abstract

With the expansion and deepening of globalization, as well as China's entry into the World Trade Organization, the nexus between economic growth and national security has gained prominence in China since the mid-1990s. How to ensure socio-economic security while maintaining its robust economic growth is now the most serious concern of the Chinese Communist Party (CCP) and the Chinese government. This paper addresses three questions: first, it explores why and how the transformation of economic growth and national security as two separate logics to a single domain evolved conceptually over the past two decades in China; second, what kinds of insecurities are generated by China's robust economic growth coupled with the expansion and deepening of globalization, and in which way and to what extent do they challenge China's government; third, what kinds of mechanisms or policy instruments have been adopted by China's government to address emerging economic insecurities while maintaining robust economic growth. The paper concludes that in the case of China, globalization has posed new challenges to economic security, but given that economic insecurity has its particular salience in individual countries, national institutional adjustment or adaptation becomes increasingly important for each country to govern in the interests of economic security while maintaining economic growth.     

Comprehensive security： Challenge for China in the age of globalization

Traditionally, security is understood as merely ＂national defense＂. During an on-going process of globalization, economic, political and cultural interdependence between individuals, nations and regions have changed the traditional ideas of national security to broader dimensions. The notion of incorporating economic security, environmental security and human security, with national security into a single whole, formulate the idea of comprehensive security （CS）. This paper tries to explore the origin, components, and significance of comprehensive security. In case studies, the rise of China in the twenty-first century is not an assumption any more, but a reality already. In this research, the author focuses on China, a country which not only experiences comprehensive development, but also faces comprehensive security challenges in the age of globalization. The author discusses China＇s security challenge from a comprehensive perspective and argues that understanding them and finding the solution will not only benefit China itself, but also benefit other nations as a whole in the age of globalization.     

Economic crisis,domestic politics and welfare state changes

Abstract

This essay re-examines the debate over the relationship between economic crises and welfare system changes and the role of domestic political factors which may refract the wave of influence from economic crisis. While acknowledging the inherent weakness of research design in a single case study, this study cautiously contends that an examination of the Korean case reveals that domestic factors continue to play an important role in welfare policy-making, even when decisive global economic forces are at work. Theoretically, this study argues not only for the continued theoretical relevance of the state-centered theory, but also in favor of a more integrated and configurational approach.     

Global corporate responsibility in domestic context: lateral decoupling and organizational responses to globalization

This paper examines how the domestic reception of global corporate responsibility is significantly shaped by institutionalized differences among state, business and civil society actors in the domestic context. In the global diffusion of ideas and practices, the decoupling of global policies and domestic practice is endemic, a process that this paper argues results from competing domestic interests and orientations. I examine this process of ‘lateral decoupling’ in a case study of the reception of the United Nations Global Compact among corporate responsibility practitioners in the city-state of Singapore. Differences in ceremonial, pragmatic and non-adversarial orientations towards global corporate responsibility generated significant uncertainty for businesses around how to apply corporate responsibility principles. In response, businesses constructed distinct narratives: large transnational and domestic companies emphasized values, community and tradition, while small businesses focused on the competitive advantages of corporate responsibility. The paper concludes by discussing the implications of domestic institutions for mediating global principles and local outcomes.     

Mechanisms Influencing the Development of Business Insurance Market in the World and in Poland

The work discusses changes in the business insurance market in the world and in Poland, as well as the impact of financial crisis on the development of this market. Special attention was paid to the mechanisms influencing insurance market operations. It concludes that the symptoms of the crisis of trust toward financial institutions are the most important consequence of the economic slowdown. This paper is the effect of the research conducted by the author for the research project No. 614538/2013. The paper uses the data published in the years 1996-2011 by the Polish Financial Supervision Authority and the Polish Chamber of Insurance, and the data of 2008-2011 published by the European Insurance and Reinsurance Federation Insurance Europe. The main purpose of the studies conducted by the author was to answer the question ＂what the effects of financial crisis are on the development of the business insurance market in the world and in Poland＂.     

Trade versus aid: donor generosity in an era of globalization

Why do foreign aid budgets vary across countries and over time? Existing research indicates that the same set of factors shapes commitments toward both domestic and international redistribution. While scholars have acknowledged international normative influences on aid allocations, research on levels of donor generosity has not examined how international trade influences aid budgets. This paper examines whether imports from developing countries have a ‘displacement effect’ on aid commitments. Employing a panel of nineteen OECD donor countries, we analyze aid budgets from 1980 to 2000. We find that increased imports from developing countries to donor countries are associated with aid reductions. These results persist after controlling for international and domestic variables identified in previous research, and under other estimation techniques and model specifications.     

Rescuing constructivism from the constructivists: a critical reading of constructivist interventions in Southeast Asian security

Abstract

Constructivist contributions to the study of Southeast Asian security raise much-needed awareness of identity concerns and introduce conceptual and methodological innovations into the study of identity. However, their shared rationalist proclivity to couple subjectivity with sovereignty revives the enduring problem of treating agency as ultimately pre-given. Contrary to their professed aim to restore to security studies an appreciation for history and practice, the contributions of many Southeast Asia constructivists are quite tellingly essentialist, particularly their concessions to state-centrism and ideational/normative determinism, both due partly to an uncritical emulation of rationalist constructivist perspectives in International Relations (IR) theory. In granting ontological priority to states, Southeast Asia constructivists cannot fully transcend reification because their denaturalizing of international anarchy or regions comes at the expense of a reified state. In reifying either the state or ideas/norms, their claim to privilege practice in their analyses of Southeast Asian security becomes suspect. But if process and practice are to be taken seriously, then Southeast Asia constructivists must avoid presuming a preordained subjectivity that invalidates their claim to study social construction.     

Acting one way and talking another: China's coercive economic diplomacy in East Asia and beyond

Over the last two decades, China has experienced one of the most dramatic and sustained periods of economic growth in world history. China's use of economic statecraft provides an important venue in which to examine the role of unacknowledged ‘coercive diplomacy’ within the context of China's ‘peaceful rise discourse.’ In contrast to Western countries, which have overtly used sanctions and other forms of economic coercion, China has publicly denied any such policies while at the same time quietly pursuing them. China's denial of using coercive economic statecraft has muted the reactions of neighboring publics and government, but it cannot entirely forestall them. Without seriously undermining China's ‘peaceful-rising’ image, a more explicit statement from Beijing regarding its coercive economic measure could provide deterrence and assurance to China's neighbors in resolving the disputes. This article first surveys existing literature on economic statecraft focusing on the coercive aspects of such strategies. Second, it presents an in-depth case study on how China uses economic leverages over its neighbors in East Asia: North Korea, Japan, and the Philippines. Finally, it highlights the limits of China's economic statecraft within the constraints of China's ‘peaceful rise’ discourse. It concludes with implications for Asian politics and beyond.     

A new dynamism in Sino-Japanese security relations: Japan's strategic use of foreign aid

Abstract

In November 2004 a Chinese nuclear submarine cruised into Japan's territorial waters near the Okinawa Islands. In response, the Japanese government dispatched several Japanese naval ships and planes to chase the Chinese submarine until it navigated into international waters. This event, which potentially could have become the first exchange of fire between Japan and China since the Second World War, illuminated increasingly problematic security relations between the two neighbouring countries in the twenty-first century. In fact, deterioration of Sino-Japanese security relations is not a recent phenomenon but has already been evident since the mid-1990s, when Japan imposed a series of economic sanctions on China. Between 1995 and 2000 Japan had suspended its foreign aid to China in protest against: China's nuclear weapons tests; China's large scale war game including the launch of missiles across the Taiwan Strait; and Chinese naval activities in disputed areas in the East China Sea. This article looks at Sino-Japanese security relations since the mid-1990s through three case studies of the aid sanctions imposed by Japan on China. It clarifies the domestic political and bureaucratic interests that motivated aid sanctions and determined the decision-making process leading to these sanctions. The article argues, that with certain politico-security interests, Japanese governments actively used foreign aid as a strategic instrument to counter provocative military actions by China in the East Asian region since the mid-1990s. Despite the limited influence that Japanese aid sanctions have actually had on Chinese military behaviour, Japan's strategic use of foreign aid has undeniably created a new dynamism in security relations between the two neighbouring great powers in Asia.     

Austerity and niche parties: The electoral consequences of fiscal reforms

Austerity policies — policies of sharp reductions of a government's budget deficint involving spending cuts and tax increases — are claimed to boost support for radical political parties. We argue, counter to popular claims, that austerity measures actually reduce support for radical and niche parties. Austerity policies force traditional left-right politics to the forefront of political debate with the traditional mainstream parties having a stronger ownership over those issues. We systematically explore the impact of austerity measures on the electoral fortunes of niche parties in 16 developed countries over a 35-year period, while controlling for a number of socio-economic variables. We find that austerity policies that rely on tax increases affect radical parties on the left and the right in different ways than fiscal adjustments based on spending cuts.     

Between realism and idealism in Japanese security policy: The case of the ASEAN regional forum

Abstract

While ASEAN played the leadership role for erecting the ASEAN Regional Forum (ARF), Japan generated positive impact on the historical trajectory leading to the birth of the ARF. This paper asks the following question: On what ideational foundation was Japan's support for the ARF based? Utilizing a conceptual framework based on the theoretical literature of multilateralism, the paper analyzes three major Japanese perspectives on the ARF in the inception years (1991–95) — Idealism, Realism, and Liberalism — while paying special attention to Liberalism, the perspective underlying Japan's actual policy. Liberalism, while leaning toward Realism, still incorporated some elements of Idealism. For Liberals, centering around the Ministry of Foreign Affairs, the ARF was a vehicle to foster a sense of trust, however fragile, on the basis of providing and sharing quality information about China, Japan, and the United States, without undermining the existing security arrangements including the US‐Japanese alliance.     

Originating lender localness and mortgage sustainability: an evaluation of delinquency and foreclosure in Indiana's mortgage revenue bond program

Originating lenders play a vital role in selecting and preparing borrowers for homeownership, directly and through partnerships with community entities. While previous research demonstrates the importance of originating lenders for mortgage access to low- and moderate-income borrowers, this analysis evaluates the influence of the originating lender, and in particular the localness of the lender, on mortgage sustainability (reduced delinquency and foreclosure). Employing data on more than 5,000 low- and moderate-income borrowers participating in Indiana's Mortgage Revenue Bond (MRB) program from 2004–2006, this analysis finds that the localness of the originating lender is significantly predictive of mortgage sustainability. After controlling for borrower, mortgage, and market characteristics, an increase in the localness of the lender is associated with a decrease in the probability of delinquency and foreclosure, particularly for higher risk (lower credit score) borrowers participating in the MRB program.     

Privatisation and regulation in an Asian transitional economy: the case of Mongolia

Mongolia's transition to a market economy has entailed rapid and extensive privatisation accompanied by, inter alia, stabilisation, liberalisation and de‐regulation. The primary objective of this strategy was to cement the new political and economic order. Little weight was given to the problems created by the privatisation programme and only limited consideration given to questions of regulation in the economic, social and environmental spheres. However, the failure of the economy to translate economic growth into poverty reduction and the acceleration of the privatisation programme, which includes the progressive transfer of land, and proposals to privatise health, educational and cultural assets, have made regulation a more pressing issue. New, powerful social classes and interest groups have emerged, which have contributed to regulatory failure and capture and have undermined public policy. We identify a range of issues relating to privatisation and regulation and discuss the degree to which they are being addressed by the post‐1990 political class. Although there exist a number of regulatory agencies, there is a lack of political commitment, and only piecemeal implementation and enforcement. The scarcity of experienced and technically competent staff capable of establishing and operating effective regulatory agencies and ensuring compliance is also a major problem. Copyright © 2007 John Wiley & Sons, Ltd.     

Risk and Financial Armageddon in Ireland: The Politics of the Galway Tent

This article examines Ireland's financial crisis. Thus far explanation has focused on individual or collective administrative failure: the office(r) of financial regulation singularly failed to scrutinise the banks sufficiently: it was a matter of poor risk management. While this article would agree that the (mis)management of risk was important to how the crisis unfolded, I argue that an explanation of why the crisis emerged demands an altogether different focus. Put simply, after financial regulatory reform, a reconfiguration of risk in politics took place as the locus of decision‐making about financial risk shifted from the realm of the political/legal (Cabinet/Central Bank/Department of Finance) to the economic/legal (retail banks, shareholders/consumers). It was a critical development, one that mirrored events taking place in the UK, upon which Ireland drew experience, for now assessments about risk undertaken by the banks demanded that intervention could be justified only on an ascertainable risk, not a theoretical uncertainty (or spurious fear). The evidentiary bar for intervention was therefore raised, removing the precautionary instinct implicit in the prudential governance of Central Banks.     

Religion,globalization and commodification in online world news slideshows: the dis/connection of images and texts

Lately, possibilities of producing and spreading news pictures have increased explosively through online media. Concurrently, religion has become increasingly salient in politics and news. Both processes are connected to globalization. This study encompasses globalization, religion and online images and aims to convey how online world news slideshows represent religion, and more particularly how linguistic and visual parts of picture paragraphs are interrelated, as well as related to representations of different religions. Methodologically multimodal analysis and discourse analysis are combined, focusing on composition of images and (dis-)connection of images and texts. Theories on globalization and possibilities and particularities of online news (pictures) and slideshows, frame the analysis. Tendencies to templates for different religions are found. Many religions appear as aesthetic commodities in images, whereas Islam in texts “sells” images of violence/destruction. Image–text relations are thus crucial both in the creation of meaning and of commodities in online news image culture. Two main image–text types are identified: “Religion in text, (potential) violence/destruction/despair in picture” (Islam) and “Spirituality/worshipping/aestheticism” (other religions). The world news slideshows have crucial roles as containers for these polarized image–text types, where they are related to and defined by each other in the genre's (cl)aim to cover the whole world.     

A Concurrent Analysis of Three Institutions that Transform Health Technology‐Based Ventures: Economic Policy,Capital Investment,and Market Approval

Drawing on institutional theory, this article articulates qualitative insights from a program of research on Canadian health technology‐based ventures to examine the rules that characterize economic policy, capital investment, and regulatory approval as well as the way these institutions enable and constrain the development of ventures at an early stage. Our findings clarify how economic policy integrates these ventures into the entrepreneurial domain, how capital investment configures them for economic value extraction, and how regulatory approval fully releases their market value. These findings help to revisit current policy modernization initiatives by calling attention to the convergence among the three institutions. Rather than operating solely as a source of constraints, these institutions provide a highly integrated market‐oriented space for health technology‐based entrepreneurial activities to unfold.     

Semi-legality and belonging in the Obama era: the Deferred Action for Childhood Arrivals memorandum as an instrument of governance

While the effects of the Deferred Actions for Childhood Arrivals (DACA) executive order have been analysed by a number of scholars, little attention has been paid to the ways in which this program has functioned as a technology of governance. Drawing from content analysis of political discourse regarding the 2012 DACA executive memorandum, this paper offers new directions for thinking about one of the key legacies of the Obama administration. It contextualizes DACA within a global proliferation of variegated legal statuses and argues that DACA discourses allowed state actors to re-invigorate notions of US exceptionalism and humanitarianism, while deeming ‘illegality’ an objective fact existing outside of the state’s control. In doing so, notwithstanding the DACA memorandum’s limitations in alleviating conditions of ‘illegality’ even for eligible subjects, dominant discourses surrounding the program functioned to legitimise state practices and normalise the bounds of national belonging and ‘good citizenship’ in the face of contradicting global realities.