Indonesia and Southeast Asian territorial peace processes

This article offers an Indonesian perspective to the analysis of peace processes. The Indonesian experiences from territorial peace processes in the South China Sea, Mindanao and Aceh can offer ideas and inspiration. But if there is an overarching conclusion that may be derived from the experience of Indonesia, it is that there are no hard and fast rules. The approaches will have to depend on the general situation, the disposition and perceptions of the parties in conflict, the external environment of that conflict, and the capabilities and credibility of the entity carrying out the preventive diplomacy initiative. Ambassador Sastrohandoyo Wiryono, Indonesian Governor in the ASEF Board and formerly Indonesia’s Chief Negotiator in Aceh Peace Talks (2002–2003), and mediator of conflicts in Mindanao.

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European presence in Indonesia

This paper describes the European Union (EU) presence in Indonesia. It firstly discusses the reorientation of EU relations with Indonesia. It might be argued that the reorientation has been supported dominantly by economic and political motivations as consequences of the EU’s internal dynamics (such as single market; CFSP), the global dynamics and the rise of inter-regionalism. Secondly, current economic relationships show that the EU presence has been very significant for Indonesian economy, in term of international trade, investments, foreign exchange rate, debt, development assistance and business activities.

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‘Diplomatic Divergence: the Japanese and British Responses to Indonesia’s Confrontation of Malaysia 1963–1966’

While Indonesia’s policy of Confrontation towards Malaysia brought it into direct military conflict with Britain, this same event prompted Japan to pursue its first explicit postwar diplomatic initiative. Due to different strategic goals for the region, Britain and Japan’s approaches to Indonesian bellicosity were markedly different. Notably, while Britain took a hard-line stance with President Sukarno, Japan in contrast took a lenient approach eschewing economic and diplomatic isolation of Indonesia. With a latent warming in Anglo–Japanese ties beginning in this decade, this paper demonstrates that despite their antithetical approaches to this Southeast Asian crisis bilateral relations were not adversely affected.

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From intergovernmental to global: UNESCO’s response to globalization

Whilst there is an ever-growing literature on the economic and political aspects of ‘globalization,’ at present there are few studies analyzing how intergovernmental organizations have reacted to this phenomenon. This article aims to fill this gap by analyzing the response to globalization of UNESCO, one of the least studied organizations of the UN constellation. Addressing the global orientation of some of the current programs, this article shows how a recent re-evaluation of scientific humanism—the main philosophical framework contributing to the creation of UNESCO—has influenced both UNESCO’s self-understanding and its understanding of globalization. Scientific humanism is a philosophical utopia that couples the advance of scientific knowledge with the diffusion of a common philosophical framework and promotes a universal system of education in order to establish a global community. Based on the philosophical appeal of a culture of peace based on science, humanism and human rights, UNESCO’s representation of globalization represents an intriguing example of how our global future may be conceived and, to some extent, realized.

Quo vadis Japanese ODA? New developments in Japanese aid policies

Japan positioned itself in a special situation among the aid donor countries. This paper presents the trends in Japanese Official Development Aid policies in the new Millennium, provides an overview and discussion of the characteristics of Japanese ODA, and examines the different views and critiques that have arisen regarding Japan’s development aid policies. The paper’s goal is to highlight and interpret the latest developments and reforms of Japan’s ODA administration and strategies, its strengths and weaknesses, and to understand how ODA is becoming a more strategic, a stronger political, diplomatic and foreign policy tool in the hands of the Japanese government.

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Working together: local and global imperatives for women in Mongolia

Mongolia is a country in transition. Domestic violence has just begun to reach the public and political agenda, due in large part to the activism and lobbying of women’s groups within Mongolia. State attention to domestic violence accords with Mongolia’s declared democratic and human rights agendas which are driven by political and economic shifts within society, the influence of trans-national feminism and the activities of two of the most influential non-governmental organisations (NGOs), each of which focus on violence against women. Local, feminist campaigning intersects with the global imperatives of treaty obligations and has resulted in the introduction of new legislation on domestic violence in 2004. Since then it has become apparent that there is a gap between the rhetoric of the law the reality of implementation. Women’s groups are battling this lack of political will to effectively implement changes.

Building a strong nation, how does China perform in science and technology

A common perception is that China has relied on the expansion of labour-intensive industries and flooded the world market with cheap but low to medium level technology products. Although it has become the third largest exporting nation, China has failed to create a large number of big businesses that can compete with the world’s leading multinational companies (Nolan (2004)). The Chinese government has long been aware of the weakness of its development strategy and has been trying to improve its own technological capacity through investments in basic research, innovations and the application of new technologies, utility models and designs. China’s strategy on science and technology can be best described by the so-called ‘walking with two legs’ principle. The first leg is based on building up domestic research and innovative capacity. This is through investments in research institutes, universities and LMEs. China’s second leg has been to build up its technology capacity through its open policy and attracting FDI and technology. China has made significant advances in the following areas regarding science and technology.

Operational oceanography in Indonesia

In 2005 Indonesian and European institutes joined to start the first step for the implementation of an Ocean Operational System in the Indonesian archipelago. The system will support the decision making process for the sustainable use of marine resources, providing useful information and added value products as well as a service for an improved management of the sea with high business impact to targeted groups as public authorities and commercial operators (coastal managers, fishermen, shipping companies). In this paper the System is shortly described with its potential benefits and economic and social impacts.

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New trends in the cross-Strait relations between China and Taiwan

Although the political relation between the People’s Republic of China and the Republic of China on Taiwan has been stagnating in recent years, the bilateral trade and exchange between the two sides are booming rather swiftly. Beijing has changed its policy from using force against Taiwan even without independence in the year 2000 to only using force against independence in 2005. It indicates the maintenance of the status quo, the tolerance of the ROC legal structure, and peaceful coexistence only if Taiwan did not cross the Rubicon. While the opposition tries to reconcile with Beijing, the government keeps on its policy of confrontation. But still, Beijing has been trying hard to collaborate with the USA on the Taiwan issue, while offering increasing amount of friendly measures toward the Taiwanese people. Due to tremendous domestic and international pressure to the government in Taipei, its rapprochement to the Mainland is more and more likely to take place in the near future.We can set the Cornell visit of the former President Lee Teng-hui in summer 1995 as the start of the current stagnation of the cross-Strait relations because it triggered the PLA’s military manoeuvre in the Taiwan Strait. Since then, except for a short period of rapprochement in autumn 1998, the bilateral relations have never been improved. See: Tang 2002; ; ; .

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The implementation of IMF programs: A conceptual framework

IMF supported programs have conventionally been assessed by examining their effects on intermediate variables and final outcomes. More recently greater attention has been paid to their implementation, on the assumption that in order to work programs need to be implemented. Empirical studies have begun to include political economy variables in an attempt to explain implementation. They have used the concept of ‘ownership’ to provide a theoretical foundation. This paper provides an alternative and simple conceptual framework based on the marginal benefits and costs of implementation. It goes on to discuss policies that might be expected to improve implementation based on this framework.

Going nuclear in Northeast Asia: a global view

Northeast Asia (NEA) is on the international security agenda for a lot of reasons. The historical legacy, territorial disputes, the region’s growing importance as an economic actor and a trading partner accompanied by increasing defence expenditures and acquisition of high tech weaponry and the political isolation of a “rogue” North Korea have all contributed to fear that NEA could open a Pandora’s box of a nuclear arms race. In this paper, I analyse recent strategic trends in Asia and try to evaluate the main motivations and objectives of a country like North Korea behind Weapons of Mass Destruction proliferation and the impact of this “nuclear diplomacy” on the evolution of defence policy of major military power like Japan.

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After the banquet: Japan’s power elite revisited

The demise of Japan’s iron triangle, consisting of the LDP’s parliamentary party, the central ministries and the keiretsu conglomerates ruling Japan conjointly, has been diagnosed since some time now (Thayer, 1993; Blechinger, 2001). After more than one decade of an unprecedented crisis in Japan’s political economy which severely tested the competences and the legitimacy of Japan’s ruling classes it is about time to resume and to take stock of changes and continuities in her power structures. In a nutshell it appears that (1) the political system after serious shifts and jolts during the 1990s has reverted to the old one-and-a-half party system—with the conservative democrats (DPJ) displacing the Socialists of old as the main opposition party-and with the LDP remaining firmly in the lead role, exercising increased zoku control over the ministries and continuing hereditary pork barrel oriented constituency politics as its power base. The role of the party’s factions appears as somewhat diminished. (2) the central bureaucracy suffered a gradual erosion of functions and legitimacy, affecting notably the lead ministries MOF, MITI (METI) and MFA. This was however compensated in part by the large discretionary spending volumes disbursed by the merged Infrastructure Ministry (MLIT), the supervisory functions of the new Financial Services Agency (FSA), and the strengthened competences of the Prime Minister’s Office (PMO). (3) the prolonged economic crisis and asset deflation affecting city banks as keiretsu lead managers consequent to a series of bank mergers has seen some keiretsu disintegrate or amalgamate. Yet it appears that other keiretsu, like Sumitomo (having taken over Mitsui) and Mitsubishi remain consolidated, while some of the previously less integrated banking keiretsu continue in a fairly oversized and loosely merged fashion. Thus the keiretsu system’s micro-economic importance may have eroded somewhat compared to their heydays in the 1980s. Still keiretsu affiliated companies continue to dominate organized zaikai business interests, like the merged Keidanren–Nikkeiren.Note that the article only reflects the personal views of the author, and none of his institution.

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Myanmar in EU–ASEAN relations

The aim of this paper is to discuss and examine the regional projects of institutionalism in Europe and Southeast Asia. The main focus is on Myanmar, a regional ‘outcast’ whose membership in the Association of Southeast Asian Nations in 1997 has helped it to gain international legitimacy and be able to stand relatively strong against Western sanctions. The military regime is riding on the wave of ASEAN norms and a communitarian culture. The question remains as to how long the country can continue to do so. A rather skeptical view is emphasized on the ‘ASEAN Way’ in dealing with the military regime, and for the overall political dialogue with the European Union. Many ambitious objectives such as sovereign equality in institutionalism are widely questioned, and the European Union has gone against many of its treaties in order to keep its relationship with Southeast Asia. The paper puts prominence on the political and security relationship rather than on the economic aspect, which has been far more successful. The role of values and the human rights debate will be highlighted and described as the greatest obstacle for any future political cooperation.

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Democracy in China: a distant dream

Since the late 1970s, China has made enormous efforts to liberalize its markets and integrate itself into the world economy. Yet these developments have not been accompanied by any meaningful degree of liberalization of the political system. This paper attempts to account for the lack of democratization in China. In particular, it reviews the process of gradual economic liberalization initiated under Deng Xiao Ping and discusses the issue of corruption. Economic liberalization, it is shown, has provided new opportunities for the political elite to translate power into wealth, thereby making it more reluctant than ever to relax its grip on power. In a system of “autocratic capitalism,” the ruling elite both in business and government lack the incentives to introduce political liberalization. At this stage, dreams that the country’s economic liberalization will someday lead to democracy remain distant.

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IMF staff: Missing link in fund reform proposals

Current IMF reform proposals are preoccupied with changing governance structures by reallocating Executive Board chairs and quota shares and with expanding and altering the Fund’s surveillance role, but not enough attention has been paid to whether organizational change at the staff level is also needed. IMF staff have intellectual dominance and discretion in the design of loan conditionality, writing of surveillance reports, and provision of technical and policy advice. There are also clear internal and external criticisms of how the Fund’s organizational culture—that is perceived to be hierarchical, technical/economistic, bureaucratic, and homogeneous/conforming—negatively affects the Fund’s policy output and relationship with borrowing members. This article suggests altering ’how things are done’ at the IMF by making changes to recruitment and organizational structure.

The new impetus towards economic integration between Europe and Asia

With the end of the Cold War and the collapse of the Soviet Union the large economic space of the Eurasian super-continent has also become part of the world-wide globalization process. How this process of integration of Eurasia is proceeding in key areas of cross-continental linkages is of great importance for the future of the region and for the future of the World as a whole. One of the key questions will be whether the regional and global institutions can provide adequate support for this integration process.This paper was presented as a keynote speech at The Fourteenth OSCE Economic Forum in Vienna on 23 January 2006. It draws on a longer paper by (Linn and Tiomkin in press).The authors are, respectively, Executive Director of the Wolfensohn Initiative at The Brookings Institution, Washington, DC, USA, and MBA and MPA/ID candidate at Harvard University. Johannes Linn served as Vice President for Europe and Central Asia at the World Bank from 1996 to 2003.

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Regional energy cooperation in North East Asia: Lessons from the European Experience

The three major oil importing countries of Northeast Asia—China, Japan and South Korea—are concerned about future security of energy supplies to fuel their dynamic economic activity. Currently all three countries are highly dependent on imports of oil from the Middle East, a region with inherent political instability. Russia’s rich reserves of oil and gas in Eastern Siberia and the Russian Far East offer an obvious alternative. Given the geographical proximity of Russia and its desire to increase its energy exports to Northeast Asia, there is huge potential for cooperation. So far there has been no real intra-regional cooperation and no common external policy towards Russia. Despite obvious differences between Europe and North East Asia, the European model of energy cooperation, developed over the past 50 years, offers some useful lessons.

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The coordinate plane of global governance

The ‘coordinate plane of global governance’ developed in this paper describes the trade-off between static gains and dynamic losses associated with international policy harmonization. A simple model illustrates how potential gains result from producing positive international spill-overs, whereas potential losses come from restricted systems competition between national policy regimes. The solution to this model allows identifying the cut-off level between policies suitable for global harmonization and policies which should better not be centralized. An application of the concept to selected policy fields illustrates its relevance for decision-making on global governance.

Should it be curtains for some of the IMF’s lending windows?

Increasing attention is being paid to IMF governance and operations, but not to how IMF programs are differentiated under the array of available lending windows. This paper examines empirically the economic and political circumstances associated with the use of IMF facilities. It therefore extends existing research into the determinants of IMF arrangements by investigating the extent to which different influences are at work in the case of different facilities. Focusing initially on extended arrangements as compared to stand-bys, the results indicate that although initially the facilities were used in different economic circumstances, since the mid 1980s these differences have largely disappeared. Instead the differences between user countries have become more political than economic. There are, however, some differences between concessionary and non-concessionary facilities beyond the income levels of countries using them. The policy implications for the range and design of the Fund’s lending windows are discussed.

Knowledge hubs along the Straits of Malacca

World history has known areas of relative isolation and areas of high intensity of cultural interaction. The Mediterranean Sea, the Silk Road or the Straits of Malacca can be cited as such crucial contact zones. Within these areas, centres sprung up that served as interfaces between cultures and societies. These “hubs” as we would like to call them, emerged at various points throughout the contact zones, rose to prominence and submerged into oblivion due to a variety of natural calamities or political fortunes. This paper assesses the rise and fall of trade and knowledge hubs along the Straits of Malacca from before colonialisation until today. Historical hubs of maritime trade and religiosity today increasingly establish themselves as educational and knowledge hubs. This leads us to speak of the Straits of Malacca as a chain of—not pearls—but knowledge hubs with Singapore as the knowledge hub in the region shining the brightest of all, as the data suggest. We aim to conceptually grasp this development by suggesting a model or at least a hypothesis about the rise and movement of knowledge hubs in general.

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