China's ‘charm offensive’ in the Pacific and Australia's regional order

Abstract

In recent years, a perception has emerged among many policymakers and commentators that the deepening of the People's Republic of China engagement in the Pacific Islands Region, predominantly through its expanding foreign aid programme, threatens to undermine the existing regional order, in which Australia is dominant. In this article, it is argued that China's apparent ‘charm offensive’ in the Pacific is mainly driven by commercial, not political, imperatives and is far more fragmented and incoherent than is often assumed. Hence, its (real) political effects hinge, not on any Chinese strategic designs for regional domination, or even a more limited resource security agenda, but on the intent and capacity of Pacific governments to harness deepening aid, investment and trade relations with China towards their own foreign and domestic policy objectives, which include limiting Australian interference in the internal governance processes of Pacific states. This argument is demonstrated by the case of Fiji after the December 2006 military coup.     

Japan's policy on steel trade disputes with the United States: a comparative analysis

Abstract

This article examines interactions among the United States, Japan and the European Union over steel trade disputes with particular interest in Japan's reactions to the disputes. For this objective, this paper establishes an analytical framework that takes into account bilateral, international, and domestic factors in formulating a state's external policy and relations. It was found that the special relationship with the United States still impinged on Japan's reactions to steel trade disputes, but its influence has gradually declined. Moreover, growing familiarity with World Trade Organization (WTO) rules and practices and collaboration with other countries enabled Tokyo to expand its policy options to handle steel trade conflicts with Washington. Significantly, Japan formally adopted seemingly bold measures to cope with the US steel safeguard action, but the measures’ substantial influence on the US government was limited compared with those adopted by the European Union. Weak policy coordination among ministries prevented Japan from formulating strategic and effective measures in managing steel trade disputes with the United States.     

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.     

Special Issue on electronic media,markets and civil society in East and Southeast Asia: Introduction

Abstract

The government of Hong Kong has been trying to reform the territory's health care financing system since the early 1990s and is finally on the verge of succeeding. The objective of this paper is to assess the reform efforts and explain the causes of repeated failures and eventual success. It will argue that the government's fortunes changed only after it abandoned the core reform goal and decided to pursue peripheral objectives. It will explain the abandonment with reference to the peculiar political system in Hong Kong that makes it difficult for the government to adopt substantial policy reforms in the face of even moderate opposition. The reason for the government's policy incapacity is the existence of liberalism in a non-democratic setting, which allows the government to neither suppress opposition nor mobilize popular support. This has been illustratively evident in its health care reforms when its proposals to improve the system's fiscal sustainability invariably met an early death because they imposed costs on employers, the population or both. The current proposal has fared better not only because it addresses a simpler peripheral problem but also because it offends almost no one and pleases many among the powerful.     

Environmental protection and US–Asia relations: a policy of disconnect

Despite the post-September 11 focus on regional security and the continued emphasis on regional economic cooperation, environmental degradation should not be overlooked as an important issue for US policy in and relationship with the Asia-Pacific. It is an important issue in its own right, presenting the countries of the region with ecological, economic and social (human security) challenges. There are both ethical and instrumental impulses for the United States, as a rich indus­trialised country and as a disproportionate consumer of resources and polluter of global waste, to provide environmental assistance to the Asia-Pacific. Despite global demands that the ‘new’ new world (environmental) order should be based on solidarity and collective responsibility, neither US environmental policy towards the region nor the regional consequences of its international environmental policy more generally meet this test. The US is fundamentally self-regarding rather than other-regarding in the various dimensions of its environmental relationship with the region. The consequences for both the region and for the US may be substantial. Continued environmental degradation in the region has the potential to undermine other US policy goals, in terms of its reputation, it economic objectives and even its more orthodox geopolitical security objectives.     

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.     

Myths about tigers: Indonesian development policy debates

This paper assesses some of the major policy debates currently occurring in Indonesia. It is argued that, while Indonesia's economic performance over the past 30 years has been very good, some of these debates are centred on misleading or irrelevant 'myths' which may have adverse policy consequences. There is some evidence that the reform momentum has slowed in the past few years, while other pressing policy challenges have not been addressed with the vigour evident in the 1980s. Debate over these myths may therefore be contributing to a somewhat less coherent policy regime, just as the country is wrestling with post-Soeharto succession scenarios.     

The fraying of the socio‐economic fabric of Hong Kong

Abstract

Since the 1980s, Hong Kong has undergone momentous socio‐economic changes, which in turn have greatly affected public attitudes toward society and the economy. Interpersonal trust and the sense of community have weakened. Hong Kong as a society is increasingly seen as unfair in the sense that it is not perceived as a land of opportunities for the hardworking. The capitalist rules of the game are increasingly considered by the people to be unacceptable. Public demands for more governmental intervention in the economy, particularly in the area of income redistribution, are increasingly raised. Nascent feelings of class antagonism are palpable as economic inequalities are getting worse. As social conflicts of various kinds proliferate, public anxieties about Hong Kong's fraying socio‐economic fabric have come to the fore. People expect the government and the legal institutions to strengthen social order. At the same time, however, public trust of all social, economic and social authorities is declining. Accordingly, as social discontent and anxieties accumulate, the socio‐economic system of Hong Kong will face serious challenge in the years ahead.     

Comment on Dennis P. Culhane et al.’s “public shelter admission rates in Philadelphia and New York City: The implications of turnover for sheltered population counts”

The article here extended reflects on the excessively narrow debate over the government-sponsored enterprises (GSEs)' cost-benefit transfer balance which had been raging for a quarter-century before the 2007–2009 financial crisis. That crisis has cast a new light on the actual costs of GSE operations and exposed the unsustainability of some of their benefits for homeownership. After injecting afew new findings into the traditional debate, this comment adds some of what has transpired in recent years and what may be inferred from it so far. Doing so brings additional analysis to bear on the article's conclusion that “the GSEs might not be justified” and “Maybe it is time for them to exit” although most politicians in the past have been disinclined to show them the door.     

Comment on Andrew S. Carron and R. Dan Brumbaugh,Jr.’s “The viability of the thrift industry”

Abstract

Krueckeberg summarizes Hernando de Soto's premise on property rights and offers a critical interpretation of de Soto's work, arguing that it emphasizes efficiency over equity and, ultimately, that enhanced property rights alone are unlikely to significantly improve housing stability or access to capital for households living in informal arrangements. I clarify several of Krueckeberg's discussions of de Soto's ideas from the perspective of the Institute for Liberty and Democracy (ILD).

The ILD perspective, informed by de Soto's writings, contrasts with Krueckeberg's in the following five areas: access to utilities and services in squatter settlements, the criminal nature of these communities, the ability of the poor to fulfill the responsibilities of formal ownership, their ability to borrow against formally owned property, and the impact of formalizing property on rental housing. I close by considering how the ILD perspective on formalization might be brought to bear in the United States.