Foreign Aid
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Don Keyser
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North Korean leader Kim Jong-il’s apparent stroke in mid-August raises the possibility of near-term political succession in the Democratic People’s Republic of Korea (DPRK, or North Korea). This has prompted U.S. and Republic of Korea (ROK, or South Korea) planners—concerned with command and control of North Korea’s fissile material under conditions of regime disarray, internecine conflict, or collapse—to examine afresh the alliance’s assumptions, contingency plans, and political strategies.

The Korean Peninsula occupies a central place in the Chinese national security calculus. Chinese policy above all aims to avert military conflict on the Peninsula and regime collapse in the North. Conflict and collapse scenarios could embroil China in unwanted military action, imperil its long-term economic development program, jeopardize its crucial ties with the United States and South Korea, open the floodgates to North Korean refugees, and alter the Northeast Asian strategic landscape to China’s disadvantage.

For these and other reasons, China has emphasized the need for a peaceful, negotiated resolution of the problem posed by North Korea’s nuclear ambitions. It has encouraged North Korea to emulate, to the extent feasible, China’s own post-1978 economic reforms. At the same time, China has deepened political and commercial ties with South Korea, and sustained the North Korean regime through generous economic and military assistance.

China’s core interests—plus its special ties with North Korea’s military, party, security, and economic elite—have persuaded many outside observers that Beijing possesses not only unique insights into the Pyongyang regime’s internal dynamics but also potential leverage. Further, many assume that China, having both the need and ability to influence North Korea’s political succession, will do precisely that—shape, or if necessary impose, a North Korean succession that accords with China’s policy interests.
China has consistently denied having superior knowledge and usable leverage, and has adamantly rebuffed speculation regarding its national ambitions and potential actions.

Such disclaimers notwithstanding, some in the ROK and the United States postulate that national and alliance interests might best be served by “coordinating” with China on North Korean regime change/collapse scenarios. A few even argue that the alliance should “subcontract” this issue to China, thereby tacitly acquiescing in its intervention to ensure a peaceful, stable transition.

Despite the high stakes, crucial U.S.-ROK contingency planning seemingly has been approached in an environment that is rich in conjecture and hope, and poor in hard intelligence and agreed assessments.
Yet it is possible—indeed imperative—to do better than this. With respect to one small part of the complex whole—China’s interests, potential leverage, and likely actions—a starting point for rigorous
analysis might include the following issues and questions:

Knowledge : Does China in fact enjoy superior knowledge of internal DPRK decision-making? What are the sources of and limits upon such knowledge? How have the North Koreans approachedspecial bilateral ties with the Chinese in the realms of party-to-party affairs and military cooperation?
Are there reasons to believe that China contributed to North Korea’s nuclear program? If not, are there reasons to believe that North Korea shared any knowledge whatsoever of its activities with China? Has China sought to cultivate North Korean officials and, if so, when, and how successfully?  How has North Korea reacted to any such Chinese activities?

Leverage: How much leverage does China enjoy over North Korean political, military, and economic decisions? What are the sources of such leverage? What are the constraints? How should one assess North Korea’s likely response to Chinese pressure? What options does North Korea enjoy in deflecting such pressure?

A Proactive Approach by China to North Korean Political Succession : What posture is China likely to adopt toward political succession in North Korea? What are its policy options? What assets does it hold? How does the issue of North Korean succession—including the possibility of regime chaos or collapse—fit into China’s broad strategic posture? What external considerations (especially those involving the ROK, the United States, Japan, and Russia) must China take into account?

ROK and U.S. Policy Considerations Regarding China’s Potential Involvement in a North Korean • Political Succession: What essential posture should the ROK and the United States adopt? On the one hand, should they enlist China’s cooperation in “managing” political succession in North Korea, or endeavor to minimize that involvement, instead addressing North Korean succession scenarios as primarily a task for the U.S.-ROK alliance? On the other hand, should they accept (and even tacitly encourage) China’s superior ability to effect a stable succession that preserves peace and stability? Should they broaden the scope of the current six-party talks to include formal discussion among “the five” (excepting North Korea)? Or should some other approach be adopted?

On one level, U.S. and ROK planners must urgently address these issues in order to have confidence that the two allies can deal smoothly with any North Korean political succession scenario. On a deeper level, a rigorous bilateral analysis of this type can serve to strengthen the U.S.-ROK alliance itself by fully illuminating a broader set of underlying national attitudes, interests, and priorities.

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Former Thomas Rohlen Center Fellow at the Freeman Spogli Institute for International Studies
Former Assistant Professor of Political Science
phillip_lipscy_2018.jpg PhD

Phillip Y. Lipscy was the Thomas Rohlen Center Fellow at the Freeman Spogli Institute for International Studies and Assistant Professor of Political Science at Stanford University until August 2019. His fields of research include international and comparative political economy, international security, and the politics of East Asia, particularly Japan.

Lipscy’s book from Cambridge University Press, Renegotiating the World Order: Institutional Change in International Relations, examines how countries seek greater international influence by reforming or creating international organizations. His research addresses a wide range of substantive topics such as international cooperation, the politics of energy, the politics of financial crises, the use of secrecy in international policy making, and the effect of domestic politics on trade. He has also published extensively on Japanese politics and foreign policy.

Lipscy obtained his PhD in political science at Harvard University. He received his MA in international policy studies and BA in economics and political science at Stanford University. Lipscy has been affiliated with the Reischauer Institute of Japanese Studies and Weatherhead Center for International Affairs at Harvard University, the Institute of Social Science at the University of Tokyo, the Institute for Global and International Studies at George Washington University, the RAND Corporation, and the Institute for International Policy Studies.

For additional information such as C.V., publications, and working papers, please visit Phillip Lipscy's homepage.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Vietnam has become the newest "Asian tiger." The US played a leading role in negotiating Vietnam's January 2007 entry into the World Trade Organization and the 2001 US-Vietnam Bilateral Trade Agreement. Requirements in these treaties have accelerated the pace of economic and legal policy reforms in Vietnam. Combined with other initiatives, the reforms are giving rise to the domestic institutions, economic policies, governing procedures, and rule of law needed to grow a market economy, facilitate the fledgling private sector, and rationalize the state sector. US foreign assistance has been intensively involved in this effort. The effects of these changes have been felt in faster growth, increased trade, more foreign and domestic investment, and continued poverty alleviation. Within this context, the seminar can address an especially difficult and complex question: How might these reforms, and the changes they have foster, affect the political development of the country?

Steve Parker recently returned from nearly six years in Vietnam, where he served as the project manager for the STAR-Vietnam Project--the first major USAID-funded technical assistance program in post-war Vietnam. In that context he worked with the prime minister's office in Hanoi to help more than forty government agencies make the changes needed for Vietnam to implement the US-Vietnam Bilateral Trade Agreement (BTA) and accede to the World Trade Organization. His latest writing is a "Report on the 5-Year Impact of the BTA on Vietnam's Trade, Investment and Economic Structure." Previously he worked as an economic specialist for the US government and the Asia Foundation, and was posted to Vietnam, Indonesia, and Japan with USAID, the Asian Development Bank, and the Harvard Institute for International Development.

Co-sponsored with the Stanford Center for International Development.

Daniel and Nancy Okimoto Conference Room

Steve Parker Lead Economics and Trade Advisor Speaker Development Alternatives, Inc., Bethesda, MD
Seminars
Authors
Donald K. Emmerson
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When the 9.0-magnitude earthquake and resulting tsunami struck Asia and East Africa on December 26, Indonesia took a devastating hit. More than 100,000 people died and another 500,000 were left homeless, with some experts predicting that the final death toll may rise above 250,000. Aceh province on the northern tip of the island of Sumatra, where the Free Aceh Movement rebel forces have been fighting against the Indonesian Defense Forces for almost 30 years, was at the center of the destruction. Donald Emmerson, a senior fellow at the Stanford Institute for International Studies and director of its Southeast Asia Forum, is an Indonesia specialist who has been traveling to Aceh since the late 1960s. He's finishing a book entitled What is Indonesia? Identity, Calamity, Democracy.

STANFORD: What do we need to know about Aceh province?

That it's a wonderful place, that the people have a tradition of hospitality, and that they share with you what they have. It's very sad that it has been subject to so much violence and conflict for so many years.

What's been happening in recent times?

Since May 2003, Aceh has been virtually off-limits to foreigners. The [military] reasoning is that it's for security reasons, but there's always been a suspicion that it's also because bad things -- horrible things, killings and so forth -- are done in the dark, and they don't want people to watch. Certainly the human rights community has had great difficulty getting access to Aceh.

What could happen as a result of some 1,000 representatives of aid organizations being on the ground there?

The opening of Aceh to foreign and domestic humanitarian aid workers has the potential to introduce elements that can serve as a check on human rights abuses. Obviously, the time for mourning is not over. But if we can insert a silver lining in this very dark cloud, it might be that the devastation of the tsunami opens up an opportunity to rebuild much of Aceh, and that it will require cooperation among all Acehnese. I am cautiously optimistic about the opening that this catastrophe represents for trying to lessen the man-made pain of the Acehnese people.

What might a rebuilt Aceh look like?

The plan is to take villages that were destroyed, and maybe even the town of Meulaboh on the west coast, which was the worst hit, and move them inland a certain number of kilometers. Then, construct mangrove swamps as barriers against a repetition of the tsunami, and also to protect the soil from erosion and generate the possibility of brackish-water fishing for the livelihoods of the people. This is a massive effort that is going to last for years and years. Authorities have estimated that the rebuilding costs in Aceh could run to $2.2 billion.

Fishing villages would no longer exist on the coast?

I spent nine months in fishing villages in East Java, and I found that the relationship of the populations on the coast to the ocean is not necessarily what one would expect. They are not happy bathers on the beach, fishing is an extremely dangerous operation, and the ocean is considered a wild place.

Many fishing communities are overfishing the source. I wrote a long report for the Ministry of Agriculture's fisheries office, arguing that what Indonesia ought to do was take the money the government was spending to supply nylon fishing nets and higher horsepower outboard motors, and spend it on wives who were involved in craft commodities. The women have commercial skills, and getting microcredit programs for women to set up shops and expand is the future.

How will religion figure in that future?

Aceh is known in Indonesia as "the front porch of Mecca." The Acehnese are almost entirely Muslim. While there's a tendency among Americans to presume that [a Muslim nation] must be fanatic, Indonesia remains an overwhelmingly moderate society. There is a poignant photo, which hasn't been circulated in the U.S. press, of a sign at a depot for humanitarian relief supplies. It reads, "If you try to steal this material, you will be responsible to Allah."

The following is supplemental material that did not appear in the print edition of STANFORD.

What was the overall impact of the tsunami in Indonesia?

I think it's important to keep in mind that each of the affected countries was affected in a somewhat different way. In Sri Lanka, an estimated 70 percent of the coastline of the entire island was affected, so the economic consequences there are going to be more severe than the damage that was done to Indonesia. If you go down the west coast of Sumatra, you will see damage, but the main damage was overwhelmingly concentrated in a single province, Aceh, which represents less than 2 percent of the total population of Indonesia. Aceh got a double-barrel assault -- from the earthquake and the tsunami. The death toll was horrid, with a huge loss of life, but it was concentrated on the coasts.

How does Aceh's history set it apart from the rest of Indonesia?

The first record we have of an Islamic sultanate in what is now Indonesia is a stone carving dated 1297, on the north coast of Aceh. Aceh was closest to the Middle East, and there were Muslim traders who would go short distances, pause, sell, buy and reload. Long-distance Arab-Malay trade finally got to Indonesia, and the logical landfall was Ache.

Then there were tremendous and unequal casualties in the war against the Dutch, who recruited Ambonese troops to fight a colonial war in Aceh in the 19th century. There's a photograph of Dutch troops standing on the dead bodies of Acehese rebels. The Acehnese war lasted a long time, and it was one of the last parts of the archipelago to be fully brought into the colonial orbit.

Aceh has been for some time under a state of military emergency, and an estimated 13,000 have died as a result of the [rebel] war since 1976. But the tsunami has changed all that. Looking at it from a political science point of view, if we don't begin trying to analyze the situation, I'm not sure we can make it better down the road.

What needs to happen?

In a time of crisis what you need is efficiency and effectiveness, and you need somebody to stand up and say, "This is the way things are going to be." But the governor of Aceh is, by all accounts, exceedingly corrupt. He is in Jakarta now, in detention, awaiting trial on corruption charges. So you don't even have an active, sitting provincial government leader to take charge.

The number of members of the provincial administration who died in the tsunami is quite high, and the central government has had to send up 300 replacements from Jakarta. The administration of Aceh has essentially been completely taken over by the central government. This is potentially unhelpful, depending on how sensitive and effective the central government is and how corrupt the atmosphere is within which masses of foreign aid are moving.

The somewhat optimistic scenario is that now Aceh is even more dependent on the central government than it was before, with the need to rebuild substantial portions of its coastline. So a leader of the [freedom] movement [might] look down the road and say, "It's unrealistic for us at this point, with this incredible body blow to our economy, to expect that we can now somehow take over Aceh. We are more dependent than we were before on the central government."

And, conversely, in Jakarta there might be the thinking that since Aceh now so obviously needs support within the republic, "We are in a stronger position, and therefore we can afford to be generous, and to extend concessions, short of independence, that will take advantage of this." The bottom line is that two enemies who were at each other's throats now face a third enemy -- nature.

Are there other voices that should be heard in Aceh?

One of the difficulties of having negotiations between the Acehnese Freedom Movement and the central government is that it tends to exclude other Acehnese views, which is one reason why negotiations that took place previously were not successful. Acehnese society is pretty diverse, and the Acehnese Freedom Movement does not represent all Acehnese, not to mention the Javanese and Indonesians who have migrated into the province, who are university students and [members of] religious communities.

The conflict has lasted for 30 years in its present form, and it has created such enmities that there is no particular mood to compromise. The government has no incentive to reach out, and the Acehnese Freedom Movement remains intransigent. In the long run, those who disagree with a so-called freedom movement are in the shadows and their views tend not to be reported. My hope is that as these voices are allowed to take part in determining the future of Aceh and its political leadership, the polarization will decrease and there will emerge a kind of more moderate center, in favor of autonomy and full rights.

In the 1990s, the United States cut military assistance programs to Indonesia. Is the relationship between the two countries improving?

SBY -- Susilo Bambang Yudhoyono -- is a former military man, but he's identified as relatively clean, and associated with a somewhat more reform-minded element within the military. More than any previous president of Indonesia, he has had exposure to the United States. Certainly this is an opportunity for an improved relationship between Indonesia and the U.S.

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