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A hot springs summit between Japanese Prime Minister Shinzo Abe and Russian President Vladimir Putin next week hopes to solve the 70-year-old dispute over an isolated string of islands that Russian and Japanese nationalists both claim as their own, according to Daniel Sneider, associate director for research at the Shorenstein Asia-Pacific Research Center.

Read the commentary piece in Foreign Policy here.

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President Barack Obama’s trip to four Asian nations – Japan, South Korea, Malaysia and the Philippines – set out to address an ambitious agenda, including trade negotiations, territorial disputes, and the threat of North Korea. Scholars at the Shorenstein Asia-Pacific Research Center in the Freeman Spogli Institute provided commentary to local and international media about the state tour.

Ambassador Michael Armacost, a distinguished fellow at Shorenstein APARC, evaluated the goals of the trip, saying it aimed to deliver a message of reassurance to East Asia that the U.S. rebalance is intact. Armacost highlighted the efforts to negotiate a 12-nation trade pact, the Trans-Pacific Partnership (TPP) as the centerpiece of the Obama trip to Asia. He was interviewed by Weekly Toyo Keizi, a Japanese political economy magazine. An English version of the Q&A is available on Dispatch Japan.

Many foreign policy issues shadowed the outset of President Obama’s Asia trip, the crisis in Ukraine and Syria, among others. Daniel Sneider, associate director of research at Shorenstein APARC, said in Slate that Asian nations notice where the United States focuses its time. Obama’s commitment to the region may have come across as distracted given the breadth of his current foreign policy agenda.

Sneider also spoke with LinkAsia on Obama’s stop in Tokyo. President Obama met with Japanese Prime Minister Shinzo Abe; the two leaders addressed issues surrounding territorial disputes and attempted to reach an agreement on outside market access issues in the TPP negotiations.

Donald Emmerson, director of Shorenstein APARC’s Southeast Asia Forum, offered an assessment of America’s ‘pivot to Asia’ and on the significance of the Malaysia and Philippines visits. He said the trip most notably reinforced America’s efforts to upgrade security commitments and promote freer trade negotiation in that region. The Q&A was carried by the Stanford News Service.

Emmerson spoke with McClatchyDC on two occasions about the Philippines leg of the tour. He commented on Obama’s statement reaffirming the United States’ security commitment to Japan, which recognized Japan’s administrative control over the Senkaku Islands. Emmerson suggested the greater context of claims in the South China Sea must be considered, including Manila’s. He also said maintenance of the security alliance is a positive step, but trade is a an essential part of the the pivot's sustainablility.

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Clifton Parker
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Donald K. Emmerson, director of Shorenstein APARC's Southeast Asia Program and FSI senior fellow emeritus, offers insight on U.S. President Barack Obama's Asian tour. He says the trip most notably reinforces America's 'rebalance' efforts to upgrade security commitments and promote freer trade negotiation in that region.

When President Barack Obama this week began a high-profile visit to Asia, it called into question how effective the "Asian pivot" in America's foreign policy has been. A few years ago, Obama announced that a rebalancing of U.S. interests toward Asia would be a central tenet of his legacy. Now he is visiting Japan, South Korea, Malaysia and the Philippines to reassert the message that America is truly focused on Asia – despite finding itself repeatedly pulled away by crises in Ukraine and the Middle East, and political battles in Washington, D.C.

Stanford political scientist Donald K. Emmerson, an expert on Asia, China-Southeast Asia relations, sovereignty disputes and the American "rebalance" toward Asia, sat down with the Stanford News Service to discuss Obama's trip. Emmerson is a senior fellow emeritus at the Walter H. Shorenstein Asia-Pacific Research Center in the Freeman Spogli Institute for International Studies.

President Obama started his Asian pivot a few years ago. Have problems in Ukraine, Syria, Iran and at home detracted from this new approach?

The pivot as practiced continues unabated. The pivot as perceived has suffered from its displacement on various attention spans by superseding events and concerns, both foreign and domestic. President Obama's current trip to Asia is itself a reflection of these distractions. Originally planned for October, it was postponed by extreme political discord in Washington. But the chief elements of the pivot remain in place and in progress. They are most notably the upgrading of American security commitments and the effort to negotiate freer trade.

Why does this rebalancing in U.S. foreign policy make sense – or not?

The pivot certainly serves U.S. interests. Americans cannot afford to deny themselves, or be denied by others, the opportunities for trade and investment that Asia's most dynamic economies will continue to generate. The U.S. also needs to work with China and its neighbors to help ensure that China's rise serves the wider security interests of Americans, Chinese, Asians and the world, however dissonant the day-to-day advocacy of those interests may be. Ironically, by obliterating Obama's proposed reset of U.S.-Russia relations, Vladimir Putin has become an unintentional friend of the rebalance toward Asia. His aggression in Crimea and eastern Ukraine has made all the more urgent the need for Washington to pursue mutually beneficial relations with Beijing and the rest of Asia that could moderate China's willingness and ability to force its ownfaits accomplis in the East and South China Seas.

Do Chinese leaders view Obama's Asian pivot as a de facto containment approach to a rising China?

China's leaders do question U.S. intentions. But one ought not ignore the dozens and dozens of venues and ways in which the two countries' governments continue to cooperate on multiple fronts. In domestic terms it is politically convenient for Chinese hardliners to disparage American motives. As with the pivot itself, however, perception and practice are not the same thing.

Are Asian countries more rattled than ever by China's behavior in places like the South and East China Seas?

Concerned, yes; rattled, no. There are six or seven different claimants to contested land features and/or sea space in the South China Sea, not to mention the territorial tensions that also bedevil interstate relations in Northeast Asia. East Asian leaders are not lined up in a united front against Beijing. They are themselves divided. The more assertive China becomes, the more pushback it can expect. But most of the states in Southeast Asia do not want to ally with the U.S. against China, or with China against the U.S.

The U.S. and the Philippines are poised to sign a treaty that will expand America's military presence in the island country. What's the significance of the treaty?

Articles 4 and 5 of the treaty commit Washington and Manila to "act to meet the common dangers" implied by "an armed attack in the Pacific Area" on the "metropolitan territory" of either party, or on the "island territories under its jurisdiction," or on "its armed forces, public vessels or aircraft in the Pacific," and to do so "in accordance with its constitutional processes." But these provisions are hardly self-implementing; they require interpretation. Even if China were to forcibly evict the Philippine marines who now occupy Second Thomas Shoal in the South China Sea, the treaty would not automatically trigger an American military response. Applied to that scenario, the treaty would not instantly entrap the U.S. in a war with China. But the treaty would require some action or statement on the part of Washington. In Manila, Obama will try to reassure his Philippine host in this regard without enraging its Chinese neighbor.

Obama will be the first U.S. president in five decades to visit Malaysia. What does that visit mean for that country?

Of the four countries that Obama is visiting, it is in Malaysia that the pivot's third face after security and economy – namely democracy – will be most visible. Obama will be careful not to appear to enter into the domestic political turbulence Malaysia is experiencing, but his visits with civil society actors and university students in Kuala Lumpur will send the nonpartisan message that America remains committed to democratic values for itself and for Asians as well.

Clifton Parker is a writer for the Stanford News Service.

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Adam Gorlick
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The world’s leading economic policymakers are “on the right track” to ensure a global financial upturn, the chief of the International Monetary Fund told a Stanford audience on Tuesday.

But she warned the recovery will be derailed without the creation of more jobs, better education systems and a way to shrink the gap between rich and poor. And she cautioned against the potential pitfalls of untested exchanges and digital currencies such as Bitcoin.

“We are on the right track, but we need to ask – the right track to where? And the right track to what growth?” said Christine Lagarde, the IMF’s managing director. “Will it be solid, sustainable, and balanced – or will it be fragile, erratic, and unbalanced? To answer this question, we need to look at the patterns of economic activity in the years ahead, and especially the role of technology and innovation in driving us forward.”

Lagarde’s visit to Stanford was co-sponsored by the Freeman Spogli Institute for International Studies and the Stanford Institute for Economic Policy Research. In addition to delivering public remarks at FSI’s Bechtel Conference Center, Lagarde met privately with faculty and students during the day.

Just returning from the G-20 summit in Sydney, Lagarde said she is optimistic that the world’s economic leaders are committed to taking the steps that will guard against another large-scale financial collapse. She said the G-20 members agreed to complete a set of financial reforms by the end of this year, a move that will make the “financial sector safer and less likely to cause crisis.”

She said the member countries and their central banks have also agreed to better cooperate and be more transparent in their policymaking.

But she’s worried that unless more sustainable jobs are created, economic disparities will increase. And that, she said, will “harm the pace and sustainability of growth over the long term.”

As technology has helped create a more interconnected world, it is playing an increasing role in the economic landscape. Machines have made our lives easier. Artificial intelligence has led to cars that can drive themselves, robots that can do things in place of humans and smartphones that are more powerful than the first supercomputers.

But so far, there’s been no measure of how new technology has increased productivity.

“We certainly need to keep an eye on this,” she said. “One of the biggest worries is how this technological innovation affects jobs. Put simply: will machines leave workers behind?”

She said technology creates “huge rewards for the extraordinary visionaries at the top, and huge anxieties for workers at the bottom.”

Lagarde said it is up to educators to better prepare the next generation of workers.

“Educational systems are not keeping pace with changing technology and the ever-evolving world of work,” she said. “We need to change what people learn, how people learn, when people learn, and even why people learn. We must go beyond the traditional model of students sitting in classrooms, following instructions and memorizing material. Computers can do that.”

Instead, humans must “outclass computers” in cognitive, interpersonal and sophisticated coding skills, she said.

“Think of creative jobs, caring jobs, jobs that entail great craftsmanship – imagination,” she said. “And given the rate and pace of change, we will need the ability to constantly adapt and change through lifelong learning.”

She called on institutions such as Stanford to play a key role in the process.

“Stanford’s model of education was innovative from the very first day—co-educational, non-denominational, and always practical, focusing on the formation of cultured and useful citizens,” she said. “Stanford was ahead of its time back then. I know that it will continue to be ahead of its time as we venture into the exciting period ahead.”

But that exciting period carries with it uncertainty and risk.

Asked about the role that emerging digital currencies such as Bitcoin could have on the evolving economy, Lagarde was skeptical, calling it a “shaky and wobbly” system.

The currency’s trading website went offline this week, spooking investors and calling into question Bitcoin’s future.

“It’s a glamorous, sexy attractive new system,” she said. “But a monetary system is a public good. It has to be supervised and sufficiently regulated so it is accountable. At this point in time, I think Bitcoin is outside that perimeter of both supervision and regulation.”

Lagarde is the 11th managing director of the IMF, and the first woman to lead the 188-country organization. Since she took over the organization in 2011, she has played a role in the world’s most pressing financial matters, working on solutions to a sluggish global economy and the debt crises in Europe.

The IMF gives both policy advice and financing to countries in difficult economic situations. It also helps developing countries reduce poverty and become more economically stable. 

The organization is now poised to assist Ukraine, which is at risk of running out of money to pay its bills in the midst of a political crisis. The country is struggling to cobble together a temporary government in the wake of President Viktor Yanukovych leaving Kiev and being removed from power.

But until a provisional government is formed, the country cannot technically ask for help. When it does, Lagarde said the IMF will send “technical assistance.”

“We are ready to engage,” she said.

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We are pleased to announce the first article of the new academic year in our series of Shorenstein APARC Dispatches. This month's piece comes from Dr. John D. Ciorciari, one of this year's Shorenstein Fellows. Dr. Ciorciari's current research centers on the alignment policies of small states and middle powers in the Asia-Pacific region. He also has interests in international human rights law and international finance. In this piece, Dr. Ciorciari shares some comments on "Myanmar After the Saffron Revolution."

In late September, tens of thousands of Buddhist monks took to the streets of Myanmar, leading the largest uprising against the ruling State Peace and Development Council (SPDC) since 1988. A sharp and sudden hike in fuel prices sparked the protests, but to the regime's many critics, the revolt displayed the depth of popular discontent with economic mismanagement, corruption, and political repression in Myanmar. Images of unarmed monks confronting the feared tatmadaw (armed forces) won the protesters considerable moral support from abroad, as did a public appearance by Aung San Suu Kyi. Some observers anticipated that the "saffron revolution" would lead to the overthrow of the regime, as occurred during the "rose," "orange," and "tulip" revolutions in Georgia, Ukraine, and Kyrgyzstan.

The tatmadaw responded swiftly and brutally, however. Troops imposed tight curfews, raided pagodas, and used clubs and tear gas to disperse protesters. In a matter of days, the armed forces killed numerous demonstrators, arrested or detained thousands more, and re-imposed control. The saffron revolution thus appears to have subsided, and the outlook is not promising for advocates of regime change or dramatic policy shifts in Myanmar.

The episode did reveal some minor cracks in the SPDC edifice. Colonel Hla Win, a longtime senior member of the junta, reportedly defected into an ethnic Karen rebel-controlled area and is seeking political asylum after defying an order to massacre a group of monks. At least one senior army official has leaked incriminating evidence to the press, and a foreign ministry official resigned at the government's "appalling" response to the protests. Prime Minister Soe Win has been hospitalized with leukemia for months. Rumors even swirled of a coup. Nevertheless, SPDC chairman Than Shwe, his deputy Maung Aye, and other cabinet members appear to have closed ranks, and the SPDC looks quite firmly entrenched.

International responses to the uprising and military response have been mixed. Western governments and activist groups quickly condemned the SPDC and pushed the regime to open dialogue with Aung San Suu Kyi's opposition National League for Democracy. U.S. President George W. Bush announced tighter sanctions shortly after the crackdown began. Japan--which has favored engagement in the past--is now considering sanctions and has demanded an explanation and an apology for the shooting of a Japanese journalist.

To dampen international pressure, the SPDC allowed Nigerian diplomat Ibrahim Gambari to enter the country as a UN special envoy. Gambari has met with both Than Shwe and Aung San Suu Kyi to convey the UN's concerns about the crackdown. The SPDC has also appointed retired general U Aung Kyi as an official interlocutor with Aung San Suu Kyi and has made gestures of conciliation to the clergy. However, the Myanmar leadership has rebuffed demands for more serious political dialogue or far-reaching policy reforms.

A degree of Chinese and Russian protection has helped shield the SPDC from international pressure. China and Russia vetoed a U.S.-sponsored UN Security Council resolution demanding that the SPDC free all political prisoners. Officials in Beijing and Moscow argued that the unrest was an "internal matter" unsuited for Security Council action. Their defense of a strong norm of sovereignty--rooted largely in their fear of similar Western attacks--provides political cover for the SPDC. Their objection to isolating Myanmar economically also makes it unlikely that a program of enhanced U.S. and European sanctions will bring the junta to its knees. As long as Myanmar's neighbors do business with the SPDC, it will probably survive.

To date, divergent foreign policy priorities have conspired against a genuinely multilateral policy to drive reform in Myanmar. For China, Myanmar is a strategic gateway to the East Indian Ocean and a source of prized raw materials, as well as a political ally on issues of state sovereignty. India and Thailand have also been loath to cut off or alienate their troublesome neighbor. India has little ideological affection for the SPDC but rejects sanctions and has responded quietly to recent events in Myanmar. Indian officials view Myanmar as an important regional pivot with China and a source of natural resources. Thai policymakers, worried about refugees and instability in ethnic minority enclaves along the border, have tended to prioritize stability over reform in relations with the SPDC. Both India and Thailand derive considerable economic benefits--both legal and illicit--from an open border. In addition, they fear that using their limited leverage to attack the junta will drive it further into China's embrace.

The governments of other member states of the Association of Southeast Asian Nations (ASEAN) have split on the issue. Indochinese states defend Myanmar's sovereignty, while the Philippines, Singapore, Malaysia, and Indonesia have been more openly critical. With a bit of diplomatic legerdemain, Singapore expressed ASEAN's grave concern to Myanmar, speaking as the Association's chair. Discourse in regional think tanks suggests that a growing number of Southeast Asian officials advocate Myanmar's suspension from ASEAN. Although suspension would push Myanmar even further into the margins of international society, it would be unlikely to unseat the SPDC. Isolation also bears obvious risks; cloning North Korea is not in any ASEAN government's interest.

Most analysts agree that China holds the key to improving the prospects for reform, development, and democracy in Myanmar. Indeed, a change in Chinese policy would increase the likelihood of tougher Indian and ASEAN stances, since a fear of encouraging close Sino-Myanmar ties helps justify their existing approaches. The possibility of embarrassment at the upcoming Olympic games provides a short-term incentive for China to press the SPDC for better governance. A longer-term incentive will be to secure the countries' shared border, which is plagued by narco-trafficking, illegal migration, and ethnic conflict. Finally, China has an incentive to build its credibility as a constructive force in Southeast Asia and beyond. Chinese officials have led a well-documented "charm offensive" in the region, both bilaterally and through multilateral institutions, to build influence. To the extent that ASEAN governments make reform in Myanmar a priority, China can show itself to be a responsible stakeholder in Southeast Asia's future.

In the near term, a coalescence of the policies of regional powers is unlikely. Moreover, strong regional pressure does not guarantee seismic policy shifts in Myanmar. The SPDC's harsh response to the protests--like its 2006 decision to move the national capital to a remote area--testifies to considerable paranoia. Still, the outside world has economic, security, and moral reasons to hold Myanmar to higher standards of governance. The pace and direction of change will depend only marginally on the severity of Western sanctions, which bite but do not cripple the regime. Western governments' ability to identify common objectives and forge cooperation with Asian partners will be more determinative. Ultimately, the development of concerted action by relevant Asian states is likely to be the rate-limiting step in the equation. The saffron revolution suggests that many domestic actors are prepared to assume risks to promote reform if Myanmar's neighbors take a tougher stand and help provide the enabling conditions for change.

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Shorenstein APARC Dispatches are regular bulletins designed exclusively for our friends and supporters. Written by center faculty and scholars, Shorenstein APARC Dispatches deliver timely, succinct analysis on current events and trends in Asia, often discussing their potential implications for business.

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