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The 14th Informal APEC Economic Leaders' Meeting concluded on Nov. 19, 2006, and the participants had their photo taken in colorful Vietnamese traditional costumes called ao dai. Still in the shadow of the congressional election failure, President George W. Bush, realizing that a stable Asia is very important for the U.S. geostrategy, took advantage of the occasion to enhance the prestige of the United States. Just as American experts said, the Bush administration has probably become a lame duck now, but even a healthy duck needs to find a quiet pond.

"APEC's uniquely trans-Pacific character is an important political reason for U.S. to strengthen the group," Donald Emmerson, director of the Southeast Asia Forum of Shorenstein APARC at Stanford University, explained. "While APEC has lagged, East Asian regionalism has boomed. That has been good for East Asia. But U.S. and East Asian interests alike could be hurt if the Pacific Ocean ends up being split between rival Chinese and American spheres of influence."

However, the U.S. effort to save the Doha Round of trade talks with the Asia-Pacific Free Trade Agreement has yielded little. The Doha Round aimed to remove trade barriers in the world but was suspended due to some countries' agriculture protection policies. Washington had wanted to model the Doha Round upon the Asia-Pacific Free Trade Agreement. But U.S. officials never expected that there would be so many differences among the Asia-Pacific leaders, and that the economic development of Pacific Rim countries differ in thousands of ways. Despite the fact that the Hanoi Statement reiterated that supporting the Doha Round was APEC's priority, no material progress has been made.

"The U.S. is urging a last ditch effort to restart the talks through APEC," Professor Charles Morrison, president of the East-West Center located in Hawaii, says. "Whether or not APEC can do more than make a rhetorical statement of support is unsure. I feel that the APEC economies should agree to prepare new offers within a short period of time -- three weeks, for example -- to challenge the Europeans, Brazilians, Indians and others."

United States Steps Out to "Please" ASEAN

Seventeen years after its establishment, APEC now plays a decisive role in the international political arena. It has 40 percent of the world's population, 48 percent of the world trade volume and 56 percent of the world GDP. Since 1989, the economy in this region has grown by 26 percent, compared to only 8 percent economic growth rate in the rest of the world. With the double advantage of economic strength and rapid growth, China, being one of APEC's main economies and its "engine," has fully taken the limelight. On the other hand, the United States has been weighed down with countering terrorism in the Middle East.

"China has done very well in enhancing its relations with Southeast Asia in recent years," Sheldon Simon, professor of the Program in Southeast Asian Studies at Arizona State University, points out. "China has not only established a free trade forum for China and ASEAN countries, but also helped and influenced the area with its economy and culture. But I think that the United States has realized the importance of this area and come back to fasten its friendly relationship with the region."

The United States coming back to Southeast Asia and repairing its relations with the ASEAN countries is partly activated by China's increasing influence in the area.

"The naissance and growth of some democratic countries in Southeast Asia has received sympathetic response of democratic values from Washington," said Simon. "With the traditional friendly relations between the area and the United States, these countries value their friendship with the United States sometimes more than the trust in their neighboring countries. Geopolitics is also very important factor. The Asia-Pacific area is a very important to the world economy and the U.S. power structure. Therefore, the United States will not easily give it up."

Another motive for the United States to foster closer relations in the area is the common interest of countering terrorism. There are still some terrorist groups in Indonesia, the Philippines and southern Thailand.

"President Bush has a perfect attendance record at APEC meetings (Clinton missed two of them), which says that he does take APEC seriously and believes Asia is important to U.S. interests," Ralph Cossa, president of the Pacific Forum Center for Strategic and International Studies, said in an interview with the Washington Observer Weekly.

Besides attending the APEC summit meetings annually, Washington has recently activated several plans to "please" the ASEAN countries, including setting up a ministerial dialogue system with them and a platform for maintaining contact at the deputy finance minister level, even increased exchanges at the deputy defense secretary level.

The extent of U.S. efforts to foster cordial relations with Southeast Asian countries can also be seen in the increasingly friendly U.S.-Vietnamese economic and trade relations. The Bush administration is not only supporting Vietnam to enter the WTO, but has even proposed giving Vietnam Permanent Normal Trade Relations (PNTR) status.

"The reason that Bush failed to bring the gift of PNTR status to the APEC Hanoi summit is that the Congress dominated by the Republicans was lacking efficiency and could not pass the proposal in time," Simon explained. "But I think that it will be passed as soon as possible in the next month or by the Democrats who begin to dominate the Congress from next January."

Simon and Cossa both admit that Burma is an unharmonious element in U.S. relations with ASEAN. The Burmese dictatorial military government is really the most typical negative example of democracy for the United States. But ASEAN countries are reluctant to see Burma "punished" by the United States for ideological reasons. So Burma has become a sensitive issue in U.S.-ASEAN relations.

"This is a good way for him to interact with ASEAN since Myanmar is not there and this issue does not have to be addressed," said Cossa.

Simon, an expert of Southeast Asia affairs, points out ASEAN countries should be happy about the advantage they have with China and the United States vying for their attention. Being able to juggle the two big powers, Southeast Asia has gained many practical interests and financial aid for its economy, trade, security, culture and education.

"In a short period, there will not be any serious interest conflicts in the triangle balance of China, the United States and ASEAN," Simon told the Washington Observer Weekly. "ASEAN countries' only worry, if there is any, is an accidental spark in the U.S.-China military interaction in Southeast Asia such as the confrontation across the Taiwan Straits."

Turning the Asia-Pacific into a "Gigantic Enterprise?"

"The United States wants to demonstrate its continuing interest in the Asia-Pacific region. It is urging for a study of an Asia Pacific free trade area and support for an APEC business card, and both shifts of approach, illustrate its interest in and support for the APEC process," said Morrison.

An important subject for the APEC Hanoi summit is the "active discussion" of establishing an APEC free trade region. Former U.S. President Bill Clinton proposed for the first time in 1993 the setting up of such an economic zone. Before Bush's visit, Deputy U.S. Trade Representative Karan Bhatia suggested that establishing an APEC free trade zone would be a subject worth serious discussion. But his proposal did not receive a warm response from the host. The Vietnamese Deputy Foreign Minister Le Cong Phung stressed that establishing a free trade zone is a long-term objective and will not affect progress of negotiations with the WTO or other bilateral trade agreements.

"Regarding the study of the Asia Pacific free trade area, a number of economies were skeptical because it would be such a large undertaking," said Morrison. A similar plan was once axed in an APEC ministerial statement and the leaders attending this summit do not seem to have much interest in it.

Simon explained Bush's thinking on the subject: "Washington reiterated its intention to establish an Asia-Pacific free trade zone in order to save the precarious WTO Doha Round. Breaking the tariff barriers in the Asia-Pacific region will help continue to press relevant countries to concede in granting agricultural tax subsidies and hopefully open the door to the Doha Round."

The five-year Doha Round was suspended in July this year because six major WTO members -- the United States, the European Union, Japan, Australia, Brazil and India -- failed to reach agreement on market access for agricultural and non-agricultural products. Given the situation, the organizer said that the informal APEC economic leaders' meeting would provide a "good opportunity" to help restore the Doha Round talks. However, the Hanoi summit joint declaration just vaguely indicated that APEC will pursue further integration on issues such as energy in 2007. It would be extremely optimistic to expect that APEC will be able to remove all the tariff barriers in the region before 2010. Although the area produces 50 percent of the world's economic value, the styles and stages of economic development, the cultural backgrounds and political systems of the countries in the region vary a great deal, making it very difficult for these Asian countries to eliminate all these discrepancies and become fully integrated.

"Out of different worries, many Southeast Asian countries are actually not interested in the proposal though they do not speak out. Or we may say that it's not time yet now to change the Asia-Pacific region into a gigantic enterprise," Simon told Washington Observer Weekly.

Quite apart from who concedes what in return for what concession over the APEC free trade mechanism, the question arises: What geographical scope should a regional trade arrangement have? Who should be a party to the agreement and who should not?

There would appear to be three different ideas on the table: (a) the APEC-wide free trade area that the United States proposed at the recent summit in Hanoi; (b) the East Asia Summit-wide framework that Japan reportedly favors, which would include ASEAN + 6 (China, Japan, South Korea, India, New Zealand, Australia) but not the United States; and (c) the ASEAN Plus Three (China, Japan, South Korea) context that China seems to prefer, in which the exact positions of Tokyo and Beijing are not entirely clear.

"Without discussing the merits or demerits of each of these arrangements, suffice it to note that since ASEAN is common to all of them, the net effect of these alternative ideas is to strengthen the negotiating position of ASEAN," said Emmerson. "Then again, ASEAN will not necessarily be unified as to its preference for the three proposals. It will be interesting to look for the positions to be taken by individual ASEAN countries and for their collective effort to arrive at a single negotiating position, e.g., in the run-up to the ASEAN summit and the second the East Asia Summit in the Philippines next month."

Cossa has hope for 2007. "The U.S. in particular would like to see APEC moving faster, and will look ahead to next year, with Australia in the chair, for some real progress."

American Public Doesn't Share Washington's Interest in Southeast Asia

The prospect of economic and strategic cooperation brought about by APEC made for a lively week in Southeast Asia. But it stirred little response in the United States. According to the interviewed experts of Southeast affairs, the American public is still haunted by the situation in Iraq and the mid-term election. Even the U.S. media framed the event as Bush's first visit to a foreign country since the Republicans were defeated in the mid-term election.

"Because of the Congressional election, President Bush will want to show leadership rather than simply respond to the new Congress. Both Doha and the nuclear proliferation issue are examples," said Morrison.

Cossa holds a different view: "I don't think the elections will have any major impact on what Bush does or how he does it during this trip. Iraq is his legacy. What he does in Asia can make things better or worse at the margins but will likely be overshadowed by Iraq."

Simon echoed the sentiment. "On one hand, the Republican Party's defeat in the election cannot directly influence Bush's trip to Asia. On the other hand, Bush's economic achievements in the Southeast region will not add to his political record. In Asia, only the North Korea issue may sway the public opinion in the United States."

Yan Li, Washington Observer weekly - Issue No. 201, November 22, 2006

Reprinted by Permission February 12, 2007.

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The islamization process in Pakistan is at the core of the contradictions and identity conflict of Pakistan. It is the permanent attempt to rewrite the history whose founding fathers intended to make the homeland for the Muslims of the Indian Subcontinent, much the against the will of the clergy. However it is also an instrument of perpetuation in power of a largely secular military, which constantly manipulates Islamic symbols.

Although widely discussed, the process of islamization in Pakistan has remained relatively limited. No elected legislature went beyond the expression of the idea of the supremacy of the Islamic law. No elected legislature ever passed a somewhat substantial provision. Despite an increasingly strong, or at least vocal religious pressure, the constitution and the legislation of the Pakistani state are still based on a compromise between modernist institutions and ever more pressing religious demands, yet still limited. The supremacy of the Sharia is regularly reaffirmed, yet its implementation does not progress.

The presentation will analyze the impact of the islamization policies, less however on the legal and constitutional system than on the economic, political and social life of Pakistan. Starting from the observation that the islamization process is more limited that it may seem, the presentation will draw on to say that this process reinforces more than it challenges the existing political and social order, and its most salient political expression, the current military regime, by preventing, on the one side the emergence of any real alternative political project and, although in a more pragmatic manner, by bringing back in mainstream politics the fraction of the social body which could possibly be tempted by more radical means of actions.

In this perspective, four dimensions will be more specifically studied: 1) The evolution of the role of religious movements and parties within the Pakistani state; 2) The relationship between these same religious movements and parties and the Pakistani establishment; 3) The specific role of the madrasas in this relation; 4) The relation the religious parties entertains with democracy.

Frederic Grare is a visiting scholar with the Carnegie Endowment for International Peace. He will lead a project assessing U.S. and European policies toward Pakistan and, where appropriate, recommending alternatives with Ashley J. Tellis and George Perkovich. Grare will focus on the tension between stability and democratization in Pakistan, including challenges of sectarian conflict, Islamist political mobilization, and educational reform. Grare also will facilitate interactions between U.S. experts and officials and European counterparts on the main policy challenges in South Asia.

Grare is a leading expert and writer on South Asia, having served most recently in the French embassy in Pakistan and from 1999 to 2003 in New Delhi as director of the Centre for Social Sciences and Humanities. Grare has written extensively on security issues, Islamist movements, and sectarian conflict in Pakistan and Afghanistan. He also has edited the volume, India, China, Russia: Intricacies of an Asian Triangle.

His most recent publications include: "India, China, Russia: Intricacies of an Asian Triangle, with Gilles Boquerat"(eds), (New Delhi, India Research Press, 2003); "Pakistan and the Afghan Conflict, 1979-1985: At the Turn of the Cold War" (Karachi, Oxford University Press, 2003); "Political Islam in the Indian Subcontinent: The Jamaat-i-Islami" (New Delhi, Manohar, 2001)

Grare has an advanced degree from Paris Institut d'Etudes Politiques and received his Ph.D. from the Graduate Institute of International Studies.

Dr. Grare's talk is the first seminar of the winter quarter South Asia Colloquium Series.

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Frederic Grare Visiting Scholar Speaker Carnegie Endowment for International Peace
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A key issue in political economy concerns the accountability that governance structures impose on public officials and how elections and representative democracy influences the allocation of public resources. In this paper we exploit a unique survey data set from nearly 2450 randomly selected villages describing China's recent progress in village governance reforms and its relationship to the provision of public goods in rural China between 1998 and 2004. Two sets of questions are investigated using an empirical framework based on a theoretical model in which local governments must decide to allocate fiscal resources between public goods investments and other expenditures. First, we find evidence, both in descriptive and econometric analyses, that when the village leader is elected, ceteris paribus, the provision of public goods rises (compared to the case when the leader is appointed by upper level officials). Thus, in this way it is possible to conclude that democratization, at least at the village level in rural China, appears to increase the quantity of public goods investment. Second, we seek to understand the mechanism that is driving the results. Also based on survey data, we find that when village leaders (who had been elected) are able to implement more public projects during their terms of office, they, as the incumbent, are more likely to be reelected. In this way, we argue that the link between elections and investment may be a rural China version of pork barrel politics.

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The Northeast Asian region has witnessed phenomenal economic growth and the spread of democratization in recent decades, yet wounds from past wrongs - committed in times of colonialism, war, and dictatorship - still remain. Of all the countries in the northeast region coping with historical injustice, the Republic of Korea has the rare distinction of confronting internal and external historical injustices simultaneously, both as a victim and as a perpetrator. Korea's experience highlights the major forces shaping the reckoning and reconciliation process, such as democratization, globalization, regional integration, and nationalism, in addition to providing valuable insight into the themes of historical injustice and reconciliation within the region.

Although there is no universal formula for reconciliation, the contributors examine the reaction of society from the perspective of citizens' groups, NGOs, and victim-activist groups toward such issues as enforced labor, ,comfort women, and internal injustices committed during the wars to foster a better understanding of the past and thus aid in future reconciliation between other Northeast Asian countries.

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Is the democratization of Indonesia affecting its relations with the US? Yes, but not always in anticipated ways. Indonesia-American relations in Soeharto's time were not always smooth. But the volatility came mainly (not wholly) in the form of NGO and Congressional criticism in the US in response to human rights violations in Indonesia. In Washington DC, the executive branch was not always supportive of the Indonesian government, but many of the occasions when, for example, the State Department criticized events or conditions in Indonesia were prompted by American legislative pressure. Without such pressure, including pressure by NGOs, would the Dili massacre have prompted the US to suspend inter-military (mil-mil) relations with Indonesia? Probably not.

An idealized image of necessarily friendly democracies would extend the negatively phrased "democratic peace" thesis, that democracies don't fight each other, to the positively wishful thought that by virtue of having (relatively) accountable governments, democracies are bound to get along. But such a "democratic amity" thesis is untenable. It was easier for DC to deal with Jakarta when power was concentrated in the hands of a man who, notwithstanding his Javanist style or, at any rate, proverbs, upheld a version of the anticommunist assumptions that drove much of US foreign policy during the Cold War while lifting his country's macroeconomic indicators and welcoming FDI.

Now that both countries are democratic -- a rough likeness that hides many differences -- one could argue that Indonesian-US interactions, far from being smoother, as "democratic amity" would have it, should be more turbulent. For now that power no longer clearly resides in one place in the archipelago, Indonesian as well as American pluralism can contribute to instability in the relationship.

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This project seeks to understand the emergence and evolution of social movements during the 1970s and 1980s in South Korea. During the authoritarian years when Korea was ruled by (former) military generals, various social groups participated in the movement to restore democracy and ensure human rights. Their activism was instrumental to democratic changes that took place in the summer of 1987 and they continued to play an important role even after democratic transition.

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This is a Special Seminar within the CDDRL Taiwan Democracy Program (co-sponsored with Shorenstein APARC).

Richard Bush is a Senior Fellow at the Brookings Institution and Director of its Center for Northeast Asian Policy Studies. The Center serves as a locus for research, analysis, and debate to enhance policy development on the pressing political, economic, and security issues facing Northeast Asia and U.S. interests in the region.

Bush came to Brookings in July 2002, after serving almost five years as the Chairman and Managing Director of the American Institute in Taiwan (AIT), the mechanism through which the United States Government conducts substantive relations with Taiwan in the absence of diplomatic relations.

Dr. Bush began his professional career in 1977 with the China Council of The Asia Society. In July 1983 he became a staff consultant on the House Foreign Affairs Committee's Subcommittee on Asian and Pacific Affairs. In January 1993 he moved up to the full committee, where he worked on Asia issues and served as liaison with Democratic Members. In July 1995, he became National Intelligence Officer for East Asia and a member of the National Intelligence Council (NIC), which coordinates the analytic work of the intelligence committee. He left the NIC in September 1997 to become head of AIT.

Richard Bush received his undergraduate education at Lawrence University in Appleton, Wisconsin. He did his graduate work in political science at Columbia University, getting an M.A. in 1973 and his Ph.D. in 1978. He is the author of a number of articles on U.S. relations with China and Taiwan, and of At Cross Purposes, a book of essays on the history of America's relations with Taiwan.

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Richard C. Bush Director, Center for Northeast Asian Policy Studies, and Senior Fellow, Foreign Policy Studies Speaker The Brookings Institution
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The increasing sectarian conflict in Iraq and the rise of Islamist parties like Hamas and Hezbollah have put American efforts to democratize the Middle East on hold and raised doubts among experts and policy makers about whether democracy is compatible with the Muslim faith. But in a campus appearance yesterday afternoon, former Malaysian Deputy Prime Minister Anwar Ibrahim offered an ardent defense of democracy in the Muslim world, telling a standing-room-only crowd in Bechtel Conference Center that "men and women are born free, even in the Islamic construct."

Alternating between serious and sporting through his two-hour speech, Ibrahim broached many of the issues aggravating relations between Islam and the West, including gender relations, American foreign policy, cultural assimilation in Europe and Pope Benedict XVI's recent comments about Islam. However, he was most outspoken regarding his home country - he was a political prisoner in Malaysia for over four years - and rejected the race - and religious-based affirmative action policies that benefit the Malay majority there.

Returning repeatedly to the topic of Muslim democracy, Ibrahim drew from historical references and personal experiences, citing the democratic regimes of Indonesia and Iran of 1950s.

"There was no debate then whether democracy was compatible with Islam," he said. "Fifty years later, we have our leaders in the Muslim world telling us we're not ready."

The fundamental nature of democracy and human rights is universal, Ibrahim emphasized, adding that problems begin with cultural miscommunication.

"We have to debunk and reject the notion, held by Muslims and non-Muslims alike, that to support democracy and freedom is to support America, "he said. "And it is important for Americans to realize democracy is a value cherished as much by Muslims as it is by Americans."

"Misperceptions are unfortunate," he added, elaborating on his impressions of American culture. "This is a country full of contradictions. The level of sophistication and intellectual flavor is unparalleled. So why must people be so prejudiced? Why is misunderstanding so pervasive? To say that Muslims are entirely anti-America is wrong."

Ibrahim offered scathing criticism of his fellow Muslims for violent reactions to both the publication of caricatures of Mohammad in a Danish newspaper in 2005 and to the more recent comment by Pope Benedict XVI referring to elements of Islam as "evil and inhuman." The cartoon spawned riots killing 139 in Nigeria, Libya, Pakistan and Afghanistan, while the Pope's remarks fueled a maelstrom of controversy, including the firebombing of Catholic churches throughout the Middle East and the shooting death of a nun in Somalia.

"There is a right to disagree but no one has the right to cause destruction or destroy life," he said. "No one has the right to call for the banning of newspapers."

Acknowledging that his comments were not necessarily indicative of Islamic public opinion, he said, "This view may not be shared by all Muslims, but I am prepared to confront them."

Ibrahim's penchant for speaking his mind and sticking to his principles has dogged the leader through a career of controversy. As a young Malaysian activist in the 1970s, he was arrested during a student protest and spent 20 months in a detention camp. Following a meteoric political ascent, he was named Deputy Prime Minister in 1993, and many expected that he was Prime Minister Mahathir bin Mohammad's chosen successor.

But their relationship turned sour, and in Sept. 1998 Ibrahim was stripped of party membership and incarcerated under charges of corruption and sodomy. The charges were eventually overturned and he was released in Sept. 2004.

Regarding Malaysian politics today, Ibrahim expressed distaste toward his nation's system of bumiputera - a system of economic and social policies designed to favor ethnic Malays.

"I reject affirmative action based on race," he said. "Our policies should benefit the poor and the marginalized."

Finally, he described the need for engagement between the Islamic world and the West, criticizing the "extreme" foreign policy of the United States and its refusal to negotiate with regimes like Hamas.

"That policy is flawed," he said, adding that "to refuse to engage is a recipe for disaster."

Patrick K. Fitzgerald, Editor-in-Chief

Fitzgerald, a Stanford undergraduate, visited Malaysia in September 2006 as a member of the SEAF-supported Stanford Overseas Seminar in Singapore.

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Anwar Ibrahim (L), Don Emmerson (R)
Alvin Chow/The Stanford Daily.
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