This article was originally written by Melissa De Witte on behalf of Stanford News.

As Monday’s coup in Myanmar demonstrates, democracy is often fragile and subject to setbacks, says former U.S. ambassador to Myanmar and Stanford visiting scholar, Scot Marciel.

Here, Marciel discusses how in a country like Myanmar (formerly Burma), which was under military rule from 1962 to 2011, establishing a democracy takes time. Despite democratic reforms over the past decade, the military in Myanmar has held onto a considerable amount of power, said Marciel, noting that it is difficult to build not only a representative parliament but other democratic institutions including an independent judicial system, a fair police force and a free press.

While Monday’s coup is a major setback in Myanmar’s fight for democracy, Marciel said that there are many people in the country who will do what they can to restore their elected government and build the foundations of democracy.

Marciel is a visiting scholar at the Walter H. Shorenstein Asia-Pacific Research Center (APARC), Stanford’s hub for interdisciplinary research, education and engagement on contemporary Asia that is run under the auspices of the Freeman Spogli Institute for International Studies. Marciel served as U.S. Ambassador to Myanmar from March 2016 through May 2020. From 2010 to 2013, Scot Marciel served as U.S. Ambassador to Indonesia.

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What do people who have not spent extensive time studying or living in Myanmar need to know about its history to better understand Monday’s coup?

A couple of things. First, as historian Thant Myint-U has written, Myanmar is an unfinished nation, in the sense that the diverse communities that make up the country have never truly solidified as a unified nation. The country has been in near-constant conflict, mostly between the majority Bamar ethnic group and the many ethnic minority communities that inhabit much of Myanmar’s border areas. Second, the military staged a coup in 1962 and ran the country for nearly 50 years before allowing some movement toward representative democracy beginning in 2011-2012. So the military has long been a dominant force in the country, and – even after the reforms of the past decade – retained substantial power.

Is there anything that is often misunderstood about its history and its people?

In the West, many people have tended to view Myanmar mostly through the prism of a struggle for democracy between the military and the civilian opposition, led by Aung San Suu Kyi. That is a critically important part of the story, for sure. Perhaps equally important, however, has been the struggle of the many ethnic minority communities for equality, a degree of autonomy, and respect for their own histories, cultures and languages. This struggle has produced widespread conflict, significant human rights abuses, and large numbers of refugees and displaced people for decades.

What are some of the difficulties in establishing, and maintaining, democratic rule in a country like Myanmar?

First, persuading the military to give up power, depart from politics, and play a more appropriate role in the country. Second, it is very difficult to build the institutions of democracy, including not only parliament, but also a strong, independent judicial system, an effective and fair police force, and respect for the critical role of civil society and the independent media. In Myanmar, another essential aspect is to shift from historically centralized rule to a federal structure that would allow the various communities across the country to have more of a say in how they are governed.

As ambassador to Myanmar, what was it like working with not only the country’s policymakers but also its people? What did you learn from them about how democracy is established? And how did those experiences shape your perspective?

In Myanmar, I met so many people, all over the country, from many different walks of life, who had sacrificed and continued to sacrifice to try to build democracy and respect for human rights. Some operated at the national level, others at the local level. It was a good reminder that democracy isn’t just imposed from the top; it requires careful building at the community and state level, with intensive involvement by the various communities. It also takes time and, as we have seen this week, is often fragile and subject to setbacks. In other words, it is a long-term effort that requires persistence, courage, and participation by large numbers of people. Establishing a democracy is a lengthy, painstaking effort that can be upended, particularly if the armed forces are politicized and pursue their own agenda.

Is there anything else you would like to add? 

This week’s military takeover constitutes a major setback, but the story of Myanmar’s struggle for democracy is not over. Many people there will continue to do what they can to restore elected government and build, brick by brick, the foundations of democracy.

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Soft Power and U.S.-China Competition

One thing the Trump administration has identified correctly and managed to get consensus on, says Chinese military and security expert Oriana Skylar Mastro, is that the United States is in a great-power competition with China. Biden now accepts this framework, and Mastro expects him to maintain the basic principles of U.S. Asia policy, such as strategic ambiguity and ensuring Taiwan’s defense through arms sales. The difference will be in Biden’s approach, which is based on “multilateralism, strengthening partnerships, and not trying to provoke Beijing for the sake of provoking Beijing.” This approach, believes Mastro, is going to improve the U.S. position in terms of competition.

A core component of the U.S.-China great-power competition, however, is soft power — the ability of countries to get what they want through persuasion or attraction in the form of culture, values, and policies. Soft power, argues Mastro, is an area that is very hard for a president to have control over and rebuild, and American soft power has taken a tremendous hit with the breach of the U.S. Capitol on January 6. Demonstrating the decline of American democracy, the scenes from the pro-Trump mob attack have been a win for China and are hardly encouraging for U.S. partners and allies.

Biden can do a lot to tackle U.S. domestic problems and improve the political image of America abroad. But soft power, concludes Mastro, is organic. “I fear that President-elect Biden is going to learn that soft power, once lost, is very difficult to regain.”

The U.S.-Japan Alliance and Security in the Asia-Pacific

In shifting to relations between the United States and Japan, Kiyoteru Tsutsui focuses on how the traditional aspects of the Japan-U.S. alliance are playing out in the current geopolitical theater. In Tsutsui’s view, Japan’s early brushes with Chinese might in the 2010s has left the country particularly keen on ensuring that a strong counterbalance exists to China’s strategic advantage.

To that end, Japan has proactively partnered with other nations on trade deals such as the Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The fact that both of these major free trade agreements were concluded without U.S. involvement is significant, and whether President Biden makes any response will be “one the more closely watched issues among foreign policy experts in the coming years,” by Tsutsui’s measure.

The reemergence of ‘the Quad,’ and even discussions of a ‘Quad+’ that includes nations such as South Korea, is of particular interest to Tsutsui. Such groups provide additional avenues for further developing the ‘free and open Indo-Pacific’ strategy originally envisioned by Prime Minister Abe. But Tsutsui is also not opposed to the idea of engaging China directly in multilateral efforts as long as China understands the U.S. and Japan’s resolve in countering Chinese aggression and non-peaceful ambitions.

The Korean Peninsula in the Spotlight

When it comes to engagement on the Korean peninsula, Gi-Wook Shin hopes the new administration will avoid a reactionary response and backsliding into old habits. The temptation to respond with an “anything but Trump’s” approach to handling relations with North Korea may be strong, particularly given the president’s unusually forward relationship with North Korean leader Kim Jong Un, but Shin counsels to not set aside everything Trump did in regards to the DPRK.

“Bringing North Korea and Kim Jong Un more into the international community was an important step that no other president has made,” he says. Shin strongly cautions against a return to the strategic patience typical of the Obama era. With Kim’s consolidated control and North Korea’s wielding far more advanced nuclear capabilities and significantly strengthened ties to China than it did eight years ago, a return to previous patterns of diplomacy would fail to address the present circumstances on the Korean peninsula. Shin urges the Biden administration to reemphasize human rights and deepening dialogues with its diplomatic counterparts in Seoul. He foresees an improvement in U.S.-ROK relations but warns that North Korea can be a source of tension between the two allies.

Opportunities for Allies in Southeast Asia

Donald Emmerson also recommends strengthening diplomatic ties to the nations of Southeast Asia and the Association of Southeast Asian Nations (ASEAN). By his assessment, “ASEAN needs creativity. It needs new ideas rather than simply following the path of least resistance.” Emmerson envisions this well-spring of creativity coming in part from robust new efforts by the United States to engage with the region diplomatically and academically.

Existing forums such as the Bali Democracy Forum can provide a ready-made platform for engagement, while active participation in gatherings such as the Global Town Hall organized earlier this year by the Foreign Policy Community of Indonesia (FPCI) provide easy opportunities for the United States to meaningfully engage with Southeast Asia.

An Outlook on the Broader Asia-Pacific

Closing out the panel’s remarks, Thomas Fingar offers measured optimism for the future. “I think the incoming U.S. approach to the countries in Asia, China included, is going to be pragmatic and instrumental, not transactional. Every nation who thinks they can contribute, does contribute, and is willing to play by a rules-based order can be part of the solution.”

Fingar expects the Biden administration’s foreign policy to be “focused on problems, not places” — to be driven less by particular animosity or affection for certain countries and more by addressing global issues that promote American interests, such as climate change, the impediments in the international system to advancing American economy, and preserving security.

By consensus, the incoming Biden administration’s most immediate concerns are overwhelmingly domestic. But as Mastro articulated, the effects of the United States’ domestic policies directly impact its perception, standing, and sphere of influence around the globe.

Effective relationships between the United States and the Asia-Pacific cannot be sustained in the long term with an ongoing ‘America first’ agenda or by pursuing zero-sum goals. Rather, the Biden administration must focus on finding solutions to multilateral needs by working side-by-side with Asian nations as co-sponsors and co-leaders.

This op-ed by Oriana Skylar Mastro and Zack Cooper originally appeared in Australian Financial Review.

Australia’s trials are not the first time Beijing has used economic coercion against another country.

It has become so common that we are becoming desensitised to it. Some notable examples include Beijing’s limitations on rare earth exports to Japan in 2010, Norwegian fish exports in 2010, Philippine tropic fruit exports in 2012, Vietnam’s tourist industry in 2014, Mongolian commodities trade in 2016, and South Korean businesses in 2017. In each case, Beijing sought to achieve a political objective by imposing economic penalties.

This case is different. Beijing has typically been ambiguous about the purpose or nature of its coercive economic statecraft. Despite evidence otherwise, it blamed the Japanese ban on meeting a yearly quota, the Philippine ban on pesticide exposure, the tourism drop to Vietnam on changing Chinese preferences, and the closure of South Korean stores on fire code violations. In Australia’s case, though, Beijing is doing away with these pretenses.

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China has not been shy this time about connecting its punitive actions to its unhappiness with Australian policies. The Chinese foreign ministry has listed a “series of wrong moves” by Australia for the disruption in relations. Beijing’s embassy in Canberra then gave a list of 14 “mistakes” to the Australian press.

These grievances include Australia’s foreign interference legislation, foreign investment reviews, funding for Australian think tanks, and unfriendly media reporting. Some of these criticisms are particularly ironic coming from Beijing, which often objects to foreign interference in other countries’ domestic affairs.

A core component of China’s strategy is a disinformation and propaganda effort designed to paint its moves as merely defensive, a proportionate and legitimate response to actions taken by the other side.

Australia has done nothing ‘wrong’

Let’s be clear: Australia has done nothing “wrong” in promoting and protecting its democratic institutions at home. It should not censor its media, obstruct analysis by outside experts, or shy away from safeguarding its democratic processes.

This time, the current trade restrictions are about more than making an example of Australia or showing smaller powers that they’ll pay if they have something to say about how the Chinese Communist Party governs at home. Beijing’s aims have taken on new proportions. Party leaders are now willing to punish democracies simply for upholding basic democratic principles within their own countries.

The message is clear: curtail some of your democratic principles or pay the price.

The US needs to work with like-minded states around the world to address this new threat. Free countries need to speak out together in Australia’s defence. If democracies do not hang together, they will hang separately. We should articulate that China’s actions are more than a violation of international law; they threaten the health of our democracies at home. Such a reframing would show Beijing that economic coercion will no longer be treated as a low-stakes tactic.

But words are not enough. We need coordinated action. US alliances are designed primarily to deter and defend against military attacks. Chinese actions make clear, however, that there are alternative methods for undermining peace, prosperity and freedom that our alliances do not adequately address. New alliance consultations to protect against economic attack would enhance our deterrence against China.

Washington should also launch a series of discussions with its allies to determine what new institutional mechanisms, commitments, and structures are needed to defend against economic attacks, not just military ones.

We should ensure the ability to take joint reciprocal action against Beijing in the economic realm, particularly to defend smaller countries. China engages in economic coercion because it is effective and relatively risk-free. But if instead like-minded countries responded together when one was attacked economically, this would go a long way in discouraging Beijing from employing such tactics.

Using all the tools of power

A critical first step is mapping dependencies on China and investigating how to limit over-dependence that open democracies to unacceptable economic vulnerability. As in the military realm, we need to enhance our resiliency against attack by avoiding over-dependence on any single import, export, or supply chain decency. This is a task that the so-called D10 (G7 plus Australia, India, and South Korea) should take up early next year.

The good news is a collective response to Chinese economic coercion will be more feasible under a Biden administration. President-elect Joe Biden and his senior advisers have articulated a preference for multilateral responses to Chinese aggression.

And while President Donald Trump relied mainly on military moves to warn and punish Beijing, Biden’s team prefers to make use of all tools of power. For these reasons, there has even been talk of rejuvenating past efforts like TPP. US allies and partners are also likely to see Biden as more reliable, making them more willing to undertake the risky venture of joining forces against Beijing.

The United States, Australia, and other allies and partners tried to welcome China into the international community. This was the right move. It has been good economically for many advanced economies, including Australia and the United States. But there is a flip side to every coin.

Australia has become too vulnerable to the whims of Beijing. And the US has few options to protect against such economic pressure. The incoming Biden administration needs to fundamentally rethink the nature of alliances so that countries like Australia have a third option the next time Beijing forces a choice between freedom and prosperity.

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Speaking at the Shorenstein Award’s nineteenth annual discussion, which was held virtually due to COVID-19, Wright detailed the 1MDB story and its beginning with an unknown Chinese-Malaysian Wharton graduate named Jho Low, who allegedly set in motion a fraud of unprecedented scope and magnitude. An epic true-tale of corruption and greed involving heads of state and Hollywood stars and enabled by a raft of Western institutions, the story is the subject of Wright’s coauthored bestseller Billion Dollar Whale, based on his years of reporting on the scandal for the Wall Street Journal.  Mr. Low, who was indicted by U.S. authorities and by prosecutors in Malaysia, remains at large. He has denied any wrongdoing.

Wright’s exposure of the scandal has reverberated around the world. It was read by millions of people in Malaysia and sparked popular revulsion with the corrupt government of Prime Minister Najib Razak, leading to his shocking election loss in 2018. Wright’s revelations also shook the global financial system, underpinned investigations by law enforcement and regulators in six countries, and unveiled flaws of China’s Belt and Road signature program.

Accountability Journalism in Asia

“Tom Wright’s work represents the essence of accountability journalism,” said Jay Hamilton, the Hearst Professor of Communication, Chair of the Department of Communication, and Director of the Journalism Program at Stanford, who also serves as a member of the selection committee for the Shorenstein Journalism Award. “Wright takes the time, often enumerated in months or years, to discover facts about how institutions are operating. When his work is published, the world changes, debates ensue, individuals lose jobs or an election, policies are corrected, and there are people, often in Asian governments and Western companies, who wish they had done a better job of keeping their corruption secret.”

Wright is honored with the Shorenstein Journalism Award for his stellar reporting done over 25 years, mainly in South and Southeast Asia. A theme running through Wright’s work is the blight of corruption in Asia, abetted by Western organizations. In 2008, his investigation revealed how Indian wind turbine producer Suzlon, backed by U.S. investors, was hiding technology defects that made its turbines unsafe, leading to a collapse in the company’s shares. In 2011, he broke new ground reporting about the Obama administration's multibillion-dollar civilian aid program in Pakistan. He was one of the first journalists to arrive at the scene of the raid in which Navy SEALs killed Osama bin Laden. And in 2013, Wright spearheaded the coverage of the Rana Plaza factory disaster in Bangladesh, which killed over 1,000 people, exposing how international garment manufacturers turned a blind eye to safety violations to keep costs down.

A Triumph for Impunity

Five years after the 1MDB story came to light, however, almost no one has gone to jail. In Malaysia, Najib Razak was sentenced to 12 years in jail but is now in the process of appealing the case and continues to campaign in the meantime. In July 2020, Goldman Sachs reached a $2.5 billion settlement with the Malaysian government to resolve all criminal and regulatory proceedings in the country involving the firm, and on October 19, 2020, a day before the Journalism Award discussion, it was announced that the firm had reached a $2.2 billion settlement with the U.S. Department of Justice. While the penalties will cost the firm about two-thirds of a year’s profits, Goldman will avoid the harshest sanctions that prosecutors had sought. And while a Singapore-based Goldman subsidiary tied to the misconduct was expected to plead guilty, no one at the parent firm will face criminal charges.

“I don't think any of this is going to deter the kind of behavior that enabled this scandal,” said Wright. “Goldman just had a record-profit quarter and, astoundingly, in my view, there is no criminal liability […] We’re seeing democracy challenged around the world and, having spent so long on the 1MDB scandal, I feel very strongly that this kind of enabling behavior by Western institutions in foreign countries with poor rule of law is one of the reasons why democracy is so badly rooted in these places. Western institutions need to be held accountable for their actions in these countries.”

The Role of International Media in Exposing Global Corruption

Wright’s discussion was followed by a conversation with Meredith Weiss, professor and chair of Political Science at the University at Albany, SUNY. Weiss has published widely on the politics of identity and development, electoral politics and parties, organizational reform, and subnational governance in Southeast Asia, with particular focus on Malaysia and Singapore. Her current research projects include studies focused on “money politics” and on democratic representation and political elites in Southeast Asia, as well as a monograph on Malaysian sociopolitical development.

In their conversation, Wright and Weiss addressed issues including the implications of current political trends in Southeast Asia for supporting or dismantling systems for accountability or anti-corruption, China's role in enabling corruption, how an international media outlet like the Wall Street Journal was able to carry forward the 1MDB story, the role of investigative journalism in battling endemic corrupt practice, and how the shifting media landscape — especially in the context of social media, changes in media freedom around the world, and the rise of “fake news” — affect this role in shedding light on corruption.

“It’s very important that journalists don't become pulled into the latest political trend,” said Wright. “And it's a very difficult fine line to balance. I think investigative journalism is in trouble. By the way, journalists don't call themselves ‘investigative journalists’ — we are just journalists who do our work, and if we're lucky enough to come across a big story, then so be it. But you need bosses [like I had at the Journal], who give you the space to do that kind of work, even though you don't necessarily sell more newspapers and more online subscriptions because of it.”

A Higher Standard

There have been some positive changes following the lessons learned from the IMDB scandal, such as pilot projects in the United States and in London to stop cash purchases from shell companies. Yet it is still too easy to get around such measures, said Wright. He concluded the discussion on a rather somber note, recognizing that the prospects for large-scale change are not bright. “If you've lived and worked in Asia, you know you can shake a stick in any direction and you’ll find corruption. What I learned through the process of working on the 1MDB story was just how complicit foreign institutions are in all of this. I guess I had a naive view, thinking that they had a higher standard of behavior. What I learned was that they only have a higher standard of behavior when there are rules in place to stop them from behaving badly. Maybe things can change, but I don't feel so optimistic about it.”