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The purpose of this executive summary is to provide a concise statement about what we have learned about investment into China's rural environment. The overall purpose is to help the Bank understand what is happening in rural China, what farmer's are thinking about the current trends and what they are hoping will happen in the future (if they had a say). One of the most important questions is answer what should the role of the state be.

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Scott Rozelle
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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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Gi-Wook Shin
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The alliance between the Republic of Korea and the United States has been facing new pressures in recent months. Leaders in Washington and Seoul are visibly out of synch in their response to the escalatory actions of North Korea, beginning with the July 4 missile tests and leading to the October 9 nuclear explosion. South Korean leaders seem more concerned with the danger that Washington may instigate conflict than they are with North Korea's profoundly provocative acts. American officials increasingly see Seoul as irrelevant to any possible solution to the problem. Officials on both sides valiantly try to find areas of agreement and to paper over differences. If attempts to restart the six-party talks on North Korea falter again, it is likely this divide will resurface.

There is a tendency on both sides of the Pacific to overdraw a portrait of an alliance on the verge of collapse. Crises in the U.S.-ROK alliance are hardly new. As I have written elsewhere, there never was a "golden age" in our alliance that was free from tension. Korean discomfort with an alliance founded on dependency and American unease with Korean nationalism has been a constant since the early days of this relationship. Clashes over how to respond to North Korea have been a staple of the alliance since its earliest days.

Korean-American relations today are much deeper than at the inception of this alliance. Our interests are intertwined on many fronts, not least as major players in the global economic and trading system. We share fundamental values as democratic societies, built on the rule of law and the free flow of ideas. There is a large, and growing, contact between our two peoples, from trade and tourism to immigration.

The current situation is worrisome however because it threatens the security system that lies at the foundation of the alliance. Though our interests are now far broader, the U.S.-ROK alliance remains military in nature. The founding document of this alliance was the

Mutual Defense Treaty signed on October 1, 1953, following the conclusion of the armistice pact to halt the Korean War. That treaty has been significantly modified only once - 28 years ago in response to American plans to withdraw its ground forces from Korea - to create the Korea-U.S. Combined Forces Command (CFC).

The two militaries have a vital legacy of decades of combined command, training and war planning. American military forces in significant numbers have remained in place to help defend South Korea from potential aggression from the North. South Korean troops have deployed abroad numerous times in support of American foreign policy goals, including currently in Iraq and Afghanistan.

This foundation of security is not only essential to this alliance but is the very definition of the nature of alliances in general, as distinct from other forms of cooperation and partnership in international relations.

"Alliances are binding, durable security commitments between two or more nations," Dr. Elizabeth Sherwood-Randall, a Stanford scholar and former Clinton administration senior defense official, wrote recently. "The critical ingredients of a meaningful alliance are the shared recognition of common threats and a pledge to take action to counter them. To forge agreement, an alliance requires ongoing policy consultations that continually set expectations for allied behavior."

Alliances can survive a redefinition of the common threat that faces them but not the absence of a threat. Nor can alliances endure if there is not a clear sense of the mutual obligations the partners have to each other, from mutual defense to joint actions against a perceived danger. "At a minimum," Sherwood-Randall says, "allies are expected to take into consideration the perspectives and interests of their partners as they make foreign and defense policy choices."

By this definition, the U.S.-ROK alliance is in need of a profound re-examination.

The 'shared recognition' of a common threat from North Korea that was at the core of the alliance is badly tattered. As a consequence, there is no real agreement on what actions are needed to counter that threat.

There is a troubling lack of will on both sides to engage in policy consultations that involve an understanding of the interests and views of both sides, much less setting clear expectations for allied behavior. Major decisions such as the phasing out of the CFC have been made without adequate discussion.

Americans and Koreans need, in effect, to re-imagine our alliance. We should do so with the understanding that there is still substantial popular support for this alliance, despite conventional wisdom to the contrary. The problems of alliance support may lie more in policy-making elites in both countries than in the general public. That suggests that a concerted effort to reinvigorate the alliance will find public backing.

The results of the Chicago Council on Global Affairs 2006 multinational survey of public opinion show ongoing strong support for the American military presence in South Korea. Some 62 percent of Koreans believe U.S. troop levels are either about right or too few; some 52 percent of Americans share that view. A slightly larger percentage of Americans - 42 percent compared to 36 percent of Koreans - think there are too many U.S. troops. Along the same vein, 65 percent of Americans and 84 percent of Koreans favor the U.S. providing military forces, together with other countries, in a United Nations-sponsored effort to turn back a North Korean attack.

The crack in the alliance comes over the perception of threat from North Korea.

While some 79 percent of Koreans feel at least "a bit" threatened by the possibility of North Korea becoming a nuclear power, only 30 percent say they are "very" threatened. Fewer Koreans feel the peninsula will be a source of conflict than the number of Americans. More significantly, nuclear proliferation is viewed as a critical threat by 69 percent of Americans, compared to only half of Koreans (interestingly, Chinese are even less concerned about this danger).

The opinion poll was conducted before the nuclear test so it is difficult to judge the impact of that event. These survey results do clearly indicate however that while the security alliance still has support, there is an urgent need for deep discussion, at all levels, about the nature of the threat.

The crisis that faced the NATO alliance in the wake of the end of the Cold War has some instructive value for Koreans and Americans today. At the beginning of 1990, I was sent by my newspaper, the Christian Science Monitor, from Tokyo, where I had been covering Japan and Korea since the mid-1980s, to Moscow. The Berlin Wall had fallen a few months earlier and the prospect of the end of a half-century of Cold War in Europe was in the air. However, I dont believe anyone, certainly not myself, anticipated the astounding pace or scale of change that took place within just two years.

Within less than a year, in October of 1990, West and East Germany were reunited.

The once-mighty Soviet empire in Eastern Europe disintegrated almost overnight. By July of 1991, the Warsaw Pact had come to an end. Perhaps most astounding of all - not least to officials of the administration of George H.W. Bush - the Soviet Union fell abruptly apart in December 1991.

These tectonic events triggered a debate about the future of the NATO alliance that had provided security to Europe since it was founded in April of 1949. Soviet leader Mikhail Gorbachev somewhat famously - and perhaps apocryphally - anticipated this debate. "We are going to do something terrible to you," he is said to have told Ronald Reagan. "We are going to deprive you of an enemy."

In those early days, the very continued existence of NATO was under active discussion. The Soviet leadership called for the creation of entirely new "pan-European" security structures that would replace both NATO and the Warsaw Pact. Some in Europe favored the European Union as a new vehicle for both economic integration of the former

Soviet empire into Europe, along with creating new European security forces that would supplant NATO's integrated command.

A more cautionary view argued for retaining NATO without change as a hedge against the revival of Russia as a military threat or the failure of democratic and market transformation in the former Soviet Union. American policymakers opted instead for the ambitious aim of expanding NATO membership to absorb, step by step, the former Soviet empire, including the newly freed western republics of the Soviet Union.

Along with expansion, the United States pushed NATO to redefine the "enemy." Americans argued that new threats to stability and security from ethnic conflict - and international terrorism - compelled NATO to "go out of area or out of business." NATO did so first in the Balkans, in Bosnia and Kosovo, though reluctantly. The alliance has moved even farther beyond Europe to Afghanistan, where NATO commands the international security forces. This draws upon the invaluable investment made in joint military command and operations that are the foundation of the alliance.

Certainly NATO's transformation is far from complete. As was evident at the most recent NATO summit in Riga, considerable differences of opinion remain between many European states and the United States over the mission of NATO. Europeans tend to still see NATO as an essentially defensive alliance, protecting the "euro-Atlantic" region against outside aggression, with an unspoken role as a hedge against uncertainties in Russia. They are resistant to continued American pressure for expansion - including a new U.S. proposal to move toward global partnership with countries such as Japan, South Korea and Australia.

But the reinvention of NATO after the Cold War provides some evidence that even when the nature of the threat has changed, security alliances can preserve a sense of common purpose.

A re-imagined U.S.-ROK alliance could draw from the NATO experience by including the following elements:

HEDGE - The alliance remains crucial as a 'hedge' against North Korean aggression, even if the dangers of an attack are considered significantly reduced. If North Korea retains its nuclear capability, that hedge will need to expand to include a shared doctrine of containment and deterrence, including making clear that the U.S. will retaliate against use of nuclear weapons, no matter where it takes place. Strategically the alliance is also a 'hedge' against Chinese ambitions to dominate East Asia and a guarantor of the existing balance of power;

EXPANSION - The alliance can reassert its vitality as the basis, along with the

U.S.-Japan security alliance, of an expanded multilateral security structure for

Northeast Asia;

NEW MISSIONS - The alliance should take on new missions, most importantly to participate in military and non-military counter-proliferation operations;

OUT OF AREA - A re-imagined alliance might formalize an "out of area" role, elevating the deployments of peacekeeping and other forces to Iraq and Afghanistan into more systematic joint global operations between the two militaries. In this regard, the participation of South Korea in a program of global partnership with NATO, most importantly in the area of joint training, merits serious discussion.

There is another alternative: South Korea and the United States can chose to bring their alliance to a close. If we cannot agree on the common threats that face us, this alliance cannot endure. What we should not do is to allow the alliance to drift from inattention into a deeper crisis that would only benefit our adversaries.

(This article is based on a presentation by the author to the 1st ROK-U.S. West Coast

Strategic Forum held in Seoul on Dec. 11-12, 2006).

This article appeared on the website of the Maureen and Mike Mansfield Foundation.

Reprinted with permission from the Maureen and Mike Mansfield Foundation.

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Agricultural economists sometimes have a choice of using either unit values or community prices when analysing food price policy. Unit values (ratios of household expenditure on a food to the quantity purchased), and community prices, which are enumerated from vendors in local markets, are both proxies for market prices. While it is believed that biases may result from the use of unit values, due especially to measurement error and quality effects, evidence on this issue is lacking. Even less is known about community prices. This paper provides empirical evidence that suggests that economists should exercise caution when using unit values as proxies for market prices. Community prices in our two case studies have a number of properties that make them more reliable in our two case study countries: Vietnam and Papua New Guinea. Price elasticities calculated from unit values provide poor approximations to those calculated with community prices. If the unit value-based (or community price-based) elasticities are biased, they may distort food policy analysis. In our study, the use of unit values (if wrong) could lead policy makers to decide to liberalize rice exports which could generate unexpected adverse nutritional consequences because price elasticities were understated.

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It is tempting to dismiss President Bush's travel through Southeast Asia as aimless floating by a doubly lame duck. Getting things done will be harder without either the right to run for a third term in 2008 or the support of a legislative majority between now and then. But if that means having to work with others, at home and abroad, these new limits could be a virtuous necessity -- an opportunity to shed his administration's my-way-or-the-highway image and reverse the squandering of American legitimacy and leverage around the world.

Asia is a good place to begin rebalancing U.S. foreign policy because it is huge, it is dynamic -- and it is not Iraq. The Asia Pacific Economic Cooperation summit that the president is attending in Vietnam this weekend includes leaders from 21 economies that jointly account for 56, 48, and 40 percent, respectively, of global GDP, trade and population. Since 1989, the forum's economies have grown 26 percent compared with 8 percent for the rest of the world. The Middle East looks trivial by comparison.

The Middle East also lacks a tradition of successful multilateral cooperation. But if the Arab League has accomplished little, Southeast Asia is an exemplar of regional harmony. Cynical observers may deride as mere "talk shops" the many overlapping frameworks that span or involve Southeast Asia. On its calendar of events in 2005 the Association of Southeast Asian Nations listed 612 meetings. But talking is better than fighting, and no two ASEAN members have made war on each other since the group was formed nearly 40 years ago.

Northeast Asia is another matter. There is no ANEAN -- no Association of Northeast Asian Nations. Mistrust among China, Japan and South Korea is still too deep. But North Korea's decision to rejoin the Six-Party Talks (among China, Japan, Russia, the two Koreas, and the United States) has revived the prospect that these conversations could evolve into a framework for broader security in Northeast Asia. Of the six, all but North Korea will attend the economic summit this weekend in Hanoi. On the sidelines of that event, President Bush and his delegation should discuss with these five counterparts a possible shared strategy on North Korea when the talks reconvene, probably in China later this year.

Another key goal for the president on this trip should be helping to revitalize APEC. The "Doha round" of global trade liberalization has run aground. Without a last-minute push, APEC's goals of "free trade" among advanced economies by 2010 and among developing ones by 2020 will not be met. Meanwhile, bilateral trade agreements among APEC members have proliferated. The result is a "noodle bowl" of inconsistent arrangements that may, on balance, divert as much trade as they create. There is, for example, no consistent definition of the "rules of origin" that determine which items benefit from lowered barriers and which do not. Without lowering the quality of all these many bilaterals to their lowest common denominator -- i.e., the least liberal arrangement any signatory will accept -- an effort should be made to link and standardize them so that trade flows are enlarged and not merely redirected.

This may seem like a non-starter. On Monday, the House of Representatives failed to approve permanent normal trade relations with Vietnam. And that was even before the newly elected and arguably more protectionist Democratic majority is seated in January. But progress can still be made in Vietnam.

An advantage of the Asia Pacific Economic Cooperation summit for the United States is that it includes both China and Taiwan, and excludes the repressive regime in Burma. But APEC's uniquely trans-Pacific character is a more important political reason for strengthening the grouping. 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.

The risk of gridlocked government should not keep the United States from seeking to deepen Asia-Pacific economic and political cooperation. The Bush administration may be a lame duck. But even a healthy duck needs a tranquil pond.

Donald K. Emmerson heads the Southeast Asia Forum in the Shorenstein Asia Pacific Research Center at Stanford University. He wrote this article for the Mercury News which was printed on Sunday, November 19, 2006. Reprinted with permission from the San Jose Mercury News.

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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)
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