Publication in Economics, Politics and Public Policy in East Asia and the Pacific

Aquino’s reform narrative falters

Author: Julio C. Teehankee, De La Salle University, Manila

Three members of the Philippine Senate have been arrested on charges of plunder for allegedly diverting part of their legislative pork barrel, formally known as the Priority Development Assistance Fund (PDAF), into fake NGOs. At first glance, the filing of plunder charges against veteran politico Juan Ponce Enrile and actors-turned-politicians Jose Ejercito Estrada and Ramon Revilla Jr might be seen as a slam dunk for the anti-corruption efforts of President Benigno Aquino III. Read more…

BRICS lay a foundation but will there be concrete action?

Author: Maria Theresa Anna Robles, RSIS

Unsurprisingly, the BRICS countries sixth annual summit in Brazil once again polarised public opinion. When the proposal for a BRICS development bank and currency swap arrangement was put forward in March 2012, the reaction was already divided. Some believed — including ‘rival’ international financial institutions (IFIs) such as the World Bank and the International Monetary Fund (IMF) — that there is room for such an institution to help meet developing countries’ massive investment needs. Others felt that, given the considerable economic and political differences, the feasibility of concerted action from the BRICS is limited. Read more…

Oil rig out, but still no happy ending

Author: Tung Nguyen, Diplomatic Academy of Vietnam

On 15 July, the Haiyang Shiyou 981 oil rig was removed from Vietnam’s claimed EEZ in the South China Sea. But this might not be the happy ending it appears to be. The way the crisis began and ended suggests that similar incidents will occur. The Chinese decision to place the rig in the area was unilateral. So was the decision to pull it out. It was made in the absence of an agreed solution between China and Vietnam and was accompanied by a claim touting the ‘success’ of the drilling operation, which occurred ‘well within China’s sovereignty’, according to China’s Ministry of Foreign Affairs spokesperson Hong Lei. Read more…

Australia, Japan take a ‘domino approach’ to regional integration

Author: Takashi Terada, Doshisha University

The recently signed Australia–Japan economic partnership agreement (EPA) is an example of the dynamic domino effect of regional trade and investment. This is where the benefits an FTA brings to one country, such as eliminating tariffs, generally disadvantages a third country not included in the agreement. This third party is thereby pressured to engage in seeking FTAs of their own. Australia’s regional integration strategy has adjusted itself well to this environment — in which big economies, each with different rules and ambitions, struggle with each other for trade advantages. Read more…

What happens in China, doesn’t stay in China

Author: Yizhe Daniel Xie, Waseda University

The experience that Chinese leaders gain in domestic politics has a big impact on how they view and handle international issues. Many China watchers and political analysts often overlook these domestic roots of Chinese foreign policy, particularly in China’s push to reform the international financial system. Read more…

Abe’s aid reform, in the name of peace?

Author: Fumitaka Furuoka, University of Malaya

On 26 June 2014, a panel of specialists under Japanese foreign minister Fumio Kishida submitted a report that recommended transforming Japan’s foreign aid policy into a ‘strategic’ diplomatic tool. Based on the panel’s recommendations, Prime Minister Shinzo Abe has begun the process of revising the fundamental guidelines of Japan’s official development assistance (ODA). This process is to be completed before the end of this year. Read more…

Jokowi saves Indonesia’s democracy (and maybe Southeast Asia’s too)

Author: Thitinan Pongsudhirak, Chulalongkorn University

Many years from now, the electoral victory of Indonesia’s president-elect Joko Widodo (Jokowi) may be seen as pivotal to the fate of democracy and regionalism in Southeast Asia. A win by Jokowi’s opponent Prabowo Subianto would have been a retrograde step for Indonesia, promising shades of authoritarianism even with a popular mandate. Jokowi’s victory, on the other hand, bodes well not just for Indonesia’s future but also for the region’s democratic prospects and ASEAN’s forward momentum. Read more…

Japan’s search for a new regional vision

Author: Peter Drysdale, Editor, East Asia Forum

To many inside and outside Japan, Japanese prime minister Shinzo Abe brings both hope and a breath of fresh air to an economy and society that has been in relative retreat in recent times. Abenomics, with its enthusiastic adoption of unconventional monetary policy under the skilful leadership of Haruhiko Kuroda at the Bank of Japan, its commitment to continuing fiscal stimulus and its promise, as yet not fulsomely delivered, of deep structural reform — is just the mix of tonics that the Japanese economy needs. Read more…

China’s response to Japan’s constitutional reinterpretation

Author: Amy King, ANU

On 1 July 2014, Japan’s Abe government announced a major change to the country’s post-war security policy by effectively lifting the ban on collective self-defence. The Abe government introduced new legislation that reinterpreted Article 9 of the Japanese Constitution, thereby permitting Japan to use military force to come to the aid of an ally or a country in a close relationship with Japan when it is under armed attack. Read more…

Forging a common regional approach to China

Author: Hitoshi Tanaka, JCIE

Despite China’s rapid and unprecedented economic growth, the world has yet to come to grips with the challenges and opportunities that the country presents. The story of China’s rise is as much about how the rest of the world responds to China as it is about the nation that China is growing to become. Read more…

Abe strikes a delicate balance in Australia

Author: Thomas U. Berger, Boston University

Today, Japan finds itself in a remarkably difficult diplomatic and domestic political situation. While Japan continues to be secure from any existing external threat, the rise of a nuclear North Korea and an increasingly powerful and assertive China are creating major challenges for Japanese security policy. Read more…

Modi should use future budgets to build, build, build

Author: Geethanjali Nataraj, Observer Research Foundation

Expectations of the Modi government’s first budget were high. But, in the face of difficult fiscal circumstances and volatility in oil and food prices, the new government and Finance Minister Arun Jaitley had limited options. Seen in this light, this year’s budget is balanced and gives a sense of direction to the economy. In fact, it has laid the base for a whole set of reform measures that will be put into the place around the next budget. Read more…

East Asia’s geostrategic equation and Japan’s collective self-defence

Authors: John Blaxland, ANU and Rikki Kersten, Murdoch University

Given that Japan is a mature democracy and has been a positive force for global peace and stability for the past 70 years, why is it so controversial that the country wants to possess more ‘normal’ military capabilities? Read more…

Lessons from aid workers in North Korea

Author: Eun Jeong Soh, ANU

Since the mid-1990s, various governmental and non-governmental organisations have delivered aid to North Korea’s orphanages and hospitals. But for some time now aid to North Korea has dwindled. The US has provided virtually no aid since 2009, South Korea has banned direct state aid and and limited private assistance since 2010, and UN World Food Programme operations have been running well below target levels. Read more…

China’s SOEs test the waters in the South China Sea

Authors: Megan Bowman, George Gilligan and Justin O’Brien, UNSW

In early May, the Chinese HYSY-981 oil rig was moved into waters near the disputed Paracel Islands in the South China Sea. The oil rig is owned by the state-owned China National Offshore Oil Corporation (CNOOC) and operated by its subsidiary China Oilfield Services Limited. It was redeployed with Beijing’s approval to drill for another state-owned corporation, China National Petroleum Corporation (CNPC). The rig was deployed 120 nautical miles from Vietnam’s coastline and within Vietnam’s claimed exclusive economic zone. Conflict ensued between Vietnamese and Chinese sea-faring vessels and between citizens of both nations on Vietnamese soil. Read more…