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6161. Energy insecurity: China, India and Middle East oil

Author:
Anthony Bubalo and Mark P Thirlwell
Publication Date:
12-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
The rapid expansion of their economies has seen China and India become voracious consumers of energy. Oil, much of it imported from the Middle East, has become an increasingly important part of their energy needs. Both governments are conscious that this growing reliance on one of the world's most unstable regions leaves their countries vulnerable to supply disruptions and/or price fluctuations. As a result, energy security has become a key foreign policy objective and, particularly in the case of China, is shaping their approach to the Middle East. This issues brief provides an overview of current energy demand trends and raises for discussion some of the potential longer term strategic implications of this growing dependence on Mid-East oil.
Topic:
Energy Policy
Political Geography:
China, Middle East, India, and Asia

6162. The 'Khmer Islam' community in Cambodia and its foreign patrons

Author:
Milton Osborne
Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
Apart from brief references to the arrest in May 2003 of suspected members of Jemaah Islamiyah in Phnom Penh and the later revelation that Hambali (Riduan Isamuddin) had spent six months in Cambodia before being captured in Thailand, the international media have paid little attention to Cambodia's 'indigenous' Islamic community, the Khmer Islam (Islamic Cambodians), numbering around 500,000 in a total population of 12-13 million. Generally described as 'Chams', the majority are the descendants of immigrants from the once-powerful kingdom of Champa located on the central coast of modern Vietnam. But Cambodia's Islamic community also includes the descendants of Malay settlers, perhaps 15% of the total. Members of this latter group are known as Chvea. For the most part living apart from the ethnic Cambodian population both during colonial times (1863-1953) and following independence, the Khmer Islam community played little part in politics. During the Pol Pot regime (1975-79) members of the community suffered grievously, with an estimated 90,000 dying from executions, overwork and hunger and disease out of a total of250,000. Following the fall of Pol Pot the position of the Cambodian Islamic community has attracted the interest of co-religionists in the Middle East and Southeast Asia who have contributed substantial funds for the construction of mosques, the support of Koranic schools and financing of participation in the haj. At the same time there has been a substantial growth in the interchange between members of the Khmer Islam community and fellow Muslims in southem Thailand and Malaysia. Overall, the community remains generally poor and disadvantaged and so potentially unlnerable to external influences.
Topic:
International Relations and Religion
Political Geography:
Middle East, Cambodia, and Southeast Asia

6163. Bush is from Mars, Kerry is from Mars too: The Presidential Election and U.S. Foreign Policy

Author:
Michael Fullilove
Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
According to polling commissioned by the Lowy Institute, twice as many Australians think that US foreign policy is on the wrong track as think it is on the right track. Many observers argue that the direction of American policy will vary greatly depending on the outcome of the presidential election. Certainly, there are significant differences in style and substance between the two candidates, George W. Bush and John F. Kerry. However the similarities are as striking as the differences. External challenges, in particular the Iraq war and the war against terrorism, and internal pressures have combined to produce something of a convergence between the outlooks of foreign policy makers in both parties. In the event of a Bush victory, the failure of its foreign policy adventurism in the first term would probably make for a more centrist policy in the second term. In the event of a Kerry victory, the realities of the international system and the probable Republican control of the Senate would do the same. Whomever is elected, America is likely to pursue an assertive foreign policy involving the use of military force; there will less gleeful unilateralism and steroid-fuelled pre-emption than we have seen in the past four years, but it will still be a world away from the kind of strategy many observers are anticipating. From Australia's perspective, the fundamentals of our alliance with the US will ensure that it endures regardless of the result on 0 November. However the temperature of the relationship would probably be affected by a Kerry win. Given the task the senator has set himself of strengthening links with allied capitals, the relationship with Canberra would likely be less of a priority for him than for President Bush. On the other hand, the election of a new face in Washington would make other aspects of Australia's diplomatic life easier.
Topic:
Foreign Policy, Government, and Politics
Political Geography:
United States, America, and Australia

6164. Transpacific trade imbalances: causes and cures

Author:
Warwick McKibbin, Park Yung Chul, and Jong-Wha Lee
Publication Date:
09-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
This paper explores the causes of the transpacific trade imbalances using an empirical global model. It also evaluates the impact of various policies to reduce these imbalances. We find the fundamental cause of trade imbalances since 1997 is changes in saving-investment gaps, attributed to the surge of the U.S fiscal deficits and the decline of East Asia's private investment after the 1997 financial crisis. Our simulation results show that a revaluation of East Asia's exchange rates by 10 percent (effectively a shift in monetary policy) cannot resolve the imbalances. We find East Asia's concerted efforts to stimulate aggregate demand can have significant impacts on trade balances globally, but the impact on the US trade balance is not large. US fiscal contraction is estimated to have large impacts on the US trade position overall and on the bilateral trade balances with East Asian economies. These results suggest that in order to improve the transpacific imbalance, macroeconomic adjustment will need to be made on both sides of the Pacific. lowy institute for international policy.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Israel and East Asia

6165. The Beijing 2008 Olympic Games: China in the limelight

Author:
John Bowan
Publication Date:
08-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
Beijing's successful bid for the 2008 Olympic Games gives China a unique opportunity to signal its emergence as a leading player in the mainstream of international affairs. The Games will provide a unique opportunity to showcase to the international public, as well as to foreign governments and international business, China's technical and organisational capabilities, its cultural and social achievements, and its standing and potential as a global economic power and partner. The ongoing strong commitment to the Games by the national Government, and the rapid and efficient progress made to date by the Beijing Olympic organisers, are impressive; from a technical point of view, China's challenging Olympic project is on track. The Games will make some limited contribution to the extraordinary economic and technological development China is making, particularly in environmental protection. Similarly, the Games have the potential to make some incremental contribution to improving human rights in China. Their significance as a force for change in this area should not be overestimated, however, and the evidence is that the Olympic influence on China's human rights has so far been limited. Despite the good cooperation at the Olympic level that has developed between China and Taiwan in recent years, the hosting of the Games would not stand in the way of drastic action by China if Taiwan pursued independence beyond the limits of its tolerance. Australia's cooperative Olympic links with China, developed during Beijing's bid, add a valuable dimension to the strong and important relationship between the two countries.
Topic:
International Relations, Civil Society, and Development
Political Geography:
China and Asia

6166. Israel's withdrawal from Gaza: a role for Australia?

Author:
Anthony Bubalo
Publication Date:
05-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
Despite its defeat in a Likud Party referendum on 2 May, Israeli Prime Minister Ariel Sharon's proposal for a unilateral withdrawal from settlements and military positions in the Gaza Strip remains very much on the Israeli national agenda. For Sharon a withdrawal would help shorten Israel's security lines, block any alternate diplomatic initiatives being forced on Israel and win important policy changes in US positions on the Israeli-Palestinian conflict. Indeed despite Palestinian suspicions about the proposal, an Israeli withdrawal from Gaza could, if executed in an orderly and coordinated fashion, ultimately help reinvigorate a moribund peace process. There remain, however, a number of questions surrounding the plan, not least of which is whom Israel would coordinate any pull-out with, and who or what would fill any political and security vacuum left by Israel's withdrawal. Solving both sets of problems is likely to require some form of international intervention. If this occurs Australia would probably find itself on a short list of countries who would both be capable of contributing to such a sensitive and complex mission and whose membership of such a force would be acceptable to Israel, the Palestinians and the United States.
Topic:
Conflict Resolution and Peace Studies
Political Geography:
United States, Middle East, and Australia/Pacific

6167. Election Watch: Japan — Japan's party system: shifting the political axis, releasing economic reform

Author:
Malcolm Cook
Publication Date:
02-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
Changes in Japan's party system offer new hope for Japan's long-delayed economic reform as the axis of voting power accelerated its shift to the urban areas. The upcoming Upper House1 elections will provide another opportunity to see how far these changes have come and how permanent they are. The Liberal Democratic Party (LDP) has dominated post-war Japanese politics due to the party's overwhelming support in Japan's declining rural areas. The LDP's iron grip on the rural vote has created and been maintained by a nexus of interests between LDP politicians, favoured construction companies and rural voters. This rural public works "glue" has been one of the main reasons the Japanese government has been unable to address its drastically declining fiscal position. The political power of Japan's small farming sector also explains why Japan's bilateral and multilateral free trade diplomacy has not progressed. The November 9 Lower House election results and the rise of a real alternative to the LDP promise to help Prime Minister Koizumi's three-year fight to "modernise" the LDP and make it more appealing to urban and younger voters. November 9's results also suggest that if Koizumi loses this intra-LDP battle, then in the next Lower House elections the LDP will lose. So whether Koizumi is successful or not, economic reform chances in Japan have been boosted. Australia's largest trading partner is better placed for free trade talks bilaterally and globally and to address its worrying fiscal situation, the largest threat looming over Japan's future prosperity.
Topic:
Development, Economics, and Politics
Political Geography:
Japan, Israel, East Asia, and Australia

6168. The Australia-United States Free Trade Agreement: a preliminary assessment

Author:
Mark P Thirlwell
Publication Date:
02-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
On 8 February Australian Trade Minister Mark Vaile concluded an agreed text for an Australia-United States Free Trade Agreement. This Issues Brief provides a preliminary assessment of the agreement, based on the limited information now available.
Topic:
Economics, International Trade and Finance, and Treaties and Agreements
Political Geography:
United States, Australia, and Australia/Pacific

6169. The international economy in 2003: managing economic imbalances in an integrated world

Author:
Mark P Thirlwell
Publication Date:
02-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
This Issues Brief suggests that a key theme over the past year has been the management of external imbalances in a world economy that is not only increasingly integrated but which is simultaneously undergoing a sustained geographic shift in the distribution of economic weight towards Asia. Using this theme as an organising principle, it reviews several major economic developments including US current account adjustment, international exchange rate adjustment in response to that process, growing Sino-US trade tensions, the increasing focus on international outsourcing and the stresses facing the current multilateral trading round. The Brief concludes by arguing that many of these same themes will influence international economic prospects over the coming year.
Topic:
Economics, Globalization, and International Trade and Finance
Political Geography:
Asia

6170. What Kind of Landing for the Chinese Economy?

Author:
Nicholas R. Lardy and Morris Goldstein
Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Rarely has the outlook for the Chinese economy been so contested. The financial press widely quotes three alternative perspectives on the short-and medium-term outlook. One school argues that the Chinese government's recent efforts to rein in overly rapid growth are working and that the economy is now on a glide path to what is referred to as a soft landing. While “soft landing” is usually not fully defined, its chief feature in this case is that Chinese economic growth slows modestly from its current pace of 9 to 10 percent to around 8 percent and that the rate of job creation does not slow enough to constitute a major political challenge for the regime. At the other end of the spectrum is the hard landing school, which argues that the authorities to date have not tightened sufficiently, that loan and investment growth remain excessive, and that the authorities soon will be forced to take more drastic action that will trigger a sharp correction. Finally, the no landing school argues that China's efforts to slow growth modestly are misguided since the economy was not overheating in 2003 and early 2004. In this view, China is in the early stages of a secular boom that has several additional years to run.
Topic:
Economics and Political Economy
Political Geography:
China and Asia