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181. Economic Policy Reforms in South Asia: An Overview and the Remaining Agenda

Author:
Pradumna B. Rana and Wai-Mun Chia
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
In the past few years, the pace of economic growth in South Asia has slowed considerably for two reasons: unfavourable global economic environment and the slowing pace of economic reforms that once were the key drivers of the region’s dynamic economic performance and resilience. This paper focuses on the latter and following Rana (2011) and Rana and Hamid (1995), it argues that South Asian countries have not sequenced their reforms properly. The first round of reforms in South Asia that began in the 1980s and the early 1990s focused on macroeconomic reforms — monetary, fiscal, and exchange rate management, as well as reducing rigid government controls — which led to private sector driven economic growth. These should have been followed by the more microeconomic reforms — sectoral and the so-called “second generation” reforms to strengthen governance and institutions — to sustain the higher growth levels. But they were not and reforms ran out of steam because of, among others, lack of law and order, and corruption in the public sector. This paper finds a significant “governance gap” in South Asia that refers to how South Asia lags behind East Asia in terms of various governance indicators and how within South Asia some countries are ahead of others. The paper argues that in order to revive economic growth, South Asian countries must implement microeconomic reforms: it identifies the remaining policy agenda for each South Asian country. However, implementation of microeconomic reforms poses a difficult challenge as they require a wider consensus and political support and have a longer term focus. The recent election of Prime Minister Narendra Modi in India with a strong mandate for economic reform provides an environment of “cautious optimism” for all of South Asia.
Topic:
Governance, Reform, Global Political Economy, and Economic Development
Political Geography:
South Asia, India, and Asia

182. Reforming the Liability Regime for Air Pollution in India

Author:
Shibani Ghosh
Publication Date:
12-2015
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
The recent uproar about the toxic levels of pollution in the country’s national capital region has once again brought to fore the failure of the regulatory and legal mechanisms in India to control air pollution. Despite an early legislative acknowledgment of the issues relating to air pollution, and regulatory mechanisms set up consequently, India has not been able to restrict the sharp upward trajectory of air pollution. While several issues with regard to the legal and regulatory regime governing air quality in the country deserve serious and urgent consideration, this paper focuses on one issue in particular – the liability regime for violation of air quality standards. The paper is divided into three parts. The first part discusses the relevant provisions of the law pertaining to liability - civil and criminal - for causing air pollution. The second part identifies three critical issues that have emerged in the current liability regime: (1) the Pollution Control Boards do not have the power to levy penalties; (2) criminal prosecution is not an effective solution; and (3) the National Green Tribunal Act does not provide complete relief. The third and final part of the essay proposes a way forward. It is suggested that the Pollution Control Boards need to be granted additional enforcement powers, and administrative fines for violations should be introduced, albeit with certain conditions.
Topic:
Environment, Health, Governance, Law Enforcement, Law, Reform, and Pollution
Political Geography:
South Asia, India, and Asia

183. Full Issue: Money & War

Author:
Sarah Detzner, James Copnall, Alex de Waal, Ian M. Ralby, Joshua Stanton, Ibrahim Warde, Leon Whyte, Richard Weitz, Jessica Knight, John H. Maurer, Alexander Tabarrok, Alex Nowrasteh, Tom Keatinge, Emily Knowles, Karolina MacLachlan, Andrew Lebovich, Caroline Troein, and Anne Moulakis
Publication Date:
01-2015
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
The Fletcher Security Review: Managed and edited by students at the Fletcher School of Law and Diplomacy, we build on the Fletcher School’s strong traditions of combining scholarship with practice, fostering close interdisciplinary collaboration, and acting as a vehicle for groundbreaking discussion of international security. We believe that by leveraging these strengths – seeking input from established and up-and-coming scholars, practitioners, and analysts from around the world on topics deserving of greater attention – we can promote genuinely unique ways of looking at the future of security. Each issue of the Review is centered around a broad theme – in this issue, we tackle “Money & War.” Money influences every aspect of warfare, conventional or unconventional. No nationstate military, insurgent group, terrorist network, trans-national criminal organization, or hybrid actor can be understood, or countered, without knowing where the money is coming from – as well as where, and how, it gets spent. Evolutions and revolutions in financial tools and practices quickly translate to transformations in military affairs, and some cases, vice versa.
Topic:
Security, Foreign Policy, Economics, Human Rights, Governance, Sanctions, Military Affairs, Finance, Islamic State, Navy, Arab Spring, Maritime, Conflict, Multilateralism, Islamism, Drugs, and Currency
Political Geography:
Afghanistan, Africa, China, Iran, Sudan, Darfur, Middle East, Asia, North Korea, Mali, Asia-Pacific, Sahel, United States of America, and North America

184. Duffer’s Shoal: A Strategic Dream of the Pacific Command Area of Responsibility

Author:
Colonel Russell N. Bailey, Colonel (NZ) Christopher J. Parsons, Elizabeth R. Smith, Lieutenant Colonel J. O'Malley, Lieutenant Colonel Bob Dixon, and Ms. Laura McAleer
Publication Date:
08-2015
Content Type:
Working Paper
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
This strategic assessment seeks to go beyond a traditional comparative analysis of the military, technological, political, cultural, and economic factors governing the relationships and capabilities of the Asia Pacific environment. To make sense of the intrinsic complexities unique to this region, we endeavor to broaden our view and rely on a tool often overlooked in government studies: imagination. Moreover, we aim to offer a strategic document that is readable, instructive, and provocative. Pulling from a well-referenced piece of military teaching, this assessment borrows a learning concept first employed in 1904 by Major General Sir Ernest Dunlop Swinton in "The Defence of Duffer’s Drift." This fictional story describes the plight of young Lieutenant Backsight Forethought as he commands a 50-man platoon tasked to hold a tactically critical piece of land called Duffer’s Drift. The story unfolds in a series of six dreams, where the blunders of the unwitting lieutenant lead to disaster. As the dreams progress, he harnesses the lessons of each of his failures, and by applying these lessons, his platoon ultimately defends Duffer’s Drift.
Topic:
Military Strategy, Governance, and Military Affairs
Political Geography:
Asia and Asia-Pacific

185. Kyrgyzstan: An Uncertain Trajectory

Publication Date:
09-2015
Content Type:
Policy Brief
Institution:
International Crisis Group
Abstract:
Kyrgyzstan, Central Asia’s only even nominal parliamentary democracy, faces growing internal and external security challenges. Deep ethnic tensions, increased radicalisation in the region, uncertainty in Afghanistan and the possibility of a chaotic political succession in Uzbekistan are all likely to have serious repercussions for its stability. The risks are exacerbated by leadership failure to address major economic and political problems, including corruption and excessive Kyrgyz nationalism. Poverty is high, social services are in decline, and the economy depends on remittances from labour migrants. Few expect the 4 October parliamentary elections to deliver a reformist government. If the violent upheavals to which the state is vulnerable come to pass, instability could spread to regional neighbours, each of which has its own serious internal problems. The broader international community – not just the European Union (EU) and the U.S., but also Russia and China, should recognise the danger and proactively press the government to address the country’s domestic issues with a sense of urgency.
Topic:
Security, Politics, Governance, and Reform
Political Geography:
Asia and Kyrgyzstan

186. Concessions or Coercion? How Governments Respond to Restive Ethnic Minorities

Author:
Arman Grigoryan
Publication Date:
03-2015
Content Type:
Journal Article
Journal:
International Security
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Destabilized multiethnic states and empires are environments that are highly susceptible to violent ethnonationalist conflict. Conflicts between states built on the ruins of such empires and their minorities are especially common. James Fearon has famously argued that these conflicts are the result of minorities' rational incentives to rebel, which in turn are the result of newly independent states' inability to guarantee that these minorities will not be discriminated against if they acquiesce to citizenship, as well as expectations that over time the balance of power will shift against minorities as states consolidate their institutions. States can, however, take steps to reassure their minorities. The puzzle is why they often fail to do so. In fact, states often adopt policies that confirm minorities' worst fears, pushing them toward rebellion. Such action may be precipitated by a state's belief that a minority is motivated by a separatist agenda rather than by the desire to have its concerns and grievances satisfactorily addressed. If secession is a minority's primary objective, then concessions intended to demobilize the minority will only make the state more vulnerable to future demands and separatist bids. The existence of third parties with incentives to support minority separatism exacerbates the problem. The violent and nonviolent minority disputes in post-Soviet Georgia illustrate these findings.
Topic:
Ethnic Government, Governance, Ethnicity, and Domestic Politics
Political Geography:
Europe, Asia, Georgia, and Global Focus

187. Government Connections and Financial Constraints: Evidence from a Large Representative Sample of Chinese Firms

Author:
Robert Cull, Bo Sun, and Lixin Colin Xu
Publication Date:
01-2015
Content Type:
Commentary and Analysis
Institution:
Board of Governors of the Federal Reserve System
Abstract:
We examine the role of firms’ government connections, defined by government intervention in CEO appointment and the status of state ownership, in determining the severity of financial constraints faced by Chinese firms. We demonstrate that government connections are associated with substantially less severe financial constraints (i.e., less reliance on internal cash flows to fund investment), and that the sensitivity of investment to internal cash flows is higher for firms that report greater obstacles to obtaining external funds. We also find that those large non-state firms with weak government connections, likely the engine for innovation in the coming years in China, are especially financially constrained, due perhaps to the formidable hold that their state rivals have on financial resources after the ‘grabbing-the-big-and-letting-go-the-small’ privatization program in China. Our empirical results suggest that government connections play an important role in explaining Chinese firms’ financing conditions, and provide further evidence on the nature of the misallocation of credit by China’s dominant state-owned banks.
Topic:
Privatization, Governance, Business, Fiscal Policy, Innovation, and Banking
Political Geography:
China and Asia

188. US-Japan Relations: Strategic Alignment

Author:
Michael J. Green and Nicholas Szechenyi
Publication Date:
05-2015
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
Benefiting from a window of political stability, the Abe government continued to focus on the twin pillars of economic strategy and defense policy reform. Bilateral engagement on security, trade, and regional and global issues informed the agenda for the prime minister’s official visit to Washington in late April, the first by a Japanese leader in nine years. Abe also became the first Japanese leader to address a joint session of Congress and relayed the main themes from his summit with President Obama by reflecting on the 70th anniversary of the end of World War II, celebrating the evolution of the US-Japan alliance, and outlining a strategic vision for the future.
Topic:
Security, Diplomacy, International Cooperation, International Trade and Finance, Bilateral Relations, Governance, and Political stability
Political Geography:
Japan, Asia, North America, and United States of America

189. Facing US-led Resistance in the South China Sea

Author:
Chin-Hao Huang and Robert G. Sutter
Publication Date:
09-2015
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
China has made significant gains in advancing control in the South China Sea. Its bold tactics involving massive dredging and rapid construction, shows of military force, deployments of its Coast Guard fleet, and movement of massed fishing vessels and large oil rigs warned of China’s power and determination to have its way. Apart from the Philippines and Vietnam, China’s Southeast Asian neighbors have adopted a low posture on the advances. Nevertheless, US rhetoric has become increasingly strident and it has deployed military forces. Japan and Australia also took steps to counter the Chinese moves. Malaysia, this year’s ASEAN chair, allowed a full discussion of the South China Sea disputes at the ASEAN foreign ministerial meetings in August. Placed on the defensive, Beijing offered words of reassurance and conciliation, emphasizing common interests with ASEAN and the US in peaceful economic development and other areas. But these tactics may have limited impact outside China. Apart from the Philippines and Vietnam, China’s Southeast Asian neighbors have adopted a low posture on the advances. ASEAN has generally eschewed explicit criticism of China’s behavior. Nevertheless, US rhetoric has become increasingly strident and it has deployed military forces in opposition to China’s behavior, reaching a high point in tension over the summer. US allies Japan and Australia also took steps to counter the Chinese moves. Malaysia, this year’s ASEAN chair, went against China in allowing a full discussion of the South China Sea disputes at the various ASEAN foreign ministerial meetings in August. Placed on the defensive and seeking to avoid further deterioration in relations with Southeast Asia and the United States, Beijing offered words of reassurance and conciliation, emphasizing common interests with ASEAN and the US in peaceful economic development and other areas. Such soft tactics have questionable credibility outside China; they have been tried in the past two years with little meaningful impact on China’s determination to advance control in the South China Sea.
Topic:
Military Strategy, Territorial Disputes, Governance, Leadership, and Conflict
Political Geography:
China, Asia, and South China Sea

190. KMT Disarray Shapes Campaign

Author:
David G. Brown and Kevin Scott
Publication Date:
09-2015
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
The Kuomintang (KMT) Party’s mismanagement of the selection of its presidential candidate has left the party in disarray and increased the prospect that Democratic Progressive Party (DPP) candidate Tsai Ing-wen will win the presidency along with a majority in the Legislative Yuan (LY) elections. Faced with the prospect of DPP victories, Beijing has sent mixed messages to Taiwan, while voicing its confidence in preserving the accomplishments of the peaceful development policy for the long-term. Against this background, the Ma administration and Beijing have struggled to keep cross-strait relations moving forward.
Topic:
Development, Governance, Elections, Leadership, Partisanship, and Campaigning
Political Geography:
China, Taiwan, and Asia