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1421. Developments in and Obstacles to the US Pivot to Asia: What Alternatives for Europe?

Author:
Alessandro Riccardo Ungaro
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The new US strategic guidance released in January 2012 represents a hallmark of US President Barack Obama's foreign policy and forms integral part of the so-called “Pivot to Asia”. However, rather than a radical departure from the past, the strategic guidance represents an evolution and extension of US foreign policy towards the region, envisaging the reallocation of American military assets from Europe to the Asia-Pacific. The implementation of the guidance strategy is a long-term and complex process: several challenges, tensions and frictions between the US and regional actors may hamper the implementation of the policy and will require a delicate balancing act in which China will play a key role. On the European side, the US shift should be seen as an opportunity to review the European Security Strategy and elaborate its own strategy towards Asia.
Topic:
Foreign Policy, Defense Policy, and International Security
Political Geography:
United States, China, America, Europe, Israel, and Asia

1422. The EU's and China's institutional diplomacy in the field of climate change

Author:
Pietro De Matteis
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
European Union Institute for Security Studies
Abstract:
This Occasional Paper aims at providing a new perspective on the relevance of climate change for the EU's external action. Considering its linkages with various areas such as energy security, economic growth and diplomacy, and indeed its importance in terms of future political stability, climate change is a major 'game-changer' in international relations. The issue of climate change, and how to deal with it, therefore presents governments with a significant opportunity to reshape the international order in the light of the major global transformations currently underway. The development of the climate change regime presents the EU with both an opportunity and a threat, in as much as it may either accelerate Europe's decline as a foreign policy actor or, on the contrary, reinvigorate its diplomatic ambitions.
Topic:
Climate Change, Development, Diplomacy, Environment, and Industrial Policy
Political Geography:
China, Europe, and Asia

1423. Freeing the Global Market: How to Boost the Economy by Curbing Regulatory Distortions

Author:
Shanker A. Singham
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
The U.S. economy faces major challenges competing internationally. One of the most worrisome is the growing use in China and other advanced developing countries of anticompetitive market distortions (ACMDs)—including regulatory protection that privileges specific companies—which put foreign competitors at a disadvantage. ACMDs are government actions that give certain business interests artificial competitive advantages over their rivals, be they foreign or domestic, to the detriment of consumer welfare. These market distortions are especially damaging to the industries in which the United States enjoys the greatest comparative advantages, but they are also harmful to the long-term prosperity of developing economies and cost the global economy trillions of dollars. To combat ACMDs, the conventional trade policy approach of focusing on the The U.S. economy faces major challenges competing internationally. One of the most worrisome is the growing use in China and other advanced developing countries of anticompetitive market distortions (ACMDs)—including regulatory protection that privileges specific companies—which put foreign competitors at a disadvantage.1 ACMDs are government actions that give certain business interests artificial competitive advantages over their rivals, be they foreign or domestic, to the detriment of consumer welfare. These market distortions are especially damaging to the industries in which the United States enjoys the greatest comparative advantages, but they are also harmful to the long-term prosperity of developing economies and cost the global economy trillions of dollars.
Topic:
Economics, Emerging Markets, Globalization, International Trade and Finance, and Markets
Political Geography:
Russia, United States, China, India, and Brazil

1424. The Sino-Vietnamese Standoff in the South China Sea

Author:
John D. Ciorciari and Jessica Chen Weiss
Publication Date:
03-2012
Content Type:
Journal Article
Journal:
Georgetown Journal of International Affairs
Institution:
Georgetown Journal of International Affairs
Abstract:
The past summer was a tempestuous one for Sino-Vietnamese relations. In May and June 2011, Vietnam accused China of deliberately cutting the cables of oil exploration vessels in the western Spratly Islands, calling the second incident a “premeditated and carefully calculated” attack. China responded by accusing Vietnam of “gravely violating” its sovereignty by conducting “invasive activities.” Both sides flexed their muscles by holding naval exercises in the disputed area, and Chinese state-owned media warned Vietnam of possible military “counterstrikes.” In July, Vietnam reported that Chinese forces beat a Vietnamese fishing captain and drove his ship out of disputed waters. In Hanoi and Ho Chih Minh City, protesters vented anger at China in a series of rare public demonstrations. Tensions arguably reached their most dangerous level since the two former Cold War adversaries normalized relations in 1991. Both China and Vietnam have sought to mobilize diplomatic support abroad and manage rising nationalism at home. Vietnam has been more successful at courting international support, but in broadcasting its grievances it has aroused nationalist forces at home and abroad that could jeopardize a negotiated solution. China is also constrained, criticized for its “assertive” behavior abroad while facing domestic demands to take a harder line. Both states recently agreed to return to the negotiating table, but they remain far apart on questions of territorial sovereignty, and the dispute continues to feed into powerful currents of nationalism and popular frustration in both countries. These domestic forces exacerbate the difficult task of forging a peaceful resolution to the complex multi-party dispute in the South China Sea.
Topic:
Cold War
Political Geography:
China

1425. The United States' First Brain Drain

Author:
Vivek Wadhwa
Publication Date:
03-2012
Content Type:
Journal Article
Journal:
Georgetown Journal of International Affairs
Institution:
Georgetown Journal of International Affairs
Abstract:
Given the poor health of its economy and the rise of competitors like China and India, the United States needs high-skilled immigrants more than ever. After all, it is these immigrants who have fueled the country's technology boom and boosted its global advantage. Yet, American political leaders are so deeply embroiled in debates about the plight of low-skilled workers who have entered the country illegally, that immigration itself has become a political quagmire. There is a complete stalemate on immigration reform. Meanwhile, the number of high-skilled immigrants in the United States who are waiting to gain legal permanent residence now exceeds one million. The wait time for new immigrants from India in this category is now estimated to be seventy years. The result is that fewer high-skilled workers are coming to the United States, and the country is experiencing its first brain drain. The economic growth that could be taking place in the United States is now occurring in India and China. Consider that of all engineering and technology companies established in the United States between 1995 and 2005, 25.3 percent had at least one immigrant as a key founder. In Silicon Valley, this proportion was 52.4 percent. More than half of these founders initially came to the United States to study. Very few, 1.6 percent, came for the sole purpose of starting a company. They typically founded companies after working and residing in the United States for an average of thirteen years. This means that with the backlog of skilled workers waiting for legal permanent residence today, immigrants who would be starting companies are instead caught in “immigration limbo.” The temporary work visas these immigrants hold actually restrict them from working for the companies they start.
Political Geography:
United States, China, America, and India

1426. Is China's outward investment in oil a global security concern?

Author:
Ilan Alon and Aleh Cherp
Publication Date:
10-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The motivations prompting China's dramatic increase in outward foreign direct investment (OFDI) are not always clear, especially regarding OFDI by state-owned enterprises (SOEs) in energy and natural resources. First, both commercial and governmental interests are intertwined, although not necessarily in lock-step. Chinese SOEs listed in the West may worry about the reputational risks to their global corporate citizenship, while government stakeholders may instead focus on diplomatic international relations. Second, subsidies for oil investments may be viewed as serving Chinese national interests and threatening the national security of the host countries. Whether China's OFDI will benefit or harm global energy security, economic development and diplomatic relations is still hotly contested.
Topic:
Economics, Emerging Markets, Energy Policy, International Trade and Finance, Oil, and Foreign Direct Investment
Political Geography:
China

1427. A new economic nationalism? Lessons from the PotashCorp decision in Canada

Author:
Sandy Walker
Publication Date:
08-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
In its World Investment Report 2011, UNCTAD reported that liberalizing investment policy measures taken globally in 2010 outnumbered restrictive measures. Without the benefit of statistics, investors might have drawn the opposite conclusion, witnessing what appears to be a rising tide of national resistance to foreign takeovers: the Australian Foreign Investment Review Board's rejection of a takeover of the Australian Securities Exchange by the Singapore Exchange, Italian concern over a French company's takeover of dairy giant Parmalat and the US Government's requirement that Chinese company Huawei divest certain assets it had acquired from 3Leaf.
Topic:
Economics, International Trade and Finance, Markets, and Foreign Direct Investment
Political Geography:
United States, China, Canada, Australia, and Singapore

1428. Starting anew in international investment law

Author:
M Sornarajah
Publication Date:
07-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The legitimacy of investment arbitration becomes increasingly questioned, with liberal states like Australia moving away from the regime. Defenders seek to ensure the survival of this regime of asymmetric investment protection, using a variety of techniques. The conservation of the gains of property protection has resulted in novel arguments relating to the existence of a global administrative law and standards of global governance. These arguments seek to preserve an approach associated with the failure of market fundamentalism and global economic crises. As long as the inequity contained in regulatory restraints of the system affected only the powerless states, it operated with vigor; but with powerful states feeling the effects of regulatory restraints of investment treaties, there has been movement away from the earlier premises of the established regime.
Topic:
Development, Economics, Emerging Markets, and International Trade and Finance
Political Geography:
China, India, and Australia

1429. China: Industry Forecast

Publication Date:
08-2012
Content Type:
Policy Brief
Institution:
Oxford Economics
Abstract:
GDP is expected to rise by 7.9% in 2012 and expand by 8.7% in 2013. Over the next 10 years to 2021, GDP is predicted to grow on average by 7.8% a year. Manufacturing output growth is forecast to be higher than GDP growth over the next decade. Manufacturing output is expected to increase by 8.8% in 2012 and expand by 9.4% in 2013. Over the next 10 years to 2021, manufacturing output is expected to grow on average by 7.9% a year. As a result, the share of manufacturing output in GDP is projected to rise from 34.0% in 2011 to 35.1% by 2016 and increase to 35.6% by 2021. Over the same period, the share of service sector output in GDP is expected to expand from 41.7% in 2011 to 43.8% in 2016 and rise to 45.5% in 2021.
Topic:
Economics, Industrial Policy, International Trade and Finance, Markets, and Foreign Direct Investment
Political Geography:
China and Israel

1430. Logistics Islands: The Global Supply Archipelago and the Topologics of Defense

Author:
Pierre Bélanger and Alexander Scott Arroyo
Publication Date:
09-2012
Content Type:
Journal Article
Journal:
PRISM
Institution:
Institute for National Strategic Studies (INSS), National Defense University
Abstract:
For the Department of Defense (DOD), the most important difference between Operation Iraqi Freedom (OIF) in Iraq and Operation Enduring Freedom (OEF) in Afghanistan is neither cultural nor political, but logistical. Admiral Mike Mullen, former Chairman of the Joint Chiefs of Staff, summed up the difference with terse precision: “We don't have a Kuwait.” Lacking a secure staging ground adjacent to the theater of operations exponentially complicates getting materiel to and from forward operating bases (FOBs) and combat outposts (COPs), in turn requiring a longer and more complex logistical supply chain. Landlocked among non– International Security Assistance Force (ISAF) states, unstable allies (Pakistan and China to the east, Kyrgystan and Uzbekistan to the north), and regional “rogue states” (Iran), Afghanistan is, for logistical operations, a desert island.
Political Geography:
Pakistan, Afghanistan, China, Iraq, Iran, Kuwait, Uzbekistan, and Island