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141. Russia’s Asia Pivot: Engaging the Russian Far East, China and Southeast Asia

Author:
Bhavna Dave
Publication Date:
05-2016
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
The Russia-ASEAN summit being held in Sochi on 19-20 May 2016 to mark twenty years of Russia’s dialogue partnership with ASEAN is a further indicator of President Vladimir Putin’s ‘pivot to Asia’ policy, triggered also by its current confrontation with the west. Through this pivot, Moscow wants to assert Russia’s geopolitical status as a Euro-Pacific as well as Asia- Pacific power. It is a pragmatic response to the shifting of global power to Asia. It also builds on the growing Russo-Chinese relations to develop the Russian Far East, a resource-rich but underdeveloped region into the gateway for expansion of Russia into the Asia Pacific. At the same time, the growing asymmetry in achieving the economic and strategic goals of Russia and China has resulted in fears that the Russian Far East will turn into a raw materials appendage of China. Moscow lacks the financial resources to support Putin’s Asia pivot. Therefore, Russia needs to strengthen ties with other Asia-Pacific countries and ASEAN as a regional grouping so as to attract more diversified trade and investments into its Far East region. It is in this context that the Sochi summit takes on added significance. However, given Russia’s sporadic interest in Southeast Asia and its strategic role defined mainly by the limited potential of Russian energy and arms exports to ASEAN Member States, the PR diplomacy and summitry at Sochi may not deliver substantive outcomes for Russia. Nonetheless, Moscow aims to enhance its status in the east and seek business and strategic opportunities through the summit thereby compensating to some extent Russia’s loss following the sanctions imposed by the west over the annexation of Crimea.
Topic:
Foreign Policy, Diplomacy, Military Strategy, and Infrastructure
Political Geography:
Russia, United States, China, Europe, and Asia

142. The Politics of Interdependence: A Case of ChinaPakistan Economic Corridor

Author:
Manzoor Khan Afridi and Iram Khalid
Publication Date:
07-2016
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
China-Pakistan strategic partnership is evolving into the politics of interdependence by encompassing not only the defense dimension but also the trade, investment, energy and infrastructure development. The proposed China-Pakistan Economic Corridor (CPEC) is a mega project which will connect the north-western Sinkiang autonomous region‘s Kashgar city with the Pakistan‘s Gwadar Port. It is equally important both for China and Pakistan on the one hand and for the regional states of South Asia, Middle East, landlocked Central Asia and East Asia, on the other. It will provide China a shortest route of about 2500 kilometers to link with Middle East by the Pakistan‘s much needed road and railway network. A huge amount of 46 billion US dollars is allocated for the project to uplift Pakistan‘s development by meeting the energy needs, building industrial parks and economic zones. This paper will use the paradigm of interdependence to analyze the China-Pakistan Economic Corridor. Interdependence is a broad term which refers to such situations of reciprocal effects among the states or actors in different states. It is not only applicable to political-military interdependence but also to politicaleconomic interdependence. Here in the case it has been observed that with the rise of China and its rapidly growing economy, a relatively peaceful environment and neighborhood is imperative. With the completion of CPEC, this interdependence seems to be transformed into Complex Interdependence by creating more peaceful environment and war; costly.
Topic:
Development, Energy Policy, Politics, Regional Cooperation, Infrastructure, and Economy
Political Geography:
Pakistan, China, South Asia, and Punjab

143. Bringing Home the Gold? A Review of the Economic Impact of Hosting Mega-Events

Author:
Douglas Barrios, Stuart Russell, and Matt Andrews
Publication Date:
07-2016
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
There is perhaps no larger sports policy decision than the decision to host or bid to host a mega-event like the FIFA World Cup or the Summer Olympics. Hosts and bidders usually justify their decisions by touting their potential impact. Many organizers and promoters either fund or widely disseminate ex-ante studies that tend to highlight the positive effects of the event. For instance, the consultancy firm Ernst & Young produced a 2010 report prior to the 2014 World Cup in Brazil that painted an optimistic picture of the event’s potential legacy. It estimated that an additional R$ 142.39 billion (4.91% of 2010 GDP) would flow through the Brazilian economy over the 2010-2014 period, generating 3.63 million jobs per year, R$ 63.48 billion (2.17% of 2010 GDP) of income for the population and additional tax collection of R$ 18.13 billion (0.62% of 2010 GDP) for the local, state and federal governments. Ernst & Young estimated that during the same period 2.98 million additional visitors would travel to Brazil, increasing the international tourist inflow up to 79%. Such results, if true, would clearly attractive for governments considering a bid, but these expected impacts don’t always materialize. Moreover, hosting mega-events requires significant investments - and the cost of these investments is rising. Zimbalist notes emerging economies like China, Brazil, and South Africa have increasingly perceived "mega-events as a sort of coming-out party signaling that [they are] now a modernized economy, ready to make [their] presence felt in world trade and politics" (Zimbalist 2015). Their intentions may be noble, but the intention of using mega-events as a "coming-out party" means developing countries hoping to host them need to make massive investments. They are confronted by significant obstacles in that they lack sufficient stadiums, accommodations, transportation systems, and other sports-related infrastructure. As a result, each of the mega-events hosted by emerging economies has been exorbitantly expensive. The 2014 World Cup cost Brazil between USD 15 billion and USD 20 billion, while Beijing reportedly spent USD 40 billion prior to the 2008 Summer Olympic (Zimbalist 2015). Additionally, as the debt-ridden 1976 Summer Olympics in Montreal demonstrates, expensive mega-events are not limited to emerging economies alone. Flyvbjerg and Stewart have even shown that every Olympics since 1960 has gone over budget (Flyvbjerg and Stewart 2012). Such incredible figures, in terms of both costs and benefits, beget the question: are mega-events worth it? Which type of reports should governments focus their attention on? What economic consequences should a government reasonably expect? With such high stakes, policymakers need to choose wisely. We attempt to answer these questions and aid the decisions of policymakers by providing a concise review of the rich academic literature on mega-events. For the purposes of this paper, we mainly focus on the Summer Olympic Games and the FIFA World Cup as mega-events. However, we also leverage information regarding events like the Winter Olympic Games, the UEFA football championships, and the Commonwealth Games. These events are organized on a smaller scale than the previous two, but they might provide some insights on how to best understand mega-events. We focus on claims surrounding the direct or indirect mechanisms that facilitate the impact that ex-ante studies predict. We provide a review of these claims and their validity according to the existing literature. Section 1 focuses on the argument that mega-events lead to increased economic activity in the host economy. Specifically, we evaluate whether or not mega-events leads to access to previously inaccessible funds and increased investments. These investments could theoretically come from supranational organizations, private stakeholders, or public stakeholders. We also consider whether or not these new expenditures and investments have the multiplicative effect that many ex-ante studies assume they have. We finally investigate if the economic activity surrounding mega-events leads to increased revenues and tax collection for host governments. Overall, the existing academic literature suggests that any increased economic activity resulting from the event is routinely dwarfed by additional public budgetary commitments. Moreover, the arguments regarding multiplicative effects and increased revenues also tend to be exaggerated. Section 2 shifts the focus to the potential impact of mega-events on a specific industry: tourism. We explore the effect of mega-events on the number of tourists visiting the host region and their spending habits. We explore this channel both for analyses specific to a single mega-event and for cross-country evaluations incorporating many events. Next, we consider the impact of a mega-event on a region’s brand and image in the international community with the idea of testing if hosting the competition will impact future tourism. Finally, we consider if mega-events lead to increases in the capacity of a city or country to welcome future tourists as a result of improved airport infrastructure, accommodations, and/or transportation systems. As was true in Section 1, the academic literature suggests that the claims of many ex-ante studies are misleading. Our review finds that there is some evidence for increases in tourist arrivals to certain events, but those increases are far smaller than what is generally predicted beforehand. These effects are also usually dependent on factors, such as the timing of the competition, that are specific to the host region and the event itself. Section 3 briefly discusses other potential qualitative and social impacts of mega-events such as international business relations, crime reduction, and the "feel-good effect." In the penultimate section, Section 4, we discuss how these conclusions should impact the decision-making of policymakers. Finally, in a short conclusion, we summarize the findings of our review.
Topic:
Infrastructure, Sports, Economy, Olympics, and World Cup
Political Geography:
China, South Africa, Brazil, and Global Focus

144. The Blind Men and the Elephant: Making Sense of China's One Belt One Road Initiative

Author:
Nimmi Kurian
Publication Date:
12-2016
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
China’s One Belt One Road Initiative has virtually been a lightning rod for divisive debate and a polarised narrative since it was announced in 2013. For India, it has been the proverbial elephant in the room, as it awkwardly swings between willful pretence and wishful erasure. The policy brief looks at the clues this initiative could offer on the likely drivers of China’s economic diplomacy in the region. There could be three signals for India to watch out for. A clear pointer is the growing role of domestic determinants in setting the direction and pace of China’s regional economic engagement. Another pointer could be China’s role in shaping and defining Asia’s new institutional financial architecture. Lastly, the initiative could be a signal of how China is likely to engage with the larger questions of benefit sharing, trade-offs and the allocation of risks and burdens in subregional Asia.
Topic:
Diplomacy, International Trade and Finance, Regional Cooperation, Infrastructure, Economic Growth, and Soft Power
Political Geography:
China, South Asia, India, and Asia

145. A Deeper Look at China’s “Going Out” Policy

Author:
Hongying Wang
Publication Date:
03-2016
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
In recent years, the world has seen rapid growth in China’s financial reach beyond its borders. Following the announcement of a “going out” strategy at the turn of the century, many Chinese enterprises have ventured to invest and operate abroad. After three decades as primarily a recipient of foreign direct investment (FDI), China has now emerged as a major FDI-originating country as well. Much of China’s foreign aid is closely entangled with its outgoing FDI, and it has also been rising. Since 2013, the Chinese government has been pushing for a new One Belt, One Road (OBOR) initiative, aiming to connect China with countries along the ancient Silk Road and a new Maritime Silk Road via infrastructure investment. In addition, since 2009, China has actively promoted the internationalization of its currency, the renminbi (RMB). There has been a great deal of anxiety about the motivations behind China’s going out policy and its possible international consequences. Many view it as an expression of China’s international ambition and a strategy that threatens the existing international order; however, that is not the whole story. An equally important but often less understood issue is the role of China’s domestic politics and political economy in shaping its new activism in foreign financial policy. Moreover, it is unclear how successful the going out policy is. The complexity of China’s going out policy was the topic for a recent round table discussion hosted by the Centre for International Governance Innovation and the Foreign Policy Institute at the School of Advanced International Studies of Johns Hopkins University in Washington, DC.[1] Participants discussed a number of issues around two broad themes: the impact of domestic political economy on China’s foreign economic policy and the challenges for China’s external financial strategy — in particular, its OBOR initiative.
Topic:
Markets, Political Economy, Monetary Policy, Infrastructure, Foreign Direct Investment, and Financial Markets
Political Geography:
China

146. China and India’s Border Infrastructure Race

Author:
Sudha Ramachandran
Publication Date:
09-2016
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The Himalayan region places tough logistic burdens on militaries operating there, making improvement of roads and rails a priority for China and India. While framing their infrastructure projects in economic terms, China’s progress has real strategic implications. Though the Indian government has often promised to prioritize its own building programs, these have yet to pan out.
Topic:
Defense Policy, Military Strategy, Territorial Disputes, Infrastructure, and Military Affairs
Political Geography:
China, India, Asia, and Himalayas

147. Is Europe to Benefit from China's Belt and Road Initiative?

Author:
Nicola Casarini
Publication Date:
10-2015
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
With the One Belt One Road (OBOR), arguably Beijing’s major diplomatic outreach in decades, a process towards greater Sino-European connectivity has been put in place. The implementation of the OBOR in Europe has focused so far on financing infrastructure projects, in particular railways in Southeast Europe and ports in the Mediterranean Sea. This has been complemented by growing monetary linkages between the People’s Bank of China and European central banks through the establishment of currency swap agreements and yuan bank clearing – so-called “offshore renminbi hubs” – with the aim of lowering transaction costs of Chinese investment and bolstering the use of the Chinese currency. While there are undoubtedly great economic opportunities, China’s OBOR initiative also presents the EU with a major political challenge. There is the risk, in fact, that a scramble for Chinese money could further divide EU member states and make it difficult for Brussels to fashion a common position vis-à-vis Beijing. Furthermore, China’s economic penetration into Europe may lead – if not properly managed – to a populist backlash as well as a strain in relations with Washington. All these elements should be taken into consideration by EU policymakers, as China’s OBOR makes inroads into the Old Continent.
Topic:
Development, International Trade and Finance, Bilateral Relations, and Infrastructure
Political Geography:
China and Europe
Publication Identifier:
978-88-98650-64-4
Publication Identifier Type:
ISBN

148. China Makes Strides with AIIB and a Great Wall of Sand

Author:
Bonnie S. Glaser and Jacqueline Vitello
Publication Date:
05-2015
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
2015 opened with high-level exchanges in preparation for the Strategic and Economic Dialogue, scheduled for early summer, and Xi Jinping’s state visit in September. Visits to China were made by Deputy Secretary of State Tony Blinken, Treasury Secretary Jacob Lew, Commerce Secretary Penny Pritzker, and Homeland Security Secretary Jeh Johnson. Chinese State Councilor Yang Jiechi met National Security Adviser Susan Rice in New York. Military exchanges included dialogues, ship visits, joint drills, and video calls. The South China Sea remained a source of friction as evidence mounted that China is building military outposts on reefs in the Spratly Islands. In response to the issuance of the revised US-Japan Defense Guidelines, China voiced concerns and called the alliance outdated. Despite US objections, a total of 57 countries signed up to be founding members of the Chinese-led Asian Infrastructure Investment Bank. China held its annual meetings of the National People’s Congress and the Chinese People’s Political Consultative Congress, announcing an economic growth target of around 7 percent and an increase in its defense budget of 10.1 percent in 2015.
Topic:
Economics, Military Strategy, Territorial Disputes, and Infrastructure
Political Geography:
China and Asia

149. All Still Quiet in the East

Author:
Yu Bin
Publication Date:
05-2015
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
China-Russia relations were quite uneventful in the first four months of 2015. Instead, Moscow and Beijing seemed on divergent paths as the former continued to be plagued by geopolitics (Ukraine, Iran, etc.), while the latter was busy with geoeconomics (Asian Infrastructure Investment Bank (AIIB), Belt and Road Initiative, etc.). Beneath the surface calm, however, preparations were in high gear for the coming months in both symbolic (70th V-Day anniversary) and substantive areas such as strategic consultation, aerospace cooperation, and military sales.
Topic:
Diplomacy, International Cooperation, International Trade and Finance, Bilateral Relations, and Infrastructure
Political Geography:
Russia, China, Europe, and Asia

150. Eurasia Amidst The Spirit of Shanghai and A Community of Shared Future

Author:
Sunamis Fabelo Concepción
Publication Date:
01-2015
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
The article is based on the analysis of the integrationist trends that have evolved in Central Asia between 1991 and 2015. It deals with how the historical reality of the Central Asian republics conditioned them to search for centers of reference to guide the construction of their political and economic systems. This situation caused these countries, since their independence, to begin to interact with important international relations players, with whom they built a series of interdependent relations that were tracing two integrationist conceptions that became trends: Western and Eurasian. The latter one is the one that has most advanced in the period studied, promoted by Russia and China with the implementation of important mechanisms of association, cooperation and consensus, among which the Shanghai Cooperation Organization, the Eurasian Economic Union and the New Silk Road project. In this sense, the Chinese megaproject One Belt One Road is supported by a series of conceptual bases as a result of the progress and evolution of the Eurasian trend understood in its broader meaning.
Topic:
International Cooperation, Infrastructure, Belt and Road Initiative (BRI), and Silk Road
Political Geography:
China, Europe, and Asia