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71. Networks, Trust, and Trade: The Microeconomics of China–North Korea Integration

Author:
Stephan Haggard and Marcus Noland
Publication Date:
05-2012
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
A central hope of engagement with North Korea is that increased cross-border exchange will encourage the strengthening of institutions, and eventually, a moderation of the country's foreign policy. An unprecedented survey of Chinese enterprises operating in North Korea reveals that trade is largely dominated by state entities on the North Korean side, although the authors cannot rule out de facto privatization of exchange. Little trust is evident beyond the relationships among Chinese and North Korean state-owned enterprises. Formal networks and dispute settlement mechanisms are weak and do not appear to have consequences for relational contracting. Rather, firms rely on personal ties for identifying counterparties and resolving disputes. The weakness of formal institutions implies that the growth in exchange does not conform with the expectations of the engagement model and may prove self-limiting. The results also cast doubt that integration between China and North Korea, at least as it is currently proceeding, will foster reform and opening.
Topic:
Foreign Policy, Economics, International Trade and Finance, and Bilateral Relations
Political Geography:
China, Israel, and North Korea

72. China's regional security relations and interaction with the U.S.: trends, challenges and possible scenarios

Author:
Frans-Paul van der Putten
Publication Date:
12-2012
Content Type:
Working Paper
Institution:
Norwegian Centre for Conflict Resolution
Abstract:
This paper provides a brief overview of current developments relevant to Sino-U.S. security relations, and to China's involvement in regional security issues, in East and South-East Asia. The most fundamental challenge with regard to regional stability is how the roles of China and the United States in the Asia Pacific can be reconciled. While the U.S. is concerned that a rising China will eventually push American influence out of East and South-East Asia, China in turn fears that the U.S. will try to retain its leadership role by exploiting and amplifying tensions between the Chinese and their neighbours. Currently the Sino-U.S. rivalry is threatening unity within ASEAN, which poses an immediate risk for regional stability. A substantial improvement in regional stability – whether in South-East or in East Asia – is unlikely unless the U.S. and China manage to stabilise their bilateral relationship. It is important for all interested parties, inside Asia but also outside (including in Europe), to contribute to a move away from a scenario in which regional stability continues to deteriorate, and in the direction of a scenario that involves a cooperative arrangement between China and the U.S. in a stable multilateral setting.
Topic:
Foreign Policy, Arms Control and Proliferation, International Trade and Finance, Bilateral Relations, and Hegemony
Political Geography:
United States, China, Israel, East Asia, Australia/Pacific, and Southeast Asia

73. Asian Defense Spending, 2000–2011

Author:
David J. Berteau, Guy Ben-Ari, Joachim Hofbauer, Priscilla Hermann, and Sneha Raghavan
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Asia is growing in geostrategic importance. Despite the financial crisis that began in 2008, many Asian countries experienced relatively less fiscal distress and increased their level of involvement in global affairs. Indicative of the region's elevated global role is the United States' pivot toward the Asia-Pacific region as outlined in the Strategic Guidance recently released by the Department of Defense. With Asian defense spending projected to overtake that of Europe by the end of 2012, the United States' posture rebalancing toward the Asia-Pacific region is likely to continue.
Topic:
Foreign Policy, Defense Policy, Arms Control and Proliferation, and International Political Economy
Political Geography:
Israel and Asia

74. Is There a "Chinese School" of IR?

Author:
Nele Noesselt
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Research on Chinese International Relations (IR) theory has produced a variety of discourses, including post-positivist analyses, contributions by area specialists and China watchers, and articles by Chinese IR scholars. These strands, however, hardly overlap or communicate with each other. To close the gap between “the self-reflection of the core” (“Western” IR) (Waever/Tickner 2009: 3) and “the periphery's revolt against [“Western”] IR” paradigms (ibid.), it is necessary to view China (and other non-“Western” regions) as more than simply a playground for theory testing. This paper thus goes beyond the metatheoretical debate about the possibility of non-“Western” IR. It argues that even though the IR debates in China are heavily influenced by the trends of “Western” IR Studies, the claim regarding the establishment of a “Chinese school of IR” is not a hollow slogan. Indigenous frameworks are already under construction.
Topic:
International Relations, Foreign Policy, Diplomacy, and Political Theory
Political Geography:
China and Israel

75. Rising Tensions in the Eastern Mediterranean: Implications for Turkish Foreign Policy

Author:
Ebru Oğurlu
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Over the last few years, the Eastern Mediterranean has been increasingly fraught with growing competition between regional players, most notably Turkey, Cyprus, and Israel, signalling an apparent return of power politics in regional relations. Of all actors involved, Turkey stands out for being both an ever more influential power and a source of serious concern to other countries in the region due to its greater assertiveness and perceived hegemonic ambitions. Against the backdrop of recent regional developments and their international implications, including the dispute over drilling rights off Cyprus' coasts, Turkey's image as a constructive and dialogue-oriented country, a critical achievement pursued by a generation of Turkish politicians, diplomats and officials, risks being replaced by one of an antagonistic/assertive power. Facing the first serious challenge to its claim to embody a benign model as a secular Muslim democracy and a responsible international actor, Turkey should not indulge in emotional reactions. It should opt instead for a more moderate and balanced approach based on the assumption that only cooperation and constructive dialogue, even with rival countries, can help it realize its ambition of being the regional pivot.
Topic:
Foreign Policy, Democratization, Development, Islam, and Power Politics
Political Geography:
United States, Europe, Middle East, Israel, Greece, Asia, Colombia, and Cyprus

76. Stirring up the South China Sea

Publication Date:
04-2012
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
The conflicting mandates and lack of coordination among Chinese government agencies, many of which strive to increase their power and budget, have stoked tensions in the South China Sea. Repeated proposals to establish a more centralised mechanism have foundered while the only agency with a coordinating mandate, the foreign ministry, does not have the authority or resources to manage other actors. The Chinese navy\'s use of maritime tensions to justify its modernisation, and nationalist sentiment around territorial claims, further compound the problem. But more immediate conflict risks lie in the growing number of law enforcement and paramilitary vessels playing an increasing role in disputed territories without a clear legal framework. They have been involved in most of the recent incidents, including the prolonged standoff between China and the Philippines in April 2012 in Scarborough Reef. Any future solution to the South China Sea disputes will require a consistent policy from China executed uniformly throughout the different levels of government along with the authority to enforce it.
Topic:
Foreign Policy, Markets, and Maritime Commerce
Political Geography:
China and Israel

77. Watching a dragon's egg hatch: The makings of a Sinocentric world?

Author:
Jyrki Kallio
Publication Date:
04-2012
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
As China's hard power is growing, the Party-state is keen to construct a new narrative which legitimizes China's position as a world leader also from the soft power perspective. It has even been suggested that a Chinese international relations theory or model will inevitably emerge as a consequence of China's growing role on the world stage on the one hand and the rise of traditional values in China on the other.
Topic:
Foreign Policy, Development, Economics, International Trade and Finance, Power Politics, and Culture
Political Geography:
China and Israel

78. The Influence of Domestic Politics on Philippine Foreign Policy: The case of Philippines-China relations since 2004

Author:
Aileen S. P. Baviera
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
This paper sets out to explore the role of domestic politics in the shaping and implementing of Philippine foreign policy and its relations with China. It examines how domestic politics have driven Philippine foreign policy behaviour towards China; whether the Philippine Government has successfully managed the domestic drivers in promoting the state's interests in its relations with China, and whether there are major constraints that have prevented the attainment of more desirable outcomes in the bilateral ties. It looks at three cases: the Philippines-China joint marine seismic undertaking in the South China Sea; China's participation in the national broadband network project and a railway project; and Philippine reactions to China's execution of three Filipino drug mules.
Topic:
Conflict Resolution, Foreign Policy, Bilateral Relations, and Narcotics Trafficking
Political Geography:
China, Israel, and Philippines

79. The Microeconomics of North-South Korean Cross-Border Integration

Author:
Stephan Haggard and Marcus Noland
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
Economic integration between North and South Korea occurs through three modalities: traditional arm's-length trade and investment, processing on commission (POC) trade, and operations within the Kaesong Industrial Complex (KIC). In order, these three modalities are characterized by decreasing exposure of South Korean firms to North Korean policy and infrastructure. Through a survey of 200 South Korean firms operating in North Korea we find that these modalities of exchange matter greatly in terms of implied risk. For example, firms operating in the KIC are able to transact on significantly looser financial terms than those outside it. We find that direct and indirect South Korean public policy interventions influence these different modalities of exchange and thus impact entry, profitability, and sustainability of South Korean business activities in the North. In effect, the South Korean government has substituted relatively strong South Korean institutions for the relatively weak Northern ones in the KIC, thus socializing risk. As a result, the level and type of cross-border integration observed in the survey is very much a product of South Korean public policy.
Topic:
Foreign Policy, International Trade and Finance, Bilateral Relations, and Infrastructure
Political Geography:
Israel and Korea

80. The Last Living Fossil of the Cold War The two Koreas, the Dragon and the Eagle: towards a new regional security complex in East Asia?

Author:
Erik Beukel
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
The divided Korean peninsula is a flashpoint in the regional security complex in East Asia. The central issue is the threat posed by North Korea and how to meet it. After a review of North Korea as an international actor and of two important incidents in 2010 (the sinking of the South Korean naval ship Cheonan and North Korea's shelling of the South Korean coastal island of Yeonpyeong), the rationality underlying the country's military efforts is considered. South Korea's Nordpolitik is reviewed and the rise and decline of its sunshine policy and the role of its alliance with the United States is described. Two non-Korean great powers, China and the United States, are important actors in the region, and their relations with North Korea, goals and priorities, and implementation strategies are outlined. The report concludes with reflections on the potential for changing the present security complex, which is marked by a fear of war, into a restrained security regime, based on agreed and observed rules of conduct.
Topic:
Conflict Resolution, Security, Foreign Policy, Cold War, Communism, Weapons of Mass Destruction, and Bilateral Relations
Political Geography:
United States, China, Israel, East Asia, Korea, and Island