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171. Japan's Security Policy in Africa: The Dawn of a Strategic Approach?

Author:
Celine Pajon
Publication Date:
05-2017
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
In recent years, Japan's security contribution in Africa rose with the unprecedented participation of the Self-Defense Forces (SDF) in an international counter-piracy operation in the Gulf of Aden, the subsequent build-up of its first overseas military base in Djibouti, and the SDF's longest participation in United Nations Peace-Keeping Operations (UNPKO), in South Sudan (2012-May 2017). This increased security contribution has been driven by a need to react to various events, such as the rising Chinese presence in Africa and the increase in terrorist attacks and piracy. It is also a means of reassuring a risk-averse business sector and encouraging it to step up its investment in Africa. Finally, it is about demonstrating Japan's identity as a "proactive contributor to peace", and responsible shareholder in international security. While media attention is drawn to the Japanese SDF presence on the ground and at sea, the bulk of Japan's security contribution to Africa remains low-key, mostly in the form of financial contributions and capacity-building assistance, and is very often channeled through or in partnership with multilateral institutions or a third country, such as France. This said, Africa is now being associated more tightly with Japan's strategic core interests. Terrorist attacks on the continent are posing a direct risk to Japanese nationals. Threats to the security of vital maritime shipping routes transiting from the Middle East to the Indian Ocean are also directly undermining Tokyo's interests. The inclusion of Africa in the "Free and Open Indo-Pacific Strategy" demonstrates Japan's willingness to adopt a more strategic approach to Africa.
Topic:
International Relations and International Political Economy
Political Geography:
Africa and Japan

172. Political Targets: Womenomics as an Economic and Foreign Relations Strategy

Author:
Linda Hasunuma
Publication Date:
04-2017
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Four years have passed since Prime Minister Abe launched his Three Arrows of reform – “Abenomics” – to revitalize Japan’s economy. The first arrow targeted monetary policy; the second fiscal policy, and the third structural reform – including a measure aimed at reducing barriers to women’s participation in the labor force; this part quickly became known in the media as “womenomics”. Demographic and economic pressures make it imperative for the Japanese government to employ more women as its population ages and shrinks, but Japan has been under great international pressure over its disappointing record on women’s equality as well. What began as an economic strategy about women became also a foreign relations strategy that could help the Japanese government reframe the narrative and its reputation as a country that fails its women; it has also faced increasing criticism and even condemnation from human and women’s rights activists and organizations for its position on the Comfort Women issue. Womenomics is also a public relations strategy for the government to signal to other countries, financial and international institutions, investors and rights organizations, that it is taking action on two important fronts: economic reforms and gender equality. The inclusion of women can provide economic and political benefits to Japan.
Topic:
Gender Issues and International Political Economy
Political Geography:
Global Focus

173. Political Targets: Womenomics as an Economic and Foreign Relations Strategy

Author:
Linda Hasunuma
Publication Date:
04-2017
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Four years have passed since Prime Minister Abe launched his Three Arrows of reform – “Abenomics” – to revitalize Japan’s economy. The first arrow targeted monetary policy; the second fiscal policy, and the third structural reform – including a measure aimed at reducing barriers to women’s participation in the labor force; this part quickly became known in the media as “womenomics”. Demographic and economic pressures make it imperative for the Japanese government to employ more women as its population ages and shrinks, but Japan has been under great international pressure over its disappointing record on women’s equality as well. What began as an economic strategy about women became also a foreign relations strategy that could help the Japanese government reframe the narrative and its reputation as a country that fails its women; it has also faced increasing criticism and even condemnation from human and women’s rights activists and organizations for its position on the Comfort Women issue. Womenomics is also a public relations strategy for the government to signal to other countries, financial and international institutions, investors and rights organizations, that it is taking action on two important fronts: economic reforms and gender equality. The inclusion of women can provide economic and political benefits to Japan.
Topic:
Gender Issues and International Political Economy
Political Geography:
Global Focus

174. Chinese Investors in Ethiopia: The Perfect Match?

Author:
Françoise Nicolas
Publication Date:
03-2017
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Ethiopia seeks to replicate the experience of East Asian countries such as Taiwan, Malaysia, or China and to attract foreign direct investment (FDI) in order to accelerate the development of its manufacturing capacities (in particular through an ambitious industrial Park – IP - development program and the acceptance of foreign-owned Special Economic Zones - SEZs). On the other hand, China looks to export its development model (including SEZs), to delocalize its most labor-intensive activities, and to promote connectivity between Asia and the African continent. In this context, the Chinese government identified SEZ projects in 19 countries – including one in Ethiopia (the so-called Eastern Industry Zone - EIZ), located in Dukem some 30 kilometers southeast of Addis Ababa. Today, China is by far the leading foreign direct investor in the country. In addition to the Chinese-owned EIZ in Dukem, Chinese investors are also present in privately-run SEZs that are not part of the Chinese Ministry of Commerce (MOFCOM) strategy, as well as in government-led IPs and outside SEZs or IPs. Lastly Chinese firms are also extremely active in all kinds of infrastructure development thanks to Chinese funds.
Topic:
International Political Economy and International Affairs
Political Geography:
China and Ethiopia

175. How has Qatar Fended Amidst a Sociopolitical and Economic Blockade by its Neighbours?

Author:
Thembisa Fakude
Publication Date:
08-2017
Content Type:
Special Report
Institution:
Al Jazeera Center for Studies
Abstract:
The haphazard nature of the political campaign by the anti-Qatar forces demonstrated serious political immaturity and the over-estimation of the power of money in politics and shaping world opinion.
Topic:
International Political Economy
Political Geography:
Middle East

176. Saudi Vision 2030 and the Consequences of the Gulf Crisis

Author:
Naser al-Tamimi
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Al Jazeera Center for Studies
Abstract:
The Saudi government has begun an ambitious process of economic reforms, but internal resistance and external disturbances – worsened by the Gulf crisis – are increasing costs and may lead to its failure.
Topic:
International Political Economy
Political Geography:
Middle East

177. Factors Influencing ASEAN FDI and the Policy Implications

Author:
Jeong Hyung-Gon
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Since the global economic crisis triggered in the United States in 2008, the East Asian economic region has received particular attention as it achieved relatively solid economic growth compared to developed countries, which struggled with recession. The discussion on economic cooperation and economic liberalization within East Asia has mainly focused on the RCEP, with this discussion being led by ASEAN as it calls for ASEAN centrality. ASEAN is currently the second-largest overseas investment destination and second-largest trading partner for South Korea, making it an important partner in economic cooperation for South Korea. Particularly, as China is openly implementing economic retaliatory measures against South Korea for the deployment of THAAD missiles in the nation, South Korea has become more interested in the ASEAN market as it strives to diversify its trade and investment portfolio. Under this background, this research examines the characteristics of ASEAN FDI by income level and doing business conditions, then conducts an empirical analysis of determination factors to draw policy implications for stronger economic cooperation with ASEAN.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
Asia

178. The Effect of Restructuring on Labor Reallocation and Productivity Growth: An Estimation for Korea

Author:
Choi Hyelin, Kim Subin, and Jung Sung Chun
Publication Date:
09-2017
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Productivity is considered one of the most important factors for economic growth. Total productivity grows through technological progress or realloca-tion of resources. This paper analyses their contribution to economic growth for total economy and by sectors. The main finding is that economy-wide increases but this is mainly due to internal technological improvements. On the one hand, inter-sector reallocation of labor negatively contributes to eco-nomic growth as employment moves to service sectors with low productivity. Further, when looking at the sectoral-level productivity growth, both internal and external restructuring make positive contributions to aggregate economic growth. However, internal technological progress and reallocation of employment appear to similarly contribute to the sectoral-level economic growth in the manufacturing sector, whereas internal restructuring makes a larger contribution to economic growth in the service sector. This suggests that there is more room for reallocation of resources to contribute to the productivity growth in service sectors. Therefore, the productivity growth of the service sector would foster economy-wide productivity and it can be achieved by the mitigation of misallocation of resources in service sectors.
Topic:
International Political Economy and International Affairs
Political Geography:
Asia

179. Anatomy of the Trade Collapse, Recovery, and Slowdown: Evidence from Korea

Author:
Lee Sooyoung
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The last decade of the world trade has been marked by an unprecedented collapse, quick recovery, slowdown, another drop, and recovery. To study cyclical and structural aspects of the recent trend of trade, I use both aggregate and disaggregated trade statistics of a small open economy, South Korea, whose economic success and growth have been heavily dependent on exports. The aggregate trend of the country is surprisingly similar to that of the world, which is why the trend of Korea's export is called a proxy for the world. I show that while the last drop of trade after 2015 has cyclical aspects, there is evidence that the continued slowdown from 2012 is structural: (1) the so-called `China factor' is found in the analysis of trade-income elasticity of the world and China for imports from Korea. (2) The bilateral trade barriers between Korea and its important trading partners are universally tightening. I also show that the firm sizes, destination countries, and the mode of transactions affect disaggregated trade flows during the slowdown periods. It is advisable to diversify main export products to lower the effect of oil prices on export prices and to strengthen the cooperation with ASEAN countries, whose trade barriers have exceptionally diminished throughout the last decade.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
Asia

180. Investment Puzzle: Deeper Roots

Author:
Kim Sujin
Publication Date:
05-2017
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Even at near-zero interest rates for a prolonged period since the financial crisis, why has business investment in advanced economies remained persistently below its pre-crisis level? This paper investigates empirically the roots of this investment puzzle from the global megatrend perspective. The empirical model of this study augmented the uncertainty-finance accelerator investment model with megatrend variables of a transition to service industry, ageing population and a rise in income inequality. The main estimation results show that they have affected negatively the business investment over the period 1980-2014. The shift-to-service driven investment fall is the price-dominant effect during the transition, which is not necessarily pessimistic news, while the suppressing effects from ageing and a rise in income inequality require adequate policy reactions. In addition, the analysis finds significant negative spillover effects of trade partners' ageing and income inequality on a country's own private investment. Based on the empirical results, I expect that the G20’s efforts in inclusiveness with structural reforms will stimulate global business investment.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
Asia