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Begin New Search Topic Regional Cooperation Author Bonnie Glaser

1. The New Southbound Policy Deepening Taiwan’s Regional Integration

Author:
Bonnie Glaser, Scott Kennedy, and Matthew Funaiole
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
In a concerted effort to expand Taiwan’s presence across the Indo-Pacific, President Tsai Ing-wen has introduced the New Southbound Policy (NSP) to strengthen Taipei’s relationships with the 10 countries of ASEAN, six states in South Asia (India, Pakistan, Bangladesh, Nepal, Sri Lanka, and Bhutan), Australia, and New Zealand. The policy is designed to leverage Taiwan’s cultural, educational, technological, agricultural, and economic assets to deepen its regional integration. This report tracks the ongoing implementation of the NSP and assesses what has been achieved since Tsai was elected in January 2016. The Guidelines for the New Southbound Policy issued by the Tsai administration detail that the policy is designed to (1) forge a “sense of economy community” by fostering links between Taiwan and the 18 NSP target countries; and (2) establish mechanisms for wide-ranging negotiations and dialogues, and to “form a consensus for cooperation” with NSP target countries. In the short and medium term, the Guidelines identify four goals: (1) use national will, policy incentives, and business opportunities to spur and expand “two-way” exchanges with NSP target countries; (2) encourage industry to adopt “a New Southbound strategy” in their planning; (3) cultivate more people with the skills needed to support the NSP; and (4) expand multilateral and bilateral negotiations and dialogues to enhance economic cooperation and resolve disputes and disagreements.1 The NSP follows from similarly named policies initiated under Presidents Lee Teng-hui and Chen Shui-bian, which were aimed at diversifying Taiwan’s outbound investment away from Mainland China and into Southeast Asia. Since these prior efforts had only a limited impact, skeptics often mischaracterize the NSP as the latest iteration of a failed policy. Such naysayers fail to appreciate, however, that Tsai’s approach is both more strategic and more comprehensive than those of her predecessors. While diversifying and reinvigorating Taiwan’s economy remain fundamental to the NSP, the policy also outlines mechanisms for more effectively integrating Taiwan into the region through cultivating interpersonal connections. Moreover, the NSP is being implemented at a time of slowing growth and rising wages in Mainland China, while investment opportunities are booming in Southeast Asia and South Asia. The core economic goals of the NSP include institutional initiatives, such as updating and expanding economic agreements with targeted countries. At the same time, Taiwan is seeking to encourage small and medium enterprises (SMEs) to explore opportunities overseas. Taipei has also identified avenues for improving bilateral ties by engaging with the general publics of NSP target countries, as well as with government officials and business executives. As such, Taiwan has invested heavily in expanding cultural and educational exchanges to help promote a deeper under- standing of South and Southeast Asian cultures, languages, and business practices among the people of Taiwan. These “people-centered” exchanges serve to realize Taipei’s twin goals of strengthening Taiwan’s integration with the region and facilitating its economic diversification. It is too early to determine whether the NSP will ultimately achieve its ambitious goals, and it may take years before the Tsai government’s investment will start paying dividends. Furthermore, the NSP should be carefully examined by both the countries targeted by Tsai and partners further afield—including the United States. Many of these countries have a vested interest in bolstering the mechanisms available for Taiwan to contribute to the peaceful development of Asia. These countries may find that the goals of the NSP overlap with their own objectives in the region, and therefore may be eager to lend additional support to the endeavor. Selected Policy Recommendations for the United States The United States has a profound interest in the success of Taiwan’s New Southbound Policy. Taiwan has been a long-standing partner of the United States. Its democracy and free society are a beacon of liberal values in the region, while its economic development model has been admired and studied for decades by nations in Asia and beyond. To date, the United States does not appear to have given much thought or expended much effort to support the NSP within Asia. We suggest the United States consider actively supporting the NSP. We recommend the following specific actions: The assistant secretary of state for East Asian and Pacific affairs should coordinate with his/ her counterpart in the South and Central Asia division to create an internal working group to consider how the U.S. government can support the NSP. The U.S. government should engage Japan, Australia, and India, the other members of the “quad,” in support of the NSP. The U.S. government should continue to support Taiwan’s inclusion and active participation in international and regional initiatives where statehood is not required. U.S. nongovernmental organizations (NGOs), particularly those with programs in NSP target countries, should consider partnerships with NGOs in Taiwan to integrate their work where appropriate in support of the NSP. The Commerce Department’s U.S. Commercial Service should engage with American industry associations and companies, and explore potential avenues of collaboration be- tween American and Taiwan industry in NSP target countries. The United States should consider bilateral (U.S.-Taiwan) cultural initiatives that may be brought to third countries in Asia. The United States should include Taiwan youth in relevant regional programs and networks.
Topic:
Agriculture, Education, Regional Cooperation, Science and Technology, Culture, and ASEAN
Political Geography:
Pakistan, Bangladesh, China, India, Taiwan, Sri Lanka, Nepal, and Bhutan

2. Keeping an Eye on an Unruly Neighbor: Chinese Views of Economic Reform and Stability in North Korea

Author:
Scott Snyder, Bonnie Glaser, and John Park
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Beijing viewed North Korea's explosion of a nuclear device in October 2006 as not only an act of defiance to the international community and a threat to regional stability, but also an act of defiance toward China. Chinese officials admit that their toolbox for managing the North Korean nuclear weapons challenge must now include a combination of pressure and inducements. Three considerations underpin Beijing's aid policy toward North Korea: 1) protecting China's military-strategic environment; 2) maintaining security and stability along the Sino-DPRK border; and 3) sustaining economic development and political stability in the three Chinese northeastern provinces that border North Korea. There are intense debates among Chinese analysts over: 1) whether North Korea will give up its nuclear weapons; 2) the strategic value of the DPRK to China; 3) whether the Sino-DPRK treaty should be revised, abandoned, retained and its ambiguity stressed to enhance deterrence; and 4) the likelihood of a rapid improvement in U.S.-DPRK relations and how such a development would affect Chinese interests. Chinese analysts are generally less concerned with North Korea's immediate economic prospects than they were last year, reporting severe but stable conditions. Inflation has subsided and market mechanisms have largely replaced government rations as the primary means for securing a livelihood. In contrast to last year, when Chinese analysts were consumed by the seeming zero-sum choice between stability and reform facing the North Korean leadership, North Korea's slightly improved economic situation seems to have allayed the immediacy of Chinese concerns about North Korea's economic stability. Chinese experts report no fundamental change in North Korea's economic policies following the 2002 reforms. Chinese analysts provide conflicting assessments of whether government attempts to prohibit selling of grain in markets are succeeding and the extent to which the grain rationing system is working. Chinese DPRK specialists are encouraged that the DPRK has haltingly adopted some agricultural and market reforms and allowed greater autonomy to individual factories and enterprises. But they acknowledge that North Korea has not yet allowed farmers to act independently of their work teams, a step China took as early as the late 1970s that raised productivity sharply. Chinese analysts anticipate that reforms will continue as long as they do not threaten central government control. Chinese analysts widely assert that the North Korean system remains stable and they are confident that it will remain so for at least several years absent the sudden death of Kim Jong Il or external interference aimed at destabilizing the regime. In the long run, however, sustainable development through economic reform remains an essential prerequisite for stability, and North Korea's ability to move down that path is not yet assured. There are numerous indicators that the Chinese examine to assess stability trends in North Korea. These indicators are grouped in the following manner: 1) factionalism in the regime and potential challenges to Kim Jong Il's leadership; 2) political controls and ideological education; 3) influences from the outside; 4) the general public's loyalty to the Kim family; 5) crimes and illicit activities; 6) the economy, food supply, and economic reform; and 7) Kim Jong Il's health and the leadership succession. Chinese analysts see few signs of immediate instability in any of these areas at present, but they worry that the potential for instability may grow. In the event of instability in North Korea, China's priority will be to prevent refugees from flooding across the border. If deemed necessary, PLA troops would be dispatched into North Korea. China's strong preference is to receive formal authorization and coordinate closely with the United Nations (UN) in such an endeavor. However, if the international community did not react in a timely manner as internal order in North Korea deteriorated rapidly, China would seek to take the initiative in restoring stability. Contingency plans are in place for the PLA to perform at least three possible missions in the DPRK: 1) humanitarian missions such as assisting refugees or providing help after a natural disaster; 2) peacekeeping or “order keeping” missions such as serving as civil police; and 3) “environmental control” missions to clean up nuclear contamination resulting from a strike on North Korean nuclear facilities near the Sino-DPRK border and secure “loose nukes” and fissile material. There is apparent new willingness among Chinese institute analysts and PLA researchers to discuss the warning signs of instability in North Korea and how China might respond if the situation gets out of control and threatens Chinese security. Some Chinese experts say explicitly that they favor holding a discussion on stability in North Korea in official channels with the United States, including possible joint responses in support of common objectives such as securing nuclear weapons and fissile material. Other analysts maintain that such discussions are premature.
Topic:
Diplomacy, Nuclear Weapons, Regional Cooperation, and United Nations
Political Geography:
United States, China, Beijing, Asia, South Korea, and North Korea

3. Keeping an Eye on an Unruly Neighbor: Chinese Views of Economic Reform and Stability in North Korea

Author:
Scott Snyder, Bonnie Glaser, and John S. Park
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
This report is based on discussions with Chinese specialists on the Democratic People's Republic of Korea (DPRK) during a visit to Beijing, Changchun, and Yanji, June 25-30, 2007.1 Discussions followed on a similar round of interviews conducted in April 2006. Several of our interlocutors recently returned from extended stays in Pyongyang and many others regularly visit the DPRK, commonly referred to as North Korea. Topics discussed included trends in North Korea's economy and prospects for reform; current trends in Sino-DPRK economic relations; China's policy toward North Korea in the wake of the nuclear test; Chinese debates on North Korea; Chinese assessments of North Korea's political stability; and potential Chinese responses to instability.
Topic:
Economics, Nuclear Weapons, and Regional Cooperation
Political Geography:
China, Beijing, Asia, North Korea, and Changchun