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361. The Political Economy of Successful Reform: Asian Stratagems

Author:
Dennis Arroyo
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Major economic reforms are often politically difficult, causing pain to voters and provoking unrest. They may be opposed by politicians with short time horizons. They may collide with the established ideology and an entrenched ruling party. They may be resisted by bureaucrats and by vested interests. Obstacles to major economic reform can be daunting in democratic and autocratic polities alike.
Topic:
Economics, Government, and Political Economy
Political Geography:
China, India, Asia, South Korea, Vietnam, Singapore, and Thailand

362. 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

363. Social Movements as Agents of Innovation: Citizen Journalism in South Korea

Author:
Thomas Kern and Sang-Hui Nam
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This article aims to further develop the field of innovation studies by exploring the emergence of citizen journalism in South Korea's social movement sector. To achieve this aim, the framework of innovation theory has been extended to innovations in social fields beyond technology and the economy. Our findings show that the emergence of citizen journalism resulted from brokerage activities among journalists, labor and unification activists, and progressive intellectuals. Despite different cultural visions and structural interests, these groups succeeded in building coalitions and constituted a sociocultural milieu which promoted reciprocal learning by allowing actors to realize new ideas and to exchange experiences. The empirical part of the study is based on a social network analysis of social movement groups and alternative media organizations active in South Korea between 1995 and 2002.
Topic:
Civil Society and Science and Technology
Political Geography:
Asia and South Korea

364. A Security and Peace Mechanism for Northeast Asia: The Economic Dimension

Author:
Stephan Haggard and Marcus Noland
Publication Date:
04-2008
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
A continuing leitmotif of the Six Party Talks—among the United States, China, Japan, Russia, South Korea, and North Korea—is the prospect that a resolution of the nuclear question could set the stage for more institutionalized and enduring multilateral cooperation in Northeast Asia. The Joint Statement of September 19, 2005, which outlined the principles governing subsequent negotiations, referenced new “ways and means for promoting security cooperation in northeast Asia,” and the February 13, 2007 Joint Statement created a Working Group on a Northeast Asia Peace and Security Mechanism (NEAPSM).
Topic:
Conflict Resolution, Conflict Prevention, International Cooperation, and Regional Cooperation
Political Geography:
China, Asia, South Korea, and North Korea

365. Korean Institutional Reform in Comparative Perspective

Author:
Marcus Noland and Erik Weeks
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
In recent years, academic economists have come to appreciate the centrality of public institutions in contributing to economic performance. Yet Korea, arguably the premier success story of the last half-century, has sometimes been described as a First World economy with Third World institutions. Although Korea modestly underachieves on most of the 52 institutional indicators examined in this paper, it is not an outlier, and on most indicators it is converging on global norms from below.
Topic:
International Organization and International Political Economy
Political Geography:
United States, Asia, and South Korea

366. South Korea's Elections: A Shift to the Right

Publication Date:
06-2008
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
South Korea's electoral politics has made a turn to the right that is likely to lead to closer security ties with the U.S. and some other important adjustments in foreign policy and has already strained relations with the North. The shift toward the Grand National Party (GNP), evident in President Lee Myung-bak's victory in late 2007, was completed when it won a majority in the 18th National Assembly in the 9 April 2008 elections. Those elections were dominated by domestic concerns, especially the economy; foreign policy and inter-Korean relations were near the bottom of voters' interests. The GNP's legislative agenda will include deregulation and privatisation, intended to revitalise business. Although generally supportive of Lee on foreign policy, the new assembly may cause him problems, particularly over unpopular economic liberalisation and deregulation proposals. Opposition to these, which have already produced a major political crisis, may have an impact on wider security concerns.
Topic:
Government, International Cooperation, and Politics
Political Geography:
United States, Asia, South Korea, and North Korea

367. A Chance to Rein In North Korea

Author:
Nicholas Eberstadt
Publication Date:
01-2008
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
With a newly elected South Korean president willing to join the United States in standing up to North Korea, the Bush administration now has a unique opportunity to put pressure on Kim Jong Il to abandon his country's nuclear program and desist from its human rights abuses. In this article, AEI's Nicholas Eberstadt asks whether the administration will seize the opportunity.
Topic:
Diplomacy, Human Rights, and Nuclear Weapons
Political Geography:
United States, Asia, South Korea, and North Korea

368. EU Trade Policy: Approaching a Crossroads

Author:
Roderick Abbott
Publication Date:
07-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
In an important shift, inspired partly by drift in the Doha Round negotiations, the EU announced in 2006 that it would seek new free trade area arrangements with fast-growing economies, particularly in Asia. The plan, which ended a moratorium on the launch of bilateral trade talks, in place since 1996, was billed explicitly as a contribution to the EU's own growth and jobs strategy as well as a market-opening exercise. However, the policy has so far been no more effective than multilateral negotiations in producing concrete results. Negotiations with South Korea and ASEAN have made only slow progress, while the state of talks with India remains unclear. The EU spent most of 2007 renegotiating long-standing agreements with African, Caribbean and Pacific (ACP) countries in an effort to satisfy WTO rules. Meanwhile, the EU's partnership agreements with China and Russia have expired, and appropriate successor arrangements are still being sought. In both cases, a number of important bilateral problems and strains will need to be dealt with. With its various trade negotiations treading water, the EU may need to review its options. One could be a more aggressive pursuit of market access, modelled on the US approach. Alternatively, the EU's traditional preference for multilateral engagement may reassert itself.
Topic:
International Trade and Finance
Political Geography:
Africa, Russia, China, Europe, Asia, South Korea, and Caribbean

369. An EU-Korea Free Trade Area: Playing Catch-Up or Taking the Lead?

Author:
Jim Rollo
Publication Date:
05-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
Both Korea and the EU are pursuing free trade areas (FTAs) aggressively as part of their trade policy strategies. Korea is much further down the road. There are strong incentives on both sides to conclude an agreement. However, specific issues and EU's desire to do at least as well as, and preferably better than, the Korea–US FTA may delay or even preclude success. Korea and the EU are not principal suppliers to each other, so while an agreement is predicted to be economically favourable to both sides, the effects are not expected to be very large. Korea has the higher barriers and is expected to make the bigger economic gains. There are sensitive sectors on both sides, notably automobiles for the EU and services and processed foods for Korea. Both sides have important agricultural constituencies to protect. Korea's key role in the East Asian production system suggests that rules of origin could be an area of particular difficulty in the negotiation.
Topic:
Agriculture and International Trade and Finance
Political Geography:
United States, Europe, East Asia, Asia, and South Korea

370. China's Development Strategy and Energy Security: Growth, Distribution and Regional Cooperation

Author:
Haider A. Khan
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper analyses both global and regional approaches to solving problems of energy security and ecological imbalance by addressing specifically the problems of China's energy security. China's growing energy dependence has become a major concern for both economic and national security policymakers in that country. The ambitious goal of modernization of the economy along the lines of the other newly industrialized economies (NIEs) of Asia has succeeded only too well, and it is difficult to reorient economic priorities. If examined rigorously, such an economic strategic assumption can be seen to entail the goal of creating further technological capabilities. In particular, China seems to be firmly committed to the creation of a largely self-sustaining innovation system as part of a knowledge-based economy of the future. Such innovation systems, called positive feedback loop innovation systems or POLIS have been created by advanced countries, and NIEs such as South Korea and Taiwan are proceeding to create these as well. But this will add to its energy burden and further dependence on the US as the power which controls the key sea lanes. Only a strategic reorientation to building a self-sustaining POLIS and appropriate regional cooperation institutions can lead to the way out of the current dilemma for China. Fortunately, such a model of POLIS which is distributionally and ecologically sensitive can be built for China and applied strategically to lead towards a sustainable development trajectory.
Topic:
Development, Energy Policy, Environment, and Regional Cooperation
Political Geography:
United States, China, Taiwan, Asia, and South Korea