Affordable delays for the Chiang Mai Initiative?

While the worst of the Global Financial Crisis may have passed, in East Asia the economic pressures are still mounting. Regional economies are struggling with inflation, asset bubbles and now increasingly volatile exchange rate movements. One mechanism which might aid the regional economies to coordinate their exchange rate policies, to fend off currency speculation and assist with reigning in increasingly problematic ‘hot money’ flows is the Chiang Mai Initiative Multilateralisation (CMIM). (East Asia Forum)

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India’s Battle Within: Coming to Grips With the Politics of Greed

In the comparisons of China and India that have become commonplace in recent years, India is often given the edge on account of its political system. India has a deep-rooted democracy, the argument goes, while China is a brittle autocracy whose government functions without transparency or accountability. Indeed, the idea of India as Asia’s democratic alternative to China was underscored during US President Barack Obama’s November visit to India, where he declared that “in Asia and around the world, India is not simply emerging; India has emerged.” (The Jakarta Globe)

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A different road forward   

Painful adjustments needed to sustain advancement in the face of anemic innovation, slow tech upgrades and social tensions. China's per-capita income, at $3,800, has surpassed the threshold for a middle-income country. But even as economists and strategists busily extrapolate its future growth path to predict when it will catch up to the United States, the mood in China became somber and subdued in 2010. Indeed, Premier Wen Jiabao sees China's growth as "unstable, unbalanced, uncoordinated and ultimately unsustainable". (China Daily)

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As China Rises, So Does Vietnam   

One of the biggest beneficiaries of China’s rapid economic ascent is not China at all, but rather its historic rival, occasional enemy and fellow socialist neighbor to the south, Vietnam. (The New York Times)

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Japan’s 2010 National Defense Program Guidelines – Reading the Tea Leaves

On December 17, Japan's Cabinet, under the leadership of the Democratic Party of Japan (DPJ), published Japan's ten-year defense strategy, known as the National Defense Program Guidelines (NDPG). In response to a rapidly transforming strategic environment, the 2010 NDPG -- the first by a non-Liberal Democratic Party (LDP) government -- delineates a number of major changes. At the same time, "reading between the lines" finds that the NDPG is equally significant for what it reflects about the continuity in Japan's defense policy. (The East West Center)

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What Russia can do on North Korea   

Events over the past few weeks have underscored Moscow’s desire to play a major role in resolving the disputes between North Korea and its neighbours. But they’ve also highlighted the limits of Moscow’s influence. (The Diplomat)

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Sino-US geopolitical rivalry does not help Korean stability 
The United States government believes China needs to do more to contribute to stability on the Korean peninsula. According to this view, North Korea is highly dependent on Chinese support and Beijing should use its influence to moderate Pyongyang’s behavior. As some American and other Western observers have put it, it is time for China to start behaving like a responsible great power. But it is not likely that China will fundamentally alter its policies. (East Asia Forum)

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Détente or setting the stage for more Koreas...   

There are two competing histories being written on the Korean Peninsula right now. One school sees the crisis that has swelled since North Korea’s deadly attack last month on a South Korean island as the most dangerous in decades, perhaps since the end of the Korean War. The other sees only rhetoric and business as usual. (The Globe and Mail)

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China shown empty chair but Chinese show...

The Communist Party believes in achieving high growth rates through a market economy while relying on one party political institution to ensure social justice and peace. Political scientists are likely to point out that the system put in place by the Party has resulted in rising inequality in Chinese society and also social unrest. There is also rise in corruption not only in the Party but in the country as well. These have also triggered loss of human rights of the people. (The Brunei Times)

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India's defense policy arrives at the crossroads…

Without a realistic appraisal of defense requirements and military acquisition needs, India's rise as a major global player will remain no more than a topic of speculation. (The Japan Times)

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Indonesia’s growing economic power
In Beijing this week a group of top foreign policy professionals is being brought up to speed on developments in Southeast Asia, in a routine review of China’s interests in the region. ASEAN commands priority in Chinese diplomacy because of its anchor role in regional economic and political arrangements, because of its ongoing territorial and other political-strategic interests and because of the growing importance of China’s relations with Indonesia, at the heart of its relations with the Southeast Asian region. (East Asia Forum) 

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