The awakening of the red dragon. China fills the power vacuum in the Far East

The paper analyses the basic parameters of the power of China, according to Geopolitical Theory. Even though the authors adopt a critical approach on some aspects of the geopolitical theory, the geopolitical analysis elucidates the interests of China and the United States and focuses on the way of which the American decision-making system perceives China. The article interprets the geopolitical role of China, starting from the origins of geopolitical theory to the contemporary international relations theory. In addition, it focuses on the current geo-strategic context of the Far East. It analyses Chinas' strategic thinking, China's nuclear doctrine and its military power as compared to the neighbouring countries and as a major player in the world economy.

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Transregional security cooperation after September 11, 2001

The aim of this article is to answer the question what kind of global security architecture emerged after September 11 and what functions Europe, East Asia and the United States assumed in this triadic structure. The empirical findings reveal that the transpacific security cooperation is the strengthening link in this global security structure, the transatlantic security cooperation the weakening one and the Asia–Europe Security Cooperation is to be seen as the emerging link. In order to explain these different institutional manifestations of transregional cooperation, different theories of International Relations are applied to the three cases. It comes as no surprise that neoinstitutionalism and constructivism offer the best insights into the formation and development of international institutions.

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Potential Benefits from a Deep EU–India Free Trade Agreement

Both parties to an eventual EU India FTA have agreed that it should not merely address tariff barriers but should also go further into what is known as deep integration, originally developed in the 1990s by R.Z. Lawrence. This relates to the removal of all obstacles to cross border business whether actual trade barriers or domestic regulations. We distinguish deep institutional integration from the deep integration of markets. We ask the question how one may support the other. There are potential market failures that can be addressed by trans-national rules on standards and technical regulations and services, but we conclude that the biggest impact of a deep RTA would be on the domestic economy of India if it provides an opportunity for reform. It should be noted that the paper draws on a study undertaken by the authors for DG Trade, but it represents only the views of the authors.

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The new impetus towards economic integration between Europe and Asia

With the end of the Cold War and the collapse of the Soviet Union the large economic space of the Eurasian super-continent has also become part of the world-wide globalization process. How this process of integration of Eurasia is proceeding in key areas of cross-continental linkages is of great importance for the future of the region and for the future of the World as a whole. One of the key questions will be whether the regional and global institutions can provide adequate support for this integration process.This paper was presented as a keynote speech at The Fourteenth OSCE Economic Forum in Vienna on 23 January 2006. It draws on a longer paper by (Linn and Tiomkin in press).The authors are, respectively, Executive Director of the Wolfensohn Initiative at The Brookings Institution, Washington, DC, USA, and MBA and MPA/ID candidate at Harvard University. Johannes Linn served as Vice President for Europe and Central Asia at the World Bank from 1996 to 2003.

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The political weakness of the EU in East Asia: a constructivist approach

This paper provides a constructivist explanation of the political weakness of the EU in East Asia. By examining the corporate identity of the EU as well as its social identities towards ASEM, China and Japan, I argue that the identities which the EU has constructed towards the outside world and in relation to the region, based on self recognitions of its superpower status and the defence of certain political values, is disliked by both China and Japan for different reasons. Without the support of the two regional superpowers, the EU is not capable of getting involved in the resolution of East Asian hard political affairs.

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Building a strong nation, how does China perform in science and technology

A common perception is that China has relied on the expansion of labour-intensive industries and flooded the world market with cheap but low to medium level technology products. Although it has become the third largest exporting nation, China has failed to create a large number of big businesses that can compete with the world’s leading multinational companies (Nolan (2004)). The Chinese government has long been aware of the weakness of its development strategy and has been trying to improve its own technological capacity through investments in basic research, innovations and the application of new technologies, utility models and designs. China’s strategy on science and technology can be best described by the so-called ‘walking with two legs’ principle. The first leg is based on building up domestic research and innovative capacity. This is through investments in research institutes, universities and LMEs. China’s second leg has been to build up its technology capacity through its open policy and attracting FDI and technology. China has made significant advances in the following areas regarding science and technology.

APEC and emerging regionalism in North East Asia

This paper explores what kind of regional trade agreement is most likely to emerge in Northeast Asia by tracing the trajectories of APEC. Taking into account the underlying potential of realizing cumulative causation effects between market expansion and technology cooperation among China, Japan and Korea, it reaches the tentative conclusion that a Northeast Asia Regional Trade Agreement (RTA) might take shape in the near future despite the prevalence of polarized versions in the cultural heritage and the international relations between these three countries.

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EU FTA negotiations with India, ASEAN and Korea: the question of fair labour standards

The EU sets considerable store by the need for its Free Trade Agreements (FTAs) now under negotiation with Asian countries to contain a sustainable development chapter with clear references to respect for the core ILO labour standards. While they reject the sanctions-based approach demanded by the European trade unions, they accept that some real enforcement mechanisms will be needed. Among Asian countries, Korea is most likely to accept some form of a social clause, while India and certainly some ASEAN countries strongly oppose it. This article explores the prospects for mutual agreement on this thorny issue at the bilateral level which, to date, has failed at the multilateral level.

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Operational oceanography in Indonesia

In 2005 Indonesian and European institutes joined to start the first step for the implementation of an Ocean Operational System in the Indonesian archipelago. The system will support the decision making process for the sustainable use of marine resources, providing useful information and added value products as well as a service for an improved management of the sea with high business impact to targeted groups as public authorities and commercial operators (coastal managers, fishermen, shipping companies). In this paper the System is shortly described with its potential benefits and economic and social impacts.

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Future targets for Asian regional integration

The central framework of Asian integration is ASEAN+3 and, since its first Summit meeting in 1997, it has advanced regional integration in East Asia. Based on the direct experience of the author, this article presents a critical assessment of the progress made over the past ten years and argues that the ‘Singapore Declaration’ of 2007 is not ambitious enough for the future. An East Asian customs union (EACU) and common regional market should be the next targets for trade integration. In terms of monetary integration, Asia should aim for de-dollarisation and to achieve this it is crucially important to create a regional Asian monetary system (AMS).

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Quo vadis Japanese ODA? New developments in Japanese aid policies

Japan positioned itself in a special situation among the aid donor countries. This paper presents the trends in Japanese Official Development Aid policies in the new Millennium, provides an overview and discussion of the characteristics of Japanese ODA, and examines the different views and critiques that have arisen regarding Japan’s development aid policies. The paper’s goal is to highlight and interpret the latest developments and reforms of Japan’s ODA administration and strategies, its strengths and weaknesses, and to understand how ODA is becoming a more strategic, a stronger political, diplomatic and foreign policy tool in the hands of the Japanese government.

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EU trade relations with Emerging Asia: identifying the issues

Trade interdependence between Europe and Asia has rapidly increased in recent years. Europe–Asia trade flows now constitute a ‘third link’ in the global economy. As trade expands, however, global trade governance has declined and free trade agreements (FTAs) have increased. Hence, the Global Europe strategy has been designed to enhance trade relations with emerging Asia which is the most dynamic region in the global economy today. But Asia’s model of export led growth leaves it more exposed to shocks emanating from outside the region than ever before raising questions about its sustainability. Deep integration agreements between Europe and Asia are needed to foster economic growth. They also need a development dimension to help Asian countries address their key development challenges. Brigid Gavin was the Research Coordinator of the workshop on ‘Deep Integration and North–South Free Trade Agreements: EU Strategy for a Global Economy’ which provided the papers and discussion forum for the articles in this special edition. The workshop took place at the United Nations University-Comparative Regional Integration Studies (UNU-CRIS) centre in Bruges, Belgium on 19–20 June, 2008. She wishes to express her thanks to Mr Luk Van Langenhove, Director of UNU-CRIS for financial support and to all the authors and participants in the workshop for their contribution to making this project a real success. A special word of thanks goes to Lars Nilsson, Chief Economist Unit, DG Trade, European Commission for his opening presentation to the workshop. Alice Sindzingre is Research Fellow, National Centre for Scientific Research (CNRS), University of Paris and Visiting Lecturer at School of Oriental and African Studies (SOAS), University of London. This analysis draws from her paper ‘The EU Economic Partnership Agreements with Africa’ which she presented at the workshop and available on the UNU-CRIS website.

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‘Diplomatic Divergence: the Japanese and British Responses to Indonesia’s Confrontation of Malaysia 1963–1966’

While Indonesia’s policy of Confrontation towards Malaysia brought it into direct military conflict with Britain, this same event prompted Japan to pursue its first explicit postwar diplomatic initiative. Due to different strategic goals for the region, Britain and Japan’s approaches to Indonesian bellicosity were markedly different. Notably, while Britain took a hard-line stance with President Sukarno, Japan in contrast took a lenient approach eschewing economic and diplomatic isolation of Indonesia. With a latent warming in Anglo–Japanese ties beginning in this decade, this paper demonstrates that despite their antithetical approaches to this Southeast Asian crisis bilateral relations were not adversely affected.

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The EU, the OSCE and the European security architecture: network or labyrinth?

The shake-up of the European security architecture produced by the end of the Cold War has not led to a clear-cut division of labour between the different actors involved. While one organization, the Western European Union (WEU), has all but disappeared, the expansion of the EU and NATO in terms of both competencies and membership and the institutionalization of the OSCE have resulted in an intricate web of functionally and geographically overlapping institutions.Senior research fellow in the Royal Institute for International Relations (IRRI-KIIB) in Brussels and professor of European security at Ghent University in Belgium.

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Confucianism and the concept of liberty

Liberty is a concept absent in, and alien to, Confucianism. The term “tsu-you,” (or “cha-yu,” in Korean) is a modern neologism concocted by East Asian thinkers in the 19th century struggling to translate and come to grips with Western political theory. Moreover, the term that they ultimately decided to use was a Taoist, not a Confucian, term. Hence, if this lecture was entitled “Concept of Liberty in Confucianism,” it would have been a very short one. Confucianism has no room for liberty.

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A note on the feasibility of a monetary area in the East Asia

After the constitution of the European Monetary Union (EMU), a new scope for monetary coordiantion is emerging in other regional areas. The standard approach to theoretically analyse the feasibility of a monetary union is the optimum currency areas (OCA) approach. Although this approach has been claimed to be non-operative, recent studies using synchronisation measures have shown a high potential applicability. This paper provides an empirical application of the OCA theory to a hypothetical East Asian monetary union centred on Japan’s currency. We find that despite the increasing synchronisation of macroeconomic determinants of a monetary area during 1980–2001, the perspective of an Asian currency union is still not economically feasible.

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Perceptions of the Orient by the Occident. Twisted visions, false dreams and embracing the other

In this paper I will look at Occidental perceptions of the Orient, through a selective sample of writings by western scholars on the Orient, with special reference to the Malay and Islamic worlds. References to Edward Said's views on Orientalism will also be made. I argue that there is a relationship between Orientalism and politics, even in our contemporary world, although not necessarily in the manner envisaged and presented by Edward Said. Though the relationship between the Orient and the Occident has sometimes been conflictual, there have nevertheless been fruitful and significant encounters and exchanges between them in history. Finally a plea is made that though the scenario in East–West relations might at present appear pessimistic, a normative element in favour of inter-cultural and inter-civilisational dialogue, should be injected in both academia and practical politics, to bring about change and hope for humanity.

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Power delegation and the European Central Bank's democratic deficit

Delegation involves both costs and benefits. That is to say that delegation is problematic as the principal and agent may have conflicting interests in any act of delegation. Related to this puzzle, I focus on the issue of democratic deficit in the European Central Bank (ECB) as a consequence of power delegation by the European Union (EU) member states in the euro area. Critics claim that the ECB suffers from a democratic deficit as the Bank is seen immune from the people of the euro area, although it profoundly affects their everyday life. The fact that the ECB is a supranational non-majoritarian institution and distances itself from national political arenas further intensifies the issue. Hence, this article aims to evaluate the alleged democratic deficit of the ECB.

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IMF programs and human rights, 1981–2003

We examined the effects of International Monetary Fund (IMF) supervised programs on changes in government respect for physical integrity rights in developing countries between 1981 and 2003. A longer period under an IMF program increased government use of torture and extra judicial killing and also worsened the overall human rights conditions in developing countries. The use of a two-stage model ruled out the possibility that human rights practices would have worsened even if IMF programs had not been in effect. Previous studies of the impacts of IMF programs also found that they had worsened government respect for human rights. However, those studies did not control for the effects of selection. We found preliminary evidence that the worsened human rights conditions persisted even after the reforms in program lending of the late 1990s.

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Electronic Supplementary Material  The online version of this article (doi:) contains supplementary material, which is available to authorized users.

Free trade agreements and vertical-specialisation in East Asia

Regional integration in East Asia has been described as ‘market-led’ integration driven by the activities of multinational corporations creating vertical specialisation. This paper investigates the effect of free trade agreements (FTAs) on vertical specialisation-based trade by employing a gravity estimation for a sample of nine East Asian countries plus the US. We find that FTAs promote international trade based on vertical specialisation and enhances deep integration between countries. The FTA effect on vertical specialisation-based trade increases with pre-agreement vertical linkage level, that is, the deeper the real integration between countries the larger the FTA impact. The results of this paper also suggest that deeper economic integrations, such as currency unions, will enhance trade based on vertical production by reducing the risk of exchange rate volatility.

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