The fiscal policy responses to these pressures are yet to be figured out. Climate change and the responses to it will also define this century. To avoid catastrophic climate change substantial and sustained reductions of greenhouse gas emissions are needed. Unfortunately some climate change will now be unavoidable and economies will also need to adapt to higher temperatures. How countries, such as China, transition to high-income status will also be crucial. Policy frameworks that help facilitate industrial upgrading, innovation and investment in human capital will be important to drive productivity and avoid the so-called middle income trap.
These are the questions with which this issue of East Asia Forum Quarterly deals. The policy actions taken or missed today will have a significant bearing on future outcomes.
Read Japan in a Dynamic Asia: Coping with the New Security Challenges (Studies of Modern Japan)
About this issue Political and security rivalry has badly damaged the bilateral relationship, yet major trade and investment ties continue to fuel the economies of both China and Japan, and the wider Asian region. Can this economic relationship alleviate China-Japan rivalry? Or will the political and security tensions between these two states lead to conflict in Asia? What will it take for China and Japan to negotiate a mutually acceptable regional order? The China—Japan relationship has made headlines in recent years. Political and security rivalry has badly damaged the bilateral relationship, yet major trade and investment ties continue to fuel the economies of both China and Japan, and the wider Asian region.
Can this economic relationship alleviate China—Japan rivalry? Yet Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe have also used backchannel diplomacy and two face-to-face meetings to lift the relationship from its nadir in — Even more important are the trade, investment and growing people-to-people ties that serve as ballast in the relationship. Yet the relationship is now at a crossroads. Japan can no longer invest in China as a low-cost manufacturing base, as China shifts towards higher-value-added manufacturing and services.
This special issue brings together top experts from China and Japan, as well as voices from beyond the region, to offer their perspectives on what is needed to fix the relationship. They emphasise the importance of diplomacy and economics, the role of leadership in shaping domestic expectations and the need for both sides to acknowledge squarely the positive and negative aspects of the interdependent history between China and Japan.
About this issue The emerging powers of China, India and Indonesia face the twin challenges of unprecedented economic and social transformation, and crafting an approach to manage their new weight in the world, including expectations among the established powers in North America and Europe about how they should share the burdens of international leadership. So what's the way forward? Can like-minded middle powers help to shape a stable order?
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The emerging powers of China, India and Indonesia face the twin challenges of unprecedented economic and social transformation, and crafting an approach to manage their new weight in the world, including expectations among the established powers in North America and Europe about how they should share the burdens of international leadership. The consequent tensions are most evident currently over territorial issues in the South China Sea but there will be others.
Asian political systems, and political leadership, come in many shapes. Political dynasties, even in democratic polities, are a resilient feature. In Japan, Prime Minister Abe, with his three arrows, comes from a political line with impeccable conservative form. President Xi is a princeling of the Chinese revolution, set on a course of deep economic and political reform that apparently eschews overturning its authoritarian fundamentals.
Modi and Jokowi are remarkable—the directly-elected leaders of large democracies, trying to break out of the mould of past leadership style and substance.
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They all face uphill battles in achieving their ambition for reform, while protecting their base of domestic political support. Japan excepted, they lag in terms of military power and technology. What new structures are needed to assist the transit of Asian power, if any? The sharp edge of these questions is about the evolution of the relationship between the united States and china.
About this issue Devoting an edition to minorities in Asia can appear a Sisyphean task. Discussion of the status of minority groups and government policies toward them is frequently politicised by history, memory, war, border politics, and broken promises. This snapshot of the status of ethnic and religious minority groups in the region highlights evolving policy frameworks and signs of progress in extending equal rights and protections to all citizens.
Progress in protecting minority rights varies greatly across the region.
Some countries are going backwards. In other countries, territorially concentrated minorities still struggle against the perceived injustices of majority rule. Patricio Abinales explains why, in the Philippines, a misreading of history continues to obstruct a peace deal with the Moro of Mindanao. The question of Tibet is similarly fraught with competing versions of history and national identities. Robert Barnett suggests how clearer problem analysis could point the way to a resolution.
Eun Jeong Soh outlines the difficulties for minorities in the Korean peninsula, where ethnic nationalism is hardening and ideas of multiculturalism have failed to take root.
Nicholas Farrelly shows that democratisation in Myanmar has not dislodged notions of a single centralised union, where minority claims to self-determination and autonomy are vigorously rejected and forcibly kept in check. Sebastien Carrier reminds us that not all minority concerns are political. Among the Hmong in China, for example, there are concerns for the protection of cultural rights, which are promised under the law but inconsistently delivered in practice.
About this issue The first step in understanding Chinese state-owned enterprises is the distinction that we need to make between the giant, central SOEs dominating strategic industries from Beijing and the tens of thousands of provincially and locally owned SOEs. While SOEs remain a prominent feature of the Chinese economy, they now account for only 30 per cent of industrial output and even the huge central SOEs are supposed to run at arm's length from the state-an issue that is currently a focus of China's Third Plenum reform agenda.
In our regular Asian Review on major trends and developments, we cover the crucible of terror in Pakistan, the global growth of yoga, the Asian middle class and what it is not, and what's to become of the Australian economy now the party from the Chinese commodity boom is over.
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The relationship between the state and economic enterprise is a central choice that governments have to make in all economies. Some argue that in all the economies of Asia that have enjoyed or are now prosecuting successful industrialisation—Japan, South Korea, Taiwan, Singapore, Indonesia, India and China, for example—the state has played a central role through active participation in economic enterprise.
To others this is a controversial conclusion and they posit an alternative view, that successful Asian industrialisation is a story of removing the shackles of the state from economic enterprise. The first step in understanding Chinese state-owned enterprises is the distinction that we need to make between the giant, central SOEs dominating strategic industries from Beijing and the tens of thousands of provincially and locally owned SOEs. Market competition and the corporatisation and privatisation of many loss-making SOEs in the s have seen the environment in which they operate change dramatically.
That seems the way of the future. About this issue After two decades of stagnant growth and the Fukushima triple disaster, Japan appears more confident both domestically and internationally. Japan has continued to contribute to the peace and stability of the region, underpinned by the US alliance and the Article 9 peace clause of its constitution. As many authors in this issue detail, Japan needs to transform how women and foreigners are treated, open up protected sectors to competition and to rethink many of its institutions.
A real test for Abe and Japan moving forward will be managing the relationship with China, which has until now been dismal. After two decades of stagnant growth and the Fukushima triple disaster, Japan appears more confident both domestically and internationally. The economy has been inflated, much-needed social change is being discussed and progress is being made, and international diplomacy is once again active. Slower growth is to be expected with an ultra modern economy that has a shrinking population.
And Japan has continued to contribute to the peace and stability of the region, underpinned by the US alliance and the Article 9 peace clause of its constitution. As the last East Asia Forum Quarterly on Japan in concluded, if Japan was thought to have had two lost decades since the bubble burst in the early s, perhaps we need to rethink what failure is. Japan is secure, rich and prosperous. What has changed in the last 18 months is the renewal of Japanese confidence.
The economic policy package of Prime Minister Abe—Abenomics—is bold and defines a clear strategy for economic growth. What is still to be seen is whether the difficult reforms necessary for the success of this strategy will be delivered. The jury is still out and the longer we have to wait for those reforms to be put in place, the larger the risks to the economy from the first two arrows of Abenomics: the printing and spending of money.
Signs of weakness are beginning to show in the recovery. About this issue With its elevation to a leaders' summit five years ago, the G20 is now the premier forum for global economic governance. The challenge now is to create sustainable global growth based on real productivity gains and new long-term jobs in the value-added chains of the products and services of the future. Above all, G20 leaders have to ensure that key global economic institutions are robust and able to withstand unexpected shocks if and when they occur.
This issue of EAFQ also launches a new feature: four essays on major trends and developments in the region. The formation of the G20 is a major achievement, perhaps even the most important achievement of international economic diplomacy in recent times. Most observers believe that this initiative made a decisive difference in preventing the global financial crisis from developing on a scale that threatened to have consequences as damaging as the Great Depression of the s.
The G20 summit brought a fundamental change in the structure of global economic governance. The inclusion at the table of five asian economies, in addition to Japan, recognised the shift in the structure of economic power that made the old order, dominated by the G7, obsolete. Leaders can add value, for example, in addressing big questions about whether the global trade regime is headed in the right direction and how to shape the investment regime.
About this issue What is happening to Asia's edges-spatially, metaphorically, economically? This issue of the EAFQ examines the prospects of places that tend to be overlooked by many international policy specialists. These essays have been selected for their potential to illuminate Asia in four important ways. Today both Myanmar and Mongolia are steering economic, political and diplomatic development alongside their giant neighbours.
For Mongolia, its relationships with China and Russia have motivated a bold and inclusive foreign policy, one that has successfully cultivated new ties from western Europe to Australia. In the case of Myanmar, the post-dictatorship government is using its fresh democratic credentials to escape the suffocating embrace of China.
We look to places where edges mean borders and frontiers. In Bangladesh and northeast India the management of cross-border issues is enduringly problematic. Being on the edge in Asia also can imply a heightened sense of anxiety. The National Library may be able to supply you with a photocopy or electronic copy of all or part of this item, for a fee, depending on copyright restrictions.
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