North Korea’s economy continues to move ahead despite years of isolation and international trade restrictions. The economy is performing at a moderate rate with a mean GDP growth rate of 0.7 percent from 2004 to 2015, and appears to be a focus of the regime’s policy decision-making, researchers have found.

“The government has embraced markets as an acceptable and effective way to improve performance and enhance legitimacy but maintains the ability to regulate marketized activities,” SK Center Fellow Yong Suk Lee and Shorenstein APARC Fellow Thomas Fingar wrote in a joint report released today.

The report, available in English and Korean (forthcoming), is an outcome of research collaboration between the Shorenstein Asia-Pacific Research Center (APARC) and the Institute for National Security Strategy (INSS), a research body focused on national security policy that is part of the South Korean government.

Conducted over the course of six months, the collaboration included two roundtable meetings at Stanford and in Seoul with the report’s co-authors from the INSS, Kwang-Jin Kim and Hyung-Seog Lee, and Korea-focused scholars at Shorenstein APARC, including Gi-Wook Shin, director of the center; Kathleen Stephens, the William J. Perry Fellow; and Daniel Sneider, associate director for research.

“We set out with the research question ‘how is the current North Korean regime performing,’ and through our engagements with the INSS, were able to combine our expertise and look at the question from new and different angles,” said Shin, also a professor of sociology and director of the Korea Program, who initiated the collaboration.

The researchers participated in discussions and parsed through data and qualitative accounts, including surveys from the INSS and reporting by journalists. From their collaboration, they determined two approaches to understanding the country’s economic and institutional expansion since Kim Jong-un assumed power six years ago, both of which are outlined in the report.

Their first approach suggests that organizational and personnel changes in Kim Jong-un’s cabinet, key ministries and committees were undertaken, at least in part, to enact operational effectiveness and a more productive economy.

“There’s evidence that indicates new appointments by Kim Jong-un were intended to maintain or enhance the ability of the government to meet continuing and new policy objectives,” said Fingar, a political scientist with an emphasis on Northeast Asia.

Kim Jong-un has attempted to consolidate control by removing at least two-dozen officials in the government’s main governing body – the Korean Workers’ Party, and in some cases, promoting them to different positions.

In the report, the researchers mapped the systems of North Korea’s three rulers since its founding in 1948 and the significant leadership changes under Kim Jong-un, noting that recent vice-premier promotions have included new economic responsibilities.

Personnel changes in the military have also involved positions responsible for oversight of foreign relations, commerce, oil and statistics, which suggest that officials are judged not only on their loyalty to the regime, but also on their performance at the job, Fingar said.

Their second approach suggests that North Korea’s improved economic performance is linked to its expansion of markets, and since 2009, its increased trade and investment with China.

“While the government maintains the ability to regulate market activities, North Korea’s growing dependence on the ‘private sector’ is a sign of the priority assigned to it and of its movement away from a socialist-style economy,” said Lee, an economist and deputy director of the Korea Program.

Officially licensed markets in North Korea have been estimated to number in the hundreds and the government collects taxes from them. There also exists a similar estimate for unofficial markets operating in the country, according to data cited in the report.

The researchers said it is improbable that North Korea will abandon market-oriented activities and capital inflows from outside its borders, particularly from China, in a time of tightening sanctions from the U.N. Security Council and other countries in response to North Korea’s repeated nuclear and missile tests.

“Taken together or apart, the two approaches we’ve put forth provide a comprehensive puzzle for future study,” said Lee. “We hope this report brings additional lenses that researchers can apply to analyze the performance of the North Korean regime and that policymakers can use to assess the efficacy of international sanctions.”

Colonel Patrick Winstead, the 2016-17 FSI senior military fellow at Shorenstein APARC, writes about the second annual orientation at U.S. Pacific Command headquarters

The mission of the Department of Defense (DoD) in the Indo-Asia-Pacific region recently became a bit clearer for 22 faculty and military fellows from Stanford, the Massachusetts Institute of Technology, the Naval Postgraduate School and the Daniel K. Inouye Asia-Pacific Center for Security Studies (APCSS). The U.S.-Asia Security Initiative at the Shorenstein Asia-Pacific Research Center (APARC) in the Freeman Spogli Institute (FSI) organized a group of faculty and fellows for a two-day orientation of United States Pacific Command (USPACOM) and its component military organizations in and around Honolulu, Hawaii, April 13-14, 2017. The purpose of the orientation was to provide researchers with a comprehensive understanding of how America’s armed forces both develop and implement U.S. national security strategy, doctrine and policy throughout Asia.

The trip began with a visit to the headquarters of USPACOM at Camp H.M. Smith. After receiving briefings about USPACOM's mission and operations, the group engaged in roundtable discussions with General Terrence O’Shaughnessy (Commander, U.S. Pacific Air Forces); Major General Kevin B. Schneider (Chief of Staff, USPACOM); Rear Admiral Mark Montgomery (Director for Operations, USPACOM); Major General Steven Rudd (Director for Strategic Planning and Policy, USPACOM); as well as other key joint directors and members of the command staff. The faculty and fellows provided short presentations on the situation in the South China Sea, U.S.-Philippine relations and cyber warfare to an audience of mid-grade military officers and civilian personnel assigned to USPACOM.

In addition to meeting with the leadership of USPACOM, the group was also afforded the opportunity to interact with personnel from the four separate component commands. Deputy Commanding General of U.S. Army Pacific, Major General Charlie Flynn, provided a command briefing at the U.S. Army Pacific headquarters at Fort Shafter. The briefing stimulated a wide-ranging discussion about Army initiatives and activities in support of USPACOM’s mission in the Indo-Asia-Pacific region. At Marine Corps Base Hawaii at Kaneohe Bay, under the guidance of trainers, the visitors took part in a hands-on experience operating Humvee simulators in a virtual-reality convoy setting and firing simulated weapons that Marines typically employ in combat operations. The first day of the trip ended with a working dinner at the historic Nimitz House with the Commander of the U.S. Pacific Fleet, Admiral Scott Swift, where the conversation ranged from Chinese military modernization to evolving U.S. naval doctrine.

Those themes carried into the second day, when the group met for several hours with faculty at APCSS for plenary presentations and multiple breakout sessions to facilitate in-depth dialogue on select topics including the threats posed by nuclear weapons on the Korean Peninsula and in South Asia. The day continued with a tour of the U.S.S Hopper, an Arleigh-Burke class guided missile destroyer, based at Pearl Harbor, Hawaii. Once onboard, the ship’s captain, Lieutenant Commander J.D. Gainey, provided briefings on Hopper’s mission and operational capabilities. In addition, the group spoke with members of the ship’s crew. The experience allowed the faculty and fellows to interact informally with sailors who serve in the Asia-Pacific theatre and to candidly discuss issues of concern. The second day of the orientation ended with a visit to the headquarters of U.S. Pacific Air Forces and a dialogue with O’Shaughnessy and his staff about the unique security challenges of the Indo-Asia-Pacific region, such as tyranny of distance, limited support bases and multiple emerging threats, and how those challenges impact the Air Force and the entire U.S. military’s preparations for contingencies in the region.

Overall, the orientation provided a unique opportunity to engage directly with high-level leaders of USPACOM and to learn first-hand about the challenges faced by those who serve in the armed forces. The orientation also provided a forum to discuss the United States’ national security interests in the region and its efforts to maintain peace and stability in the Indo-Asia-Pacific and to help maintain a rules-based, liberal democratic order.

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The Center on Democracy, Development, and the Rule of Law (CDDRL) at Stanford University announced today that it has launched the Global Digital Policy Incubator (GDPi). GDPi’s mission is to help develop governance norms for the global digital ecosystem that reinforce democratic values, universal human rights and the rule of law. It will serve as a multi-stakeholder collaboration hub at Stanford for technologists, governments, civil society and the private sector actors. GDPi will identify and incubate global policy and governance innovations that enhance freedom, security and trust in the digital realm. 

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"If the threat posed by North Korea’s nuclear weapons were easy to solve, the problem would have been solved long ago. In addressing the threat from North Korea, a very real threat in which the North Korean’s could develop ICBMs that could deliver nuclear weapons to the American mainland, the United States must confront two very difficult challenges," explains Stephen Krasner in the Lawfare. Read the whole article here. 

Japan is an increasingly divided country between elites and the public as it grapples with whether it should acquire nuclear weapons itself and not rely on America’s protection, a Stanford scholar found.

Sayuri Romei, a political scientist and predoctoral fellow at Stanford’s Center for International Security and Cooperation (CISAC), has a new working paper that describes how Japanese society is grappling with its nuclear future. Romei researches the U.S.-Japan relationship, nuclear security, nationalism and identity in East Asia.

“The shift in the Japanese nuclear debate at the turn of the 21st century did not stem directly from a willingness to deter the new and urgent looming military threats, but was rather the result of a very limited security role that collapsed after the end of the Cold War, and took the shape of a disoriented and shaky Japanese identity,” she wrote.

Japan, a country that suffered two nuclear bombs in WWII, has a well-justified historical “nuclear allergy” that long restrained nuclear weapons ambitions, Romei said. But today, internal questions about Japan’s national sense of identity is causing elites to reconsider the nuclear military option.

She said it’s true that the tone in that debate has been changing in recent years as Japan’s security landscape changes – North Korea and China are building up their nuclear and conventional military programs. On top of this, when the Cold War ended in 1991, the “nuclear umbrella” that the U.S. afforded Japan became “theoretically less justified in an evolving security context,” as Romei describes it. Japan, in turn, sought reassurance from the U.S. that it would not abandon her.

Rethinking Japan's security

Yet the turn of the 21^st century is hardly the first time that Japanese elites have discussed a nuclear option, or that they have felt a sense of mistrust towards their ally, she said. Rather than a break from the past, Japanese elites’ behavior suggests a continuity in their thinking:

“It would therefore be more correct to talk of a renaissance of the nuclear debate, rather than an erosion of the nuclear taboo,” Romei said.

What is new in today’s nuclear statements, however, is the increasing intertwining between rethinking security identity issues, a rising nationalism, and a more challenging regional environment, she said.

Along with the necessity to rethink Japan’s security arrangement, pre-WWII nostalgia and nationalism have been growing in Japan as Prime Minister Shinzō Abe's constitutional reforms are being enacted, Romei said. And so, some top officials are reevaluating Japan's nuclear policy in favor of a more self-sufficient approach that fits their increasingly nationalist mood.

“The line between the rethinking of a Japanese security identity and pushing a nationalist agenda into the current nuclear policy is very thin,” wrote Romei.

No longer do Japanese nationalists wish to be perceived as the “faithful dog” in the U.S-Japan alliance, as they resent the “lack of a healthy postwar nationalism,” she said. Restarting some of the country’s nuclear power plants after the Fukushima Daiichi accident was even described by one leading Japanese politician as the first step toward the country acquiring nuclear weapons of its own, she added.

Though some Japanese scholars argue that Japan has been preparing for the acquisition of nuclear weapons since the end of WWII, Romei said that the link between the two sides of the nuclear coin was never really visible in Japan: indeed, the government has historically succeeded in making a sharp distinction between nuclear power for peaceful vs. military purposes.

‘Still very sensitive’

One well-known trait of Japan’s nuclear history is that Japan has a strong popular peace and anti-nuclear movement with public opinion polls set against acquiring nuclear weapons, Romei said. Peace, security, and nuclear matters are in fact deeply linked in postwar Japanese history.

“The constant and consistent work of peace associations and the massive organized demonstrations against Prime Minister Abe’s security reform plans that took place across Japan during the entire summer in 2015 are a relevant sign that public opinion is still very sensitive to a change of pace,” she wrote.

But public opinion and elite opinion “do not speak the same language and are heading in different directions,” she wrote. Elites – political  and  thought leaders, for example – continue to allude to a nuclear option for Japan to defend itself unilaterally, with or without the American nuclear umbrella.

“This sudden proliferation of nuclear statements among Japanese elites  in 2002 has been directly linked by Japan watchers to the break out of the second North Korean nuclear crisis and the rapid buildup of China’s military capabilities,” Romei said.

Trusting America?

But those external threats, she said, are actually used as a “pretext to solve a more deep-rooted and long-standing anxiety that stems from Japan’s own unsuccessful quest for a less reactive, and more proactive post-Cold War identity,” Romei noted.

The level of trust that Japanese elites feel towards their American ally is an important leitmotiv in the country’s nuclear debate, she said.

While during the Cold War U.S. credibility was mainly linked to Japan’s limited role as an ally in a bipolar era, after the collapse of this system Japanese elites slowly began their quest for a new identity, thus questioning and changing the meaning of the U.S.-Japan alliance, Roemi said. Furthermore, the first decade of the 21^st century brought about a new nationalist layer that complicates the issue of trust in the ally by adding a populist tone to the domestic nuclear debate.

Romei believes that if the gap in elite-public opinion continues to widen, Japan’s longstanding “nuclear allergy” could be overwhelmed as the government – not necessarily by design – gradually creates the political and cultural conditions that seemingly justify building nuclear weapons, Romei said.

“The turn of the century brought a new strategic environment in which Japan was forced to question its own post-Cold War identity, without eventually succeeding in an actual change,” she wrote.

Romei urges a careful monitoring of Japan’s nuclear debate moving forward – the major political shift in the U.S. caused by the November 2016 presidential elections is a key reason. America’s future political direction will ultimately affect Japan’s sense of identity by easing the questioning of the U.S.-Japan security arrangement.

While the study of the Japanese nuclear debate cannot necessarily offer a prediction of the country’s future nuclear policy choices, it can serve as an important tool to gauge the evolution of Japan’s own perception of its role in the current world order, she said.

Romei is a nuclear security predoctoral fellow at CISAC for 2016-2017 and a doctoral candidate in international relations at Roma Tre University in Rome, Italy. Her dissertation focuses on the relationship between Japan’s nuclear mentality and its identity evolution in the post-WWII era. 

MEDIA CONTACTS:

Sayuri Romei, Center for International Security and Cooperation: (650) 725-5364, sromei@stanford.edu

Clifton B. Parker, Center for International Security and Cooperation: (650) 725-6488, cbparker@stanford.edu