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President Bush's week-long swing through six Asian nations is long overdue. Despite being home to half the world's population and the globe's most dynamic economies, Asia has received scant attention from this administration. Unfortunately the president has only one subject on his agenda -- the war on terrorism. The president is touching lightly, if at all, on the other issues that matter most to this region -- economic globalization, China's growing presence, and political instability fed by economic disparities. This is not surprising. The Bush administration doesn't seem to think much about global economic issues. And when it does speak, as it has recently on the issue of currency manipulation by China and Japan, the administration's policy is confusing and contradictory. In Asia, the single-minded focus on terrorism leaves an opening for others -- China first of all -- who are more in tune with the region's concerns. "I've never seen a time when the U.S. has been so distracted and China has been so focused,'' Ernest Bower, the head of the U.S. business council for Southeast Asia, told a business magazine.

Regional economic bloc

Faced with multiple challenges, the countries of Southeast Asia have accelerated plans to create a regional economic bloc like the European Union. The Chinese, followed closely by India and Japan, are embracing the idea, proposing the creation of a vast East Asian free trade area that would encompass nearly 2 billion people, but notably not include the United States. When national security adviser Condoleezza Rice briefed reporters on the president's trip, the focus was almost entirely on security issues. Bush's itinerary is designed to highlight the nations working closely with the United States to combat Al-Qaida-linked Islamist terror groups in Southeast Asia -- Singapore, the Philippines, Indonesia and Thailand. Or to reward those who are backing the war in Iraq -- Japan and Australia. Even at the annual Asia Pacific Economic Cooperation summit in Bangkok, Bush plans to `"stress the need to put security at the heart of APEC's mission because prosperity and security are inseparable,'' Rice said. No one can argue with that basic proposition. The example she cited was the terrorist bombing a year ago in Bali, Indonesia, which shut down tourism, a vital source of income for Indonesians. But let's not look at that link through the wrong end of the telescope. We need to grapple with the poverty and income inequality in Indonesia, the world's largest Muslim-populated nation, which feeds growing Islamic radicalism.

China drives growth

East Asia has largely emerged from the financial crisis that swept through this region in 1997-98 and sent countries such as Indonesia into economic collapse. Economic growth should pick up to almost 6 percent next year, the World Bank has predicted. But much of this is driven by China's rapid growth, which is in turn sparking a sharp rise in trade within the region, much of it between countries in the region and China. These countries look warily on this rising giant. China is sucking away foreign investment from places like Silicon Valley that used to flow to them, and with it, jobs. At the same time, progress toward a global free market that ensures fair competition has stalled. The world trade talks in Cancun last month collapsed in rancor, and the United States seems content now to pursue its own bilateral trade deals with favored countries such as Singapore and Australia.

10-nation association

This has encouraged the 10-nation Association of Southeast Asian Nations to accelerate plans to create a European Union-style economic community. The Chinese sent a huge, high-powered delegation led by their premier to their recent meeting, signed a friendship treaty with the group and pledged to negotiate a free-trade zone with the group. "The Chinese are moving in in a big way,'' says Stanford University expert Donald K. Emmerson. Where is the United States in all this? "We're outside, and our businesses are going to be outside,'' says Brookings Institution global economic expert Lael Brainard. "The Bush administration needs to get a handle on this.'' If it doesn't, the United States will wake up one day from its infatuation with unilateralism and return to Asia to find that the furniture has been rearranged and the locks have been changed.

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This seminar is part of the Shorenstein Forum Cross-Strait Seminar Series. Dr. Wu Xinbo is currently a professor at the Center for American Studies, Fudan University, and the Vice-President, Shanghai Institute of American Studies. He teaches China-U.S. relations and writes widely about China?s foreign policy, Sino-American relations and Asia-Pacific issues. Professor Wu is the author of Dollar Diplomacy and Major Powers in China, 1909?1913 (Fudan University Press, 1997) and has published numerous articles and book chapters in China, the United States, Japan, Germany, South Korea, Singapore, and India. He is also a frequent contributor to Chinese and international newspapers. Born in 1966 in Anhui Province, East China, Wu Xinbo entered Fudan University in 1982 as an undergraduate student and received his B.A. in history in 1986. In 1992, he got his Ph.D. in international relations from Fudan University. In the same year, he joined the Center for American Studies, Fudan University. In 1994, he spent one year at the George Washington University as a visiting scholar. In fall 1997, he was a visiting fellow at the Asia-Pacific Research Center, Stanford University and the Henry Stimson Center in Washington DC. From January to August 2000, he was a visiting fellow at the Brookings Institution.

Wu Xinbo Professor Center for American Studies, Fudan University
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APARC, the National Bureau of Asian Research (NBR), and the U.S.-Indonesia Society (USINDO) on October 16 released a report from the National Commission on U.S.-Indonesian Relations that assesses the current state of relations between the two countries. %people1% was a key member of this commission.

APARC, the National Bureau of Asian Research (NBR), and the U.S.-Indonesia Society (USINDO) on October 16 released a report from the National Commission on U.S.-Indonesian Relations that assesses the current state of relations between the two countries. APARC Professor Donald K. Emmerson was a key member of this commission. The report was released to the public during a press conference on Capitol Hill. Congressman Jim Leach, Chairman of the House Subcommittee on East Asia and the Pacific, joined former U.S. Ambassador to Indonesia Edward Masters and representatives of the three sponsoring organizations in presenting the report. The consensus report concludes that Indonesia is at a critical juncture in its political and economic transition. It argues that the United States should assist Indonesia in this transition by increasing its assistance, with a major focus on education. The report also recommends the creation of a "partnership" to facilitate regular dialogue between the two countries. The National Commission on U.S.-Indonesian Relations is composed of a bipartisan team of distinguished former foreign policy practitioners and prominent Indonesia specialists. The National Commission is planning a series of follow-up briefings for senior government and congressional officials in the coming months.

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Octobers and democracy in Thailand are inextricably entwined. On 14 October 1973, thirty years to the day before Dr. Pitsuwan will speak at Stanford, Field Marshal Thanom Kittikachorn, Thailand's strongman prime minister, was driven into exile. Parliamentary democracy flourished for three years until it was violently shut down in October 1976 following Thanom's return. On 12 October 2002 in Bali, extremist Muslims took more than 200 lives and made terrorism an urgent priority for Thailand and other members of the Association of Southeast Asian Nations (ASEAN). Relevant events in Southeast Asia in October 2003 include three summits--of ASEAN (Bali, 7-8 Oct.), of the Organization of the Islamic Conference (Kuala Lumpur, 16-18 Oct.), and of the Asia Pacific Economic Cooperation forum (Bangkok, 20-21 Oct.), the latter to include U.S. President George W. Bush. Dr. Pitsuwan will this unusual conjunction of anniversaries and summits to explore some of the ways in which democracy, terrorism, regionalism, and Islamism in Southeast Asia overlap and intersect. About the speaker Surin Pitsuwan served as Thailand's foreign minister from 1997 to 2001. He was the first Muslim to hold that post. He has been a member of the Foreign Affairs Committee in Thailand's House of Representatives since 1986. He has also been a columnist for Thai newspapers and a political science lecturer in Thammasat University. In 1983-84 he was a legislative assistant to U.S. Congresswoman Geraldine Ferraro. He earned a PhD from Harvard University in 1982 after graduating cum laude from the Claremont Men's College in Claremont, California.

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Surin Pitsuwan Member of Parliament Democratic Party, Thailand
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On 19 January 2001, General Angelo Reyes, then chief of staff of the armed forces, led a transfer of military support from democratically elected but disgraced President Joseph Estrada to his vice-president, Gloria Macapagal-Arroyo. A day later, Arroyo became president. At the time, the general defended his action as "promot[ing] the public good under extreme circumstances." Soon thereafter, President Arroyo named him her secretary of defense. In July 2003, nearly 300 heavily armed junior military officers seized the center of Manila?s business district, rigged explosives around the buildings, and demanded President Gloria Macapagal-Arroyo?s resignation. They accused Reyes of corruption and urged him to resign as well. Reyes denied the charge as baseless. Saying he wanted to spare his family and the armed forces further abuse, he resigned in August. In October, President Arroyo appointed him Ambassador-at-Large for Counter-Terrorism. What if any conditions justify military intervention in the name of the public interest? In this lecture, Reyes will argue that in certain extreme circumstances, civilian democracy can be served by military intervention. He will also warn, however, that such intervention can undermine democracy in the long run. Angelo Reyes' military career lasted thirty-five years. He commanded at all levels of the Philippine armed forces. His field experience included counter-insurgent operations in Mindanao and Luzon. He holds advanced degrees from the John F. Kennedy School of Government at Harvard University and the Asian Institute of Management in Manila. On Wednesday, October 1, 2003 he was appointed Ambassador-at-Large for Counter-terrorism by President Gloria Macapagal-Arroyo.

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Angelo Reyes Ambassador-at-Large for Counter-Terrorism and former Secretary of National Defense Republic of the Philippines
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This is event is sponsored by the Center for Southeast Asia Studies at the University of California, Berkeley, and takes place on the Berkeley campus. Since 1997 Indonesians have had mounting reasons to doubt their national project. Not to mention the deformation of national identity attributable to Soeharto. "We must begin again from zero," said Semar in Republik Bagong, a comedy-drama that played to packed houses in Jakarta in 2001. Zero? Surely not. But if it is not zero, what is Indonesia?

Center for Southeast Asia Studies Conference Room, 2223 Fulton Street at Kittredge, 6th floor, Berkeley, CA

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Senior Fellow Emeritus at the Freeman Spogli Institute for International Studies
Affiliated Faculty, CDDRL
Affiliated Scholar, Abbasi Program in Islamic Studies
aparc_dke.jpg PhD

At Stanford, in addition to his work for the Southeast Asia Program and his affiliations with CDDRL and the Abbasi Program in Islamic Studies, Donald Emmerson has taught courses on Southeast Asia in East Asian Studies, International Policy Studies, and Political Science. He is active as an analyst of current policy issues involving Asia. In 2010 the National Bureau of Asian Research and the Woodrow Wilson International Center for Scholars awarded him a two-year Research Associateship given to “top scholars from across the United States” who “have successfully bridged the gap between the academy and policy.”

Emmerson’s research interests include Southeast Asia-China-US relations, the South China Sea, and the future of ASEAN. His publications, authored or edited, span more than a dozen books and monographs and some 200 articles, chapters, and shorter pieces.  Recent writings include The Deer and the Dragon: Southeast Asia and China in the 21st Century (ed., 2020); “‘No Sole Control’ in the South China Sea,” in Asia Policy  (2019); ASEAN @ 50, Southeast Asia @ Risk: What Should Be Done? (ed., 2018); “Singapore and Goliath?,” in Journal of Democracy (2018); “Mapping ASEAN’s Futures,” in Contemporary Southeast Asia (2017); and “ASEAN Between China and America: Is It Time to Try Horsing the Cow?,” in Trans-Regional and –National Studies of Southeast Asia (2017).

Earlier work includes “Sunnylands or Rancho Mirage? ASEAN and the South China Sea,” in YaleGlobal (2016); “The Spectrum of Comparisons: A Discussion,” in Pacific Affairs (2014); “Facts, Minds, and Formats: Scholarship and Political Change in Indonesia” in Indonesian Studies: The State of the Field (2013); “Is Indonesia Rising? It Depends” in Indonesia Rising (2012); “Southeast Asia: Minding the Gap between Democracy and Governance,” in Journal of Democracy (April 2012); “The Problem and Promise of Focality in World Affairs,” in Strategic Review (August 2011); An American Place at an Asian Table? Regionalism and Its Reasons (2011); Asian Regionalism and US Policy: The Case for Creative Adaptation (2010); “The Useful Diversity of ‘Islamism’” and “Islamism: Pros, Cons, and Contexts” in Islamism: Conflicting Perspectives on Political Islam (2009); “Crisis and Consensus: America and ASEAN in a New Global Context” in Refreshing U.S.-Thai Relations (2009); and Hard Choices: Security, Democracy, and Regionalism in Southeast Asia (edited, 2008).

Prior to moving to Stanford in 1999, Emmerson was a professor of political science at the University of Wisconsin-Madison, where he won a campus-wide teaching award. That same year he helped monitor voting in Indonesia and East Timor for the National Democratic Institute and the Carter Center. In the course of his career, he has taken part in numerous policy-related working groups focused on topics related to Southeast Asia; has testified before House and Senate committees on Asian affairs; and been a regular at gatherings such as the Asia Pacific Roundtable (Kuala Lumpur), the Bali Democracy Forum (Nusa Dua), and the Shangri-La Dialogue (Singapore). Places where he has held various visiting fellowships, including the Institute for Advanced Study and the Woodrow Wilson International Center for Scholars. 



Emmerson has a Ph.D. in political science from Yale and a BA in international affairs from Princeton. He is fluent in Indonesian, was fluent in French, and has lectured and written in both languages. He has lesser competence in Dutch, Javanese, and Russian. A former slam poet in English, he enjoys the spoken word and reads occasionally under a nom de plume with the Not Yet Dead Poets Society in Redwood City, CA. He and his wife Carolyn met in high school in Lebanon. They have two children. He was born in Tokyo, the son of U.S. Foreign Service Officer John K. Emmerson, who wrote the Japanese Thread among other books.

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Potentially the most divisive issue to be addressed at the upcoming summit of the Association of Southeast Asian Nations (ASEAN) in Bali on October 7-8, 2003 concerns the membership of Burma. Traditionally ASEAN has been regarded as among the most successful regional institutions anywhere. Since its founding in 1967, ASEAN member states have never waged war against each other. Southeast Asia has become an enduringly peaceful security community. This achievement reflects ASEAN's commitment to the norm of national sovereignty, its refusal to violate that norm by interfering in a fellow member's domestic affairs, and its consensual style of diplomacy--the confrontation-shunning "ASEAN Way." But these facilitators of regional peace have at the same time reinforced the more or less authoritarian character of the Association's ten member regimes. Nowhere in Southeast Asia is this anomaly of an "illiberal peace" more acute than in the crisis now facing ASEAN over the lack of democracy in Burma. Recently the junta in Rangoon arrested and imprisoned the leader of the Burmese opposition, Aung San Suu Kyi. The Burmese regime was able to crack down partly because of ASEAN's adherence to the principle of sovereignty and its reluctance to allow criticism of one member state by other member states. Will ASEAN's faith in sovereignty survive? Or will the Burmese dilemma force ASEAN's leaders at the Bali summit to rethink the very meaning of the Association in a globalizing and democratizing world? Erik Kuhonta recently completed his dissertation on the politics of equitable development in Malaysia and Thailand. He specializes on the comparative and international politics of developing countries with a focus on Southeast Asia. A citizen of the Philippines, he was born in Sri Lanka, grew up in Italy, and now considers Thailand his home. Kuhonta holds a B.A. magna cum laude from the University of Pennsylvania and a Ph.D. from Princeton University.

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Erik M. Kuhonta 2003-2004 Shorenstein Fellow APARC
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APARC Professor %people1% was interviewed about the 9th ASEAN summit in Bali.

October 12th will be the first anniversary of the Bali blasts which killed a total of 202 people --mostly foreign tourists. And in a move to show regional defiance against the terrorist attack on Indonesia's holiday island, leaders of the 10-member Association of Southeast Asian Nations decided last year to hold their annual meeting in Bali (7 to 8 October). Indonesia, the world's most populous Muslim country, which is already reeling from two devastating bomb blasts in less than a year, the other being Jakarta's JW Marriott Hotel bomb blast, is determined to make this years ASEAN summit significant. As current chair of ASEAN, a role which is rotated alphabetically among the ten nations, Indonesia is well aware that the international community and media will be playing close attention to the outcome of this years ASEAN Bali summit. Which is why the Indonesians, building on Singapore's proposal that ASEAN evolves into an Economic Community by the year 2020, have proposed the creation of an ASEAN Security Community. For an assessment of this proposal, I spoke to Professor Donald K. Emmerson, Senior Fellow at Stanford University's Institute for International Studies. "The idea of a security community is an idea that so far as I know has originated not as a sort of deliberate doctrine of the Indonesian government but rather has been circulated in particular by an academic Rizal Sukma who wrote a paper and was invited to give the paper in New York by the Indonesian mission to the United Nations. "And I think its one of those rather serendipitous cases where an idea that has been circulating if you will in the academic world, on a track three basis if I can use that phrase, has been taken over. And it looks as though depending upon what happens at the summit in Bali, it will become a kind of distinctive contribution that Indonesia would make in the period when Indonesia will be running ASEAN, that is have the chairmanship. And so I think the first thing that needs to be said is as we know from past experience every chair of ASEAN by and large you know asks themselves what can we do that is distinctive. How will our chairmanship be remembered? And I think this is at least initially how Indonesia would like its Chairmanship to be remembered." Professor Emmerson, who is also Director of the Southeast Asia Forum at Stanford feels it does not necessarily follow from this that the Indonesian government has a clear and detailed blueprint for exactly what such a security community would entail. "That this is an idea that is still somewhat vague and properly so. After all the summit has not yet convened. We're still in the phase of position papers being circulated. If this is to become an ASEAN idea as opposed to just an Indonesian idea, then it taking ownership of the idea, ASEAN has to make its contribution because obviously there are ten countries involved, not just one, not just Indonesia. And so in a way, I think its unfair for us to ask too much detail from the host of the summit because after all the whole purpose is to socialize this idea within ASEAN and to get contributions from around the region". As to the reasons why this idea has risen to a fairly high position on the Indonesian agenda for ASEAN, Professor Emmerson feels "what we ought to think of is in more general terms how this could represent a meaningful contribution by Indonesia which has traditionally been identified obviously as the largest and by implication most important country in ASEAN, as a country that sets the tone, well this is the tone they're trying to set and I think it is not's surprising that it should not be a terribly detailed proposal at this early stage". There are existing instruments or mechanisms - one is the Treaty of Amity and Cooperation which basically serves as a foundation. The renouncement of the threat or use of force. Do you think these would be built upon and serve as a foundation for the ASEAN Security Community? "Well certainly such a use of the treaty would bethoroughly compatible with a broad understanding of what a security community might entail. But it is my impression that this idea is should we say at the same time also inward looking. That is to say if we look at it, what is first obvious is that the ASEAN Regional Forum (ARF), which is of course a much larger body, and it is not limited to South East Asia, it includes a variety of governments. That by implication, there is an idea here that the ASEAN Regional Forum is insufficient. That it alone cannot manage if you will the security problems that exist inside South East Asia. And it is certainly the case that the security agenda of the ARF has tended to be dominated by issues in North East Asia rather than in South East Asia. Concerns over the Korean peninsula. The Chinese of course have traditionally shied away from any multi lateral discussion of the Taiwan question which they consider to be a domestic issue. "But nevetheless the involvement of China in the ARF is of critical importance. And needless to say, if we look at the region leaving aside the issue of terrorism, which has risen obviously with particular force since the Bali bombing and then now most recently with the Marriot bombing in Indonesia. But leaving that aside one would have to say that the real security threat come not from the south but conversely from the north. "And so it is entirely plausible that Indonesian policy makers would take stock of the situation inside South East Asia and say we need a venue which is suitable for managing security inside the region. And obviously that would privilige the ASEAN Summit, the members of ASEAN rather than involving outside powers. Indeed one maybe highly speculative and here I admit I'm being extremely speculative - one might even argue that there is a logic here that says that if ASEAN can begin to organize its own house with regards to security now, then it will not have to cede the power to do so to an outsider. Whether that outsider be the United States, China, Japan or some other power". Right, looking at the summary of the Indonesian recommendations, they're proposing the idea of ASEAN Security Community by 2020. They're hoping that this will build on existing ASEAN principles and cooperation. The Indonesians hope to have an ASEAN Centre for Combating Terrorism, ASEAN Peace Keeping Training Centre, and ASEAN Maritime Surveillance Centre. Are these all feasible in the future you think? "I think they are feasible especially if the deadline is as far off as 2020. I think they are entirely feasible. Lets remember that although the idea of ASEAN being a security community is innovative because the language has not been used. If we go all the way back to the birth of ASEAN, we have to understand that there are inside the origins of ASEAN if you will, the DNA of ASEAN, there are concerns for security. The high council that was to meet to resolve inter-mural disputes among members. "The empirical fact that ASEAN's success in defending Thailand as the front line state against the Vietnamese penetration of Cambodia, which represented a signal victory given the outcome of that struggle in which the Vietnamese finally around 1989 pulled their troops back. So there was a kind of an irony at the beginning of ASEAN although it put forward a face of economic cooperation, in fact its real success was precisely in the security realm. And that's another reason why it seems to entirely feasible that some proposals, not too elaborate perhaps and not too likely to run up against the sensitivities associated with national sovereignty, might well be feasible in the future. And that yes indeed, ASEAN could become a security community. Not fully fledged, not like NATO and certainly not like SEATO which was in any case in retrospect a failure. And also not a Deutschian, you know Karl Deutsch - the American professor who really coined the phrase 'security community ' - not that kind of deep security community. But a security community that has its own techniques and instruments for conflict resolution and for conflict prevention. Including this very controversial issue which we face at the moment as to how to fight terrorism in South East Asia. "And once again I want to emphasize that traditionally Indonesian thinking with regard to the security of South East Asia has been very different for example in comparison let's say to the thinking that we associate with the view of South East Asia that tends to characterize Singaporean policy makers. The Indonesians have been much more inclined as the largest country in South East Asia to look at the region and say we don't need outsiders, we don't need a check and balance as used to be the case during the Cold War. "What we need are institutions that are domestic to the region and by implication therefore which Indonesia could influence, that will be effective in solving our problems among ourselves. I think there is a bit of that behind this proposal. And frankly I'm rather encouraged. I will say this that in so far as this proposal implies that South East Asians would take increased responsibility for their own security, including maritime security. I mean what waters on earth are the most pirate infested. We all know the answer. The answer is waters that are Indonesian or at least that border Indonesia. This is a very serious problem. And so quite apart from the issue of terrorists blowing up buildings in the name of Jihad, there are a range of security issues that South East Asians I think can constructively address. And therefore I'm quite encouraged by this proposal and I hope it will be given serious consideration in Bali."

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%people1%, CESP Senior Fellow and Director of the Program on Energy and Sustainable Development is quoted in New York Times, September 6, 2003 article.

The United States needs natural gas. Developing countries many thousands of miles away are willing to supply it. This sleepy beachfront town and other communities along the Gulf of Mexico are likely to become the links between producers and consumers.

Altogether, energy companies are planning to spend more than $100 billion in the next decade to bring gas from developing countries to rich nations, according to PFC Energy, a Washington consulting firm. The only way to do it is to supercool the gas so that it condenses into a liquid, which is then compact enough to load onto tankers and send across oceans.

For years, this process was too costly to compete with relatively cheap domestic supplies of natural gas and with imports from Canada. But those supplies are tightening just as the demand for clean-burning gas is soaring. That has led to the most severe gas shortage in the last 25 years and caused domestic gas prices to double this year.

The gap between domestic supply and total demand is forecast to grow significantly over the next 20 years. That has made liquefied natural gas competitive, if only companies can find places that are willing to accept having L.N.G. terminals built nearby. "We've entered the gas age, and there's no turning back if we want a firm supply of a strategically crucial fuel," said Michael S. Smith, an investor who controls Freeport LNG, a Houston company that plans to build a receiving terminal on Quintana Island.

Mr. Smith and his partners, Cheniere Energy and Contango Oil and Gas, both of Houston, expect to begin construction of the terminal early next year on this tiny island about 70 miles south of Houston. The $400 million operation will be able to receive ships full of liquefied natural gas, warming the gas and piping it to a nearby plant owned by the Dow Chemical Company.

Quintana Island's attraction lies not only in its proximity to a plant that uses natural gas as a raw material but also in its location near the center of the nation's energy industry. That, it is hoped, will make political resistance to such projects tepid compared with the safety, aesthetic and environmental concerns in places like Northern California and Massachusetts.

Despite such concerns and worries that large, potentially explosive gas terminals could become terrorist targets, energy companies are eager to import liquefied natural gas. It is a shift that could avoid gas shortages forecast for the future, but could also increase the nation's dependence on foreign energy supplies.

"Just as we're debating the need to diversify our oil supplies, we're faced with an array of challenges to secure reliable and politically stable sources of gas," said David G. Victor, director of the Program on Energy and Sustainable Development at Stanford University.

More than a dozen projects like the one here are seeking approval from regulators in North America, including several on the Gulf Coast and in the northern Mexican state of Baja California.

The United States is already the world's largest natural gas producer, and domestic production is expected to increase to 28.5 trillion cubic feet in 2020 from 19.1 trillion cubic feet in 2000, according to the Energy Information Administration. Still, demand is expected to far outstrip production, growing to 33.8 trillion cubic feet by 2020 from 22.8 trillion cubic feet in 2000.

The gas to close that gap - more than five trillion cubic feet, a 40 percent increase in 20 years - will have to come largely from outside the United States.

Almost all of America's imported natural gas currently comes by pipeline from Canada. But a growing market for gas within Canada and rapidly depleting Canadian wells are expected to weaken that country's ability to increase exports. Mexico, though believed to have large untapped gas reserves, is mired in nationalist debate over making it easier for foreign financiers and companies to explore for gas.

As a result, Mexico, a power in crude oil, is a growing importer of natural gas - and an attractive base for liquefied natural gas receiving terminals, which cost as much as $700 million to build. The Organization for Economic Cooperation and Development recently forecast that the percentage of North America's gas from imports would climb to 26 percent by 2030 from just 1 percent today.

Those imports will come mostly from developing nations like Equatorial Guinea, a former Spanish colony in West Africa where Marathon Oil of Houston plans to build an L.N.G. plant able to serve gas fields throughout the Gulf of Guinea.

Ambitious ventures are also under way in other West African countries, including Angola and Nigeria, where energy companies were recently burning gas escaping from oil drilling operations because there was no ready market for it. In the Middle East, small countries like Oman, a sultanate on the Strait of Hormuz, and Qatar, are emerging as important gas powers.

In South America, Trinidad and Tobago has become an early leader in exporting liquefied natural gas, although companies in Bolivia and Peru have had difficulties advancing efforts to export L.N.G. to California. Producers in Indonesia, Malaysia and Russia could step in to supply the West Coast, pushing the Andean countries to the margins of the business.

In some ways, the scramble for natural gas projects resembles the heady early days of the oil industry a century ago. Then, British, Dutch and American investors raced around the world to stake out interests in remote oil fields in the Middle East, Central Asia and the archipelagoes of the Java Sea.

Some regions are considered more promising than others. Industry executives point out that just three countries  Iran, Qatar and Russia  hold more than half of the world's natural gas reserves, inevitably focusing attention on the delicate interplay between politics and commerce in these places.

Russia, with the largest proven reserves, plans to start exporting liquefied natural gas in 2007 with deliveries to Japan. Iran, while off limits to American companies because of trade restrictions by the United States, has attracted Japanese, French, British, Indian and South Korean concerns interested in mounting gas ventures.

There are important differences, however, between past oil booms and the current interest in natural gas. For one thing, studies show the world will be swimming in natural gas supplies while oil reserves are expected to dwindle in the decades ahead. Just one area in Qatar, a monarchy near Saudi Arabia with fewer than a million people, is thought to have enough gas to supply the United States for 40 years, according to a study by Deutsche Bank.

The natural gas industry has to overcome several obstacles before evolving into a vibrant global market. Even with ample supplies there is no market for trading liquefied natural gas, as there is for crude oil. Instead, producers and customers sign long-term contracts, sometimes resulting in significant price differences from one year to the next or from one country to another.

One reason the natural gas market has remained fragmented is because the fuel is difficult and expensive to extract and transport. But these costs are declining, adding to the appeal of gas projects. Lord Browne, the chief executive of BP, said the cost of developing gas liquefaction plants had halved since the 1980's, while shipping costs had also fallen.

Shipbuilders are seeking to meet demand for tankers, with the global gas fleet expected to grow to 193 ships by 2006 from 136 in 2002, according to LNG One World, a gas- shipping information service operated by Drewry International of Britain and Nissho Iwai of Japan.

Natural gas is still not considered as crucial as oil for overall energy security since oil's main use is for transportation and there is no short-term alternative. Natural gas has a variety of important industrial uses, like serving as a raw material for fertilizer and generating electricity.

Still, the growth in demand for liquefied natural gas in the United States is expected to outstrip other parts of the world. It is likely to grow 35 percent in the next five years, compared with 20 percent in other North Atlantic countries and 12 percent worldwide, according to Deutsche Bank. Hence the rush to proceed with projects that supply liquefied natural gas to the United States.

"The world could be consuming more gas than oil by 2025," Philip Watts, the chairman of the Royal Dutch/Shell Group, the large British-Dutch energy company, said in a recent address to industry executives in Tokyo. "We must be prepared for growing geopolitical turbulence and volatility in an increasingly interdependent world."

The United States has only five terminals capable of receiving L.N.G., including one in Puerto Rico. Almost 20 are on the drawing board, but opposition to the terminals has already prevented the start of work on several of them. Earlier this year, for instance, Shell and Bechtel Enterprises shelved a plan to build a terminal about 30 miles north of San Francisco because of stiff public opposition.

California remains perhaps the most difficult place in the country to gain approval for gas-receiving terminals. This has encouraged imaginative proposals like one last month from BHP Billiton, Australia's largest energy company, for a $600 million floating terminal 20 miles off the coast of Oxnard in the southern part of the state. It remains to be seen whether any of the California projects will be built.

An air of resignation hangs over even the critics of the plan to build the terminal on Quintana, which is scheduled to start operating by 2007. Officials from Freeport LNG have told residents that they expect to make more than $1 million a year in tax payments to the city, a substantial sum for a community of 40 homes that is the smallest municipality in Texas.

At the Jetties, a restaurant on the island's edge overlooking the brown water of the Gulf of Mexico, the walls are plastered with warnings of the perceived dangers of receiving tankers full of potentially combustible gas from far-flung parts of the world. But the restaurant's employees seem to believe that the terminal will be built, inevitably changing the island's easygoing atmosphere.

"People come out here to drink beer on the beach and look at the birds and the gulf," said Dana Difatta, a cook at the restaurant. "Imagine what they'll think when they're staring at some huge vats holding natural gas. Will they be horrified or relieved?"

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August was a bloody month. There was barely time to mourn between the exploding bombs: first at the Marriott hotel in Jakarta on Aug. 5, at U.N. headquarters in Baghdad and on a bus in Jerusalem on Aug. 19, then the two in Bombay on Monday. These were the latest sites in a chronology of carnage running from Casablanca through Riyadh and Bali to Manhattan's crumbling towers.

Each atrocity involved local actors and local motives. Each was perceived differently by the local populace, and the local repercussions of each terrorist act varied widely. Yet all were attributed to a single global menace: jihad. For three years now, acts of violence done in Allah's name have made terrorism and Islam almost synonymous, not just in Westerners' vocabularies but around the world.

From this blight, who will rescue Islam?

The nearly reflexive association of Islam and terrorism is not simply the creation of rush-to-judgment pundits and politicians. Not when the terrorists proudly proclaim religious inspiration for their acts. Both Jerry Falwell and Osama bin Laden have maligned Islam. But it is, above all, the jihadists who have distilled their faith to sacred hatred - of Americans, Christians, Jews and the millions upon millions of moderate or secular Muslims who disdain this perversion from within.

Muslims respond in different ways to Islamist violence. In Jakarta a few days after 11 Indonesians and a Dutchman were killed in the blast at the Marriott, I met up with two Muslim friends. They were brimming with conspiracy theories. Why, they asked, had 20 Americans reportedly canceled their reservations before the bomb went off? Could these no-shows have known in advance of the attack? Why was the severed head of the alleged perpetrator later found on the hotel's fifth floor? Had the CIA planted it there? Why were arrests made so soon? Could the U.S., or perhaps the Indonesian military, have staged the event?

Behind their questions lay an unspoken one: How could Muslims have done such a thing?

It would be convenient if my two friends despised Americans and were products of Islamist schools. But both men hold advanced degrees from top universities in the U.S. and exhibit no obvious animosity toward Americans. That two such people could give voice to such dark misgivings about U.S. intentions shows that Islam is not alone in its association with violence.

The flip side of denial is demonization. For some in the West, the enemy is not jihadists but all Islamists. Never mind that the vast majority of Muslims who promote their faith do so peacefully. The PowerPoint charts of counter-terrorism experts that ignore Muslim diversity and feature the evil genius Bin Laden reinforce a distorted, top-down view of Islam.

Al Qaeda's responsibility is all too real. But local context matters. For jihad to succeed, an outside agitator needs inside sympathizers, and their receptivity to recruitment will depend on local circumstances. Recognizing that Muslim societies are autonomous and heterogeneous is a necessary first step to realizing that Bin Laden and his version of Islam aren't absolute control.

Defenders of Islam in the West stress the fact that most of its billion-plus adherents are moderates who reject violence. Such reassurance is far preferable to demonization. But understanding is not served by exaggerations - that Islam or Muslims are always peaceful, or that jihadists entirely lack sympathy in the Muslim world. In Muslim communities, extremist and mainstream views intersect in many places, including schools, mosques and organizations. It is in these myriad local settings that Islam's connection to violence will or won't be broken.

Regrettably, reassurance sometimes lapses into denial. In Indonesia recently, several leading Muslim figures urged journalists to stop using the words "Islam" and "Muslim" in their coverage of the Marriott bombing. I've even heard Muslims object to the phrase "moderate Muslims" because it implies the existence of immoderate ones. Islam will never be rescued by language inspectors who would substitute deflection for introspection.

Can reform rescue Islam? In principle, yes, but in practice, not necessarily. There are at least a few individuals and groups in every Muslim society striving to make the practice of their faith more tolerant of difference and dissent, less restrictive toward women, more compatible with secular democracy and less preoccupied with imposing Islamic law. Liberal American observers tend to celebrate these reformers as rescuers of Islam.

Yet the sheer diversity of Muslim societies suggests that efforts to liberalize Islamic doctrine will face varying prospects of success. Before assuming that liberals and jihadists have nothing in common, one should remember that both advocate far-reaching changes that threaten the conservative views and habits of many mainstream Muslims. Reformers deserve American support. But preventing the status quo from getting worse may be a more realistic goal of such help than winning "hearts and minds" for humanism, let alone making the Muslim world look as secular and democratic as, say, Turkey.

Is America responsible for Islam's predicament? Some U.S. actions have fueled jihad. The American presence in Iraq could become a magnet for holy warriors comparable to the Soviet occupation of Afghanistan. Muslims pressed by Washington to oppose the hijacking of Islam by jihadists may instead decry the hijacking of U.S. foreign policy by hard- liners around President Bush.

But jihadists were fighting enemies long before the United States was born. The drive to create Islamist states is more than an attempt to check American hegemony. Different U.S. policies might shrink Muslim hostility toward U.S. actions. But intransigent theocrats will not be assuaged by the compromises necessary to resolve the Israeli- Palestinian conflict. Nor will either the failure or success of U.S.-led reconstruction of Iraq remove the reasons for Islamist violence in other Muslim societies.

Also shaky is the notion that "they hate us for our values." The democracy Americans espouse remains popular in the Muslim world. American notions of equal treatment for women are less welcome. But a woman's opportunities vary among Muslim-majority countries, including those in Asia that preceded the U.S. in having female heads of state.

Americans are disproportionally responsible for a modern world most Muslims feel they never made. Extremists have used such alienation to justify jihad. But it is not up to Americans to rescue Islam.

Non-Muslims can avoid unnecessary provocations and false reassurances. They can facilitate liberal reform. But it is Muslims, acting in diverse local circumstances, who will or won't break the cycle of jihadist demonization and naive denial that is ruining the image of their religion. Whether to rescue their faith is a choice only they can make.

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