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Little more than a decade ago, Rowen's answer to the question posed by this essay's title was the year 2015. His assessment, published in the Fall 1996 issue of the National Interest, began by observing that all countries (leaving aside states that make nearly all their money from oil exports) which had attained a Gross Domestic Product per capita (GDPpc) of at least US$8,000 per year (as measured by the Purchasing-Power Parity or PPP standard for the year 1995) stood no worse than Partly Free in the ratings of political rights and civil liberties published annually by Freedom House (FH).

As China's economy was growing at a rate that promised to carry it to a level near or beyond that GDPpc benchmark by 2015, Rowen reasoned that this, the world's largest country, was a good bet to move into the Partly Free category as well. Since then, China has remained deep in Not Free territory even though its civil-liberties score has improved a bit -- from an absolutely abysmal 7 to a still-sorry 6 on the 7-point FH scale -- while its political-rights score has remained stuck at the worst level. Yet today, surveying matters from a point slightly more than midway between 1996 and 2015, Rowen stands by his main conclusion: China will in the short term continue to warrant a Not Free classification, but by 2015 it should edge into the Partly Free category. Indeed, Rowen goes further and predicts that, should China's economy and the educational attainments of its population continue to grow as they have in recent years, the more than one-sixth of the world's people who live in China will by 2025 be citizens of a country correctly classed as belonging to the Free nations of the earth.

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Gi-Wook Shin
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The year 2007 marks the 20th anniversary of South Korea's June 10 civil uprising of 1987, and the 10th year since the 1997 Asian financial crisis. To commemorate these occasions, the Korea Herald published a series of contributions from prominent foreign scholars to analyze the significant changes that Korea has undergone during the past two decades. Shorenstein APARC Director Gi-Wook Shin wrote the op-ed below, on the problems of Korean nationalism.

When the Virginia Tech massacre shook American society, Koreans and Korean-Americans alike nervously responded with a deep sense of collective guilt. Many first-generation immigrants took it upon themselves to apologize for the actions of gunman Cho Seung-hui on the grounds that they all share the same Korean ethnicity (meaning blood).

South Korea's ambassador to Washington, Lee Tae-shik, went so far as to say that the Korean- American community needed to "repent," suggesting a 32-day fast, one day for each victim, to prove that Koreans were a "worthwhile ethnic minority in America." The South Korean government offered to send an official delegation to the funerals of the victims.

This episode may seem bizarre or perplexing to non-Koreans since most ethnicities (including Americans) don't have that strong sense of collective responsibility. Yet this incident well illustrates Korea's psyche, i.e., deeply rooted ethnic national identity, which remains strong today.

Korea has been democratizing and globalizing for the last two decades but neither force has weakened the power of nationalism. On the contrary, it has only become stronger.

How can we explain this phenomenon of persistent ethnic nationalism in a country at the forefront of globalization? Where does such a tradition of collectivistic, ethnic identity come from? What are the positive and negative aspects of ethnic nationalism in Korea? How can Korea, as it is becoming a multiethnic society, deal with it in a globalizing world?

Origins and History

Historically Koreans have developed a sense of nation based on shared blood and ancestry. The Korean nation was "ethnicized" or "racialized" through a belief in a common prehistoric origin, producing an intense sense of collective oneness.

Ethnicity is generally regarded as a cultural phenomenon based on a common language and history, and race understood as a collectivity defined by innate and immutable phenotypic and genotypic characteristics. However, Koreans have not differentiated between the two. Instead, race served as a marker that strengthened ethnic identity, which in turn was instrumental in defining the notion of nation. Koreans are said to believe that they all belong to a "unitary nation" ("tanil minjok"), one that is ethnically homogeneous and racially distinctive from its neighbors.

This sense of ethnic homogeneity, contrary to the popular "prehistoric origin" belief, took root in the early 20th century. Faced with imperialist encroachments, from both the East (Japan) and West, Koreans developed the notion of a unitary nation to show its autonomy and uniqueness. For Korea, which had a long history of political, linguistic, and geographic continuity, the internal issues of political integration or geographic demarcation were less important than the threat of imperialism. Enhancement of collective consciousness and internal solidarity among Koreans against the external threat was more urgent. As a result, the ethnic base or racial genealogy of the Korean nation was emphasized.

Sin Chae-ho, a leading nationalist of the time, for instance, presented Korean history as one of the "ethnic nation" ("minjoksa") and traced it to the mythical figure Tangun. According to him, the Korean people were descendants of Tangun Chosun, who merged with the Puy of Manchuria to form the Kogury people. This original blend, Sin contended, remained the ethnic or racial core ("chujok") of the Korean nation, a nation preserved through defense and warfare against outside forces. The nation was defined as "an organic body formed out of the spirit of a people descended through a single pure bloodline" that would last even after losing political sovereignty.

The need to assert the distinctiveness and purity of the Korean nation grew more important under colonial rule, especially as Japan attempted to assimilate Koreans into its empire as "imperial subjects." The assimilation policy was based on colonial racism, which claimed that Koreans and Japanese were of common origin but the former always subordinate.

The theory was used to justify colonialist policies to replace Korean cultural traditions with Japanese ones in order to supposedly get rid of all distinctions and achieve equality between the two nations. Yet colonial assimilation policy meant changing Korean names into Japanese, exclusive use of Japanese language, school instruction in the Japanese ethical system, and Shinto worship. Koreans resented and resisted the policy by asserting their unique and great national heritage. Yi Kwang-su, a leading figure at the time, claimed that bloodline, personality, and culture are three fundamental elements defining a nation and that "Koreans are without a doubt a unitary nation ("tanil han minjok") in blood and culture." Such a view was widely accepted among Koreans: to impugn the natural and unique character of the Korean ethnic nation during colonial rule would have been tantamount to betraying Koreanness in the face of the imperial challenge of an alien ethnic nation. Ironically, Japanese rule reinforced Koreans' claim to a truly distinct and homogeneous ethnic identity.

After independence in 1945, and despite peninsular division into North and South, the unity of the Korean ethnic nation or race was largely taken for granted. Neither side disputed the ethnic base of the Korean nation, spanning thousands of years, based on a single bloodline of the great Han race. Instead, both sides contested for the sole representation of the ethnically homogeneous Korean nation.

Even today, Koreans maintain a strong sense of ethnic homogeneity based on shared blood and ancestry, and nationalism continues to shape Korean politics and foreign relations. Many ethnic Koreans overseas share this sense of ethnic homogeneity, which can explain the response by the Korean American community to the Virginia Tech massacre.

Prize and Price

Ethnic nationalism has been a crucial source of pride and inspiration for the Korean people during the turbulent years of their nation's transition to modernity that involved colonialism, territorial division, war, and dictatorship. It has enhanced collective consciousness and solidarity against external threats and has served Korea's modernization well. Nationalism is also the underlying principle of guiding the current globalization process in the South.

In the North, ethnic national consciousness offered the grounds for the formation of a belief that Koreans are a chosen people, a position that became the epistemological basis for the juche ideology and the recent "theory of the Korean nation as number one." Ethnic nationalism could also play an integrative role in a unification process, as this self-ascribed identity of homogeneity can serve as the basis for the initial impetus toward unification, if not as the stable foundation of a unified Korea.

At the same time, such a blood-based ethnic national identity became a totalitarian force in politics, culture, and society. Individuals were considered only part of an abstract whole, and citizens were asked to sacrifice individual freedom and civil rights for the collectivity.

Nation was also used as a trump card to override other competing identities as well as to justify violations of human and civic rights in both Koreas in the name of the "nation." The power of nationalism has thus hindered cultural and social diversity and tolerance in Korean society.

The dominance of collectivistic, ethnic nationalism constrained space for liberalism in the public sphere. In its formative years of nation building, nationalism developed in opposition to liberalism and these two ideologies were mistakenly positioned against each other. This historical legacy led to the poverty of modern thought in Korea, including liberalism, conservatism, and radicalism. A lack of a liberal base, for instance, made Korean conservatism highly vulnerable to manipulation by authoritarian leaders.

Ironically, the very belief in ethnic unity has also produced tension and conflict between the two Koreas over the last half-century. The prevailing sense of unity in the face of territorial partition has provoked contention over who truly represents the Korean ethnic nation versus who is at fault for undermining that Korean unity. This battle for true national representation helps to explain highly charged inter-Korea conflict, including the Korean War that killed millions of fellows in the name of "national liberation."

Challenges and Future Tasks

Ethnic nationalism will remain an important organizing principle of Korean society. Neither democratization nor globalization has been able to uproot the power of nationalism. It would thus be wrong and dangerous to ignore or underestimate its power, treating it as a mere myth or something to pass away in due course. At the same time, we can't remain simply content with its current role, either.

Instead, it should be recognized that ethnic nationalism has become a dominant force in Korean society and politics and that it can be oppressive and dangerous when fused with racism and other essentialist ideologies. Koreans must strive to find ways to mitigate its potential harmful effects and use it in constructive manner. In particular, Koreans must promote cultural diversity and tolerance, and establish democratic institutions that can contain the repressive, essentialist elements of ethnic nationalism.

This important task is urgent because Korea, on the contrary to popular perception, is becoming a multiethnic society. Today about a half-million migrant labor workers, with the majority coming from China and Southeast Asia, live in the South. Only a decade ago, the number was less than one hundred thousand. Similarly more than one out of 10 marriages is "international," meaning that the spouse is nonethnic Korean (reaching 13.6 percent in 2005). Considering that the figure was only 1.7 percent in 1994, Korea is fast becoming a multiethnic society.

Despite new realities, however, perception and institutions are slow to change. Most Koreans still have stronger attachment to "ethnic Koreans living in foreign countries" than to "ethnic non-Koreans living in Korea." It is also much easier for a Korean-American who to "recover" Korean citizenship than for an Indonesian migrant worker living in Korea to obtain Korean citizenship. This is true even if the Indonesian worker might be more culturally and linguistically Korean than a Korean-American.

The principle of "bloodline" or jus sanguinis still defines the notions of Korean nationhood and citizenship, which are often inseparable in the minds of Koreans. In its formative years, Koreans stressed the ethnic base of nation without a corresponding attention to its civic dimension, i.e. citizenship. After colonial rule, neither state (North or South) paid adequate attention or made serious effort to cultivate a more inclusive notion of citizenship.

Social institutions that can address issues of discrimination against ethnic non-Koreans (e.g., ethnic Chinese known as "hwagyo") have been overlooked and underdeveloped. The Korean nationality law based on jus sanguinis legitimizes consciously or unconsciously discrimination against foreign migrant workers by explicitly favoring ethnic Koreans.

Korea needs to institutionalize a legal system that mitigates unfair practices and discrimination against those who do not supposedly share the Korean blood. Koreans need an institutional framework to promote a national identity that would allow recognition of ethnic diversity and cultural tolerance among the populace, rather than appeal to an ethnic consciousness that tends to encourage a false uniformity and then enforcing conformity to it.

They should envision a society in which they can live together, not simply as fellow ethnic Koreans but as equal citizens of a democratic polity. In fact, it is only a matter of time before Koreans will face serious challenges living in a multiethnic society (e.g., children of ethnically mixed couples, civic rights of migrant labor workers) that it is unprepared to resolve. Preparing for such challenges through public education and legal institutions won't be an easy task and should be an integral part of democratic consolidation processes that are currently under way.

Discussion of unification is premature and problematic if unification occurs without such adjustments. As the German unification experience shows, a shared ethnic identity alone will not be able to prevent North Koreans from becoming "second-class citizens" in a unified Korea. Even worse, because of higher expectations resulting from a shared sense of ethnic unity, a gap between identity (ethnic homogeneity) and practice (second-class citizens) will add more confusion and tension to the unification process.

All said, Koreans should strive to promote ethnic diversity and cultural tolerance, and develop proper legal institution so that all can live together in a multiethnic or unified Korea as equal citizens of a democratic polity. This task will be all the more important and urgent as Korea consolidates democracy, globalizes its economy, and prepares for national unification.

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Session I: What are Deliberation and Clumsiness?

Loren King, MIT

"Democracy and Deliberation: A Review of Recent Theories and Proposals"

Michael Thompson, University of Bergen

"Clumsiness: It's as Easy as Falling off a Log"

Session II: UN & International Environmental Regimes

Tom Heller, Stanford University

"Clumsy Institutions against Global Warming"

Session III: EMU & WTO

Susanne Lohmann, UCLA

"Sollbruchstelle: Mass Democracy, Deep Uncertainty and Institutional Design"

Rob Howse, University of Michigan

"Democracy, Science, and Free Trade: Risk Regulation on Trial at the WTO"

Session IV: World Bank, IMF & International Labor Standards

Archon Fung, Harvard University

"Globalizing with a Human Face: How Deliberation, Transparency, and Competition Can Improve International Labor Standards"

Marco Verweij, Max Planck Institute in Bonn

"The Need to Make the World Bank & IMF Clumsier"

Session V: General Discussion

Introduced and chaired by Joseph Steiglitz, Stanford University

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Born in 1930, Kurt H. Biedenkopf studied political science at Davidson College, North Carolina, concentrated in law at universities in Munich and Frankfurt, earned his Doctor of Laws in 1958 and received his Master of Law from Georgetown University in 1962. His teaching career began at Ruhr University Bochum in 1963 as Professor of Law and served as Rector from 1967 to 1969. From 1968 to 1970, Professor Biedenkopf chaired the Federal Government Commission on Co-determination and from 1970 to 1973, he was Executive Board member of the Henkel Corporation in Dusseldorf.

Kurt Biedenkopf has held numerous positions in the Christian Democratic Union (CDU) party, including General Secretary (1973-1977), Vice President (1977-1983), and President of North Rhine-Westphalia Regional Association (1977-1987). From 1976 to 1980, and again from 1987-1990, Professor Biedenkopf was a member of the Federal Parliament (Bundestag) and in 1977, he served as Chairman of the Institute for Economic and Social Policy in Bonn. From 1980 to 1988, he was a member of the Regional Parliament (Landtag) of North Rhine-Westphalia. Besides he published several books and was awarded honorary doctorates by Davidson College, Georgetown University and Catholic University by Brussels.

In 1990 during the transitional period to democracy and market economy he was Guest Professor of Law at Leipzig University. In this time he was leading the Christian Democratic Union of Saxony to success in the in the first free election after German unification 1990. Since he has been a member of the Regional Parliament and sworn in as first Minister President of Saxony. His re-election was on October 6, 1994, and once again on September 9, 1999. Since November 1, 1999 (until October 31, 2000), he is President of the Deutscher Bundesrat.

Walter P. Falcon Lounge

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The possibility of terrorists obtaining and using a nuclear bomb cannot be ignored, write CISAC's William J. Perry and Michael M. May and Ashton Carter, at Harvard, who co-directs the Preventive Defense Project with Perry. Their op-ed, "After the bomb," in the New York Times, argues the federal government should plan for how it would take charge, save lives, maintain order, and guide citizens in making evacuation decisions if such a disaster were to occur. The three experts on nuclear weapons and nonproliferation outline key considerations for planning an effective response to a terrorist nuclear attack -- a response that would preserve lives and democracy.

The probability of a nuclear weapon one day going off in an American city cannot be calculated, but it is larger than it was five years ago. Potential sources of bombs or the fissile materials to make them have proliferated in North Korea and Iran. Russia's arsenal remains incompletely secured 15 years after the end of the Soviet Union. And Pakistans nuclear technology, already put on the market once by Abdul Qadeer Khan, could go to terrorists if the president, Gen. Pervez Musharraf, cannot control radicals in that country.

In the same period, terrorism has surged into a mass global movement and seems to gather strength daily as extremism spills out of Iraq into the rest of the Middle East, Asia, Europe and even the Americas. More nuclear materials that can be lost or stolen plus more terrorists aspiring to mass destruction equals a greater chance of nuclear terrorism.

Former Senator Sam Nunn in 2005 framed the need for Washington to do better at changing this math with a provocative question: On the day after a nuclear weapon goes off in a American city, "what would we wish we had done to prevent it?" But in view of the increased risk we now face, it is time to add a second question to Mr. Nunn's: What will we actually do on the day after? That is, what actions should our government take?

It turns out that much could be done to save lives and ensure that civilization endures in such terrible circumstances. After all, the underlying equation would remain a few terrorists acting against all the rest of us, and even nuclear weapons need not undermine our strong societies if we prepare to act together and sensibly. Sadly, it is time to consider such contingency planning.

First and foremost, the scale of disaster would quickly overwhelm even the most prepared city and state governments. To avoid repeating the Hurricane Katrina fiasco on a much larger scale, Washington must stop pretending that its role would be to support local responders. State and local governments--though their actions to save lives and avoid panic in the first hours would be essential--must abandon the pretense that they could remain in charge. The federal government, led by the Department of Homeland Security, should plan to quickly step in and take full responsibility and devote all its resources, including those of the Department of Defense, to the crisis.

Only the federal government could help the country deal rationally with the problem of radiation, which is unique to nuclear terrorism and uniquely frightening to most people. For those within a two-mile circle of a Hiroshima-sized detonation (in Washington, that diameter is the length of the Mall; in New York, three-fourths the length of Central Park; in most cities, the downtown area) or just downwind, little could be done. People in this zone who were not killed by the blast itself, perhaps hundreds of thousands of them, would get radiation sickness, and many would die.

But most of a city's residents, being further away, would have more choices. What should they do as they watch a cloud of radioactive debris rise and float downwind like the dust from the twin towers on 9/11? Those lucky enough to be upwind could remain in their homes if they knew which way the fallout plume was blowing. (The federal government has the ability to determine that and to quickly broadcast the information.) But for those downwind and more than a few miles from ground zero, the best move would be to shelter in a basement for three days or so and only then leave the area.

This is a hard truth to absorb, since we all would have a strong instinct to flee. But walking toward the suburbs or sitting in long traffic jams would directly expose people to radiation, which would be the most intense on the day after the bomb goes off. After that, the amount would drop off day by day (one third as strong after three days, one fifth as strong after five days, and so on), because of the natural decay of the radioactive components of the fallout.

More tough decisions would arise later. People downwind could leave their homes or stay, leave for a while and then come back or leave and come back briefly to retrieve valuables. The choices would be determined by the dose of radiation they were willing to absorb. Except in the hot zone around the blast and a few miles downwind, even unsheltered people would not be exposed to enough radiation to make them die or even become sick. It would be enough only to raise their statistical chance of getting cancer later in life from 20 percent (the average chance we all have) to something greater--21 percent, 22 percent, up to 30 percent at the maximum survivable exposure.

Similar choices would face first responders and troops sent to the stricken area: how close to ground zero could they go, and for how long? Few would choose to have their risk of death from cancer go up to 30 percent. But in cases of smaller probabilities--an increase to 20.1 percent, for example--a first responder might be willing to go into the radiation zone, or a resident might want to return to pick up a beloved pet. These questions could be answered only by the individuals themselves, based on information about the explosion.

Next comes the unpleasant fact that the first nuclear bomb may well not be the last. If terrorists manage to obtain a weapon, or the fissile material to make one (which fits into a small suitcase), who's to say they wouldn' have two or three more? And even if they had no more weapons, the terrorists would most likely claim that they did. So people in other cities would want to evacuate on the day after, or at least move their children to the countryside, as happened in England during World War II.

The United States government, probably convened somewhere outside Washington by the day after, would be urgently trying to trace the source of the bombs. No doubt, the trail would lead back to some government--Russia, Pakistan, North Korea or other countries with nuclear arsenals or advanced nuclear power programs--because even the most sophisticated terrorist groups cannot make plutonium or enrich their own uranium; they would need to get their weapons or fissile materials from a government.

The temptation would be to retaliate against that government. But it might not even be aware that its bombs were stolen or sold, let alone have deliberately provided them to terrorists. Retaliating against Russia or Pakistan would therefore be counterproductive. Their cooperation would be needed to find out who got the bombs and how many there were, and to put an end to the campaign of nuclear terrorism. It is important to continue to develop the ability to trace any bomb by analyzing its residues. Any government that did not cooperate in the search should of course face possible retaliation.

Finally, as buildings and lives were destroyed, so would the sense of safety and well-being of survivors, and this in turn could lead to panic. Contingency plans for the day after a nuclear blast should demonstrate to Americans that all three branches of government can work in unison and under the Constitution to respond to the crisis and prevent further destruction.

A council of, say, the president, the vice president, the speaker of the House and the majority leader of the Senate, with the chief justice of the Supreme Court present as an observer, could consider certain aspects of the government's response, like increased surveillance. Any emergency measures instituted on the day after should be temporary, to be reviewed and curtailed as soon as the crisis ends.

Forceful efforts to prevent a nuclear attack--more forceful than we have seen in recent years--may keep the day from coming. But as long as there is no way to be sure it will not, it is important to formulate contingency plans that can save thousands of lives and billions of dollars, prevent panic and promote recovery. They can also help us preserve our constitutional government, something that terrorists, even if armed with nuclear weapons, should never be allowed to take away.

William J. Perry, a professor at Stanford, and Ashton B. Carter, a professor at Harvard, were, respectively, the secretary and an assistant secretary of defense in the Clinton administration. Michael M. May, also a professor at Stanford, is a former director of the Lawrence Livermore National Laboratory.

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WASHINGTON, May 24 (IPS) - This year the Association of Southeast Asian Nations celebrates its 40th birthday, and it has big plans. After four decades of being largely a political and security alliance, ASEAN is accelerating its plans for economic integration.

ASEAN leaders are so eager to pull together into an economic community that they recently decided to move the goalposts. The economic benchmarks originally planned for 2020 have been moved up to 2015.

"The mission of this economic community is to develop a single market that is competitive, equitably developed, and well integrated in the global economy," says Worapot Manupipatpong, principal economist and director of the office of the Secretary-General in the ASEAN Secretariat. He was speaking last week at an Asian Voices seminar in Washington, DC, sponsored by the Sasakawa Peace Foundation.

The single market of 2015 would encompass all ten members of ASEAN: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma), Philippines, Singapore, Thailand, and Vietnam. According to the projections of the ASEAN Secretariat, the single market will be accomplished by removing all barriers to the free flow of goods, services, capital, and skilled labor. Rules and regulations will be simplified and harmonised. Member countries will benefit from improved economies of scale. Common investment projects, such as a highway network and the Singapore--Kunming rail link, will facilitate greater trade.

Although there will not be a single currency like the European Union's euro, the ASEAN countries will nevertheless aim for greater currency cooperation.

"ASEAN's process of economic integration was market-driven," says Soedradjad Djiwandono former governor of Bank Indonesia, and it was influenced by the "Washington consensus" favoring increased liberalisation. "It is a very different framework from the closed regionalism of the Latin American model," he continues. With multilateral talks on trade liberalisation stalled, efforts have largely shifted to bilateral negotiations. "There has been a proliferation of bilateral agreements that developed countries use as a way to push a program for liberalising different sectors," Djiwandono concludes.

So far, ASEAN points to increased trade within the ten-member community as an early sign of success. But, overall trade share -- 25 percent -- pales in comparison to the 46 percent share of the North American Free Trade Agreement countries or the 68 percent share of EU countries. And with intra-ASEAN foreign direct investment rather low -- only 6 percent in 2005 -- financial integration lags behind trade integration.

The ASEAN approach differs in several key respects from the EU model, which originated in a 1951 coal and steel agreement among six European nations. ASEAN's origins, in contrast, have been primarily political and security-oriented, observes Donald Emmerson, director of the South-east Asia Forum at the Shorenstein Asia-Pacific Research Center at Stanford. "The success attributed to ASEAN is that it presided over an inter-state peace ever since it was formed. There's never been a war fought between ASEAN members."

Also distinguishing ASEAN from EU is the latter's institutionalisation. "ASEAN is radically different," Emmerson continues. "The much discussed ASEAN way is consultation, not even voting, since if they vote, someone will lose. Sometimes the consultation goes on without result. Sometimes decisions are reduced to the lowest common denominator. It also means that rhetoric predominates." This consultative process will be tested in November, when ASEAN leaders gather to adopt a charter, something that the EU has so far failed to accomplish.

Another difference with Europe is the enormous economic disparities among the ASEAN members, with Singapore and Brunei among the richest countries in the world and Laos among the poorest. These economic disparities are reproduced within the countries as well.

Worapot Manupipatpong points to two ASEAN initiatives for closing the gap. There is help for small and medium-sized enterprises. And the Initiative for ASEAN Integration,"basically provides technical assistance to Cambodia, Laos, and Myanmar so that they can catch up with the rest of the ASEAN members," he says. "Attention will be paid to where these countries can participate in the regional networks, what comparative advantage they have, and how to enhance their capacities to participate in the regional development and supply chain."

Then there are ASEAN's efforts to address "public bads," according to Soedradjad Djiwandono. "When there is a tsunami or a pandemic," he argues, "the worst victims are the marginalised or the poor. Addressing that kind of issue has some positive impact on reducing inequality."

"The gap between the early joiners and the later joiners will continue to be substantial because ASEAN has always been more of a forum and less of a problem-solving organisation," observes Karl Jackson, director of the Asian Studies Program at the School for Advanced International Studies at Johns Hopkins University. "As a result one would expect that these gaps would be closed only as individual countries increase their rates of growth." He attributes the inequality within countries to the middle stage of growth experienced by almost all societies: "Inequality increases before the state becomes strong enough to redivide some of the pie and take care of the gross inequalities caused by rapid economic growth."

ASEAN is banking on financial and trade liberalisation increasing the overall regional pie. On paper it is an ambitious project. But "the low hanging fruit have been plucked," says Donald Emmerson. Tariffs on the "easy commodities" have already been reduced to less than 5 percent. But non-tariff barriers to trade remain, and member countries are very protective of certain sectors.

Also tempering the region's optimism is the memory of the Asian financial crisis. The crisis began in Thailand in 1997 and spread rapidly to other countries in the region. One school of thinking holds that capital mobility -- "hot money" -- either caused or considerably aggravated the crisis. Since the ASEAN integration promises greater capital mobility, will the region be at greater risk of another such crisis?

"One consequence of the economic dynamism of the Asia-Pacific region," notes Donald Emmerson, "is that the accumulation of vast foreign exchange reserves -- obviously in China, but in other countries too -- more than anything else represents an asset that can be brought into the equation as a stabilising factor in the event of a financial crisis." Also, he continues, as a result of the ASEAN plus Three network, which adds China, South Korea, and Japan to the mix, the 13 countries have "made serious headway toward establishing currency swap arrangements that would come into play in an emergency on the scale of an Asian financial crisis."

Karl Jackson also looks to currency reforms as a hedge against future crisis. The Thai baht and the Indonesian rupiah are now unpegged currencies. "You will not have a situation in which the central bank of Thailand loses 34 billion US dollars defending the baht," Jackson argues. "Instead, the baht will appreciate or depreciate according to market forces."

But Jackson still remains cautious about the future. He points to the large number of non-performing loans in the Chinese banking sector. Also, there is "this anomaly of the U.S. absorbing two-thirds of the savings coming out of Asia, plugging it mostly into consumption rather than direct investment," he observes. "Eventually there has to be some kind of readjustment. The real value of the dollar must fall." (END/2007)

Reprinted by permission from IPS Asia-Pacific.

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This research aims at explaining the apparently higher breakdown rate of presidential democracies over parliamentary ones. It shows that the alleged greater negative effect of presidential regimes on democratic breakdown than parliamentary democracies would disappear, not just when military legacy is considered, but also when the effectiveness or power of legislatures is taken into account.

Speaker Bio

Ming Sing is Associate Professor at the Department of Public and Social Administration, City University of Hong Kong. He is a Visiting Fulbright Scholar at the School of International Relations and Pacific Studies, University of California, San Diego (2006-07).

His current research interests are comparing political culture in Asia and institutional engineering in the world. He joined the Asiabarometer Survey Team in 2006 exploring political culture of all Asian societies in relation to democracy He has been doing research on institutional and non-institutional factors shaping global democratic breakdown longitudinally.

He has published on various aspects of democratization in Hong Kong and is the author and editor of three books: Hong Kong's Tortuous Democratization: a Comparative Analysis (New York: RoutledgeCurzon, 2004), and Hong Kong Government & Politics (New York: Oxford University Press, 2003). His third book (University of Hong Kong, 2007) focuses on the institutional engineering and governance problems in Hong Kong. He has also published articles in Government & Opposition, Democratization, East Asia, China Information, Chinese Law & Government, Journal of Contemporary Asia, International Journal of Public Administration and elsewhere.

Encina Ground Floor Conference Room

Ming Sing Associate Professor, City University of Hong Kong; Visiting Fulbright Scholar, UCSD Speaker
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