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Asia Unbound

CFR experts give their take on the cutting-edge issues emerging in Asia today.

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Showing posts for "Economics"

Challenges and Benefits of South Korea’s Middle Power Aspirations

by Scott A. Snyder
World leaders attend the opening plenary session of the G20 Summit in Seoul on November 12, 2010. (Yonhap Photo/Couresty: Reuters) World leaders attend the opening plenary session of the G20 Summit in Seoul on November 12, 2010. (Yonhap Photo/Couresty: Reuters)

South Koreans have been among the world’s early adopters in globalization over the past two decades, going from outpost to “node” by embracing networks, connectivity, and economic interdependence in startling fashion in a very short period of time. It has been commonplace for most South Koreans to think of themselves as a small country, buffeted by geostrategic factors beyond its control, consigned to its fate as a “shrimp among whales.” This narrative, generally speaking, conforms with the twentieth century historical experience on the Korean peninsula, which witnessed annexation, colonization, subjugation, and a moment of liberation, followed by division, war, and marginalization as an outpost of the Cold War. Outsider impressions of late twentieth century Korea tended to view Koreans as defensive, self-absorbed, xenophobic to varying degrees, and only capable of viewing the outside world through a distinctively “Korean” lens. Read more »

Guest Post: China’s “Back to the Countryside” Policy: A Step Toward Reducing Rural-Urban Disparity

by Guest Blogger for Adam Segal
china rural villages migrants migrant workers migration entrepreneurship small business entrepreneur policy Farmers plant rice seedlings in a field near a residential compound in Shaxi township, Guangdong province March 29, 2015. China's leaders hope to encourage migrant workers to leave cities and return to their home villages to start small businesses. (Stringer/REUTERS)

By Lincoln Davidson

Lincoln Davidson is a research associate for Asia Studies at the Council on Foreign Relations.

Earlier this week, the Chinese government announced a set of policies aimed at encouraging migrants from rural areas to the cities to return to their hometowns and start businesses. The policy guidelines direct local governments to encourage migrant workers (as well as university graduates and discharged soldiers) to take the capital, skills, and experience they’ve acquired in urban areas back to underdeveloped rural areas and engage in entrepreneurship. These policies—think of them as the newest iteration of Deng Xiaoping’s “let some get rich first”—are a solid step towards promoting genuine market-driven development. Read more »

Friday Asia Update: Top Five Stories for the Week of April 17, 2015

by Guest Blogger for Elizabeth C. Economy
Local residents and their supporters celebrate after the Fukui District Court issued an injunction to prevent the restart of two nuclear reactors at Takahama nuclear power plant, in front of the court in Fukui, northwestern Japan, in this photo taken by Kyodo April 14, 2015. (Kyodo/Courtesy: Reuters) Local residents and their supporters celebrate after the Fukui District Court issued an injunction to prevent the restart of two nuclear reactors at Takahama nuclear power plant, in front of the court in Fukui, northwestern Japan, in this photo taken by Kyodo April 14, 2015. (Kyodo/Courtesy: Reuters)

Ashlyn Anderson, Lauren Dickey, Darcie Draudt, William Piekos, and Ariella Rotenberg look at the top stories in Asia today.

1. Japan court blocks reopening of nuclear reactors. A Japanese district court issued orders for two nuclear reactors in western Fukui prefecture to stay offline, rejecting regulators’ safety approval of the planned restart later this year. The court criticized the Nuclear Regulation Authority’s lax safety standards, particularly in the wake of the March 2011 Fukushima crisis. Kansai Electric, the operators of the reactors in Fukui, plan to file a protest asking the court to reverse its decision. With all forty-eight commercial reactors in Japan still offline, the decision may further delay Prime Minister Shinzo Abe’s plans to restart nuclear reactors. Abe has said the shutdown damages the struggling Japanese economy, forcing Japan to import expensive fossil fuels to compensate for the existing energy deficit. Read more »

Thailand’s Teflon Economy Finally Seems to Be Cracking

by Joshua Kurlantzick
thailand-tourism-campaign Performers take part in a parade during the "2015 Discover Thainess" campaign, an event held to promote tourism, in Bangkok on January 14, 2015. (Chaiwat Subprasom /Courtesy: Reuters)

For nearly fifteen years in the 2000s and early 2010s, Thailand’s economy, once one of the fastest-growing in the world, survived the effects of near-constant political turmoil, natural disasters, and worries about the country’s future in the wake of a looming royal succession. Even after the massive floods in the monsoon season of 2011 that destroyed much of the industrial estates north of Bangkok, home to auto parts, disk drive, and other key manufacturing plants, Thailand’s economy rebounded strongly. Read more »

IMF Worried About Bangladesh’s Growth

by Alyssa Ayres
Women work at Goldtex Limited garment factory inside the Dhaka Export Processing Zone (DEPZ) in Savar on April 11, 2013 (Andrew Biraj/Courtesy: Reuters). Women work at Goldtex Limited garment factory inside the Dhaka Export Processing Zone (DEPZ) in Savar on April 11, 2013 (Andrew Biraj/Courtesy: Reuters).

Bangladesh has been wracked by political protests over the past two years. Paradoxically, despite the country’s dysfunctional politics, its economy has done well. Last year, the all-important garment sector defied the odds and actually grew around 14 percent between July 2013 and May 2014. This insulation of the economy from the country’s toxic politics may be coming to an end, however. Since early January, the opposition Bangladesh Nationalist Party (BNP) has led street protests (hartals) along with transportation blockades. For the last two months, the daily strikes and protests have continued, keeping the country at a low boil, and resulting in the death of more than 120 people. Read more »

The Indian Budget: Cautious But Resolute

by Alyssa Ayres
A staff member (L) passes a pen to Indian Finance Minister Arun Jaitley before making the final touches to the federal budget 2015/16 in New Delhi on February 27, 2015 (Adnan Abidi/Courtesy: Reuters). A staff member (L) passes a pen to Indian Finance Minister Arun Jaitley before making the final touches to the federal budget 2015/16 in New Delhi on February 27, 2015 (Adnan Abidi/Courtesy: Reuters).

In a country whose media exists in a perpetual fever-pitch of excitement, a consensus has formed around the first full-year budget of the Narendra Modi government presented on February 28, 2015: No big bang reforms. For those who have not been following this closely, here are the highlights, along with links to primary sources for further reading. Read more »

Deglobalization Remains a Powerful Trend

by Joshua Kurlantzick
U.S. President Barack Obama (C) meets with the leaders of the Trans-Pacific Partnership (TPP) countries in Beijing November 10, 2014. Leaders have gathered in Beijing for the Asia Pacific Economic Cooperation (APEC) summit. Obama will also travel to Myanmar and Australia during his week-long trip to Asia. REUTERS/Kevin Lamarque (CHINA - Tags: POLITICS BUSINESS) U.S. President Barack Obama (C) meets with the leaders of the Trans-Pacific Partnership (TPP) countries in Beijing on November 10, 2014 (Kevin Lamarque/Courtesy Reuters).

During a seemingly successful trip to Asia last November, U.S. President Barack Obama announced several breakthroughs. Among them was a promise that the United States and Asian nations would proceed toward the Trans-Pacific Partnership (TPP) free trade deal. Obama and Chinese President Xi Jinping also announced a new climate deal, the first between the two powers, which will commit both the United States and China to significant emissions cuts over the next two decades. Read more »

Where to Look for the Next Jack Ma?

by Yanzhong Huang
Alibaba Group Executive Chairman Jack Ma delivers a keynote speech during the Cross-Strait CEO Summit in Taipei, December 15, 2014. (Pichi Chuang/ Courtesy: Reuters). Alibaba Group Executive Chairman Jack Ma delivers a keynote speech during the Cross-Strait CEO Summit in Taipei, December 15, 2014. (Pichi Chuang/ Courtesy: Reuters).

Where to look for the next Jack Ma? This is a trillion dollar question. According to a document released by the State Council (China’s cabinet) last October, by 2020 the size of China’s health service industry—which covers medical care, pharmaceutical products, healthcare products, medical devices, and health management—would reach 8 trillion RMB (or $1.3 trillion), up from less than 1.7 trillion RMB in 2012. This would mean an annual growth rate of 21 percent between 2012 and 2020. Read more »

Obama’s Big China Win at APEC: Not What You Think

by Elizabeth C. Economy
U.S. President Barack Obama (L) shakes hands with China's President Xi Jinping during the Asia Pacific Economic Cooperation (APEC) forum, at International Convention Center at Yanqi Lake in Beijing November 11, 2014. REUTERS/Kim Kyung-Hoon (CHINA - Tags: BUSINESS POLITICS) U.S. President Barack Obama (L) shakes hands with China's President Xi Jinping during the Asia Pacific Economic Cooperation (APEC) forum, at International Convention Center at Yanqi Lake in Beijing November 11, 2014. (Kim Kyung-Hoon/Courtesy Reuters)

Let’s be clear, the United States won big this week, but not for the reasons most people think. The media and China analysts have focused overwhelmingly on the climate deal, touting the new commitments from both the United States and China as exceptional, even “historic.” But this is missing the forest for the trees. The real win for U.S. President Barack Obama is keeping China in the tent or, in political science speak, reinforcing Beijing’s commitment to the liberal international order. Read more »

What Beijing Wants From APEC

by Elizabeth C. Economy
A man (bottom) takes pictures of workers installing lighting on an APEC sign post at the financial district in Beijing, October 28, 2014. Countries at an Asia-Pacific summit in Beijing pledged to pursue "flexible" fiscal policies to support the world economy and job creation, their finance ministers said in a joint statement on Wednesday. REUTERS/Petar Kujundzic (CHINA - Tags: BUSINESS POLITICS SOCIETY) Workers install lighting on an APEC sign post at the financial district in Beijing on October 28, 2014. (Petar Kujundzic/Courtesy Reuters)

The Asia-Pacific Economic Cooperation (APEC) forum is just around the corner, and Beijing is pulling out all the stops. Elegant Chinese limousines will ferry the region’s leaders to and fro. The Gods—or maybe just the Communist Party, in this case—have preordained clear skies (since all factories within polluting distance will be shut down and each day half of all cars will be banned from the road). And Beijing is working hard to patch up political rifts with neighbors such as Vietnam and Japan to ensure that a spirit of collaboration rather than confrontation prevails. Read more »