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US-China competition in global development

This is the second in a two-part series of episodes from the Brookings-Blum Roundtable, an annual forum for global leaders, entrepreneurs, and policy practitioners to discuss innovative ideas and to pursue initiatives to alleviate global poverty. In this episode, Merrell Tuck-Primdahl, director of communications for the Global Economy and Development program at Brookings, speaks with…

       




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Secure power: Gigawatts, geopolitics, and China’s energy internet

Executive summary The importance of China’s electrical grid is growing in scale and complexity as it supports economic growth, integration of renewable energy sources, and the geostrategic goals of the Belt and Road Initiative (BRI). China’s planned shift from electricity production largely based on coal-fired generators to a combination of hydropower, wind, solar photovoltaic, and…

       




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Preparing the United States for the superpower marathon with China

Executive summary The U.S. is not prepared for the superpower marathon with China — an economic and technology race likely to last multiple generations. If we are to prevail, we must compete with rather than contain China. While this competition has many dimensions — political, military, diplomatic, and ideological — the crux of the competition…

       




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Global China: Technology

Executive summary China’s rapid technological advances are playing a leading role in contemporary geopolitical competition. The United States, and many of its partners and allies, have a range of concerns about how Beijing may deploy or exploit technology in ways that challenge many of their core interests and values. While the U.S. has maintained its…

       




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Dealing with demand for China’s global surveillance exports

Executive summary Countries and cities worldwide now employ public security and surveillance technology platforms from the People’s Republic of China (PRC). The drivers of this trend are complex, stemming from expansion of China’s geopolitical interests, increasing market power of its technology companies, and conditions in recipient states that make Chinese technology an attractive choice despite…

       




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China and the West competing over infrastructure in Southeast Asia

EXECUTIVE SUMMARY The U.S. and China are promoting competing economic programs in Southeast Asia. China’s Belt and Road Initiative (BRI) lends money to developing countries to construct infrastructure, mostly in transport and power. The initiative is generally popular in the developing world, where almost all countries face infrastructure deficiencies. As of April 2019, 125 countries…

       




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Can the US sue China for COVID-19 damages? Not really.

       




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A modern tragedy? COVID-19 and US-China relations

Executive Summary This policy brief invokes the standards of ancient Greek drama to analyze the COVID-19 pandemic as a potential tragedy in U.S.-China relations and a potential tragedy for the world. The nature of the two countries’ political realities in 2020 have led to initial mismanagement of the crisis on both sides of the Pacific.…

       




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Reaching the Marginalized: Is a Quality Education Possible for All?

Event Information

January 20, 2010
3:00 PM - 5:00 PM EST

Falk Auditorium
The Brookings Institution
1775 Massachusetts Ave., NW
Washington, DC

Education systems in many of the world's poorest countries are now experiencing the aftershock of the global economic downturn and millions of children are still missing out on their right to a quality education. After a decade of advances, progress toward the Education for All goals may stall or be thrown into reverse. Presenting a new estimate of the global cost of reaching the goals by 2015, the report challenges governments and the international community to act urgently to adopt targeted policies and practices to prevent a generation of children from being left without a proper education.

On January 20, the Center for Universal Education at Brookings hosted the launch of UNESCO’s 2010 Education for All Global Monitoring Report (GMR) with Kevin Watkins, director of the GMR. The report introduces a new, innovative tool to identify the "education-poor" who are excluded from accessing a quality education. A panel discussion followed featuring Elizabeth King of the World Bank; Barbara Reynolds of UNICEF; and Brookings Fellow Rebecca Winthrop. Brookings Senior Fellow Jacques van der Gaag moderated the discussion.

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Early Childhood Development: A Chinese National Priority and Global Concern for 2015


The Chinese government has recently made early childhood development a national priority, recognizing the social and economic dividends that quality early learning opportunities reap for its human capital in the long term. As the country with the largest population in the world, 100 million children under the age of six in China stand to benefit from increased access to high quality early childhood education.

The quality of education in a country is indicative of its overall development prospects. Over the past two decades – building on the momentum generated by the Education for All and Millennium Development Goals – there have been significant increases in the number of children enrolled in school. Now, with discussions heating up around what the next set of development goals will look like in 2015, it is critical that learning across the education spectrum – from early childhood through adolescence and beyond – is included as a global priority. Starting early helps children enter primary school prepared to learn. High-quality early childhood development opportunities can have long-term impacts on a child’s later success in school.

Last month, the Chinese Ministry of Education, in partnership with the United Nations Children’s Fund, launched its first national early childhood advocacy month to promote early learning for all children. The campaign, which includes national television public service announcements on the benefits of investing early in education, builds on a commitment made by the government in 2010 to increase funding for early childhood education over the next decade. The Chinese government pledged to build new preschool facilities, enhance and scale up teacher training, provide subsidies for rural families for access to early learning opportunities, and increase support for private early childhood education centers.

A new policy guide by the Center for Universal Education outlines recommendations that education stakeholders, including national governments, can take to ensure that all children are in school and learning. These steps include establishing equity-based learning targets for all children, systematically collecting data for tracking progress against these targets, and allocating sufficient resources to education beginning in early childhood. The policy guide, based on a report calling for a Global Compact on Learning, is available in Mandarin, as well as Spanish, PortugueseFrench and, soon, Arabic.

The success of China’s productivity and growth over the last few decades is attributable in part to its commitment to building a robust education system. As international attention mounts around the post-2015 education and development agendas, the priorities of national governments must be a central organizing principle. When national governments take bold steps to prioritize early childhood development, the global community should take its cue and integrate early childhood development into the broader push toward access plus learning. There is an opportunity for the global education community to push toward reaching the Education for All and Millennium Development Goals while ensuring that the post-2015 agendas include a focus on the quality of education, learning and skills development, beginning with the youngest citizens.

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Image Source: Jason Lee / Reuters
      
 
 




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The China debate: Are US and Chinese long-term interests fundamentally incompatible?

The first two years of Donald Trump’s presidency have coincided with an intensification in competition between the United States and China. Across nearly every facet of the relationship—trade, investment, technological innovation, military dialogue, academic exchange, relations with Taiwan, the South China Sea—tensions have risen and cooperation has waned. To some observers, the more competitive nature…

      
 
 




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The World Bank and IMF need reform but it may be too late to bring China back


Mercutio: I am hurt. A plague a’ both your houses! I am sped. Is he gone and hath nothing? — Romeo and Juliet, Act 3, scene 1, 90–92

The eurozone crisis, which includes the Greek crisis but is not restricted to it, has undermined the credibility of the EU institutions and left millions of Europeans disillusioned with the European Project. The euro was either introduced too early, or it included countries that should never have been included, or both were true. High rates of inflation left countries in the periphery uncompetitive and the constraint of a single currency removed a key adjustment mechanism. Capital flows allowed this problem to be papered over until the global financial crisis hit.

The leaders of the international institutions, the European Commission, the European Central Bank, and the International Monetary Fund, together with the governments of the stronger economies, were asked to figure out a solution and they emphasized fiscal consolidation, which they made a condition for assistance with heavy debt burdens. The eurozone as a whole has paid the price, with real GDP in the first quarter of 2015 being about 1.5 percent below its peak in the first quarter of 2008, seven years earlier, and with a current unemployment rate of 11 percent. By contrast, the sluggish U.S. recovery looks rocket-powered, with GDP 8.6 percent above its previous peak and an unemployment rate of 5.5 percent.

The burden of the euro crisis has been very unevenly distributed, with Greece facing unemployment of 25 percent and rising, Spain 23 percent, Italy 12 percent, and Ireland 9.7 percent, while German unemployment is 4.7 percent. It is not surprising that so many Europeans are unhappy with their policy leaders who moved too quickly into a currency union and then dealt with the crisis in a way that pushed countries into economic depression. The common currency has been a boon to Germany, with its $287 billion current account surplus, but the bane of the southern periphery. Greece bears considerable culpability for its own problems, having failed to collect taxes or open up an economy full of competitive restrictions, but that does not excuse the policy failures among Europe’s leaders. A plague on both sides in the Greek crisis!

During the Great Moderation, it seemed that the Bretton Woods institutions were losing their usefulness because private markets could provide needed funding. The financial crisis and the global recession that followed it shattered this belief. The IMF did not foresee the crisis, nor was it a central player in dealing with the period of greatest peril from 2007 to 2009. National treasuries, the Federal Reserve, and the European Central Bank were the only institutions that had the resources and the power to deal with the bank failures, the shortage of liquidity, and the freezing up of markets. Still, the IMF became relevant again and played an important role in the euro crisis, although at the cost of sharing the unpopularity of the policy response to that crisis.

China’s new Asian Infrastructure Investment Bank is the result of China’s growing power and influence and the failure of the West, particularly the United States, to come to terms with this seismic shift. The Trans-Pacific Partnership trade negotiations have deliberately excluded China, the largest economy in Asia and largest trading partner in the world. Reform of the governance structure of the World Bank and the IMF has stalled with disproportionate power still held by the United States and Europe. Unsurprisingly, China has decided to exercise its influence in other ways, establishing the new Asian bank and increasing the role of the yuan in international transactions. U.S. policymakers underestimated China’s strength and the willingness of other countries to cooperate with it, and the result has been to reduce the role and influence of the Bretton Woods institutions.

Can the old institutions be reinvented and made more effective? In Europe, the biggest problem is that bad decisions were made by national governments and by the international institutions (although the ECB policies have been generally good). The World Bank and IMF do need to reform their governance, but it may be too late to bring China back into the fold.


This post originally appeared in the International Economy: Does the Industrialized World’s Economic and Financial Statecraft Need to Be Reinvented? (p.19)

Publication: The International Economy
Image Source: © Kim Kyung Hoon / Reuters;
     
 
 




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Is the United States losing China to Russia?


Event Information

July 26, 2016
10:00 AM - 12:00 PM EDT

Falk Auditorium
Brookings Institution
1775 Massachusetts Avenue NW
Washington, DC 20036

Register for the Event

Last month, Russian President Vladimir Putin made his fourth visit to China since President Xi Jinping became top party leader in 2012. During this latest meeting, the two countries inked more than 30 deals, including an oil supply contract, and issued numerous joint statements, one of which criticized the United States for its plans to deploy missile defense systems on the Korean Peninsula and in the Balkans. Chinese state media speculate that this year’s China-Russia joint naval exercises, held annually since 2005, will likely be led by the South China Sea Fleet, reinforcing a general perception in China and elsewhere that U.S. policies are pushing Chinese leaders to consolidate ties with Russia.

On July 26, the John L. Thornton China Center at Brookings hosted a discussion on the U.S.-China-Russia trilateral relationship, the shape and scope of which carries far-reaching consequences for international order and global economic growth. Brookings President Strobe Talbott, who served as deputy secretary of state and ambassador-at-large on the new independent states following the Soviet breakup, provided an introduction. A panel of experts—J. Stapleton Roy, Fiona Hill, Yun Sun, and Cheng Li—discussed the current and historical dynamics at play, including expectations and recommendations for the future.

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Debunking America’s China Syndrome

LONDON After his visit to Washington, President Hu Jintao of China might wish he had stayed home. In all likelihood, he will have encountered an onslaught of accusations of currency manipulation, unfair trade and intellectual property rights violationsThe alarm over China's economic ascension is akin to the China Syndrome, made famous by the 1979 film…

       




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Hutchins Roundup: Medical billing, young firms, and more

Studies in this week’s Hutchins Roundup find that collecting payments from insurers is highly costly for health care providers, superstar firms account for less of productivity growth than previously thought, and more. Want to receive the Hutchins Roundup as an email? Sign up here to get it in your inbox every Thursday. Costly billing hassles…

       




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Hutchins Center Fiscal Impact Measure

The Hutchins Center Fiscal Impact Measure shows how much local, state, and federal tax and spending policy adds to or subtracts from overall economic growth, and provides a near-term forecast of fiscal policies’ effects on economic activity. Editor’s Note: Due to significant uncertainty about the effect of the COVID-19 pandemic on the outlook for GDP…

       




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Hutchins Roundup: Consumer spending, salary history bans, and more.

Studies in this week’s Hutchins Roundup find that consumer spending has fallen sharply because of COVID-19, salary history bans have increased women’s earnings relative to men’s, and more. Want to receive the Hutchins Roundup as an email? Sign up here to get it in your inbox every Thursday. Consumer spending falls sharply because of COVID-19…

       




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Hutchins Roundup: Stimulus checks, team players, and more.

Studies in this week’s Hutchins Roundup find that households with low liquidity are more likely to spend their stimulus checks, social skills predict group performance as well as IQ, and more. Want to receive the Hutchins Roundup as an email? Sign up here to get it in your inbox every Thursday. Households with low liquidity…

       




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Urbanization and Land Reform under China’s Current Growth Model: Facts, Challenges and Directions for Future Reform

In the first installment of the Brookings-Tsinghua Center Policy Series, Nonresident Senior Fellow Tao Ran explores how China’s growth model since the mid-1990’s has led to a series of distortions in the country’s urban land use, housing price and migration patterns.The report further argues for a coordinated reform package in China’s land, household registration and…

      
 
 




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China’s Land Grab is Undermining Grassroots Democracy

After continuous confrontation between villagers and local officials for almost four months, the land grab in the fishing village of Wukan, in Guandong province, China, has now led to the death of one of the elected village leaders in police custody, and further escalated into a violent "mass incident" with tens of thousands of farmers…

      
 
 




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Challenges and Opportunities for a Growing China

On March 26 the Brookings-Tsinghua Center, a joint venture of Tsinghua University and the Brookings Institution, hosted a public forum exploring the challenges and opportunities that China will face in the next five years.In the first panel, speakers discussed the opportunities and challenges that China faces in its continued economic growth and social transformations. In…

      
 
 




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Reviving China’s Growth: A Roadmap for Reform

After a peaceful power transition in the 18th Party Congress, the new leadership in China is again under the limelight. The world is watching how it tackles the many challenges facing the nation: rising inequality, worsening pollution, rampant corruption, restless society, to name just a few. Most policy analysts therefore, believe that the top priority…

      
 
 




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China’s Reform and Rebalancing

Almost a year and a half after the Communist Party of China’s 18th Party Congress and one year into the term of the new government, China and the world are waiting for the new leadership’s plans to further transform China’s economy and to improve governance. What new reform measures should be the focus? Why are…

      
 
 




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The Chinese Financial System: Challenges and Reform

Douglas J. Elliott, fellow in Economic Studies at the Brookings Institution, delivered a public speech at Brookings-Tsinghua Center (BTC) on December 11, moderated by Tao Ran, nonresident senior fellow of the BTC. International Monetary Fund resident representative to Hong Kong Shaun Roache also joined as a guest commentator. The discussion was warmly received by students,…

      
 
 




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Navigating the US-China 5G competition

Executive summary: The United States and China are in a race to deploy fifth-generation, or 5G, wireless networks, and the country that dominates will lead in standard-setting, patents, and the global supply chain. While some analysts suggest that the Chinese government appears to be on a sprint to achieve nationwide 5G, U.S. government leaders and…

       




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Rodrigo Duterte, China, and the United States (with addendum)


Editors’ Note: One week after this post was originally published, President Benigno Aquino of the Philippines said that the United States must take action in the South China Sea if China takes steps towards reclaiming the Scarborough Shoal. Michael O’Hanlon updated this post on May 23 with a brief response, below. The original post appears in full after the break.

Predictably, some experts—as well as now the Philippines' leader, President Benigno Aquino—are arguing that the United States should militarily prevent China from seizing the Scarborough Shoal, a disputed but basically worthless land formation in the open waters between the Philippines and China. The formation is admittedly three times closer to the Philippines than to China, but it is not important—and it is definitely not worth fighting China over. Loose talk of red lines and of the supposed need for the United States to "take military action" makes the problem sound far too antiseptic and easily manageable. In fact, any direct use of military power that resulted in the deaths of Chinese (or American) military personnel would raise serious dangers of escalation. 

The United States does need to ensure access to the sea lanes of the South China Sea. And it should help protect the populated areas of any allied country, including the Philippines. It should not recognize Chinese territorial or economic claims to areas surrounding disputed (or reclaimed) land formations, even if China occupies some of these islets and other features. And it should consider proportionate responses in the economic realm to any Chinese aggression over the Scarborough Shoal, as well as the possibility of expanded and permanent U.S. military presence in the area. But it should not shoot at Chinese ships, planes, or troops over this issue. It's just not worth it, and we have more appropriate and measured options for response if needed.


[Original post, from May 12]

President-elect Rodrigo Duterte of the Philippines, known for his Trump-like rhetoric and supra-legal methods of reducing crime while mayor of Davao City on the island of Mindanao, is already causing consternation in many parts of the world. His previous tolerance for vigilantes as a crime-fighting tool, for example, is cause for concern.

But in other cases, we should relax and keep an open mind. For example, while The Washington Post editorial page has lamented that he appears willing to do a deal with Beijing—accepting Chinese investment in the Philippines while allowing China to enforce its claims to the uninhabited Scarborough Shoal in the South China Sea—that particular outcome may actually be good for the United States. 

Provocateurs in Beijing

Let’s situate the Scarborough Shoal issue in broader context. In recent days, the United States sailed a major Navy vessel, the William P. Lawrence, within 12 miles of the Fiery Cross Reef, a land formation in the Spratly Islands of the South China Sea that China has transformed into a 700-acre artificial island. China objected strenuously. Meanwhile, everyone awaits the ruling of an international arbitration panel, expected later this spring, on whether China or the Philippines (or neither) is the rightful claimant to the Scarborough Shoal.

To be sure, the broad problem starts in Beijing; The Washington Post is not wrong on that basic point. Incredulously, invoking fishing histories from many centuries ago, China claims not only most of the shoals and sand bars and small islands of the South China Sea, and not only the surrounding fisheries and seabed resources, but the water itself. Its so-called nine-dash line, which encompasses almost all of the South China Sea—including areas much closer to the Philippines and Indonesia and other key countries than to China’s own territory—can be interpreted as a claim to sovereign ownership. Fears that it will declare an associated air defense identification zone further complicate the picture.


Map of the South China Sea locating China's nine-dash line claim on the South China Sea, and the Air Defense Identification Zone (ADIZ). Note: The Spratleys, Parcels, and other islands in the South China Sea are disputed to various degrees by different parties. Photo credit: Reuters.

America’s aims are far less disruptive to the status quo. But of course, for America, the region is also much further away. In Chinese eyes, we already have our Caribbean Sea, and Gulf of Mexico—not to mention our extensive east and west seacoasts and other maritime domains. By contrast, China is largely hemmed in by land on three sides and Japan together with the U.S. Navy on the fourth. For Washington to deny China even a modest version of its own special waters strikes many in Beijing as haughty and hegemonic. 

America’s aims are far less disruptive to the status quo.

Choosing our historical analogies wisely

Of course, the United States is making no claims of its own in the region. Nor is Washington trying to dictate outcomes on all disputes. Washington does not take a position on who owns the land features of the South China Sea. Nor does it oppose any plan for joint exploitation of the area’s resources that regional states can agree on. Nor can the United States, or any other country, be expected to let China restrict naval and commercial shipping maneuvers through this region, through which at least one-third of the world’s commerce traverses. Nor should Washington abandon treaty allies—most notably in this case, the Philippines—if they come under fire from Chinese warships (as has happened before). And in fairness to Filipinos, the Scarborough Shoal is much closer to their country than to China, by a distance factor of more than three to one.

Yet there is a problem in Washington’s thinking, too. Given the way rising powers have behaved throughout history, it is unrealistic to think that China wouldn’t seek to translate its greater economic and military strength into some type of strategic benefit. Yet Washington expects China to stop building artificial islands, to abstain from deploying military assets to the region, and to accept adjudication of disputes over territory by an international panel.

... it is unrealistic to think that China wouldn’t seek to translate its greater economic and military strength into some type of strategic benefit.

Many Americans would view any bending of the rules in Beijing’s favor as appeasement and thus an invitation to further imperialistic behavior by China. We have learned the lessons of World War II and the Cold War very well. 

But it is also important to bear in mind the lessons of World War I, when great powers competed over relatively minor issues and wound up in a terrible conflict. Just as Germany had been largely shut out of the colonialism competition prior to 1914, making its leaders anxious to right what they saw as historical wrongs in advancing their own interests once they had the capacity, it is possible that China will refuse to accept the status quo going forward. By this alternative reading of history, our job should be to persuade China to be content with very minor adjustments to the existing global order—and to remind Chinese that they have benefited greatly from that order—rather than to oppose each and every small act of Chinese assertiveness as if it portended the first of many dominoes to fall. The good news in this case is that China is not challenging existing state borders, threatening established population centers, or using lethal force as a default instrument of state power. Its behavior is worrying, to be sure—but not particularly surprising, and by the standards of history, relatively benign to date.

Walk the line

With this perspective in mind, the United States should continue to insist on freedom of navigation in the South China Sea, and sail its ships wherever it wants, including within 12 miles of reclaimed islands. It should punish China for any future, limited use of military violence against a country like the Philippines by shoring up alliances, increasing forward U.S. military deployments, and imposing economic sanctions in concert with allies. But it should not itself use lethal force to directly respond to most small possible Chinese provocations or to evict People’s Liberation Army forces from disputed islands and shoals. It should tolerate some modest degree of expanded Chinese military presence in the area. And it should encourage regional friends to accept deals on joint economic exploitation of the region’s resources in which China would in effect be first among equals—though of course the exact meaning of that phrase would require careful delineation. 

Its behavior is worrying, to be sure—but not particularly surprising, and by the standards of history, relatively benign to date.

Duterte’s willingness to do a deal with China would seem to fit with these criteria, without surrounding any substantial claims to Beijing, and without suggesting any weakening in its ties to the United States either. The Philippines shouldn’t concede meaningful economic resources in the waters and seabeds surrounding the Scarborough Shoal. But ownership and control of the land features themselves are a minor matter about which Manila might well usefully compromise.

The United States and China are likely to be jostling for position in the South China Sea for years. That is probably inevitable. It is also tolerable, if we keep our cool while also maintaining our resolve—and if we patiently look for an ultimate compromise on the issues that currently divide America and its regional friends from Beijing. Ironically, the strongman from Mindanao may help us along with this process.

     
 
 




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Counterterrorism and Preventive Repression: China’s Changing Strategy in Xinjiang

       




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Understanding China’s ‘preventive repression’ in Xinjiang

The Chinese Communist Party (CCP) crackdown on Uighur and other Muslim minorities in the Xinjiang Uighur Autonomous Region (XUAR) has attracted intense scrutiny and polarized the international community. At least 1 million people, maybe as many as 1.5 million, have been detained in a large network of recently constructed camps, where they undergo forced reeducation and political indoctrination.…

       




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Dealing with demand for China’s global surveillance exports

Executive summary Countries and cities worldwide now employ public security and surveillance technology platforms from the People’s Republic of China (PRC). The drivers of this trend are complex, stemming from expansion of China’s geopolitical interests, increasing market power of its technology companies, and conditions in recipient states that make Chinese technology an attractive choice despite…

       




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Webinar: Global China — Assessing China’s technological reach in the world

China’s ambition to “catch up with and surpass” the West in advanced technologies, as well as concerns about how Beijing may deploy or exploit such technologies, have become significant drivers of geopolitical competition. While the United States has maintained a technological edge for decades, China has made major investments and implemented policies that have bolstered…

       




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Does America want China arresting hackers?

On October 9, Ellen Nakashima and Adam Goldman of The Washington Post reported very significant news. “The Chinese government has quietly arrested a handful of hackers at the urging of the U.S. government … It is not clear if the hackers arrested were with the Chinese military, but they were accused of carrying out state-sponsored…

       




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The Advantages of an Assertive China: Responding to Beijing’s Abrasive Diplomacy

Over the past two years, in a departure from the policy of reassurance it adopted in the late 1990s, China has managed to damage relations with most of its neighbors and with the United States. Mistrust of Beijing throughout the region and in Washington is palpable. Observers claim that China has become more assertive, revising…

       




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Obama in China: Preserving the Rebalance

This November, after focusing on foreign policy concerns around the globe and congressional midterm elections at home, President Barack Obama will travel to Beijing to attend the APEC Economic Leaders’ Meeting in hopes of preserving and enhancing one of his key foreign policy achievements—the rebalance to Asia. Obama’s trip to China will be his first…

       




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The China challenge: Shaping the choices of a rising power

Many see China as a rival superpower to the United States and imagine the country’s rise to be a threat to U.S. leadership in Asia and beyond. In his new book, "The China Challenge: Shaping the Choices of a Rising Power" (W.W. Norton 2015), Nonresident Senior Fellow Thomas J. Christensen argues against this zero-sum vision.…

       




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A modern tragedy? COVID-19 and US-China relations

Executive Summary This policy brief invokes the standards of ancient Greek drama to analyze the COVID-19 pandemic as a potential tragedy in U.S.-China relations and a potential tragedy for the world. The nature of the two countries’ political realities in 2020 have led to initial mismanagement of the crisis on both sides of the Pacific.…

       




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China and its Neighbors: Changing Dynamics and Growing Uncertainty

As East Asia’s political, economic and security dynamics continue to evolve, regional powers are pursuing policies to cope with the change. China, the largest and fastest-changing player, is the focus of many of these policies. In this fluid environment, China and its neighbors face the challenge of growing uncertainty as they seek both to respond…

       




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China’s and Russia’s Interests in Central Asia: Connecting the Dots in Kazakhstan


Visiting Astana, the modernistic capital of Kazakhstan, last week, I couldn't help feeling that I was at, or at least close to, the center of the universe. 

Consider this:  On September 7, the president of Kazakhstan, Nursultan Nazarbayev, having just returned from attending the G-20 Summit in St. Petersburg at the invitation of President Putin of Russia, welcomed President Xi Jinping of China for an official visit in Astana. President Xi gave a speech that day at Nazarbayev University, in which he unabashedly borrowed a turn of phrase from former U.S. Secretary of State Hillary Clinton  by proposing a “New Silk Road” to serve as an “economic belt” of Eurasia, connecting “3 million people from the Pacific to the Baltic Sea” with Kazakhstan as a key partner along the way. 

On September 10, President Nazarbayev opened the Eurasian Emerging Markets Forum in Astana, at which he addressed some 800 participants, including high-level dignitaries and representatives from 87 countries.  In his keynote speech, he laid out his plans to catapult Kazakhstan into the ranks of the top 30 developed countries in the world by 2050.  The rest of the forum was devoted to exploring the ways in which this ambitious vision could be achieved and how economic integration of the Eurasian supercontinent—i.e., Europe plus Asia, with Kazakhstan at its center—would be a driver of regional and global prosperity. 

Finally, on September 13, President Nazarbayev joined the leaders of China, Russia and the five Central Asian republics in Bishkek for a summit of the Shanghai Cooperation Organization (SCO), which was also attended by a number of other regional leaders with observer status, including from Afghanistan, India, Iran and Pakistan.  Besides the usual pledges of good neighborly relations within the group, the leaders weighed in with a chorus of statements about current geopolitical trouble spots, including Afghanistan, Iran and Syria, many of them directed critically at the United States.

While the president and people of Kazakhstan might have felt at the center of global action this week, there is little doubt that China and Russia are the key external actors on the Central Asian stage.  Europe and the United States are far away and hardly visible, and everybody expects that, with the imminent end of NATO’s engagement in Afghanistan, their attention to Central Asia will slip even further.  In contrast, the leaders of China and Russia are clearly focused on this region.  

Central Asian leaders, while perhaps privately worried about the long-term consequences of too tight an embrace by China, welcome the low-key approach of their big neighbor...

If there had been any doubt, President Xi’s speech in Astana showed that China is now concerned with Central Asia at the highest level.  While China faces its neighbors in the Pacific region in an assertive pose designed to counter what it sees as encirclement by unfriendly countries led by the U.S., it evidently feels no threat in Central Asia and projects an image of itself as benevolent and modest senior partner.  No doubt sensing opportunities to create a stable backyard, to secure access to energy resources and to build a land bridge to European and Middle Eastern markets while also gently wresting influence away from Russia, China has a strong incentive to push westward.  The substantial energy supply deals  that President Xi signed in Kazakhstan, Turkmenistan and Uzbekistan this past week and the stress Xi placed in his Astana speech on measures to open up transport links throughout Eurasia reflect China’s growing engagement in this region.  Central Asian leaders, while perhaps privately worried about the long-term consequences of too tight an embrace by China, welcome the low-key approach of their big neighbor, which promises to strengthen their own hand economically and politically at least in the short term.

At the same time, there is also a new dynamic between Central Asia and Russia.  Since Mr. Putin resumed the Russian presidency in 2012, Russia has breathed new life into a long-dormant regional grouping, the Eurasian Economic Community (EurAsEC), by pushing hard to create a customs union  (and eventually an economic union) that, in Russia’s view, would encompass most of the republics of the former Soviet Union. Although only a fraction of the geographic space of continental Eurasia (Europe + Asia), the reference to “Eurasia” harks back to a long-standing Russian ideological vision.  Under this vision, Russia and its former Soviet neighbors are endowed with a unique combination of European and Asian values and, led by Russia, with a mission to dominate the land bridge between Europe and Asia. 

In the pursuit of establishing a unified economic “Eurasian” space, Russia has not only successfully pushed for the full implementation of the current customs union between Russia, Kazakhstan and Belorussia, but is also vigorously pursuing the expansion of the union in Ukraine, Central Asia (specifically targeting the Kyrgyz Republic and Tajikistan) and Armenia in the South Caucasus.  In the case of Armenia and Ukraine, this pursuit has taken on a decidedly anti-European Union tone, as Russia seems to spare no effort to ensure that these countries will join its own economic orbit, rather than associating with the EU.  In Central Asia, the Russian campaign of expanding the customs union has been more low key, but nonetheless persistent with the quiet support of Kazakhstan.  Interestingly, this effort to create a unified economic space has not been cast by Russia as a move to counteract the growing influence of China in Central Asia, even though it is undoubtedly one of the underlying long-term motives for Russian diplomacy in the region.  

Much more important for China will be whether the “Eurasian” economic union can create safe, low-cost and high-speed transit routes to China’s key trading partners in Europe, South Asia and the Middle East.

Indeed, for Central Asia in general and for Kazakhstan in particular, the important questions for the future will be how China and Russia shape their mutual relations overall and how they will seek to accommodate their overlapping interests in the region.  For the moment, a common geopolitical front vis-à-vis the U.S., evident in their joint positions at the U.N. Security Council and at the SCO summit last week, is an overarching priority for China and Russia.  Moreover, they share the common interest of establishing a stable and prosperous political and economic sphere in Central Asia.  For now and the foreseeable future, China’s thirst for energy is large enough to allow both Russia and Central Asian countries to pursue opportunities for major oil and gas supply deals with China without undue competition. Finally, whatever protectionist effects an expansion of the Russian-led customs union may have in limiting trade between China and Central Asia will likely be temporary and will hardly be noticed in China’s huge overall trade account.  Much more important for China will be whether the “Eurasian” economic union can create safe, low-cost and high-speed transit routes to China’s key trading partners in Europe, South Asia and the Middle East. This priority strongly resonated in President Xi’s speech, in which he not only staked out an interest in Eurasian economic integration, but also promised greater cooperation between the SCO and EurAsEC.

What does all of this mean in practical terms for Central Asia and for Kazakhstan?  As President Nazarbayev indicated in his speech at the Eurasian Emerging Markets Forum, he sees Kazakhstan as playing a key role in supporting the economic integration of larger Eurasia.  This presumably should mean: investing in regional infrastructure, such as the major East-West Highway through Kazakhstan as a link from China to Europe; assuring that the customs union pursues open, rather than protectionist, policies; and convincing the other Central Asian countries, including Uzbekistan and Turkmenistan, to participate in an effort to increase the region’s connectivity both internally and with the rest of the world. 

In addition, there are a number of institutional options for promoting these goals and for turning China’s and Russia’s engagement in Central Asia into a pragmatic partnership.  One option would be to have China join the Eurasian Development Bank (EADB), the financial arm of EurAsEC.  Another would be for Russia to join the Central Asian Regional Economic Cooperation Program (CAREC), in which China has teamed up with Central Asian countries (now also including Afghanistan, Mongolia and Pakistan) and with six international financial organizations (including the Asian Development Bank and the World Bank) with the goal of improving regional cooperation and investment in trade, transport and energy.  Either or both of these two options could then offer SCO a financial and technical institutional platform to pursue economic integration between China, Russia and Central Asia (and, ultimately, even South Asia), a goal that has eluded SCO up until now. 

Kazakhstan is a member of EurAsEc, EADB, CAREC and SCO, and is therefore in a unique position to promote institutional changes along some or all of these lines.  One place to start would be the next ministerial conference of CAREC, to be held in Astana on October 24-25.  Of course, it is by no means clear that China and Russia will see it in their interest to dilute their lead roles in EADB and CAREC, the regional organizations that they now respectively dominate.  However, establishing a strong and meaningful institutional capacity that would support the economic integration process in Central Asia and in the larger Eurasia would be of great benefit for Kazakhstan, since it would help turn the country from being “land-locked” to being “land-linked” with the world’s largest and most dynamic economies.

Image Source: © RIA Novosti / Reuters
      
 
 




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The people of Taiwan should be proud of their success in consolidating democracy over recent decades. Taiwan enjoys a vibrant civil society, a flourishing media, individual liberties, and an independent judiciary that is capable of serving as a check on abuses of power. Taiwan voters have ushered in three peaceful transfers of power between major…

       




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Ryan Hass speaks on a panel about China’s Belt and Road Initiative, hosted by the World Economic Forum in Amman, Jordan

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Why Bridgegate proves we need fewer hacks, machines, and back room deals, not more


I had been mulling a rebuttal to my colleague and friend Jon Rauch’s interesting—but wrong—new Brookings paper praising the role of “hacks, machines, big money, and back room deals” in democracy. I thought the indictments of Chris Christie’s associates last week provided a perfect example of the dangers of all of that, and so of why Jon was incorrect. But in yesterday’s L.A. Times, he beat me to it, himself defending the political morality (if not the efficacy) of their actions, and in the process delivering a knockout blow to his own position.

Bridgegate is a perfect example of why we need fewer "hacks, machines, big money, and back room deals" in our politics, not more. There is no justification whatsoever for government officials abusing their powers, stopping emergency vehicles and risking lives, making kids late for school and parents late for their jobs to retaliate against a mayor who withholds an election endorsement. We vote in our democracy to make government work, not break. We expect that officials will serve the public, not their personal interests. This conduct weakens our democracy, not strengthens it.

It is also incorrect that, as Jon suggests, reformers and transparency advocates are, in part, to blame for the gridlock that sometimes afflicts our American government at every level. As my co-authors and I demonstrated at some length in our recent Brookings paper, “Why Critics of Transparency Are Wrong,” and in our follow-up Op-Ed in the Washington Post, reform and transparency efforts are no more responsible for the current dysfunction in our democracy than they were for the gridlock in Fort Lee. Indeed, in both cases, “hacks, machines, big money, and back room deals” are a major cause of the dysfunction. The vicious cycle of special interests, campaign contributions and secrecy too often freeze our system into stasis, both on a grand scale, when special interests block needed legislation, and on a petty scale, as in Fort Lee. The power of megadonors has, for example, made dysfunction within the House Republican Caucus worse, not better.

Others will undoubtedly address Jon’s new paper at length. But one other point is worth noting now. As in foreign policy discussions, I don’t think Jon’s position merits the mantle of political “realism,” as if those who want democracy to be more democratic and less corrupt are fluffy-headed dreamers. It is the reformers who are the true realists. My co-authors and I in our paper stressed the importance of striking realistic, hard-headed balances, e.g. in discussing our non-absolutist approach to transparency; alas, Jon gives that the back of his hand, acknowledging our approach but discarding the substance to criticize our rhetoric as “radiat[ing] uncompromising moralism.” As Bridgegate shows, the reform movement’s “moralism" correctly recognizes the corrupting nature of power, and accordingly advocates reasonable checks and balances. That is what I call realism. So I will race Jon to the trademark office for who really deserves the title of realist!

Authors

Image Source: © Andrew Kelly / Reuters
      




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