What's Been Happening in Asia - Essay Example

Nick Knight argues that “the East and Southeast Asian region is of immense economic, strategic and cultural significance to Australia……. Australians therefore need to have some understanding of their northern neighbours and to be able to think about them in an informed way”(Knight, 2004:1). The focus of this analysis is to evaluate the following significant events in this region contextually in light of Knight’s arguments: 1) Closure of border between North and South Korea; 2) Japanese Recession; and 3) The China Controversy over Sarkozy and Dalai Lama’s meeting. In considering each scenario, I shall be focusing on the historical backdrop and the global regional impact of the event. 1) Closure of border between North and South Korea; In November 2008, North Korea announced that it was officially closing the border with South Korea and cutting all non-military phone communications with South Korea. The planned closure of the border highlights the dichotomy between “tradition and modernity in East and Southeast Asia” as extrapolated by Knight, (Knight, 2004: 22). Moreover, the industrialised and modern South Korea is in stark contrast to the controversial policies of North Korea, which has influenced Western foreign policy vis-à-vis nuclear proliferation and human rights abuses (Knight, 2004). Indeed, the closure of the border strikes a further nail in the coffin for inter-Korean relations, which have been in decline since Lee Myung-bak’s Presidency. It is further reported that the motivation for the North Korean closure has been its perception of the “reckless confrontation from South Korea beyond the danger level”(www.news.bbc.co.uk). The BBC report into the border closure further highlighted that North Korean official news agency KCNA’s stance that “the south Korean puppet authorities should never forget that the present inter-Korean relations are at the crucial crossroads of existence and total severance” (www.news.bbc.co.uk). From a historical background perspective, phone and mail links between ordinary people have been cut since the 1950-53 war and it is argued that the closure of the North Korean government controlled Red Cross office strikes a blow for its already poor human rights record, which have fuelled concerns regarding the role of democracy and human rights in the Northern territory (Knight, 2004: 167). In retaliation, North Korea has criticised the South for co-sponsoring a United Nations resolution criticising the North’s human rights record and KCNA argues that “It’s really appalling that the puppet regime is taking a leading role in the racket of a so called UN Resolution on human rights in the North” (www.new.bbc.co.uk). The UN resolution follows growing concerns about lack of access to food in North Korea and the culture of public executions (Knight, 2004: 165). The practical ramifications of this closure is far reaching and the unification ministry spokesman Kim Ho-Nyoun stated that if the “North carries them out, it would have a negative impact on what has been achieved in inter-Korean relations”. This is further evidenced from an economic perspective whereby South Korea has funded the Kaesong industrial complex just over the border in the North, and a ban on border crossings would make it difficult for the plant to continue operating (www.news.bbc.co.uk). Moreover, this correlative impact would clearly have a knock on effect on the economic strategy of South Korea as a member of the Association of South East Asian Nations (ASEAN), which is now defining its role as a regional forum more broadly than its original economic purpose conceived (Knight, 2004: 6). Moreover “South Korea has become increasingly active in ASEAN forums suggesting a tendency towards broader regional political integration….. and greatly increase intra-regional trade” (Knight, 2004:6), which is clearly going to be impacted by the regional border closure. 2) Japan in Recession The global economic crisis has permeated the Asian markets and in November 2008, it was reported that Japan “became the latest major economy to fall into recession” thereby adding gravitas to Knight’s arguments of the “rise and decline of the Japanese Economic Miracle” (Knight, 2004: 132). Indeed, in November 2008, Japan’s economic data demonstrated that the world’s second biggest economy was entering the first recession in seven years, with a significant curb in demand for exports. From a historical consideration of Japan’s economic success, Knight highlights the “market regulation thesis” (2004: 137), where the institutions of the Japanese state guided and controlled the way in which Japanese corporations do business and thereby created a favourable context for them (2004: 137). Moreover, Knight refers to Morris-Suzuki’s arguments that the Japanese economic “miracle” resulted from “the fortuitous combination of a number of factors – social and political as well as narrowly economic (1995:382 in Knight, 2004: 138). To this end, Knight points to the pre-War industrialisation of Japan and that whilst Japan’s industries were destroyed during the Second World War, its workforce skills remained in tact. Moreover, the character of the workforce and labour relations were vital to the rapid economic growth, which created a pool of flexible labour and loyal characteristics, with concurrent competitive edge over international contemporaries (Knight, 2004). However, Knight points to the fact that Japan’s industrial economy centred on the success of the export industry, which is arguably its inherent weakness. This is further evidenced by the current crisis in Japan. It has been reported that the gross domestic product contracted by an annualised 12.7 per cent between the October to December quarter in 2008, which is the fastest pace in approximately 35 years as the global credit crunch took the second largest economy Japan as its next victim (www.bbc.co.uk). Moreover, this estimated to be the sharpest decrease in the country’s economy since 1974 and consumer spending has seen a 0.4 per cent fall, with corporate capital spending coming to an all time low. This further negates Japan’s six year recovery plan that was implemented in 2003 (Knight, 2004). The concomitant impact of a global financial crisis has caused dramatic declines in overseas demand for Japanese auto and electronics gadgets along with the sharp appreciation of the yen against the dollar. Moreover, the export orientated nature of the economy has rendered Japan vulnerable to exchange currency fluctuations, which is further compounded by the decline of Japan’s staple industries such as steel and cars (Knight, 2004). 3) China Controversy Over Sarkozy/Dalai Lama Meeting. In December 2008, China launched a protest against France in respect of Sarkozy’s proposed meeting with the Dalai Lama. Chinese Deputy Foreign Minister He Yafei directly summoned the French Ambassador and asserted that “this has undermined the political foundations of Sino-French and Sino-European ties” (www.bbc.co.uk). As a result, China cancelled the EU-China summit, which France had been due to host. This not only takes back recent inroads into Chinese relations with Europe, it further highlights the debate as to whether China’s political system is truly moving towards a rule of law system (Knight, 2004). Whilst Chinese media propaganda continually refers to the rule of law as an entrenched part of Chinese culture, the concept of China and its relationship with the rule of law has fuelled academic debate with many Western scholars finding the notion hard to grasp (Knight, 2004). On the one hand, investors and human rights activists advocate a critical indictment of the distinct absence of the rule of law in China, whereby the political strategy impedes the necessity of moving towards a true rule of law in order to achieve the modern economic goals China has set itself. Indeed Sarkozy asserted that the “world needs an open China that participates in global governance” and that “China needs a powerful Europe that gives work to the Chinese Enterprise”(2004). Nevertheless, whilst , some posit that China’s advocacy of a rule of law system is merely a veil; intended to facilitate foreign investment, Sarkozy’s move as president of the EU has arguably impeded business relationships with the Chinese. Indeed, it has been submitted that the proliferation of Foreign Direct Investment into China with some touting China’s broad ranging agreement with President Clinton in the 1990s as a rule of law driven initiative, which in turn triggered the legal and judicial co-operation programme between EU and China in 1998 (Knight, 2004). Therefore the provocation of the meeting with the Dalai Lama may have financial ramifications for the recent EU initiatives towards further economic ties with China. Indeed, the official Chinese political stance has been to highlight the fact that “in today’s world, both multi-polarity and economic globalisation keep developing. China shares wide ranging common interests with the EU countries, including France and developing and strengthening China-EU interests is in the interests of both sides and the world at large”(www.english.peopledaily.com) Moreover, the Chinese fury at the Sarkozy meeting is further indicated by its labelling of the meeting as an unwise move by France and the EU presidency in obstructing dialogue and economic cooperation between China and the EU. Bibliography Nick Knight. Understanding Australia’s Neighbours: An Introduction to East and Southeast Asia Cambridge University Press 2004 www.news.bbc.co.uk Read More