Search

Begin New Search Content Type Special Report

1311. Strategic Trade Controls in Southeast Asia: A Pandemic Update

Author:
Crystal Pryor and Ellise Fujii
Publication Date:
12-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
The Pacific Forum, with support from the US State Department’s Export Control and Related Border Security Program, held a virtual Seminar on Strategic Trade Controls in Southeast Asia on July 27-28, and August 5-6, 2020 via Zoom. Over 90 people from the Indo-Pacific region representing relevant government departments and ministries, private sector, industry associations, academia, and civil society organizations joined the seminar. Following the conference, several experts in attendance were invited to submit short analytical commentaries for compilation into this volume. Key themes from this conference, along with a summary of each paper contribution, are outlined below. The seminar focused on four substantive topics: (1) the adoption of Strategic Trade Controls (STCs) for nonproliferation and internal security; (2) post-COVID-19 supply chains and trade facilitation; (3) ASEAN and STC; (4) the World Customs Organization, STC, and the exploration of maturity models. Following presentations and discussions on these topics, representatives from several Southeast Asian countries—Philippines, Malaysia, Singapore, Thailand, Vietnam, Cambodia, Laos, Myanmar, and Indonesia—offered updates on the adoption of STC in their respective jurisdictions. Panelists discussed the uneven STC implementation within the Southeast Asian region as evidenced by Singapore, Malaysia, Philippines, and Thailand’s recent adoption or calibration of regulations while others, such as Vietnam, Cambodia, and Brunei have been slower to implement a more robust system. The region’s history of non-alignment, past experience with export controls as a coercive mechanism, prioritization of economic growth, and the view that STC can be used for technological denial fuels skepticism. ASEAN is a late entrant to the development of free trade zones and regional economic integration. Although it seeks to attract international investment, relaxed oversight, susceptibility to smuggling, and a lack of transparency inhibit growth. Some participants suggested connecting STC with the World Customs Organization Authorized Economic Operator scheme as it can exist without a national STC system already in place.
Topic:
Security, Nonproliferation, Trade, ASEAN, and COVID-19
Political Geography:
Asia and Southeast Asia

1312. Strengthening Regional Energy Governance in the Mekong Subregion

Author:
Chen-Sheng Hong
Publication Date:
07-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
This paper explores the energy trilemma problems in the Mekong subregion and explains the necessity for regional energy governance. The current governmental cooperative mechanisms are an ineffective approach to regional energy governance in the Mekong subregion and should thus be strengthened. Countries of the Mekong subregion are facing the following energy trilemma: energy security, energy poverty, and environmental sustainability problems. This paper argues that regional energy governance is needed in the Mekong subregion because the energy trilemma has transboundary externalities on the Mekong ecosystem and requires regional cooperation to be managed effectively. Effective regional energy governance is based on three components: coordination,general norms, and consideration of the regional context. The existing mechanisms for governance in the subregion are lacking these elements. This paper concludes with three policy recommendations. First, it is necessary to enhance coordination among the subregional mechanisms. By exploring mutual benefits to raise incentives for cooperation and by seeking third-party engagement, more effective coordination may be realized. Also, information sharing may be a way to enhance the mechanisms’ transparency and improve coordination. Strengthened information sharing will enable other subregional mechanisms to understand the scale of the mechanisms’ proposed investments and their impact on the whole subregion, as well as provide potential opportunities for cooperation. Second, it is essential to develop norms and standards for the optimal management of natural resources for energy-related activities. Developing norms and standards may keep nations from choosing norms that benefit themselves but not the whole subregion. Finally, considering the context of the region is important, especially whether the actors share a largely homogeneous ecosystem. If actors in a geographical space share a largely homogeneous ecosystem, considering the negative impacts of transboundary externalities, they will be more willing to make compromises and cooperate to manage the energy trilemma. This paper assesses the engagement of the Association of Southeast Asian Nations (ASEAN) and indicates that the lack of sharing a largely homogeneous ecosystem between mainland Southeast Asia and maritime Southeast Asia has weakened ASEAN engagement in solving the energy trilemma in the Mekong subregion. However, ASEAN should still increase its participation in the Mekong subregion’s energy sector. This would complement its efforts to push forward regional power integration plans such as the “ASEAN Power Grid,” “ASEAN Economic Community Blueprint,” and “ASEAN Master Plan 2025.”
Topic:
Security, Poverty, Governance, Sustainability, and Energy
Political Geography:
China and Asia

1313. Advancing a Rules-based Maritime Order in the Indo-Pacific

Author:
Jeffrey Ordaniel and John Bradford
Publication Date:
07-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
Authors of this volume participated in the Indo-Pacific Maritime Security Expert Working Group’s 2021 workshop that took place, virtually on March 23-24. The working group, composed of esteemed international security scholars and maritime experts from Japan, the United States, and other Indo-Pacific states, was formed to promote effective U.S.-Japan cooperation on maritime security issues in the region through rigorous research on various legal interpretations, national policies, and cooperative frameworks to understand what is driving regional maritime tensions and what can be done to reduce those tensions. The workshop’s goal is to help generate sound, pragmatic and actionable policy solutions for the United States, Japan, and the wider region, and to ensure that the rule of law and the spirit of cooperation prevail in maritime Indo- Pacific. The Indo-Pacific Maritime Security Expert Working Group’s 2021 workshop and this volume were funded by a grant from the U.S. Embassy Tokyo, and implemented in collaboration with the Yokosuka Council on Asia Pacific Studies (YCAPS).
Topic:
Security, International Law, Maritime, and Crisis Management
Political Geography:
Japan, United States of America, Indo-Pacific, and South China Sea

1314. The United States and Viet Nam: Charting the Next 25 Years in Bilateral Security Relations

Author:
Jeffrey Ordaniel
Publication Date:
09-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
Pacific Forum, with support from the Defense Threat Reduction Agency (DTRA) and in collaboration with the Diplomatic Academy of Viet Nam (DAV), organized the inaugural Track 2 U.S.-Viet Nam Security Dialogue on May 18-20, 2021. Strategic thinkers from the United States and Viet Nam, including scholars, policy experts, and retired military and government officials, participated in the dialogue. This report contains the general summary of the discussions. The recommendations contained in this report, unless otherwise specifically noted, were generated by the discussions as interpreted by the Principal Investigators. This is not a consensus document. Both the agenda and participant list are included in the appendix; all participants attended in their private capacity.
Topic:
Security, Defense Policy, Diplomacy, Bilateral Relations, and Dialogue
Political Geography:
Vietnam, North America, Southeast Asia, and United States of America

1315. The United States and Indonesia: Re-converging Security Interests in the Indo-Pacific

Author:
Jeffrey Ordaniel
Publication Date:
09-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
Pacific Forum, with support from the Defense Threat Reduction Agency (DTRA) and in collaboration with the Centre for Strategic and International Studies Indonesia (CSIS), organized the inaugural Track 2 U.S.-Indonesia Security Dialogue on June 1-3, 2021. Thought leaders from the United States and Indonesia, including scholars, policy experts, and retired military and government officials, participated in the dialogue. This report contains the general summary of the discussions. The recommendations contained in this report, unless otherwise specifically noted, were generated by the discussions as interpreted by the Principal Investigators. This is not a consensus document. Both the agenda and participant list are included in the appendix; all participants attended in their private capacity.
Topic:
Security, Foreign Policy, Defense Policy, and Strategic Autonomy
Political Geography:
Indonesia, North America, United States of America, and Indo-Pacific

1316. European Contributions to Indo-Pacific Maritime Order

Author:
David Scott
Publication Date:
10-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
This paper looks at European contributions to the Indo-Pacific maritime order. The policy significance is two- fold. Firstly, the Indo-Pacific has become an increasingly crucial geographic region, with a constellation of leading powers. The United States and Japan face a rising China, with India a vital swing state. European powers are now faced with choices of policy in response to power competition in the Indo-Pacific. This also reflects the rising geo-economic importance of the region, home to the world’s most populous countries, India and China, and critical commercial sea lanes. Secondly, European actors–France, Germany, the Netherlands, the United Kingdom, and the European Union (EU) –have all announced various specific Indo-Pacific strategies to support their interests. Nevertheless, despite European interests and contributions to Indo-Pacific security, the European response to China-related maritime challenges, such as those in the South China Sea, has been too limited. European states are finding it difficult to balance national security interests tied to maritime stability and rules-based order in the region, with economic interests tied to China, the world’s second-largest economy. Europe needs a principled approach and a long-term view of its overall interests in the South China Sea and the wider maritime Indo-Pacific.
Topic:
National Security, Geopolitics, Maritime, and Strategic Competition
Political Geography:
Europe and Indo-Pacific

1317. Foes to Partners: 25 Years of U.S.-Vietnam Relations

Author:
Jeffrey Ordaniel and Ariel Stenek
Publication Date:
10-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
Authors of this volume participated in the inaugural U.S.-Vietnam Next-Generation Leaders Initiative. With backgrounds in academia, public policy, military and industry, the cohort brings rich insights on the past, present, and future of the U.S.-Vietnam relationship. Between October 2020 and April 2021, cohort members engaged with senior experts and practitioners as they developed research papers addressing various aspects of the bilateral relationship.
Topic:
Security, Diplomacy, Bilateral Relations, and Economy
Political Geography:
Vietnam, North America, Southeast Asia, and United States of America

1318. US-Taiwan Deterrence and Defense Dialogue: Dealing with Increased Chinese Aggressiveness

Author:
Ralph A. Cossa
Publication Date:
10-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
Taiwan needs much stronger friendships and more support, particularly from the United States, to counter Chinese moves and enhance deterrence of, and its defense potential against, Beijing. This is urgent because Taiwan no longer holds the qualitative advantage it once had over China’s People’s Liberation Army (PLA). The United States supports a strong, resilient, and democratic Taiwan capable of maintaining its autonomy and ability to counter coercion and defend itself from any source, especially from China. Absent this, Washington’s widely shared vision of a free and open Indo-Pacific would be permanently undermined. It is clear, therefore, that the United States and Taiwan should step up their joint work and strengthen their security relationship, and it is critical that they do so expeditiously. At the same time, from a US perspective, it is important not to embolden Taipei or exceedingly raise its expectations about the US role to deter and defend against Beijing. While Washington has an interest in strengthening the island’s deterrence and defense potential vis-à-vis Beijing, it also does not want to encourage Taipei to become belligerent toward Beijing. Engagement, therefore, involves striking a tough balance, and many topics to that effect remain difficult—and much too sensitive—to address and discuss at the official level, particularly when it comes to deterrence and defense questions.
Topic:
Defense Policy, Bilateral Relations, Deterrence, and Dialogue
Political Geography:
China, Taiwan, Asia, North America, and United States of America

1319. Imagined Currencies: How the DPRK Uses Cryptocurrency to Blunt Sanctions

Author:
Michael Buckalew
Publication Date:
11-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
This research provides a contemporary study of how and why the Democratic Peoples’ Republic of Korea (DPRK) chose to integrate cryptocurrency into its sanctions evasion strategy, as well as the US government’s response to this via its financial services regulatory and federal law enforcement agencies. The increased coverage and efficacy of US and international sanctions, especially during and since President Obama’s second term (2013-2017) forced the DPRK to find new sources of revenue to maintain elite domestic support and fund their weapons programs. The creation and proliferation of cryptocurrency, which allows for both a digital store of value and a means of exchange outside of the traditional international finance system, opened up an entirely new means by which the DPRK was able to obtain and move funds. Much the DPRK’s cryptocurrency is obtained by the through the use of illicit methods and their success has blunted the impact of sanctions as a policy tool. As a result, US financial services regulators and law enforcement have moved to regulate cryptocurrency and crack down on illegal activities associated with it, such as ransomware payments. However, US regulations regarding cryptocurrency remain largely fragmented across agencies and various local jurisdictions. This research highlights the underappreciated role played by the US Treasury Department and the semi-independent agencies under its aegis in turning policy goals into enforceable administrative law. It also finds a high degree of continuity in the development and application of sanctions between the Obama and Trump administrations against the DPRK. Furthermore, this study demonstrates the need for policymakers to develop a more comprehensive US legal framework around regulation of cryptocurrency to close off growing illicit revenue generation by hostile actors. The study then briefly touches on the increased importance of the DPRK’s digital activities during COVID-19. Finally, this study outlines three potential methods by which to manage risks posed by cryptocurrency: 1) a public-private partnership to create s standards setting or certification organization to self-police the industry; 2) the US government using its sovereign authority to legislate and regulate; or 3) an outright banning of cryptocurrency activities in the United States.
Topic:
Sanctions, Finance, Cryptocurrencies, and Illicit Financial Flows
Political Geography:
Asia and North Korea

1320. The United States and Singapore: Indo-Pacific Partners

Author:
Jeffrey Ordaniel and Ariel Stenek
Publication Date:
12-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
Authors of this volume participated in the inaugural U.S.- Singapore Next-Generation Leaders Initiative, sponsored by the U.S. Department of State, through the U.S. Embassy Singapore. With backgrounds from academia, public policy, civil society and industry, the cohort brings rich insights on the past, present, and future of the U.S.-Singapore relationship. Between September 2020 and August 2021, cohort members engaged with senior experts and practitioners as they developed research papers addressing various aspects of the bilateral relationship.
Topic:
Security, Diplomacy, International Cooperation, Markets, Bilateral Relations, Reform, and Partnerships
Political Geography:
North America, Singapore, Southeast Asia, United States of America, and Indo-Pacific