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  • Author: Sean P. Connell
  • Publication Date: 01-2014
  • Content Type: Policy Brief
  • Institution: East-West Center
  • Abstract: The Korean government's "creative economy" agenda reflects growing consensus that Korea's future growth and prosperity depends on its ability to become a global leader in developing and commercializing innovative new products, services, and business models. To succeed, the Korean government must address regulatory, structural, educational, and cultural obstacles that have constrained Korea's ability to fully utilize its innovative capacities. This new emphasis on innovation brings Korea into closer alignment with the United States, which has long focused on innovation in its growth strategies. Moreover, it comes during the early stages of implementation of the US-Korea Free Trade Agreement (KORUS), which intersects with important areas of Korea's innovation framework policies. Policymakers, businesses, and researchers in both countries should examine potential new opportunities to increase cooperation around initiatives aimed at fostering innovation and growth, both within the bilateral context and at a global level.
  • Topic: Economics, Industrial Policy, International Trade and Finance, Treaties and Agreements, Bilateral Relations
  • Political Geography: United States
  • Author: Marcus Noland
  • Publication Date: 04-2014
  • Content Type: Policy Brief
  • Institution: East-West Center
  • Abstract: Economic engagement between South and North Korea is often justified as a means of encouraging economic and social evolution in North Korea, with the ultimate goal of national unification. The South has invested heavily in the North, and firms have employed more than 50,000 workers. Yet expectations of a transformational impact rest on unexamined assumptions. The North recognizes the Trojan horse nature of the engagement policy: results of an original survey of South Korean employers show that the North Korean government has largely circumscribed the exposure of its citizens to both South Koreans and market-oriented economic practices, in the process violating labor rights defined by covenants to which both countries belong. The problem seems intractable, given that South Korea's diplomatic commitment to engagement with North Korea trumps labor rights concerns and South Korean firms perceive that the North Korean status quo confers benefits. As the experience of labor rights movements elsewhere shows, conditions will likely improve only if an aroused citizenry—here, the South Koreans—demands change.
  • Topic: Diplomacy, Economics, Human Rights, Bilateral Relations, Reform
  • Political Geography: Asia, South Korea, North Korea
  • Author: Philip Shetler-Jones
  • Publication Date: 05-2012
  • Content Type: Policy Brief
  • Institution: East-West Center
  • Abstract: During his recent visit to Japan, British Prime Minister David Cameron signed a landmark defense cooperation agreement with Japanese Prime Minister Yoshihiko Noda making the United Kingdom Japan's only defense technology partner after the United States. The agreement comes just months after Japan relaxed its post-World War II restrictions on its participation in international research, development and trade in defense equipment. There are few publicly-available specifics on the deal, but official statements from Tokyo suggest the plan is to start small and slowly increase cooperation. Artillery and tank technology has been mentioned; along with helicopters, mine detection and chemical protection suits.
  • Topic: Defense Policy, Arms Control and Proliferation, Science and Technology, Treaties and Agreements, War, Biosecurity, Bilateral Relations
  • Political Geography: United States, Japan, Tokyo
  • Author: Masako Ikegami
  • Publication Date: 04-2012
  • Content Type: Policy Brief
  • Institution: East-West Center
  • Abstract: As North Korea's latest rocket-missile launch approaches, there is speculation whether Beijing can halt Pyongyang's missile ambitions. In my view, Beijing will turn a blind eye towards North Korea's latest provocation, while simultaneously calling for restraint by all parties. Recently, the China-North Korea “blood alliance,” a concept of allies that originated during the Korean War, has been renewed, and it is in China's interests that North Korea consolidates its “absolute deterrence” capability to deter US forces in the region.
  • Topic: Foreign Policy, Defense Policy, Arms Control and Proliferation, Nuclear Weapons, Bilateral Relations
  • Political Geography: United States, China, North Korea
  • Author: Nick Bisley
  • Publication Date: 04-2012
  • Content Type: Policy Brief
  • Institution: East-West Center
  • Abstract: US Assistant Secretary of State Kurt Campbell has just completed a lightning visit to Australia for formal discussions with newly installed Foreign Minister Bob Carr. In spite of the political turmoil that brought Carr to office, the Australia-US alliance is in the best shape of its 60-year history. Having begun as a Cold War convenience, about which the United States was not enthusiastic, it has become a key part of Washington's regional role and a cornerstone not only of Australia's defense and security policy, but of its broader engagement with the world. The arrival in early April of the US Marine Corps to begin six-month training rotations in Darwin is emblematic of the alliance's standing and its evolution.
  • Topic: Security, Defense Policy, Arms Control and Proliferation, Cold War, Diplomacy, Bilateral Relations
  • Political Geography: United States, Washington, Asia, Australia/Pacific
  • Author: Robert Sutter
  • Publication Date: 02-2012
  • Content Type: Policy Brief
  • Institution: East-West Center
  • Abstract: As Sino-American competition for influence enters a new stage with the Obama administration's re-engagement with Asia, each power's legacies in the region add to economic, military and diplomatic factors determining which power will be more successful in the competition. How the United States and China deal with their respective histories in regional affairs and the role of their non-government relations with the Asia- Pacific represent important legacies that on balance favor the United States.
  • Topic: Foreign Policy, Arms Control and Proliferation, Diplomacy, Economics, International Trade and Finance, Bilateral Relations
  • Political Geography: United States, China, America, Asia
  • Author: Stephan Haggard, Marcus Noland
  • Publication Date: 06-2012
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: A central hope of engagement with North Korea is that increased cross-border exchange will encourage the strengthening of institutions, and eventually, a moderation of the country's foreign policy. An unprecedented survey of Chinese enterprises operating in North Korea reveals that trade is largely dominated by state entities on the North Korean side, although we cannot rule out de facto privatization of exchange. Little trust is evident beyond the relationships among Chinese and North Korean state-owned enterprises. Formal networks and dispute settlement mechanisms are weak and do not appear to have consequences for relational contracting. Rather, firms rely on personal ties for identifying counterparties and resolving disputes. The weakness of formal institutions implies that the growth in exchange does not conform with the expectations of the engagement model and may prove self-limiting. The results also cast doubt that integration between China and North Korea, at least as it is currently proceeding, will foster reform and opening.
  • Topic: International Trade and Finance, Bilateral Relations
  • Political Geography: China, Israel, North Korea
  • Author: Stephan Haggard, Marcus Noland
  • Publication Date: 06-2012
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: Economic integration between North and South Korea occurs through three modalities: traditional arm's-length trade and investment, processing on commission (POC) trade, and operations within the Kaesong Industrial Complex (KIC). In order, these three modalities are characterized by decreasing exposure of South Korean firms to North Korean policy and infrastructure. Through a survey of 200 South Korean firms operating in North Korea we find that these modalities of exchange matter greatly in terms of implied risk. For example, firms operating in the KIC are able to transact on significantly looser financial terms than those outside it. We find that direct and indirect South Korean public policy interventions influence these different modalities of exchange and thus impact entry, profitability, and sustainability of South Korean business activities in the North. In effect, the South Korean government has substituted relatively strong South Korean institutions for the relatively weak Northern ones in the KIC, thus socializing risk. As a result, the level and type of cross-border integration observed in the survey is very much a product of South Korean public policy.
  • Topic: Foreign Policy, International Trade and Finance, Bilateral Relations, Infrastructure
  • Political Geography: Israel, Korea
  • Author: David Capie, Robert Ayson
  • Publication Date: 03-2011
  • Content Type: Policy Brief
  • Institution: East-West Center
  • Abstract: The most visible sign of the new warmth in the United States-New Zealand bilateral relationship was US Secretary of State Hillary Clinton's visit to New Zealand in November 2010, which culminated with the signing of the "Wellington Declaration." The 400-word document announced a US-NZ "strategic partnership" built on "practical cooperation" in the South Pacific, and enhanced dialogue including regular foreign minister level and political-military meetings. It also noted a joint commitment to tackle pressing challenges including climate change, nuclear proliferation, and extremism. In addition, there was a commitment to an expansion of US-NZ "commercial and trade relations." Robert Ayson and David Capie discuss the possible future direction of the developing US-NZ relationship.
  • Topic: International Cooperation, Bilateral Relations
  • Political Geography: United States, Australia/Pacific, New Zealand
  • Author: Huma Yusuf
  • Publication Date: 03-2011
  • Content Type: Policy Brief
  • Institution: East-West Center
  • Abstract: The nine-week standoff between the United States and Pakistan over the fate of Raymond Davis, an American arrested in Pakistan after shooting two men at a traffic stop, ended on March 16 with his sudden release from jail. Davis was freed under Islamic law, which allows a murderer to receive pardon from the family of his victims on payment of compensation, or “blood money” Religious parties protested the decision, stating that the law had been applied incorrectly to satisfy US demands for Davis' release. Still, media and analysts inside and outside Pakistan have termed the development a “win” for the country.
  • Topic: Foreign Policy, Diplomacy, Bilateral Relations
  • Political Geography: Pakistan, United States