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1. US-ASEAN Digital Economy Cooperation

Author:
Hanh Nguyen
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
Pacific Forum
Abstract:
Long criticized for its lackluster record in economic engagement with Southeast Asia, the US is now looking to bolster digital economy cooperation with the region as part of its Indo-Pacific strategy. Both sides have already engaged in several cooperation initiatives to strengthen Southeast Asia’s digital capacities. These actions/engagements aim to help the region capture the immense benefit and respond to potential socioeconomic disruptions brought by the digital economic boom. However, US-ASEAN cooperation will have to deal with two challenges. First, China has already established a comprehensive and prevalent presence in the region’s digital economy, from hard infrastructure and customer-facing businesses to developing digital standards. Second, Southeast Asia’s diversity in economic development leads to varied capacities among its members. These attributes carry certain security complications for Southeast Asia and the US in the long run. Addressing them will require both sides to further boost cooperation, particularly in shaping regional digital standards.
Topic:
Economics, International Cooperation, Digital Economy, and ASEAN
Political Geography:
North America, Southeast Asia, United States of America, and Indo-Pacific

2. RCEP and Indonesia: Economic Reform and Prospects for Implementation

Author:
Yose Rizal Damuri and Deni Friawan
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The conclusion of the Regional Comprehensive Economic Partnership (RCEP) is very important for Indonesia as it may bring many benefits to the country. This paper is an attempt to see the role of domestic political-economy dynamics in facilitating and constraining Indonesia’s decision to join, ratify, and implement a free trade agreement (FTA). It also seeks some understanding on whether an FTA can bring significant market liberalisation. This paper focuses on two areas of observation. First, it discusses the current progress of the legislative process and public acceptance of the RCEP agreement in Indonesia and how the process is influenced by the political-economy dynamics of the country. Second, the paper also looks at the potential impacts of the agreement on Indonesia’s current reform agenda, especially the recently passed Jobs Creation Law (Law No. 11/2020). For these observations, we conduct a content analysis on RCEP-related news published in two newspapers in Indonesia, namely Kompas and the Jakarta Post. In addition to content analysis, we also conducted interviews with stakeholders, including parliament members and government officials from the Ministry of Trade who have been actively involved in RCEP negotiations and the ratification process. The paper provides some remarks and recommendations for the future agenda of RCEP ratification and implementation in Indonesia.
Topic:
Economics, Reform, Policy Implementation, Free Trade, and Trade
Political Geography:
Indonesia and Southeast Asia

3. The Indo-Pacific Economic Framework and Digital Trade in Southeast Asia

Author:
Andreyka Natalegawa and Gregory B. Poling
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
In October 2021, the Biden administration announced the development of an Indo-Pacific Economic Framework (IPEF) with partner nations to “define our shared objectives around trade facilitation, standards for the digital economy and technology, supply chain resiliency, decarbonization and clean energy, infrastructure, worker standards, and other areas of shared interest.” Details on the framework are still being worked out, but it now seems that those six areas of focus have been distilled into four negotiating “pillars.” Deputy U.S. Trade Representative Sarah Bianchi said in early February that these would include “fair and resilient trade, supply chain resilience, infrastructure and decarbonization, and tax and anticorruption.” The Office of the U.S. Trade Representative (USTR) will likely lead negotiations on the first, while it appears that the Commerce Department will take the lead on the other three. The details of each pillar will be worked out in the months ahead, but the Biden administration is certain to face challenges and trade-offs across each, given the diversity of economies and political constraints across the region. USTR has said the trade pillar will be “high-ambition” and include binding commitments. But this will be complicated by the fact that the administration plans to roll out the IPEF through executive action rather than as a traditional trade deal requiring congressional approval. This pathway will help the framework sidestep political obstacles that agreements like the Trans-Pacific Partnership faced before Congress, but it also means that the administration cannot offer increased market access or any other concessions that would require changes to U.S. law. Moreover, moving forward with the IPEF through executive action has led to concerns among partners that the framework could be vulnerable to U.S. domestic politics or that a future administration may well roll back or abandon the framework. Given these self-imposed constraints, the administration will face headwinds trying to convince countries to sign on to high-standard provisions on digital trade, labor, and environmental standards that might run counter to their perceived short-term political or economic interests. One possible solution would have been to make the involvement in the other three pillars, where there are likely to be more tangible benefits for other countries, contingent on an agreement in the trade pillar. But that would run counter to the desire to get as many countries on board as possible. So, the administration has instead indicated that countries will be invited to engage in each pillar a la carte. And while like-mindedness in and of itself does not immediately guarantee their support for the IPEF, the likely result is that only Japan, Australia, New Zealand, Singapore, and perhaps South Korea—the most developed economies which already share U.S. standards on digital trade, environment, and labor—will engage with USTR on the trade pillar. But a wider array of economies will likely join the talks with the Commerce Department on the other three.
Topic:
Economics, International Trade and Finance, Digital Economy, and Economic Cooperation
Political Geography:
Asia, Southeast Asia, and Indo-Pacific

4. US Southeast Asia Policy: Towards A Balance of Commitment Approach

Author:
Prashanth Parameswaran
Publication Date:
03-2022
Content Type:
Special Report
Institution:
East-West Center
Abstract:
Dr. Prashanth Parameswaran, a Fellow at the Woodrow Wilson International Center for Scholars and a Senior Columnist at The Diplomat Magazine, explains that "A balance of commitment approach in U.S. Southeast Asia policy can help policymakers be attentive to both the interrelationships between power, threats and resources shaping decisions in the U.S. domestic political system and the careful calibration of components in commitment level and distribution in the Southeast Asia required to sustain an expanded, balanced approach that serves U.S. interests and meets regional needs."
Topic:
Security, Foreign Policy, Economics, Domestic Politics, and Strategic Interests
Political Geography:
North America, Southeast Asia, and United States of America

5. ASEAN’s Cambodian Stress Test

Author:
Tan Sri Munir Majid
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
The Association of Southeast Asian Nations (ASEAN), has faced an unprecedented challenge since the military junta seized power in a coup in Myanmar in 2020. Departing from its initial premise of ‘non-interference’ in the domestic policies of its member states, the regional group decided to ban Myanmar’s military representatives from meetings and summits. The five-point plan for consensus was supported by most members, however, Cambodia’s tenure as Chair of this organisation has brought the plan’s efficacy and longevity into question. At a time when Europe stands united against Russian actions in Ukraine, with a coherent and consistent response from states across the continent, can ASEAN do the same as it seeks to find a peaceful solution in the case of Myanmar?
Topic:
Foreign Policy, Economics, ASEAN, Regional Politics, and Russia-Ukraine War
Political Geography:
Cambodia and Southeast Asia

6. New Opportunities for the United States-Kingdom of Thailand Alliance in the Indo-Pacific

Author:
Lance D. Jackson
Publication Date:
09-2022
Content Type:
Special Report
Institution:
East-West Center
Abstract:
In March 2022, the East-West Center in Washington (EWCW), in collaboration with the Royal Thai Embassy, Washington, DC, convened a two-day seminar in which experts from Thailand and the United States discussed issues and opportunities for the US-Thailand alliance. The workshop included a diverse array of discussants hailing from government, military, academic, think tank, and private sector backgrounds. This report, which adheres to the “Chatham House Rule” under which observations referred to in the report are not attributed to any individual participant, is a summary of the group discussions and the key themes from the seminar. The recent signing of the United States-Thailand Communique on Strategic Alliance and Partnership and a memorandum of understanding (MOU) focused on promoting supply chain resilience on July 10, 2022, highlight the pertinence of this report and the associated seminar. The topics detailed in this report aligned with many of the pressing issues addressed in the Communique and MOU, including expanding law enforcement cooperation, deepening cybersecurity collaboration, supporting resilient transportation corridors, advancing military modernization, and catalyzing Thailand’s bio-circular-green (BCG) economy. The report also covered topics and key themes from a series of jointly produced public webinars and an Asia Pacific Bulletin series of policy briefs on US-Thai affairs.
Topic:
International Relations, Climate Change, Economics, Education, Environment, Politics, Science and Technology, Governance, Population, Leadership, Public Health, and Travel
Political Geography:
Asia, North America, Thailand, Southeast Asia, United States of America, and Indo-Pacific

7. Economic Zones and Local Income Inequality: Evidence from Indonesia

Author:
Cecília Hornok and Sidan Raeskyesa
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Economic zones can be powerful drivers of economic growth in developing countries. However, less is known about their distributional impact on the local society. This paper provides empirical evidence from Indonesian provinces on the relationship between economic zones and within-province income inequality. Estimates from panel regressions and synthetic control case studies suggest that this relationship is positive overall. The estimated rise in income inequality after a zone opens is relatively small on average and may be short-lived. However, the average estimate masks large regional differences, which suggests that the inequality implications of economic zone policies depend on local conditions. One explanation for the rise in inequality is that the unskilled population benefits disproportionately less from the policy. As a remedy, we propose education and training programs that target the poor and unskilled and in which companies also actively participate.
Topic:
Economics, Emerging Markets, Globalization, Economic Growth, and Income Distribution
Political Geography:
Indonesia, Asia, and Southeast Asia

8. Ahead of Biden-Moon Summit, South Koreans and Americans Align on China and North Korea

Author:
Karl Friedhoff and Suh Young Park
Publication Date:
05-2021
Content Type:
Commentary and Analysis
Institution:
Chicago Council on Global Affairs
Abstract:
Chicago Council survey data find majorities in South Korea view China as more of a security threat than a security partner and as more of an economic threat than an economic partner. On May 21, South Korea’s President Moon Jae-in will meet President Joe Biden at the White House. In his first 100 days in office, Biden’s foreign policy has focused on repairing alliances and setting the administration’s policy toward China—in March and April alone, the administration participated in US-China talks in Alaska, 2+2 meetings in South Korea and Japan, trilateral talks among national security advisers, and Japanese Prime Minister Yoshihide Suga's visit to Washington. Moon’s visit will add North Korea to the agenda. The two leaders meet at a time when there are significant gaps on their preferred paths forward to dealing with Beijing and Pyongyang. However, recent Chicago Council surveys find that attitudes among publics in South Korea and the United States are remarkably similar when it comes to China and North Korea.
Topic:
Security, Foreign Policy, Economics, and Public Opinion
Political Geography:
China, Asia, South Korea, North America, and Southeast Asia

9. Could the COVID-19 Crisis Affect Remittances and Labour Supply in ASEAN Economies? Macroeconomic Conjectures Based on the SARS Epidemic

Author:
Alberto Posso
Publication Date:
04-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Debates on resilience to economic shocks in the ASEAN region focus on what policymakers can do to mitigate negative impacts associated with financial-economic crises. The COVID-19 pandemic has made it clear that the region is also vulnerable to health-economic crises. This study applies a difference-in-difference strategy to data from the 2003 SARS epidemic to shed light on how a global pandemic can affect labour supply and remittances in ASEAN economies. Findings suggest that even a relatively short-lived epidemic can have long-lasting effects on labour supply.
Topic:
Economics, Labor Issues, Pandemic, COVID-19, and Supply
Political Geography:
Asia and Southeast Asia

10. Exploring Digital Economic Agreements to Promote Digital Connectivity in ASEAN

Author:
Sarah Y. Tong, Yao Li, and Tuan Yuen Kong
Publication Date:
07-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper explores modules and articles on cooperation concerning the digital economy that are applicable for Association of Southeast Asian Nations (ASEAN) countries under certain circumstances. It investigates the progress of and obstacles to ASEAN’s digital connectivity, as well as features of existing Digital Economic Agreements and digital economy-related articles in other agreements. We propose the use of a differentiated strategy and steps to promote integration for ASEAN countries covered in this research.
Topic:
Economics, Globalization, International Trade and Finance, Digital Economy, and Digitalization
Political Geography:
Asia and Southeast Asia