Obama’s State of the Union once again Demonstrates that the US doesn’t really Care that much about Asia


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This graphic is a word-cloud of the president’s state of the union address last week. I am not even sure the word ‘Asia’ is in there.

The following is a local re-up of a piece I originally wrote for the Lowy Institute, where I now blog twice a month. Basically, I argue a theme regular readers here will have heard before – that the ‘pivot’ to Asia is mostly an elite project in the US and that most Americans don’t really care about Asia that much. If I say ‘China’ to my friends in the US, the first thing they think of is cheap stuff in Walmart. So whenever anyone tells me that Asia ‘needs’ the US, or that we’re ‘ceding’ Asia to China, or even Russia (oh, please), because we missed the ASEAN Regional Forum or whatever, I just roll my eyes. Without the American consumer Asian economies would collapse, and, Red Dawn fantasies aside, no Asian state is a security threat to the US (barring the infinitesimally small likelihood of Chinese nuclear strike on the US homeland).

What that means is that the only Americans who think that the US needs Asia are those who support US global hegemony and therefore cannot differentiate among US core interests – such as basic stability in Canada and the Caribbean basin, or a secure oil flow from the Persian Gulf – and US choices to be involved in places like Iraq or South Korea. The pivot to Asia, much like NATO 20 years after the Cold War, is a choice, not a necessity. That doesn’t necessarily mean we shouldn’t ‘pivot’ – indeed, I think it is a good idea myself – but it must also be admitted that retrenchment from many of these commitments would not obviously harm US security, even if many allies would not like it. Neocons and think-tanker far too often elide this crucial distinction. Is Asia important? Does it matter? Yes, sure. Does the US need Asia? No – unless you believe the US and its globe-spanning hegemony are identical (hint: they aren’t). US allies interests are not always synonymous with America’s and if we don’t see that, we invite free-riding, chain-ganged conflicts, and a gargantuan national security state.

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My First Post at the Lowy Institute: 3 Non-Predictions for 2014


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So this year, I am writing twice a month for the Lowy Institute – a foreign policy and international relations think-tank in Australia. My work will go on their blog-line, called the Interpreter. My author page with them is here. I’ve had Lowy in my own blog-roll (on the right side of this page) for awhile. It is a good site, particularly if you are interested in Australia. Now Lowy is seeking to break out into East Asian politics more generally. I am happy to participate in that, and I would like to thank the Interpreter editor, Sam Roggeveen, for recruiting me. My first post with them, here, was about two weeks ago. Sam had the clever idea to invert the usual ‘predications for the coming year’ pieces that fill January with predictions of things that won’t happen. My own record of predictions on this site (2010, 2010, 2011) are pretty spotty, so this was a nice challenge.

So here are three things that you think might happen in Eat Asia this year, but won’t:

1. There will be no Sino-Japanese war. Any scuffles will be contained.This was would be so destructive, there’s no way the CCP will let the PLA pursue real escalation.

2. North Korea will not change. That might sound like the safest prediction ever, but actually political science and Korea studies have a long history of arguing that NK is about to collapse. But it won’t.

3. ASEAN will stay useless and over-rated. Western liberals and international organization majors really, REALLY need to stop hyping ASEAN. It’s a joke, and it will stay one. The real story in Asia is its refusal to regionalize/organize, not the incipient regionalization westerners are so desperate to find in every meeting of Asian leaders. And don’t even talk to me about ASEM. These are all talk-shops. East Asia is the land of Hegelian nation-state. Get used to it.

Here’s that full essay:

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My January Diplomat Essay: Top 5 Northeast Asian Security Stories in 2013


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I know these exercises in end-of-year top 5s or top 10s can be silly or fanciful. But there is some value to trying prioritization. Part of social science is determining causal weights – which causes are most important among many possibilities. And that is the logic implicitly behind these sorts of turn-of-the-year lists. It’s also fun to try after a long year. So here is mine; I imagine these will seem pretty predictable though.

“It’s that time of year when analysts everywhere throw out predictions of the year to come and retrospectives of the past year. It’s practically impossible to build a fair metric for these things, but it is fun to try. Here I define consequentiality as those events likely to shape future events on large geopolitical questions in northeast Asia, specifically commerce and conflict. Here is one such list from the Financial Times on Asia. Here is mine:

1. The expansion of the Chinese Air Defense Identification Zone (ADIZ)

This strikes me as the most important regional geopolitical event of the year, because it effectively ratifies what many analysts have suspected of coming for a long time – a Sino-Japanese competition over Asia, with the US hovering in the background, tilting toward Japan. This will be the defining competition of Asia for the next several decades, and the trend-lines broadly favor China – Japan and the US are in decline relative to China.

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My December Newsweek Japan Essay: Japan as a Unique Bulwark to Chinese Hegemony in Asia


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I recently joined Newsweek Japan in a more official capacity as a regular contributor. I am pleased to do so, as I increasingly think that Japan is the primary bulwark to Chinese hegemony in Asia. So more and more, my research interest is drifting toward the Sino-Japanese competition as weightier than the inter-Korean competition.

In that vein, I wrote the following story for the current volume of Newsweek Japan. In brief, I argue that only Japan has the strength to really block China’s rise to hegemony in east Asia. Russia is too weak, especially out here. India just can’t seem to get its act together (I used to push India really hard as an obstacle, but it just doesn’t seem up to it.) I am a skeptic of the US pivot, and sheer distance alone means the US need not confront China unless it wants to. The US will never be under a Chinese ‘Monroe Doctrine’ as Asia might be in the future. That leaves Japan as a unique bulwark – a front-line state with the wealth and state/bureaucratic capacity to give China a real run for its money. Indeed, one way to see the current tension is as another round of Sino-Japanese competition for Asian leadership going back to the mid-19th century. (As always, I’d love to hear from the Japan mil-tech guys on all this.)

Elsewhere I have argued that China’s rise to hegemony is unlikely, in part because I think Japan will vigorously balance China. (Indeed, it probably is already.) So this essay is an expansion of that previous argument. The essay follows the jump.

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My September Diplomat Essay: Relax – Chinese Hegemony in Asia is Unlikely


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The following is a re-up of a piece I wrote for the Diplomat last month as part of an informal back-and-forth series with the National Interest this summer on the US pivot to Asia and AirSea Battle. (Here and here are some of the other entries.) That pic, which has got to be the grossest river in all China, is from here.

In brief, I increasingly think that ASB is a mistake, because it’s almost impossible to read it as anything other than hugely provocative from the Chinese point of view, no matter what we say to them about our peaceful intentions. (Read this, and tell me reasonable Chinese wouldn’t flip out.) It’s a classic example of the security dilemma, but as I argue below, I am not really convinced that we actually need this high-tech, super-fearsome-sounding ASB right up in their face. More generally though, the pivot to Asia – a sharpening of American attention on the region, is probably a good idea. China is vastly more influential on American life than Israel or Iran. But the Middle East and Islam activates belligerent American religiosity so much, that I doubt we’ll really be able to pivot. In any case, the essay follows the jump and is written in an op-ed style.

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Guest Post – Dave Kang: “International Relations Theory and East Asian History”


AHN_HOUSEIt’s always my pleasure to guest-post my good friend Dave Kang. Dave teaches at the University of Southern California, runs their Korean Studies Institute (the pic), and knows way more about the issues of this website than I ever will. So if you aren’t reading his work yet, you should be. Here are some previous guest posts he’s written (one, two, three).

Here is his encouragement that you actually apply international relations theory to East Asia. I can’t agree more. There is far too much superficial think-tank wonkery about East Asia (how many nukes does China have? will Pyongyang test another missile? and so on), and not nearly enough real theory. Dave does that and you should too. So instead of writing yet another essay about the South China Sea, the essays referenced below should be good encouragement to write something richer.

“Thanks to Bob for letting me borrow his website yet again. I have an article “International Relations Theory and East Asian History” that appears in the current issue of the Journal of East Asian Studies, edited by Stephan Haggard. In conjunction with this post, Lynne Rienner will make the article freely available to all for the next 30 days; you can download it here until October 1.

The entire issue is devoted to the international relations of historical East Asia. The special issue features essays by James Anderson, Kirk Larsen, Jiyoung Lee, Seohyun Park, Kenneth Robinson, and Yuan-kang Wang, all exploring different aspects of IR and East Asia in many disparate epochs and areas.

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My ‘Diplomat’ Essay on whether these Youth Protests will Spread to Asia’s Democracies


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Here is a re-post of my July contribution to the Diplomat web magazine. It expands on a brief observation I made a few weeks ago – that a lot Asian democracies have the same characteristics that seem to have driven people into the streets in Brazil and Turkey.

Here is the best critical response I’ve gotten so far. In brief, it argues that my conditions for the revolts are so widely drawn, that arguably lots of states could see these kinds of revolts. That is a good point. And many of the commenters that the Diplomat said something similar – that Cambodia, Malaysia, and Thailand should also have been included in my piece as possibilities. I singled out India, the Philippines, and South Korea. I’m not a big expert in the area of modernization and contestation, so thoughtful comments would be great. Here we go:

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Could the Youth Protests of the EU, Middle East, Turkey, and Brazil Spread to Asia’s Corrupt Democracies?


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Jay Ulfelder and I had a Twitter conversation on this question in the last few days (here and here). But Twitter has such limited space, I thought I would break out our discussion on the blog and ask what others thought.

Watching all these riots – driven heavily by youth dissatisfaction, it seems – is making me wonder if this might spread to Asia’s democracies. A lot of the problems these protests are identifying exist in spades in Asia: high-handed, out-of-touch governments; election-proof pseudo-technocracies that act as unaccountable oligarchies; shallow, clique-ish political parties that provide no meaningful transmission belt of citizen preferences; massive government and business corruption; wasteful white-elephant spending to capture global ‘prestige’ while everyday services like health care and education are underfunded; closed political opportunity structures that regularly reward insiders and large corporations with crony connections to the state; wealthy, de-linking elites with 1% lifestyles wildly at variance with the rest of the population… That’s Asia too; there’s more than enough sleaze to go around.

Jay asked which countries might this apply to in Asia. My first thoughts were India, the Philippines, and South Korea among the democracies (given the obvious problems street protests face in non-democracies). Are those countries really governed better than Brazil? I doubt it. Anna Hazare pushed this sort of agenda in India a few years ago, and South Korea, which Asian case I know best, has all those Brazil problems particularly – and probably even worse than in Brazil. I’ve wondered for years why there isn’t more populist anger and protest over the cronyist, Seoul-based chaebol oligarchy that is Korean democracy. (I’m usually told it has something to do with ‘Confucian’ or ‘Asian’ values.)

It’s terribly hard to predict outbreaks of mass street protest of course, but if I’ve identified the broad structural conditions of the current wave correctly, and if protest in one locale seeds it in another (“cascades”), (two huge “if”s to be sure) then Asia’s oligarchic, corrupt democracies are/should be next.

I’m Done Defending Abe: the Japanese Right is getting Genuinely Creepy


protesting-comfort-women-by-bloggerswithoutbordersIf you’ve ever read this blog before, you know I try to avoid the details of the Korea-Japan tussle. It gets so emotional so fast. Like most Americans, I want Japan and Korea to reconcile so they can work together on the larger, more important issues of North Korea and China. I don’t take a position on the Dokdo/Takeshima flap. I refuse to call the Sea of Japan the ‘East Sea’ (do you want to re-name the Korea Strait too?). When Koreans push me about the war, I try to deflect the issue. It is really not appropriate for outsiders, especially Americans, to weigh in on the details of Asian disputes. We can’t be an umpire to local fights, and our intervention would be seen as illegitimate by the losing party anyway. This is also the USG’s position: we have no position other than that we want all the parties to work out the disagreements without coercion or force. That’s the right attitude IMO.

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My ‘Newsweek Japan’ Cover Story on the post-1979 ‘Asian Peace’ & Economic Miracle


Newsweek 3rd coverNewsweek Japan asked me to write an introductory essay for its January 16 special issue on tension in Northeast Asia (cover story to the left). I should have put this up 4 months ago, but I forgot and the arguments are still valid. Anyway, here is the link in Japanese, but I thought it would be useful to publish the original, untranslated version as well. (If you actually want the Japanese language version, email me for it please.)

The essay argues that Northeast Asia has benefited enormously from an ‘Asian peace’ in the last 35 years. All the remarkable growth in China and South Korea (as well as India and Southeast Asia) would not have happened without it. So fighting over some empty rocks (Liancourt Rocks, Pinnacle Islands) is a terrible idea. And for political scientists, the current Sino-Japanese tension is a good test of the hypothesis that economic interdependence brings peace. It’s fascinating to watch China especially try to figure out just how much economic gain to forego in pushing Japan over the Pinnacle Islands.

This was intended for their print edition, so there are no hyperlinks included in the text. Here we go:

“1979 was an important year in modern East Asia. It captures two of the region’s most important trends. It was the year of both the last serious military conflict between two East Asian countries – a Sino-Vietnamese border war – and the start of China’s capitalist modernization under Deng Xiaoping. These moments usefully frame the following thirty-four years: much of Asia has gotten substantially wealthier, and no major conflicts have broken out to upset that upward economic swing. This magnificent regional achievement has catapulted Asia, particularly East Asia, into the center of world politics.

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On Vacation for awhile – Here’s Some New Year’s Reading – See you in March


I break from blogging twice a year, but try to compile a good list of relevant articles I’ve found over the past few months. See you in about a month. Enjoy:

August

The Atlantic runs lots of good stuff on NK it seems to me: this on how NK impossibly continues to survive and this on how just about every NK watcher has wrongfully predicted its collapse.

Mixin Pei’s important piece on why China’s rise is overrated. My own sense of this is that Pei will be proven right in the next 10-15 years, but not sooner. China’s demographic, ecological, and corruption caps strike as growing worse, not better.

A nice piece from the FT on Korea’s biggest company – too bad no one wants to plumb the far-too-close relations between the chaebol and the ROKG Continue reading

USC-CSIS Conference on Korean Unification (3): DPRK ‘Sovereignty’ is a Sino-Russian Fig-Leaf to Slow Unification and Check US Power


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Here are part one and part two of this post. I spoke last Tuesday at a USC-CSIS conference on Korean unification. I learned a lot, and it was very good. If you’re interested in unification, start here with the primary report on which the conference was based. The principal investigators said a final wrap-up report will come at some point, and I’ll put up that link when it arrives.

My comments below are on the papers presented on Tuesday about neighboring states’ reactions to Korean unification. These papers aren’t publicly posted yet, so all the comments might not make sense. But in the interest of completism, I’m putting this up to round out my thinking on this excellent unification project. (For my earlier thoughts on dealing with NK, try this; for my travelogue of my trip to the DPRK, try this.)

My big beef with these sorts of conferences on NK – I go to a lot – is that inevitably outsiders, especially Chinese scholars, start laying down all sorts of guidelines, restrictions, parameters, etc. for unification, as if it’s our right to muck around in this thing. I can understand the national interest in doing so. But we shouldn’t have the temerity to try to legitimate our muddying of the waters in what is really an internal family affair. It would also help a lot if the Chinese would stop talking (not so much at this conference, but definitely at others I’ve gone to) about how Korea needs to respect its wishes, because China is big and important now, post-2008 Olympics. I heard one guy once even say that China is now the ‘veto-player’ on unification. That’s true of course in realist sense, but that sorta cockiness infuriates Koreans who’ve really soured on China in the last decade. I see the same kind of emergent Chinese bullying on unification that Southeast Asian littoral states see on the South China Sea. So I try to call that out whenever it seems necessary.

Anyway, here on my thoughts on Japan, Russia, and China’s role in this thing.

The International Relations Discipline and the Rise of Asia


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A few months ago, I was commissioned by the International Relations and Security Network of the Swiss Federal Institute of Technology to provide a brief write-up on how Asia’s rise will impact the formal discipline of international relations (IR) within political science. I didn’t get a chance to put it up earlier, and inevitably, the brief means sweeping judgments in just a few pages, but I think it’s a reasonable effort. Here is the version on their website; below it is reprinted:

“It is widely understood that international relations (IR) relies on modern (post-Columbus) and North Atlantic cases as the research base for its general theory. Our graduate students are well-versed in a heavily researched set of cases such as the Napoleonic Wars, World War I, or the Cuban Missile Crisis. While this is arguably ‘eurocentric’ training – white, western practitioners feigning to build ‘universal’ theory from just the cases and languages they know best from their own civilizational background – it might be also reasonably explained by Western dominance of world politics for so many centuries. So long as the West (including the USSR as a basically Western leftist project) so overawed the planet’s politics, then a modern and Atlantic prejudice was perhaps less narrow than it seems. Whatever the cause, this will likely change in the coming decades.

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Guest Post: Dave Kang: “Is America Listening to its East Asian Allies?”


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REK, Ed.: Regular readers will know that I like Dave’s work a lot. He’s been a good friend and mentor to me in this area. I am pleased to post a longer, fuller version of a book review he wrote for CSIS. My thanks to CSIS as well. If you aren’t reading Dave yet, you should be.

“Is America listening to its East Asian allies?: Hugh White’s The China Choice

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For all the recent attention on increasing tensions between the U.S., China, and East Asian countries, regional balance of power dynamics remain muted. The past few years have seen increased Chinese assertiveness, which has led many to expect that East Asian states will flock to the side of the U.S. This has not proven to be the case, however, and Hugh White’s thoughtful and bold new book, The China Choice: Why America Should Share Power, provides some clues as to why not. White argues that neither China nor America “can hope to win a competition for primacy outright, so both would be best served by playing for a compromise.” White concludes that the best policy would be an explicit “Concert of Asia” in which the U.S. and China agree to treat each other as equals and create two clear spheres of influence. White is probably right that a U.S. balancing strategy in East Asia is unlikely to succeed – yet a concert of Asia with two clearly defined spheres of influence would appear fairly similar in the eyes of East Asian states. East Asian countries are clearly hoping to find a pathway that avoids taking sides, and the best approach for the U.S. to take is a strategy that helps them achieve that goal.

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VP Debate once again tells Asia & the World that all We care about is the Middle East


Yes, it’s partisan, but it’s a somewhat useful deconstruction

 

First, I included the above video to reference a point I tried to make last week – that Romney flip-flopped so much in the first debate that I no longer have any idea what he thinks about the big issues of campaign. I just wish I knew wth Romney wants to do with the presidency. There has to be some purpose, some reason to vote for him, and I can’t find it. Someone tell me in a few coherent, specifics-laden paragraphs why I should vote for him? Not why Obama is a bad president – I know that already – but why Romney should be president. Honestly, I don’t know, which makes his presidential run look like a vanity project or something.

Second, did anyone else think that the vice-presidential debate once again broadcast to the world that our foreign policy is dominated by the Middle East? It was all about Iran, Syria, Libya, and Afghanistan. Obviously, these are all important places and issues. But it doesn’t take a lot of foreign policy training to know that Russia’s ever-more erratic course under Czar Putin, a possible euro-EU meltdown, or China are a lot more important to the US’ future than a bunch of small, poor fractured states in the Middle East. But no, let’s argue once again about Israel, Iran, terrorism, Iraq…  Good grief. There are other issues out there!

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Going to IQMR – Some Summer Asian Security Reading – Back in August


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I am off to the Institute for Qualitative and and Multi-Method Research for their summer training at Syracuse University. Take a look at the syllabus. Whoa. ‘Can you spell ‘Bayesian hermeneutics’ correctly, little Johnny? No? Me neither!’ But the preparation looks great for qualitative-types like me. I must thank Colin Elman and Andrew Bennett for taking me. The people in that pic look so much more lucid and intelligent than me, that I think they must have read the wrong file or something. I hope they don’t bust me playing ‘Halo’ in the back there…

If debating multicollinearity doesn’t sound like fun (yeah, I don’t really know what it means either, but I think it’s bad), then here is my regular list of good reads from the last few months before I go on break:

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Ranking US Allies: A Response to Stephen Walt, Andrew Sullivan & all those Canadians…


Who knew Canada could be so controversial…

 

Ok, this has gotta be my last response to the many comments from this sprawling series  (one, two, three, four, five) of posts on ranking US allies. Thanks for all the interest. Who knew Canada was so interesting or Canadians so passionate?

I’d like to thank Stephen Walt (whose blog I think is the best in IR) for linking this debate, and Andrew Sullivan for linking me twice. If you aren’t reading Sullivan yet, you’re at the wrong website. Thanks too to all those Canadians who came out of the woodwork to defend its boring relevance. Finally, who could fail to thank a website disturbingly entitled  f—-dgaijin.com?! (Yes, that’s the actual name; check it out for yourself; at least these guys know where we resident-foreigners stand in the East Asian racial food-chain – at the bottom.)

So here are some final thoughts on the many comments, but especially Walt and Sullivan:

1. I accept the arguments from several commenters that Turkey should be on the list. So here is a final list, a ‘top 12’ of US allies in order: Canada, Mexico, Saudi Arabia, Taiwan, India, Indonesia, Israel, South Korea, Japan, EU/NATO, Egypt, and Turkey.

2. I was please to see that Sullivan flagged – not necessarily approved, but just noted – my argument for Indonesia as America’s most important bridge to the Muslim world. I realize this is kinda off-beat, given that the ME is what dominates our perceptions of Islam and where Islamist pathologies are worst. (Here is a critic, a neocon perhaps, calling me ‘delusional’ for ranking Indonesia this way.) So here is a quick defense, more or less along the lines of what Secretary Clinton said a few years.

Indonesia is a syncretic model of pluralist Islam and politics; I think this is pretty widely accepted. No, it’s not as modern and liberal as we might like, but by the standards of the region, other developing countries, and the OIC, it is a paragon. Let’s be honest about that. It could easily be far, far worse (think Pakistan), which is why I find it unfortunate that we don’t pay attention much. We should not let the perfect be the enemy of the good, and a friendship with Indonesia doesn’t mean avoiding tough issues, just like engaging China doesn’t mean we should ignore human rights and other similar issues.

So in its own imperfect, struggling way, Indonesia represents the future of political Islam (speaking very broadly to be sure), not the past, which is a lot of what the ME represents and what Arab Spring is trying to break. If the flat-earth religious elites of places like Iran, Pakistan, or Saudi Arabia are allowed to dominate the global conversation on Islam, more conflict is likely. By contrast, Indonesia offers a possible model for Islam to live with both democratic politics and religious pluralism. That we should vigorously support such an effort, through some kind of alignment, strikes me as so self-evident, that I am amazed that we never talk about this.

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More on US Allies (2): A Response to My Critics


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I found the above image here.

Here is part one of my response to two recent, heavily-trafficked posts (one, two) on hypothetical retrenchment under Ron Paul. (So yes, that makes 4 total posts, including this one.) I got some flak on how I ranked US allies in order of importance, with the implication that those further down were more likely candidates for a diminished American commitment. So rather than responding point-by-point, here are some broad responses on specific countries.

My original ranking, in order, was: Canada, Mexico, Saudi Arabia, Taiwan, India, Indonesia, Israel, South Korea, Japan, EU/NATO, and Egypt. (That’s actually 11, not a ‘top 10,’ because I originally put Canada and Mexico in together at # 1.)

1. I was surprised how much controversy my choice for Canada at # 1 provoked. I thought that was pretty self-evident actually. (Stephen Walt, in a riff on my post, says pretty much the same thing.) Just because Canada is quiet and boring (in a good way) doesn’t mean it is not existentially important for the US. (This same logic, boring ≠ unimportant, applies to my choice for Indonesia. The very fact the Indonesia is a moderate Muslim state is why no one cares about it, but that is a good thing! I guarantee you that if Indonesia had nasty salafists running around like in the ME, we’d all be talking about it.) The US trades the most in the world with Canada. We expect Canada to come with us on just about all our foreign ventures. Its cooperation provides crucial symbolic value: if the country most like us in the world can’t agree with us, then we must be doing something wrong. And most obviously, its security is a direct concern, because of the border. In fact, given that the border is something like 3x the length of the US-Mexico border, Canada easily beats every other state in the world for the most basic US national security concerns.

2. Japan (#9): A good commenter noted that after WWII, the US wanted to make Japan into the ‘Switzerland of Asia,’ and that we are reaping what we sow. Absolutely. I do think Americans send mixed signals to allies. We don’t want them taking an independent line, we want them to do what we say, but then we complain that they free-ride. As I argued in the OP, all this US commitment ‘infantilizes’ US allies by not forcing them to deal with their own regional issues. But Americans, or rather the neocon-liberal internationalist elite synthesis that dominates US foreign policy discourse, ultimately accept weak, dependent allies, because we are in love with our own hegemony. It fires our imagination to compare ourselves to Athens, Rome, or Britain. Neocons read Pericles’ Funeral Oration or Gibbon, and they tear up that America too is the noble, tragic ‘weary titan,’ carrying the great orb of its world-historical task of spreading democracy. Americans thrill to that kind of ‘national greatness’ pseudo-metaphysics while Europeans roll their eyes in disillusionment and Asians wonder wth we are even talking about. So yes, free-riding is pretty obvious to see, because we abet it.

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Korea 1997 & the Greece mess today


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Here is a good article on Korea and other near-defaulters or defaulters, and what lessons they might have Greece now. Greece can in fact recover if it leaves the euro, and increasingly, I think both it will and it should. However, one important element Greece should not pass up, is using the crisis to force discipline on the parts of the economy that caused the currency run to begin with. The Korean government was partially able to discipline the out-of-control chaebol who had caused the crisis by wildly over-borrowing on Wall Street in the mid-90s. Koreans hate to hear it, but their political economy got substantially cleaner and less corrupt because of the 1997 brush with default. Greece should do the same; it should not leave the euro just so it can go back to its bad old ways. That would be a catastrophe and turn Greece into a prototypical Middle Eastern patronage state.

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China’s Counter to the Asian ‘Pivot’ (2): ‘Swarms’ in the Pacific


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Part one is here, where I noted China’s growing fear of encirclement (I get Chinese students a lot who talk about this). So, in the role of China, I argued for an Indian charm offensive to prevent encirclement, and how China might buy off Korea from the US camp by abandoning North Korea. Here are some more ‘B-Team’ style ideas for pushing back on US local dominance, including swarming the US navy in the western Pacific with cheap drones and missiles:

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