AIIB Update – The Ship Has Sailed

Daily Coin.jpg

                                           (Photo: Daily Coin)

March 31, 2015 was the closing day for countries to apply to be founding members of the Asian Infrastructure Investment Bank. The U.S. and Japan were not on board. Fifty-seven other nations including some staunch U.S. allies were on board. It was reported that the Chinese themselves were surprised by the interest in the project. There is a huge demand for capital for infrastructure in Asia, and the World Bank and Asian Development Bank have not kept up with this demand in terms of loans, so China stepped in to fill the gap, and now there is the AIIB. Work is underway to create the launch of the new bank this year and discussions on the charter and the hiring of competent specialists to fill the many posts available are ongoing. Japan and the U.S. are the only two major world powers who have not joined the AIIB as founding members. So, what will happen in the near future?  Will Japan look out for its own interests and join the bank, or will Japan stand by its American allay and refuse to join? What do you think? Please log in and give us your thoughts on this matter.

 

 

Kazakhstan at the Crossroads of the 21st Century

                            n1.si.jpgNursultan Nazarbayev, President of the Republic of Kazakhstan (Photo: RIA Novosty)

                            by David Parmer

If all goes well, the beginning of the 21st century will be remembered as the beginning of the rise of Kazakhstan to world power. Kazakhstan could easily become another Singapore; it has many of the same elements that worked in favor of making that country a world-class success including an extremely favorable location, political stability and a multi-ethnic society.

 And now, history seems to favor this Central Asian country. China has proposed a New Silk Road and has allocated funds for its promotion. New rail traffic will flow through Kazakhstan making it the crossroads of the resurgence of the region.

Moreover, where Singapore is blessed by its location, Kazakhstan, in addition to location, is blessed with petrochemical and mineral wealth.  The world’s ninth largest country is also blessed with abundant nature. It has rivers, mountains  and plains of breathtaking beauty that are an incredible asset for its tourism industry.  Kazakhstan will host Expo 2017 with the theme “Future Energy” and welcome visitors from around the world. As for political stability, Kazakhstan’s President, Nursultan Nazarbayev has just been re-elected for a fifth term, so politically one can expect “business as usual.”

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                         Almaty Oblast Kazakhstan (aboutkazakhstan.com)

 

The plus side of the equation looks pretty good, but what about the minus side? There are several issues that confront Kazakhstan in this century.

The  U. S. government lists some of them as:

  • National identity
  • Islamic revival
  • Expanding resources and exporting
  • Political and social reform

 Of these, perhaps the first two are the most salient. The country has a slightly higher percentage of Kazaks to Russians, the two main ethnic groups in the country.

The challenges for the 21st century are avoiding the dangers of Russian nationalism and separatism and Islamic extremism. Kazakhstan has only been independent since 1991, a very short time on the calendar of history. Can the people of Kazakhstan forge a national identity that supersedes ethnic and religious differences?

With a strong national identity, Kazakhstan can withstand the give and take of national politics and remain united, and at the same time enjoy its good fortune in terms of resources and geographical location. Kazakhstan is indeed at a crossroads, and time will tell which road it takes into this century and beyond.

astana.jpg                                    Astana, Kazakhstan by Night ( Photo: aboutkazakhstan.com)

 

 

Kim to Stay Home and Miss Russian WWII Celebration.

Kim_JOng-Un_2942995b.jpg                                                

                                     by David Parmer / Tokyo

The New York Times reported on April 30, that the DPRK Leader Kim Jong-un will not attend Russian celebrations to mark the victory over Nazi Germany on May 9. Mr. Kim hasn’t travelled abroad since taking power after his father’s death. The question is why will he sit this one out? One thing that comes to mind is that he fears internal disorder in his absence, or even a coup d’état. There could be a million different reasons for his not going to Moscow. What do you think might be a good one? Please log in and give us your thoughts on this latest mystery surrounding the man of mystery.

 

What is Mr. Xi Thinking? In Which Direction is China Heading?

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    Xi Jinping The Governance of China (Photo: english.cri.cn)

                           by David Parmer

The  unambiguous answer to the above questions can be found in Mr. Xi’s book, The Governance of China. Released in September 2014, the book’s 18 chapters contain speeches, interviews and correspondence by China’s president, who also holds the posts of General Secretary of the CCP and Chairman of the Central Military Commission.

 Since the 18th National Congress of the Communist Party of China, China has headed in a new direction in Reform and Opening Up. President Xi tells us what he is thinking and where he is going in light of these developments.

Topics covered by Mr. Xi include:

  • Socialism with Chinese Characteristics
  • The Chinese Dream
  • All-round and Deeper-level Reform
  • Economic Development
  • Rule of Law
  • Culturally Advanced China
  • Social Undertakings
  • Ecological Progress
  • National Defense
  • “One Country, Two Systems”
  • Peaceful Development
  • New Model of Major-Country Relations
  • Neighborhood Diplomacy
  • Cooperation with Developing Countries
  • Multilateral Relations
  • Close Ties with the People
  • Combat Corruption
  • The CPC Leadership

The immense value of Mr. Xi’s book is that he spells out the Chinese position in a succinct and easily-understandable manner. Pick a topic and you will find China’s position and Mr. Xi’s thinking stated clearly:

 On Taiwan:

 “…the most important and most fundamental thing to do is to maintain China’s sovereignty and territorial integrity. Although the mainland and Taiwan are yet to be reunited, they belong to one and the same China which is an indivisible whole.” (Handle Cross-Straits Relations in the Overall Interests of the Chinese Nation)

 On The Chinese Dream:

“In my opinion, achieving the rejuvenation of the Chinese nation has been the greatest dream of the Chinese people since the advent of modern times.” (Achieving Rejuvenation Is the Dream of the Chinese People)

On the Environment:

 “Our Party raised a requirement to build a beautiful China at its 18th National Congress. The whole of society should enhance its ecological awareness and strengthen environmental protection in accordance with this requirement so as to build China into a country with a good environment.” ( A Better Environment for a Beautiful China)

On the Military:

 Our officers and soldiers will maintain an indomitable revolutionary sprit and be dauntless in combat. We will make every effort to combat corruption and promote integrity in the armed forces. Senior officers must take a clear-cut stand against corruption and set an example in abiding by the code of honest conduct.” (Build up Our National Defense and Armed Forces)

 Those interested in understanding China in the 21st century will find The Governance of China a readable and easily-understandable roadmap. One may agree or disagree with the direction  in which China is heading, but one can not claim ignorance when it is all there in Xi Jinping’s book, The Governance of China.

Flying With LCC – Is it Safe?

LCC Scoot.jpg                                                    LCC Scoot (Wiki)

Recently there have been several airline crashes and incidents involving Low Cost Carriers, or LCCs. The question is: are LCCs less safe than traditional carriers? The answer seems to be mixed, or as they say in Japan: case by case. As RG21 reported in a previous post, LCCs are booming in Asia with airlines buying hundreds of aircraft as a time. In most countries LCCs are required to maintain the same safety standards as traditional carriers. Aviation writers also point out that LCCs cut down on customer comfort and frills, but match their big brothers for safety. So, this week’s question: Do you fly LCCs? And do you feel safe flying LCCs? Please log in and give us your thoughts.

 

10 Safest LCC:

http://www.businessinsider.com/10-safest-low-cost-airlines-in-the-world-2015-1

LCC Safety:

http://www.ibtimes.com/are-low-cost-airlines-less-safe-their-full-service-counterparts-1859548

China – Taiwan Relations: Iceberg Ahead!

201504100013t0001.jpg                                                       (Photo: Focus Taiwan News)

                                                        by David Parmer

It is 2015 and a woman is running for president. Not in the US, but in Taiwan.The Democratic Progressive Party’s (DPP) Chair, Tsai Ing-wen has declared herself a candidate for president in the coming 2016 elections. This will be her second run for president. She also ran in 2012, but was defeated by Taiwan’s current president, Ma Ying-jeou.

 Voters gave the DPP a resounding victory in local elections in autumn 2014, and Taiwan’s President Ma stepped down as KMT party president to take responsibility for the poor showing.

 It looks like the voters will again hand the KMT a defeat, this time in the 2016 general election for President, Vice-President and Legislative Yuan. Current KMT president and mayor of New Taipei City, Eric Chu, has said that he is not going to run in 2016. If the chances of winning are as slim as they look, maybe Mr. Chu does not want to damage his political reputation by being beaten in a lopsided presidential election. 

 If Tsai Ing-wen does become president, and the DPP gets the landslide victory that many anticipate, then cross strait relations with the People’s Republic will take a new direction. 

 The Wall Street Journal reported ( April 15, 2015) that Tsai has already said relations with the PRC will remain unchanged and the status quo will be respected.

 But. The DPP has made its position quite clear. In 2007 it called for a separate identity for Taiwan. What’s more, the party considers Taiwan independence a fact, and rejects the one-China principle. On its website, the DPP describes itself as favoring a “balanced international perspective” “Taiwan-centric identity” and “strong progressive values.”

 Tsai’s statement favoring the status quo regarding cross strait relations may not satisfy anyone. The DPP is the DPP and Taiwan uniting with the mainland does not seem to be part of their DNA.

Could this issue be the one chance that the KMT has to narrow the odds in the 2016 election, or even win the election? Many have benefited from the warmer relations between the PRC and Taiwan during the Ma years, in a sense they have a real vested interest in their own “status quo”, that is, improved economic and social relations with the mainland.

And. Then there is the coalition of students and independent  groups that made up the Sunflower Movement of 2014 that occupied the Legislative Yuan. Their complaint was with the KMT and its cross strait trade policy, but even if the DPP wins in 2016, will the younger generation be satisfied with “business as usual” or “business as usual 1.1 DPP style”?

 Finally. In the world of politics, where pragmatism often trumps principles, perhaps an “accommodation” could be reached between the PRC and DPP  favoring the status quo and business as usual.

Except. That there is a metaphorical iceberg in the Taiwan Strait, and that is Taiwan Independence. Sooner or later action must be taken to deal with the issue. And each party has a radically different solution to the problem.

 

 

Tokyo 2020 Olympics Update (#1)

Zaha-Hadid-New-National-Stadium-Tokyo.jpg                                          (Olympic Stadium Tokyo 2020 Z. Hadid Architects)

The 2020 Summer Olympic Games are on track and moving forward. Here are a few links to stories of interest about the games as of April, 2015.

 Shibuya Ward hopes to redevelop Miyashita Park in time for Olympics. Hurdles include resettling homeless, corporate sponsorship and zoning regulations.

http://www.japantimes.co.jp/community/2015/04/01/issues/battle-shibuya-park-heats-tokyo-olympics-loom/#.VS-jRFwdL8s

 Renowned golf course architect Tom Fazio to re-design Tokyo course for Olympics.

http://www.golf.com/tour-and-news/tom-fazio-chosen-redesign-tokyos-kasumigaseki-course-2020-olympics

Former PM Mori resigns from Japan Rugby Football Union post due to ill health, but will stay on with Tokyo Olympics organizing committee

http://www.japantimes.co.jp/sports/2015/04/06/more-sports/rugby/tokyo-2020-chief-mori-step-jrfu-president/#.VS-mV1wdL8s

BBC Reports on NHK Super-8K technology for 2020 games

http://www.bbc.com/news/technology-29789468

 Do you have any thoughts on the 220 Tokyo games? Log in a let us know what’s on your mind.

 

 

 

 

Asian Waters—The Legacy Min River Irrigation Project

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Sichuan’s Min River is the largest and longest of the Yangtze tributaries: it flows 735 km before it joins the mighty Yangtze at Yibin. (Photo: Wikimedia)

                                     by David Parmer

These days a whole series of dams are being built along the Min River to feed China’s incessant hunger for power, to prevent floods and to provide irrigation for agriculture. But long before these dams were even a dream, there was one engineering project that has stood the test of time and still serves the people of Sichuan, and that is the Dujiangyan Irrigation System.

 The Dujiangyan Irrigation System is the oldest no-dam irrigation system in the world. It was built during the Qin dynasty in 256BC by the  provincial governor and engineer whose name has come down to us through history: Li Bing. Governor Li saw the dangers of flooding and the need for irrigation and began to plan an ingenious three-part irrigation system to tame the waters and provide the needed flow for irrigation. The tunnel through Mt. Yulei to the Sichuan plain took eight years to complete. Li Bing’s engineering feat not only prevented floods but also greatly contributed to the long term prosperity of the region.

 In 2000, the Dujiangyan Irrigation System and adjacent Taoist sites on Mount Qingcheng were declared  UNESCO World Heritage sites. Dujiangyan and Mt. Qingcheng are about 60km northwest of Chegndu and accessible by train and bus.

 

 

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                              (Illustration: China Discovery)

UNESCO World Heritage Site

http://whc.unesco.org/en/list/1001

Iran Economy Resembles Pre-1987 China

512px-Iran_012.jpg                                                  Teheran Grand Bazar (Wikimedia)

Last week’s (April 2, 2015) framework deal between the P5+1 nations (U.S., U.K., France, Russia, China + Germany) and Iran paves the way for Iran’s re-emergence into the world economy. Should a long-term agreement be made early next summer there would be the gradual lifting of international sanctions, particularly in banking, which would potentially energize and enrich Iran’s listless economy.

But would an influx of capital and free exports create major economic growth and prosperity for the country?

 While Iran has a vibrant private sector, in many ways it can be compared to China in the late 1970s prior to Reform and Opening Up. To begin with the state is very much in the economy, and many industries have yet to be privatized. Secondly, much like China’s People’s Liberation Army, Iran’s Islamic Revolutionary Guard Corps has its hands in a number of industries across the economy. To further complicate things, there are the Bonyad, or charitable trusts, which likewise are in all types of businesses, and are repeatedly criticized as bloated and inefficient.

With such a quagmire of economic retardants in place, would even a total lifting of sanctions and the influx of capital create a new golden age for Iran’s economy?

 On the plus side, Iran has a lot going for it. Number one is a young population. Estimates suggest that up to two-thirds of the population is under 30. ( Currently unemployment is high, and these young people who could drive a vibrant economy are going abroad creating a “brain drain” within Iran.) Iran has huge oil and gas reserves as well as the world’s second largest store of copper. Iran also has a substantial auto making industry and has the largest mobile phone market in the Middle East.

 The potential for a re-invigorated Iran is an attractive proposition. Iran’s self-interest could be aligned with that of its regional neighbors and world partners.

Critics hold that the new Iran would not necessarily be politically different.

One of the problems in the West is the habit of seeing Iran as a monolith, just as “Red China” was seen as a monolith in the 1960s.  The Wall Street Journal points out in an April 3 article that those in Iran making the nuclear deal in Switzerland are different from those making regional politics.

 So for Iran, will prosperity come soon, and how will prosperity look? These are the big questions. Will prosperity empower Iran’s young population and create a new political climate? Will Iran take the China road? Or will this chance be lost?  For the sake of the people in Iran, the region and the world, we hope not.

 

http://www.wsj.com/articles/prospect-of-bolder-iran-unnerves-some-encourages-others-1428084595

70th Anniversary of WWII – How Should Japan Respond?

marco_polo_bridge_lugouqiao74590977df9a2cd03118.jpg          Marco Polo Bridge Outside Beijing Site of 7/71937 Incident 

This year marks the 70th anniversary of the end of WWII. China plans to hold a huge military parade to make the occasion, possibly in September. In a ceremony in Nanjing to mark the 77th anniversary of the invasion of the city in December 2014, China’s President Xi Jinping said: “We should not bear hatred against an entire nation just because a small minority of militarists launched agressive wars.” (Xinhua)

The big question is how Japan will respond to this anniversary.  On the 50th anniversary in 1995, Prime Minister Tomiichi Murayama expressed “deep remorse” over Japan’s wartime actions. The question is how will Prime Minister Abe handle this question? Is there any way he can address it that is correct and acknowledges the concerns of Japan’s neighbors even 70 years after the fact? Does Mr. Abe have the skill and wisdom to do the right thing? Please log in and post your thoughts here.

Japan Times Articles

http://www.japantimes.co.jp/tag/wwii-70th-anniversary/

Photo: Culture China. com