Burma and the Evolving Security Environment of the Asia-Pacific In different ways, the ‘Saffron Revolution’ last September and Cyclone Nargis in May this year, highlight the key question about Burma (or Myanmar) currently facing the international community — how to encourage political, economic and social reforms in a country ruled by an introverted and nationalistic government that puts its own survival before the welfare of its people and observance of accepted norms of behaviour. Sule Pagoda in Central Rangoon To date, the answer seems to have eluded all those who have sought to influence Burma’s military leaders. Yet, critical though these issues are, Burma’s contemporary importance goes well beyond such domestic concerns to include a number of broader strategic questions. Burma is now a critical factor in the evolving security environment of the Asia-Pacific region. China and India are openly competing for Burma’s favour, as a way of strengthening their strategic interests in the north east Indian Ocean. ... continued on page 4 PAGE 2 GRIFFITH ASIA INSTITUTE NEWSLETTER Editorial Despite all of the challenges of 2008, China has managed to hold – and dominate – a highly successful Olympics. That China so badly wanted to host the Games, to use them to present a positive image of itself to the world, and to emphatically top the medal count, speaks volumes to the complex nature of power in the emerging order in Asia. On the other side of the Asian continent, another complex power struggle has played itself out in the Caucasus. The Russian intervention into Georgia to reverse the Georgian interventions into Abkhazia and South Ossetia; and NATO’s subsequent response, all portend the dawning of a new era of sphere-of-influence competition around Russia’s peripheries. These events emphasise the possibilities and challenges that lie ahead for the Griffith Asia Institute’s research program. Our scholars continue their research on a broad range of themes, from transnational threats such as pandemic disease and extremist ideologies, to legal reform in China, energy politics, countercorruption and legislative oversight. Griffith Asia Institute newsletter Griffith University Nathan campus Brisbane Qld 4111 Australia www.griffith.edu.au/business/griffith-asia-institute/ If you would like your Asia‑Pacific related activities to be featured in this newsletter, please contact the publisher: Mrs Meegan Thorley, Manager Telephone: 61 7 3735 7624 Facsimile: 61 7 3735 3731 Email: m.thorley@griffith.edu.au or Professor Michael Wesley, Director Telephone 61 7 3735 5143 Facsimile: 61 7 3735 3731 Email: m.wesley@griffith.edu.au Our seminars and workshops have continued to explore allied themes; such as journalist Peter Roebuck’s “Perspectives: Asia” seminar on India’s growing power over world cricket. And we look ahead with expectation to the first of our China-Australia Dialogues in Beijing in November, which will bring together Chinese, Australian and regional delegates to discuss the common challenges our societies will face in 10-20 years. Professor Michael Wesley, Director, Griffith Asia Institute Research Grants Australia’s Nuclear Choices is the title of the successful linkage grant received by GAI researchers Professor Michael Wesley and Dr Michael Clarke in collaboration with partners the Lowy Institute, Department of Defence, Flinders University and the Australian National University. Australia’s nuclear choices will be made in the context of a challenging and fluid international strategic environment characterised in Australia’s immediate region by heightened global concerns regarding such transnational dilemmas as terrorism, energy security and nuclear proliferation. This project, through exploring the nature, evolution and consequences of contemporary strategic, military and civil nuclear developments impacting on the international non-proliferation regime will enable Australian policymakers to better calibrate the costs and benefits of potential policy changes across these strategic, regime and market realms of Australia’s nuclear interests. In This Issue • Events • Conferences • research • visitors • diary dates • publications Winter 2008 Indonesian University celebrates Anniversary of HAMKA On April 8, 2008, the Muhammadiyah University HAMKA in Jakarta, Indonesia, celebrated the 100th anniversary of the birth of one of the pioneers of Islamic modernism in Indonesia, Haji Abdul Malik Karim Amrullah. Associate Professor Julia Howell was one of three well-known scholars invited to address a seminar held by that university to celebrate the anniversary. The keynote speaker was Dr Anwar Ibrahim, former Deputy Prime Minister of Malaysia and a leading political figure today in a coalition of opposition groups. Other members of the panel of scholars were Dr Ahmad Syafii Maarif, former General Chairman of the Muhammadiyah (Indonesia’s leading Muslim modernist organisation) and founder of the Maarif Institute for Culture and Humanity, and Professor Azyumardi Azra, former Rector of the State Islamic University Syarif Hidayatullah, Jakarta, and, like Syafii Maarif, a leading public intellectual. Haji Abdul Malik Karim Amrullah, widely known by the acronym for his name, ‘Hamka’, was famed for his scholarship in Qur’anic exegesis, for which he was awarded an honorary doctorate and professorial appointments. He was also known as an innovator in contemporary, popular Islamic education and proselytising, writing not only motivational magazine and newspaper articles, but some of the first contemporary-style Islamic spiritual self-improvement books and even novels with Islamic themes. Julia was invited to speak on Hamka’s impact on the contemporary Islamic spirituality movement, sometimes identified as ‘neo-Sufism’, and on his role as a pioneer of modern Islamic communications on television and the other popular mass media. The seminar, held in the Hotel Atlet Century Park’s convention hall, was attended by an audience of several hundred guests, including other academics, leading members of the Muhammadiyah movement, the Minister of Education, and surviving members of Hamka’s family. New journal focuses on Indonesian Islam While in Indonesia in April, Julia was also invited to the State Islamic Institute Sunan Ampel in Surabaya to help launch their newly founded international journal, the Journal of Indonesian Islam. As a platform for the launch, the Institute held a seminar on 11 April entitled “The Changing Role of Sufism in Contemporary Indonesian Piety” at which Julia gave the feature address, “Active Piety in Contemporary ‘Sufistik’ Televangelism”. A member of GAI’s Islam and Politics Research Group, Akh Muzzaki of the University of Queensland (on leave from Sunan Ampel), organized the seminar and launch. GAI member Associate Professor Julia Howell (centre) at the seminar and launch of the journal of Indonesian Islam PAGE 3 GAI’s Islam and Politics research group regularly brings together academic staff and postgraduate students from Griffith University and the University of Queensland for discussion of their research and to develop collegial relations. Perspectives: Asia Kylie Kwong Asian Cuisine and Australian Society was the topic for May presenter Kylie Kwong. Kylie took time out of her busy schedule as author, chef, restaurateur and television presenter, to share with the audience her experiences growing up as a Chinese-Australian. Kylie shared her childhood memories of her mother’s cooking, including Aussie dinner night, market shopping and basting the roast chicken with soy sauce. It was from these experiences that Kylie developed her love of food and cooking. Kylie went on to discuss her ancestry and how this influenced her evolution into author, restaurateur and television presenter. During this, Kylie also discussed her management and working philosophy and love of organic foods. Mr Jalil Abbas Jilani His Excellency, Mr Jalil Abbas Jilani, High Commissioner for Pakistan, provided an insightful look into Pakistan’s regional security concerns at the June Perspectives: Asia Seminar. Focusing on Pakistan’s relations with its neighbours, Iran, Afghanistan and India, Mr Jilani gave a picture of Pakistan’s challenges and opportunities in the region. In relation to Pakistan-India relations, Mr Jilani acknowledged the history of tension between the two countries but noted how, since 2003, this situation has changed. According to the High Commissioner, this change was necessary on a number of levels, including the developing nuclear capabilities of each country and the economic realisation that poverty in both countries was high and neither could afford continued conflict. Mr Jilani noted that relations had improved over time and bilateral trade relations between the two countries were now quite good. In reflecting on Afghanistan, the High Commissioner explained that this area was suffering greatly from instability and conflict which has been increasing since the Soviet invasion. A nexus was now developing between Taliban, Al-Qaeda, the warlords and drug barons which, combined with a lack of governance, were increasing the instability in the region. Mr Jilani commented that greater intervention was needed for the situation to improve. He noted that Pakistan now has a strong economic relationship with Iran and noted Iran’s nuclear position. The High Commissioner stated that Pakistan supported Iran’s pursuit of civilian nuclear technology and that both India and Pakistan were looking towards Iran for future energy requirements. GRIFFITH ASIA INSTITUTE PAGE 4 GRIFFITH ASIA INSTITUTE NEWSLETTER Burma and the Evolving Security Environment of the Asia-Pacific ... from page 1 China wishes to protect its southern flank from possible future Indian threats and needs access to the sea to export goods from land-locked southern China. India fears encirclement by Chinese client states, in which category it includes Burma and Pakistan. Both major powers need Burma’s natural gas, to fuel their rapidly expanding economies. This strategic competition worries members of ASEAN, who are concerned that an apparently weak and vulnerable state like Burma will fall into Beijing’s orbit and become a Chinese stalking horse in the region. Other Asia-Pacific countries, like Japan and South Korea, are concerned about the impact this competition will have on their sea lines of communication to the Middle East, on which they depend for oil. Meanwhile, Russia is keen to consolidate its foothold in the region, and secure energy contracts with Burma, which it is wooing through the sale of arms and a nuclear reactor. Above: GAI Research Fellow Andrew Selth The US is a major player in this complex strategic equation. Concerned about China’s rise to political and economic superpower status, it is attempting to develop closer relations with India, while keeping faith with imprisoned Burmese opposition leader Aung San Suu Kyi. The US is also worried that, shunned by most Western countries, Burma will turn to fellow pariah states like North Korea, and seek to acquire strategic weapons like submarines, ballistic missiles and possibly even a nuclear device. Over the past 20 years, Burma has skilfully exploited its sensitive geo-strategic position, and the fears held about its close relationship with China, to win favourable deals from India and some of the key ASEAN countries, notably Singapore and Thailand. Yet Burma’s military government still feels threatened by the US and other Western countries. It has adopted a range of security policies, including approaches towards sensitive transnational issues, that have added to regional and even global concerns. All these issues are currently being examined by GAI Research Fellow Dr Andrew Selth, as part of a three year project funded by the Australian Research Council. Andrew hopes to explode several myths which have arisen, due largely to the dearth of hard information Above: GAI Research Fellow about Burma’s security policies and the highly Stephen McCarthy politicised atmosphere currently surrounding the international community’s radically different approaches towards the military government. Andrew has produced GAI Regional Outlook papers examining claims that Burma is host to several Chinese military bases, and that Burma plans to acquire a nuclear weapon. Other issues being investigated include the widely held belief that Burma is a Chinese puppet, and that it possesses chemical and biological weapons. Burma’s leaders also seem to fear military intervention by the US. There is no hard evidence for any of these propositions but, to a greater or lesser extent, they have influenced the strategic perceptions and security policies of regional countries, with long term policy implications for Australia. Andrew co-delivered a GAI Research Seminar on “Burma’s Saffron Revolution” with Dr Stephen McCarthy in April. While Andrew’s work focused on the international attention surrounding the demonstrations, Stephen investigated the implication of the Revolution for domestic political legitimacy in predominantly Buddhist Burma. Articles based upon their research will appear in the September edition of the Australian Journal of International Affairs. Stephen is also revising his research on Burma’s difficult relationship with ASEAN in light of the recent events as well as the signing of the new ASEAN Charter. Village in the Irrawaddy Delta one month before cyclone Nargis Winter 2008 PAGE 5 Hun Sen Prevails in Cambodia’s General Elections Elections were held across Cambodia on 27 July for the 123-seat National Assembly. This was Cambodia’s fourth election since the United Nations Transitional Authority of Cambodia (UNTAC) imposed democracy in 1993, and the first since Prime Minister Hun Sen’s dominant Cambodian People’s Party (CPP) backed a constitutional amendment in 2006 reducing the minimum seats required to form a government from a two-thirds majority to only a simple majority, 50 percent plus one. Although the CPP was widely expected to achieve the target—aided by the implosion of the royalist Funcinpec party—it still faced a strong challenge to its urban vote from the popular Sam Rainsy Party (SRP). The CPP were quick to claim victory and eventually won 90 seats while the SRP, still reeling from some defections to the CPP, picked up an additional 2 seats to claim 26 seats in the National Assembly. Despite EU observers claiming that the general election fell short of international standards, they believed the results could not be invalidated since the CPP’s victory was large enough to discount large-scale fraud (the CPP received over 58% of the popular vote). Numerous grievances were cited, however, including the CPP’s dominance of the media and the National Election Committee, the consistent and widespread use of state resources for its campaigning, and the disenfranchisement of large numbers of voters who had travelled to the polling stations to discover that their names had been removed from the electoral rolls. Opposition parties complained of these irregularities as well as the last minute relocation of polling stations and the appearance of illegitimate voters, including Vietnamese immigrants. Supporters during a CPP procession before election day The 2008 general election was also overshadowed by the reappearance of a long-standing border dispute with Cambodia’s neighbour, Thailand, centering on ownership of the Preah Vihear temple. UNESCO had listed the temple as a world heritage site on 7 July, using maps and details supplied by Cambodia. This elicited a sharp response from Thai royalists critical of their government’s policy as well as Thai army border units who moved in to occupy the site. Hun Sen responded by sending Cambodian forces to defend their territory and up to 4,000 soldiers remained in close contact in the week leading up to the election. The CPP leadership’s skilful handling of the situation tapped into Khmer nationalist sentiment and this was most probably reflected on polling day. Hun Sen’s CPP is now Cambodia’s dominant party and can rule the country in its own right, without being hindered by problematic coalitions and troublesome minor-party politics. And like other ‘electoral democracies’ in the region that share this privileged status, its tenure may depend as much on its performance as its ability to contain dissent. Griffith Asia Institute research fellow Dr Stephen McCarthy travelled to Cambodia to observe the elections as well as numerous political rallies, including those of the Funcinpec, the Sam Rainsy Party, and the CPP parties in Siem Reap and Phnom Penh. Sam Rainsy speaking at a rally Counting in the election begins Diary dates Refer to the Griffith Asia Institute website at www.griffith.edu.au/business/griffith-asia-institute/ for updates on these and other events: Research Seminars Research Seminars Perspectives: Asia public seminars 16 October 2008 23 October 2008 27 November 2008 Dr Ashok Sharma Bjoern Dressel Rowan Callick Indo-US Strategic Partnership: Beyond the Nuclear Deal Thailand’s Constitutional Struggles – China Correspondent, ‘The Australian’. ‘China: The Next Chapter’ GRIFFITH ASIA INSTITUTE PAGE 6 GRIFFITH ASIA INSTITUTE NEWSLETTER Publications Deductive Irrationality International Business in Korea S. McCarthy and D. Kehl (eds), Deductive Irrationality: A commonsense Critique of Economic Rationalism, Lanham Maryland: Lexington Books, Rowman and Littlefield, 2008. O.Y. Kwon, International Business in Korea: The evolution of the market in the globalisation era, London, Edward Elgar, 2008. This book is a collection of essays that peel back the protective covering of modern political economy, revealing the inner logic of economic rationality: a logic of economism with its own set of arbitrary and unsustainable policy preferences. The essays analyse not only the work of founders of the discipline of economics, but also political philosophers influential in this founding and select contributors of seminal theories in modern economic thought. Consequently, the book has implications for those interested in modern policies that are based on economic theory and that fail to produce lasting economic and political stability. For the Asia-Pacific region, these include many of the economic liberalisation reforms, ‘state-building’ proposals, and governance reforms that have been proposed by Western governments and international financial institutions in recent years. Considering the consequences J.C. Sharman and P.S. Mistry, Considering the Consequences: The development implications of initiatives on taxation, anti-money laundering and combating the financing of terrorism, London: Commonwealth Secretariat, 2008 What have been the consequences of recent regulatory initiatives on offshore financial centres in small countries? This study of Barbados, Mauritius and Vanuatu suggests that the costs of implementing these new standards have exceeded any identifiable benefits for the countries concerned. The main factor explaining the adoption of these new standards in all three countries is fear of the consequences of being blacklisted by international organisations in the event of non-compliance, rather than any identified benefit in terms of increased competitiveness. The authors consider how policy on anti-money laundering should be developed in the future, taking into account the particular concerns of small developing countries. O. Yul Kwon is a Professor of International Business and Asian Studies O Yul Kwon recently launched a new book, International Business in Korea: an Evolution of the Market in the Globalisation Era. Published in April the book will be distributed to prestigious organisations in the Western world including universities, world organisations and research centres after being selected by the Korea Foundation as one of its promotional books for Korean studies. He has also had one of his early publications translated into Japanese earlier this year and all this in between training for the Brisbane Marathon, where he placed second in his age group. O. Yul Kwon uses an institutional framework to provide a comprehensive evaluation of the environmental and operational dynamics of international business in South Korea from the rapid growth period 1963–1996, through recovery from the 1997 financial crisis, to the present. The study assesses that the South Korean market and business practices will maintain some sui generis characteristics because of the country’s idiosyncratic culture and singular form of institutional development in the recent past. The book contains comprehensive analysis of macro-level topics (such as business opportunities, cultural influence, country risk and market configuration) and micro-level topics (including business negotiation, business ethics, management of international joint ventures and the management system). This book delivers a wealth of valuable information for a scholarly audience including undergraduate and postgraduate students and academics in international business, as well as for firms considering market entry into South Korea. O. Yul Kwon holds the Korea Foundation Chair in Korean Studies and is Director of the Australian Centre for Korean Studies at Griffith University, Australia. He is a research member of GAI. Populism, Politics and Propaganda A. Selth, Populism, “Politics and Propaganda: Burma and the movies”, Southeast Asia Research Centre, Working Paper no. 100, Hong Kong: City University of Hong Kong, 2008, found at http://www.cityu.edu.hk/ searc/WP100_08_ASelth.pdf Winter 2008 Pakistan: Engagement of the Extremes A. Misra, Pakistan: Engagement of the extremes, India: Shipra Publications, 2008. Alongside a constant cycle of democracy and dictatorship, in the 60 years since its independence Pakistan has also seen the rise of military political Islam, with serious consequences for social and political stability. While the role of Islam in state-building and identity creation has not been fully delineated and defined since Pakistan’s creation in 1947, the military and civilian regimes have impressively exploited Islam’s mass appeal to garner public support and political legitimacy. As a result Islamists have steadily risen to become a third political force in Pakistan, culminating in the rise of Muttahida Majlis-e-Amal (MMA) to power in the North West Frontier Province (NWFP) in 2002 and winning over 60 seats in the National Assembly. It was unprecedented but not unexpected, as this book argues. The democratic opposition had accused General Pervez Musharraf of establishing this partnership during his presidential referendum in April 2002 in which the Military establishment had mobilised several extremist groups to campaign and organise meetings across Pakistan. As history would show such a partnership has thrived time and again accruing political dividends to both sides and at times even at the expense of country’s own security and political stability. Both General Yahya Khan and Zia-ul Haq engaged with the Islamists which in due course proved divisive and highly destabilising for Pakistan. General Musharraf struck this alliance with the Islamists to institutionalise himself, constitutionally consolidate his political authority and marginalise the Pakistan People’s Party and Pakistan Muslim League-Nawaz. This book traces the relationship between the Military and Islamists, and examines various measures and acts that resulted since it began in 2002. It explains the dynamics of Military-Islamists partnership under Pervez Musharraf and how it differed in substance and intent from that of General Zia ul Haq. It is a study of civil-military relations in Pakistan in which the Military and Islamists co-habit, compromise and operate on a mutually rewarding basis until one of the two breached this understanding. The author discusses not only instances of mutual trust but mistrust as well and shows the perils of Military-Islamist engagement for Pakistan’s own stability and security that General Musharraf had turned its back on in his blind pursuit for power. PAGE 7 T. Makin and P. Narayan, “Have US External Imbalances Been Determined at Home or Abroad?”, Economic Modelling, 25 (3), 520-531. Professor Tony Makin published the above article on the inter-relationship between capital flows between East Asia and the United States the world’s largest international debtor since the turn of this century. The article develops a new international flow of funds framework for examining the relationship between current account imbalances and world real interest rates. It shows that East Asian lending to the United States, including foreign currency reserves accumulated by the Chinese and other East Asian central banks, has had a statistically significant negative impact on global real long term interest rates since the time of the Asian financial crisis of the late 1990’s. Tony Makin’s research on “The Contribution of Foreign Borrowing to the New Zealand Economy” (co-authored with Grant Scobie and Wei Zhang) has been published as a New Zealand Treasury Working Paper, 08-03, July. This study examines New Zealand’s unrelenting current account deficits and foreign capital inflows, suggesting that international trade in saving between New Zealand and other Asia-Pacific economies has contributed more to New Zealand’s economic growth than its international trade in goods and services. As a case study of a small open Asia-Pacific economy, it argues that New Zealand’s trade and current account deficits are symptomatic of an economic growth process that has yielded significantly higher national income per head. Conference Presentations Professor Tony Makin represented Australia at a Pacific Economic Cooperation Conference (PECC) in Osaka, Japan, in March on the theme of “External Adjustment Under Increasing Integration in the Asia-Pacific. He presented a paper on “Financial Globalisation and External Adjustment: The Australian Experience” and acted as discussant on the Japan and US papers. Professor Makin also presented a paper entitled “The Renmimbi and Output-Expenditure Imbalances Between China and its Trading Partners” at the 20th Annual Conference of the Australian Chinese Economic Studies Association (ACESA) convened by James Cook University, Townsville, 10-11 July. Dr. Ashutosh Misra is Research Fellow, Griffith Asia Institute (GAI) and Associate Investigator, Centre of Excellence in Policing and Security (CEPS), Australia. He has written extensively on Pakistan in books, journals and newspapers and holds a PhD on Indo-Pak relations from the Jawaharlal Nehru University, New Delhi. GRIFFITH ASIA INSTITUTE PAGE 8 GRIFFITH ASIA INSTITUTE NEWSLETTER Visitors An Economic Outlook The Asia-Pacific Business Economics group of the Griffith Asia Institute hosted an Economic Update presentation by Professor Philip D Adams on “Australia’s Economic Outlook in the Asia-Pacific Context” at the university’s Ship Inn premises on 22 May. Professor Adams is Director of the Centre of Policy Studies at Monash University and the Australian coordinator for the Economic Outlook taskforce of the Pacific Economic Cooperation group. Communal Violence in India Communal Violence in India was the topic of visitor Professor Anjoo Sharan Upadhyaya’s seminar when she visited GAI in June this year. Anjoo Sharan Upadhyaya is a Professor of Political Science and Director, Centre for the Study of Nepal, Banaras Hindu University. Sino-Australian Joint Research Program GAI recently hosted a visit from Professor Wang Xinsheng from Sun Yatsen University to discuss a new joint research initiative. This initiative between Griffith University, Sun Yatsen University and the University of Southern Queensland includes an agenda for research, research training, scholarly exchange, and dialogue. Its intention is to network and interact with other universities, expert bodies, governmental organisations, relevant IGOs and NGOs, and private sector actors from both countries—and beyond. It intends to devote its focused research agenda, related activities, and outputs to a range of “leading-edge” issues that are of current and future concern to all parties. Briefly, the components of the joint program are: Annual Dialogue Forums (from mid-2009); • • • • • Multi-faceted distinguished visiting researchers scheme; Research studentship and training plan; Professional/specialist short courses; Publications program; Undergraduate student exchanges/study tours. Currently, the joint program’s focal research areas include: • • • Securing Sustainable Global Futures—Environmental, Energy, Resources, and Health Issues (1st Annual Dialogue Forum) Strategic Trade, Business Security and Law and Order Issues (2nd Annual Dialogue Forum) Global Population and Migration Issues—Identity, Cultural Sustainability, Jurisdiction, and Management/Governance (3rd Annual Dialogue Forum) Professor Wang Xinsheng, Sun Yatsen University (SYSU) and Professor Michael Wesley, GAI.