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Asean

Refusing to see the obvious in Afghanistan

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Author: Frederic Grare, Carnegie Endowment

On 4 February, Afghan president Hamid Karzai and Pakistani president Asif Ali Zardari met near London at the invitation of British prime minister David Cameron.

The summit was also attended by the two nations’ foreign ministers, top military leaders and intelligence chiefs, and seems to have been successful in a number of areas. The two heads of state vowed to work toward a peace deal for Afghanistan within six months, reaffirmed their aim to conclude a strategic partnership, backed the opening of an Afghan office in Doha to conduct direct negotiations with the Taliban and reaffirmed their hopes of signing an agreement to strengthen ties on economic and security issues later this year.

The sudden abundance of apparent goodwill in the Afghan–Pakistani relationship stems from the fear that dramatic instability — and even civil war — could result when foreign troops leave Afghanistan in 2014. Chaos would devastate Afghanistan of course, but it would damage Pakistan too.

Yet behind this apparent convergence of interests lie deeper contradictions that will colour any Afghan–Pakistani settlement. Pakistan supported the Afghan Taliban for almost two decades, but now fears that Afghanistan may become a sanctuary for terrorist groups that target the Pakistani state. Islamabad already suspects Kabul of supporting, at least passively, anti-Pakistan groups as a way to compensate for its conventional military inferiority vis-à-vis Pakistan.

This fear of terrorism seems to have temporarily superseded traditional Pakistani anxieties about issues such as India’s influence in Afghanistan or the resurgence of Pashtun irredentist claims. But these issues will continue to worry Pakistan. It is particularly concerned about Pashtun separatism, which finds expression in traditional secular forms but is also articulated around Islamist principles. The Taliban on both sides of the Afghan–Pakistani border is supportive of Pashtun tribesmen, and the so-called Durand Line — the putative border between Pakistan and Afghanistan — remains unrecognised by Afghanistan.

Kabul has insecurities of its own, too. In the short term, any peace deal will have to involve the Afghan Taliban, which refuses to negotiate with an Afghan government that it views as a puppet of the United States. The Pakistani government has not yet demonstrated its capacity or willingness to bring the Taliban to the bargaining table.

This, in turn, feeds President Karzai’s suspicions that Pakistan is deliberately preventing the Taliban from entering into negotiations with his government. The recent release of Afghan Taliban prisoners by Pakistan, supposedly to facilitate the dialogue between the group and the government in Kabul, has done little to assuage these fears. Some of the released prisoners are even suspected to be back in battle in Afghanistan.

These mutual suspicions do not augur well for a strategic partnership. By definition, such a partnership should be based on a convergence of strategic interests, but even the most charitable view of the Afghan–Pakistani relationship sees only very limited shared goals. The two countries’ shared economic interests have so far proven insufficient to allow them to overcome their deep-seated mistrust of one another.

It is a mistake to believe — as many in Washington and London seem to — that a peace agreement in Afghanistan will be the product of a bilateral settlement between the Afghan and Pakistani governments. The consolidation of the Afghan state and the strengthening of its sovereignty should come first. No sustainable improvement of relations between Afghanistan and Pakistan is likely without a stronger Afghan state. With the Afghan presidential election on the horizon in 2014, the objective of any third party, mediator or facilitator should be the creation of a provisional unity government that represents all of the country’s major stakeholders.

Reconciliation within Afghanistan will create new opportunities for Afghan–Pakistani partnerships. A stronger Afghan state is the best guarantee against any predominant foreign influence in the country, and would deprive regional actors of the ability to use Afghanistan as a battlefield in a proxy war. It would also enable some Afghan–Pakistani cooperation in security matters, without which any economic cooperation will inevitably remain limited.

Time is running short, and the London summit probably reflects nothing more than a Western desire to find an honourable way out of Afghanistan. Not much can be expected from a process that tries to broker a peace deal between an isolated lame-duck government in Kabul and an absentee insurgent group supported by a third party with a history of sabotaging all attempts at reconciliation.

Any lasting settlement will have to include regional actors like Pakistan. But the more urgent task is for Afghans themselves to undertake a meaningful dialogue before the election. Such a dialogue would give a sense of the actual strength of each of the country’s political actors, foster coalition building and most importantly help identify minimum common political platforms. As modest as this seems, it would constitute a first and crucial step toward real stability in Afghanistan.

Frederic Grare is senior associate and director of the South Asia Program at the Carnegie Endowment for International Peace.

  1. Afghanistan: what way forward?
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  3. Afghanistan: Unready for US exit

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Refusing to see the obvious in Afghanistan

Asean

ASEAN weathering the COVID-19 typhoon

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Vietnam's Prime Minister Nguyen Xuan Phuc addresses a special video conference with leaders of the Association of Southeast Asian Nations (ASEAN), on the coronavirus disease (COVID-19), in Hanoi 14 April, 2020 (Photo:Reuters/Manan Vatsyayana).

Author: Sandra Seno-Alday, Sydney University

The roughly 20 typhoons that hit Southeast Asia each year pale in comparison to the impact on the region of COVID-19 — a storm of a very different sort striking not just Southeast Asia but the world.

 

Just how badly is the COVID-19 typhoon thrashing the region? And what might the post-crisis recovery and reconstruction look like? To answer these questions, it is necessary to investigate the strengths and vulnerabilities of Southeast Asia’s pre-COVID-19 economic infrastructure.

Understanding the structure of the region’s economic house requires going back to 1967, when Southeast Asian countries decided to pledge friendship to one another under the ASEAN framework. While other integrated regions such as NAFTA and the European Union have aggressively broken down trade barriers and significantly boosted intra-regional trade, ASEAN regional economic integration has chugged along slower.

Southeast Asian countries have not viewed trade between each other as a top priority. The trade agreements in the region have been forged around suggestions for ASEAN countries to lower tariffs on intra-regional trade to within a certain range and across limited industries. This has lowered but not eliminated barriers to intra-regional trade. Consequently, a relatively significant share of Southeast Asian trade is with countries outside the region. This active extra-regional engagement has resulted in ASEAN countries’ successful integration into global value chain networks.

A historically outward-facing region, in 2010 around 75 per cent of Southeast Asian commodity imports and exports came from countries outside of ASEAN. This share of extra-regional trade nudged closer to 80 per cent in 2018. This indicates that ASEAN’s global value chain network embeddedness has deepened over time.

Around 40 per cent of ASEAN’s extra-regional trade is with the rest of Asia. From 2010 to 2018 Southeast Asian countries forged major trade relationships with four Asian countries: China, Japan, South Korea and India. Outside Asia, the United States is the region’s major trading partner. ASEAN’s trade focus on Asia’s largest markets is not surprising. Countries tend to establish trade relationships with large, geographically close, and culturally similar markets.

Fostering deep relationships with a few large markets, however, is a double-edged sword. While it has allowed ASEAN to benefit from integration in global value chains, it has also resulted in increased vulnerability to the shocks affecting its network connections.

ASEAN’s participation in global value chains has allowed it to transition from a net regional importer in 1990 to a net regional exporter in 2018. But the region’s deep embeddedness in a small and tightly-coupled network cluster of extra-regional global value chain partners has exposed it to disruption to any and all of its external partners. By contrast, ASEAN’s intra-regional trade network structure is much more loosely-coupled: a consequence of persistent intra-regional trade barriers and thus lower intra-regional trade intensity.

In the pre-COVID-19 period, ASEAN built for itself an economic house held up by just five extra-regional markets, while doing less to expand and diversify its intra-regional trade network. The data shows that ASEAN trade became increasingly concentrated in these few external markets between 2010 and 2018.

This dependence on a handful of markets does not bode well for risk and crisis management. All of the region’s major trading partners have been significantly affected by COVID-19 and this in turn is blowing the ASEAN economic house down.

What are the ways forward? The immediate task at hand is to get a better picture of the region’s position in global value chain networks and to get on top of managing its network risk exposure. Already there are red flags around the region’s food security arising from its position in food value chains. It is critical to look for ways to introduce flexibility into existing supply chains for greater agility in responding to crises.

It is also an opportune time for ASEAN to harness the technology transfer gains of global value chain participation and invest in innovation-driven diversification of products and markets. The region’s embeddedness in global value chain networks certainly places it in a strong position to readily access large export markets not just in Asia but also Europe and the Americas.

Over the longer term, ASEAN is faced with the question of whether it should seriously look…

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Tiger Trade Launches SGX Trading, Meeting Demand from Asian Investors

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Asean

Can Asia maintain growth with an ever ageing population ?

To boost productivity in the future, Asian governments will have to implement well-targeted structural reforms today.

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Asia has been the world champion of economic growth for decades, and this year will be no exception. According to the latest International Monetary Fund Regional Economic Outlook(REO), the Asia-Pacific region’s GDP is projected to increase by 5.5% in 2017 and 5.4% in 2018. (more…)

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