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Asean

Why the Iran deal could work for North Korea

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Author: Chung-In Moon, Yonsei University

On the brink of a crisis that threatened to escalate into conflict, North and South Korea recently reached an agreement on 25 August to prevent further confrontation, resume official talks, hold reunions of separated families and promote civilian exchanges. This was a remarkable reversal in tensions. But the thaw is only the beginning of a precarious and long journey toward peace and stability on the Korean peninsula. As long as Pyongyang keeps its nuclear weapons program, it is virtually inconceivable that confidence-building and peaceful co-existence between the two Koreas can be achieved.

Since March 2009, the North Korean nuclear issue has been stalled and the Six-Party Talks suspended. While North Korea has declared ‘no more talks with the US’, Washington is equally reluctant to engage with Pyongyang unless the hermit regime takes some concrete steps toward denuclearisation. Stuck between the two, China, South Korea and other the other Six-Party Talks members have become lethargic. Are there any ways out?

The recent Iranian nuclear deal could serve as a useful benchmark. As President Barack Obama claims, it was a victory of diplomacy over war. Several factors account for its success. Setting realistic goals was one of those factors. Against the conservative’s all-or-nothing approach of insisting on ‘no deal without a complete removal of nuclear programs’, the US admitted Iran’s right to the peaceful use of nuclear energy, while banning its enrichment programs under a tight inspection regime.

Equally crucial was setting the right priorities. Iran has been notorious for its sponsorship of terrorist groups such as Hezbollah, interference in the domestic politics of neighbouring countries, undermining regional stability and human rights violations. But the nuclear issue was prioritised, with the anticipation that other issues would become easier to solve once the nuclear one was settled. The US also aptly limited sanctions, which was useful in bringing Iran to the negotiation table and making the current deal. Additional sanctions would have created a serious political backlash, which could have penalised moderates such as Iranian President Hassan Rouhani while empowering such hardliners as radical Islamic forces and the military.

Iran and North Korea are, of course, very different. Iran does not have nuclear weapons, while North Korea does. The permanent members of UN Security Council have all reached a consensus on the Iranian deal, but members of the Six-Party Talks have been divided over how to deal with the DPRK. Iran has taken a practical path to denuclearisation for economic gains, whereas North Korea is seeking the perilous nuclear path despite enormous economic costs incurred by sanctions. No matter how limited it may be, Iran has a pluralistic political system with regular competitive elections. North Korea, on the other hand, is an extremely monolithic political system without any free elections.

For all the differences, the Iranian model can still be applied to North Korea. Sanctions, pressure and military action are not viable alternatives. The US should forsake its ‘strategic patience’ policy and engage. Demonising North Korea will lead the US nowhere. As with Iran, the US should set more practical goals. Complete, verifiable and irreversible dismantling of its nuclear weapons will take a long time. As Siegfried Hecker — a renowned US nuclear expert — has suggested, it would be wiser to seek a ‘halt and roll back’ option. Freezing current nuclear programs and rolling back to the level specified by the agreement reached on 13 February 2007 — whereby North Korea agreed to shut down and seal its major nuclear research facility, Yongbyon, and invite international monitoring — might be the most practical solution.

No matter how powerful the US is, it cannot achieve complete denuclearisation, opening and reform, human rights improvements and cyber security in North Korea simultaneously. There must be a reordering of priorities where utmost attention is given to the nuclear issue. The Iranian nuclear deal would have never materialised without personal commitments by top US Department of State officials like John Kerry, William Burns, Wendy Sherman and President Obama himself. In a similar vein, high powered figures need to be appointed solely to deal with Pyongyang.

It is not easy for Obama to change his position on North Korea, particularly given his political schedule. Outside pressure seems necessary. Such pressure can come from South Korean President Park Geun-hye, who will be visiting Washington in October 2015. Using recent improved inter-Korean relations as leverage, Park can persuade Obama to engage with the North and to resume the Six-Party Talks. Such an approach is the only realistic one that can bring North Korea back to the negotiating table and foster the process of its denuclearisation.

It is ironic to note that learning from its failures in dealing with North Korea was vital to the United States’ success in dealing with Iran. Now it is time for the Obama administration to apply what it has learned from Iran to North Korea.

Chung-in Moon is a professor at the Department of Political Science, Yonsei University.

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Why the Iran deal could work for North Korea

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

Access to the Singapore Exchange (SGX) adds to Tiger Brokers’ current menu of stock exchanges, such as the New York Stock Exchange (NYSE) and the Nasdaq Stock Market (NASDAQ), the world’s two largest stock exchanges, as well as the Hong Kong Stock Exchange (HKEX).

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SINGAPORE (ACN Newswire) – Tiger Trade, a one-stop mobile and online trading application by Tiger Brokers, has launched access to the Singapore Exchange (SGX).

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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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