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Will China and USA further escalate tension in South China Sea?

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South China Sea (SCS) is emerging a hotbed of tension between China, the economic and military power of Asia and its sea neighbors of the Asia Pacific region. Following military activity by China which claims its authority over the zone, tensions between China and its northern maritime neighbours continue to dominate developments in the SCS but further unresolved disputes add to the dangerous atmosphere because no side is ready to back down and seek genuine reconciliation, while US super power opposes Beijing and supports its neighbors.

China has issues with ASEAN as Philippines, Japan and Vietnam are been wooed by USA to fight China as part of President Obama’s Asia Pivot agenda. US military role in the region in support of China’s neighbors further complicates the tension. July 12, 2016, marked a turning point in the long-standing disputes over the South China Sea. After more than three years of proceedings at the Permanent Court of Arbitration, an international body in The Hague, a tribunal constituted under the UN Convention on the Law of the Sea (UNCLOS) issued a widely anticipated decision in a case the Philippines brought in 2013 to challenge China’s maritime claims to most of the contested waterway.

The members of the Association of Southeast Asian Nations (ASEAN)—have become increasingly wary of Beijing in recent years and have clearly supported resolving the region’s disputes through the mechanisms of international law. Were China to make aggressive new moves, it would deepen their sense of alienation, encouraging them to strengthen their militaries to further balance against Beijing. The Philippines’ new president, Rodrigo Duterte, has signaled that he is interested in pursuing a more conciliatory approach to Beijing and has held out the possibility of resuming negotiations with China over resource sharing in the South China Sea. If Chinese President Xi Jinping accepts Duterte’s offer, he might be able to reach a deal with Manila that allows China to continue to claim some rights to resources in the far corners of the South China Sea.

As expected by many, the tribunal ruled in Manila’s favor and China rejected the tribunal’s decision, since Beijing, a signatory to the convention, has long opposed the proceedings and had warned that it would not abide by the judgment. China believes Washington has played its role in getting the judgment against China’s position over the SCS. USA and its local partners can avoid a dangerous escalation, and encourage China to abide by the ruling. China responds with increased belligerence.

China insists that it has sovereignty over the Spratly Islands, and the tribunal did not rule on their rightful ownership. But by declaring all of the Spratlys’ features to be reefs or rocks, it significantly limited the claims China can make to the surrounding water and airspace. Under international law, China’s outposts in the Spratly Islands should be considered isolated enclaves floating in a part of the ocean that is in the Philippines’ exclusive economic zone, since they lie within 200 nautical miles of that country’s territory. And Beijing cannot use the Spratlys to justify any claims to the surrounding waters.

The tribunal ruled in favor of the Philippines on almost every count, declaring nearly all of China’s maritime claims in the region invalid under international law, bringing a substantial amount of new clarity to a number of contentious legal issues and has set precedents that will affect the law of the sea for years to come. The tribunal held that all the territories in the contested Spratly Islands are reefs or rocks, not islands. That distinction matters, because under UNCLOS, reefs cannot generate a claim to the surrounding waters or airspace, and rocks can serve as the basis for only a small maritime claim of 12 nautical miles. Islands, on the other hand, generate a 200-nautical-mile exclusive economic zone; states can also assert additional rights based on the extent of the continental shelves that underlie them.

The tribunal found that China had conducted illegal activities inside the Philippines’ exclusive economic zone and thus completely invalidated China’s claim that it holds historic rights to the South China Sea through its “nine-dash line,” a sweeping cartographic projection that encompasses as much as 90 percent of the waterway. Chinese vessels, the tribunal ruled, had fished where they shouldn’t have, and had prevented others from fishing and extracting petroleum within the zone. The tribunal also censured China’s construction of artificial islands in the region, which it determined had caused severe environmental damage and heightened geopolitical tensions.

The tribunal’s ruling that the Spratlys do not constitute islands under UNCLOS complicated Chinese position and closed off another opportunity for Beijing to save face and destroyed China’s ability to justify its expansive claims to the South China Sea in legal terms. As speculated, China has rejected the legitimacy of the Philippines’ case and the tribunal’s jurisdiction to hear it since Manila first brought its complaint in January 2013. Beijing has decried the tribunal’s decision as illegitimate, and it will certainly not abandon its outposts in the Spratlys or return the sand it used to manufacture them to the seabed. In fact, in the wake of the ruling, China landed civilian aircraft on some of those outposts, presumably to demonstrate that possession is nine-tenths of the law.

Since the tribunal rejected China’s claims to historic rights in the waterway entirely, Beijing now must either continue to reject the tribunal’s ruling wholesale or offer the Chinese public a fresh explanation of why its rights still stand—a tough approach, since Chinese leaders have long stuck to exactly the narrative that the tribunal rejected. The line was first unveiled by the Republic of China in 1947 and was adopted by China’s Communist rulers after they took power in 1949. Chinese officials have never explained the nine-dash line’s precise legal meaning, but they have repeatedly claimed that it demarcates an area from which China can extract resources.

China can be stubborn. Beijing knows for sure, as being veto members USA would not think of a war with China. It could also apply new domestic laws to the areas it controls. However, China’s actions would be deeply worrisome for neighbors and would demonstrate that Beijing is uninterested in playing by the rules of the international order. China’s withdrawal from the UNCLOS convention would suggest not only that Beijing intends to ignore the tribunal’s ruling but also that it does not want to be bound by the many other maritime rights and provisions that UNCLOS enshrines and that govern the free use of the global commons. USA is not a party to the convention to observe its provisions.

Although the tribunal dealt a blow to China’s maritime claims—its rights to water and airspace and its authority to conduct certain activities there—it did not rule on China’s claims to sovereignty over territory in the South China Sea, which are beyond the scope of UNCLOS. For that reason, Beijing can rightly argue that its sovereignty over the contested reefs and rocks it occupies has not been affected. It cannot legally continue to declare military zones in the water or airspace around the reefs it occupies, nor can it do so more than 12 nautical miles from the rocks it controls. But if Beijing emphasizes sovereignty claims instead of maritime ones, it could draw criticism from the West.

China might now choose to flout the decision more explicitly by deepening its de facto control of the area, declaring an air defense identification zone in the South China Sea, as it did in the East China Sea in 2013, unsettling many of its neighbors in Southeast Asia. Chinese forces could attempt to intercept a US ship or plane as it conducts a freedom-of-navigation operation, raising tensions between Beijing and Washington.

China has issues with Japan. There is a continual stream of events that all sides use to test the others’ resolution, with a dangerous possibility of the tension turning violent at any moment. The Chinese organised a large fishing fleet to visit islands which the Japanese claim and call the Senkaku. Japan lambasted the Chinese for sending the fishing fleet, and pointed out that they were supported by Chinese government ships. The joint presence of commercial and official Chinese vessels on such a large scale is something new. China is aggravating the situation. China appears to be asserting its right to protect its interests by mobilising fishing vessels during the summer fishing season, escorted by official vessels. Also in a recent development in a gas field in the East China Sea near the midway line between China and Japan, China installed naval vessel surveillance radar on its exploration platform. This, too, is an arbitrary move that cannot be overlooked. Beijing is steadily aiming for de facto control as fait accompli. The same tactic has been employed in the South China Sea.

Chinese sources blamed Japanese intransigence for much of the tension that has arisen with China in recent years over islands in the East China Sea. For years, Japan has refused to acknowledge it has any territorial dispute with China, which has basically shut the door to finding a peaceful solution to their sovereignty dispute over the Diaoyu Islands (Senkaku Islands in Japan) through diplomacy and dialogue.” “Japan has tried to blame China for the deteriorating situation in the region, accusing it of unilaterally seeking changes to the ‘status quo’. But it was Japan that did that by ‘nationalizing’ some of the islands in 2012, betraying the acquiescence reached by leaders of the two countries in the 1970s and subsequently maintained that the dispute should be shelved.”

A recent cyber attack in July by Chinese sources on computer system of Vietnam Airline has been condemned by Vietnamese leadership. The computer system was hacked. In addition, for a day, the screens displaying flight information at Hanoi’s and Ho Chi Minh City’s international airports were taken over and displayed derogatory messages about Vietnam and the Philippines regarding their dispute with China over South China Sea.

Although the South China Sea disputes have deep historical roots, they have flared up in recent years because China’s growing military capabilities have meaningfully improved Beijing’s ability to press its claims. If China goes further by deliberately flouting the ruling or withdrawing from UNCLOS, it could destroy the maritime order it has already damaged.

Satisfying as the tribunal’s decision may be for Manila, all parties now have a strong stake in ensuring that the situation doesn’t escalate. The judgment sets a significant legal precedent: the principles that guided the tribunal’s decision are now part of international law, and countries must embrace and reinforce them if they want others to uphold them in the future. The USA and like-minded countries around the world should continue to declare their support for the legal process, calling on China and the Philippines to abide by it without taking a position on the underlying sovereignty disputes. USA should make clear that it will investigate the implications of the decision for its own island claims.

If China does not begin construction at Scarborough Shoal, there will be ample room for cooperation between China and its neighbors and between Beijing and Washington. The wider world is looking on with some concern and it is putting a lot of the blame on China. The New York Times said that the waterway is too strategically important and the disputes too complex for the competing claims by China and five other countries Yet, provocations continue, raising questions about “China’s commitment to the rule of law and heightening fears of a wider conflict”.

Observation

World needs and seeks peace even as many top military nation is trying to disturb peace and tranquility by all possible means. US led western military forces are after energy resources and energy routes of Arab nations and Afghanistan; China and USA are complicating SCS normalcy; Israel is bent upon destroying peace and prosperity of Arab nations, especially Palestine, killing them by fake pretexts and denying them sovereignty. Palestinians keep dying just like Kashmiris because the colonialist India and Israel keep killing Muslims as their major policy.

Advanced terror techniques are being employed by fascist, imperialist and colonist nations against weak nations. They have converted may Muslim nations into enslaved peoples without freedom.

USA should be committed to acting responsibly. US officials should work closely with their Chinese counterparts, encouraging them to negotiate with the South China Sea’s other claimants, particularly the Philippines, and to make progress on a binding code of conduct with ASEAN, a long-sought multilateral agreement that would create a strict set of guidelines for behavior in the South China Sea. A code of conduct would likely also freeze the waterway’s political and territorial status quo, helping China reassure its neighbors that its long-term intentions are not threatening.

USA and China should also press ahead with the confidence-building measures they agreed to at June’s US-China Strategic and Economic Dialogue, to reduce the risk of an accidental clash between them. That would help each demonstrate to the other and to the region that neither wants to see a great-power conflict over the South China Sea.

Whether or not China move forward to secure cooperation with its neighbors is difficult to forecast right away; similarly, will USA let the region return to normalcy also remains to be seen.

Of course, resolving the current showdown in SCS peacefully and legally would be in everyone’s interests.

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Southeast Asia

Reducing gender gaps in Asia and Pacific essential to realizing region’s potential

Ingrid van Wees

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Over the past two decades, the Asia and Pacific region has made progress in reducing gender gaps in certain areas, most notably education. According to the World Economic Forum’s 2018 Global Gender Gap Report, 6 out of 25 developing Asian countries had attained gender parity in education. In 12 out of 18 Asia Pacific countries analysed in the Report, women outnumber men in tertiary education enrolment rates. 

However, these improvements in skills and professional training for women have not translated yet into progress towards equal economic and professional clout. 

Gender gaps persist in labour force participation, gendered-segregation of the labour market, financial inclusion, and representation in senior managerial positions across the corporate world. This is the only region in the world where the labour force participation rate of women is declining. Meanwhile, a growing body of research on the future of work in the region has highlighted the high concentration of women in informal and vulnerable work, and that the bulk of unpaid care work is disproportionally being carried out by women.  

Female participation in the labour force in 2018 ranged from 60.1% in East Asia at the top end of the spectrum to only 25.9% at the bottom end in South Asia, according to the International Labour Organization (ILO). When women do work, they are often segregated into “feminized” sectors, where wages are typically lower. Wages are not yet equal. In developing Asia, the gender wage gap (75%) is lower than the global average of 79%
    
Women’s share in managerial positions across Asia varies significantly. In the corporate sphere, three countries in this region are among the top 10 economies worldwide with women in senior management positions, higher than the global average of 25%. They are the Philippines at 39%, Thailand at 37%, and Indonesia at 36%. On the other hand, there are countries in the region at the lower end, for example Japan with only 7%.  

Women’s representation on corporate boards is even lower than at the managerial level.  This ranged from 11.6% in Indonesia to 1.9% in South Korea. In 2011, India and Malaysia established 30% mandatory gender diversity quotas for senior management and board positions in corporations. However, implementation has been slow. As of 2016, women accounted only for 8.6% on corporate boards in Malaysia and 5.2% in India.  

Banking at the most senior management level in particular remains male territory in the region, since the share of female representation at this level reached only 6.9% on average, according to data gathered by the Financial Times.

While developing countries in Asia and Pacific are embracing new financial technology to make rapid progress on financial inclusion, the gender gap is felt here too. Women accounted for just 35% of bank depositors and borrowers in these countries in 2016. 

Increasing women’s participation in the workforce and closing the wage gap would have a tremendous growth impact for the region. ILO in 2017 estimated that this could add $3.2 trillion to Asia and Pacific region economies.

Increasing women’s access to finance can have life-changing impacts on not only their lives, but those of their families and communities. For example, women-led small and medium-sized enterprises in Sri Lanka are benefitting from facilitated access to credit to grow their businesses through an ADB project, which has been further supplemented by a grant from the Women Entrepreneurs’ Finance Initiative (We-Fi). Since last year, over 323 women’s businesses,  employing 3,934 people, have financially benefitted from the project. 

Financial institutions targeting female clients will be more successful at understanding and responding to customers’ needs if their personnel mirrors the market. Including female professionals and managers in research product selection and marketing will lead to better custom-tailored products.  That is one reason why ADB’s Trade Finance Program has been running a gender initiative to support its participating banks to improve its workplace gender equality/family-friendly policies.

There is growing evidence that gender equality in management and leadership results in higher productivity, more diverse decision-making, and better and more sustainable results. This is particularly true for female leaders in the banking sector. A study by the International Monetary Fund recently found that a higher share of female senior leaders is associated with greater stability and more prudent management. 

Moreover, it is true for any type of organization that effective women leaders provide positive role models and contribute to changing social perceptions about women and girls.  Policymakers and multilateral development banks like my own must lead by setting good examples, and work with the banking sector to address the gender gaps. 

On its part, ADB is committed to accelerating progress in gender equality in its developing member countries. And it is championing the cause within its own institutional structure and corporate culture.

Among other sectors, ADB supports various projects with a gender focus in such areas as technical and vocational education and training, urban and water, rural development, transport, and renewable energy. It has also provided technical assistance for legal and judicial reforms in support of gender equality, as well as women’s leadership within government and communities at all levels.

Last year, 56% of ADB’s sovereign and nonsovereign lending at entry had strong gender design elements. ADB is setting even higher standards for itself. In July 2018, ADB’s Board of Directors approved a long-term corporate strategy called the Strategy 2030. Under this, ADB aims to ensure 75% of its projects in the public and private sector will include gender designs by 2030. 

Strategy 2030 sets gender equality and women’s empowerment as one of its operational priorities for the next decade. ADB will promote women’s economic empowerment by expanding entrepreneurship opportunities for women and promoting their access to quality jobs in higher-paying sectors and the science, technology, engineering, and mathematics sectors where women struggle to enter. 

ADB’s approach is also informed by a recognition of the importance of tackling discriminatory social norms and institutions. It includes  supporting legal, institutional, and governance reforms at public level to explore measures are carried out to remove gender-based discrimination, enhance women’s participation in public resource allocation, and support leadership at all levels

Another major thrust is reducing the domestic responsibilities faced by women through improved water, electricity, and transport infrastructure. In the Asia Pacific, women spend from 2 to 11 times more time on unpaid care work (caring for family members, cooking, cleaning, fetching water, etc.) than men. That time spent represents an important barrier to pursuing economic pathways.

In 2016, ADB Management took bolder actions and set higher targets to improve workplace gender balance by enhancing recruitment of talented women, career management, training, development, and retention of female staff within ADB. ADB also has a gender target for various levels of management that is closely monitored and transparently reported upon. Leadership development programmes are now being conducted to prepare women for senior positions and enable senior staff to become better managers of diverse teams. 

Gender equality will indeed be at the heart of ADB’s priorities under Strategy 2030 and across the institution. 

On a wider scale, women’s empowerment is not just an objective in itself; it is essential to achieving inclusive and sustainable development in Asia and the Pacific. Given the economic, environmental, and technology challenges facing society in Asia and Pacific, it is about time to utilise the ingenuity, creativity, and energy of the region’s entire population. To do this, countries must fully engage women; and educate and empower them to allow for their contribution. At the same time, we should ensure we include, educate, and equip all men and boys for this transition to make this journey together and leave no one behind.

ADB

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How Countries in Southeast Asia are Working Together to Accelerate Human Capital Development

MD Staff

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In their decades-long efforts to spur strong economic growth and significantly reduce poverty, countries in the Association of Southeast Asian Nations (ASEAN) also successfully improved education and health outcomes for their people. Today, however, ASEAN’s average indicators on education, skills development, and health are below what is expected of its current income levels. These persistent gaps can undermine future growth and prosperity in the region.

To thrive in the global economy, where new technologies will create industries that have yet to be imagined, and where the changing nature of work prizes higher-order skills, ASEAN countries will have to go back to basics – and invest in its children.    

The challenge is significant. Almost a third of children in the region have stunted growth due to chronic malnutrition, making them highly prone to life-long cognitive and physical limitations. These can lead to poor school performance and diminished career prospects overall. And though schooling rates are high across ASEAN, limited education quality generates large learning gaps – 21 in 100 children have low reading comprehension skills at the end of primary school. Some 15% of 15-year-olds living today will not reach the age of 60 mainly due to noncommunicable diseases such as diabetes, cancer, and cardiovascular and respiratory illnesses. Both issues are partly a result of unequal access to basic services, including healthcare and education, which in turn contributes to widening income inequalities.

ASEAN countries, while linked geographically and economically, have varying levels of life expectancy, job productivity, and education quality. At the core of these challenges is the need among all countries to accelerate human capital development. This month in Bangkok, Thailand, leaders from the region came together to discuss how to take this further.

“Disparity, poverty, education and health, remain a challenge in ASEAN. We have to make Human Capital Development an integral part of our development,” ASEAN Secretary-General Lim Jock Hoi told the ASEAN High-Level Meeting on Human Development on September 9, 2019.

Organized by Thailand’s National Economic and Social Development Council (NESDC) and Ministry of Foreign Affairs, the World Bank and UNICEF, the high-level meeting was designed to facilitate dialogue among member states to share successful policy frameworks and emerging challenges, as well as help identify new approaches to human capital development and move towards a set of common, yet adaptable, policy directions.

ASEAN has their work cut out for them. The World Bank’s Human Capital Index projects that upon adulthood, children born in ASEAN today will be just 59% as productive as they could have been. To change this, political commitment to shift public investments to the right places is critical. 

Thailand, for example, reduced the rates of child stunting from 25 to 11% over the last 30 years through targeted, community-based nutrition programs in areas with high levels of poverty. The successful approach brought together health, agriculture, education, water and sanitation by close community-level coordination to address malnutrition.

Anutin Charnvirakul, Deputy Prime Minister and Minister of Public Health, shared how Thailand kickstarted its Universal Health Coverage (UHC) scheme in 2002 even though it was still regrouping from the 1997 Asian Financial Crisis. The UHC scheme entitled every Thai citizen to essential health services, and coverage reached 100% in 2018.

“UHC is about national commitment. We don’t have to wait until we are rich to get UHC. We just have to commit,” Anutin said.

Other countries in the region have also performed well in various areas. Vietnam stands out with its high-quality basic education system due to its commitment to education reform and substantial public spending, while Singapore initiated successful schemes to retrain and employ older workers.

Experts presented delegates with data that illustrated how globally, investments in health and education, especially for young children, generates high returns on productivity. It gives the future workforce the necessary cognitive and social skills to navigate a knowledge-based economy. The meeting ended with recommendations for accelerating human capital development in ASEAN. These include fighting malnutrition with nutritious foods and quality healthcare, orienting the entire education system around improved learning for the young and lifelong learning for adults, and achieving UHC to provide everyone with quality health services and financial protection from health-related shocks to their income.

But as Laurence Chandy, UNICEF’s Director of Global Insight and Policy Office, reminded participants, to realize these goals, countries will have to make “fiscal commitments and more importantly set clear policies for implementation that are specific to each country.”

World Bank

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Limits to the Asia-Pacific Growth

Meseto Abe

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Following the massive  socio-economic success of the largest continent, corruption is the next battleground in the development of the Asia-Pacific. Lately, it has hampered inclusive and sustainable development and is a primary cause of the difficulty experienced by developing Asian-Pacific countries in advancing beyond the middle-income bracket.

Fostered by weak regulation and enforcement frameworks, corruption comes in many forms, including bribery, embezzlement, and cronyism. It undermines not only business ethics and positive social norms, but also people’s trust in political and economic systems, institutions, and leaders.

Transparency International’s Corruption Perceptions Index (CPI), which measures corruption in 180 countries annually, reveals that high-income countries experience far less corruption than their lower-income counterparts do. With Singapore in sixth place and Afghanistan in 177th, the Asia-Pacific is home to countries at both extremes of the CPI. China and India, the world’s most populous countries, are ranked 77th and 81st, respectively.

Countries in the Asia-Pacific have made some efforts to combat corruption, but that the problem remains widespread throughout the region tells us that these are not enough. In fact, there seems to be a willful lack of attention among these countries about tackling corruption head-on.

Corruption affects every aspect of society

This lack of attention may be due to the widespread belief that corruption helps “grease the wheels” in business activities. Top companies pay large amounts to receive faster and better service from authorities; this, the thinking goes, makes the economy more efficient. In the Asia-Pacific, this often manifests itself as bribes, gifts, banquets, and favors given by business entities to politicians and bureaucrats. In the view of its proponents and those who tolerate it, corruption speeds up the wheels of commerce and positively impacts companies’ development by easing bureaucratic barriers. Corruption can also facilitate a company’s entry into a highly regulated economy that is difficult to penetrate otherwise.

But these benefits hold true only for a small number of companies. Corruption has an inverse U-shaped relationship with company revenue: a company may gain benefits when it pays bribes, but the benefits are subject to diminishing returns after a certain amount. Also, corruption has a significant negative correlation with companies’ overall satisfaction with their business environment. These two points seem to indicate that rather than “greasing the wheels,” corruption actually “sands the wheels.”

In fact, corruption has adverse effects on overall economic development. It reduces investment, lowers growth rates, and negatively impacts efficiency. At the company level, corruption absorbs returns from business activities and distorts entrepreneurial spirit and behavior. Companies that are involved in corruption report rises in operational costs of 10 percent on average, in addition to greater uncertainty. These factors ultimately have an impact on their strategic and investment decisions. This could explain why some studies have shown that foreign direct investment in countries that are perceived as corrupt is almost 5 percent lower than it is in countries that are relatively corruption-free.

Corruption also negatively impacts political and societal landscapes. As money that is meant for the public is funnelled away, the cost of providing and maintaining public goods and services increases. Vital goods and services like roads and telecommunications networks eventually fall into disrepair or are not delivered at all due to a lack of funds.

Corruption also undermines the rule of law and the government’s ability to combat externalities such as pollution and security risks. In addition, it hinders development by diverting resources away from productive sectors and reducing human capital and tax revenues. Corruption has been shown to decrease national productivity and diminish the effectiveness of foreign aid. On a macro level, these and other effects of corruption can strip a country of gains from trade in the absence of good institutions. Corruption also makes it more difficult for the poor and other disadvantaged groups, such as women and minorities, to obtain public services, thus deepening inequality.

How can countries reduce corruption?

Governments should introduce anti-corruption laws, which typically require government officials to declare their assets, and enforce strict penalties for corrupt practices. For example, in the wake of recent high-profile revelations of bribery and embezzlement at major state-controlled enterprises, Singapore’s anti-corruption watchdog plans to strengthen anti-graft laws with more severe financial penalties.

The introduction and strengthening of anti-corruption laws can have a massive impact. In 2005, India passed the Right to Information Act, which aimed to make administrative procedures transparent. The law reduced corrupt practices significantly and has since been hailed as a pivotal achievement in the country’s fight against corruption. The rule of law and administrative actions must be constant to be effective in reducing corruption.

Governments can also implement a number of reforms in their legal systems and administrative processes. Such reforms could include measures that provide oversight of the financial sector, public procurement, customs procedures, construction licenses, land registration, and corporate establishment and dissolution. These require adequate institutional capacity and financial support to be successful. Kazakhstan, for instance, has recently strengthened its anti-money-laundering regime: it is now largely compliant with international standards. However, the government still lacks the resources and expertise to properly enforce the regulations. To successfully tackle corruption, strong, transparent, and accountable institutions that deal with taxation, budgeting, and spending must also be established.

Indeed, an effective fight against corruption requires the building of robust democratic institutions, particularly those that champion trade openness, fair competition, and press freedom. Institutional structures are also important, as more decentralized states have lower levels of corruption. As can be expected, social norms and culture are important determinants of corruption levels, but they can be hard to measure. In general, strengthening governance is a good way to reduce corruption, because inefficient bureaucracies make it easier for corrupt practices to be carried out.

Beyond national governments, the United Nations and its various agencies must raise awareness of corruption in the Asia-Pacific. Addressing and combating the issue will pave the way for countries in the region to work towards the UN Sustainable Development Goals.

While Transparency International plays a leading role in exposing corruption worldwide, the World Bank has drawn up, and continuously updates, anti-corruption policies for governments. The International Monetary Fund also recently unveiled its new framework for addressing corruption. Developing countries in the Asia-Pacific must embed the principles of both the United Nations Convention Against Corruption and the OECD Bribery Convention in their governance frameworks. Engagement with international organizations can facilitate the development of an effective national anti-corruption strategy.

For this purpose, “a committed political leadership and broad political support are necessary” – says the independent expert in the field, Luigi Coretti of Canada. It well captures a consensus on the matter in the community of specialists. Coretti concludes:  “Engagement with local stakeholders, such as civil society organizations, the media, and academic institutions, helps build a sense of national ownership and ensure the acceptability and effectiveness of coordinated and comprehensive actions.” Both governments and companies are encouraged to report to these stakeholders their anti-corruption activities and outcomes achieved. They should also use all available communications channels, such as websites and flyers, to provide more insight into their assessment mechanisms and corrective actions.

Finally, it is to hope that more comprehensive research will be conducted to help identify ways to eradicate corruption and other business obstacles in the Asia-Pacific. One crucial issue in this arena is that many previous studies on corruption have been conducted jointly with local authorities, so their results are questionable. With the participation of the authorities in such research, surveyed firms and people are likely to be hesitant to offer their candid opinions on the level of corruption among officials. Before any anti-corruption strategies can be determined for a given country, we must have the full picture of the problem of corruption.

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