The South China Sea is in a crisis. The problems facing the sea are as vast, deep and seemingly intractable as the oceans themselves.
Rival countries have wrangled over a string of atolls, coral reefs, and islets in this contested region for centuries but now these competing claims are viewed as a serious challenge to peace and prosperity in the region. These disputes, which are associated with continuous coastal development, escalating reclamation, and increased maritime traffic, also draw attention to the destruction of coral reefs and the overall environmental degradation in the troubled waters.
Furthermore, they reveal how claimant nations—the People’s Republic of China (PRC), Vietnam, the Philippines, Malaysia, Brunei, and the Republic of China (ROC) on Taiwan—have a legal and ethical responsibility to ensure that none of their activities harm or create long-term damage to the fragile marine ecosystems.
In this sea of opportunities, uncertainties and threats, environmental degradation remains at the center of scientific conversation as an increasing number of marine scientists sound the alarm about how to address issues of acidification, biodiversity loss, climate change, destruction of coral reefs, and fishery collapses.
With environmental security shaping a new South China Sea narrative about the ecological challenges, this concept represents a crucial effort to link the impact of environmental change to both national and international security.
Paul Berkman, oceanographer and former head of the Arctic Ocean Geopolitics Program at the Scott Polar Research Institute, provided his own definition of environmental security. “It’s an integrated approach for assessing and responding to the risks as well as the opportunities generated by an environmental state-change.” 1
Through studying the sustainability of the biological seascape and navigating the development of science diplomacy to prevent geopolitical battles over the management of marine resources, marine biologists’ efforts to respond to the damage done to the “Global Commons” will require scientific forums and collaborative problem solving among all neighbors.
Last year, the unanimousdecision reached by The Hague’s five-judge tribunal,found that China’s large-scale reclamation and construction of artificial islands has caused severe harm to coral and violated the country’s obligation to preserve fragile marine environments. Furthermore, it denied them any legal basis to claim historic rights over a vast majority of the South China Sea. It was a striking victory for the Philippines, which filed the case. Among many dramatic findings, the tribunal declared China’s so-called “nine-dash line” invalid.
“The Tribunal has no doubt that China’s artificial island-building activities on the seven reefs in the Spratly Islands caused devastating and long-lasting damage to the marine environment,” stated the judgment. 2
In addition, the United Nations Convention on the Law of the Sea (UNCLOS) stipulates in two of the 17 Parts of UNCLOS a direct application to the merits of marine science research with an emphasis on encouraging bilateral and multilateral agreements to create favorable conditions for marine science study. 3
Professor John McManus, a marine biologist at the University of Miami and a notable coral reef specialist, who has regularly visited the region and provided analysis to the tribunal, has stated that based on satellite imagery the environmental damage done by the Chinese’s dredgers and clam poaching is most severe.
McManus has researched this region for over a quarter of a century. He knows that the most important resource in these heavily fished waters is the larvae of fish and invertebrates. As a result, he has called repeatedly for the development of an international peace park in this contested region.
“Territorial disputes have led to the establishment of environmentally destructive, socially and economically costly military outposts on many of the islands. Given the rapid proliferation of international peace parks around the world, it is time to take positive steps toward the establishment of a Spratly Islands Marine Peace Park,” claims McManus. 4
His peace park proposal includes management of the area’s natural resources and alleviation of regional tensions via a freeze on claims.
As early as 1992, McManus was one of several marine scientists who completed scientific articles advocating for an international peace park or marine protected area. Despite the geopolitical SCS intractability, the Spratly Islands appear to him as a “resource savings bank,” where fish, as trans-boundary residents, spawn in the coral reefs and encircle all of the South China Sea waters, before returning home.
Policy makers may do well to take a lesson or two from nature as they examine how best to address the complex and myriad of sovereignty claims.
Even the Association of Southeast Asian Nations (ASEAN) Working Group on Coastal and Marine Environment recognizes that the region faces enormous challenges to sustainability in coastal and shared ocean regions. Unless a scientific ecosystem approach is adopted, trans-boundary marine areas conflicts can and are getting worse.
Since ASEAN’s inception, it has been occupied with the task of identifying shared solutions to common security problems. To a large degree, one may say that security questions have been the driving force for continued regional integration in Southeast Asia. In the future questions of environmental security may play the same role.
According to Karin Dokken, a political scientist at the University of Oslo, “The states around the South China Sea are to a large degree interdependent when it comes to questions of the human environment. They are interdependent to the degree that if they fail to find common solutions to environmental problems they may end up in violent conflict against each other. In general, environmental interdependence is both a source of conflict and a potential for international integration.” 5
Without agreement on these environmental problems there’s a bleak future for the sea. Nearly 80 percent of the SCS’s coral reefs have been degraded and are under serious threat in places from sediment, overfishing, destructive fishing practices, pollution, and climate change.
Challenges around food security and renewable fish resources are fast becoming a hardscrabble reality for more than just fishermen. With dwindling fisheries in the region’s coastal areas, fishing state subsidies, overlapping EEZ claims, and mega-commercial fishing trawlers competing in a multi-billion-dollar industry, fish are now the backbone in this sea of troubles.
An ecological catastrophe is unfolding in the SCS’sonce fertile fishing grounds, as repeated reclamations destroy reefs, agricultural and industrial run-off poison coastal waters, and overfishing depletes fish stocks.
And in 2014, the Center for Biological Diversity warned that it could be a scary future indeed, with as many as 30 to 50 percent of all species possibly headed towards extinction by mid-century.” Fish catches have remained at an unsustainable 10-12 million tons per year for decades—a number that could double when Illegal, Unreported, and Unregulated (IUU) fishing practices is included.
A recent issue of The Economist underscores the importance for science diplomacy: “The littoral states ought to be working together to manage the sea, but the dispute over sovereignty fosters the fear that any collaboration will be taken as a concession.” 6
The lack of any effective international governanceremains at the epicenter of the SCS sustainability problems.As a result, the marriage of policy and science is essential to navigating these perilous geopolitical passages and to provide some science based solutions. Although not a new paradigm, more policy planners and marine scientists appear to be devoting their studies to establish the linkage that places the environment squarelyat center of national security.
After all, the United Nations Environmental Program (UNEP) confirms that the South China Sea accounts for as much as one tenth of global fish catches and by 2030, China will account for 38 percent of global fish consumption. Overfishing and widespread destruction of coral reefs now necessitates the intervention of science policy to safeguard stewardship of this vital area.
While other regions stabilized the size of their fishing fleets, Asia’s has doubled in size and makes up three quarters of the world’s powered fishing fleets.
Sent by their governments to find food for their people, fishers find themselves on the front lines of this new ecological battle. These fishing sentinels and their trawlers are fighting the maritime disputes between China and its neighbors.
This fishing competition for available fish has resulted in increased number of fishing vessel conflicts. These hostile sea encounters have been witnessed in Indonesia waters where 23 fishing boast from Vietnam and Malaysia were accused of poaching in that nation’s waters.As a result, Indonesia’s fisheries minister, Susi Pudijastuti, ordered the dynamiting of these boats and over 170 fishing vessels have been sunk in their waters over the past two years. The increasing number of fishing incidents reflects not only deeply different interpretations and application of the law of the sea, but a fundamental conflict of interest between coastal states and maritime powers.
Foreign Policy magazine asserts that these fishing incidents and direct acts of violence is significant “because it underscores how central fishing is to the simmering territorial disputes that are turning the South China Sea into a potential global flash point — and how far countries are willing to go to defend their turf, or at least what they claim is theirs.” 7
Within the disputed territory, there are over 1.9 billion people, seventy-five percent of them living within one hundred kilometers of the coast. Nearly eighty-five percent of the world’s fishers are concentrated in Asia, particularly in the South China Sea, according to the Food and Agriculture Organization of the United Nations.
Subsequently, fishing remains a politically sensitive and emotionally charged national security issue for all claimant nations. This ocean plundering presents the region witha looming food crisis. Any effort to balance the economic benefits with the security context within the South China Sea will require a coordinated, multi-level response from scientists, historically engaged in collaborative research and already addressing issues of sustained productivity and environmental security in the region.
The immense biodiversity that exists in the South China Sea cannot be ignored. The impact of continuous coastal development, escalating reclamation and increased maritime traffic is now regularly placed in front of an increasing number of marine scientists and policy strategists.
Marine biologists, who share a common language that cuts across political, economic and social differences, recognize that the structure of a coral reef is strewn with the detritus of perpetual conflict and represents one of nature’s cruelest battlefields, pitting species against species.
While traditional diplomatic and military tactics are not completely exhaustedin the latest round of diplomatic salvos between China and the U.S., perhaps the timing is excellent for the emergence of science as an optimal tool to bring together various claimants, including Brunei, China, Malaysia, the Philippines, Vietnam, and Taiwan in the highly nationalistic contested sea disputes.
For several decades, science has been adopted as a diplomatic tool for peace building by many countries, including the United States, and there are many organizations that strengthen global scientific relationships. Formed in1848, the American Association for the Advancement of Science is the largest scientific organization in the world and houses a Center for Science Diplomacy that effectively builds cooperation and collaboration. The Center’s journal, Science and Diplomacy, provides a forum for open policy discussion.
Also, representatives from the Soviet Union, the United States, and 10 other Eastern and Western bloc countries to use “scientific cooperation to build bridges across the Cold War divide, and to confront growing global problems on an international scale” established the International Institute for Applied Analysis (IIASA) in 1972. Since then, the institute has developed a mission with the help of 24 national member organizations to bring together a wide range of scientific skills to provide science-based insights into critical policy issues in international and national debates on global change.
Although nation states have different approaches toward science diplomacy, in general this type of diplomacy is defined by the American Association for the Advancement of Science (AAAS) as (i) science in diplomacy (science to inform foreign policy decisions); (ii) diplomacy for science (promotion of international scientific collaborations); and (iii) science for diplomacy (establishment of scientific cooperation to ease tensions between nations) (The Royal Society 2010). In that sense, it is widely accepted among environmental policy planners that science diplomacy positively contributes to the terms of conflict resolution.
As such, science diplomacy is not a completely new approach to international relations in general, and to South China Sea dispute management in particular. However, at this moment it seems that this type of diplomacy has raised two important questions in efforts to successfully settle the South China Sea dispute, namely: should we do it? And can it be successful?
What’s clear is that an insightful understanding of historical and scientific perspectives in the context of both Arctic and Antarctic environmental policies offers valuable lessons for possible adoption in the South China Sea. The Antarctic Treaty system involved seven claimant nations by 1943. Others signed a treaty in 1959 by 12 countries, including the seven claimants, and later to a total of 53 nations. Because of the leadership of scientists, they set Antarctica aside as a scientific preserve and recognized it as a multilateral, trans-boundary peace park in 1998.
The success of the treaty was predicated on three key elements: 1) a freeze on claims (no modifications or additions to existing claims are allowed. 2) a freeze on claim-supportive activities (nothing a claimant does during the time of the treaty can be later used in support of a claim), and 3) joint resource management.
To be clear, science diplomacy does help by directly and indirectly promoting confidence building among the parties involved in the South China Sea dispute. Science diplomacy, characterized by scientific cooperation activities, has contributed to solving many trans-boundary issues among nations sharing the same marine waters and in marine areas beyond national jurisdiction. Also, environmental monitoring successfully offers a context for countries to express their true perception of the region without being affected by other nationalistic, political, or economic factors like sovereignty or foreign policy direction.
As a result, it provides claimants and other parties involved in the South China Sea with an effective way to evaluate the political willingness of other partners and policy makers among the claimants, as well as a better understanding of the overall picture of what is happening in the South China Sea.
Consequently, claimants can be more confident in future cooperation on other issues. In other words, science diplomacy can establish a useful and convenient starting point for regional cooperation to deal with not only international environmental problems but also the achievement of a South China Sea settlement in particular and the region’s prosperity and peace in general. 7
The role of science diplomacy in solving illegal fishing in the South China Sea can be seen as an example. Fishermen act as sentinels in maritime territorial disputes where nations already employ naval forces to bolster sovereignty claims. In the contested waters, clashes between the claimant governments and foreign illegal fishermen continue. In that regard, the prospect of South China Sea claimants going to war over access to fishing waters is a real and immediate threat. 8
However, compared to other issues like the claims over sovereignty, science diplomacy’s approach to fishery collapse may be one of the most urgent but least sensitive problems, as it can be solved without provoking nationalism and other traditional concerns which are currently much higher than they need be in the region. Simply put, science diplomacy provides the parties involved in the South China Sea disputes with a rational and transparent way to avoid the worst while looking for the best.
The timing for a joint scientific declaration for urgent action on an environmental moratorium on dredging is much needed. Recent biological surveys in the region and even off Mainland China reveal that the losses of living coral reefs present a grim picture of decline, degradation, and destruction. More specifically, reef fish species in the contested region have declined precipitously to around 261 from 460 species.
After all, this environmental change is a global issue that holds no regard to sovereignty. The destruction and depletion of marine resources in the Spratly Islands harms all claimant nations. Perhaps, citizens from the region, who are directly impacted by the environmental attack on their sea and their fragile coral formations, can create something like a Coral Reef Action Network, similar to the Rainforest Action Network.
Protected marine reserves are an emerging tool for marine conservation and management. Sometimes called “ecological reserves” or “no take areas,” these marine protected areas are designated to enhance conservation of marine resources. 9
Vietnam, another claimant nation is wasting little time responding to the region’s environmental challenges and is fast-tracking its own model marine protected area program.
Cu Lao Cham is located about 20 kilometers off Vietnam’s central coast. The Cham Islands is a marine protected area (MPA) that was established by the Provincial People’s Committee of Quang Nam Province in December 2005. Professor Chu Manh Trinh, a 53-year-old Da Nang University biology professor, is largely responsible for mapping out the agreed upon objectives of protecting natural resources, and cultural and historical values of the Cham archipelago. In 2009, the area was designated a World Biosphere Reserve by UNESCO.10
“Yes, it took a sustained educational campaign to convince the population that conservation would provide long-term benefits to their way of life,” claims Trinh. 11
The senior marine science expert goes even further in reinforcing that the coral reefs in the Paracels and Spratlys need to be carefully protected for the whole East Sea region, that is not only for the life of fish but the life of people in the region and the world.
Vietnam has adopted marine protected areas to address present and future food security issues. These MPAs play an important role in the development of the marine economy; improve livelihoods of coastal fishing communities, and also serves to protect national sovereignty claims.
Scientific and policy cooperation required
This paper’s position is that it’s time to bring together the most qualified scientists who have experience studying the marine biodiversity and environmental sustainability in the troubled SCS waters to participate in a science policy forum.
While other types of diplomacy tend only to solve issues at the state level, like sovereignty or territorial integrity, science research cooperation in the South China Sea is aimed at a more “down-to-earth” approach, namely ensuring that fishermen can fish safely, marine products are unpolluted, and marine resources are protected correctly.
Their collaborative work may lead to the successful development of a South China Sea International Science Commission. As a result, their scientific efforts may then inspire the Association of Southeast Asian Nations (ASEAN) to cooperate in responding to regional resource management by issuing a call for a moratorium on any further damaging reclamation work.
Of course, China has many excellent coral reef scientists of its own, who recognize it is in the best interests of Beijing to protect coral reefs, maintain sustainable fisheries, and to eventually avail themselves of ecofriendly tourism once tensions decline.
Thus, it came as a surprise and somewhat of a mystery to scientists last year why China insisted that the portions of the coral reefs on which they have built consisted of dead corals.
Dr. Wu Shicun, president and senior research fellow of the National Institute for South China Sea Studies, claims that the Spratly Islands are territory of China, and that his country has adopted “green engineering” measures before, during, and after the completion of its entire reclamation in the South China Sea in order to protect the region’s ecology.
In an email, Wu claims that, “China carries out its construction projects on the inner reef flat where corals have basically died. China gathers loose soil for its land reclamation on the flat lagoon basin, which is not fit for coral growth. China has adopted “natural simulation,” applied a new type of “cutter-suction dredging and land reclamation method,” and has paid attention to the spread of sediment floating in its construction.”
There are many inconsistencies associated with China’s assertions about conservation. The most revealing includes Google satellite images that identified hundreds of these clam “cutter boats” operating on an unidentifiable reef located between Thitu Island and Tieshi Jiao referred to now as “Checkmark Reef”,where large areas of sand and dead coral were piled into arc-like ridges. In most of the area, there was not a single living organism—no visible sea urchins, sea cucumbers, worms, corals or other organisms present.
Revisited satellite imagery of the Spratly Islands, which is freely available on Google Earth, confirms that for each of China’s newly constructed islands, the cutter boats had been operating on the reef prior to construction. Thus, it seems likely that when the coral reef scientists had been asked to assess each potential site, they truthfully reported that the coral was dead.
Professor McManus claims that “these areas of living coral reef would have been killed as the sand and silt from dredging and island construction leaked out to envelop them, just as is happening around the cutter boats. It can take a reef in these areas a thousand years to create a meter or so of gravel, sand, and silt, and so places from which they have been removed are essentially permanently altered.” 12
The common ground shared by all claimants is that an increasing number of South China Sea fisheries are hurtling towards collapse and this translates into a looming environmental security issue, and the outcome is all too likely to be conflict. The global scientific, conservation and legal communities must unite to halt the coral reef destruction, biodiversity loss, and fisheries depletion.
China with the world’s largest fleet of deep-sea fishing vessels is plundering the ocean to feed their enormous population. China’s distant-water fishing fleet has grown to nearly 2,600 vessels (the United States has fewer than one-tenth as many), with 400 boats coming into service between 2014 and 2016. The data is clear: these unsustainable fishing practices threaten food security for the region and the world. 13
Since there remain serious concerns about what will happen next to address further ecological damage, it may be thatscientific interest and environmental objectives in the region could strengthen diplomacy within both legal and scientific frameworks and lead to cooperation and to insuring environmental security for all in the region.
For ASEAN, the South China Sea links their global economies, remains an energy-shipping route and provides the essential sea lanes between Southeast Asian islands. With an escalation of fishing boat clashes, ASEAN leaders may be taking notes on how to reduce fishing incidents rather than to resorting to sending more fleets into the commons.
For many policy observers, it’s odd that while ASEAN countries quickly reached a consensus to issue statements to address the terror attacks in Istanbul;they failed to be united on the international tribunal’s ruling.
Since last year’s tribunal decision was the first international rulingon the South China Sea, it offered an opportunity for measured steps towards peace and security. Of course, ASEAN has demonstrated a weak institutional capacity to address complex political and environmental issues simultaneously, but the world, including the United Nations and Washington are watching carefully how international law and its application on various claims can lead to a peaceful and lawful path forward.
Lawrence E. Susskind, a Ford Professor of Urban and Environmental Planning at Massachusetts Institute of Technology (MIT), also raises the issue of China’s support for science diplomacy. He asserts that although China did not join a few of the science diplomacy initiatives in the past, Beijing has its own agencies to deal with environmental issues. 14
However, it’s telling that China is not among the states that share data with the Pacific Tsunami Warning Center in Hawaii (PTWC), which collaborates with countries all over the globe to warn at-risk populations of impending tsunami. Conversely, China established its own tsunami-warning center in the South China Sea, which it counts among its diplomatic rationales for its South China Sea activities. So China may already have its own science policy in the South China Sea, which could simultaneously prove both diplomatic and controlling. Consequently, Beijing may tend not to protest other, similar initiatives.
The Philippines and Vietnam have time and again chosen to look at the South China Sea as a sea that binds rather than divides claimant nations by trying to promote cooperation on common interests.
The Joint Oceanographic Marine Scientific Research Expedition organized between the Philippine Maritime and Ocean Affairs and the Vietnamese Institute of Oceanography provides evidence that science offers confidence-building opportunities through diffusion and exchange of information on marine resources. There have been three joint science operations conducted between 1996-2007 covering the southern part of the South China Sea. 15
Informal conversations are now taking place between the Philippines and Vietnam about reviving joint maritime research activities in 2018.
But the crucial point here is that the assemblage of the South China Sea is increasingly shaped in scientific terms. Nevertheless, it’s painfully clear that today’s ecological policy issues face formidable challenges to inform policy deliberations. As the disposition of regional maritime space becomes greater, adding seabed research, geology and mapping, deep-sea biology, underwater archaeology, cultural registers, environmental symposia, and marine protected areas, it revealsmore avenues for thecreation of common ground for all claimants. In this unfolding maritime drama, science offers all claimants the ability to monitor and to intervene.
Although science diplomacy is not a completely new approach to solving conflicts in general and in South China dispute management in particular, the urgent adoption of such a peace-building mechanism by all claimants is desperately needed.
Perhaps a few of these suggested actions directed to all claimant nations marine scientists and policy shapers may bolster peace building in the region:
- Create regional Marine Science Council to address environmental degradation issues;
- Expand science cooperation among ASEAN marine scientists through more informal workshops;
- Provide an ASEAN regional cooperation science framework that mobilizes countries to address trans-boundary issues;
- Place aside all territorial claims;
- Establish complete freedom of scientific investigation in the contested atolls and reclaimed islands;
- Foster dialogue for a proposed marine peace park;
- Propose a science-led ASEAN committee to study the Antarctica Treaty and the United Nations Environmental Program initiative under the East Asian Seas Action Plan;
ASEAN does recognize the importance of fisheries to food security and to the economy. Because China has become the world’s top producer and exporter of fishery products, there’s more responsibility for them to operate in alignment with shared sustainable practices among their neighbors.
If there are to be any fish left in the contested sea, an ASEAN ecological agreement––led by Brunei, Malaysia, the Philippines, and Vietnam––can steer others to unite around a proposed international peace park or at the very least, a cooperative marine protected area situated prominently in the Spratlys.
It’s the first step in supporting trust and confidence among neighbors and in implementing a common conservation policy.
After all, coral reefs are the cathedrals of the South China Sea. It’s time for more citizens and policy shapers to join the chorus and rally around marine scientists so that they can “net” regional cooperation and ocean stewardship to benefit all before it’s too late.
1.Berkman, Paul, Power point presentation. http://www.envirosecurity.org/arctic/Presentations/EAC_Berkman. pdf
3.Nordquist, Myron H., Ronan Long, Tomas H. Heidar, and John Norton Moore, Ed.
2007 Law, Science & Ocean Management, Leiden/Boston: Martinus Nijhoff Publishers. Pp 271-293.
http://www.economist.com/news/leaders/21650122-disputed-sea- growing-security-nightmareand-increasingly-ecological-one-sea- troubles
Hong, Nong. “Marine Environmental Security as a Driving Force of Cooperation in the South China Sea.” Paper presented at Taiwan and the 2016 Elections: The Road Ahead- The Twenty-Fourth Annual Conference on Taiwan Affairs, Walker Institute of International and Area Studies University of South Carolina, September 24, 2016.
Bergenas, Johan, and Ariella Knight. Secure Oceans: Collaborative Policy and Technology Recommendations for the World’s Largest Crime Scene. Washington, DC: The Stimson Center, 2016 https://www.stimson.org/sites/default/files/file-attachments/Secure-Oceans.pdf.
Interview conducted with Professor Chu Manh Trinh in Cu Lao Cham June 2, 2016.
Panelist Dr. John McManus at the East West Center in Washington DC on May 3, 2016.
In Myanmar, Better Oversight of Forests a Vital Step in Transition to Rule of Law
Authors: Art Blundell and Khin Saw Htay
For the first time, the Myanmar Extractive Industries Transparency Initiative (MEITI) has opened the books to share information with the public on revenue Myanmar’s government collects from harvesting timber. Last month, the MEITI released two reports juxtaposing statistics on production and tax payments from government ministries’ ledgers with corresponding figures reported by the state-owned Myanma Timber Enterprise (MTE) and forestry companies.
The reports are an important step toward improved transparency and accountability in Myanmar’s forest sector because they shine a light on irregularities that may point toward mismanagement or illegal activities. Unclear legal frameworks and weak enforcement in Myanmar’s forestry sector – a remnant of decades of military rule – have created an environment ripe for illegal logging and illicit trade, and mismanagement of natural resources.
The role of forests in Myanmar’s transition to democracy cannot be overemphasized. Money from illegal logging helped to fuel Myanmar’s decades-long civil war. Smuggling of illegally harvested timber to countries like Chinahas led to the loss of millions of dollars each year in government revenue. Corruption also fuels continued violence and prolongs armed conflict, especially in the heavily forested states that are home to most of Myanmar’s ethnic minorities.
The MEITI is committed to sharing its results at the state level—especially in Myanmar’s forest-rich regions. Myanmar’s citizens have the right to understand how their forests are being managed for the public good.
The EITI framework was launched globally in 2003 with a focus on oil, gas, and mining, given that these lucrative sectors are often key drivers of corruption in resource-rich countries. Myanmar is one of only a few countries (following Liberia’s lead) to add forestry to its EITI reporting, thanks to advocacy from civil society.
Myanmar’s newest MEITI reports are a commendable step by the government toward transparency. But producing a report like this is not easy. The reporting highlights numerous disparities and irregularities in government record-keeping. This is not unusual for a first EITI report. It is also a major objective of the EITI: transparency leads to meaningful discussion about necessary reforms, while regular reporting creates an accountability mechanism to demonstrate progress. MEITI is now preparing their next report covering fiscal years 2016-2017 and 2017-2018.
The MEITI is already driving progress. Myanmar’s Ministry of Planning and Finance (MoPF) has announced it will close the so-called “other accounts” maintained by State-owned Economic Enterprises, like the MTE, that have kept more than half their profits separate from the government’s central budget. Data in the MEITI report suggest that MTEretained74% of its $1 billion profits from fiscal years 2014-2015and2015-2016 in these other accounts–significantly more than the 55% that is permissible.
Myanmar’s Ministry of Natural Resources and Environmental Conservation (MoNREC) now holds important data that can be used to investigate and resolve irregularities uncovered by the MEITI reporting. For instance, the Forestry Department’s data on production does not match the data provided by the MTE, and it is substantially more than the Annual Allowable Cut (a government-determined sustainable level of harvest). Likewise, the MTE indicated that more teak was sold than its total reported supply. The source of the additional volume of teak logs is unexplained.
Reforms should help MoNREC address these irregularities. Current reporting is obviously insufficient to capture reality. With the help of a workshop that followed the MEITI launch, stakeholders are working with MoNREC to develop appropriate reforms for MTE and the Forestry Department, and to improve forestry sector governance in general.
Opacity hurts the country in more ways than one. Illegal logging, corruption, and smuggling siphon off revenues meant for programs serving the public. Illegalities also threaten forests – and the communities that rely on forests for their livelihoods – and they drive off credible investment, leaving a gap often filled by investors with less regard for environmental and social regulations.
It is important to note that the MEITI reports cover only the period from April 2014 through March 2016, prior to Aung San Suu Kyi’s NLD Party coming into power. The current administration has committed to fairer distribution of benefits from Myanmar’s natural resources among its citizens, yet systematic barriers remain. Endorsing the recommendations from the MEITI report and implementing a roadmap for reform would signal the NLD’s commitment to good forest governance. Meanwhile, companies should do their part to comply with the law and accurately report production, sales, and other data in an accessible manner that allows for independent monitoring.
Myanmar’s forest resources hold great promise for the country’s people, its economy, and the government budget, if managed responsibly. The MEITI has a clear role in charting that path forward and in helping Myanmar manage its natural resources based on the principles of good governance.
South-East Asia youth survey: Skills prized over salary
Young people in South-East Asia face a relentless challenge to upgrade their skills as technology disrupts job markets, according to research released today by the World Economic Forum and Sea.
In a survey of 56,000 ASEAN citizens aged between 15 and 35, some 9% of respondents say their current skills are already outdated, while 52% believe they must “update their skills constantly.” Only 18% believe their current skills will stay relevant for most of their lives.
These concerns about skills are reflected in attitudes to jobs. ASEAN youths say the number one reason they change jobs is to learn new skills – the desire to earn a higher income comes second. 5.7% report having lost a job either because their skills were no longer relevant, or because technology had displaced them. Other reasons include the desire to create a more positive social impact and to have a more innovative working environment.
The survey also shows 81% of ASEAN youths believe internships are either equally important or more important than school education. In addition, over half are keen to spend time working overseas in the next three years, probably to gain new skills, with a significant portion wanting to work in another ASEAN country.
“It is impossible to predict how technology will change the future of work.” said Justin Wood, Head of Asia Pacific and Member of the Executive Committee at the World Economic Forum. “The only certainty is that job markets face accelerating disruption, where the lifespan of many skills is shortening. It is encouraging that ASEAN youths are aware of these challenges and show a deep commitment to lifelong, ongoing learning.”
Soft versus STEM skills
Overall, ASEAN youth attach greater importance to soft skills, and less importance to STEM skills – science, technology, engineering and maths. They see “creativity and innovation” as the most important skill – in which they also rank themselves highly – followed by the ability to speak multiple languages. They are confident about their soft skills, such as emotional intelligence, and list the two least important skills as “maths and science” and “data analytics”. They are particularly positive about their ability to use technology such as social media platforms, e-commerce sites, and e-payment systems.
Santitarn Sathirathai, Group Chief Economist of Sea, noted: “While it is essential that the region continues to invest in developing STEM skills among young people, we can also see that soft skills will have a vital role to play – even in the tech sector. In the world where knowledge becomes obsolete more quickly, soft skills such as adaptability, leadership and creativity will be crucial in ensuring young people have the resilience to constantly evolve their skill-sets in step with a changing market.”
The importance of re-skilling
Responding to the need to train workers in the face of technological change, the ongoing ASEAN Digital Skills Vision 2020 programme, launched by the Forum in Bangkok in November 2018 is assembling a coalition of organizations to train 20 million workers at ASEAN SMEs by 2020, and to provide internship and scholarship opportunities.
“The World Economic Forum’s ASEAN Digital Skills programme is delivering significant impact. In its first eight months, the initiative has already secured commitments to train over 8.9 million workers at SMEs, and to provide over 30,000 internships,” said Mr Wood.
Some 16 organizations have so far joined the programme: BigPay; Certiport, a Pearson VUE Business; Cisco; FPT Corporation; General Assembly; Golden Gate Ventures; Google; Grab; Lazada; Microsoft; Netflix; Plan International; Sea; thyssenkrupp; Tokopedia; and VNG Corporation.
“Government policy and business practices need to catch up to what is happening on the ground. Advances in technology will continue to impact labour markets into the future, and this requires ongoing education and skills training,” said Saadia Zahidi, Managing Director and Head of the Centre for the New Economy and Society at the Forum. “Anything less than a systematic shift in our approach to education and skills risks leaving people behind.”
When asked what type of organization they work for today, and where they would like to work in the future, ASEAN youths show a strong preference for entrepreneurial settings. Today, 31% are either entrepreneurs or work for a start-up. In the future, 33% want to work in an entrepreneurial setting. 19% of young people also aspire to work for foreign multinationals in the future (the current figure is 9%).
Traditional SMEs (as opposed to start-ups) are seen less favourably. While SMEs form the backbone of ASEAN labour markets, the survey reveals that small companies face recruitment challenges. 18% of youths work for SMEs today, but only 8% want to work for an SME in the future. One reason for the low interest is because young people say they receive less training at small companies compared to larger ones.
When asked what industry sectors are most attractive, the results reveal a clear preference for the technology sector, with 7% working in the industry today and 16% aspiring to work there in the future. In comparison, more traditional parts of the economy may face recruitment challenges. For example, 15% of youths work in manufacturing today, but only 12% want to work there in the future. Likewise, 8% work as teachers, yet only 5% want to work in education in the future.
Being Wealthy Helps Singapore’s Naval Ambition
There’s an image that has been imprinted in the minds of the millions about Singapore, that it is a tiny yet wealthy city-state and an important Asian financial hub. But many are unaware of the fact that Singaporean armed forces are stronger than many regional forces, as it has one of the best navies, airforces and armies in the region.
Singapore’s navy, officially known as the Republic of Singapore Navy (RSN), in particular has been shaped over the years into a maritime force which is highly sophisticated and well-trained. An article on The National Interest ranked the RSN among the top five Asian navies, even when Indian Navy did not find a place in the list.
According to the aforesaid article, the RSN is a better navy than the Indian Navy in terms of quality, operation and policy-making, though the RSN lacks the experience, manpower and size of the Indian Navy. Arthur Waldron, an International Relations academic at the University of Pennsylvania, believes that if Chinese Navy, necessarily dividing the fleet, sends a taskforce to subdue the RSN at the Philip Channel, the narrowest part of the Strait of Malacca, the RSN would beat the Chinese taskforce.
Ambitious Procurement Plans
Singapore intends to build a navy that could protect its territories and economic interest from the potential hostility by any immediate larger neighbours, and more importantly a navy that could become lethal if combined with other regional and extra-regional navies (like Australia and Indonesia) against a greater navy (e.g. against Chinese navy). That is why, the RSN is currently on a spree to acquire more capabilities and next-generation platforms.
As part of its submarine force renewal program, the RSN is acquiring four Type 218SG submarines from Germany to improve the operational and combat capabilities of its submarine fleet. These new submarines will be having far more capabilities and durability — and are built to stay submerged about 50% longer — than those of the existing ones.
It’s worth mentioning here that submarines, unlike surface warships that have both peactime and wartime functions, is built to shoot and destroy targets as well as to conduct surveillance, even surveilling foreign coasts to gather vital intelligence. The very fact that a small city-state like Singapore has submarines in operation and is now renewing its fleet with even more capable submarines — shows how ambitious Singaporean navy has become about increasing its naval power.
Because of the larger capacity, these submarines have plenty of scopes for future upgrades, meaning that these submarines could be equipped with weapon systems such as long-range missiles to carry-out an offensive strike.
There’s more to the Singapore’s naval ambitions. Take for example the Joint Multi-Mission Ships (JMMSs), one of the RSN’s major new procurements. With full-length flight deck, these vessels would be almost 540 feet long with an estimated displacement of around 14,500 tons, and are expected to carry five medium and two heavy helicopters on a flight deck. What’s more, these vessels could potentially support limited operations of fixed-wing aircraft, including the F-35B warplanes which Singapore airforce is expected to purchase from the U.S. sometime in near future. Therefore, these vessels could potentially serve as aircraft carriers.
The RSN is also very well aware of the fact that wars these days are fought from a distant with the help of unmanned drones and unmanned vessels that carry cameras and weapons in order to see farther and respond quicker. Hence, the RSN plans to procure new vessels that will be having multiple unmanned air and surface vehicles to extend their reach and flexibility against threats. Take the eight new Littoral Mission Vessels (LMVs) for example. These LMVs will have a helicopter landing pad that will be able to carry an unmanned aerial vehicle. The aforesaid JMMSs and the new Multi-Role Combat Vessels (MRCVs) too will have unmanned air and surface vehicles.
Being Wealthy Helps
An Asian financial hub, the city-state of Singapore has a lot of wealth. The tiny landmass of the state and the already developed infrastructures allow the Singaporean government to allocate comparatively lesser wealth on infrastructures and other conventional sectors and to invest more on innovation and technology as well as defense and security. This is how the tiny state affords to make the quality defense procurements.
Singapore has been the Southeast-Asia’s largest military spender for several years now. Singapore was the top regional military spender in 2018 with an expenditure of US$10.8 billion and the Southeast Asian neighbour with the closest figures was Indonesia with an expenditure of US$7.4 billion. For 2019, Singapore has allocated US$11.4 billion for defense on its budget — something which amounts to about 19 percent of total government expenditures and around 3.3 percent of national GDP.
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