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Reflection of Indonesia’s National Farmer’s Day

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September has been a memorable and recorded month in the nation’s development process. One important event that should not be underestimated, that is the momentum of National Farmers Day. Indonesia’s fertile country has become both a flattering and a slap in the face to the current state of national agriculture. Various problems unravel clearly and painfully if we match the title of agrarian country in Indonesia

Referencing data from The Economist Intelligence Unit, from year to year Indonesia’s position has never shifted far from positions 4 and 5 in ASEAN sphere in terms of food security. While in the world, in the Global Food Security Index (GFSI) Indonesia ranks 61st out of a total of 113 countries. This shows how weak Indonesia’s bargaining position is in terms of agricultural management that leads to food security.

If you take the example of the above data, it can be seen clearly that over the past few years until now there has been a stagnation in terms of agriculture in Indonesia. Political economist Ichsanudin Noorsy in some of his discussions said that Indonesia never really thought of building social relations in structurally dismantling the agricultural and livestock problems that have occurred so far, ranging from upstream to downstream. All flows from resources, production, distribution to retribution and regulation.

As a result of the unpacking of social relations structurally, many farmers are even dependent on the third person, although actually there is now Internet Communication and Technology (ICT). That means Indonesian farmers do not have a good life expectancy in that case, this is similar to Clifford Geertz’s thesis that says society cannot rely on the agricultural sector due to poor food security problems. If looking back at resources and production sectors that are inputs from agriculture is problematic, that means food security or automatic food security will also be problematic.

The Food and Agriculture Organization (FAO) itself says there are 4 indicators that affect food security, namely food availability adequacy, food availability stability, accessibility and quality/food safety. Of these four factors, it can be compared that Indonesia now faces problems ranging from the conversion of agricultural land, irrigation, the availability of seeds/seeds and fertilizers, as well as guaranteed life expectancy in farmers. On land issues, Indonesia is still not able to equally national agricultural development to the regions.

It is difficult to talk about land problems, meaning there must be an even distribution of the population to spread a more adequate map of farmland in each area. In the field of irrigation, there are still many agricultural waterways in remote areas that are inadequate. While subsudi seeds, seeds and fertilizers are even stripped one by one, not even a few are manipulated procurement. This led to the absence of guarantees and life expectancy in the majority of smallholders, so the agricultural sector tended to be controlled by large companies.

If we haven’t spread the population evenly, it means that we’re still failing to see the resources that indicate that we’re still failing in production (input). It was this failure in the production sector that led to Indonesia still relying heavily on foreign parties. This dependency interferes with the available aspects or availability of domestic food which also results in our country needing dollars (world currency) in holding imports, this is what ultimately affects the growth of further inflation.

The problems that the authors describe indicate that Indonesia is currently facing “Structural Problematic” syndrome in the national agricultural sector. In the past Suharto once said that “a strong economy is supported by strong industry and agriculture”. But when viewed again, the agricultural sector is even left behind, and besides that the manufacturing sector is also falling apart. Whereas during this time the government has always been a fanfare saying agriculture is soko guruh national development, but the reality is even inversely proportional. This is what the author refers to as a kind of ambitious attitude in the author’s writing entitled ambitiousness in state governance.

Sukarno used to be fiery in his oration and gave up a spirit that mentioned “do not let us become a nation of kuli or kuli among other nations”. The simple logic that will be created if Indonesia continues to depend on foreign investment is a sign that Indonesia is also ready to become a kuli because it reduces production factors or upstream from food security itself. How can Indonesia talk about food sovereignty if food is just a matter of position.

Especially in the days of the Covid-19 pandemic now that has a huge impact on national food security such as the disruption of production factors due to restrictions on the movement of labor, distribution that has also been hampered some time ago, as well as the purchasing power of the people that is decreasing. Looking back from data from the Central Bureau of Statistics (BPS) which released the national economic growth position in the second quarter of 2020 decreased to 4.19%, while agricultural GDP grew 16.24% and became the highest contributor to national economic growth. This data shows how important the agricultural sector is as the key to increasing the weighting of national economic growth.

Referring to systematic problems in the agricultural sector in Indonesia should make us all have to be careful, because it becomes possible if not immediately addressed, it could be that for many years the agricultural sector in Indonesia can no longer meet the food needs for all Indonesians that will cause a prolonged food crisis. This bad shadow will certainly make Indonesia more dependent on foreign imports. In the absence of systemic fix on agriculture, then the success as an agrarian state that was once often hailed only as a name.

Let us reflect again on the momentum of September 24 as the anniversary of this national farmer’s day. The extent to which we contribute and position ourselves as indonesians, whether we will truly optimize the role according to our respective professions in improving the agricultural sector or simply hide behind dependency and become a nation that is always dictated by big global players. The determination of national farming day based on President Sukarno’s decision on August 26, 1963 No.169/1963 signifies the importance of the role and position of farmers as a nation entity that must be maintained and expanded.

Let’s celebrate the agrarian day of the Indonesian nation by showing the best ideas for the future of national agriculture, thinking critically and building and taking a position as an agent of change of every problem that is gnawing at agriculture today. Reinvent agriculture that is dischared over resources from upstream to distribution as a downstream of food security factors. Avoid bad stereotypes of farmers, because in Europe and America though, farmers are very sovereign and even have important positions in their professions. Special for young Indonesians, let’s reclaim the long-awaited agricultural success of the nation, once again happy national farmer’s day.

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Southeast Asia

Indonesia Submit Extended Continental Shelf Proposal Amidst Pandemic: Why now is important?

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Authors: Aristyo Rizka Darmawan and Arie Afriansyah*

Indonesia’s active cases of coronavirus have been getting more worrying with more than 100.000 active cases. With nearly a year of pandemic, Indonesia’s not only facing a serious health crisis but also an economic catastrophe. People lose their jobs and GDP expected to shrink by 1.5 percent. Jakarta government therefore should work hard to anticipate the worst condition in 2021.

With this serious economic threat, Indonesia surely has to explore maximize its maritime geographic potential to pass this economic crisis and gain more national revenue to recover from the impact of the pandemic. And there where the Extended Continental Shelf submission should play an important role.

Recently this week, Indonesia submit a second proposal for the extended continental shelf in the southwest of the island of Sumatra to the United Nations Commission on the Limit of the Continental Shelf (CLCS). Continental shelf is that part of the seabed over which a coastal State exercises sovereign rights concerning the exploration and exploitation of natural resources including oil and gas deposits as well as other minerals and biological resources.

Therefore, this article argues that now is the right time for Indonesia to maximize its Continental Shelf claim under the law of the sea convention for at least three reasons.

First, one could not underestimate the economic potential of the Continental Shelf, since the US Truman Proclamation in 1945, countries have been aware of the economic potential from the oil and gas exploration in the continental shelf.

By being able to explore and exploit natural resources in the strategic continental shelf, at least Indonesia will gain more revenue to recover the economy. Even though indeed the oil and gas business is also hit by the pandemic, however, Indonesia’s extended continental shelf area might give a future potentials area for exploitation in long term. Therefore, it will help Indonesia prepare a long-term economic strategy to recover from the pandemic. After Indonesia can prove that there is a natural prolongation of the continental shelf.

Second, as the Indo-Pacific region is getting more significant in world affairs, it is strategic for Indonesia to have a more strategic presence in the region. This will make Indonesia not only an object of the geopolitical competition to utilize resources in the region, but also a player in getting the economic potential of the region.

And third, it is also showing that President Joko Widodo’s global maritime fulcrum agenda is not yet to perish. Even though in his second term of administration global maritime fulcrum has nearly never been discussed, this momentum could be a good time to prove that Indonesia are still committed to the Global maritime fulcrum by enhancing more maritime diplomacy.

Though this is not the first time Indonesia submit an extended Continental Shelf proposal to the CLCS, this time it is more likely to be accepted by the commission. Not to mention the geographical elements of natural prolongation of the continental shelf that has to be proved by geologist.

The fact that Indonesia has no maritime border with any neighboring states in the Southwest of Sumatra. Therefore, unlike Malaysia’s extended continental shelf proposal in the South China Sea that provoke many political responses from many states, it is less likely that Indonesia extended continental shelf proposal will raise protest from any states.

However, the most important thing to realize the potential benefit of the extended continental shelf as discussed earlier, Indonesia should have a strategy and road map how what to do after Indonesia gets the extended continental shelf.

*Arie Afriansyah is a Senior Lecturer in international law and Chairman of the Center for Sustainable Ocean Policy at University of Indonesia.

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The China factor in India’s recent engagement with Vietnam

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Photo courtesy - PTI

In its fourth year since the elevation of ties to a Comprehensive Strategic Partnership, December 2020 witnessed an enhanced cooperation between New Delhi and Hanoi, ranging from humanitarian assistance and disaster relief to defence and maritime cooperation, amid common concerns about China.

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In an effort to boost defence cooperation, the navies of India and Vietnam conducted atwo-day passage exercise (Passex) in the South China Sea on December 26 and 27, 2020, reinforcing interoperability and jointness in the maritime sphere. Two days before this exercise has begun, an Indian naval ship arrived at Nha Rong Port in Ho Chi Minh City to offer humanitarian assistance for the flood-affected parts of Central Vietnam.

Before this, in the same week, during a virtual summit between Indian Prime Minister Narendra Modi and his Vietnamese counterpart Nguyen Xuan Phuc on December 21, both countries inked seven agreements on miscellaneous areas of cooperation and jointly unveiled a vision and plan of action for the future, as both countries encounter the common Chinese threat in their respective neighbourhoods.

Vietnam’s disputes with China

India’s bone of contention with China ranges from the Himalayas to the Indian Ocean. Both Vietnam and India share territorial borders with China. Well, it seems odd that despite its common socialistic political backgrounds, China and Vietnam remains largely hostile. 

Having a 3,260 km coastline, covering much of the western part of South China Sea, Vietnam’s exclusive economic zone (EEZ) overlaps with Chinese claims based on the legally invalid and vaguely defined Nine-Dash Line concept, unacceptable for all the other countries in the region, including Vietnam, Philippines, Malaysia, and Brunei.

In 2016, China lost a case brought out by the Philippines at the Permanent Court of Arbitration based in The Hague when the court ruled that Beijing’s had no legal basis to claim ‘historic rights’ as per the nine-dash line. China rejected the ruling and continued to build artificial islands in the South China Sea, which it has been doing since 2013, some of them later militarized to gain favourable strategic footholds in the sea and the entire region.

The Paracel and the Spratly Islands in the South China Sea has been historically considered part of Vietnam. The Geneva Accords of 1954, which ended the First Indochina War, gave the erstwhile South Vietnam control of territories south of the 17th Parallel, which included these island groups. But, China lays claims on all of these islands and occupies some of them, leading to an ongoing dispute with Vietnam.

China and Vietnam also fought a border war from 1979 to 1990. But today, the disputes largely remain in the maritime sphere, in the South China Sea.

China’s eyes on the Indian Ocean

The Indian Ocean has been long regarded as India’s sphere of influence. But with the Belt and Road Initiative, a trillion-dollar megaproject proposed by Chinese President Xi Jinping in 2013, and the Maritime Silk Road connecting three continents, which is part of it, China has grand ambitions in the Indian Ocean. Theories such as ‘String of Pearls’ shed light on an overambitious Beijing, whichattempts to encircle India with ports and bases operating under its control.

China has also opened a military base in Djibouti, overlooking the Indian Ocean, in 2017 and it has also gained control of the strategic port of Hambantota in the southern tip of the island of Sri Lanka, the same year.

Chinese presence in Gwadar in Pakistan, where the Maritime Silk Route meets the land route of BRI, is also a matter of concern for India. Moreover, the land route passes through the disputed Gilgit-Baltistan region, which is under Pakistani control, but is also claimed by India.  China has also been developing partnerships with Bangladesh and Myanmar to gain access to its ports in the Bay of Bengal.

Notwithstanding all this, India’s response has been robust and proactive. The Indian Navy has been building partnership with all the littoral states and small island states such as Mauritius and Seychelles to counter the Chinese threat.

India has also been engaged in humanitarian and developmental assistance in the Indian Ocean region, even much before the pandemic, to build mutual trust and cooperation among these countries. Last month, India’s National Security Adviser Ajit Doval visited Sri Lanka to revive a trilateral maritime security dialogue with India’s two most important South Asian maritime neighbours, the islands of Sri Lanka and the Maldives.

Foe’s foe is friend

The Indian Navy holding a Passex with Vietnam in the South China Sea, which is China’s backyard, is a clear message to Beijing. This means, if China ups the ante in the Indian Ocean or in the Tibetan border along the Himalayas, India will intensify its joint exercises and defence cooperation with Vietnam.

A permanent Indian presence in the South China Sea is something which Beijing’s never wish to see materialise in the new future. So, India’s engagement with Vietnam, which has a long coast in this sea, is a serious matter of concern for Beijing.

During this month’s virtual summit, Prime Minister Modi has also reiterated that Vietnam is a key partner of India in its Indo-Pacific vision, a term that Beijing vehemently opposes and considers as a containment strategy against its rise led by the United States.

Milestones in India-Vietnam ties – a quick look-back

There was a time when India supported Vietnam’s independence from France, and had opposed US-initiated war in the Southeast Asian country in the latter half of the previous century. Later, India hailed there-unification of North and South Vietnams.

Even though India maintained consulate-level relations with the then North and South Vietnams before the re-unification, it was elevated to ambassadorial level in 1972, thereby establishing full diplomatic ties that year.

During the Vietnam War, India supported the North, despite being a non-communist country, but without forging open hostilities with the South. Today, India partners with both France and the United States, Vietnam’s former colonizers, in its Indo-Pacific vision, comfortably along with Vietnam as geopolitical dynamics witnessed a sea change in the past few years and decades.

Way ahead

Today, these two civilizational states, sharing religio-cultural links dating many centuries back, is coming together again to ensure a favourable balance of power in Asia. Being a key part of India’s ‘Act East’ policy and ‘Quad Plus’ conceptualisation, Vietnam’s role is poised to increase in the years to come as China continues to project its power in Asia and beyond.

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South Korea’s finance of ‘green’ palm oil drives destruction in Indonesia

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In 2019, South Korea imported 745,000 metric tonnes of palm oil, up from 194,000 metric tonnes in 2005. It is one of the fastest-growing markets for the commodity in the world, driven by government policies to boost palm oil as a lucrative green industry and to secure food and energy supplies from overseas.

Most of this palm oil comes from Indonesia and Malaysia and until recently was used in processed food, such as instant noodles. But under the country’s “Green New Deal” introduced earlier this year, palm oil is being promoted as a source of renewable energy, as biofuel for transport and power generation.

But palm oil’s green credentials are hotly debated. While the US and Europe are taking steps to restrict use because of links to widespread deforestation and high carbon emissions, South Korean public institutions have given millions of dollars in subsidies to companies developing plantations in Indonesia in the name of “green” development.

Environmental activists and lawyers in South Korea have become increasingly vocal about the industry’s links with human rights violations and deforestation in Indonesia, and are demanding the government stop financing destructive practices.

Demand soars

South Korea relies on overseas imports for 97% of its energy and 75% of its food resources. After the 2008 global food crisis, the government set out to secure both edible and industrial palm oil, launching an “Overseas Agro-resources Development” programme in 2009. That public loan scheme covered 70% of the business costs of private South Korean companies to produce and distribute wheat, soybean, corn and crude palm oil.

Palm oil is designated a strategic commodity under South Korean law. The Overseas Agriculture & Forest Resources Development and Cooperation Act, and the Overseas Resources Development Business Act are used as legal grounds to subsidise Korean palm oil companies overseas. The Korea Forest Service and various finance institutions classify oil palm development as “bioenergy afforestation” projects. This is a perverse use of the word afforestation, which generally means planting trees for environmental and climate benefits, not clearing tropical forest for monoculture plantations.

“I find these acts very imperialistic. The government is helping companies to take resources from other countries because we are resource-poor,” said Chung Shin-young, a lawyer with Advocates for Public Interest Law (APIL), who has been investigating South Korea’s palm oil industry and leading the campaign to stop public finance of the industry.

Public and private investment in the palm oil industry has also been driven by the use of palm oil as a transport fuel since the mid 2000s. Since 2015, South Korean companies importing or exporting petroleum fuel products have had to ensure their oil products are at least 2.5% biodiesel. The proportion was later increased to 3%. As of 2017, palm oil and its by-products accounted for 88% of South Korea’s biodiesel imports.

Public money funds deforestation and human rights abuses

South Korean palm oil producers found themselves in the international spotlight in 2016 when environmental advocacy group Mighty Earth, in partnership with the Korean Federation for Environmental Movements (KFEM), exposed massive forest clearance in the palm oil concessions of Korindo and Posco International in Indonesian-administered Papua. Satellite data and drone images showed that Korindo had cleared 30,000 hectares of rainforest in the previous two years while Posco International had cleared 19,000 hectares in the previous four.

Korindo established its first oil palm plantation in Papua in 1998. Recent years have seen a marked expansion of its activities in the province, with 30,000 hectares of forest cleared between 2013 and 2016. (Image: Mighty Earth)

“The Korean model of palm oil plantation deforestation harkens back to the old, dark days of the palm oil industry when forests, wildlife and indigenous lands were obliterated for the purpose of establishing giant expanses of monoculture plantations, the profits of which mainly go to foreign owners,” said Deborah Lapidus, senior campaign director at Mighty Earth.

The problem is these two companies have been operating their palm oil business with public money from the Korea Forestry Service and the Export-Import Bank of Korea (Korea Exim Bank), said Chung.

“If you look at the detailed statement of the government loan to Posco International, you will learn that they rarely run a business on their own money. But it’s not only Posco International. LG International, Daesang, and JC Chemical before them got a loan from the Korea Forestry Service,” said Chung. Her team was one of the first local groups to investigate South Korean palm oil companies’ links to rights violations and massive deforestation in Indonesia since 2016, together with the Korean Federation of Environmental Movements (KFEM). 

“The agency’s very first public loan to the palm oil industry was to an oil palm afforestation company, Daesang Holdings, in 2008. In total, 3.8 billion-won (around US$3.2 million) was financed for a bioenergy afforestation project in Indonesia,” explained Shin Gun-seop, an administrative officer at Korea Forest Service’s Overseas Resources Development Office.

Between 2010 and 2019, Korea Forest Service provided 40.1 billion won (around US$33 million) to plant oil palms in around 24,000 hectares, mostly in Indonesia, according to Shin. Daesang Holdings, LG International Corp., Kodeco, and JC Chemical were some of the recipients of these public loans.

Livelihoods destroyed

The expansion of South Korean palm oil companies has put indigenous communities’ livelihoods at risk, many of whom had been displaced from their forest land in the past.

“My concern is that the presence of Korindo and Posco International in Papua will further widen gaps and deepen injustices in Papua where big business take everything and the local community is left with empty hands. For most indigenous Papuans, forests are their supermarkets, banks, hospitals and sacred places. Massive forest conversion means they lose their livelihoods,” said Angky Samperante from the Papuan rights group Yayasan Pusaka. His team has been struggling to protect the rights of indigenous peoples and the environment of Papua against Korean palm oil companies since 2010.

A family from the Kowin Marind tribe whose land has been affected by deforestation to make way for a Korindo plantation in Papua (Image: Mighty Earth)

The Forest Stewardship Council (FSC) has been closely monitoring Korindo’s operations since complaints against its destructive practices and human rights violations were first made by Mighty Earth in 2017, but has stopped short of stripping it of its sustainability certification. Korindo Group published a statement on its website in July 2019 saying it rejected complaints that it was involved in illegal forest fires but agreed to work with FSC to improve its standards.

The Korean palm oil industry has been linked with the suffering of indigenous communities in Indonesia from the start. Korindo Group started the first “Korean” palm oil business in Merauke, Papua province, in 1995. There the Marind and Mandobo peoples had already been forced from their customary forest by the central government’s development plan in the early 1970s. PT. Tunas Sawa Erma, the palm oil company of Korindo Group, acquired a palm oil business permit in 1997 and by December 2001 had planted palms over 7,800 hectares of land. This set the scene for the next set of large-scale Korean palm oil ventures in Indonesia from 2007.

The major players

Apart from Korindo, six other big South Korean companies have become major players in the palm oil industry, financed by public money. Almost US$200 million worth of public funding has been given to these companies to develop over 65,000 hectares of palm oil plantations in Indonesia. These estimates are based on publicly available and verified data from the Korea Forest Service, Export-Import Bank of Korea and the South Korean parliament. And according to an independent investigation by APIL (Advocates for Public Interest Law), almost all of these companies have ongoing land and rights violation conflicts with local communities.

Local advocacy groups have been running a campaign to stop government loans to the palm oil companies in Indonesia since APIL and KFEM (Korean Federation for Environmental Movements) published a report based on their investigation in 2019.

“It’s our tax money going into the industry that is complicit in land grabbing, indigenous people’s rights and labour rights violations. We are pushing Korean export credit agencies to have their own human rights standards to follow when providing a public finance loan to overseas projects like the palm oil industry. It is the government offices’ constitutional responsibility to avoid any human rights violations,” said Chung.

Carbon emissions

Local scientists are also raising their concerns about the government’s growing “carbon debt” given its support for the palm oil industry.

“South Korea has been using a by-product of crude palm oil called Palm Fatty Acid Distillate (PFAD) as a main source of bioenergy. Due to its high carbon intensity and environmental cost, PFAD would not be permitted as a main source of biodiesel in countries like the US and UK,” said Shin Jung-Yull from Korea Energy Agency’s audit division.

According to Shin’s 2018 PhD dissertation, PFAD accounted for 47% of Korea’s biodiesel feedstock in 2015, and emits 5.7 times more greenhouse gases than alternative oils. The European Union plans to phase out palm oil-based transport fuels by 2030, because of the deforestation and higher emissions they cause.

Mounting pressure

Since 2015, South Korean lawmakers have also been questioning the relevant ministries over the effectiveness and sustainability of public financing in the overseas palm oil industry through parliamentary inspections and research service reports.

Under public pressure, Korea Forest Service excluded Korindo from receiving overseas public financing and seized additional loan support for oil palm afforestation projects in 2019. This was after the agency introduced new evaluation criteria requiring companies to provide evidence, such as satellite images, to prove that they are not responsible for “conversion of forest”. However, companies receiving loans before 2019 are not bound by the stricter criteria.

Membership of the Roundtable of Sustainable Palm Oil (RSPO) – the global certification organisation set up to promote ethical palm oil – is not included in public financing criteria, and neither is a commitment to No Deforestation, No Peat, No Exploitation (NDPE) policies.

Despite this, there has been huge public pressure on companies to take action. Posco International voluntarily joined RSPO membership and introduced a zero-deforestation policy for its palm oil plantation in Indonesia’s Papua province in March this year.

When asked to respond to the international outcry over their activities in Indonesia, Joyce Eun Jeong Seo of Posco International’s Sustainable Management Department told China Dialogue: “In carrying out the palm oil business in Indonesia, Posco International and its subsidiary PT Bio Inti Agrindo recognised and complied with indigenous customary laws as a top priority and strives to fulfil the level of social responsibility required by international norms as a responsible global company.”

Posco International was the first South Korean business to introduce a NDPE (no deforestation, no peat, no exploitation) policy earlier this year. But between 2012 and 2017, its subsidiary in Papua cleared 26,500 hectares of mostly primary forest to establish a plantation. (Image: Google Earth, Landsat / Copernicus)

But Korean citizens have only just started to demand more transparency about the palm oil supply chain and the problems around this ubiquitous commodity. 

“We all know that our country has to rely heavily on overseas resources for our food and energy. But the government cannot blind its citizens by using ‘national interest and security’ logic to justify human rights violation, deforestation and carbon emissions,” said Kang Myung-hwa, a 34-year-old citizen from Seoul.

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