According to the data of the U.S. Energy Information Administration, over 30% of maritime crude oil trade passes through the South China Sea. Over 90% of the crude oil arriving in that sea pass through the Strait of Malacca, i.e. the shortest sea route between suppliers in Africa and the Persian Gulf and markets in Asia, thus making it one of the main geographical hubs of black gold in the world.
The key factor is that many raw materials and materials for energy development must pass through this Strait. Currently, the transport of goods between East Asian countries, Europe and Africa must have the Strait of Malacca, controlled by Singapore, as a route – provided it is fast.
On September 24, 2019 Singapore and the United States signed the Protocol amending the 1990 Memorandum of Understanding on the U.S. use of facilities in Singapore.
Singapore had proposed to use U.S. warships, thus becoming the largest U.S. military base in Asia. The U.S. 7th Fleet and its ships, including aircraft carriers and other large vessels, provide logistics and maintenance services and greatly expand military control.
The 7th Fleet can cross the Strait of Malacca, enter the Indian Ocean and the Arabian Sea and reach the Gulf region within 24 hours. The U.S. military vessels in all the ports of the Strait can be used without prior notice. In this regard, the United States is also actively cooperating with Malaysia, the Philippines, Brunei, Thailand and other Southeast Asian countries.
The United States has deployed more advanced weapons and equipment in Singapore. As long as there are military disputes in East and Southeast Asia, the United States will immediately block the Strait of Malacca and hence control the whole crude oil transport system. In case of conflict, the Strait of Malacca could easily be blocked, thus cutting China off from crucial energy resources.
Although the Chinese strategic oil reserves are sent from neighbouring countries, it is difficult to go on for over 60 days with reserves alone. Meanwhile the United States is using the financial market to drastically increase energy prices and possibly start an economic war.
If the Strait of Malacca is blocked, China has not enough energy supplies stored and it can sustain the situation for a very short lapse of time. It should be added that all military operations would be delayed.
Singapore is a country traditionally friendly to the United States. The reason is the same as Japan’s, because the United States has interests in the Far East, while keeping on encircling China, thus trying to break “the string of pearls”.
The United States supports Singapore, which has some influence in Southeast Asia because it has no strong neighbours. With a view to managing maritime transport, the most important thing is to have strong armed forces. Until the country can be conquered by force, the financial and commercial development model leads to a very high success rate.
Singapore has a surface of 721.5 square kilometres only, less than the province of Lodi, Lombardy. Nevertheless, its defence spending is three times that of neighbouring Malaysia, and accounts for about 3.1% of its GDP, which is more or less the same as the Russian military power (3.9%). This is the version of South-East Asia bequeathed by Great Britain, such a close ally of the United States to be considered the fifty-first star on its flag.
If Singapore wants to control its own power in the Strait of Malacca, it must contain and curb China. Without the Strait of Malacca, there would be no maritime centre absorbing the surrounding commercial and financial forces. As long as the deepwater port – where large military and commercial fleets can dock – is well-established, the place of delivery/passage for raw materials in Southeast Asia, from the Near and Middle East, the EU and Africa, will inevitably be Singapore.
This is the reason why – although China also has a huge export market – many of the bulk goods will be waiting in line to pass through Singapore’s “Caudine Forks”.
Since 2015 there has been a plan that could break the balance. The trade route to the Indian Ocean across the Strait of Malacca has problems with pirates, shipwrecks, mist, sediments and shallows. Its accident rate is twice as high as the Suez Canal and four times higher than the Panama Canal.
A shorter alternative route is to build a canal in the isthmus of Kra, Thailand. This would enable to spare time and reduce shipping costs as the route gets 1,000 kilometres shorter. The Chinese state-owned companies Liu Gong Machinery Co. Ltd and XCMG, as well as the private company Sany Heavy Industry Co Ltd, have taken the initiative to create a study group for the construction of the Kra Canal. The 100-kilometre artificial connection with the Indian Ocean would benefit not only China and ASEAN, but also trade of Japan and other countries, including the EU.
Thailand is located at the centre of the Indochina peninsula and leads to the important Mekong region and South Asia. This artificial canal would be about 100 kilometres from the Andaman Sea and the Gulf of Thailand, so that the trade zone of South-East Asia should not pass through the Strait of Malacca.
However, according to a survey made five years ago, only 30% of Thai people was in favour of building the canal and at least 40% of them opposed it, for fear that it could cause political turmoil in Thailand, including environmental damage and corruption by the Thai government. An attempt was being made to convey the feeling that the Thai people were opposed to such initiative.
It is obvious that there are clear opponents: the biggest one is Singapore, of course. At that juncture, maritime trade in East and South-East Asia would leave the polis, which would be bound to lose its importance as a maritime bulwark and could even lose the U.S. protection. Nevertheless, on January 16, 2020, the Thai House of Representatives decided to set up a committee to study the Thai Canal project.
The Kra Canal would be very profitable for China. The countries concerned, namely Cambodia and Vietnam, are still hesitating. Thailand wants China to contribute with money and equipment, but it fears indirect control from China.
The Kra Canal would be controlled by China. Thailand may not operate and run it as planned, but it would reap the greatest benefits from it. Hence although the canal tolls may be much lower than the cost of development, China would still be willing to encourage Thailand to implement the project in view of creating another route bypassing U.S. control. China is also actively encouraging Myanmar to build an oil pipeline connecting Yunnan to Burmese ports.
China is willing to invest significantly and the aim is to bypass U.S. control, which has completely blocked China from the Pacific islands to Southeast Asia.
The energy and food that China needs cannot be self-produced, and the United States is trying to manage these two weaknesses by “moving Singapore on the chessboard”.
After World War II, the United States is the most striking example of “vertical community”, and “horizontal continuum“, to which the principle of “close and remote strike” applies. This refers to the economic power gap, not to kilometres as the crow flies. The U.S. strategy is to establish a long-term objective to prevent competitors from producing and developing cooperation.
The countries that have a large economic power gap vis-à-vis the United States are defined as “far away”, while the others close to the United States in terms of economic power and strength are defined as “near”. As a result, the neighbour always bothers and causes inconvenience in the world as is the case when living in a block of flats.
The U.S. strategy is designed to help and support the weaker side in the economic war – no matter if it is a dictatorship or an obscurantist and reactionary regime -in order to fight the strong side and achieve power supremacy. This balance can effectively prevent the emergence of a hegemonic power directly posing an economic-military threat to the United States. Supporting Singapore, Taiwan and Japan is certainly not an act of humanism and holding on to the “medieval” petromonarchies of the Near East does not mean strengthening the much-vaunted democracy.
Transforming Social Protection Delivery in the Philippines through PhilSys
Social protection helps the poor and vulnerable in a country, especially in times of crises and shocks that may threaten the well-being of families. When COVID-19 hit and quarantines began, the Philippines needed a massive expansion of social protection coverage to mitigate the impacts of the pandemic. Countries that already had good and inclusive digital infrastructure (including internet connectivity, digital identification, digital payments and integrated data ecosystems) were better equipped to quickly adapt their social protection programs to meet urgent needs. They also fared better in maintaining continuity of services when in-person interactions could be moved online.
For the Philippines, it presented a challenge, and strain was felt in the delivery of social assistance under the Bayanihan acts.
Fortunately, the country is moving to address digital infrastructure gaps, including through the development of the Philippine Identification System (PhilSys). PhilSys is one of the most complex – but also game-changing – projects undertaken in the country.
The Philippines is one of only 23 countries without a national ID system. As a result, Filipinos need to present multiple IDs (and often specific IDs that many do not have) when transacting, including with government, creating barriers to services for the most vulnerable among the population. Information across government databases is often inconsistent. These undermine the Philippines’ transition to a digital economy, society and government. The PhilSys will help address this by providing all Filipinos with a unique and verifiable digital ID (and not just a card), while also adopting innovative and practical data protection and privacy-by-design measures.
The new partnership agreement between the Philippine Statistics Authority (PSA) and the Department of Social Welfare and Development (DSWD) for DSWD’s adoption of the PhilSys is a milestone for the Philippines’ social protection and digital transformation journeys. DSWD will be the first agency to utilize the secure biometric and SMS-based identity authentication offered by the PhilSys to uniquely identify and verify its beneficiaries. Pilots with the Pantawid Pamilyang Pilipino Program (4Ps) and Assistance to Individuals in Crisis Situations (AICS) program will begin within the next few months, before PhilSys is used by all DSWD programs.
Adopting PhilSys will enable DSWD to further accelerate its digital transformation. By automating verification and business processes for its programs and services, DSWD will be able to improve the impact while reducing the costs of social protection programs. PhilSys will assist with identifying and removing ghost, duplicate and deceased beneficiaries to address leakages, fraud and corruption, and thus boost transparency and public trust. The unified beneficiary database that DSWD is developing with the help of PhilSys will contain up-to-date and consistent beneficiary information across all programs.
The World Bank is supporting these DSWD initiatives through the Beneficiary FIRST (standing for Fast, Innovative and Responsive Service Transformation) social protection project.
Importantly, these changes will translate to benefits for Filipinos.
Those who interact with the DSWD will face less paperwork, queues, hassle, costs and time. With their PhilSys ID, they will also have better access to a bank or e-money account where they can potentially receive payments directly in the future, promoting financial inclusion. Indeed, more than 5 million low-income Filipinos have already opened bank accounts during PhilSys registration. And the resources that DSWD saves can be redirected to addressing the needs of beneficiaries who live in remote areas without easy access to internet and social protection programs.
Beyond the advantages for social protection, the digital transformation PhilSys will catalyze in the public and private sectors can be fundamental to the Philippines’ pivot to reviving the economy and getting poverty eradication back on track. Success in utilizing PhilSys for social protection will have a significant demonstration effect in accelerating digital transformation by other government agencies as well as the private sector.
But digital transformation is not easy. It is not about simply digitizing things. It is about re-imagining how things can be done for the better, with technology as an enabler. Digitizing bad systems or processes just leads to bad systems or processes digitalized. Digital transformation therefore depends on and can only be as fast as process re-engineering and institutional and bureaucratic changes to overcome inertia.
Digital transformation must also be inclusive to avoid exacerbating digital divides or creating new ones.
The effort will be worth it. And the World Bank is firmly committed to scale up our support to the Philippines’ digital transformation agenda. A digital Philippines will not only be more resilient to future shocks – whether they are natural disasters or pandemics – but also be poised to take advantage of the opportunities brought by COVID-19 (shift of activities online) and those that lie ahead in the post COVID-19 world.
first published in The Philippine Star, via World Bank
Bringing “the people” back in: Forest Resources Conservation with Dr. Apichart Pattaratuma
With a lifetime dedicated to forest conservation, Dr. Apichart Pattaratuma reflected back on his career and what forest management means to Thailand. In the year 1978, he received the prestigious United Nations and Ananda Mahidol Foundation Scholarship to attain higher education at the College of Forest Resources, University of Washington, Seattle, USA. After graduating in the year 1985, he returned to Thailand with a commitment to teach and research at the Department of Forest Management, Faculty of Forestry, Kasetsart University until his retirement with full professor position. The excerpts below encapsulated a conversation between Dr. Pattaratuma and Dr. Rattana Lao on forest conservation.
Beyond the classroom: An anthropological perspective
I dedicated my life to study the anthropological aspect of forest management to His Majesty King Bhumibol Aduyadej of Thailand. I studied cultural dimensions of forest management in many areas of Thailand. I began with Huay Hin Dam with Karen hill tribe (Pra-ka-ker -yor) Suphanburi Province. I tried to review the international literature on land use and combine it with in-depth interviews with the hill tribes to understand the cultural dimensions of their livelihoods. I observed how they built their houses and how their managed their forest. There are three characteristics of the Karen tribe. Firstly, they lived on small plots of lands and their houses are very small. Secondly, they conserve their forest land with water resources. Thirdly, they refrain from using pesticides. Culturally, there is a clear division of labor amongst men and women. While men will clear the lands, women will cultivate agricultural goods such as papaya, guava and banana. There is limited drugs use.
It’s liberating to do research beyond the classrooms. To observe real live, real changes. I learnt more than I set out to do and they are all interrelated to a bigger picture.
Intersectionality between culture, migration and forest management
Karen hill tribes migrate in a cluster. There are more than 3 families migrating together to the new fertile forest land. They will migrate together when land is exhausted. This is most evident in the borderland between Thailand and Myanmar. Back then they did not have official documentation but slowly they do. There has been an influx of hill tribes from Myanmar to Thailand due to political conflicts from Myanmar. From my observation, they are very conscious about forest conservation and resources management. They said: “no forest, no water”. They are compelled to protect the forest from pesticides in order to keep the water clean and their health well. They are very logical. Although they grow rice, it’s very subsistent and only for household consumption. They don’t grow rice for commercial purpose. This is the land use for Karen hill tribe.
I also studied in Kampeangpetch, Nan, Chiang Rai, Phrae and Lumphun. Each place is diverse and the situation is really different. Some local tribes are preserving of the forests, others are more detrimental. We need an in-depth study to understand the cultural dimension of land use for each tribe.
The heart of forest management
People. It’s the people. People must particulate in the forest management. Otherwise, it is very difficult. When we go into each location, we must approach people and bring them into the conversation. I have tried to do all my life. Civil servants must approach people, not other way around. People are looking up to our action. They look into our sincerity and commitment. If they see that we are committed to study about their livelihood, they will share the right information and they will help.
Indonesia is a good example of successful forest management. The state get people involved. In every kilometer, there are four actors involved in protecting the forest: soldiers, policemen, villager and forester. They help each other protecting the wildlife and forest resources.
Can legal change help the people?
Legal relaxation can help lessen the pressure between man and forest. Before the legal requirement was very strict. Any kind of forest intrusion would be caught including small hunters gatherers. I think that is too strict. That put people against the law. People should be able to go into the forest and pick up some mushroom and bamboo and some wild products to lessen their poverty and hunger.
As long as people are still hungry, it’s very hard to manage the forest. There must be a way to balance the two: people livelihood and forest management.
Much of the legal attention is paid to small farmers use of the forests. However, the real issue is big corporations invade the forest. This is very significant. Deforestation happens mostly from large scale corporation rather than small scale farmers. There are many loopholes in the system that lead to systemic corruption and mismanagement of land use. Many wealthy houses are built on large scale timber to exemplify wealth and status. It saddens me.
Would the next generation get to see large tree in the forest?
What can we do to protect the forest?
There are many organizations that responsible for the forest protection such as Royal Forest Department, Department of National Parks, Wildlife and Plant Conservation and Department of Marine and Coastal Resources. But the manpower are not sufficient to cover the large area of forest in Thailand. There are not enough permanent manpower to go on the ground and protect forest resources, while the intruders to National Parks are equipped with more advanced weaponry.
To protect the forest, the state must be committed and the people must participate in the process.
Possibilities for a Multilateral Initiative between ASEAN-Bangladesh-India-Japan in the Indo-Pacific
In the Indo-Pacific context, there are multiple partners all aiming for economic fulfillment along with maritime security and safety. Countries ranging from the Indian Ocean to the South China Sea seem to be more worried about the freedom of navigation and overflight as Chinese aggressiveness is rampant and expansionist is a scary idea. The region from India to Bangladesh has a huge potential of interconnectedness and if connected to the Southeast Asian countries, it would also help in India’s Act East Policy and India’s neighbourhood first policy and further help out in strengthening relations to the far East as in Japan. All these countries combined can create an interconnected chain of mutual and common interests with balanced ideas of economic, military, social, political and people to people exchanges which would in turn help develop a multilateral.
Who can lead this Multilateral Initiative and Why?
Japan can be the prime crusader for this multilateral as it has excellent relations with all the parties and is the pioneer of the free and open Indo-Pacific. Japan has excellent diplomatic, economic and infrastructural relations with all the possible partners as it provides ODA loans, aid and assistance. Japan being the pioneer of Free and Open Indo-Pacific can be guiding force for this multilateral in the maritime domain which would help create a new regional grouping consisting of South Asia and Southeast Asia primarily based on maritime. Japan is the only developed country among all the other players and with its expertise, it can surely guide, help, support and take along all the countries. Japan most importantly is a non-aggressive nation and believes in mutual respect unlike China. Japan has no dept trap issue unlike China. Japan is known for quality in infrastructural development and with their expertise in science, technology and innovation can well lead these countries. Japan’s reputation of honesty, no corruption and extreme detailed paper work is commendable.
What are the benefits from this Multilateral Initiative?
This multilateral would help connect the Indian Ocean (India) to Bay of Bengal (Bangladesh) to the South China Sea (ASEAN) and the East China Sea (Japan)- would help in the creation of water interconnected network from South Asia to Southeast Asia. This could be the first regional maritime grouping covering South Asia to Southeast Asia. This maritime grouping can create a network of ports which could also become an economic hub and intersecting points of investment and infrastructural development (already Japan is investing in a big way in all these countries). India’s Northeast would get a greater economic, infrastructural and people-to-people exchange as it would connect India to Bangladesh and Myanmar. Mekong Ganga Economic Corridor already exists and could pave the way for Bangladesh and Kolkata greater port exchange which could be developed as nodal points in Bay of Bengal and would help in easy and cheaper freight. These countries can also aim for the strengthening of defence and security relations in the domain of maritime and can also aim for a logistics support agreement and a network from Indian Ocean to Bay of Bengal to South China Sea to East China Sea and would help tackle Chinese aggressiveness and China has been mapping the waters in all these waters and so, to protect one’s territorial sovereignty and integrity, defence relations must be build.
An ecosystem based on Digitalization, Science, technology and Innovation can be formed which would help create a united cyber security law and all this could ultimately lead to the 4th Industrial Revolution. South Asia and Southeast Asia would be lucrative markets and labour distribution and generation of employment can be done through the ports, logistics network, economic and trade exchanges and interactions. This multilateral would form a resilient supply chain in the region of South Asia and Southeast Asia in the domain of Indo-Pacific. Marine economy can be a major factor of this multilateral initiative as it would be a major success in the maritime domain. This multilateral can also work on vaccine diplomacy and work on future health hazards mechanisms.
Why Bangladesh must think of adopting the Indo-Pacific Strategy?
Bangladesh must adopt the Indo-Pacific strategy and create its own objects and call it the SAMODHRO NITI. Bangladesh has the capability of being an excellent maritime power and it is a major leader in the Bay of Bengal and to be an effective part of this multilateral. The Bay of Bengal Industrial Growth Belt (BIG-B) would be a key binder. Bangladesh must realise that China by building dams on the Brahmaputra River would actually create issues for Bangladesh’s fishery catchment areas as it would get inundated with salt water and to stop that Bangladesh must work to strengthen its position to tackle China. Also, China could also create water issues for Bangladesh and Bangladesh must look at ways to safe guard its water resources. Thereby, Bangladesh must work towards countries who face similar issues with China. The Indo-Pacific Economic Corridor is an excellent example of cooperation but this Multilateral if formed can be a stronger initiative and Bangladesh benefits from it as being a hub of textile, leather and pharmaceuticals and this Multilateral has all the efficiency of becoming an economic hub which would benefit Bangladesh too. If Bangladesh adopts an Indo-Pacific Policy, then its market in Japan, the US and Europe would become stronger due to shared interests and can also sign a Free Trade Agreement with EU like Vietnam did.
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