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NEWS FLASH

New Korea, Colombia, And Panama Trade Agreements Advance In Senate And House | This evening, the House of Representatives voted to advance trade agreements with Panama, South Korea, and Colombia. The vote for the Colombian trade agreement was most contentious, with all but 31 House Democrats voting against the agreement and only 9 Republicans voting “no.” As of this writing, the Senate has also voted to approve both the Panama and Colombian trade agreements, with 66 senators voting in favor of the Columbian agreement and 77 senators voting in favor of the Panama agreement.

Climate Progress

September 22 News: Is America Prepared for a Cuban Deep Water Drilling Disaster?


Is the White House ready for a Cuban deep water drilling disaster?

The good news? Cuban energy officials are taking the lessons of the BP oil spill disaster very seriously, according to a group of oil drilling and environmental experts just back from Cuba, including the co-chairman of the Bipartisan National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling (also former EPA administrator), the head of the International Association of Drilling Contractors, a former senior executive for Royal Dutch Shell, and a longtime Cuba expert with the Environmental Defense Fund.

The bad news? Less than three months before deep water drilling begins in Cuban waters in the Gulf of Mexico, neither Congress nor the Obama administration has taken the necessary steps to help prevent or respond to a similar disaster that could impact even more US coastline. Granted, it seems a bit far-fetched to imagine the present Congress sending any legislation to the president these days, so the burden of preparedness essentially rests with the administration.

That’s got CNN’s Fareed Zakaria wondering, “What in the World?”

Read more

Economy

Not Content With Obstructing Trade Assistance, GOP Congressman Now Trying To Repeal It Altogether

Rep. Dennis Ross (R-FL) wants workers who lose their jobs due to trade to go unhelped.

This past February, House Republicans allowed an expansion of the Trade Adjustment Assistance (TAA) program to expire. TAA is designed to help workers who lost their jobs due to trade agreements. Since then, the House GOP has been demanding that President Obama submit three new trade agreements for passage before a vote is held on TAA renewal.

But last week, Rep. Dennis Ross (R-FL) went one step further, introducing H.R.2165, which would abolish the TAA program entirely:

“It is near impossible to determine whether someone lost their job due to free trade,” Ross has said. “A government handout, borrowed from China, as a bone to Big Labor, won’t create a single job and is a needless distraction.” He also said trade assistance is “a federal wealth-redistribution program that has no business existing in a free society.”

Nearly 300,000 workers were aided by trade assistance in 2009. According to the Economic Policy Institute, the Korea-U.S. free trade agreement alone would cost 159,000 American jobs.

Yglesias

Japan-Korea Defense Cooperation

Japanese Defense Minister Toshimi Kitazawa

If you look at the region in very abstract terms, close defense cooperation between South Korea and Japan seems like a no-brainer. In practice, however, the relationship between the two countries is actually quite chilly, as detailed in Chico Harlan’s article about efforts to increase defense and intelligence cooperation between Tokyo and Seoul.

The difficulties are attributed largely to the fact that Koreans, especially older ones, feel “intense bitterness over the 35-year Japanese occupation of Korea that ended in 1945.” That’s quite understandable. It’s also the case, however, that if you look at 20th century Europe, the practical imperative to move forward with defense cooperation served as an important driver of reconciliation between Germany and its neighbors.

The danger here for the United States is that while it’s obviously good for our two main allies in the region to cooperate, especially vis-à-vis the DPRK, I don’t think we really want to become the offshore sponsors of an anti-Chinese military alliance. One can easily imagine some future state of the world in which it does make sense for the US to be the patron of a grouping like that, but one can also easily imagine steps in that direction becoming self-fulfilling. Our main concrete interest in the area is simply that war and destruction in Northeast Asia would be very economically disruptive. We want to be preventing trouble, not starting it.

Yglesias

Alzheimer’s in South Korea

Pam Belluck offers a South Korea story that’s not all about the confrontation with the DPRK:

South Korea is training thousands of people, including children, as “dementia supporters,” to recognize symptoms and care for patients. The 11- to 13-year-olds, for instance, were in the government’s “Aging-Friendly Comprehensive Experience Hall” outside Seoul. Besides the aging simulation exercise, they viewed a PowerPoint presentation defining dementia and were trained, in the hall’s Dementia Experience Center, to perform hand massage in nursing homes.

“ ‘What did I do with my phone? It’s in the refrigerator,’ ” said one instructor, explaining memory loss. “Have you seen someone like that? They may go missing and die on the street.”

As is often the case, I think too much of the discussion in the United States about population aging is about the purely budgetary aspects of it. More elderly people plus a commitment to give money to elderly people = higher taxes or benefit cuts. True enough, but the harder questions concern real resources. More people with the distinctive problems of the elderly, and more need to find better ways of coping with them.

Yglesias

What Price Cabbage?

I’ve been reading stories about the skyrocketing cost of kimchee—given by rising prices for napa cabbage—for a couple of weeks now. And I think it’s a sign of how screwy policies toward agricultural trade are that it’s only as of yesterday that “the government has suspended tariffs on imported cabbage and radishes from China.”

Of course the good people of South Korea might want to reconsider the whole idea of sales taxes on Chinese vegetables on a permanent basis. This is a regressive tax on the poorest South Koreans, it disadvantages super-poor Chinese farmers relative to their richer South Korean counterparts, it promotes an inefficient allocation of labor and land resources in South Korea, does nothing for public health, etc.

Meanwhile, though America’s sales taxes on foreign-grown food are lower than those prevailing in most of the developing world we’re not entirely free of this kind of bone-headed policymaking ourselves.

Security

Managing Tensions On The Korean Peninsula

Our guest bloggers are Winny Chen, a Policy Analyst and Manager of China Studies, and Anne Paisley, an intern with the National Security and International Policy Team at the Center for American Progress.

China-North.KoreaEarlier this week, the United States announced additional sanctions aimed at cutting off funding to North Korea’s nuclear program and its affluent ruling class. The effectiveness of the sanctions will depend significantly on cooperation from China, which supports North Korea’s struggling economy and denies the international investigation that blamed North Korea for the sinking of the South Korean warship Cheonan last March. China, South Korea and the United States all support regional stability, but differences on how to respond linger, as another act of aggression from Pyongyang potentially looms over the region. The United States must make clear that stability is a responsibility of all parties in the region, and it should continue to push hard for China’s support of sanctions in order to prevent another provocative move by North Korea.

Pyongyang’s aggressive behavior demanded a strong international response, which unfortunately China blocked using its permanent position on the United Nations Security Council. The U.N.’s watered-down statement in July condemned the sinking of the Cheonan but did not specifically blame North Korea, which Beijing and Pyongyang viewed as a “great diplomatic victory.” In the absence of a robust international response, the United States stepped up its presence in the region last month by conducting joint military exercises with South Korea and reestablishing ties with Indonesia. North Korea vowed a “physical response” to the joint military exercises in the Sea of Japan, but by the end of the drills on June 28, North Korea had not followed through on its threats and even signaled that it may be interested in returning to six-party talks on its nuclear program, though doubts remain about Pyongyang’s true commitment to talks.

While Washington and Beijing both want regional stability, the two countries disagree on how best to achieve it in the aftermath of the Cheonan sinking. The Obama Administration has adopted a three-part strategy for dealing with North Korea — engaging the U.N., strengthening our alliance with South Korea and targeting North Korean leadership responsible for aggressive behavior and nuclear proliferation through sanctions. As part of that plan, Washington imposed economic sanctions on North Korea to block money that could be used for missiles and nuclear bombs and to keep money from Pyongyang’s wealthy ruling class.

China, on the other hand, wishes to preserve North Korea as a buffer state between itself and South Korean and U.S. troops stationed along the North and South Korean border, so it remains reticent on taking measures against its ally. Beijing also fears that sanctions could cause Pyongyang to collapse and a failed North Korean regime would send thousands of refugees into Northern China. China ultimately did not support international sanctions against the North in order protect its own borders and security concerns and prevent a potential humanitarian crisis on the peninsula.

This poses a significant challenge, as China’s cooperation is vital for the sanctions to be effective in North Korea. China’s refusal to support strong U.N. actions against North Korea or to take any meaningful actions against its rogue neighbor is a step back from the responsible positions China had taken in the last year, such as passing and enforcing sanctions on North Korea and allegedly denying Kim Jong-Il’s request for aid after North Korea shot ballistic missiles over South Korea in 2009. Some analysts surmise the North is planning more missile tests and a strong response is needed now to deter more provocative acts from the peninsula and to prevent an escalation. The U.S.–South Korea joint military exercises are a good start, but more is needed on the Chinese side.

Convincing China to pressure Kim Jong Il’s government is a challenging task for the Obama administration, especially as U.S. involvement in the South China Sea and Korean Peninsula continue to irritate U.S.-China relations. China holds strategic and diplomatic clout over the struggling country but does not see North Korean de-nuclearization as essential to global or even regional stability, as the United States does. Nonetheless, the United States must continue to its diplomatic and military presence in the region to press Beijing to return to a responsible path regarding North Korea. The United States must make clear that preservation of stability in region is the responsibility of all parties, and that it hinges in large part on China’s willingness to support sanctions.

The Obama Administration has not given up hope of achieving regional stability through the resumption of the Six-Party Talks. Secretary Clinton has stated that if North Korea could commit to de-nuclearization, the “door remains open for North Korea.” For the talks to resume, the North Korean government would have to halt its provocative behavior, agree to comply with international law and end belligerence towards its neighbors. China has argued that the issue must be solved through “peaceful measures and direct talks” between North and South Korea, yet it prevaricates on a response. And that benefits no one in the long-run.

Yglesias

Planning for a North Korean Collapse

File:Flag of North Korea 1

I wouldn’t try to make a prediction about the likely future course of North Korean affairs, but clearly the state could collapse rather suddenly which raises the question of what would happen next. Minxin Pei says the world is unprepared:

What is most worrying about a possible North Korean collapse is that the key players in the region are not talking to each other, even informally, about such an eventuality. It’s almost certain that these powers—China, the United States, Japan, South Korea and, possibly, Russia—have all drawn up their own contingency plans for Pyongyang’s quick collapse. However, they’ve done nothing to explore a collective response to what is without doubt a geopolitical game-changer.

It seems to me that if there were such talks they would be secret and not just “informal” so it’s hard to know if this is right. But I agree with Robert Farley that in many ways the harder case is if the DPRK doesn’t collapse, but instead finds itself with a post-Kim leadership that just comes to the world hat in hand looking for help:

Collapse is certainly a possible outcome, but it’s also possible that the North Korean state could survive, at least for a while, under some sort of non-Kim military dictatorship. The attitudes of Seoul and Beijing would be particularly important in this respect; the health of a post-Kim North Korea would be greatly affected by China’s willingness to underwrite the regime, and by South Korea’s approach to manifesting claims on Korean national identity. In the German case, the Russians had no interest in continuing to prop up the Berlin regime, and West Germany was happy to advance the claim that it was the only legitimate German national regime. It’s also worth noting that nationalist sentiments could override such a pedestrian concern as the utter economic disaster that incorporating North Korea would wreak upon South Korea.

South Korean elites are certainly aware of how difficult German reunification proved to be and how much more difficult Korean unification would be. But I have no idea whether this is understood by a mass public in Korea or if there would be a strong initial drive to push for unification irrespective of the practical problems.

Yglesias

Average Internet Speeds

Akamai’s latest “State of the Internet” report is out. The news that average Internet speed in the United States lags behind many other countries should be familiar by now:

internationalspeed

In that light, it’s interesting to note that if you look at the world’s fastest cities the United States actually dominates. Here’s a list I made of the top ten cities:

fastest cities

The difference is that these are all relatively small places. The fifth, sixth, seventh, eighth, ninth, and tenth fastest internet cities in Asia are all in South Korea and they include places like Seocho-gu and Masan that have many more residents than Sandy or Charlottsville.

Also note that the generally prevailing speeds in the Northeast are higher and comparable to the faster European countries, though not to the fastest Asian countries:

staterankings

And just to reiterate, if population density and/or urbanization is the reason the US needs to be slower than Japan and Sweden you need to explain why internet speed in the District of Columbia is also slower than the internet in those countries.

Yglesias

The Long Road Back From Reunification

Had some conversations early today with a minister in the government of Saxony that touched on some of the economic difficulties inherent in the transition from being a province of East Germany to being part of the united Germany state. Viewed from one direction, the transition has been quite successful. The West Germans ponied up a huge amount of money to help do adjustments, and the Saxony government quite smartly spent the bulk of it on infrastructure investments—and you can really see very high-quality roads, transit, etc. in the parts of the province I’ve seen. Everything looks quite spic-and-span, even moreso in many ways than in richer parts of the country. And as a consequence, average incomes in Saxony are now around 70 percent of what’s found in the West compared to less than 40 percent at unification. And an unemployment rate of 16 percent (compared to 12 in the West) is way lower than the 25 percent or so that immediately followed reunification.

Another way of looking at it, of course, is that West Germany invested a ton of money, East Germany was fortunate to be integrated into a big capital-rich country with access to all the markets of the EU, and 20 years later there’s still much higher unemployment and much lower incomes.

What this makes me think of most of all is the dilemmas that will be facing the government of South Korea if the DPRK ever collapses. The DPRK is much poorer and more backwards than the GDR ever was. They’ve been separated for longer. South Korea is smaller relative to North Korea than West Germany was to East Germany. And South Korea is also poorer than West Germany. All told, I think there’s ample reason to believe that the South couldn’t really manage a reunification process. Which is something their government seems to realize without quite admitting—their official policy is reunification, but in practice they fear a DPRK collapse. And they’re right to fear it. But political debates about North Korea policy aside, the fact of the matter is that that horrible regime can’t last forever. And I think it would make sense for a broader international community to start thinking about what we can do to support a transition process that’s going to be too big a task for South Korea to shoulder on its own.

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