East By Southeast’s News Digest is back in business. A core group of the ExSE team has been busy this month working on setting up the IES Abroad Kunming Center, a study-abroad center for US College students located at Yunnan University. The center’s curriculum explores the deepening ties between China and Southeast Asia and delivers enrolled students 100 hours of Chinese language instruction per semester. The center opens for classes on Monday 9/2 and its staff and faculty are looking forward to a great semester with our inaugural group of new students.
Hopefully by the time we post the next weekly news digest, the ExSE will have undergone a complete facelift. The last five months have delivered a solid start – we’re averaging 70000 hits per month, and it’s time to make some much needed improvements on the way our content is displayed.
This week will also debut work by new ExSE bloggers – if you’d like to write for us, we’re recruiting! Contact us at eastbysoutheastmail@gmail.com.
CHINA
Wang Xiangwei–Myriad reasons behind transparency of Bo Xilai’s trial | South China Morning Post Before the leaders had set the trial date, Bo is believed to have written a lengthy letter to the Politburo, admitting to the three charges of bribery, embezzlement and abuse of power. He is said to have acknowledged that his misdeeds had tarnished the party’s image. The leaders are believed to have allowed such transparency of the proceedings partly because of Bo’s influence. Unlike other senior officials jailed for corruption, Bo is different. He is not only a scion of an elite Communist Party family but also seen as a flag-bearer of the leftist movement on the mainland
LA Times – Bo Xilai trial transcripts expose a privileged world of wealth The corruption trial of Bo Xilai is offering the world a peek past the vermilion walls of the Chinese leadership compounds and through the tinted glass of their motorcades into a private sphere of immense entitlement. It is a cross between reality television and a soap opera, though adapted for the 21st century with the transcripts being microblogged by the court and closely followed by hundreds of thousands of Chinese.
China Watches a Trial Unfold on Social Media – NYTimes.com The spectacle was a demonstration of how important the Internet has become in Chinese political life. For the government, it potentially offers a tool to monitor and persuade a population jaded with traditional, state-run media. By midyear, China had nearly 600 million officially registered Internet users. Even discounting duplicate and fake registrations, the number is a daunting challenge for a state that prizes its grip over information.
Bo’s trial ends, verdict to be announced later The trial of Bo Xilai, charged with bribery, embezzlement and abuse of power, concluded at 1:04 p.m. Monday at Jinan Intermediate People’s Court. The verdict will be announced at a date yet to be decided. On Monday morning, prosecutors summarized their case and demanded a heavy sentence for Bo, while the defendant made a 90-minute statement denying the charges. His lawyers also made defending statements.
Beijing’s New Tough Security Boss Cracks Down on Internet Rumors-Caijing The arrest of two Internet sensations who made names by cooking up rumors has unveiled a broad political campaign against rumor mongers, the second day after the appointment of a new deputy security minister. Local police authority in Beijing has detained four employees of an Internet marketing company, two of which are the so-called grassroots web celebrities under the handles of “qin huohuo” and “li’ er chai si” on the country’s most popular micro-blogging platform Weibo, according to the party’s mouthpiece newspaper the People’s Daily. In order to gain more popularity, the two web celebrities, identified by their surname of Qin and Yang, have resorted to creating and designing market buzz by minting and spreading more than 3,000 rumors.
China 7.5% Target Seen in Reach as U.S. Demand Picks Up: Economy – Bloomberg China will achieve the government’s 7.5 percent growth target this year as the world’s second-biggest economy stabilizes after a two-quarter slowdown, a Bloomberg News survey of economists indicates….The poll of 52 analysts, conducted from Aug. 15 to Aug. 20, points to China maintaining that pace of expansion in 2014. The survey also suggested that the central bank will widen the yuan’s trading band before year end.
China’s Lofty Goals for Shale Gas Development Just Pipe Dreams, Experts Say – Caixin Lack of innovation, technology and capital likely mean that the ambitious targets set for the next few years are not attainable
CPC’s November meeting to discuss deepening of reform – Xinhua Deepening reform in an all-round way concerns the overall work of the Party and the government, and is the requirement for building a moderately prosperous society, speeding up socialist modernization drive, developing socialism with Chinese characteristics, addressing prominent challenges in the development, and achieving sustainable, healthy development of the economy and society, said the statement. “Reform and opening up serve as a critical strategy to determine modern China’s destiny and rejuvenation of the Chinese nation. There should never be an end to the practice and development, emancipation of the mind, and reform and opening up,” said the statement.
What Can China Learn From Unrest in Egypt? – Bloomberg On Friday, Mao Xiaogang, a columnist at the centrist, Communist Party-owned Beijing Times newspaper, wrote a piece ostensibly about Egypt. And yet seemingly tucked within it was his espousal of the Communist Party’s longtime justification for its emphasis on stability preservation: sustained economic growth. “Without social stability it’s impossible for a country to develop its economy and its people to live in peace and contentment,” he wrote. “The words ‘Maintaining stability is a top priority’ aren’t empty. The status quo in Egypt makes people realize the value of stability.”
Latest Congressional Research Service (CRS) Report—Ronald O’Rourke, “China Naval Modernization: Implications for U.S. Navy Capabilities—Background and Issues for Congress” | Andrew S. Erickson Potential oversight issues for Congress include the following: whether the U.S. Navy in coming years will be large enough to adequately counter improved Chinese maritime anti-access forces while also adequately performing other missions of interest to U.S. policymakers around the world; the Navy’s ability to counter Chinese ASBMs and submarines; and whether the Navy, in response to China’s maritime anti-access capabilities, should shift over time to a more distributed fleet architecture. …
China Rethinks Deals for Resources – WSJ.com China has plowed $226.1 billion into outbound mergers and acquisitions to grab a slice of global resources since 1995, about a quarter of which was in the mining sector, according to data provider Dealogic. But people inside and outside the government say Beijing is taking a more careful look at projects. “The government still encourages ‘going out,’ ” said Jin Bosong, deputy director of the Ministry of Commerce’s International Trade and Economic Cooperation Research Institute. “But now the emphasis is to make companies ask questions like: ‘Can the project make money?’ ” he said.
Charlene Chu: In 5 Yrs China Replicated Whole US Banking System Charlene Chu: A crisis is certainly not pre-ordained. China has some unique features that mitigate some of these risks and contribute to a more stable environment than in other emerging markets. Specifically, China’s financial sector is funded primarily by domestic deposits, so there isn’t that reliance on overseas or FX funding that exists in Eastern Europe or was present in some of the Asian countries in the ‘90s. China also has a closed capital account, which means that savings are captive in the domestic financial sector. In addition, we have a system dominated by state owned banks lending to state-owned companies. In that climate, everyone is part of one big family, so there’s more tolerance for non-payment, forbearance, etc. The Chinese government also is very active behind the scenes – both at the local and central levels – whenever small fires appear to prevent them from spreading, for example, a guarantee company blowing up or a trust product defaulting. In the end, all of this contributes to a more stable financial environment. That’s the advantage. The disadvantage is it allows this unhealthy, imbalanced dynamic to go on longer and further than it would in other countries.
China, US conduct joint anti-piracy drill in Gulf of Aden – Xinhua Chinese and U.S. soldiers participate in the counter-piracy exercise on the missile destroyer “Harbin” of Chinese navy in the Gulf of Aden, Aug. 25, 2013. The Chinese and U.S. navies conducted a joint counter-piracy exercise in the Gulf of Aden on Saturday and Sunday.
Foreign Policy by Whisper and Nudge – NYTimes.com “We now use 60 percent less energy per unit of G.D.P. than we did in 1973,” explained the energy economist Philip Verleger. “If the trend continues, we will use half the energy per unit of G.D.P. in 2020 that we used in 2012. To make matters better, a large part of the energy used will be renewable. Then there is the increase in oil and gas production.” In 2006, the United States depended on foreign oil for 60 percent of its consumption. Today it’s about 36 percent. True, oil is a global market, so what happens in the Middle East can still impact us and our allies. But the urgency is gone. “The Middle East is China’s problem,” added Verleger.
Debt Drags on China’s Growth – WSJ.com There are few signs of imminent crisis. Bad debt levels in China’s banks are low. A high savings rate means bank deposits continue to accumulate, and a tightly controlled capital account makes it hard for funds to go anywhere else. And Beijing has multiple tools to manage problems. In many cases, lenders and borrowers are both state-owned. Central government debt is low. Even without a crisis, though, rising costs of repayment still threaten to choke growth, already testing a 20-year low…”It’s a debt trap, firms will have to borrow more and more just to repay loans,” said Wei Yao, China economist at Société Générale, whose own calculations put the cost of servicing China’s debt at around 38% of GDP at the end of 2012.
China environment min suspends some approvals for Sinopec, CNPC – SCMP China’s environment ministry will stop approving some new refining projects or the expansion or renovation of existing facilities by the country’s top state-owned oil firms after they failed to meet key pollution targets last year, it said on Thursday.
Three top PetroChina executives investigated over corruption – SCMP A high-level government probe into corruption at China’s leading oil and gas firm widened on Tuesday, with three additional senior officials at the state-run giant being investigated over alleged breaches of discipline.
More Megaprojects? What China’s Rebalancing Means for Asia – The Diplomat The China boom has changed far more than China itself: its impact has been felt right across the global system, from the wealthiest states to the poorest. But for China’s neighbors, there has been a particular implication—an opportunity for relatively poor economies to develop themselves, to a greater or lesser extent, in China’s own image. The megaproject is the pièce de résistance of the Chinese development model: huge dams, high-speed rail networks, highways, mines, ports—anything so long as it’s big enough to resonate with vision and prowess. China has given other countries in the region, especially those in developing South and Southeast Asia, the chance to have their own impressive Chinese-style infrastructure or to tap once-unreachable resources by providing the money, the expertise, and in many cases the labor needed to deliver projects way beyond the capacity of the recipient countries.
CHINA AND THE WORLD/REGION
Sino-Burmese trade zone displacing Myanmar farmers – GoKunming Real estate speculation by mainland Chinese companies and individuals has become a common occurrence in cities from Hong Kong to Sydney. A similar phenomenon — but one tainted by forced relocations — is now occurring in a little-known but strategically important Burmese village bordering Yunnan. Many locals in Muse, across the border from Ruili are growing resentful, angered by what they see as a naked land grab.
Chinese president to visit central Asian nations – Xinhua Chinese President Xi Jinping will pay state visits to Turkmenistan, Kazakhstan, Uzbekistan and Kyrgyzstan from Sept. 3 to 13, a Foreign Ministry spokesman announced on Monday. Xi will visit at the invitation of Turkmenian President Gurbanguly Berdymukhamedov, Kazakh President Nursultan Nazarbayev, Uzbek President Islam Karimov and Kyrgyz President Almazbek Atambaev, spokesman Qin Gang said in a statement. Xi will attend the eighth Leaders’ Summit of the Group of Twenty (G20) to be held in St. Petersburg from Sept. 5 to 6. He will attend at the invitation of his Russian counterpart, Vladimir Putin, said Qin.
Xi wants ASEAN’s understanding of China – Xinhua Chinese President Xi Jinping on Monday called for understanding and support from the Association of South East Asian Nations (ASEAN) on China’s major concerns while meeting with Singaporean Prime Minister Lee Hsien Loong in Beijing. Lee is on an official visit to China from Sunday till Saturday at the invitation of Chinese Premier Li Keqiang.
Brics Nations Broadly Agree on Capital Structure of Joint Bank – WSJ.com Officials from Brazil, Russia, India, China and South Africa have agreed to set up the bank with a total capital of $50 billion, shared equally among them, the Indian government official told The Wall Street Journal Wednesday. This decision, which the official said was taken at a meeting in New Delhi in the first week of August, means the nations will have equal control over the proposed bank. This will likely end disagreements over funding and management of the bank as China had earlier proposed a $100 billion capital and sought a bigger share.
Analysis: China has much at risk but no reach in Middle East | Reuters The worsening Syria conflict has exposed an uncomfortable truth behind China’s cherished policy of non-interference: Beijing cannot do much to influence events even if it wanted to. With weak and untested military forces unable to project power in the Middle East, China can only play a low-key role in a region that is crucial for its energy security.
TWQ: Double Trouble: A Realist View of Rising Chinese and Indian Power – Summer 2013 By George J. Gilboy and Eric Heginbotham-JUL 1, 2013-An objective assessment reveals that India, simply because it is a democracy, will be no less likely than China as a rising power to pose significant challenges to U.S. interests. While Washington has basically gotten its China policy right, a new approach to India is needed.
China snubs Philippine president over visit to Nanning expo – SCMP China has asked Philippine President Benigno Aquino to postpone a visit next week for the opening of a trade fair, Manila said yesterday, an unprecedented snub by Beijing as relations sour over territorial disputes in the South China Sea.
History the Weak Link in Beijing’s Maritime Claims – The Diplomat Beijing’s claims to nearly all of the South China Sea are now embossed in new Chinese passports and official maps. Chinese leaders and foreign ministry spokespersons insist with increasing truculence that the islands, rocks, and reefs have been China’s “territory since ancient times.” Normally, the overlapping territorial claims to sovereignty and maritime boundaries ought to be resolved through a combination of customary international law, adjudication before the International Court of Justice or the International Tribunal for the Law of the Sea, or arbitration under Annex VII of the United Nations Convention on the Law of the Sea (UNCLOS). While China has ratified UNCLOS, the treaty by and large rejects “historically based” claims, which are precisely the type Beijing periodically asserts. On September 4, 2012, China’s foreign minister, Yang Jiechi, told then U.S. Secretary of State Hillary Clinton that there is “plenty of historical and jurisprudence evidence to show that China has sovereignty over the islands in the South China Sea and the adjacent waters.”
The Deep Sea Resources Rush – The Diplomat Insatiable demand for minerals and rare earth elements, coupled with dwindling resources on land have stakeholders across the world looking to a new frontier: the deep sea. Advancing mining technologies are making the prospect of exploiting seafloor minerals—including gold, copper, zinc, cobalt and rare earth elements (REEs)—not only possible but also imminent, with commercial licenses to be granted by the International Seabed Authority from 2016. China has a stronghold on REEs, controlling a staggering 97% of global production. These finite elements and other precious minerals are used in the creation of a massive range of electronics devices, emerging green technologies and weapon systems, triggering a strategic scramble to exploit new sources.
China’s sea islands monitoring on trial run – Xinhua Within the system, various marine surveillance agencies are interconnected, information is promptly updated and law enforcement archives are being computerized, the State Oceanic Administration (SOA) announced on Friday.
China less than enthusiastic to Indian proposal on water issue – Economic Times India today elicited “less than enthusiastic” response from China on its proposal to have a separate mechanism to deal with water issues amid its continued concerns over Chinese damming activities on Brahmaputra. During the 5th round of India-China Strategic Dialogue, the Indian side led by Foreign Secretary Sujatha Singh raised the issue of its proposal pending with China to have either a water commission or an inter-governmental dialogue to deal with water issues.
Taipei rejects, and analysts doubt, report US would consider grand bargain on Taiwan arms sales | South China Morning Post Pro-Beijing Hong Kong newspaper Wen Wei Po also quoted Guan as saying that Chang had proposed to the US that in return for its stopping the sale of arms to Taiwan, Beijing would consider “adjusting its deployment of missiles”, a phrase generally interpreted as the removal of missiles aimed at Taiwan from coastal areas. Similar suggestions were put to US President Barack Obama by President Xi Jinping during a June summit in California. The reports triggered a strong reaction from Taipei. Foreign Affairs Ministry spokeswoman Anna Kao said the US had refuted the mainland media reports and remained committed to the Taiwan Relations Act (TRA).
Western-funded green groups ‘stir up trouble’ in China | South China Morning Post Two studies, part of a Chinese Academy of Social Sciences annual report on co-operation and development in the Greater Mekong sub-region, admitted that agricultural, mining and hydro projects with Chinese investment had caused adverse environmental impact in countries including Myanmar, Laos and Cambodia…But international environmental groups working in the region, most of which receive funding from Western countries, were also “irresponsibly attacking Chinese investors and misleading local communities with biased reports”, aimed at limiting China’s economic influence in the region, the studies said.
REGION
12 Things to Know: Asia’s Financial Sector – ADB Since the Asian financial crisis, the financial sector in the region has become more resilient. Yet the challenge of ensuring stability amid market volatility remains. Here are 12 things to know about financial sector development in Asia and the Pacific.
Asia Eyes The Arctic – The Diplomat In May this year, Japan, China, India, South Korea, Singapore and Italy were admitted as permanent observers to the Arctic Council—a forum bringing together the eight Arctic member states (United States, Canada, Norway, Denmark (via Greenland), Russia, Sweden, Finland and Iceland), indigenous Arctic populations, and other interested parties to discuss a range of issues posed in this unique region. Formed in 1996, the Council and its work has been attracting growing worldwide attention in the wake of the record low levels of sea ice coverage documented in the summer months of 2007—a record which itself was broken last year. That five of the six new observers to the Council are Asian states reflects two developments: first, the great interest of these states in the commercial opportunities made possible by a transformed Arctic region; and second, the Council’s need to reinforce its position as the preeminent body for the discussion of Arctic matters. Taken together, these developments suggest that the future of Arctic affairs, both inside and outside the Council, is likely to be far more complex and far more influenced by Asian actors than has been the case to date.
The Great Potash Power Play – The Diplomat Potash is perhaps the world’s most strategic fertilizer. Mineable deposits are concentrated in a handful of countries, it cannot be synthesized, and crop yields suffer badly without it. Russia-based Uralkali, the world’s largest potash producer, turned the global potash market on its head when it announced in late July 2013 it would market potash independently and stop selling through the Belarus Potash Company (“BPC”) marketing structure it previously used to coordinate exports and production. Prior to Uralkali’s move, two major global marketers—BPC and Canada’s Canpotex—controlled around 70% of potash volume traded worldwide, which helped constrain supply and keep prices high.
Apportunity knocks – SEA Globe The increasing digitalisation of Southeast Asia is creating greater opportunities for startups, although it is foreign entrepreneurs who are leading the pack. With great prospects for growth and untapped demand, Southeast Asia’s little-explored digital startup scene is proving fertile ground for Western entrepreneurs.
Home gardens: eat what you sow and sell the surplus – The Guardian How a cheap and simple idea is empowering millions and improving food security in developing countries Could global food security be achieved by growing tomatoes up a wall and pumpkins on a rooftop? It sounds unlikely, but food security isn’t just about full stomachs. Adequate nutrition is also crucial, and helping women in particular to run productive home gardens could save millions of lives in developing countries. Research published by The Lancet just ahead of the Nutrition for Growth summit in June revealed that malnutrition kills 3.1 million children annually, and caused stunting in 165 million in 2011. Micronutrients such as vitamin A, iron and zinc are essential, particularly in the first few years of life, and it is women who tend to be responsible for feeding families.
Coalition vows to lead G20 in new rainforest protection strategy – The Guardian Christine Milne calls pledge ‘a joke’ given commitment to remove world heritage listing for parts of Tasmania’s forests. The Coalition has pledged to lead the G20 in a new global rainforest protection strategy – despite committing itself to taking the unusual step of removing a world heritage listing for parts of Tasmania’s forests. Greg Hunt, the Coalition’s environment spokesman, told Guardian Australia that, if elected, he wanted to help cut by 50% the 8bn tonnes of annual CO2 emissions caused by deforestation.
BURMA/MYANMAR
Regulating Myanmar’s press: Bad news – The Economist THE news-stands that share the pavements with betel-nut hawkers and tea stalls in central Yangon display an impressive array of publications feeding a market starved for decades of independent news. The political changes in Myanmar over the past two years have led to an explosive growth of the press, with seven new dailies alone. Official censorship has ended.But the process of changing the laws that have curbed press freedom since 1962 remains bumpy. It hit a new rock on August 12th when the information minister, Aung Kyi, outlined his vision for the media. For an unspecified period, he argued, Myanmar needs “a socially responsible media code”, with the government as a regulator.
1988: Forgive and forget? – DVB Twenty-five years ago, the streets of Rangoon were spattered with blood. The pro-democracy uprising, known as 8-8-88, continues to haunt Burma’s history. Over 3,000 peaceful protestors were massacred by the military regime when commanders were ordered to shoot to kill. Thousands more were tortured and jailed. But as Burma slowly moves towards democracy, activists have found themselves asking: Is it time to forgive and forget? Earlier this month, thousands gathered at the Myanmar Convention Centre in Rangoon to pay tribute to the victims of the student-led uprisings. The staging of the event itself is a sign of Burma’s dramatic democratic transition, which has seen political prisoners freed and censorship reduced.
US to boost military ties with Burma, but warns of N Korea connection – DVB The United States has vowed to strengthen its military relationship with Burma, shortly after issuing another warning to Naypyidaw that it must sever its defence ties with North Korea. US Ambassador Derek Mitchell met with the head of Burma’s armed forces Min Aung Hlaing in the Burmese capital this week to discuss legal practices in military combat. Burmese state media described the meeting as a “cordial” effort to strengthen defence relations between the two countries, emphasising the army’s “important role” in Burma’s democratisation process.
Parliament calls for land grab recommendations to be expedited – DVB Burma’s Union Parliament on Thursday urged the government to expedite procedures which will allow confiscated farmland to be returned to its original owners across the country. In a message to President Thein Sein, parliamentary speaker Thura Shwe Mann urged the government to return land – specifically land left unused after being confiscated – to its rightful owners, as recommended previously in a report by the parliament-backed Land Investigation Commission.
Opening of Overland Border Gates Could Boost Burma Tourism, Investment – The Irrawaddy As of Wednesday, foreign visitors with Burmese visas are allowed to enter and leave Burma overland through four gates along its eastern border with Thailand. Officials and ethnic representatives said the decision would boost the tourism industry and facilitate foreign investment in ethnic areas and the rest of Burma. The decision to open up international road travel ends decades-long restrictions introduced by Burma’s previous military government, which was wary of foreign visitors and wanted to limit access to the conflict-ridden ethnic areas along the border.
Dealing with TB in Burma – in pictures – The Guardian Burma faces an urgent health threat, with an estimated 8,900 people newly infected with drug resistant forms of tuberculosis every year. Yet only a fraction of people with the disease, around 800 patients by the end of 2012, have received treatment. Untreated the airborne and infectious disease is fatal. Rapid care is urgently needed country-wide to save lives and stem the unchecked crisis.
Burmese Buddhists riot after rumours of sexual assault by Muslim man – The Guardian Dozens of homes and shops set on fire as hundreds rampage through village in latest outbreak of sectarian violence. Hundreds of Buddhists carrying sticks and swords went on a rampage in a village in north-western Burma, setting fire to dozens of homes and shops after rumours that a young woman had been sexually assaulted by a Muslim man. There were no reports of injuries in the latest round of sectarian violence to sweep the country.
Is Facebook holding Burmese media back? – The Guardian In this week’s letter, the president of Internews says Facebook’s near ubiquity in Burma is limiting its media’s progress. On a recent trip to Burma, I was moved to see evidence of real dialogue between the people and government, dialogue that was simply unimaginable even two years ago. Driving through downtown, all the taxis avoided a central construction site, making side streets congested and transit difficult. But after a few weeks, I heard the area had improved – a colleague’s taxi driver confidently took some credit, saying he had been posting complaints to deputy minister Ye Htut’s Facebook page every day for weeks.
Myanmar: Mob Swarms Car of U.N. Rights Envoy – AP A United Nations human rights envoy visiting Myanmar said that a confrontation he had with a mob made him empathize with victims of the country’s deadly sectarian violence.
CAMBODIA
Tank Spotting as Sam Rainsy Returns – The Diplomat Tank spotting has become something of a national obsession around the Cambodian capital. Reports of Armored Personnel Carriers (APCs) – often mistaken for tanks – troops, arms and razor wire being deployed around the capital dominate talk in the media, pubs and cafes alike. Their deployment came after opposition threats to mount protests on the streets of the capital amid claims of cheating at last month’s election as Sam Rainsy, leader of the Cambodian National Rescue Party (CNRP), returned after his daughter’s wedding in the United States.
The view from the bottom – SEA Globe In a city of extremes, what does the boom look like from the perspective of the urban poor? Toul Sangke on Phnom Penh’s urban fringe – a faded portrait of the Cambodian royal family adorns the doorway, watching over the otherwise bare interior of a wooden shanty. Bonlea sits cross-legged at the end of a line formed by the seven other members of his family. His passive expression breaks into a nervous grin.
Food for thought – SEA Globe The scourge of childhood across the country, malnutrition could be beaten in one simple and inexpensive measure. The triangles won’t fit. For several minutes, Un Koy has been trying to assemble the red and white figures as shown in an example. The stopwatch rings, signalling that the eight-year-old girl from Kompong Speu province has failed the cognitive test.
INDONESIA
Indonesia’s economy: Slipping – The Economist HOW quickly the mood can turn. Barely a year ago Indonesia was the toast of emerging-market investors. The country revelled in the world’s demand for its vast reserves of coal, oil and other resources, and celebrated with a consumer boom: economic growth clipped along at over 6%. Politics was stable, macroeconomic policy sound. Foreign investors were scrabbling to get into a market of 240m people and apparently boundless potential.Today things look different. Investors are spooked by economic concerns. Growth is slowing, even as inflation heads up. In the second quarter GDP growth slowed to 5.8%, and it will certainly undershoot the government’s target of 6.3% for the year. Inflation, meanwhile, rose to 8.6% in July. Financial markets have taken a battering. After falling by 7.7% over three days, the benchmark stockmarket index is down by a fifth from its record high in May. The rupiah, a dismal regional performer of late, is at its lowest level against the dollar in four years
West Papuans arrested at prayer session for Freedom Flotilla – The Guardian Indonesian police charge four with treason after pro-independence ‘morning star’ flag is raised. Four West Papuan community leaders who attended a church meeting to pray for activists aboard the West Papua Freedom Flotilla are to be charged with treason and could be given long jail terms, it emerged on Friday.
Jakarta’s Counterproductive Counterterrorism Approach – The Diplomat Opacity, lack of accountability, and extra-judicial killings are not criticisms reserved solely for U.S. counterterrorism policies. The Indonesian government faces similar grievances, domestically and internationally, in its own counterterrorism campaign. With the ongoing pivot to Asia, the United States is looking to Indonesia, already a regional economic powerhouse, as a like-minded democratic partner. Encouragingly, Indonesia’s counterterrorism police, troubled by a history of human rights abuses, have begun—albeit haltingly—to admit wrongdoing in select cases. Washington should applaud Jakarta’s move toward accountability, emphasizing that a respect for human rights will not only further Indonesia’s counterterror operations but strengthen its nascent partnership with the United States.
LAOS
Plight of Sombath Somphone Back in Focus – The Diplomat The inability of the Laos government to offer a credible explanation for the disappearance of prominent activist Sombath Somphone has again drawn unwanted headlines, with demands for donor nations to think twice before committing taxpayers dollars to the one-party Communist state. The latest swipe comes from Amnesty International, which is raising Somphone’s plight on International Day of the Victims of Enforced Disappearance. Somphone was last seen in police custody on December 15, but the authorities insist they have no knowledge of his whereabouts. “The human rights group calls also on other countries to do more to demand that the civil society leader, a victim of enforced disappearance, is found and returned safely to his family,” Rupert Abbott, Amnesty International’s Researcher on Cambodia, Laos and Vietnam, said.
The World Wants to Know: Where is Sombath? The Irrawaddy Still of CCTV footage apparently showing Laotian civil society leader Sombath Somphone about to be detained by unknown men approaching in a white car. At a recent reception in Vientiane, a Western diplomat approached a senior Laotian government official with a query about Sombath Somphone, a respected civil society leader who was grabbed off the streets of the capital on a December evening and has not been seen since. The question elicited a rebuff. “It is the standard official reaction,” a foreign guest at the reception recalled. “They get into denial mode even though there is CCTV footage of Sombath being forced into a vehicle near a police post in Vientiane.” A similar wall of silence and denial was erected days later, when a delegation from the European Parliament landed in the Southeast Asian nation on a fact-finding mission over the whereabouts of the soft-spoken 61-year-old. “The Foreign Ministry [officials] presented ridiculous lies that the man abducted wasn’t Sombath,” said the visibly irate Danish lawmaker and head of the delegation, Soren Bo Sondergarrd, speaking to journalists in Bangkok on Wednesday. “They are unwilling to get deeper into this case.
The Rocket: pathos meets comedy as Laos reaches for the sky – The Guardian Laotian-Australian film finds a war-torn nation’s heart in a 10-year-old boy’s journey to redemption
PHILIPPINES
Outspoken Philippines radio host shot dead – The Guardian ‘Fearless commentator’ Fernando Solijon was known for being critical of alleged corruption and rising crime. A popular radio commentator known for being critical of alleged corruption and rising crime in a southern Philippine city has been killed by a gunman, police say. Fernando Solijon of DXLS Love Radio was shot multiple times late on Thursday as he was getting into his car after drinking with friends, said the Iligan City police chief Crestito Rey Gonzalodo.
One Filipino Contracts HIV Every 1.5 Hours: Study – The Diplomat According to Ferchito Avelino, the executive director of the Philippine National AIDS Council, one Filipino contracts HIV every one hour and 25 minutes. The latest statistic arrives as HIV cases rapidly increase across the country – with Avelino attributing the “fast and furious” rise to homosexual intercourse and intravenous drug use. There were 449 new cases reported in July alone. Avelino added that HIV cases in the Philippines have increased by 523 percent between 2008 and 2012. He called for increased government spending to assist in combating the rise, especially in at-risk areas such as Manila, Angeles City, and Cebu.
“Million People March” in Manila to Protest Government Corruption – The Diplomat Though actually numbering in the tens of thousands, protesters staged a “Million People March” in central Manila Monday to speak out against corruption in the Philippine political system. The protests followed a rallying call posted across social media platforms like Facebook and Twitter. Officials’ misuse of funds has been long embedded and practically accepted in the Philippine political system, but a series of newspaper articles about how government funds were allegedly diverted into private hands have stirred new anger outside of the usual protest groups.”
THAILAND
Dunkin’ Donuts apologises for ‘bizarre and racist’ Thai advert – The Guardian Dunkin’ Donuts has apologised after it ran an advertisement in Thailand featuring a woman in “blackface” make-up. The advert, which was used to promote the donut giant’s “charcoal donut”, was called “bizarre and racist” by a leading human rights group. Dunkin’ Donuts chief executive in Thailand defended the campaign, but a spokesman for Dunkin’ Brands told the Guardian on Friday it would immediately pull a planned television spot featuring the imagery.
Meth drug makers lure children in Thailand with sweet-coated yaba pills – The Guardian Children at risk as makers of stimulant methamphetamine entice young with candy flavours and Facebook sales. The pills come in a pretty rainbow of colours – purple, pink, orange and green – and boast flavours such as chocolate and strawberry to mask the bitter concoction of drugs inside. But far from being the confectionery it is designed to resemble, yaba – which translates to “crazy medicine” – is a mix of methamphetamine, better known as crystal meth, and caffeine that can leave users awake for days. Long the drug of choice for adults in Thailand, yaba producers are now trying to sell it to children through Facebook, Thai authorities say.
Philip Morris wins reprieve over cigarette health warnings in Thailand – The Guardian Tobacco giant welcomes court decision to suspend deadline for introducing larger health warnings on cigarette packets. Tobacco giant Philip Morris has won a temporary victory in its fight to keep larger health warnings off cigarettes for sale in Thailand. The company on Monday praised a court’s decision to temporarily suspend a government deadline of 2 October for new labels on the dangers of smoking to cover 85% of a cigarette package. The existing requirement is for 55%.
Iranians convicted over Bangkok bomb plot – The Guardian Saeid Moradi jailed for life and Mohammad Kharzei for 15 years over plan to ‘assassinate Israeli diplomats’ in Thai capital. Two Iranian men have been convicted by a Thai court for their role in a bomb plot last year that officials believe was an attempt to assassinate Israeli diplomats in Bangkok. Saeid Moradi, 29, whose legs were blown off when a bomb he attempted to throw at police detonated at his feet, was sentenced to life in prison for carrying explosives as well as for attempted murder. Mohammad Kharzei, 43, was jailed for 15 years for possessing explosives.
Thailand cracks down on illegal elephant ring – The Guardian Police seize animals after investigation into gang that supplied false identity papers to owners. Thai police say they have seized more than a dozen elephants in raids after busting a gang that allegedly provided the animals’ owners with false identification papers. Fourteen unregistered or illegally registered elephants were taken in simultaneous raids on tourist destinations in the southern provinces of Phang Nga, Phuket and Krabi, said Major General Norasak Hemnithi of the police force. He said the operation, carried out by nearly 100 police and wildlife officials, followed the discovery of identification certificates issued for elephants that were not living in their registered locations.
In Thailand, Rubber Price Plunge Has Political Cost – NYT After falling rubber prices drove many rubber farmers in south Thailand into debt, hundreds of them protested in a clash that has helped embolden political opposition.
Thailand has no influence on global rubber price: Yukol – The Nation Although Thailand is a major rubber producer, it has no influence over the global market price as the country has to rely mainly on exports, Agriculture Minister Yukol Limlaemthong said yesterday.
Well-Mannered Thai Party Throws Down Its Gloves in Government Protests – NYT Protests have returned to Thailand, but this time, the demonstrators are part of the country’s Democrat Party, long known as the intellectual voice of the Bangkok establishment.
Thai Officials Play Down Effects of Oil Spill – NYT In Thailand’s third-largest oil spill, the government was quick to try to declare the affected areas safe for tourists, with one official going as far to swim in one of the worst-contaminated areas.
Thais Cast a Wide Net for Diverse Tourists – NYT Thailand has a government-sponsored campaign aimed at gay and lesbian travelers, and is also marketing itself to Muslims.
Thai Negotiating Skills Found Wanting – The Diplomat Predominantly Buddhist Thailand and its government have always struggled with conservative Muslims. Islamic cultural mores offer a stark contrast to the bustle of Sukhumvit in the heart of Bangkok or the bikini-saturated beaches of Phuket. Over the past week, old divisions resurfaced as Prime Minister Yingluck Shinawatra attempted to handle outstanding political disputes with the Muslim community on two fronts, without much success.
Demolition begins of three illegal resorts in Koh Samet – The Nation The demolition of three big resorts, built illegally in the midst of the sea on Rayong’s Koh Samet, was begun yesterday by the state environmental protection agency.
VIETNAM
Vietnam Reduces Dissidents’ Terms – AP An appeals court overturned one dissident’s six-year prison sentence and halved the term of another in a rare show of leniency.
The Ugly American Telegram – NYT The conviction that removing obstreperous foreign leaders facilitates Washington’s ability to steer events remains the most persistent — and dangerous — of illusions.
Nail bars: modern-day slavery in plain sight? | Holly Baxter – The Guardian Nail bars have thrived amid the economic gloom, but a report suggests they are sometimes staffed by women trafficked from Vietnam. There is a Sex and the City episode in which the four main characters discuss Miranda’s new bartender boyfriend. “He’s working class,” announces Charlotte, to which Carrie replies that in millennial America, terms such as “working class” just aren’t in vogue any more. This is the land of the free, after all: a place where the American dream means that social boundaries have long ceased to exist and everyone is judged on their merit and work ethic, rather than their background or their aristocratic heritage.
Electricity in Vietnam: A heavy load – The Economist IN 1894 Prince Henri d’Orléans published a book of his journey through France’s then-sprawling empire. His florid account was largely upbeat. Yet it soured along the northern coastline of Vietnam, where he lamented the “dilatory attitude of a red-tape administration” when it came to exploiting the area’s coal reserves.Now red tape is again impeding foreign investment in Vietnam’s energy sector.
The audacity of repression – The Economist NOT much more than a week ago Vietnam’s president, Truong Tan Sang, was being warmly received in the White House by Barack Obama, the second time that a Vietnamese head of state had been so honoured since the normalisation of relations between the two old foes in 1995. The two presidents were putting more flesh on the bones of a “comprehensive partnership”, which America hopes will turn Vietnam into one of its most important allies in a region that might be becoming relatively volatile again.
Regional Roundup for Week of 5.17.2013
