The globalized economic world order has promulgated a widespread cause and effect impact. As a consequence, the onset of the Ukraine crisis will not only spike oil and gas prices across the world — disrupting energy supply chains —but also have gross ramifications on other critical global value chains ranging from wheat and barley to minerals like copper and nickel.
Cross-border supply chains are one of the main features of a globalized economy. Such global value-chains (GVCs) have emerged and become more and more complex over time, but while they were long perceived unanimously as positive developments, they have been increasingly questioned over the past decade as sources of vulnerability. This has reached a peak with the Covid-related economic crisis. The objective of this contribution is to examine the reasons for these developments as well as the possible response to be given to mitigate the associated costs.
Since the partition of the Korean peninsula, the crises between Seoul and Pyongyang have ranked high in the US political agenda. Nonetheless, the profile that the Obama administration has chosen to keep is relatively low. This choice has triggered criticisms, however the posture has brought its own benefits. Moreover, in a difficult economic situation, and in the face of increasing pressures for the curtailing of government expenditure, the ‘low profile’ approach meets the demands of a Congress whose support the White House increasingly needs. The main uncertainty is in the attitude of the PRC. However Beijing, more than any other nation, has a keen interest in keeping East Asia stable. This does not mean that China will become a sort of ‘US cop’ in East Asia. However, some forms of localized cooperation can be envisaged; a cooperation that could strengthen, as China will progress in occupying the international position that its leadership believes the country deserves.
“Rebalancing” to the Asia Pacific is the signature foreign policy initiative of the Obama administration. Despite the attention it has rightfully garnered, the rebalance remains poorly understood. In addition to misapprehension about its fundamental principles, discussion appears to be dominated by what this policy isn’t rather than what it is. This essay aims to clear up the confusion, explain what the U.S. is doing as it shifts its strategic focus to the Asia-Pacific region, and its implications for the U.S.-Japan alliance.
Although the US’s recent ‘pivot’ toward the East Asian region has been much discussed, inadequate attention has been paid to the political and economic consequences of this initiative. This paper considers the political-economy of the pivot and suggests that it is best understood as part of a long-standing pattern of American engagement with the region. However, the rise of China is placing important new constraints on America’s ability to use economic leverage as an element of its overall policies in the region. The paper explains why and details some of the most important elements in the evolving Asia-Pacific political-economy.