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Introduction From Energy, Trade and Finance - Sample

Introduction From Energy, Trade and Finance - Sample

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The Introcuction from Energy, Trade and Finance in Asia: A Political and Economic Analysis
The Introcuction from Energy, Trade and Finance in Asia: A Political and Economic Analysis

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Published by: Pickering and Chatto on Sep 29, 2011
Copyright:Attribution Non-commercial


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Energy may be one o the most contentious issues in the world and there aremany discourses, narratives, explanations and arguments about the use o energy,including its role in inter-regional exchanges between the Middle East andNorth-East Asia. Increasingly, trade and energy exchanges are spoken togetherand this appears to be the case in recent works by Kemp, Simpendorer andDavidson.
Narratives and discourses that highlight the inter-connectednesso non-energy trade and energy exchanges as an interrelated item in the inter-regional exchange between the Middle East and North-East Asia appear to beavorable to maintaining this inter-regional exchange. Te bundling o energyand goods in trade and exchanges between the two regions acts as a orm o interdependence through a spaghetti eect whereby greater intermingling pro-motes greater interdependence, analogous to spaghetti criss-crossing each other.Tere are a number o centriugal orces to mitigate the sustainability o energy trade inter-regionally between North-East Asia and the Middle East.Centriugal orces may include increasing energy needs o the Middle Eastdiminishing the potentialities o uture energy export trade, or example the ast-growing Gul states, their natural gas needs and their growing interdependencein orming regional energy systems. Regionalism is complicated and mitigatedby growing inter-regionalism.But because the two regions themselves are not institutionally regional-ized and integrated politically as blocs, the inter-regionalism between the tworegions remain organic, ad hoc and loose. Because o the nature o Middle East/North-East Asia inter-regionalism as a platorm or open, export-driven, FDI-based interaction and exchange, it includes, requires and involves the active andextensive participation o two other infuential entities, India and US which areindispensible to inter-regional trade. Te US acts as a hub or many transactionsthat occur in the region, given its global orientation and deep economic and political engagements with both regions, India as well is an increasingly impor-tant conduit and node in this exchange. Between the two large democracies,both India and the US are co-sponsors o the United Nations Democracy Fundin 2005 and enjoy mutual solidarity.
 Energy, rade and Finance in Asia
Te US node remains important because other major energy consumers inNorth-East Asia (largest consumers due to their sizes) like Japan, US, India,China Energy (abbreviated as JUICE in this publication) consumers, thoughimportant, dominant and infuential, may nd it di cult to achieve regionalism without its support (direct or indirect). Gilbert Rozman probably represent theleast positive interpretation o regionalism, arguing that dierential emphasisand progress in development has resulted in domestic sectors (not including theUS) within the JUICE grouping at times ocusing on niche and more parochialinterests rather than regional and globalized ones.
Te US on the other hand has clear, important, capacity-building andentrenched interests in both regions, the Middle East and North-East Asia.Intra-regionally, the US also has solid and essential alliances with important andmajor regional stakeholders such as South Korea and Japan. For example, Chris-topher Dent argues that, in North-East Asia, a meeting point o our dominantentities (US, Japan, China and Russia) exists, the US has maintained a clearlymapped out interest in the region and remains an important balancer betweenNorth-East Asian entities in times o geopolitical rivalry and is strategically posi-tioned to tilt opinions on issues related to North-East Asian regionalism in onedirection or the other.
Te US is also a highly adaptable entity which can accommodate dierentinterests and priorities that shape the region. Tis adaptability may also ol-low dierent administration as their own dierent distinctive styles, whetherRepublicans or Democrats, shape the outcome o events in both the Middle Eastand North-East Asia. Very oen, regional entities are infuenced by the externalenvironment or inter-regionalism craed by the US in the interest o open, reeand vibrant trade and exchanges or the interests o the stakeholders. Its balanc-ing and tilting actor in nal decision-making processes and its agreement orsupport lent to processes taking place in both regions can make an initiative asuccess or reality rom the proposal stage.Tis is not to argue that dominant regional entities like China and India orthe Gul states are unimportant, neither does it downplay smaller and medium-sized entities. Te regional entities have their own space and leeway or exerting their infuence and power, while limited regionally, are globally important. Teyexert their infuence economically, demographically, diplomatically refectiveo their capabilities and resources among various other means. Such infuencemay not even be dened by state boundaries. As Vali Nasr succinctly noted, theglobal Islamic populace (a transnational entity) is equal to India and China’sdemographics with more than 1 billion and in 2008, the GDP o Iran, Pakistan,Saudi Arabia and urkey with 420 million people was US$3.3 trillion, equiva-lent to India, but India has triple the number o people.
Tere are other ways through which the middle power economics/states/entities are exerting their infuence. For example, Saudi Aramco, according toDavid Rothkop, is undergoing localization o manpower personnel.
Such shismay not be globally tectonic in nature but can have global implications whichregional entities in the inter-regional energy trade as well as hyperpowers
mayhave to accommodate. Te interdependence actor between these groups o eco-nomic entities, states and economies within the complex inter-regional fora andauna lubricate the system as it has done so in the past when empires collabo-rated with middle and small economies and powers to make trade and exchangesa reality.Te role o the US is equally valuable as working partners or middle ormedium-sized powers/states/economies. In the inter-regional sphere o theMiddle East and North-East Asia, the US also plays the role, but this volumeargues that it is not an empire. It argues that the US is a benign entity that actsas a hub (de acto or in reality) or transmitting and intersecting priorities andneeds or entities within the Middle East as well as within North-East Asia. Itis the hub that many i not almost all spokes plug into within the two regions.Te US value system and worldview have also infuenced the normativebehavior o the international systems, including its partners in both regionso the Middle East and North-East Asia. Tese values are democratic, market-driven and careully craed to maximize ree fow o goods and energy thatrespond dierentially to most major and minor entities within the inter-regionaltrade between the Middle East and North-East Asia. Te values are not absorbedand taken wholesale by the stakeholder entities in both regions. Instead, they arelocalized, adapted, adjusted and assimilated selectively to t local and regionalconditions according to their national interests and domestic priorities.US developmentalism values were also disseminated to the developing econ-omies in the post-war era. Tough they were not absorbed lock, stock and barrel,these important ideas o development and economic growth were adapted rstby various successul economies that embarked on market-driven systems andlater also adapted, hybridized, localized by ormer command/socialist econo-mies. Te basic oundations were based on American ideas o market-drivencapitalism and ree trade. Some examples o local, regional, ideological and reli-gious adaptations to these ideas and also resistance towards complete borrowincan be ound in Howard J. Wiarda’s
 Non-Western Teories of Development 
that is potentially thought-provoking.
Te current global system rom a broad perspective is a combination o historical ideas and tradition o ar-reaching and permeable global trade basedon: stakeholders in the orm o dominant economic entities along with theirregional systemic components o small and medium sized economies/states(systemic); European contributions in the industrial age and their infuence on

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