Asean

Not only G20, great expectations also for the APEC summit

The 21 Asia-Pacific economies will gather in Bangkok on Friday and Saturday for another crucial multilateral event

Article by Francesco Mattogno

Southeast Asia: Round 2. After the ASEAN summit in Phnom Penh, the month of diplomatic appointments in the region comes into full swing. Opening and closing the second week of summits will be the Asia-Pacific Economic Cooperation (APEC) leaders' meeting in Bangkok, Thailand, from 14 to 19 November. A series of meetings that for two days will coincide with the G20 in Indonesia (15-16 November).

In an armoured Bangkok, the world's greats will try to leave politics aside to focus on 'free and open' trade and investment. That is, the glue that holds together the 21 economies of APEC, which includes China, the United States and Russia, among others. All members aggregated together are worth about 60 per cent of GDP and 50 per cent of world trade.

That politics should stay out of the summit, however, is unrealistic. The fine resolutions for mutually beneficial regional economic integration and cooperation (to which the birth of APEC in 1989 is owed) have been cracking for some time now, cracked mainly by threats of decoupling between Washington and Beijing. The war in Ukraine only threatens to give them the coup de grace. Thailand's 2022 presidency, which started out with slogans of openness and connection on a Bio-Circular-Green (BCG) economic model, has been particularly affected. When Moscow invaded Kiev.

At the APEC trade ministers' summit in May, representatives of the US, Japan, Australia, Canada and New Zealand left the room in protest once Russian Economy Minister Maxim Reshetnikov took the floor. The meeting ended without a joint statement and the same fate befell the October finance ministers' meeting. At the end of the summit, the five countries - joined by South Korea and Chile - expressed 'grave concerns about the war in Ukraine'.

The political language, unusual for an economic summit, caused some internal unease within the group. Thai Prime Minister Prayut Chan-o-cha spoke of a 'critical juncture' for APEC, not unjustly. To the focus on supply chains, resumption of post-covid inter-regional travel and food security that Bangkok wanted to focus on, the pressing issues of inflation and energy security were added to the top of the list.

So much so that external invitees to the summit (besides Macron, for example) include Mohammad bin Salman, Crown Prince of Saudi Arabia. His presence makes it likely that oil ties between South-East Asia and Riyadh will be strengthened, much to the chagrin of BCG and environmental sustainability. As for the chief guests, however, seven of the 21 APEC economies will not be represented by their leaders. And two are particularly conspicuous absences.

Both US President Joe Biden and Russian President Vladimir Putin chose to skip the summit. But if Putin is engaged in a war that is not going as he would have imagined, Biden will fly from the G20 in Bali directly to the White House for his niece's wedding. An explanation that has somewhat embarrassed both Thailand and the US itself, which will send Vice President Kamala Harris in his place. Also missing will be the number ones from Mexico, Malaysia, South Korea and Taiwan (for which TSMC founder Morris Chang will attend). Taipei, as well as Hong Kong, can be part of APEC without irritating Beijing precisely because the group encompasses 'economies' and not 'states'.

Chinese President Xi Jinping, who is visiting Thailand from 17 to 19 November, is ready to take advantage of the vacuum left by Biden. The absence of an American counterweight will guarantee him an exclusive welcome. According to the Bangkok Post, Prayut changed the schedule of the event only to schedule an official dinner between the two and allow Xi to attend the royal audience of leaders. From a practical point of view, the general secretary of the CCP is likely to reassure business partners that the People's Republic is still open for business - as reiterated during a forum in Beijing on 2 November -, trying to dispel concerns about the low growth rate of the Chinese economy. A face-to-face meeting with Japanese Prime Minister Fumio Kishida is also possible.

One wonders then how much influence Kamala Harris will have. The willingness to 'deepen ties with APEC countries' expressed by Biden at the 2021 summit was followed by the launch in May of the Indo-Pacific Economic Initiative (IPEF, criticised for its vagueness) and the announcement that the US will hold the 2023 APEC chairmanship. In October, US Deputy Treasury Secretary Wally Adeyemo met with some of the group's finance ministers in order to demonstrate that the region is indeed a 'top priority' for Washington. But these efforts are likely to prove ineffective. The president's absence from the summit alone could be enough to deem the US economic commitment to the area still insufficient.

For Bangkok, which has also been hit by internal political turmoil related to Prayut (speculation says that parliament may be dissolved at the end of the summit), balancing differences and easing tensions will not be easy. The minimum objective is that the events of May are not repeated and that a joint final declaration is reached: thus, avoiding a failure of the summit. Then Thailand will pass the APEC ball to the United States, bringing the curtain down on the month that put South-East Asia at the centre of international relations.

Concorso per un premio di laurea su argomenti legati all’ASEAN

Bando di concorso per l’attribuzione di un (1) premio di laurea su argomento legato all’Associazione delle Nazioni del Sud-Est Asiatico (ASEAN) ed ai suoi Paesi membri.

L’Associazione Italia-ASEAN, nell’ambito delle sue iniziative atte a favorire lo sviluppo ed approfondimento dei rapporti e delle relazioni tra l’Italia e i Paesi facenti parte dell’ASEAN nei settori economici, politici, culturali, scientifici ed artistici, promuove e finanzia l’istituzione del primo premio di laurea su tematiche legate all’Associazione delle Nazioni del Sud-est Asiatico (ASEAN) ed ai suoi paesi membri.

Requisiti per la partecipazione al concorso:

Sono ammessi a partecipare al concorso laureati dei corsi di laurea magistrale di istituzioni universitarie italiane, statali e non statali legalmente riconosciute, che nell’anno accademico 2021-2022 abbiano discusso una tesi di laurea su tematiche economiche, giuridiche, sociali o culturali relative all’ASEAN o ai suoi Paesi membri, conseguendo una votazione non inferiore a 105/110.

I candidati dovranno aver conseguito il titolo di studio entro il 31 maggio del 2023. La tesi presentata dovrà essere un lavoro originale inedito. Non sono ammesse tesi che siano già state pubblicate integralmente o parzialmente in forma cartacea o digitale.

Termini e modalità di presentazione della domanda:

La domanda di partecipazione dovrà essere inviata entro e non oltre il 31 maggio 2023 all’indirizzo di posta elettronica info@itasean.org indicando nell’oggetto “premio di laurea sui paesi ASEAN”.

I partecipanti dovranno allegare alla domanda di partecipazione i seguenti documenti:

• Copia della tesi di laurea magistrale;

• Copia del certificato di laurea magistrale;

• Sintesi del lavoro (max 2 cartelle);

• Autocertificazione con la quale si dichiara che la documentazione presentata in copia è conforme all’originale;

• Curriculum vitae;

• Autorizzazione per il trattamento dei dati personali;

• Copia di un documento di identità personale.

Importo del premio:

L’Associazione Italia-ASEAN per il premio di laurea oggetto di questo bando prevede l’assegnazione di una somma pari ad euro 5000 (cinquemila) per una tesi di laurea magistrale.

Commissione di valutazione:

L’attribuzione del premio avverrà sulla base della valutazione di una Commissione appositamente designata dall’Associazione, con membri scelti tra i componenti del Comitato Scientifico della Associazione Italia-ASEAN che, dopo aver verificato la conformità della domanda ai requisiti e termini previsti, procederà alla valutazione delle domande ammesse.

Il giudizio della Commissione è inappellabile.

Conferimento del premio:

L’Associazione Italia-ASEAN, vista la valutazione della Commissione, provvederà a designare il vincitore.

Con la comunicazione del conferimento del premio, l’Associazione Italia-ASEAN provvederà a comunicare al vincitore luogo e data per la cerimonia di premiazione.

Il premio verrà accreditato attraverso bonifico bancario sul conto corrente del vincitore.

ASEAN center of global diplomacy

From the bloc's summit in Cambodia to the G20 summits in Indonesia and APEC in Thailand. With elections in Malaysia in the background. Busy agenda with Southeast Asia at the center

Editorial by Alessio Piazza

When we say that ASEAN and Southeast Asia are at the center of the world, never will it be more clearly demonstrated than in these weeks. This is a November in which not only regional leaders but those from around the world are meeting in the area. Among Phnom Penh, Jakarta and Bangkok there is a rapid and crucial succession of appointments and summits that may outline diplomatic scenarios of global importance. At a time when the world is watching with apprehension the war in Ukraine and tensions in East Asia, as well as rising inflation and intensifying competition between powers, Southeast Asia can become the platform from which to start with more comforting prospects for the future. The busy schedule of events includes meetings within ASEAN, including the East Asia Summit scheduled for Nov. 8-13 in Phnom Penh, with Cambodia holding a rotating chairmanship that will pass to Indonesia in 2023. It is precisely in Indonesia, in Bali to be exact, that the G20 summit takes place on November 15 and 16. Just two days later, however, the Asia-Pacific Economic Cooperation (APEC) forum will open its doors in Bangkok on Nov. 18 and 19. These meetings will attract leaders from the United States, China, Japan, Russia, India and many other regionally and globally important countries. Italy included. It is rare that so many international fora of this level are scheduled in the same month in the same region. There is great anticipation for the possible bilateral between Joe Biden and Xi Jinping on the sidelines of the G20. While the G20 and APEC meetings will focus on economic cooperation, the ASEAN summits will also deal with politics and security, namely Ukraine and tensions in the East China Sea and South China Sea. Indonesian President Joko Widodo also aims to achieve results on soaring energy and food prices, which are hampering global economic recovery after the halt caused by the Covid-19 pandemic. Key word: multilateralism. ASEAN and Southeast Asia can become the driving force behind not only economic but also diplomatic restart.

Summit in Phnom Penh opens Southeast month

The annual ASEAN summit is being held in Cambodia until 13 November. It is the first of three major events in November, together with APEC and G20, which will see the area at the centre of the international political scene. Between divisions and major issues, here is the agenda of the regional bloc's summit

Article by Francesco Mattogno

A month at the centre of world diplomacy. Home to three major international events, for much of November South-East Asia is a compulsory stop on the agendas of the leaders of the major powers. The first event is the 40th and 41st annual summits of the Association of Southeast Asia (ASEAN) taking place in Phnom Penh, the capital of Cambodia, until 13 November. The term 'summit' is reductive. It is six days of non-stop bilateral and multilateral meetings, from the Business and Investment Summit (ABIS) to the 25th ASEAN-China Summit and 10th ASEAN-US Summit. Many guests have also chosen to join the heads of state or government of the Association's member countries, including senior international officials such as UN Secretary General Antonio Guterres and European Council President Charles Michel.

As for the ASEAN countries, Min Aung Hlaing is not present. This is the second year in a row that the general and coup prime minister of Myanmar has not been invited to the summit, a consequence of the civil war unleashed following the military coup on 1 February 2021. As for China, no trip to Cambodia for Xi Jinping: in his place Chinese Premier Li Keqiang. Li arrived early to meet both Cambodian King Norodom Sihamoni and Prime Minister Hun Sen. Joe Biden is instead expected to attend the meetings on 12 and 13 November. This is the first trip to Cambodia by a US President since 2012, when Barack Obama visited the country at the very last ASEAN summit chaired by Hun Sen before that.  

The non-decisions on Myanmar have highlighted gaps in the ASEAN decision-making process and reignited the debate on overcoming the 'consensus principle', whereby every member state must agree at the time of a resolution. All material for the Phnom Penh summit, where issues such as the environment, energy and post-covid recovery will probably only frame questions on politics and security. So much so that Hun Sen himself had tried, unsuccessfully, to make the summit the venue for peace talks between Russia and Ukraine. 

And politics is always at the heart of the American and Chinese presence at the summit. China winked at ASEAN by concluding a series of agreements with Vietnam and Singapore just a few days before the summit (the Secretary General of the Vietnamese Communist Party, Nguyen Phu Trong, was the first to meet Xi Jinping after the 20th Congress). On 26 October, Chinese Foreign Minister Wang Yi also received ASEAN diplomats in Beijing, saying he hoped the Association would remain 'independent' in the future.

In turn, Biden had invited the bloc's leaders to Washington last May, ushering in a 'new era' of US-ASEAN relations. For this reason, the US President could focus on emphasising the benefits of cooperation in the fields of economic, digital, and environmental development, trying to show himself as an alternative to the People's Republic. Indeed, the US and ASEAN could establish a Global Strategic Partnership, the same one signed at last year's summit between the Association and its main trading partner: China. It is somewhat the state of normality in South-East Asia, pulled to either side. The region's aim is to remain in balance between the great powers, just as they are all knocking at its door.

What to expect from the G20 summit in Bali

The declared goal of the Indonesian presidency was to bring attention back to emerging and developing countries, but unfortunately geopolitics and the war in Ukraine got in the way

By Ilaria Zolia

Indonesia is finalising preparations to host the 15-16 November G20 summit in Bali. Joko Widodo, Indonesian President and G20 President-in-Office, visited Kiev and Moscow in late June to meet with Volodymyr Zelensky and Vladimir Putin, becoming the first Asian leader to meet with both heads of state since the start of the war. Widodo's visit, stressed Indonesian Foreign Minister Retno Marsudi, 'underlines the concern for humanitarian issues, in an effort to help solve the food crisis caused by the war, as well as its consequences'. In various forums on the sidelines of the UN General Assembly, Marsudi repeated the same mantra: 'As a host nation, Indonesia is intent on advancing multilateralism and promoting post-pandemic economic growth'.

At the dawn of his G20 chairmanship and picking up the baton from Italy, Widodo had said that Indonesia hoped to provide a platform for global partnerships and international financing to support the energy transition to cleaner renewable sources during his presidency. Jakarta is well aware of the difficulties emerging economies face when faced with the transformation that the energy transition requires. What is considered one of the main solutions on the table is, for developing countries, a challenge that requires first and foremost universal access to quality electricity. Indonesia alone has sovereignty over 17,500 islands and a sinking capital city, while economic policy is deeply rooted around fossil fuels. The projects are many and ambitious, such as a solar park in Java that will be completed by the end of 2022 and will be, with its 145 Megawatts, the largest in the country. 

The declared aim of the Indonesian presidency was to bring attention back to emerging and developing countries, but unfortunately geopolitics and war got in the way. Much of the discussion in the months leading up to the summit focused on the presence of Vladimir Putin, Xi Jinping and Joe Biden and possible bilateral meetings between the three leaders of Russia, China and the United States. In his remarks at the Global Governance Group Forum held in New York, Marsudi emphasised the need for the G20 summit to produce results that benefit everyone, without being overburdened by current geopolitical issues. Former Indonesian leader Susilo Bambang Yudhoyono invited US President Joe Biden to meet with Russian and Chinese counterparts Vladimir Putin and Xi Jinping at the G20 summit in Bali next month to avert the 'real possibility of a third world war'. It would be Biden's first meeting with both leaders from Moscow and Beijing since the start of the war in Ukraine. "Europe and East Asia could breathe a sigh of relief" if the Bali summit is a success, says Yudhoyono.

Against this backdrop of tensions, the Indonesian G20 presidency has long been walking a tightrope to defend its neutral stance on the war in Ukraine. Rivalries between the West and the Kremlin will pose a challenge for the summit host country, which has never openly taken sides by maintaining the ASEAN 'third way' line based on neutrality and pacifism. Despite the pressure, Indonesia has so far 'successfully handled the pressure', according to Ina Hagniningtyas Krisnamurthi, Indonesian Ambassador to India. "We hope to have a joint communiqué... and we hope to be a good host for all those who come to Bali," she told the Indian newspaper The Economic Times.

For Jakarta, the G20 is still a forum with economic development at its core to boost cooperation between emerging economies and global powers. According to Teuku Rezasyah, an expert on international relations at Padjadjaran University in West Java, the summit is likely to end without a joint communiqué due to the heated tensions between the members, which would be the same outcome as the preparatory meeting for the Foreign Ministers' Summit held on 7-8 July in Bali. "If there is no joint communiqué, there should be a statement by the President outlining the issues contested by the G20 members, so that we can see which members violate the G20 principles and which support them," he added. Indeed, at the meeting the Foreign Ministers of the participating G20 countries failed to find common ground on the war in Ukraine and its global impact. Also present at the meeting was Russian Minister Sergei Lavrov, who left the ministerial session while his German counterpart Annalena Baerbock was criticising Moscow for the war in Ukraine. Widodo has always stressed the importance of the participation of all leaders. In an interview with Bloomberg on 19 August, he said: 'We are going through a food crisis and an energy crisis. Indonesia wants to be friends with all countries, we have no problems with anyone. What we want is for this region to be stable, peaceful, so that we can build economic growth. And I think not only Indonesia, but also Asian countries want the same thing,' he concluded. During its chairmanship of the G20, Indonesia has developed an agenda that reflects the interests of developing countries in global health architecture, digital economy transformation and energy transition. Jakarta hopes that somehow its agenda will not be erased from geopolitics altogether.

How to further improve ASEAN

The Southeast Asian bloc already has many strengths, but also the potential to further strengthen its functioning and role

Editorial by Lorenzo Lamperti

The Association of Southeast Asian Nations plays a key role regionally and globally. But there is still room for improvement to make ASEAN increasingly integrated and effective at all levels. How? By succeeding in integrating and involving in decision-making and organizational processes the various collateral bodies that can help bring strategic and intellectual guidance to the bloc's actions. A positive case in point is the Council for Security Cooperation in Asia Pacific (CSCAP), a regional organization created in 1993. It is an informal mechanism that includes the strategic study centers of ASEAN member states and the 17 non-ASEAN states of the ASEAN Regional Forum (ARF), thus allowing intellectuals, scholars and policymakers to exchange information and views on the future of the region. In an editorial published in recent days, The Diplomat lines up a number of examples where more can be done instead and are worth mentioning. According to the author, Teh Pi Li, there is little coordination among national think tanks, ministries, and ASEAN institutions, with most research institutes dealing mostly with national security issues and regional social or cultural questions not being a priority. "In a broader sense, ASEAN has not clarified how scholars or stakeholders can be involved in the ASEAN-led mechanisms mentioned in the ASEAN Outlook on the Indo-Pacific (AOIP), through which ASEAN hopes to engage stakeholders in the Asia-Pacific and Indian Ocean regions," reads The Diplomat, which states that "there is a lack of formal mechanisms through which stakeholders can exchange ideas and information." The economic front is then mentioned, with linkages between the various ASEAN trade councils and those of the bloc's external partners in need of great strengthening. ASEAN sees itself as a "community," and it already is in so many ways. But to navigate the turbulent waters of the present, there is perhaps a need to further strengthen a ship that is already steadfast but can become even more secure as it proceeds into the future.

The future of the ASEAN Way

A debate has arisen within the bloc of South East Asian countries on the Association's decision-making mechanisms

Editorial by Valerio Bordonaro

Director Associazione Italia-ASEAN

That of consensus "is the fundamental principle of ASEAN for mutually beneficial cooperation and to ensure the continuity of the Association in fully integrating the bloc, so as to realise the building of the ASEAN community". It is the so-called 'ASEAN way' characterised by neutrality and pacifism that we have talked about several times. And which Cambodian Chun Sovannarith also talks about. That is the key, in his view, to the 'extraordinary success' of the Association of Southeast Asian Nations in making the region 'stable, peaceful, inclusive, sustainable, resilient and prosperous for over five decades'. For 55 years, ASEAN has been making its decisions based on the consensus model, which is cited six times in the 55 articles of the association's Charter. Through this shared decision-making process, an alternative to the majority principle, a mechanism of integration and continuous consultation between all member states has thus been produced. Lately, however, an idea has been circulating that, if applied, could make some changes to this historic unity of purpose. On the model of the 'ASEAN Minus X' (a formula that allowed some states of the group not to implement tariff and trade policies adopted in common), there are those who imagine the creation of a 'majority with super-vote' model aimed at improving the institutional effectiveness of the association in cases where consensus is not reached on regional or international issues of common interest. A position on which it may be worth opening a debate, but according to Chun Sovannarith, 'one must ask whether or not any new model would fit the current context, considering that the consensus principle already works effectively for ASEAN's unity in diversity, under the motto of one vision, one identity and one community'. In this sense, it can also be said that this idea 'may not be consistent with the very nature of ASEAN', he adds, expressing a position that matches that of the Cambodian government. Based on the articles of the association's Charter, Chun continues, 'the legal personality of ASEAN must take precedence over political decision-making by far, as the leaders' decision-making is legally bound by the principle of consensus'. Opinions aside, it should be considered that to change the decision-making model and amend the Charter would require the consensus of all ASEAN states.

ASEAN pragmatism on Russia

South-East Asian nations condemn the Russian offensive in Ukraine but cannot afford sanctions that affect their economies

South-East Asia holds on to its commercial relations with Moscow, while the West and its Asian partners continue to impose sanctions and condemn Russia for its offensive in Ukraine. Geopolitical tremors triggered by the invasion spread internationally. However, if among the ranks of Moscow's detractors it is China that is described (wrongly) as the only 'defector', the South-East Asian countries have opted for a 'third way' of their own. On the one hand, they have joined the chorus of condemnation at the multilateral level; on the other, Singapore is the only representative of the region to have imposed sanctions on Moscow. Countries such as Thailand and Vietnam, as well as Indonesia, prefer to remain cautious so as not to jeopardise the resilience of their economies, while Myanmar’s militarist junta refuse to give up Russian arms flowing into the country.

The post-pandemic economic crisis has forced some ASEAN member states to take stock of their resources before adopting an untenable diplomatic stance vis-à-vis Russia. Indeed, most South-East Asian nations consider the war in Ukraine a regional crisis that does not involve them. Moreover, ASEAN's paradigm of values hinges on the principle of neutrality, borrowed from the colonial experience to which these territories were subjected for decades. For this reason, Southeast Asia is reluctant to close trade and political relations with the Russian Federation and condemn it to political and economic isolation.

Thailand has declared that it will restore regular air service between Moscow and Phuket at the end of October, a move to reinvigorate the tourism sector hit by the pandemic. Between January and February, before the invasion, Russians accounted for the majority of tourists travelling to Thailand. But the popular Moscow-Phuket service was suspended just after the outbreak of the conflict. Since Beijing's 'zero-Covid' policy is restraining Chinese tourists from organising trips to Southeast Asia - and flights from China used to be an important income for Bangkok - Thailand will focus on attracting at least one million Russian tourists this year. In addition, Moscow and Bangkok aim to expand bilateral trade to reach a trade volume of $10 billion in 2023 (about four times that of 2021), as Thai Trade Minister Jurin Laksanawisit said on the sidelines of APEC meetings in May.

Vietnam, on the other hand, focuses on food supply. On 18 August, talks were held to expand trade in wheat, the flow of which from Russia in 2021 had already fallen below 190,000 tonnes - from around 2.6 million in 2018 - due to the presence of potentially invasive thistle seeds. Then, on 6 September, a new connection between sea and rail freight routes between Russia and Vietnam was launched, which will facilitate logistical interactions and enable the direct transfer of goods. Financial cooperation is also a crucial issue for Russia and ASEAN countries, which have discussed the possibility of switching to payments in national currencies, in particular with the Vietnamese dong and Indonesian rupiah. The possibility of finding alternative payment systems to the traditional ones, such as the Russian MIR circuit, would also be on the table.

Moscow is also the leading arms supplier in South-East Asia. President Vladimir Putin has always recognised the region's great political and commercial potential, and has opted to use defence diplomacy to strengthen cooperation with the region's players. One of the main destinations for Russian military equipment and armaments is Myanmar. In a meeting on the sidelines of the Eastern Economic Forum held in Vladivostok in early September, the leader of Burma's coup military junta Min Aung Hlaing addressed President Putin with these words: 'We should call you not only leader of Russia, but also leader of the world, because you control and organise the stability of the whole world'. As Channel News Asia suggested, Min Aung Hlaing's comment comes at a time when both governments find themselves diplomatically isolated: Moscow over its military intervention in Ukraine, Naypyidaw over a military coup last year. In the ASEAN-Russia relationship, the complexity of international relations in the age of the globalised economy becomes clear. Most of ASEAN's trade with Russia involves Indonesia, Thailand, Vietnam. The growth of high value-added products sold by ASEAN is also increasing, partly due to the vacuum left by European suppliers who have left the Russian market. These economic performances seem to contradict the international community's almost unanimous condemnation of the offensive in Ukraine. At the multilateral level, ASEAN countries joined the UN's calls for peace. But when the General Assembly voted to suspend the Russian Federation from membership of the UN Human Rights Council in April, many Southeast Asian countries abstained. These included Singapore, as well as Thailand, Malaysia, Indonesia and Cambodia, while Vietnam and Laos voted against. This progressive softening towards Moscow is justified by assessments of economic and political pragmatism. The different postures adopted in the multilateral sphere on the one hand, however, confirm the regional actors' adherence to the rules of international law. On the other, they manifest a refusal to isolate Russia, with a message that implies that the multilateral system is moving - despite the crises or precisely because of them - towards greater inclusiveness.

Asian monarchies: the role of royal families in ASEAN countries

Some ASEAN countries still host some of the richest royal families in the world. How do the monarchs of Southeast Asia live today and what role do they play?

Elizabeth II is dead, Rama IX is dead...and I don't feel so well myself. Monarchs in ASEAN countries continue to influence, to a greater or lesser extent, the political, social, and economic dynamics of their countries. With the only exception of Brunei, where a regime of almost absolute monarchy remains, the other states of the region have long begun a process of governance redefinition facing an increasingly modern world.

Many prerogatives of power and representation are still part of for royal families’ duties. They also remain influential figures due to their enormous wealth. Nonetheless, Asian dynasties are part of the national identity and reflect some distinctive features of their homeland, such as religion or ethnic majorities’ traditions. Public opinion on their behavior is equally varied: in some countries, monarchs are put in a bad light by corruption and fancy habits, while in others they are the most appreciated public figures since they promote social development and social rights.

Thailand

The 2014 coup was not the only event that upset Thailand’s public order in recent years. In 2016, the death of King Rama IX (Bhumibol Adulyadej) after 70 years of regency became the subject of one of the most spectacular national mourning in the world. Over 250,000 people flocked to the capital to celebrate the monarch's funeral, who was cremated in a building specially built for the occasion. A whole year of national mourning followed, which included (for the first 30 days) a ban on organizing parties or playing music.

The Chakri dynasty ascended to the throne in 1782 and experienced years of prosperity and expansion of its influence in the region. In the 19th century, King Rama IV also managed to negotiate agreements with the United Kingdom that allowed the country to maintain a certain independence (unlike the other kingdoms and sultanates in the region) and start the construction of a modern state. The accession of King Rama IX to the throne in 1946 plays a pivotal role in Thai history: he attempted to hold the country together in the face of numerous coups and promoted social development through educational programs and financial support. On the contrary his successor, Maha Vajiralongkorn (Rama X), has been largely criticized. As Forbes estimated in 2011, the Thai royal house is the richest in the world, with an estimated assets of at least $ 30 billion. Thailand has one of the strictest Lese Majesty laws, which in recent years has often been used to thwart anti-government protests that have sometimes resulted in anti-monarchist positions.

Cambodia

Cambodia also introduced a lese majesty law in 2018. Starting in 1993 the King of Cambodia is elected by the Royal Council of the Throne, a group of nine Cambodian authorities that includes the Prime Minister, the President of the National Assembly and the President of the Senate. The criterion for accessing the selection? Be at least thirty years old and descend from the family of King Ang Duong (1796-1860), who today is divided into the houses of Norodom and Sisowath.

King Norodom Sihamoni continues to have some decision-making power in the choice of some government positions, including the prime minister. Sihamoni enjoys a certain respect even abroad, unlike the rest of the royal family, which in 2006 US officials in the country had defined "a tragedy, comedy and melodrama all rolled into one that could have provided grist for at least a half dozen Shakespeare plays” (comment exposed by Wikileaks).

Malaysia

Cambodia is not the only country to have adopted a constitutional monarchy that differs from the hereditary standard of a single dynasty. Malaysia also adopts a governance system that provides for the election of a monarch every five years, according to a shift among the sultans of nine of the thirteen states into which the country is divided. The Yang di-Pertuan Agong ("He who is made Lord") plays above all a representative role of the Malay and Muslim community. In fact, starting from the 1990s, the sultans gradually lost their powers, until the elimination of the same political immunity.

Yang di-Pertuan Agong can choose the prime minister but cannot dismiss him. He plays a representative role in diplomatic missions and is considered the symbolic leader of the armed forces. The sultans, who also play the role of "Guardians of Islam", have often exposed themselves to the issues of corruption in the ruling class and Islamic extremism (whose values ​​are often intertwined with Malaysian supremacism). In recent years, for example, they have opposed the implementation of the Hudud, a subset of Sharia law (the body of precepts derived from the Qumran and which some Islamic countries integrate into their own system of laws).

Indonesia

Even more marginal is the role of Indonesian royal families, who do not officially hold power but maintain a status of representation. The identity connotation, in this case, is still strong: in some areas of the country, such as Java, Bali and Borneo. An example of this is the survival of the Javanese Halus ("refined") culture that revolves all around the ceremonials of the Sultanate of Yogyakarta. King Hamengkubuwono X is the only sultan recognized by the government and has risen to the headlines for removing the compulsory male ancestry to the throne. A decree of 2015, in fact, made the title of sultan neutral, thus opening the royal career to his five daughters. He also put an end to the traditional polygamy of the Sultans of Java, always with a view to modernizing the sultanate and to give more rights to women.

Brunei

The influence of the Sultan of Brunei, the only monarch who still holds absolute power in Southeast Asia, is quite different. And it is not the only record: the Guinness Book of Records classifies Istana Nurul Iman ("Palace of the light of faith") as the largest royal residence in the world. The building occupies over 200,000 square meters with its 1788 rooms, 257 bathrooms, a banquet hall that can accommodate up to 5,000 people and an air-conditioned stable that houses 200 polo ponies. Hassanal Bolkiah, in addition to being one of the richest rulers in the world, has also become the longest-serving monarch after the death of Elizabeth II and has reigned continuously since 1967.

The Legislative Council of Brunei was established with the 1959 Constitution but, in fact, its members only have advisory powers. In fact, on the occasion of the revolts of 1962, the king obtained full powers by declaring a state of emergency, which is still in force today. Unlike Malaysia, Sharia laws are part of the regulatory body of Brunei along with some laws inherited from the colonial period.

ASEAN global home of resilience

South-East Asia continues to show positive signs on supply chains but also on the strength of its stock market

Editorial by Alessio Piazza

Warning to mariners: supply chains are not yet broken, at least not in Asia and particularly in South-East Asia. In a world where geopolitical and military tensions are multiplying, trade between major Asian nations is booming and companies continue to pursue growth. It is certainly no coincidence that while the winds of protectionism are blowing elsewhere, ASEAN countries have just ratified the Regional Comprehensive Economic Partnership (RCEP) and are at the centre of multiple regional initiatives. According to the International Monetary Fund, ASEAN countries will grow faster than China in the near future. The middle classes in these countries are at the centre of very strong growth, making them potential markets, not just centres of production. The region's population is larger than that of the United States and the European Union, is younger and offers inexpensive labour, coupled with evolving skills. This is demonstrated by the shift in increasingly sophisticated manufacturing segments such as the Apple Watch. The technology sector is poised for a boom. Recent reports identify the electronics, aerospace components and semiconductor sectors as potentially the most promising. But ASEAN countries are also showing signs of resilience in the stock market. Largely due to a sharp increase in consumption driven by tourism and related industries, Southeast Asian stocks are proving more robust than those in North Asia. The region, however, is not immune to global inflationary pressure and the US Federal Reserve's aggressive rate hikes, which have led to capital flight. According to analysts, however, the region will endure thanks to its large domestic markets and further diversification of the supply chain from China. At the end of September, the MSCI ASEAN Index - an indicator of the region's most closely watched equities - was up 1.4 per cent from the previous quarter in local currency terms. Inflationary pressure in South East Asia was less acute than in many other markets. This is a further sign of a region that is set to play an increasingly central role in terms of trade.

The Third Asian Defense Way

Acronyms for policies in the Indo-Pacific are multiplying. But as China and the United States seek to consolidate their influence in Asia, countries on the continent try to shield themselves from the consequences of this antagonism by setting up bilateral agreements that help maintain a certain degree of interoperability without being forced to openly take the side of one or the other power

Article by Lucrezia Goldin

Either with me, or against me. Unless we find a third way to consolidate defense. In the increasingly polarized competition between China and the United States, bilateral security relations are growing between several Asian countries, which, with an approach made up of individual military cooperation agreements, are trying to free themselves from the magnetism of Washington and Beijing, exploiting regional interoperability as the key to independence from the two powers. An approach that, operating without clamor and without obvious anti-China or anti-US aims (as some multilateral initiatives such as Quad and Aukus on the Chinese side and the Global Security Initiative on the US side are perceived to be), takes the form of an alternative architecture that allows Asian countries to equip themselves with deterrence tools without the risk of annoying the two powers.

From Japan to South Korea, via Singapore and the Philippines, bilateral exchanges on security technology and defense equipment show an Asia that would rather not get caught in the crossfire of high-sounding acronyms between China and the United States. A move to the rear made up of apparently second-rate but strategic agreements, especially if conceived as an instrument of long-term independence from the viewpoint of the large antagonistic blocs.  

The undisputed leader of this trend is Japan. For several years, Tokyo has been trying to revive its defense industry, and to do so, it is intensifying its relations with several South-East Asian countries. As early as 2016, Japan and the Philippines signed a defense agreement, whereby Tokyo pledged to supply security equipment and technology to Manila. Under the presidency of Rodrigo Duterte then, an update to the same agreement in the summer of 2020 led to the sale of radar control systems from Mitsubishi Electric to the Philippine government, marking the first sale of fully Japanese-made defense technology to a Southeast Asian country. With Malaysia, on the other hand, there is the Japan-Malaysia Defence Pact of 2018, while on relations with Indonesia and Vietnam, former Japanese Prime Minister Yoshihide Suga's focus has led to the signing of two agreements for the transfer of defense equipment and technology (in March and September 2021 respectively). Even trying not to draw too much international political attention with these agreements, Tokyo's stated aim is to promote its vision of a 'free and open' Indo-Pacific. This vision was also confirmed by Defence Minister Kishi Nobuo last September during a visit to Hanoi, in which he spoke of cooperation with Vietnam as being aimed at 'contributing to peace and stability in the region and the international community as a whole'.

On this front, the new Prime Minister Fumio Kishida is also wasting no time. Last May, the Japanese Prime Minister and his Thai counterpart Prayut Chan-o-cha signed an agreement for the transfer of military equipment to Thailand, which was shortly followed by the Japanese government's announcement that it would reform its regulations on the export of military equipment so as to allow the export of missiles and fighter jets to 12 countries including India, Vietnam, Thailand, Malaysia, the Philippines and Australia from 2023. Also with Singapore, as announced during a meeting on the sidelines of the Asian security summit, the Shangri-La Dialogue, negotiations will soon begin to reach an agreement on the transfer of defense equipment and technology, which also includes the areas of cyber security and chemical, biological, radiological and nuclear (CBRNE) explosive weapons. An enhanced Defense Exchange Memorandum, signed by the respective Defense Ministers Kishi Nobuo and Ng Eng Hene, complements the one signed between the two countries in 2009. The aim: to move towards 'more concrete security cooperation'. Less talk, more agreements. Without China and the USA in the way.

Active participation also on the part of India, which with the India Act East Policy created platforms for dialogue and joint maritime exercises with Singapore and Thailand, the SIMBEX and SITMEX, with the aim of maintaining regional security. To the Philippines, New Delhi provided its Brahmos missile systems and arranged for the movement of several ships of India's Eastern Command to facilitate bilateral exercises with the Philippine Navy. Dialogue with Vietnam has also been productive and free of US or Chinese interference. In 2016, a $500 million line of credit was established between Hanoi and New Delhi for the purchase of new defense platforms, and today most Vietnamese pilots are trained at Indian training bases in exchange for access to naval and air bases in Cham Ranh Bay. Finally, with Thailand, India shares maritime objectives related to issues such as illegal fishing, drug trafficking, smuggling, and piracy, confirming an interoperability that remains strong between the two countries both because of their historical and cultural backgrounds and because of their common interests related to the maritime border in the Andaman Sea, a key access point for trade in the Strait of Malacca.

South Korea has also given signs that it wants to join this 'behind-the-scenes' strategy. The Moon Jae-in administration had started to intensify relations with India and ASEAN countries through the New Southern Policy of 2017, but failed to materialize many agreements and cooperation independent of existing security platforms. The case of the Indonesian non-participation in the realization of the new Kf-X/IF-X fighters is an example of this. After a defense agreement between South Korea and Indonesia concluded in 2013, the two countries "encountered several complications" in the joint realization of new equipment, but to date they maintain good relations and at the presentation of the new 2021 Korean KF-X fighters, Indonesian Defense Minister Prabowo Subianto had also been invited. Also as part of the Shangri-La Dialogue sideline meetings, on the other hand, Singapore and South Korea updated their Memorandum of Understanding on defense cooperation, adding cybersecurity and maritime cooperation as collaboration priorities.

Asia is also moving without China and the United States, aware that excessive dependence on either side in security matters can prove counterproductive. For existing disputes with Beijing on the one hand, for the recent unpredictability shown by Washington from Donald Trump onwards on the other. Small agreements in times of big multilateral pacts thus mark a third way to try to maintain regional stability without being mere pawns in the game of others. But the agreements are beginning to be many. And when viewed as very thin threads of a broader, more expansive strategic canvas, the formula of the bilateral agreement as an inoffensive means of maneuver could be called into question. 

A common currency for ASEAN?

With global inflationary pressures, the idea of a single currency for countries in the Southeast Asian region is back on the agenda. But obstacles remain.

Editorial by Lorenzo Lamperti

A common currency for the ASEAN region. Among the first to launch the proposal was the former Premier of Malaysia, Mahathir Mohamad, after the Asian financial crisis. Proposal reiterated in 2019, when he spoke of a common trade currency pegged to gold, "not to be used locally but to regulate trade." The hypothesis has come back to the fore in these weeks marked by global economic turmoil and inflationary pressures. Raising it again was notably Vijay Eswaran, a Malaysian businessman and Executive Chairman of the multinational QI Group, based in Hong Kong but operating in some 30 countries. "Why the push for a common currency in ASEAN? Just look at Europe, where the euro is the best example of a common currency. In the 20 years since its introduction, the euro has contributed to the stability, competitiveness and prosperity of European economies. The single currency has helped keep prices stable and has protected euro area economies from exchange rate volatility," Eswaran says in a commentary published in the Jakarta Post in recent days. Many Asian emerging market economies hold large reserve assets denominated in U.S. dollars as a means of self-insurance against potential financial instability. According to the businessman, "with this dependence on the dollar, Asian countries are highly exposed to shocks from changes in economic policy and conditions relative to the United States." A common currency, Eswaran continues, "could help eliminate exchange rate uncertainty, guard against speculative attacks, and increase ASEAN's bargaining power," with long-term interest rates "likely to fall and become less volatile" and intra-regional trade flows facilitated. There could also be benefits for individuals, with greater accessibility for services such as health care, education and tourism. "Labor and talent could be more easily exchanged, leading to more job opportunities and greater economic integration among ASEAN countries," Eswaran concludes. The biggest obstacle to concrete developments in this regard, however, remains the great diversity in economic development among member countries. Suffice it to say that Singapore has a per capita income 60 times that of Myanmar.