Today Trends

Author: Chunhuei Chi, Oregon State University The people of Taiwan have been living in a parallel world since June 2020, with the island recording more than 250 consecutive days without any domestic cases of COVID-19. This paradise was brought back to the reality of the pandemic in late April 2021, when a pilot violated strict quarantine laws and sparked a series of domestic outbreaks. The fight against the virus is only made worse by Taiwan’s unique geopolitical position . Before the outbreak on 20 April 2021, Taiwan had a total of 1047 COVID-19 cases and 11 deaths among a population of 23.8 million. By 11 August, total cases numbered 15,814 with 816 deaths. Taiwan’s unusual success in 2020 left it ill-prepared for this surprising turn. Though Taiwan’s government procured 30 million vaccine doses in 2020, the global shortage of supply meant only around 400,000 doses were delivered before the April outbreak. Even this small quantity of vaccines proved difficult to distribute, wit

Author: Yew Chiew Ping, Singapore University of Social Sciences To mark the one-year anniversary of the Hong Kong national security law, the Chinese Communist Party’s (CCP) Global Times  ran a series of articles in June to hit back at ‘Western anti-China forces’ and their criticism of the law. They argued that Hong Kong’s status as a global financial hub has been ‘ elevated ’ now that the national security law is in place, contrary to views about its adverse impacts. Although some companies have exited and others relocated their Hong Kong employees in response to the law, many big names in banking and finance plan to boost their presence in the city. Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Credit Suisse plan to substantially expand hiring in Hong Kong. The past months have also seen more than one hundred new companies set up by investment managers. Increased scrutiny by both the Chinese and US governments of Chinese firms listed on US stock exchanges may a

Author: S Nathan Park, Washington DC and Sejong Institute In early 2021, Israel’s ‘ Iron Dome ’ system was seen in action as numerous spiralling interceptors illuminated the night sky, defending against the straight lines of Hamas rockets. South Korea is weighing the possibility of introducing a similar military technology — but don’t expect it to change the inter-Korean military posture in a meaningful way. On 28 June, the Defence Acquisition Program Administration (DAPA) — under South Korea’s Ministry of National Defence — announced that the country would pursue an artillery interception system, dubbed a ‘ Korean-style Iron Dome ’. The system is expected to be completed around 2035 at the cost of 2.89 trillion won (US$2.6 billion). But the South Korean Dome will not be the same as Israel’s, as it is likely to serve different functions adapted to different security needs. On a conceptual level, an artillery interception system would be useful for South Korea. Although North Korea

Author: Mahendra Ved, Commonwealth Journalists Association On 7 July 2021, Indian Prime Minister Narendra Modi reshuffled his Cabinet for the first time since his re-election over two years ago. It was overdue, as some ministers had passed away and some had quit. The overburdened incumbents were taking on more responsibilities of India’s federal government than normal. After 12 ministers were eliminated and 36 new faces inducted, the Cabinet now stands at 78 members. There were numerous reasons for the Cabinet reshuffle, chiefly the urgent need for reputation management. The government’s reputation has suffered over the past year due to its poor management of the COVID-19 pandemic, leading to loss of lives and widespread misery. The already suffering economy took another blow — the most visible sign being job losses. As a result, Modi’s popularity has dropped, but there is no challenge to his leadership either from within his party and the alliance he leads, or from the weak oppos

Author: Nishank Motwani, ATR Consulting The US withdrawal from Afghanistan presents a special challenge to Russia and several Central Asian states. The withdrawal could see Afghanistan grow into a source of instability for the region, and the Central Asian states bordering the country have each taken a somewhat different approach to its dealings with the Taliban. None appears to have a clear strategy on how to handle the rapidly changing situation. Turkmenistan, Uzbekistan and Tajikistan, Afghanistan’s northern neighbours, have benefitted from a government in Kabul that has been friendly and restrained violent groups from crossing into their territories. Now they have front row seats to the Afghan government’s fight for survival. The growing threat of a Taliban return is forcing them to rethink their approach to Afghanistan. Turkmenistan, Uzbekistan and Russia have opened communication channels with the Taliban leadership and hosted representatives in their capitals. This undercuts

Author: Troy Stangarone, Korea Economic Institute of America In August 2021, the Bank of Korea (BOK) is set to begin a pilot program to examine the feasibility of a retail central-bank digital currency (CBDC). While the pilot is not a commitment to issue a CBDC, a decision to do so would move South Korea closer to becoming a cashless society with significant implications for both businesses and consumers. Over the last decade South Korea has moved further along a path towards digital transactions. Cash usage has fallen from 66 per cent of transactions in 2010 to an estimated 34 per cent in 2020 as electronic payments increased 33 per cent during the COVID-19 pandemic . These trends are likely to continue, as polling indicates that 77 per cent of South Koreans prefer to make transactions without cash. Virtual assets such as Bitcoin have received much of the public attention related to digital financial innovation in recent years and are popular in South Korea, especially among

Author: A Chong, Singapore Combatting COVID-19 is turning out to be a demonstration of the limits and possibilities of ‘Big Brother’ style governance, taken straight out of the pages of Michel Foucault. Nowhere is this more striking than in Singapore, where vaccination governance has been wrapped in pop culture. According to Foucault, the panoptic model of surveillance can be traced back to early modern prison architecture where prison cells were arrayed around a central towering guard post. Prisoners do not know when the guard is watching them in their cells, so they self-police to avoid punishment. Governments across Asia have bent social contracts to legitimise the implementation of intrusive surveillance techniques. Populations have been coerced into monitoring their social behaviour and personal habits. At the same time, mandatory mask-wearing enforces the new normal of social distancing and empowers governments to punish deviation. The personal becomes a matter of governance

Author: Hoang Vu and Thuc D Pham, Diplomatic Academy of Vietnam Due to the COVID-19 pandemic restricting international travel, US diplomacy has shifted from conventional face-to-face interaction to virtual or hybrid settings. Yet non-traditional diplomacy is no substitute for in-person engagement — it lacks the intrinsic value that face-to-face diplomacy holds. Face-to-face diplomacy facilitates interpersonal bonding between state leaders, allowing trust to be built between nations. More importantly, it creates a chance for leaders to take stock of the other side and devise their own strategies. They may use such opportunities to signal peaceful intent, reduce suspicion and dampen the security dilemma, helping otherwise hostile states to develop relations. Thanks to the US government’s swift vaccine production and vaccination drive, Washington’s high-level face-to-face diplomacy is gradually getting back to normal. After his first six months in office, US President Joe Biden has p

Author: Editorial Board, ANU The European Union (EU) recently announced its ‘ Fit for 55 ’ plan to reduce carbon emissions by 55 per cent from 1990 levels by the end of this decade and to reach net zero carbon emissions by 2050. The commitment of the European Union and other major industrial powers to similar carbon reduction targets will require an upheaval in established patterns in global production and international trade the like of which has not been witnessed since the industrial revolution. Central to the EU’s plan is a carbon border tax. Europe plans to charge higher tariffs on imports of products made in ways that generate higher emissions than EU producers will be permitted to generate for the same goods. The scheme will begin by targeting four prominent carbon-intensive sectors: cement, steel, aluminium and fertiliser. The United States is developing its own plan to tax carbon-intensive imports as part of its pending budget reconciliation package — to expedite their con

Author: Ken Heydon, LSE On 14 July 2021, EU officials announced a plan to phase out production subsidies and free pollution permits that had been issued to selected dirty industries, replacing them with a ‘carbon border adjustment mechanism’ (CBAM). CBAM requires firms to purchase pollution certificates when importing products from countries with perceived lax environmental standards. The mechanism in effect imposes tariffs on exporters of carbon-intensive products from countries without strong carbon mitigation regimes. The plan reflects concerns about carbon leakage and fear of a, largely unsubstantiated, race to the bottom as production moves to countries with less strict emissions regulation. It is part of thirteen proposals from the European Commission aimed at cutting carbon emissions to 55 per cent below their 1990 level by 2030. By imposing a carbon border tax and flexing its extra-territorial regulatory muscle, the European Union aims to shift part of the burden of enviro