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한국어로 읽기 Читать на русском Leer en español Gap In Deutsch lesen اقرأ بالعربية Lire en français When U.S. President Biden and Chinese President Xi met in November 2023, Biden remarked that the countries must “ensure that competition does not veer into conflict.” A recent ODI report Hedging belts, de-risking roads: Sinosure’s role in China’s overseas finance illustrates the scale of the competition and reveals how one of China’s less-known institutions – Sinosure – has been giving China the edge. This blog offers some thoughts about how the U.S., through its U.S. International Development Finance Corporation (DFC) can better compete. Competing requires resources, but really not as much as you think Competing credibly requires money, dedicated staff, and creativity. It requires studying the competition. Infrastructure development requires low-cost financing, capacity-building, and getting everyone aligned. As Sinosure has demonstrated again and again, deploying guarantees and insurance – particularly from official financing – can de-risk overseas investment, reducing costs of finance and mobilising commercial investment from the private sector. When it comes to infrastructure, China has a far more robust, albeit imperfect, track record when compared to others. The U.S. and its G7 partners have not been much of a match for China in financing infrastructure worldwide. The G7 could successfully compete with China, and doing so does not have to cost hundreds of billions of dollars. The U.S. Congress, despite its strong desire to counter BRI, has yet to appropriate the resources necessary to compete credibly in a battle of influence against China in developing countries. There’s been plenty of rhetoric, repurposing of existing programs and resources into initiatives like the Partnership for Global Infrastructure and Investment (PGII) and the Global Gateway. Each time the U.S. launches a new overseas economic development initiative, however, it rarely dedicates sufficient resources to help it scale – examples include the Partnership for Growth, Power Africa, Prosper Africa, and PGII. When it was fully funded, Power Africa, which coordinated the efforts of 12 U.S. government agencies, helped 120 power projects in Africa get across the finish line in just a few years, building a strong brand for the U.S. in Africa for economic development for the first time in decades. Then the U.S. cut Power Africa’s budget by 75% because of political shifts. The initiative stalled in its progress on new infrastructure, while still helping 200 million Africans get access to more reliable electricity. PGII, which has no dedicated budget, involves a handful of smart people working hard to deliver on a G7 promise of $600 billion in global infrastructure by 2025. Other than the Lobito Corridor project, it has not been clear to date what PGII is able to deliver at scale in Africa without additional resources. That could be about to change, though. The State Department just requested another $4 billion from Congress to up its game against China, which should help tremendously if that funding is secured to support PGII. Why Sinosure has been such an effective tool for China, despite its low margins BRI has not been particularly innovative, but it’s been steady. Sinosure, along with other Chinese export credit agencies, offers highly favorable terms and longer-term finance – this approach has well suited Global South governments in advancing their development and political objectives. While some projects have been problematic, Chinese creditors have provided the low-cost, patient capital at scale that many countries need for long-term productive infrastructure investment. But as the report shows, this approach has challenged established regimes governing the use of public money (link to blog 2). Sinosure insurance covers non-payment up to 95% of the insured equity or debt for up to 20 years, but most OECD Export Credit Agencies (ECAs) only provide 85% coverage for up to 10 years – though this policy soon will soon change [link to blog 2] Sinosure can work anywhere, except where there’s a live conflict or in cases of repayment arrears. By contrast, the U.S. International Development Finance Corporation (DFC) has a list of over 100 countries where it cannot do business. Sinosure’s premiums max out at 7% of the total debt servicing cost of a project, making it relatively cost-effective. In this aspect, it is surprisingly transparent. DFC’s fees and costs are numerous and opaque, with DFC passing some of its own costs on to its clients. By the end of 2022, Sinosure had provided over $1.3 trillion-worth of insurance on export and investment, with a quarter of this going only to BRI countries. In 2022 alone, it supported a total portfolio of $900 billion through its insurance for over 170,000 clients, of which $80bn went to overseas investment and long-term finance, which mostly supports projects in infrastructure such as power, transportation, construction, telecoms and shipping. It received a total net insurance premium of $1.9 billion and paid out $1.5 billion in insurance claims. Despite its significant payouts, however, Sinosure continues to earn a modest profit of $102 million – not much of a margin, but enough to propel China’s global leadership on trade and infrastructure development.     By contrast, DFC’s current total portfolio-wide exposure is $41 billion, with just over $9.3 billion committed in fiscal year 2023 for 132 transactions – of which only around $3.5bn of this was for guarantees and risk insurance. DFC has many of the same tools available to it as the Chinese government, and DFC is not even legally required to earn a return on its investments. Yet DFC has not made full use of its capital resources and has not deployed its capacity for risk-mitigation finance in the same way. An unleashed DFC could make the U.S. more competitive It’s not too late for the U.S. and others to compete. The U.S. has an opportunity to further change how it conducts business to compete with China, while promoting sustainable development. DFC is starting to flex its competitive muscles with its own insurance product, recently using political risk insurance to support a $1.6 billion debt-for-nature swap in Ecuador and another $500 million debt-for-nature swap in Gabon, which support broader debt relief efforts, as well as channelling money towards climate and conservation goals. Moreover, those deals come at a very low cost to the U.S. government given DFC’s pricing models. DFC is up for reauthorisation in 2025. It has both foreign policy and development mandates. In a previous blog, we laid out 10 recommendations about how DFC could be more effective in achieving its development mandate. Here are 9 recommendations to help DFC be more effective in competing with China and achieving its foreign policy mandate: 1. Spend some money and spend it right All it took for Sinosure’s expansion in the early 2010s was a capital injection of $3 billion. To make its financial institutions just as competitive, the U.S. only needs to commit a few extra billion dollars of appropriated resources per year, just as State Department has proposed, not hundreds of billions. Sinosure, with its somewhat loose investment criteria, still managed to earn over $100 million profit on a $900 billion portfolio in 2022. Even if DFC were to spend $1 billion/year of additional budgetary resources – for the purpose of leveling the playing field with China and providing developing countries with the type of inexpensive financing they need – that could be money well spent for the U.S. taxpayer. That money could cover legal fees that DFC currently passes on to clients. It could be deployed through innovative instruments: to take on some of the currency risk on strategic transactions, to cover first loss on strategic investments, or to provide technical assistance that does not need to get repaid–comparative advantages that Chinese financial institutions still sorely lack. That funding also could be used, simply, to reduce interest rates and fees, at a time when borrowing costs for lower-income countries have risen astronomically. 2. Structure deals to outcompete China Encourage DFC to structure transactions to use its funding to maximize competition with China in a way that promotes a more level playing field. DFC should not crowd out competitively tendered and transparent private sector investment, but where inexpensive or even concessional DFC co-financing might help the private sector out-compete opaque Chinese investment, DFC should be equipped to support those projects. 3. Don’t obsess over returns Even though DFC is not legally required to earn a return on a portfolio-wide basis, most members of Congress expect DFC to be revenue neutral to the U.S. Treasury. If members of Congress would adjust their return expectations even slightly, DFC could significantly advance its development and foreign policy goals. Effective development and foreign policy are not free – especially when competing with China. Even earning back $.95 on the dollar on a portfolio-wide basis would be a significant leverage of 1:20 of appropriated resources to private investment – giving DFC broad flexibility to structure deals that prioritise development impact and foreign policy. 4. Remove DFC’s limits Eliminate ceilings on DFC financing – including the $1 billion transaction limit, the $10 billion annual portfolio limit, and the $60 billion total portfolio exposure. It really doesn’t cost anything to do this. It’s like raising its credit card limit. 5. Let DFC work anywhere when necessary Give DFC the authority to determine the countries where it can do business on a case-by-case basis, depending on what the foreign policy and development priorities are. DFC should be required to continue to prioritize investments in low and lower-middle income countries, but it should have flexibility to respond quickly and selectively anywhere that doing so will credibly advance a compelling U.S. national security interest, such as financing a strategic port or lithium processing. To prevent DFC from sliding into becoming just a national security tool, abandoning its development mandate, DFC should be required to clearly articulate the compelling national security interests of projects and should provide a detailed report to Congress each year on its investments in upper-middle income and high-income countries to explain these interests (even classified, if necessary). 6. Empower DFC to support “nearshoring” DFC can help the U.S. diversify its supply chains and reduce dependencies on China. To encourage companies to move operations out of China and into the Americas (if operating in the U.S. is not commercially viable), give DFC broader authority to support strategic transactions in the region. 7. Make it easier for DFC to support equity investments in strategic infrastructure When DFC takes an equity position in a company or an investment fund, it gets a seat at the ownership table. That allows DFC to drive decisions regarding sourcing of goods and services (i.e., making sure contracts do not always go to Chinese companies). Investing in equity funds that develop and finance a portfolio of infrastructure projects is an effective way for DFC to increase and spread its strategic influence -- except that DFC often struggles to make these types of investments because U.S. legal requirements make DFC a slow and clunky, and hence, an unattractive investment partner. DFC needs flexibility to bypass some of these requirements. 8. Help DFC scale its risk insurance instrument For years, DFC has been hugely innovative in deploying its insurance products to leverage capital from others. DFC used its political risk insurance tool to crowd in private investment in Ukraine, and to catalyze pioneering debt-for-nature swaps worth hundreds of millions of dollars in Ecuador and Belize. But according to recent reports, the U.S. Office of Management and Budget has been threatening to start treating insurance investments like guarantee instruments from a budgeting standpoint. This will make it more expensive for DFC to deploy this tool. If it ain’t broke, why fix it? As we’ve shown, one of the main factors behind China’s competitiveness abroad is through Sinosure’s expansive use of its insurance tool: OMB’s changes will make it more expensive and difficult for the U.S. to scale its own. OMB needs to read the room. We’re not going to suddenly balance the U.S. budget by tinkering with a formula that has worked for decades. Let DFC do more of what it does well. 9. Help speed DFC up Before committing any transaction over $10 million, DFC is required to notify Congress in advance. This “Congressional notification” requirement provides a valuable extra level of oversight to ensure that DFC does not doing anything out-of-whack with Congressional priorities. But the process slows DFC down, when Chinese financiers are known for their speed. Even though DFC only is required to “notify” Congress of its deals, and not seek “approval,” practically and politically speaking nobody wants to run afoul of any one of the 535 members of Congress. Consequently, DFC rarely moves forward on a project until it can resolve the concerns of members of Congress. DFC needs to work with Congress to come up with a reasonable alternative to the Congressional notification process that balances speed with continued close collaboration with Congress. In addition, DFC’s Board can help speed things up by focusing its efforts on high level policy guidance instead of individual transactions. The Board should delegate more decision making on individual deals to DFC’s CEO. It makes no sense for the Secretary of State, who chairs DFC’s Board, to dig into a $20 million investment into a healthcare fund, not to mention the hundreds of State Department staff with little development finance experience who review the documentation before it goes to the Secretary with a recommendation for a vote. U.S. taxpayers probably would prefer to have the State Department focus on resolving the Middle East conflict. From the perspective of many Global South countries, this competition between the G7 countries and China is not inherently bad if it brings them more desperately needed resources and improves the quality of their infrastructure. The U.S. could be more competitive if it empowered its development finance professionals to use DFC’s tools the way they were designed to be used. DFC must be properly resourced with enough people and enough money to allow it to grow its portfolio. While development impact remains the key priority for DFC, delivering for the needs of partner countries is what also will deliver long-term influence. That is how the U.S. can compete – and all at relatively low cost to the U.S. taxpayer.

한국어로 읽기 Читать на русском Leer en español Gap In Deutsch lesen اقرأ بالعربية Lire en français India, being the largest country by population, has a great responsibility and right to show global leadership. Having chaired the recent G20 summit successfully, and as a member of important global partnerships such as BRICS and Quad, India is strategically placed to play a crucial role in geopolitics in the coming decades. Being the world’s largest democracy places a responsibility on India to drive a global agenda that will foster democracy in other countries. As a member of the Quad, with three other democracies, India can play a key role in upholding a rules based international order. Today, we live in a world that is much different to the world that emerged in 1945, after the Second World War, or in 1991 when the Cold War ended. In both instances, the United States emerged as the dominant superpower. American power, relative to the rest of the world, is now in clear decline and therefore even a loose alliance of democracies that includes India shifts the tide against competing structures of governance. Economic Rise of India India is the fastest growing major economy in the world today and is set to be the third largest economy in the world by the end of this decade. Of course, an alternative way to assess India’s development may be to measure its gross domestic product (GDP) per capita which is relatively low at less than US$3,000. However, the sheer size of its overall GDP and growing population gives the overall economy serious importance. India’s large population and the steady expansion of its middle class positions India as a lucrative economic ally for many countries in the world, both as a market and supplier of goods and services. It also makes India an attractive market to invest in, particularly in the current climate of de-risking and diversifying supply chains. Many global corporate powerhouses such as Facebook, Google, Apple, and Saudi Aramco have invested in India. Economic cooperation also inevitably results in stronger political relations, and it is very likely that this trend will continue. Strategic Advantages of India India’s greatest asset in terms of geopolitics and economics will be its democratic system of governance. India presence in the Quad for instance has legitimising effect. All members are democracies, but India is by far the world’s largest democratic nation. Democracy will also help India on the economic front. All advanced economies, with the exception of a few oil rich nations and city states, are democracies. That is because, as argued in a piece for the IMF in 2022, economic growth needs innovation, and innovation is better fostered in a democracy where there is free thinking and creativity. Many nations can become middle-income nations without democracy, but to transition to an advanced economy, they need stronger democratic values. South Korea and Taiwan provide examples of middle-income nations that evolved into high-income economies after a stronger transition toward democracy. Democracy together with population diversty can be a major factor that pushes India to break through the middle-income trap. Meanwhile, the median age of India, which is 32 years, is around 10 years younger than China’s. This is a strategic advantage not only in economic terms but also politically in international relations for India. This will mean an increase in the workforce which can help produce India’s industrial and services goods. A younger population will also result in a larger consumer market and will, more importantly, drive greater inward foreign direct investment. Additionally, a younger population will also result in larger tax revenue for the Indian government which can be used for development. It also results in less financial resources being directed towards an ageing population. As countries such as China, Vietnam, and Bangladesh grow, with outsourced manufacturing playing a large role in their economic agendas, India, which is weaker on manufacturing, has the advantage when it comes to services exports, such as consulting, IT-BPM, and education. India is a center for services outsourced by Western companies, with services exports anticipated to hit US$2 trillion by 2030. English proficiency in India adds to the advantage, but many other factors also play major roles. India has a large skilled workforce especially in information technology, software development, and business process outsourcing. Technology hubs around the country, such as in Bangalore where large global tech companies and startups are based, and government support, add to the scale at which India can expand this critical export in the coming decades. The software services industry, for example, has matured, resulting in sector upscaling. Interestingly, 20 percent of the world’s semiconductor design engineers are employed in India. These aforementioned attributes position India as an ideal strategic partner for many countries. Countries such as the United States, United Kingdom, European nations, Japan, Australia, Canada, and South Korea consider India a natural ally. India is also building ties in its region with the Gulf nations to its west and with the ASEAN nations to its east. India’s neighbour to its south, Sri Lanka, recently went through its worst economic crisis since independence in 1948. After defaulting in April 2022, Sri Lanka came to a standstill with no fuel for 3 weeks, 12 hour power cuts, and food and medicine shortages. It was India that came to the rescue, with US$4 billion at its most vulnerable time, giving a clear message to the world that India is a partner that will stand up for them. Talal Rafi is an Economist and Expert Member of the World Economic Forum. He is currently a Consultant on Economic Policy at the Asian Development Bank, and also a Regular Columnist for the International Monetary Fund. His work has been published by the World Bank, International Monetary Fund, Asian Development Bank, World Economic Forum, London School of Economics, UNFCCC, Chatham House London, Deloitte and Forbes.

한국어로 읽기 Читать на русском Leer en español Gap In Deutsch lesen اقرأ بالعربية Lire en français Japan’s Prime Minister Fumio Kishida, recently stated at the Budget Committee of the House of Representatives of the Diet that “…he strongly feels the need to boldly change the current situation of the ties between Japan and the DPRK,” and “…it is very important that he himself establishes (…) relations with the President of the State Affairs of the DPRK, Kim Jong Un, and continues to make efforts through different channels for this purpose”. Immediately, the KCNA agency released, in response to the statement made by the Japanese Prime Minister, a declaration from Kim Yo Jong, the Deputy Director of the Department of the Central Committee of the Workers’ Party of Korea (WPK). The One in charge of the affairs related to the Republic of Korea and the United States – now it seems also with Japan – commented that she found it noteworthy that the Japanese media have assessed Prime Minister Kishida’s words as “a different position from before” regarding the issue of DPRK-Japan bilateral relations. She added that “there is no reason not to evaluate positively” the words of the Japanese Prime Minister if he shows the “true intention” to move forward the relations between the two countries “by courageously freeing themselves from the shackles of the past”. He added that if Japan abandons its “bad habits” such as unjustly violating the self-defense rights of the DPRK and stops turning the already resolved issue of abductions into an obstacle, there is no reason to prevent a rapprochement between the two countries and the day may come when Kishida visits Pyongyang. She noted that, if Japan opts for a new path to improve relations and approaches the North with “respectful and sincere” behavior, the two countries can create a “new future” together. According to Kim Yo Jong, she made her statements not from an official position, but in a “personal capacity”, something that can be questioned, as she appears as the closest collaborator of her brother Kim Jong Un, and the fact that she holds the high responsibility of being the deputy director of the Department of Propaganda and Agitation of the Central Committee of the WPK, formally requires her to uphold party discipline. The most immediate antecedent to Kim Yo Jong’s remarks was when, earlier this year, as western Japan was recovering from an earthquake that killed more than 200 people and damaged tens of thousands of homes in Niigata Prefecture, the Chairman of the State Affairs of the DPRK, Kim Jong Un, sent a message of “sympathy and condolences” to the Japanese Prime Minister, which was seen as unusual and a conciliatory note, given Pyongyang’s demonstrated animosity towards successive Japanese governments and the systematic messages of grievances sent by the DPRK’s official media. Now, a month later, through Kim Yo Jong, the DPRK sends a new signal that it may be willing to improve relations with Japan. However, many observers view with skepticism the supposed show of commitment towards reconciliation with Japan because, over the decades, events raise suspicious about whether their pronouncements were sincere or not. For well-known historical reasons, the DPRK-Japan relations have never been healthy. Especially, in the last two decades when they have been distinguished by their progressive worsening. Successive administrations, especially those of Shinzo Abe and Yoshihide Suga, have taken the nuclear threat as a pretext for their militaristic ambitions, something that has severely displeased the leadership in Pyongyang. Due to what the North Koreans call “infamous submission” to the US, expressions of disdain from high-ranking officials towards Tokyo are regular occurrences. The most controversial issue revolves around the matter of the abducted Japanese. Although in 2002, coinciding with the first visit to Pyongyang of then-Japanese Prime Minister Junichiro Koizumi, the DPRK and Japan signed a historic agreement committing an early normalization of bilateral relations and leading to the return of five of the abducted Japanese, Tokyo holds Pyongyang responsible for the abduction of 17 Japanese citizens in the 1970s and 1980s, with 12 of them still believed to be in the DPRK. However, Pyongyang admits to having abducted only 13 individuals, claiming to have returned five and stating that the remaining eight had died. What is most unnerving in the eventual Japan-North Korea ties is that Pyongyang assumes the abductee issue as a “settle issue” and Tokyo keeps it as a priority on its political-diplomatic agenda. To date, Japan continues to present the abductees as a premise for talks at any level, while the DPRK considers it as already solved and furthermore, the issue of nuclear weapons and missiles has nothing to do with the improvements of bilateral ties, as Pyongyang considers it as its legitimate self-defense. Japan finds it extremely difficult to accept such conditions. The DPRK’s increasingly sophisticated missiles are constantly being projected into the Sea of Japan and have even flown over Japanese territory. Japan also perceives the possibility that, like South Korea, the DPRK will carry out preventive nuclear strike when it sees signs of real and imminent risk. And, as far as the abduction issue is concerned, all indicates that Japan is not ready to accept that it has been resolved. It is a combination of social forces, forming a critical mass that puts pressure on the Japanese government to act in favor of finding a plausible solution to the abduction issue. In this regard, the Japanese government’s chief spokesman, Yoshimasa Hayashi, stated at a press conference that Japan remains unchanged and “…intends to comprehensively resolve outstanding issues, such as nuclear energy, missiles and abductions”. It is well known that the Japanese Foreign Ministry has repeatedly appealed to its counterparts in friendly countries to the DPRK to make efforts to lead to talks with Pyongyang authorities. It is documented that these efforts have been unsuccessful due to their reluctant stance towards Tokyo. Why is the DPRK rushing to positively assimilate Prime Minister Kishida’s words now? In a previous article, we discussed how at the January 15th, 2024 session of the 14th Supreme People’s Assembly (SPA) of the Democratic People’s Republic of Korea (DPRK), Chairman Kim Jong Un made a decision to sever all ties with the Republic of Korea (ROK), which he called as the “number one hostile country” and indicated to constitutionally endorse a better definition of the border and physically destroy all inter-Korean symbols. We saw that the main thing was to “erase” from the Constitution what he referred to as “inherited concepts” that classify South Koreans as compatriots and likewise, the term unification, removing phrases he assessed as “deceptive” such as “3,000 miles of golden water, rivers and mountains” and “80 million Koreans”, arguing that “…it is correct to specify in the corresponding article [of the Constitution] that the Republic of Korea is firmly considered as the number one hostile country and immutable main enemy”. The above-mentioned contrast with the position that presumably highlights the expectation of an eventual improvement in relations with Tokyo, which has the same status as a major ally of Washington in East Asia, as does Seoul, and which together form a harmonious triangular anti-DPRK alliance. It is notorious that a priority of the DPRK, reinforced in recent times, has always been to fracture the US-ROK-Japan axis. It is convenient to recapitulate that, under the Moon Jae-in and Donald Trump administrations, when Pyongyang – Seoul and Pyongyang – Washington relations exhibited relative understanding and détente, the DPRK furiously attacked the Abe administration, with the same purpose of breaking the alliance. Pyongyang may find it worthwhile to engage with Tokyo under the assumption of forcing open some cracks in the recently strengthened trilateral cooperation between the United States, Japan, and the Republic of Korea. This is because under conservative President Yoon Suk Yeol, South Korea has sought, with the support of the Biden Administration, closer relations, and more stable ties with Japan, including defense and intelligence information exchange, and to a significant extent, has achieved it. However, the Seoul-Tokyo-US convergence suffers from fragility, which is reflected in the appreciable differences over the shared history between South Korea and Japan, and the ongoing disputes with the former colonial ruler over comfort women and forced laborers. In addition, there is US political volatility; in both Seoul and Tokyo there are uncertainties about whether Washington would directly involve itself in a conflagration involving either of them with the DPRK, as well as whether Washington would accommodate South Korea’s nuclear aspirations and unreservedly support Japan’s abandonment of the status of its Armed Forces as self-defense forces. Still, it can be argued that, as risk management and empathy sustainer, Kishida will keep Seoul and Washington abreast of his dealings with Pyongyang. In March, he will visit Seoul and in April, Washington; these would be important indicators of alignment between the trio. Kishida will seek the blessing of the Yoon and Biden administrations, anticipating that Kim Jong Un will move toward a summit that Kishida has so often called for. Washington has moved forward in supporting Japan’s attempts to engage with the DPRK. The ROK and Japan are in close communication on any future Tokyo-Pyongyang dialogue. Meanwhile, South Korea says that any contact between Japan and the DPRK should be conducted in a manner that helps promote peace and stability on the Korean Peninsula. Conclusions We are in the presence of a new diplomatic gamble by the DPRK that illustrates the level of specialization it has reached in managing its complicated relations with the main US allies in East Asia, who, in turn, are perceived as systematically confrontational countries. A straightforward resolution of the outstanding issues for discussion (nuclear weapons, missiles, and abductions) between Kim Jong Un and Fumio Kishida is not to be expected. These are issues on which the DPRK and Japan have diametrically different positions and directly concern the comprehensive strategic security of both countries, including the recurring abduction issue, which is associated with the political gain of any Japanese government. A meeting at the Japan-North Korea summit would be one of the few pleasant surprises to be received in the context of the vicious circle of conflict associated with the DPRK. It would be attractive to see a determined understanding between Pyongyang and Tokyo. It may be foreseeable that a Kim Jong Un - Fumio Kishida meeting will take place, but the past and present history negates any prospect of success. For this to happen, both sides will have to make principled concessions that, if made, will have combined counterproductive political effects. Bibliographic references KCNA. Kim Yo Jong publica declaración con el tema de relaciones Corea-Japón. Disponible en: http://www.kcna.kp/es/article/q/cba25051838d476c95acd451a45ae8a8.kcmsf KBS WORLD Prensa japonesa: Kim Yo Jong busca desestabilizar alianza Seúl. Washington-Tokio. Disponible en: https://world.kbs.co.kr/service/news_view.htm?lang=s&id=In&Seq_Code=88473 Leonardo Estandarte. Corea del Norte-Japón: Kim Yo-jong plantea la hipótesis de la visita de Kishida a Pyongyang. Disponible en: https://www.agenzianova.com/es/news/Corea-del-Norte-Jap%C3%B3n-Kim-Yo-Jong-plantea-la-hip%C3%B3tesis-de-la-visita-de-Kishida-a-Pyongyang/ Kim Yo Jong dice que Corea del Norte está abierta a mejorar sus lazos con Japón. Disponible en: https://reporteasia.com/relaciones-diplomaticas/2024/02/15/kim-yo-jong-corea-del-norte-mejorar-lazos-japon/ Japón califica de inaceptable que Corea del Norte afirme que la cuestión de los secuestros está resuelta- Disponible en: https://www3.nhk.or.jp/nhkworld/es/news/20240216_15/ Jesse Johnson. North Korea-Japan summit push gains steam after remarks by Kim´s sister. Disponible en: https://www.japantimes.co.jp/news/2024/02/16/japan/politics/japan-north-korea-summit-push/ Mitch Shin. Will Kim Jong Un Meet with Japan´s Prime Minister Kishida? Disponible en: https://thediplomat.com/2024/02/will-kim-jong-un-meet-with-japans-prime-minister-kishida/

In the first two months of the year, general elections (presidential and/or legislative) were held in three countries of the Indo-Pacific, the area towards which the center of gravity of the world balance is shifting, according to experts: Bangladesh, Pakistan, and Indonesia. Together they account for nearly 700 million inhabitants, almost 9% of the world’s population, and host the largest number of Muslims in the world. The authoritarian bias there is so significant that the elections are mere ceremonies of power legitimization, more directed outside than inside of the country. The same happens in the Philippines, Malaysia, Thailand, etc. Dynastic democracies, tutelary democracies, or both at the same time. False democracies. Bangladesh: a party-state? In Bangladesh, the Awami League won three out of four seats in the Parliament in January, a slightly lower percentage than in the 2018 elections, but with no diminution of its overwhelming power. The country’s prime minister is Sheikh Hasina Wajed, daughter of the father of independence, Sheikh Mujibur Rahman [1]. Abstention, estimated at 60%, best explains the electoral result. The main opposition parties boycotted the elections in protest against the lack of transparency of the process and, above all, against the attacks on basic freedoms. Some of the opposition leaders are serving prison sentences for unjustifiable reasons. Reports of arbitrary arrests and extrajudicial executions are frequent [2]. Hasina claims to maintain the progressive line of her father, but the evolution of her regime indicates otherwise. The Awami League has maintained a power alternation with the conservative nationalists. But lately, her most feared enemy has been the Islamist radicals. In this fight, Hasina has counted on the support of India. The current government of Narendra Modi was more sympathetic to the nationalists, but pragmatism has imposed a close collaboration. Authoritarian drift in both countries has favored this convergence. Pakistan: a dictatorship in disguise In Pakistan, the elections have been even more controversial and stormy. The army is the real – if not the only – effective political actor [3]. The parties have wielded power since the military formally ceded it to them in 1998. Only nominally. The military domination over the institutions of the State remains unchanged. The reactive coup d’état has been replaced by preventive actions that determine or strongly condition the electoral result. Those who deviate or threaten to step out of the military script are discredited. It happened again this year. The populist movement of Isham Khan (a former cricket champion, the national sport) was until just two years ago the ruling party, having won the 2018 election. But he was covertly accused of a series of crimes, convicted, and imprisoned in 2022. Ironically, Khan had been the military’s preferred candidate, without whose favor he could hardly have secured victory. He believed that with his popularity, he could sideline his former protectors. Grave mistake. The military pulled the strings of justice, and Khan’s party was prevented from contesting in the elections [4]. The cricketer did not give up. From jail he denounced the military tutelage (which he had previously accepted with better or worse taste) and promoted candidacies related to his party under the label of “independents”. The challenge has been successful but insufficient. The “independents'' won a hundred seats, which are not enough to form a government majority [5]. The two parties that have been alternating in power in the last decades, the Muslim League (led by the conservative Sharif Brothers) and the People’s Party (political structure of the Bhutto family, of a confused and debatable center-left) hastened to agree to form a coalition government. Between them they have more than 130 deputies [6]. The cynicism of Pakistani politics is more than remarkable. The two parties now joining forces have been close enemies with a shared fate: both have been battered by the military, which has imprisoned and forced their leaders into exile on several occasions. In fact, the founder of the Bhutto dynasty (Zulfikar Ali) was overthrown after a military coup in 1971, charged and convicted in 1974 for the alleged murder of a political opponent and finally executed in 1979. His daughter Benazir was twice prime minister, deposed, exiled, and assassinated by an alleged Islamic extremist in 2007, when she was returning to her country. The Sharifs, powerful businessmen, have had a less tragic fate, but they have lived between favor and disgrace. Corruption has been the legal basis for their downfalls, with no little foundations. But it has been used as a weapon when it was convenient for the headquarters. Nawaz Sharif has now preferred to step back from the front line and reinstate as prime minister his brother Shehbaz, who held the post after the fall of Khan. The head of the clan went into exile in Saudi Arabia and only when he successfully negotiated the cancellation of the penalties, he returned to Pakistan to control the political process after the partial liquidation of Imran Khan. The post-election pact also has a prize for the Bhutto family. Although the formal leader of the PPP is Bilawal, Benazir’s son, who really pulls the strings is his widowed father, Asif Ali Zardari, who has also served sentences for corruption, of which there are few doubts. Zardari will be the new President, a more ceremonial position, but not without power to maintain his privileges. The outlook for the two now coalited dynasties is frightening. By 2026, Pakistan will have to pay $78 billion in foreign debt service, one of the highest in the world. This represents almost a quarter of its GDP (340 billion). Negotiations with the IMF are a dogfight, but the room for maneuver is almost nil [7]. Economic deterioration has been unstoppable in recent decades. At the beginning of the century, Pakistan’s economy was five times smaller than that of its rival, India; today it is one tenth [8]. Neither the military nor the political elites have been able to redirect the successive crisis. Pakistan is a ship adrift, in a permanent state of war with India. Both enemies have nuclear arsenals, which adds an enormous factor of danger to their recurrent disputes. Pakistan has been a major player in the protracted war in Afghanistan, as both, an ally and a rival of the United States, successively or alternately. In Washington they never knew whether the Pakistani military was helping or boycotting them. Bin Laden was killed by an American commando while hiding in Abbottabad, a city where many officers live, but the powerful military intelligence always denied knowing his whereabouts. After the withdrawal from Afghanistan, relations between Pakistan and the United States have lost weight. In Washington, the “Indian card” is now a priority. However, the traditional economic and military ties between Pakistan and China compel Americans not to neglect this elusive and chaotic partner. Indonesia: Duo of former rivals In Indonesia, things are not looking any better. In the presidential elections, the winner was Prabowo Subianto, an authoritarian military officer who played an outstanding repressive role during the military dictatorship of his father-in-law, General Suharto, who led the country in the last third of the century, amid atrocious violations of human rights [9]. If the pacts in Pakistan lack any political ethics, in Indonesia it is three quarters of the same. Or worse. Five years ago, the current President, Joko Widowo (known as Jokowi), abandoned the pale progressivism of the ‘Democratic Party of Struggle’, founded by Megawati, Sukarno’s daughter, and joined the populist current in vogue. With this tactical shift he managed to defeat the conservative nationalist of GERINDRA (Great Indonesia Movement), who had turned to Prabowo as a ‘strongman’ figure to seize power. Widowo consolidated his hold on power with a populist policy of large infrastructure projects, partly financed by China, a tough hand against crime and radical Islamism, and an ambiguous balance in relations with Washington and Beijing. When he felt strong, Widowo integrated Prabowo into his government as no less than the Minister of Defense. Sukarno would have turned in his grave. That was not all. Jokowi wanted to form his own dynasty, but his son Gibran was still too young to inherit his post. He even had to twist the law (with the complicity of a judge who was his brother-in-law) so that he could be a candidate… but not for his party, from which he definitely separated, but as Prabowo’s second [10]. Success was guaranteed. The duo of former rivals has won the presidential elections by a wide margin. But in the legislative elections the result was more disputed. According to provisional data, the former general will not be able to count on an aligned Parliament. In any case, in such a corrupt and institutionally fragile country, cohabitation could be smoother than expected [11]. The director of the Asia-Pacific program at London’s renowned Chathan House anticipates changes, but he is confident that Prabowo’s pragmatism will limit his authoritarian instincts [12]. This ‘wishful thinking’ by Western analysts when assessing authoritarian regimes with a democratic façade is very recurrent and responds to the persistent logic since the Cold War. After all, what determines their blessing is not the democratic quality of political systems but their willingness to defend or act in accordance with Western interest. And in today’s times, being on the “right side” of history essentially means taking sides with the West in the strategic dispute with China. NOTES [1] https://www.cidob.org/biografias_lideres_politicos/asia/bangladesh/hasina_wajed [2] “Bangladesh is now in effect a one-party state”.THE ECONOMIST, 8 de enero. [3] “The Military is still pulling the strings in Pakistan’s election”. MUNEEB YOUSUF & MOHAMAD USMAN BHATTI. FOREIGN POLICY, 5 de febrero. [4] “Pakistan’s real test begin after elections”. AL JAZEERA, 8 de febrero. [5] “The rise and fall, and rise again of Imran Khan”. THE NEW YORK TIMES, 11 de febrero. [6] “Imran Khan’s opponents reach deal to shut his allies out of government”. THE NEW YORK TIMES, 14 de febrero. [7] “Pakistan can’t stop the cycle of discontent”. HUSAIN HAQQANI. FOREIGN AFFAIRS, 16 de febrero. [8] “Pakistan is out of friends and out of money”. THE ECONOMIST, 14 de febrero. [9] “Indonesia’s election winner has a dark past and a cute image”. JOSEPH RACHMAN. FOREIGN POLICY, 14 de febrero. [10] “Indonesia’s election reveals its democratic challenges”. THOMAS PEPINSKY. BROOKINGS, 12 de enero. [11] “La démocratie indonésienne résistera-t-elle à la presidence de Prabowo Subianto?” COURRIER INTERNATIONAL, 16 de febrero; “The world’s third-biggest democracy could be sliding backwards”. ISHAAN THAROOR. THE WASHINGTON POST, 14 de febrero. [12] https://www.chathamhouse.org/2024/02/continuity-prabowo-means-change-indonesia; “Indonesia’s democracy is stronger that a strongman”. BEN BLAND. FOREIGN AFFAIRS, 13 de febrero.

It is a running gag among the pro-Taiwan camp that if you were to ask ordinary folks about Taiwan five years earlier, most could not locate Taiwan on a map. At the time, matters relating to China were mainly debates about Donald Trump’s protectionist stance, as relations between Taiwan and China didn’t receive the attention many would warrant in the face of a potential war. However, ever since the outbreak of the coronavirus—now probably having originated from the Wuhan Institute of Virology—and the narrative of a grand alliance between Beijing and Moscow during the war in Ukraine, comparisons have been drawn between the fate of Taiwan and Ukraine. Even though CNN became confused between Taiwan and Thailand a year ago, any mention of Taiwan now will ring the alarm about how the United States can be deprived of semiconductors should it not respond to an imminent threat posed by China. As we move toward 2027, people have been arguing that the US should cease intervening elsewhere to concentrate its ability on defending Taiwan—in other words, Taiwan is the only case worthy of intervention. Unlike Ukraine, the case of Taiwan is more black-and-white as Taiwan stands as a victim of Chinese coercion. Whether on a purely strategic or moral argument, there is a lot of sympathy for Taiwan, regardless of political orientation. Nevertheless, war is still war, and in such a scenario, a confrontation between two superpowers is to be avoided at all costs. Even with nuclear weapons factored out, a clean victory for the US and Taiwan is unlikely due to logistical problems, encirclement, and the high cost of lives. In an interview on Tom Wood’s podcast, Joseph Solis-Mullen argued that the only possible way out is to abide according to the principles of the One China Policy—to lead Taiwan into reunification with China under the People’s Republic of China (PRC). Again, we should oppose a war with China, as it would only deliver catastrophe for the US, China, Taiwan, and likely the other countries surrounding Taiwan regardless of the outcome—though Solis-Mullen did acknowledge that should Taiwan fall under the control of the PRC, human rights in Taiwan will take a sharp turn for the worse. Even though the recent elections haven’t decisively favored the pro–Taiwan independence and anti-PRC Democratic Progressive Party, virtually no Taiwanese identifies himself as Chinese. Even the Kuomintang—the only large party that supports a One China Policy—argues that while Taiwan belongs to China, China is the Republic of China (ROC), not the PRC, and the Kuomintang has recently distanced itself from former president Ma Ying-jeou over comments that reunification is acceptable for Taiwan. After all, by the principle of self-determination and voluntary association (as close as it may get), Taiwan is effectively a country in all but on paper. As far as adherence to the principle of armed neutrality goes, Taiwan shouldn’t receive US arms shipments or a security guarantee (which it has under the Taiwan Relations Act). However, the constraint is that China forces countries that want to establish diplomatic ties with China to adhere to its version of the One China Principle, which stipulates that the legitimate government of China is the PRC. Taiwan, however, can’t move away from the One China Principle but can argue that the ROC is the legitimate government of China. However, the reality is different off-paper where Taiwan is a country. China can coerce countries into either choosing the PRC or the ROC, but it can’t afford to fully coerce everyone. While there’s a strategic side to US-Taiwan relations—given Taiwan’s position in the first island chain—the commercial side is undeniable, thanks to the dominance of the Taiwan Semiconductor Manufacturing Company in the semiconductor industry. In other words, there’s a reason why the so-called Taipei Economic and Cultural Offices (or Taipei Representative Offices) are there as de facto Taiwanese embassies. While there is a strong element of strategy at play, the US need not abolish all ties with Taipei, just arms sales and defense guarantees as neither China nor the US is willing to risk trade relations to a level too deep. While this may trigger alarm bells for people who support Taiwan, chances are that Japan, Australia, and even some Southeast Asian countries would prefer Taiwan to remain as it is. For many of these countries, a takeover of Taiwan means a step further for China to infringe upon their territories and disrupt trade routes. While it didn’t announce whether it would directly intervene, Japan has labeled Taiwan as a matter of national security and has been bolstering its own defense over the fears that the US might not help Japan. With a military persistently known for corruption and now a diplomatic emphasis on softening tensions, Beijing sees war as undesirable as well. As stated before, the world is not as remarkably united and can be separated into three blocs as it was during the Cold War. “Allies” of the US would prefer to delegate their responsibility to defend themselves to the US, even if they can do the job themselves and keep a check on one another. As for how we should see Taiwan, it’s a country that in some cases might be more libertarian than the US (except for conscription). Whether people want to debate the similarities or differences between “acknowledging” and “affirming” the One China Principle, it doesn’t erase the fact that Taiwan for all intents and purposes is a sovereign country.

BK Scholz: A warm welcome, Mr. Prime Minister! I am delighted to welcome you here to Germany for the first time. Your visit is a very special start to a Southeast Asia Week with several high-ranking visits from this important region of the world here in Berlin. The Indo-Pacific region is of great importance to Germany and the European Union. We therefore want to intensify political and economic cooperation. Germany already maintains close economic relations with the region. Malaysia is Germany's most important trading partner in ASEAN. This is of great importance because it is associated with many direct investments in the country, but also with all the economic exchange that results from this. We would like to further expand this partnership. Of course, this is particularly true with regard to the objective of further diversifying our economic relations with the whole world. We want to have good economic and political relations with many countries. We also want closer cooperation on climate protection and the expansion of renewable energies. We are therefore very pleased with Malaysia's announcement that it will stop building new coal-fired power plants and dramatically increase the share of renewable energies. We think this is very important. Malaysia and Germany are established democracies. We are both committed to multilateralism and compliance with international law. It is therefore also right that we deepen our security and defense cooperation. The defense ministries are already working on the necessary cooperation agreements. Of course, we also discussed developments in the Middle East, developments in Gaza and the situation following the Hamas attack on Israeli citizens. It is no secret that our perspective on the Middle East conflict is different to that of others. But that makes it all the more important to exchange views with each other. In any case, we agree that more humanitarian aid must reach Gaza. This is also our clear call to Israel, which has every right to defend itself against Hamas. We do not believe that a ground offensive on Rafah is right. An important step now would also be a ceasefire that lasts longer, preferably during Ramadan, which has now begun and during which we broke the fast together today. Such a ceasefire should help to ensure that the Israeli hostages are released and that, as I said, more humanitarian aid arrives in Gaza. We also have a very clear position on long-term development. Only a two-state solution can bring lasting peace, security and dignity for Israelis and Palestinians. That is why it is so important that we all work together to ensure that a good, peaceful perspective, a lasting common future is possible for Israelis and Palestinians, who coexist well in the two states. Of course, the world is marked by many other conflicts and wars, especially the dramatic war that Russia has started against Ukraine. It is a terrible war with unbelievable casualties. Russia, too, has already sacrificed many, many lives for the Russian president's imperialist mania for conquest. This is against all human reason. That is why we both condemn the Russian war of aggression. It is important to emphasize this once again. The Indo-Pacific is of great importance for the future development of the world. Of course, this also applies to all the economic development and development of the countries there. I therefore welcome the efforts of Malaysia and the ASEAN states to settle disputes peacefully and to find ways to ensure that this becomes typical of everything that has to be decided there. Any escalation must be avoided at all costs. Peace and stability must always and everywhere be maintained on the basis of international law. This applies in particular to the freedom of the sea routes and compliance with the UN Convention on the Law of the Sea. That is why the ongoing negotiations on the Code of Conduct are so important. Thank you once again for coming to Berlin on the first day of Ramadan, at least for our location. We broke the fast together earlier. For me, this is a good sign of peaceful coexistence and solidarity. I see it as something very special. Ramadan Kareem! PM Anwar: Thank you very much, Mr. Chancellor, dear Olaf! Thank you for your wonderful hospitality and for bringing us together today to break the fast! Germany is of course one of our most important partners in Europe. We have seen a huge increase in trade and investment. We can see that major investments have been made. We have visited Siemens. Infineon is a big investor in Malaysia and is showing its confidence in the country and the system here. There are many other examples of companies operating in Malaysia. Of course, my aim is always to expand bilateral relations in the areas of trade and investment and also to benefit from your experience, both in the field of technology and in environmental and climate protection issues. We have set ourselves clear goals for the energy transition. We have drawn up an action plan that is also in line with your policy. Renewable energy, ammonia, green hydrogen - we are pursuing these very actively. Fortunately, Malaysia is also a hub within ASEAN for these renewable energies and technologies. We welcome the German interest in this, also with regard to new investments in the renewable energy sector and with a view to climate change. We have of course discussed this cooperation on this occasion and I am pleased with the Chancellor's willingness to tackle many of these issues. Sometimes we have small differences of view, but it really shows the trust we have in each other. As far as the war in Gaza is concerned, we agree that the fighting must stop. We need a ceasefire immediately. We also need humanitarian aid for the people of Palestine, especially in Gaza. Of course we recognize the concern about the events of 7 October. We also call on Europeans, and Germany in particular, to recognize that there have been 40 years of atrocities, looting, dispossession of Palestinians. Let us now look forward together! I agree with the Chancellor on what he said about the two-state solution. It will ensure peace for both countries. Together we can ensure that there is economic cooperation and progress for the people in the region. We have also positioned ourselves with regard to the war in Ukraine. We have taken a very clear stance against aggression, against efforts to conquer. This applies to every country and, of course, also to Russian aggression in Ukraine. We want a peaceful solution to the conflict. Because this conflict has an impact on trade and economic development as far away as Asia. We have a peaceful region. ASEAN is currently the fastest growing economic area in the world, precisely because it is so peaceful - apart from the issue in Myanmar, but that is contained within Myanmar. The conflict has not spread to the region, although there are of course refugee movements. Within ASEAN, we have jointly agreed on a five-point consensus and the parameters by which the issue can be resolved. The ASEAN countries have agreed that Laos, Malaysia and Indonesia would like to lead the troika together and resolve the conflict with Myanmar. Then there are other issues such as the South China Sea and China. I assured the Chancellor that we are getting along well with China. We have not seen any difficult incidents, but of course we see ourselves as an absolutely independent country. We are of course a small country, but we stand up for our right to cooperate with many countries to ensure that the people of Malaysia also benefit from these mechanisms and from cooperation with other countries. Once again, Mr. Chancellor, thank you very much for this meeting. I am very impressed by your insight, by your analysis of the situation. It is very impressive to see what a big country like Germany is doing, and it was also good to share some of our concerns. I am pleased with the good cooperation. It's not just about trade and investment, it's also about the overall development of bilateral relations in all areas. I also told the Chancellor that the study of Goethe is gaining interest in Malaysia. Questions from JournalistsQuestion: Mr. Prime Minister, can you tell us something about the progress of German investment in Malaysia and can you say something about the challenges for the government in the transition to renewable energy in Malaysia? Mr. Chancellor, in 2022 you spoke about the turning point in German foreign and security policy. But if you now look at ASEAN or Southeast Asia: How does Germany see Malaysia in terms of its bilateral importance, trade and also regional issues? PM Anwar: Within the European Union, Germany is our biggest trading partner. They have made large investments, up to 50 billion US dollars. I have already addressed Infineon and many other leading German companies and I have said in our discussions that we are very pleased that they have chosen Malaysia as an important hub, as a center of excellence, as a training center in the region and I look forward to further cooperation in this area. Of course, I also mentioned that education should be a priority. There are 1000 Malaysian students here in Germany and also several hundred German students in Malaysia. We are also very happy about that. We are working with many German companies to train people and strengthen cooperation. We have taken important steps in renewable energy. We are investing in solar energy, in green energy and in our renewable energy export capacity. There is now an undersea green energy cable to the new capital of Indonesia, another to Singapore, and another cable to the Malay Peninsula. You can also see from the fact that data centers and artificial intelligence are growing and thriving in the Malaysian region that this has great potential. BK Scholz: Thank you very much for the question. - First of all, the turning point lies in the Russian attack on Ukraine. This was the denunciation of an understanding that we have reached in the United Nations, in the whole world, namely that no borders are moved by force. But the Russian war of aggression is aimed at precisely that, namely to expand its own territory as a large country at the expense of its neighbor - with a terrible war. We cannot accept this - not in Europe and not anywhere else in the world. That is why it is right for us to support Ukraine and to do so in a very comprehensive manner. After the USA, Germany is the biggest supporter - both financially and in terms of arms supplies - and in Europe it is by far the country that is making the greatest efforts to help Ukraine defend itself. But this touches on an issue that is important for the whole world. Anyone who knows a little about the history of the world - and it is colorful and diverse - knows that if some political leader is sitting somewhere, leafing through history books and thinking about where borders used to be, then there will be war all over the world for many, many years. We must therefore return to the principle of accepting the borders as they are and not changing them by force. That is the basis for peace and security in the world. That is why we are also very clear on this together. For Germany, however, this does not mean that we lose sight of our own economic development, the development of Europe and the world. As you may already have noticed, it is particularly important for the government I lead and for me as Chancellor of Germany that we now make a major new attempt to rebuild relations between North and South and to ensure that we cooperate with each other on an equal footing in political terms, that we work together on the future of the world, but that we also do everything we can to ensure that the economic growth opportunities and potential of many regions in the world are exploited to the maximum. This is why economic cooperation between Europe and ASEAN, between Germany and ASEAN, between Germany and Malaysia plays such an important role, and we want to make progress in the areas we have just mentioned. Renewable energies are central to this. We know that: We need to increase the prosperity of people around the world. Billions of people want to enjoy a level of prosperity similar to that which has been possible for many in the countries of the North in recent years. If this is to succeed, it will only be possible if we do not damage the environment in the process, which is why the expansion of renewable energies is so important. New and interesting economic opportunities are also emerging, for example in the area of hydrogen/ammonia - this has been mentioned - because the industrial perspective of the future will depend on more electricity, which we need for economic processes - and this from renewable energies - and on hydrogen as a substitute for many processes for which we currently use gas, coal or oil. Driving this forward and creating prosperity together all over the world is a good thing. The fact that the German semiconductor industry and successful German companies in the electronics sector are investing so much in Malaysia is a good sign for our cooperation. We want to intensify this. Question: Thank you very much, Mr. Prime Minister. Your government supports Hamas and, unlike Western countries, has not described Hamas' attack on Israel as terrorism. In November you said that Hamas was not a terrorist organization. Do you stand by this assessment and are you not afraid that this position on Hamas could affect relations with countries like Germany? Mr. Chancellor, I have a question for you: Do you think that Malaysia's position on Hamas could damage bilateral relations between Germany and Malaysia? And if I may, one more question on Ukraine: Germany is still discussing the delivery of cruise missiles to Ukraine. The Foreign Minister said yesterday that a ring swap with the UK was an option, i.e. Germany sending Taurus cruise missiles to the UK and the UK then sending its Storm Shadow cruise missiles to Ukraine. Do you think this is also an option? PM Anwar: Our foreign policy position is very clear and has not changed. We are against colonialism, apartheid, ethnic cleansing and dispossession, no matter in which country it takes place, in Ukraine or in Gaza. We cannot simply erase or forget 40 years of atrocities and dispossession that have led to anger in the affected societies and also action after action. Our relations with Hamas concern the political wing of Hamas, and we will not apologize for that either. This cooperation has also helped to raise concerns about the hostages. We have no links with any military wings. I have already said that to my European colleagues and also in the US. But we have some different views. The Australian National Congress also recognized long before the Europeans or Americans that this apartheid policy must be abolished. That's why we have taken that position. We need to understand what the fundamental problem with this is. We cannot allow people to be plundered, to have their homes taken away from them. This has to be solved. Am I in favor of people, of children being killed? Absolutely not. No, nobody should do that. That is the consistency in our politics. But I am against this obsession, this narrative, as if the whole problem started on October 7 and would end then. It didn't start on October 7, and it won't end then either. It started 40 years ago and it's still going on today. Against this background, I am of the opinion - and I have also said this to the Chancellor - that we should now look to the future. We have a problem. Do we want to deal with history now, with the atrocities that have happened, or do we want to solve the problem now? Solving the problem now means: the fighting must stop, the killing must stop. Then the whole international community - Germany, Malaysia and all neighboring countries - can ensure that there is no more violence, from any group, against anyone - not against Muslims, Christians or Jews. People must be able to live in peace. Thank you very much. BK Scholz: I have already said it and I would like to repeat it again: Germany's position is clear. Israel has every right to defend itself against the terrorist attack by Hamas. We have always made that clear in recent days, weeks and months, and it remains so. Israel can rely on that. At the same time, we have clear positions on further developments, and these have already been stated. Let me say this once again: we want more humanitarian aid to reach Gaza. We want the hostages to be released, unconditionally. We want there to be no unnecessary victims. That is why we have said very clearly what forms of military warfare are compatible with international law and what we find difficult. I have spoken out on Rafah and on the need for a long-term peaceful perspective with a two-state solution that makes it possible for Palestinians in Gaza and the West Bank to live peacefully in a separate, self-governing state alongside Israel - as a democracy in the region, and where the citizens of Israel can also rely on us. That is the perspective we are working for and what is at stake now. That is why we are working - despite the different assessments of the specific issue - on a peaceful perspective, which is necessary. I would like to repeat what I have to say on the issue of supporting Ukraine in its defense. Germany is by far the country that is providing the most support for Ukraine - financially, but also in terms of arms deliveries. All in all, the deliveries to date and those promised amount to 28 billion euros and 30 billion dollars. That is a considerable sum. We have mobilized everything to ensure that Ukraine receives the necessary support from us - ammunition, artillery, tanks, air defence of various kinds, which is also highly efficient and very much appreciated. Our support is reliable and continuous. Ukraine knows this, and we hear time and again how much this great support is appreciated there. As far as the one weapon system is concerned, I am of the opinion that it cannot be used without control in view of its effect and the way in which it can be used, but that the involvement of German soldiers is not justifiable, not even from outside Ukraine. I have therefore said that I do not consider the deployment to be justifiable and that it is therefore not a question of direct or indirect involvement, but of us being clear on this specific issue. My clarity is there. It is my job as Chancellor, as head of government, to be precise here and not to raise any misleading expectations. And my answers are correspondingly clear. Question: Good afternoon, Excellencies! You both mentioned the situation in Gaza and said that we must look ahead to a two-state solution. But how much influence can this meeting have on a humanitarian ceasefire? PM Anwar: Germany is an important country in Europe and has established good relations with Israel, and we have somewhat better relations with Palestine, with the Palestinian Authority and also with the political Hamas. Other Arab countries and neighboring states of Palestine and Israel are doing what they can. We should also be a little more positive. It is of course a chaotic situation, an uncertain situation. There is no easy solution. The Palestinians have suffered a lot. The Netanyahu government has also been very clear in its stance. There is no easy solution. We have to stop the killing of innocent people on both sides, the killing of civilians. We now need a permanent ceasefire and, ultimately, a two-state solution. This is also possible if the international community has the courage and determination. I have said: sometimes you get really depressed when you have the feeling that this case has already been morally abandoned and that there is no real will from all countries to stop the war and find a solution. I am sure that the countries of the Middle East, the international community, Germany and the other parties involved want this peaceful solution. BK Scholz: We would all have liked the start of Ramadan to have been accompanied by a longer-lasting ceasefire, which would have been linked to the release of the hostages by Hamas and also to an increase in humanitarian aid reaching Gaza. Having said that, the aim now is to bring this about as soon as possible. I believe that would be very important for everyone and could also create prospects for further developments. That is what is at stake now. We are in agreement with the American government and the European Union in everything we do. Many people around the world are also trying to work in this direction - as we have heard here, but this also applies to neighboring countries. What we must prevent is an escalation of the war. We also warn against Iran or the Iranian proxies becoming more involved in this war than is already the case. This must be resolved soon. As I said, how this can be done is something that is very clear to me, to the European Union, to the USA and to many others, and it has also been mentioned here together. Question: Mr. Prime Minister, you said that history should be left behind. But for the Israeli hostages, October 7 is still the present, also for their families. Regarding the talks you are holding with the political leadership of Hamas: What are you talking about? How much hope do you have that these hostages will be released soon? Can you also say something about what you saw on October 7 and the fact that these hostages are still being held by this terrorist violence? Mr. Chancellor, you recently met the Pope, who has now caused controversy with his statements on the white flag, which Ukraine has taken to mean, as the Foreign Minister said, that the Church is behaving more or less as it did at the beginning of the 20th century, in other words that the Church did nothing against Nazi Germany at that time. How do you react to the Pope's statements? PM Anwar: Thank you. I have already made my opinion clear. You cannot simply overlook the atrocities of the last four decades, and you cannot find a solution by being so one-sided, by looking only at one particular issue and simply brushing aside 60 years of atrocities. The solution is not simply to release the hostages. Yes, the hostages should be released, but that is not the solution. We are a small player. We have good relations with Hamas. I have told the Chancellor that, yes, I too would like the hostages to be released. But is that the end of it, period? What about the settlements, the behavior of the settlers? No, it goes on every day. What about the expropriations, their rights, their land, their dignity, the men, the women, the children? Is that not the issue? Where is our humanity? Why is there this arrogance? Why is there this double standard between one ethnic group and another? Do they have different religions? Is it because of that? Why is there a problem? Yes, we want the rights of every single person to be recognized, regardless of whether they are Muslim, Jewish or Christian. I am very clear on that. But of course I cannot accept that the issue is focused on just one case, on one victim, and that the thousands of victims since 1947 are simply ignored. Is humanity not relevant? Is compassion not relevant? That is my point. Do I support any atrocities by anyone towards anyone? No. - Do I want hostages to be held? No. But you can't look at the narrative in such a one-sided way. You can ask if I disagree with some subgroups. But that's not the way to solve the issue. We have to be fair, just, and find an amicable solution that is just, that is fair. BK Scholz: Once again what I have already said: Germany has a special and good relationship with Israel. That is very important to us. That's why Israel can also rely on us. You have a clear position on what is necessary now. That includes the release of the hostages. That includes humanitarian aid. It includes the prospect of a two-state solution. I have already spoken about this, I just want to mention it again here. This is also important for us. We were very supportive of the founding of the state of Israel, and German policy will continue to develop along these lines. As far as the Russian war of aggression against Ukraine is concerned, Germany's position is very clear: Ukraine has the right to defend itself, and Ukraine can rely on us to support it in many, many ways. I have already said that we are very far ahead when it comes to the volume and quality of the arms supplies we have provided. That is also true. That is why, of course, I do not agree with the position quoted.

It is a conventional wisdom that monarchy has become an anomaly. In the case of Southeast Asia, this axiom is valid only up to a point. Despite the institutional upheavals, caused by colonialism and its dismantling, the region contains one ruling monarchy (Brunei), and three varieties of constitutional monarchy (Cambodia, Malaysia and Thailand) of some political import. Whether the anomaly of monarchies surviving is due to the persistent and natural workings of traditional political values, or whether their existence, besides being partly fortuitous, is now manipulated by elites (even by monarchs themselves), in order to pre-empt the destructive or destabilising effects of modernisation – the very modernisation which seems to make the survival of the monarchy rather unpredictable. The purpose of this short article is not to treat the subject as an anomaly, but to provide some pointers to the survival of monarchies in Southeast Asia under the new political climate. It is not just modernisation that has contested the political relevance of the monarchies, democratisation has posed a threat to their existence too. In the age of democratic consciousness, a question emerges: is monarchy compatible with democracy? So far, some monarchies have successfully entrenched their rule against the tide of democracy. Some are potentially becoming the target of annihilation. For example, the youth-led protests in Thailand in 2020 called for immediate royal reforms. Protesters risked violating the draconian lèse-majesté law which forbids critical discussions on the monarchy. This was the first time in the Thai history in which the monarchy has been made a public agenda. Talks on republicanism in Thailand have remained a taboo. Yet they are proliferating. I argue that the future of monarchies in Southeast Asia depends on the combination of their personal and political capabilities and how they transpire as a non-threatening factor to democracy, at three levels: personal, national and international. At a personal level, the monarchs, more than ever, need to exhibit their increased accountability, transparency and responsibility, if they want to live side-by-side with a democratic regime. On mainland Southeast Asia, the concept of divine kingship has remained highly sacred. The Thai and Cambodian kings are supposed to perform as Buddhist Dhammarajas, or virtual kings, so as to augment their charisma, and subsequently reverence, from their subordinates. Much in the same vein, the Sultans must show that they exercise their royal authority based on Islam. The religious sanctity of the throne is indispensable for the existence of the monarchies. It demonstrates the close intertwining between kingship and religion, and if used wisely, it can enhance further the level of divinity of the monarchs. The collapse of Nepalese monarchy was partly caused by the king’s fading faith in religion. At a national level, the monarchy’s position is intricately related to its role as guardian of democracy. The monarchies, in the democratic world, are obliged to play a crucial part in supporting democratic constitutionalism, as seen in the case of Britain. They may serve as an important symbol of national unity and harmony, particularly in deeply divided societies. In transitional societies, they may assist in bridging past with present to ensure political stability by supporting democratisation and rule of law. In time of crisis, from war, political violence, terrorist attack to natural disaster, monarchs may help the country mourn and heal as part of restoring peace and normalcy. The Japanese Emperor provided an example as a national healer by visiting those affected by tsunamis and earthquakes in the past. Monarchs may be expected to give advice to the head of executive power and perform an essential check on the power of elected legislators. Lastly, at the international level, the monarchies may need to ensure that their existence is in the interests of powerful foreign allies, and that they remain an essential political institution. The United States was known to be a guarantee of security of the Thai monarch during the spread of the communist threat in the region. Foreign recognition of monarchies is important for their survival. All these guides to longevity of monarchies in Southeast Asia do not automatically offer a rosy picture for their future. New factors emerge from time to time to challenge the integrity and legitimacy of their rule. Using illegitimate weapons to manage such challenges may prove counterproductive. They do not necessarily display the monarchs’ ultimate power, but rather their desperation, and insecurity, to cling on to it. The monarchical system has been around for thousands of years. It has become less forceful, and in some cases has ceased to exist, as nations of the world have accepted democracy as the final form of government. The key to the survival of the monarchical institution, therefore, rests on the way in which it acts and reacts in a complementary manner to the rising desire of the people for democracy.

When South Korea President Yoon Suk Yeol broke out into an impromptu performance of the song “American Pie” at a gala White House dinner in 2023, it was more than just a musical interlude. It was symbolic of how on the big Indo-Pacific issues of the day, Washington and Seoul are singing from the same songbook. But so, too, is Japan. And for South Korea’s karaoke-loving leader, that means humming a different tune to predecessors on the international stage – and risking hitting a sour note back at home. Yoon, who took office in May 2022, has embraced closer ties with Japan, South Korea’s former colonizer, as part of an alignment with U.S.-led security cooperation in the Indo-Pacific region. It entails a more demanding stance toward North Korea’s denuclearization and a watchful eye on China and its increasing assertiveness in the South China Sea. The approach culminated in a historic Camp David summit in 2023 aimed at solidifying relations between South Korea and Japan. Such rapprochement with Japan has won Yoon plaudits in the U.S. But it has done nothing to improve his popularity back home. In South Korea there is growing disapproval of Yoon’s leadership. Critics point to an illiberal streak in his rhetoric and policies, which has included attacks on his critics and the media. It has, they contend, contributed to a worrying trend of democratic erosion in Korea. Yoon’s poll ratings are sinking at a time when his conservative party seeks control of parliament in elections slated for April 10, 2024. As scholars who study democratization and authoritarian politics and modern Korea, we are watching as these concerns grow in the run-up to the parliamentary elections. That vote will prove a test of the popular support for Yoon, his domestic agenda and his vision for South Korea’s more outward-looking international role. Japan is ‘now our partner’ Yoon struck a raw nerve in an Aug. 15, 2023, speech celebrating National Liberation Day in Korea, in which he affirmed the country’s partnership with neighboring Japan. He said the country’s former colonial occupier is “now our partner, sharing universal values and pursuing common interests,” and emphasized that “as security and economic partners, Korea and Japan will cooperate with a forward-looking approach, contributing to global peace and prosperity.” His remarks were met with public outrage, especially given their timing: National Liberation Day commemorates Korea’s liberation from Japanese colonial rule, which lasted from 1910 to 1945. The Japanese occupation was brutal, simultaneously exploiting Korean women – as evident in the use of so-called “comfort women,” or military sexual slaves – and treating Koreans generally as second-class citizens, all the while pushing obligatory assimilation into Japanese civilization on the occupied population. Attempts by the Japanese colonial regime at erasing a separate Korean identity and culture – this included banning the teaching of the Korean language and coercing Koreans to adopt Japanese names, along with the violent suppression of independence movements – left deep scars on the collective Korean psyche. For many Koreans, watching their country join Japan in a trilateral partnership with the U.S. is too much to accept. Emergence of pro-Japan voices Yoon and his conservative administration’s foreign policy goals are based not on nationalism but on what has been described as “a value-based alliance” with Washington. This stance is at odds with the nationalist focus often seen in the right-wing politics of other countries. Indeed, in South Korea it is the political left that increasingly identifies with a form of nationalism. Meanwhile, the “New Right” in South Korea has correspondingly embraced an anti-nationalist stance, specifically attacking anti-Japanese sentiment. Since the early 2000s, Korean conservatives have increasingly distanced themselves from nationalism, particularly of the anti-Japanese variety. If, as theorists such as Ernest Gellner have argued, modern nationalism is based on the presumed unity of state and nation, political developments in Korea since 1980 have destabilized this relationship. After the bloodshed of the Gwangju Massacre in 1980, during which the state killed hundreds of its own citizens, leftist nationalists argued that the South Korean state was neither the representative or defender of the Korean nation. Rather, they saw the South Korean state’s inheritance of institutions and personnel from the Japanese colonial government, alongside the hegemonic presence of the United States in Korea – characterized as “neocolonial” by some – as diluting the state’s nationalist credentials. In contrast, conservatives defended the South Korean authoritarian state’s legitimacy and its legacies. They argued that authoritarian rule was responsible for the rapid economic growth that allowed South Koreans to live in prosperity. As part of their defense of Korea’s legacy and attack on a political left increasingly identified with nationalism, conservatives embraced an anti-nationalist stance, specifically attacking anti-Japanese rhetoric. This has involved downplaying the negative effects of Japan’s colonial rule in Korea between 1910 and 1945 and even rejecting the validity of Korean comfort women testimonies. One additional motivation for conservatives has been to justify the achievements of right-wing heroes such as former dictator Park Chung Hee. Park, who has been credited with jump-starting Korea’s economic growth, has been castigated by nationalists as a pro-Japanese collaborator due to his having been trained in the Manchurian and Japanese military academies during the 1940s. Starting around the turn of the century, there has been a gradual increase in the frequency and intensity of pro-Japan voices. Far-right organizations, such as the Republic of Korea Mom’s Brigade, have since the 2010s organized rallies in defense of Japanese colonialism. More recently, far-right groups have systematically disrupted so-called Wednesday Demonstrations – a protest that has been continually held for over 30 years in front of the Japanese embassy in Korea to demand that Japan address the comfort women issue. In a 2019 bestselling book, conservatives even attacked anti-Japanese nationalism as a form of “tribalism” on the left. It is in this context of the growing prominence of pro-Japan voices that Yoon, in a 2023 interview with The Washington Post, expressed that he “could not accept the notion that Japan must kneel because of what happened 100 years ago. Attacks on critics and fake news Yoon embodies this reorientation of Korean conservative ideology and foreign policy that rejects nationalism in favor of closer relations with Japan, especially in the context of alignment with the U.S. against the threat of North Korea and China. The approach has seen Yoon embraced by American policymakers. Yet his popularity at home has fallen from an approval rating of above 50% in mid-2022 to 29% at the beginning of February 2024, although it has since picked up a little. At first glance, his foreign policy seems to support liberal and democratic values. However, in domestic matters there has been growing concern that his rhetoric and policies reflect an illiberal character. Examples include labeling his opponents as “communists” and attacks on the media and “fake news.” This is perhaps unsurprising; the nature of Korean conservatism is deeply rooted in authoritarianism. The Biden administration is keen to present Yoon differently – as an ally, along with Japan, in the protection of Asia’s democracies. But this says more about a U.S. foreign policy that centers China as a threat than it does Yoon’s actual commitment to democratic freedoms. To a South Korea audience, however, Yoon’s position on Japan only adds to general concern over his illiberal tendencies ahead of April’s vote – the first general parliamentary elections during Yoon’s tenure. Editor’s note: The article was updated on March 7, 2024 to clarify Park Chung Hee’s World War II record.

How cyber operations support the state system. ' North Korean units are primarily concentrating on political and economic espionage and the procurement of foreign currency. Disruptive attacks are currently rather unlikely. ' The funds generated are primarily used for the political and economic stabilization of the state and the expansion of nuclear and conventional military capabilities. ' To date, around three to six billion US dollars (excluding unreported cases) have been gained through the use of cyber resources. ' The activities can be countered by detecting and publicizing North Korean procedures as well as reconnaissance of potential target institutions. ' North Korean units act opportunistically and flexibly. It is to be expected that the attacks will continue despite countermeasures. At present, there is no significant threat to Germany. In recent years, the Democratic People's Republic of Korea (DPRK) has increasingly instrumentalized cyber and information space to implement its state policy agenda, exploiting the entire spectrum of possible operational targets: Sabotage and disruption, signaling, political espionage, economic espionage, foreign currency procurement and propaganda. According to Kim Jong-un, cyberattacks function alongside nuclear weapons as an "all-purpose sword" to achieve the regime's goals. Goals and Impact DPRK units have repeatedly launched disruptive attacks to sabotage and disrupt enemy systems in order to force political concessions from South Korea and the US or as an instrument of political signaling: so far unsuccessful. Notable examples in this context were various operations against IT systems in South Korea, such as Operation Dark Seoul1 and Ten Days of Rain, which led to widespread disruption in the country. No comparable activities were observed after 2014; it can be assumed that offensive cyber activities had little impact as a means of coercive diplomacy. It can therefore be assumed that any operations outside of a military scenario will not be carried out by the DPRK for the time being. So far, political espionage has primarily been directed against South Korean civilian and public institutions as well as international organizations and foreign individuals. The aim of the operations is to obtain strategically and security policy-relevant information. In recent years, for example, there has been an attack against eleven UN Security Council members in order to obtain information on sanctions resolutions.2 International think tanks and journalists have also been compromised in order to obtain information on foreign assessments of the DPRK's situation.3 The aforementioned activities continue and are flexibly adapted to the regime's political interests. It cannot be assumed that North Korea will refrain from political espionage. With regard to economically motivated espionage activities, the DPRK carries out operations to generate information on economically relevant sectors. In the past, the main target was international defense companies with the aim of gaining technical information for the development of modern weapons systems, including nuclear weapons.4 However, during the Covid-19 pandemic from 2020 to 2022, the state also attacked vaccine manufacturers abroad to enable the DPRK's self-sufficient vaccine production. Economic espionage is similar to political espionage in its calculations and is geared towards the strategic goals of the state leadership. It is to be expected that the DPRK will carry out more attacks against satellite technology companies in the future in order to underpin recent efforts to produce space-based weapons and reconnaissance systems. Financially motivated attacks to obtain foreign currency have been observed since around 2011. Initially, the actors' approach was primarily aimed at low-threshold targets such as gaming platforms. From 2015, however, there was an increase in the quality and quantity of activities. The DPRK attracted international attention with complex attack campaigns against financial institutions: Compromising the international SWIFT payment system and attacking the ATM payout mechanism, as well as the WannaCry global ransomware campaign.5 The attacks against the financial sector generated approximately two billion US dollars, and the ransomware activities led to the encryption of 230,000 systems in 150 countries. In response to the operations, the DPRK's approach was exposed by internationally cooperating cyber security institutions and appropriate protection mechanisms were provided. As a result, the lucrativeness of the attacks was significantly reduced and the DPRK had to realign its strategy. Since then, attackers have increasingly focused on non-governmental cryptocurrency platforms, which are still proving to be a profitable and preferred target. These platforms often have low security standards and attract less public attention than a bank if they are compromised. As part of the operations, the DPRK hackers gain access to digital bank accounts and transfer the cryptocurrency to a North Korean wallet. The currency is then laundered through various mechanisms and converted into fiat currency. Since 2015, the DPRK has been able to generate an estimated three to six billion US dollars in this way. However, it can be assumed that the number of unreported cases is much higher. In 2020, 1.7 billion US dollars are said to have been gained through malicious attacks. Apart from the use of the WannaCry malware,6 no financially motivated attacks against German targets are known. Motives The DPRK does not have an official cyber doctrine that provides insight into the strategic calculations of the state leadership. However, the regime's motives can be deduced from the political situation of the state, the specifics of cyberspace and the official state goals. Pyongyang sees itself as immanently threatened by the US military presence and alliance with South Korea. This is a key driver for the execution of disruptive attacks. In the event of a military conflict, cyber means can be used as an instrument of asymmetric warfare. In peacetime, cyberspace is used by the regime to carry out attacks against other states without risking escalation with conventional weapons systems. This strategy of "a thousand pinpricks" serves to demonstrate power, generate urgently needed financial resources and legitimize the state leadership in both domestic and foreign policy terms. Due to economic insufficiency, international sanctions and a high demand for imported goods, the North Korean state is dependent on foreign currency to maintain its internal economy, finance luxury goods for the elite and further expand its nuclear and conventional armaments capabilities. The regime has been using clandestine and illegal methods to obtain foreign currency since 1970. In this context, cyberattacks now appear to be the most lucrative instrument for counteracting the economic deficit. On the one hand, this can be attributed to the decline in conventional methods. For example, counterfeit money production, smuggling and modern slavery of North Korean citizens abroad have been intensively combated by the international community.7 In addition, a correlation can be seen between the increased investment in the nuclear weapons program and the rising quantity and quality of cyber operations. Procurement tactics in cyberspace are difficult to prevent due to the opacity and immateriality of the domain. Actors can operate undetected and largely unpunished as well as plausibly deny accusations. Furthermore, the cost-benefit ratio is in the attackers' favor. Active countermeasures (such as hackbacks) against the DPRK are largely ineffective, as North Korea offers hardly any attack surface due to its low level of digitalization. It is suspected that the USA has occasionally disrupted North Korea's attack infrastructure, but without any discernible success. To gain a theoretical insight into the state's motivation, the Songun Doctrine (military first), which has determined the regime's political actions since 2009, is essential. The doctrine prioritizes the nation's readiness to defend itself in the face of perceived threats. State resources are primarily invested in the DPRK's defense apparatus, with the nuclear weapons program at its core. The basic idea behind the Songun Doctrine is the interaction between a strong military and economic prosperity. According to the doctrine, a strong arms industry should generate sufficient financial resources through exports of military equipment and at the same time guarantee the territorial integrity of the state. The country's elites, which also include the cyber units, are officially primarily active in the defense sector. It is therefore in line with the doctrine that the majority of investments and industrial espionage operations serve to promote the military. Organization The organization of the North Korean cyber groups cannot be clearly determined due to various contradictory statements. However, it is known that the cyber units are subordinate to the Korean People's Army, whose commander-in-chief is the "Supreme Leader" Kim Jong-un. The majority of the known actors are said to be based in Bureau 121 of the General Bureau of Reconnaissance (RGB) military intelligence service. The units assigned here include the Lazarus Group, Bluenorrof and Kimsuky.8 It is also possible that parts of the cyber apparatus are subordinate to the Ministry of State Security. Of central importance alongside the RGB is Bureau 39, which is said to be responsible for the conventional generation of financial resources. Due to the common objectives of the organizations, it can be assumed that there is operational cooperation. Recently, a change in the organization and responsibilities of the actors has been observed. While in the past the groupings operated independently of each other, a merging of the units has been evident since 2022. There has been an exchange of responsibilities and instruments between the players, which suggests a changed (division of labor), more efficient and resource-saving cooperation. The training and further education of the units takes place both at universities in the DPRK and in China.9 A key feature of the North Korean cyber organization is the strategic deployment of units disguised as IT specialists abroad. The actors operate from their respective locations, which makes attribution more difficult and reduces state costs. Outlook The North Korean regime will continue to pursue operations in cyberspace in order to achieve state objectives and will probably do so even more in the future. Financially motivated operations and espionage in particular are now an essential instrument of state policy. The fundamental motives are also anchored in the DPRK's doctrinal system. The country's missile and nuclear program requires high levels of investment and technical information. At the same time, the state is increasingly under pressure due to its economic problems. It is therefore difficult to predict how the regime's volatile and impulsive policies will develop in the future. If attacks on digital accounts, crypto marketplaces or digital financial flows continue to prove lucrative, it cannot be assumed that Pyongyang will abandon the procurement of foreign currency through targeted cyber operations. Cooperation between DPRK units and political allies such as Russia, China or Iran has not been observed at times. Inter-state cooperation in cyberspace requires a high degree of coordination and operational integration, which is rather unlikely given the regime's current political interests. The DPRK's activities in cyberspace have not yet posed any particular threat to the Federal Republic of Germany. However, even the slightest erosion of the current tense diplomatic relations between the DPRK, South Korea and the USA could have devastating consequences for the global security situation. In 2019, the United Nations already initiated corresponding steps such as intensified sanctions, public naming and shaming and increased transnational cooperation in order to curb the impact of the attacks and their political effects.10 It is likely that fluctuating cryptocurrency prices or increased platform security measures could counteract the attacks. The security authorities have so far concentrated on the detection and publication of North Korean TTPs (Tactics, Techniques and Procedures). This approach and the wide dissemination of attacker-related information has sometimes proven to be the most effective means of mitigating attacks. However, due to the great importance for state doctrine and finances, it can be assumed that the DPRK will adapt its methods and look for new ways. It is therefore currently important to monitor the approach, strengthen the resilience of the attack targets and prevent the procurement methods in the digital and kinetic space as best as possible with international partners. At present, DPRK actors are only of limited relevance to Germany. Few significant attacks against regional targets have been observed to date. There is currently no indication of a future operational prioritization for Germany. More about this: 1 https://cyber-peace.org/cyberpeace-cyberwar/relevante-cybervorfalle/operation-troy-darkseoul/. 2 Vgl. https://media.defense.gov/2023/Jun/01/2003234055/-1/-1/0/JOINT_CSA_DPRK_SOCIAL_ENGINEERING.PDF. 3 Vgl. https://www.zdnet.com/article/north-korea-has-tried-to-hack-11-officials-of-the-un-security-council/. 4 Ein Beispiel hierfür ist der Angriff gegen einen russischen Produzenten von ballistischen Raketen. 5 In 2017 erfolgte eine massive Ransomwarekampagne unter dem Namen WannaCry, bei der Systeme verschlüsselt und lediglich gegen eine Lösegeldsumme von 300 US-Dollar wieder entschlüsselt wurden. 6 Die sich selbst replizierende Ransomware infizierte 2017 Teile der deutschen IT und richtete merklichen Schaden an. Es ist davon auszugehen, dass die DVRK die Kontrolle über die rapide Distribution verloren hatte und die Angriffe gegen Deutschland Spill-Over-Effekte waren. 7 VN Dokumente: S/2019/691; S/2022/668; S/RES/2397. 8 Lazarus und Bluenoroff sollen für komplexe finanziell motivierte Operationen und Kimsuky für politische und wirtschaftliche Spionage zuständig sein. Zudem wurde Lazarus für unterschiedliche disruptive Angriffe verantwortlich gemacht. 9 Universitäten in China sind u. a. das „Harbin Institute of Technology“. 10 VN Dokumente: S/2019/691 S/2022/668; S/RES/2397. ISBN 978-3-98574-215-8 © 2024 The Author(s). This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by-sa/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by the author(s) or with their consent.

This blog post originated from a recent discussion by Professor Syaru Shirley Lin in the Winston Lord Roundtable Series on Asia, the Rule of Law, and U.S. Foreign Policy, where she debriefed the recent Taiwan elections. Since Taiwan’s first democratic presidential election in 1996, national elections have centered on national identity and the island’s future relationship with China. At present, however, the majority of Taiwan’s population largely identifies as Taiwanese, contrasting sharply with less than 3 percent identifying as Chinese only. This shift in identity, among other factors such as China’s treatment of Hong Kong, elicited a more centrist approach from the presidential candidates in the 2024 elections, pivoting their campaign focus toward domestic policy. The foreign policy platforms of all candidates aligned on protecting Taiwan’s sovereignty while maintaining the status quo and rejecting China’s “one country, two systems” unification formula. The historically pro-independence Democratic Progressive Party (DPP) softened its stance, whereas the Kuomintang (KMT) candidate Hou Yu-Ih and the Taiwan People’s Party (TPP) candidate Ko Wen-je advocated for a more accommodating stance toward China but stopped short of appearing overly friendly. In the 2024 election, marked by a robust 72 percent voter turnout, the DPP’s Lai Ching-te secured the presidency with 40 percent of the votes, but Hou with 33 percent and Ko with 26 percent trailing not too far behind. Ko founded the TPP in 2019 as an alternative to the long-established KMT and DPP. He seemed to have attracted a lot of the younger voters, a demographic that has traditionally supported the DPP, especially Tsai Ing-wen. This likely reflects the frustration of Taiwan’s younger generation with the establishment parties as they are directly affected by Taiwan’s toughest policy challenges, including sustainability, housing policy, and upward mobility. All three candidates brought to the forefront domestic issues, such as unaffordable housing, stagnating wages, an aging population, energy insecurity, and unsustainable entitlements, which stem from Taiwan’s high-income trap. However, the candidates had varying approaches to addressing and funding these challenges. For instance, Lai wishes to advance the Tsai administration’s policy of phasing out nuclear energy by 2025, whereas the KMT and TPP insist on extending the lifespans of Taiwan’s nuclear reactors to meet Taiwan’s increasing energy needs. These inter-party divisions and disagreements are significant because despite the DPP winning the presidency for an unprecedented third term, it lost its eight-year majority in the Legislative Yuan (the DPP won fifty-one seats, the KMT fifty-two, the TPP eight, and pro-KMT independents two). The Lai administration will thus have a weaker mandate to enact its policies. Notably, with none of the parties bagging the fifty-seven-seat minimum required to pass legislation, policy initiatives will inevitably take longer to pass, if at all. The election thus exposed emerging generational and socioeconomic fault lines. By allowing the DPP to gain control of both the executive and legislative branches in 2016 and 2020, voters expected the party to not only safeguard Taiwan’s autonomy but also make Taiwan a more prosperous and healthy society. This outcome of not awarding the DPP the legislative majority likely reflects the electorate’s dissatisfaction with DPP governance along with demand for stronger government accountability and tangible reforms. Many of Taiwan’s domestic issues are features of its high-income trap that will be difficult to solve without strong political will or partisan cooperation. Taiwan's healthcare system, despite its affordability and accessibility, is financially unsustainable, further exacerbated by a rapidly aging population. The three parties will need to agree on how to secure the necessary financial and labor resources. All these challenges prompt the question: Can Taiwan’s political parties rise above their differences to deliver on their promises? Beijing, for one, might be glad to see a more polarized and ineffective Taiwanese government. Three decades of democratic governance in Taiwan has only widened the gap between Taipei and Beijing. When Tsai Ing-wen entered office in 2016, Beijing closed official communication channels, continued isolating Taiwan in international society, enticed 10 countries to switch diplomatic relations from Taiwan to China (Nauru made the switch merely two days after the 2024 election), and escalated its gray-zone warfare. Yet Beijing’s immediate reaction to the election has been surprisingly muted. This deviation from the norm might indicate that Beijing has started to recognize the limits of mere coercive measures in gaining the favor of the Taiwanese people. Besides continued economic coercion, gray-zone warfare, and disinformation campaigns, Beijing will have to recalibrate its strategy to make its Taiwan policy work. The coming years will test the capabilities of both Beijing and Taipei in managing cross-Strait relations. Meanwhile, Taiwanese society has grown increasingly skeptical of the United States, which has been enhancing its political relationship with Taiwan but without enhancing its international standing or offering it tangible economic benefits. Amid rising tensions with China, the United States has dedicated considerable political capital to its relationship with Taiwan through arms sales and defense packages. However, the increased number of official visits to Taiwan has been perceived as largely symbolic. Although an initial bilateral trade agreement was signed in June 2023 under the United States-Taiwan Initiative on 21st-Century Trade, it provides Taiwan with no real market access to the United States. Moreover, U.S, policies aimed at containing China’s economic and technological expansion, especially in the semiconductor industry, continue to negatively impact Taiwan, which relies heavily on the information and communication technology sector for economic growth. Consequently, Taiwan’s semiconductor companies feel squeezed by U.S. policy. The next four years will test Taiwan’s resilience as a democracy in the face of geopolitical rivalry, climate crisis, diminishing socioeconomic prospects, and an aging society while being led by a divided government. The lack of a party majority in the Legislative Yuan will increase government accountability but at the risk of a legislative deadlock. This could further complicate Taiwan’s efforts to push through reforms and balance its interests between China and the United States. While the stakes are high for both China and the United States, they are even higher for the people of Taiwan.