Release of ASPI Strategic Insights 53 – `American primacy: what future?’

The Australian Strategic Policy Institute (ASPI) has released a new assessment of the future of US primacy.

The report’s authors, Rod Lyon and Julia Rabar, argue that the US faces challenges to its global leadership position both within and beyond its borders.  Domestically, a new mood of frugality is stalking the land, driving Americans back towards domestic spending priorities and exerting downward pressure on the US defence budget.  And externally, the US faces a set of rising powers, a greater number of players in the global commons, and uncertainties about its commitment to exposed peripheries. 

There is an increasing tendency to apply a qualifying adjective to the condition of US primacy, whether it’s ‘contested primacy’, ‘patchy primacy’, or some other variant.  Primacy in almost any form is a valuable asset. But as US relative power slips, the US will be drawn into more difficult choices about its own priorities.

Already, the Obama administration seems to be prioritizing its Asia-Pacific commitments. It has made clear that it does not intend to cede the Pacific to anyone.  And both the Libyan intervention and Gates’ speech at the recent NATO summit suggest Washington wants its European partners to carry more responsibility for their own region. Still, we face a more multipolar Asia, where US allies will all be doing rather more to help sustain US influence in the region.  Australia will be no exception to that rule.

The Cost of Defence: ASPI Defence Budget Brief 2011-12

The Australian Strategic Policy Institute today released The Cost of Defence: ASPI Defence Budget Brief 2011-12.

This document has been written to give readers greater access to the complex workings of the Defence budget and to promote informed debate on defence budget issues. 
 
In releasing the document, ASPI defence analyst Mark Thomson said:

This year’s budget shows that the implementation of the government’s 2009 Defence White Paper is continuing to fall behind schedule.

After Defence handed back $1.5 billion this financial year, $3.9 billion of recurrent funding has been cut from across the next decade and $2.4 billion of planned investment in new equipment has been deferred until after 2014.

Nonetheless, the Defence budget will amount to $26.5 billion next year representing 1.8% of GDP.
 
The deferral of investment is due to the slower than planned delivery of existing projects by industry, and the slow commencement of new projects.

This year’s deferrals add to an already unrealistic ‘bow wave’ of investment in the second half of the decade. Further delays are inevitable.

While the cuts to recurrent funding partly reflect the delayed introduction of new capability, it’s increasingly clear that Defence was simply granted more money than it needed in the 2009 Defence White Paper.

The government needs to get its plans for Defence back on track. The future investment program needs to be brought in line with what can feasibly be achieved over the next few years, and steps need be taken to improve Defence’s understanding of its budget.

The time has come to abandon the promise of 3% real growth in defence spending and instead fund Defence on the basis of what they can realistically and sensibly spend.   

Staying the course: Australia and maritime security in the South Pacific

The Australian Strategic Policy Institute today released a new report, Staying the course: Australia and maritime security in the South Pacific.

This report, authored by Sam Bateman and Anthony Bergin, argues that we should develop a comprehensive approach to replace Australia’s Pacific Patrol Boat Program.

Australia has supplied twenty-two boats to twelve island countries for maritime security. The vessels will start reaching the end of their service lives from 2018.  But Australia’s future plans for Pacific maritime aid remain opaque.

The paper argues that air surveillance for the islands should be mainly provided by civil aircraft working under a contractual arrangement managed centrally by a regional maritime coordination centre.

Coastal boats would be operated by the islands at a national level. Two or more might be required by those states with large offshore zones to respond to incidents. Larger vessels should be operated regionally. Their role would be to undertake patrols through the high seas and national offshore zones of the island countries. Three such vessels would be required to ensure that two are on task at any one time.

The total project costs for these boats would be about $300 million, below the approximately $550 million required to replace the existing twenty-two patrol boats with similar vessels.

The paper argues that a regional maritime coordination centre should be established for coordinating regional responses. Apart from Australia, the US, France, New Zealand, Japan and even China could assist in funding such a centre.

The paper finds no evidence of any significant progress towards addressing Australia’s future contribution to maritime security in the South Pacific.

The paper argues that Defence should be leading this work and not the Australian Customs and Border Protection Service.

A reliable partner: Strengthening Australia – Timor-Leste relations

The Australian Strategic Policy Institute (ASPI) today released a report on Australia – Timor-Leste relations. Timor-Leste is a fledging nation wrestling with the challenge of forging a viable state. It’s entering a very complex period in the lead up to the 2012 elections. The country’s leaders inherited a difficult situation, reconstructing a devastated country and healing deep-seated community divisions. The economic and social challenges facing Timor-Leste are daunting, although the exploitation of oil and gas revenues offers a potential lifeline.

This report sets out a number of the challenges for the country, such as possible domestic unrest, transnational crime, food security, land reform, law and justice issues, security sector reform and maritime development. The situation is made more complex by the large number of donor states and the need for Timor-Leste to coordinate their assistance.

While the challenges facing Timor-Leste are significant, the country has defied the odds before and prevailed. With targeted and sustained international support, it has every chance of doing so again.

Australia wishes to have an equal relationship with Timor-Leste, working together to advance our common interests. This year is the tenth anniversary of Australia’s Defence Cooperation Program with the country, one of our largest cooperation programs. The DCP will underpin Australia’s long term defence relationship with Timor-Leste.

A central message of this report is that Australia stands ready to assist Timor-Leste as a reliable partner, not just to ensure the state’s own survival but also to strengthen regional security.

Among the recommendations are:

• Rather than drawdown entirely after the 2012 elections, the ADF should maintain, subject to Timor-Leste agreement, a proportionately appropriate military group, to assist with F-FDTL training.

• Develop an apprenticeship-style program that employs local labour on internationally funded programs, placing equal emphasis on skills development and infrastructure outcomes.

• Australia, through AusAID, should assist Timor-Leste in developing an Agricultural Data and Planning Unit based on the use of GIS technology.

• Australia should take the lead in initiating regular meetings between the littoral countries on maritime security in the Timor Sea. Procedures for information sharing to provide maritime situational awareness at the regional level should be on the agenda.

A Better Fit: National Security and Australia’s Aid Program

The Australian Strategic Policy Institute (ASPI) and the Foundation for Development Cooperation today released an Independent Task Force report that argues that Australia’s aid program should be better fitted to enhance Australia’s national security. The Task Force panel comprised of distinguished Australians with deep experience in public policy, development, business and national security.

Australia’s aid program is likely to double in the next four years; the program will increase from its current level of 0.33 percent of gross national income to 0.5 percent of GNI by 2015-16. Our aid program should become a more important element in Australia’s security strategies. AusAID needs to be brought more into decisions about national security.

The Task Force recommends that:
• The Australian Government should put more effort into explaining how Australia’s aid contributes to national security by preventing potential threats to the Australia developing. Australia should give higher priority to security in its aid initiatives in those cases where fragile states request it. 
• AusAID’s Office of Development Effectiveness should have a statutory role and the Parliamentary Joint Committee on Foreign Affairs, Defence and Trade should establish a sub-committee on the aid program to provide parliamentary oversight.
• Australia should follow the example of the US in conducting a Quadrennial Diplomacy and Development Review which would enable government to re-examine the aid program every four years, paying attention to the links between our aid effort and national security.
• Australia should establish a new Minister for Overseas Development Assistance in the Foreign Affairs portfolio. 
• Australia should maintain the new aid commitment to Africa, but not at the expense of the Asia-Pacific.  
• Australia should maintain its aid focus in the South Pacific, an area where China is fast growing in importance as an aid donor, investor and trade partner; Australia has compelling security interests to remain predominant in this region.
• Australia should maintain its aid commitment to PNG that’s set to rise by as much as 50% over the next four years.
• An increasing aid program provides the opportunity to expand Australia’s spending on climate change adaptation initiatives in Pacific countries.
•  A separate security sector of the aid budget should be created to give recognition to the increasing importance of aid-security cooperation in the aid program and to provide greater transparency about aid expenditure by agencies such as the Australian Federal Police.
• Australia needs      for a coherent government strategy to enhance civil-military cooperation as the aid budget grows.

Sharing Risk: Financing Australia’s disaster resilience

The Australian Strategic Policy Institute (ASPI) today released a Special Report  that argues that it’s time to start thinking strategically about how we can reduce future losses from natural disasters and aid victims in their recovery efforts.
We should be asking fundamental questions about how private insurance and government assistance can be better leveraged to help communities recover.

The paper makes nine recommendations to strengthen the role of insurance for Australian disaster resilience including:

*establishing a regular dialogue between the insurance sector and state and federal governments to allow both sides to look at long-term disaster mitigation and recovery strategies.
*encouraging governments and insurers to work to develop programs that enhance financial literacy as a way to reduce disaster losses and cost-effective ways for individuals to be financially rewarded for taking measures to safeguard their properties.
* supporting mortgage lenders to require a property to have full insurance coverage against natural hazards and for this to be well enforced.
* implementing the Henry Review on tax that specific taxes on insurance products be abolished
*embedding mitigation efforts with disaster assistance funding to reduce risk exposure for communities and insurers
* conducting comprehensive landscape assessments to ensure insurance premiums are based on risk and thus send a signal to people to reduce their vulnerability to major disasters.
* urging the Council of Australian Governments (COAG) to commission a study on initiatives to enhance the take-up of insurance cover and examine various schemes to encourage resilience through insurance arrangements 
We need a new approach to financing the costs of natural disasters and encouraging those living in high-risk areas to be better prepared. The reality is that all Australian taxpayers will have to bear a share of this cost.

The authors are Dr Anthony Bergin, Director of Research Programs, Australian Strategic Policy Institute, Edward Mortimer, Research Analyst at ASPI and Rachel Carter, Associate Lecturer in Law, Latrobe University.

Australia and South Korea: Middle power cooperation and Asian security

The Australian Strategic Policy Institute (ASPI) today released a new Strategic Insights paper on the future of Australia-South Korea security cooperation. This report, authored by Carl Ungerer and Simon Smith, provides a clear-eyed assessment of the small but productive role that an expanded bilateral agenda can play in maintaining regional peace and stability.

Ungerer and Smith explain why, until recently, Australia and South Korea have shown little interest in developing a more comprehensive strategic relationship. ‘Tectonic shifts’ in our region, however, have convinced policymakers in Seoul and Canberra of the value of new forms of security cooperation.

The authors maintain that South Korean President Lee Myung-bak hopes to transform his country into ‘a respected middle power with sufficient clout to effect change on the global stage.’ Greater Korean participation in international security initiatives will create new opportunities for collaboration, the report argues. Australia has already capitalised on this momentum, signing the Joint Statement on Enhanced Global and Security Cooperation with South Korea in March 2009.

Ungerer and Smith claim that building better habits of security dialogue and cooperation ‘will require a carefully balanced assessment of where and when our mutual interests coincide.’ They suggest three broad areas of security cooperation for consideration: joint activism in regional security forums, assistance with post-conflict and stabilisation operations, and strengthening cooperation among the ‘spokes’ of the San Francisco alliance system.

While the potential gains from an enhanced Australia–ROK strategic partnership would be sizeable, Ungerer and Smith warn that expectations should be tempered by the evolving complexities of the Asia-Pacific region. The barriers to new forms of security cooperation are considerable, and political leadership will be crucial if a new vision for the relationship is to be realised.

Carl Ungerer is the Program Director (National Security Program) at the Australian Strategic Policy Institute.

Simon Smith is a Research Analyst at the Australian Strategy Policy Institute.

Southeast Asia: Patterns of security cooperation

The Australian Strategic Policy Institute (ASPI) today released a new report which explores the changing patterns of security cooperation in Southeast Asia. Strategically, Southeast Asia sits at the intersection of the wider world and Australia’s local neighbourhood; what happens there matters to Australia. But the broader Asian security environment is in flux, and an era of strategic quiescence in Southeast Asia may be drawing to a close.  Security trends there are increasingly being shaped by a set of global and broader Asian concerns as well as local ones. In consequence, traditional patterns of strategic influence and cooperation are shifting in Southeast Asia.

In this paper, Professor Carl Thayer from the Australian Defence Force Academy ‘unpacks’ four patterns of strategic influence in the region, assessing the interactions between them and what they mean for Australian strategic interests. Those patterns increasingly overlay in new and complex ways, ways that might undermine the stable, consultative Southeast Asia with which we have become so familiar.

What can Australia do?  Over the next five to ten years, we are likely to become much more involved with strategic developments in Southeast Asia, working where we can to reinforce patterns that best serve our interests.  That would include working to enhance practical multilateral security cooperation where we can, encouraging and supporting a larger US role in the region where we can, and building hard-power strategic links of our own to regional partners to bolster Southeast Asia’s own strategic weight.  We should be exploring opportunities for closer strategic partnerships with key Southeast Asian states, and be willing to invest the time, attention and resources that it will take to turn those partnerships into genuine strategic assets.

Carl Thayer is widely acknowledged as one of Australia’s experts on Southeast Asia, and the author of over 400 publications.

Australia’s National Security Institutions: reform and renewal

This Special Report, authored by Carl Ungerer, examines the recent evolution of Australia’s national security institutions.  
The report highlights the major changes to Australia’s national security institutions since 2008 including the shifting conceptual foundations for policy making, new power structures and changes to the way in which our national security institutions are funded and organised. The paper argues that despite several years of reform, the institutional design for national security policy-making as a whole remains dominated by centralisation and limited coordination.  
In the paper Carl Ungerer argues that, ‘a more appropriate model for Australia’s national security would better align strategy, resources and administrative functions.’
‘Over the next decade, Australia will confront an international security environment that will be more competitive and less amendable to a ‘business as usual’ approach’, he said.
The paper identifies three broad recommendations for building a more integrated policy framework: (1) making networks the main institutional design feature, not departments; (2) placing the functions of the National Security Advisor on a statutory basis; and (3) appointing a special minister of state for national security. 
These reforms are neither complicated, technically difficult or resource intensive, he said.

A natural power: Challenges for Australia’s resources diplomacy in Asia

The Australian Strategic Policy Institute (ASPI) today released a new report, A natural power: Challenges for Australia’s resources diplomacy in Asia.

This report, authored by Richard Leaver and Carl Ungerer argues that Australia’s role as a stable, low-cost supplier of key commodities to the emerging great powers of Asia, China and India, gives Canberra a greater diplomatic bargaining tool than previous governments have been willing to acknowledge.

The report makes four key recommendations:

• Australia should reassess the idea that commodity marketing is a purely commercial issue that should be removed from state intervention

• Australia should immediately raise the current bilateral discussions with China on a free trade agreement into a ‘strategic economic dialogue’ that would aim to produce acceptable principles for foreign direct investment as well as greater stability in iron ore trade

• Australia should then seek to broaden that bilateral dialogue into a global campaign directed against speculation in commodity markets

• Australia should move to deepen our strategic partnership with India through the direct sale of uranium.