Tag Archive for: Donald Trump

Indonesia, Australia and the coming Trump challenge

Image courtesy of Flickr user Swaradila Weesy.

Much of the speculation about the implications of a Trump presidency for Asia suggest at least some degree of US retrenchment from the region. Former Australian foreign minister Gareth Evans captured that pervasive sense of unease in The Strategist. Australia ‘could no longer take coherent, smart American leadership for granted’, he argued. We should ‘assign much higher priority to building closer trade and security ties with Japan, South Korea and India, and especially Indonesia our huge near-neighbour.’

But how much can Australia realistically expect of Indonesia right now? With the uncertainties posed by the election of Donald Trump and Beijing’s divide et empera strategy with ASEAN states on the South China Sea proving increasingly effective, rarely has there been a time where Indonesia’s leadership in Southeast Asia has been so critical to managing tensions and the underlying flux in the regional distribution of power.

The problem is that Indonesia’s enduring de facto leadership of ASEAN, critical to the organisation’s ability to forge a consensus on South China Sea issues and moderate Chinese influence, appears to be on the wane.

More broadly, some of the core principles of Indonesia’s foreign policy seem to have weakened under the Jokowi government. Diplomacy is now more concentrated on Indonesia’s economic development and infrastructure priorities, and as a result, it’s more transactional in nature. Less obvious is Indonesia’s strong normative leadership and activism in Southeast Asia, a characteristic of the Susilo Bambang Yudhoyono presidency.

There’s no doubt the tensions surrounding China’s expansive South China Sea claims present a pressing policy dilemma for Indonesia. China’s intrusions into Indonesia’s territorial waters around the Natuna islands are an obvious threat to national security, just as they are to regional stability. And that all takes place amidst the broader challenge for Indonesia’s bilateral relationship with China—preserving a harmonious relationship that will continue to facilitate significant Chinese FDI and trade flows.

As a non-claimant state and honest broker in Southeast Asia’s maritime territorial disputes with China, Indonesia’s government had previously been circumspect about those confrontations. But the last two incidents in particular, where a China Coast Guard vessel rammed a Chinese fishing vessel to free it from being detained by Indonesia authorities in March and where an Indonesian Naval Corvette fired warning shots in the arrest of an illegal Chinese fishing vessel in June, resulted in a public backlash against Beijing.

Although, the Indonesian government seems determined to defend its maritime sovereignty against Chinese incursions, the question is whether the Jokowi administration will seek a bilateral modus vivendi with China over its Natuna waters for the sake of preserving the vital trade and investment relationship, and in doing so, neglect its larger leadership obligations in ASEAN.

Such concerns are shared by Indonesia’s foreign policy community. In July, a number of Indonesia’s prominent foreign policy intellectuals, journalists and practitioners put their names to a ‘Statement on the South China Sea ruling’. It was an expression of concern in response to the arbitral tribunal’s ruling on the Philippines’ legal complaints against China. The statement referred to ‘ASEAN’s Dimming Lights’ and its ‘growing marginalisation in managing the tension in the South China Sea.’

The signatories’ concerns about Indonesia’s lack of leadership on the South China Sea issue within ASEAN were made abundantly clear:

‘An independent and active foreign policy does not give Indonesia a free pass to watch a strategic turmoil unfolding in its environment from the sidelines. In fact, the active component in our bebas-aktif doctrine requires us to take the leadership mantle and contribute to regional peace.’

The statement can be understood as the manifestation of frustrations with Indonesia’s anodyne 130-word official response which one signatory described as ‘bland’.

Since ASEAN’s founding in the early years of the New Order regime, Indonesia has viewed its national resilience (ketahanan nasional) as inextricably linked to the stability and autonomy of Southeast Asia. Indonesia’s foreign policy elites had conceived of ASEAN as the soko guru (cornerstone) of Indonesia’s foreign policy. In contrast to previous governments, however, Indonesia’s current political leadership appears to place less emphasis on Indonesia’s traditional conception of the regional order and Indonesia’s leadership in it. It’s increasingly obvious that without Indonesia’s strong leadership in ASEAN, China can successfully co-opt smaller ‘client states’ Laos and Cambodia through economic leverage to ensure South China Sea concerns are downplayed in ASEAN meetings. In Indonesia itself, meanwhile, links between cabinet-level politicians and Chinese business interests haven’t escaped scrutiny.

To complicate things further, the Widodo-led government is preoccupied with worrying domestic political instability. Recent violence perpetrated by Islamists is made far more dangerous by its conflation with higher-level machinations among Jakarta’s political elites ahead of the 2017 Jakarta gubernatorial and 2019 presidential elections. With ‘coup’ rumours swirling, or at least suspicions that protestors might attempt to oust the president, the Jokowi government has good reason to be concerned about national cohesion.

Faced with the prospect of a diminution of US strategic primacy in Asia, it’s natural Australia would turn to Indonesia as a fellow middle power with commonalities in strategic outlook, as Evans suggests. But given Indonesia’s high stakes domestic politics and apparent disinterest in reclaiming ASEAN’s leadership mantle, Australia would do well not to expect too much of its near neighbour.

Donald Trump and coming scrutiny of ANZUS

Image courtesy of Flickr user nathanmac87.

A constant in Donald Trump’s electoral pitch was that wealthy allies had for too long relied on America’s willingness to backstop their national security and harvested the long-term economic rewards of keeping their own military effort comparatively modest.

We’ve no real idea at this point where a Trump administration will see the balance of American interests on this issue. We have to be optimistic that the President-elect will recognise that the way he was inclined to frame this question when he was a candidate was simplistic and not especially helpful. Americans won’t want the US to be portrayed as a ‘gun for hire’, a mercenary power that charges what it thinks it will cost to sustain a military posture that will deter and, if necessary, defeat the opponents of an ally; if the ally doesn’t pay their full share, the deal is off.

In fact, the pact between allies is profound and quite remarkable—a willingness to accept that a nation’s most treasured asset, its sovereignty, should depend to some degree on another state and a willingness to risk a state’s most treasured resource, the lives of its citizens, to protect the sovereignty of another state. The considerations that each party brings into play to assess the merits of an alliance relationship are broad and intangible—not the sort of thing that anyone can readily put a dollar value on.

It’s also the case that for a long time now the US has told its allies that the willingness of Americans to sustain these arrangements would be more assured if there was a visible measure of burden-sharing. Most allies have responded positively. This will present Trump with a dilemma. He won’t want to portray the US as a ‘gun for hire’ but neither will he want a major plank of his electoral platform to be reduced to the mundane: marginally stronger enforcement of a well-established practice.

The current reality is that the network of US alliances is still widely perceived to be an important part of the fabric of security in key regions of the world—a complex tangle of interdependencies and positive and negative forces that yields confidence in a condition of order and stability. Put simply, it’s about confidence that tomorrow is going to be very much like today. That’s a tribute, above all, to US diligence and skill in managing these arrangements through all the trials that the passage of time and the tendency of nations of follow singular developmental paths could throw in their path. At any point in the past 70 years, Washington has been able to say of all these arrangements that both sides wanted it that way.

The core question is whether Donald Trump’s message is that America wants out. The most surprising thing about this question is why has it’s taken so long! At this point, however, we simply don’t know where the US will come out on this issue. That said, the simple fact that the question was so clearly raised in the recent US elections and so strongly, if not unambiguously, answered almost certainly means that it’s too late to go back to the status quo ante. These alliance relationships will be reviewed and recast in various ways and these processes will reverberate through the security structures around the globe.

ANZUS won’t escape scrutiny. We’re a cheap ally in the sense that we’ve not had and don’t have an acute and/or enduring threat to our national security. The Pentagon hasn’t had to factor possible contingencies in and around Australia into planning for the overall size of its armed forces or the balance of particular capabilities. On the other hand, Australia and Australians have never hesitated to acknowledge the deep sense of comfort we gain from knowing that the US is, for compelling reasons of its own, deeply committed to peace and stability in the vast Indo–Pacific arena and from the fact that we have a formal alliance with them.

Donald Trump hasn’t changed geopolitics. There’s a strong likelihood that America will remain a dependable force for order and stability in the Indo–Pacific. That’s what we should be aspiring to protect even as we join with like-minded regional powers to build new processes and structures to preserve the peace. We have a good story to tell on the alliance front and, to the extent it remains relevant, we should continue to tell it.

Above all, we shouldn’t panic and rush to the extremes. It’s quite silly to relish striking out on our own, as if ANZUS has been an unwelcome imposition. And if Beijing decides that the great rejuvenation of the Chinese people requires taking something that we or a close friend value highly, where do we find the countervailing power? Neither should we go to the other extreme and make silly promises to America that even Washington will see we mightn’t wish to keep, as some have already started to do. We must remember that alliances work so long as the participants remember that they are allies because they agree, not that they should agree because they are allies.

Cyber wrap

The future of US cybersecurity policy remains uncertain as the Trump administration begins to take shape. On Friday Trump named Michael Flynn, previous director of the Defense Intelligence Agency, as his national security advisor in the White House. The retired Lieutenant General has strong views on bolstering US offensive cyber capabilities and has been described as a ‘cybersecurity hawk’. Meanwhile, Director of National Intelligence James Clapper handed in his resignation last week, effective from 20 January 2017, after six years in charge of the 17 different agencies that make up the US Intelligence Community. His intention to call it quits at the end of President Obama’s term was long expected but the announcement represents another significant opportunity for the president-elect to shape US posture in intelligence and cyber spheres. Concerns have also been raised by cyber policy and tech professionals in light of Trump’s campaign rhetoric foreshadowing increased barriers to digital trade.

Fortunately, US tech and policy development appears to have strong momentum. This week, Elon Musk proposed a network of satellites to provide global internet access and Microsoft announced a doubled investment in quantum computing research. The US is taking rapid steps to keep abreast of such changes. For example, the National Institute of Standards and Technology recently released a new cybersecurity framework for small businesses providing SMEs a step-by-step guide to protecting themselves online. The Federal Trade Commission has also just published a report on the ‘Sharing Economy’ of app-based services such as Airbnb and Uber.

Privacy concerns have prompted Facebook to stop collecting WhatsApp user data from its European customers. Last month 28 European data collection authorities sent an open letter to WhatsApp’s CEO urging the company to pause the flow of user information to its parent company. Germany has already ordered that WhatsApp cease the data flow, which Facebook was ostensibly collecting for marketing and advertising purposes, and the UK, France and Italy are conducting their own investigations. European regulators noted ‘serious concerns’ in their open letter over those changes to WhatsApp’s Terms of Service, highlighting its contradiction with previous public statements that affirmed no data would be shared between the two companies.

Google has also had a run-in with European regulators after they were accused of using the Android operating system to ‘crush rivals’ by blocking them in online search advertising. The European Commission has been investigating Google for six years after complaints from competitors, and CEO Sandar Pichai met last Friday with the EU’s Competition Commissioner and the European Commissioner for Digital Economy and Society to discuss the problem after the company issued a formal rejection of the European’s claims earlier this month.

Things are looking more positive between Chinese regulators and industry with two of the country’s biggest tech companies, Alibaba and Tencent, publically stating their support for China’s controversial new Cyber Security Law. Speaking at the 3rd World Internet Conference in Wuzhen, Alibaba’s Vice President noted that the company is working with law enforcement agencies to monitor content, and a Tencent executive stated that company has removed 80,000 videos from its site this year. President Xi also addressed the conference, calling for improved cooperation between states on internet governance and respect for cyber sovereignty. Both public and private sector leaders at the conference emphasised the security risks of cyber terrorism and the cited proliferation of false news during the US election as justification for tighter national and international control over the internet.

Security concerns over Chinese company Lenovo have surfaced after the ABC revealed that the Australian National University’s National Computational Infrastructure is planning to procure software and hardware from the company. ANU and Lenovo have both defended the plans, noting that the US government has approved Lenovo’s US acquisitions and the US Department of Defense has no restrictions on Lenovo products. The National Computational Infrastructure describes itself as ‘home to the Southern Hemisphere’s most highly-integrated supercomputer.’

And finally, a survey of 2,000 people in the US has found that 40% would prefer to skip sex for a year if it meant their personal information was protected from hackers. While this seems a bit surprising, the finding that 41% would give up their favourite food for a month rather than reset all their account passwords indicates that laziness is probably equal to privacy concerns in the driving force behind American attitudes to cybersecurity.

Dangerous platitudes about Trump

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Much of the commentary in Australia since the US election has reeked of dangerous platitudes. A lot of ‘experts’ (none of whom forecast a Trump victory) are asserting that nothing much will change: President Trump will be much more reasonable than the misogynistic, lying demagogue of the election campaign. Moreover, the checks and balances of the US political system and the decision-making limits of the President will stymie much of Trump’s more outrageous boasts that he’ll change everything.

While it’s understandable that Prime Minister Turnbull and Foreign Minister Bishop are trying to reassure us that they can work with Trump and that our shared values and interests with the US will ensure that the alliance will endure, I do hope that they’re instructing their departments to prepare for outcomes far worse than such complacent assertions.

I’m certainly not arguing here that they should go as far as former Prime Minister Paul Keating’s view that we should now get out of what he terms the ‘sacramental’ US alliance. Has he got any idea of just how dependent on the Americans we are now regarding American support for ADF operations, weapons and targeting since his time as Prime Minister over 20 years ago? For example, the combat system and weapons for the Collins and the future submarine will be entirely American. And would he think about the cost of ‘cutting the tag’? We’d have to triple or quadruple our defence spending without the alliance, meaning mean an additional $70–100 billion a year.

Former Foreign Minister Gareth Evans provides more measured advice when he says that Australia shouldn’t walk away from our alliance with the US but that ‘we will need to be more sceptical of American policies and actions than in recent decades’. He says that ‘Australia should become more self-consciously independent, and assign much higher priority to building closer trade and security ties’ in our own region. Those options will become more compelling if we find ourselves faced with an isolationist America.

Of course, we need to wait and see just what President Trump actually does. But in the meantime, Malcolm Turnbull needs to instruct Foreign Affairs, Defence and the Intelligence Community to urgently undertake a series of ‘what if’ contingency plans. They should include how we develop a more self-reliant defence posture and how we can quickly expand our Defence Force if we have to prepare to defend ourselves alone more often. We now need to put a lot more effort into analysing the United States.

Peter Jennings seems to be in agreement with that approach, but he also states we need to stick by our core alliance ‘even when the president is not as user-friendly as some of his predecessors’. That may turn out to be far too relaxed an approach to someone of Trump’s unpredictable personality, especially if he challenges NATO, which he has described as obsolete, encourages Japan to acquire nuclear weapons, enters into a trade war with China or cosies up to Russia. We’re entering uncharted waters here and anybody who argues that not much will change needs to have a drastic rethink. We need a Plan B, which is about having a more independent alliance stance forced upon us. That means we might have to change from being the ally who can never say no (the UK, Canada and New Zealand have all said no at one time or another without breaking the alliance).

Former ambassador to China, Geoff Raby, believes that ‘it’s likely that the entire direction of US foreign policy will change’ and that ‘it is likely to mark a return to great power relations with much less emphasis on alliances’. He thinks that ‘just being close to the US will not be sufficient for our foreign policy’ and that ‘Australia will need to return to the activist and creative foreign policy approaches that we pursued when the world was last centred on great power relations, during the Cold War’. But that isn’t an accurate reflection on where Australia stood in the Cold War when, in my experience, we were absolutely committed to conforming to the US when it came to our national security policies, not least when Malcolm Fraser was Prime Minister.

Right now, we could do a lot worse than follow the advice in the current issue of The Economist to be wary of Trump. It argues that Trump ‘shows no evidence that he has the mastery of detail or sustained concentration that the Oval Office demands.’ Nowhere will his judgement and experience be more exposed than over the control of America’s nuclear arsenal—in a crisis, decisions fall to the President alone.

The Economist hopes that Trump proves those ‘doubts groundless or that, if he fails, a better president will be along in four years.’ The danger, they note, is ‘that disillusion with Trump will only add to the discontent that put him there in the first place,’ which would ‘pave the way for someone even more bent on breaking the system.’ That’s sound advice and it means that we in Canberra should keep our powder dry.

After the shock: recalibrating for President Trump

Image courtesy of Flickr user Susan Melkisethian.

It was hard to overstate the shock in Washington and here in New York the day after the US election. But now it’s time for sober analysis of Trump’s possible foreign and defence policy, and it’s difficult to know where to begin. While Trump has made statements anathema to the foreign and defence policy establishment, he has offered little in the way of detailed policy. He is also known to have said privately—and his advisers have assured many—that his ideas are more ‘guideposts’ than blueprints.

So it’s unclear what his foreign and defence policy will look like. Given his business background, many issues may well be negotiable, as we are already seeing on healthcare reform. Trump comes from the deal-making world of putting forth far-reaching ambit claims as an opening position, then moving closer to the middle. This trait could account for some of his more radical campaign pronouncements, such as some of his immigration proposals. He could also do this as President, which would be a profound departure from the precisely-worded positions of traditional foreign policy. A compounding variable is the importance of face to this President-elect. The world will need to recalibrate how to conduct affairs of state with the US.

Still, some of Trump’s ideas are more baked in than others, including on trade and alliances. He’s long held a transactional view of alliances and believed the US pays too much for allies’ security—a view that resonated with his supporters (and even President Obama had complained about freeriding). Allies will almost certainly be expected to contribute more to their own and regional security. President Trump will likely have a narrower conception of America’s national interest than his predecessors.

While Trump has proven it possible to win an election being resolutely off piste and with a small group of advisers, it’s harder to govern that way: many more people need to be drawn in to craft an agenda and run the government. The fact his candidacy was so light on detail means his appointments are even more consequential than usual. But many Republican foreign policy experts disavowed Trump in open letters earlier this year. There is, for instance, a lack of senior Asia hands among the current Trump cohort who could give the region a steady policy focus without distraction from domestic, Middle Eastern and European imperatives.

A few may now step forward to serve, often out of a desire to keep the country on an even keel. But with a hastily-assembled team fleshing out detail on the fly and choosing between often contradictory positions, the world should prepare for policy lurches rather than steady policy roll out.

There are some promising initial signs, including reassuring calls to Tokyo, Seoul, Canberra and London, and President Obama’s description of the President elect’s interest in sustaining ‘core strategic relationships’, including a commitment to NATO. A number of Republicans rallying around Trump will stress the enduring benefits of alliances in today’s complex security environment: how they amplify US power projection, deter conflict and restrain allies from destabilizing postures. Some will also make the economic case for global engagement to this businessman-President elect: that it is cost effective for the US to maintain strong alliances and a forward presence, rather than reinsert into theatres and rebuild relationships in a crisis.

But US allies are already reassessing their security postures. This scrutiny has laid bare the fact that some US security guarantees were becoming less structurally credible than during the Cold War, and credibility has strained further with Trump’s questioning of US alliance obligations. Wholesale weakening of America’s alliance system rebounds on all allies, because it undercuts stability, as other allies’ postures change and rivals are emboldened.

Each alliance will have its own trajectory in the face of a Trump Presidency, depending on whether Trump’s view of alliances evolves in office and his perception of each ally’s reliability, geostrategic importance and level of burden-sharing. It will also depend on the personal relationships he and his senior team forge: the fraying US–Philippine relationship under Duterte demonstrates the impact individuals can have on alliances.

At this stage, Australia seems relatively well-positioned with the incoming Administration. Trump didn’t question ANZUS during the campaign, and his team seems seem well-disposed towards Australia (though Trump has little business experience of Australia). Prime Minister Turnbull and the President-elect appear to have had a constructive businessman-to-businessman conversation, and discussed the importance of America’s ongoing engagement to Asia–Pacific stability.

But it’s ever more important for Australia to view ANZUS as a tool to further the national interest, not as an end in itself. Regional military modernisation and the shifting strategic environment mean Australia still needs the US: without America’s strategic protection and access to US intelligence and defence platforms and systems, Australia would need to spend a great deal more on defence. Canberra must ensure ANZUS serves Australia’s interests, including helping to maintain regional stability. That requires counseling Washington on remaining constructively engaged in the Asia–Pacific and finding pathways for China into the regional order.

It’s also vital for Australia to enmesh ANZUS more squarely within the burgeoning web of Asian linkages by strengthening relationships with other Asian nations, including Indonesia, Japan, South Korea and India.

Donald Trump’s election has ushered in an unstable period, as the world’s hitherto linchpin becomes less predictable and states recalibrate accordingly. It’s going to take a while for the shock to wear off.

Trump could make the pivot great again

Speculation regarding the implications of Donald Trump’s win for Asia has been, to be charitable, all over the map. Some argue that Trump’s victory is a win for China because he’ll seek to cut deals with Beijing, leaving America’s allies, Australia included, in what can only be described as part of a growing Chinese sphere of influence. In fact, many scholars and analysts in China, backed up by my own conversations with Beijing-based international affairs experts, seem to think that President Trump’s ‘America First is code for ‘Asia last’—with Washington tending to its own domestic affairs for the foreseeable future.

But those who are likely to advise Trump on Chinaor who are already doing so—are likely reading such analysis and summing it up in one word: nonsense.

Having worked closely with many of the people who will be guiding the new administration on national security matters, at least according to the various news reports, I come bearing good news. Judging by their previous work, the various scholars, experts and politicians likely to guide President Trump on China are all of a mind to take a firmer line against Beijing. In fact, there’s every reason to believe a Trump administration will work hard to do what President Obama wouldn’t: lead a pivot to Asia that seeks to constrain Chinese actions, with a particular focus on reinforcing the relative decline in America’s military might.

I would offer a four-part plan that could operationalise that scheme:

1. ‘Asia First’: Trump must make Asia his top international priority. The alternatives are unconvincing. Russia might be flexing its muscles in Syria and Ukraine, but Moscow faces long-term demographic and economic challenges. With big cuts coming to his military budget, Putin’s power to sway global events has likely peaked. ISIS remains a long-term challenge for the Middle East, but the group is slowly but surely losing territory and the means to attack the West in an existential fashion.

An ‘Asia First’ approach recognises that China will present a growing challenge for decades and that America’s most lucrative economic prospects are tied to the region.

2. Reassure allies: Foreign diplomats that I’m in contact with in the Asia–Pacific repeatedly question America’s resolve to not only honor treaty commitments, but even to back its own interests. They see Washington as being obsessed with the Middle East, or as a weary nation looking for the exits.

So how does one fix what is a perception challenge? While there’s no simple solution, President Trump must stick to basics. For instance, he should make sure he attends any regional conference he’s slated for—a sign of commitment President Obama let slide when he backed out of the East Asia Summit in 2013.

He’ll need to build on that, including making new commitments that reinforce the status-quo. For example, if Trump is serious about ditching the Trans-Pacific Partnership (TPP), he’ll need to create new pathways toward stronger economic ties, like with nations such as Vietnam and Taiwan, both of which are keen to ensure they’re not dependent on China for their economic livelihood.

3. Stop useless spin: We all know consecutive US administrations ‘welcome China’s peaceful rise’. Such talk must end. America must clearly state that, while it hopes to partner with Beijing where our interests intersect, it sees Beijing as a competitor elsewhere. More importantly, when China acts aggressively, America must speak up.

4. Time for a bold military strategy. While many felt Obama’s rebalance to Asia was too heavily focused on the military arm, I’d argue that it never went far enough. Beijing has spent the past decade perfecting a strategy to counter US military strengths through its anti-access/area-denial (A2/AD) strategy. And while the Pentagon has championed operational concepts such as Air–Sea Battle to negate Beijing’s efforts, the communications strategies to explain such ideas have been problematic. Air-Sea Battle, for example, is now being replaced by a new plan dubbed JAM-GC, about which, after two years, the most basic details are yet to emerge.

Here’s where a Trump administration can change course for the better, with the US Navy playing a vital role. America must clearly define a much more robust military strategy for weakening Chinese A2/AD. With what is increasingly being seen as the likely nomination of Congressman Randy Forbes as the new Secretary of the Navy, such a strategy could be quickly formulated.

With that plan, a Trump presidency could be a net positive for the region and for America’s allies. At least if you’re looking for a US policy on Asia that will seeks to restrain China’s bullying tendency with hard talk and concrete action.

The Pivot Trumped, Amexit looms

Image courtesy of Flickr user Stuart Rankin.

Five years ago this week, Barack Obama launched the Pivot. Thus, on its fifth birthday, the Pivot expires. This is an epitaph.

The American people have decided and the Pivot is Trumped. Asia confronts Amexit: not a rebalance towards Asia but a lurch away. The Pivot was a work in progress because Asia has made so much progress. The Pivot’s achievements were partial and contested because Asia’s issues are so large. Looking at what Obama and Hillary Clinton were trying with the Pivot offers ways to consider what Trump will do to US policy in Asia—and to the regional settings of Australia’s alliance.

Go back five years to see the stakes. The US President stood in the Australian Parliament on 17 November 2011, delivering a speech marking ‘the 60th anniversary of our unbreakable alliance.’

Beyond alliance, Obama outlined ‘the larger purpose’ of his visit to the Asia–Pacific, to launch a ‘broader shift’ by the US: ‘After a decade in which we fought two wars that cost us dearly, in blood and treasure, the United States is turning our attention to the vast potential of the Asia–Pacific region.’ The ‘new focus on this region,’ he said, reflected ‘a fundamental truth—the US has been, and always will be, a Pacific nation.’ Obama announced a ‘deliberate and strategic decision’ that America ‘will play a larger and long-term role in shaping this region and its future.’ The Pivot ambition was to make the 21st century a US-flavoured Pacific century, not just the century of Asia resurgent. Obama proclaimed it as responsibility and right.

The word ‘Pivot’ wasn’t in the speech. The label was launched the previous month in Hillary’s Foreign Policy article, ‘America’s Pacific Century’. The Secretary of State put it in her first sentence:  ‘As the war in Iraq winds down and America begins to withdraw its forces from Afghanistan, the United States stands at a pivot point.’ In the 5,000 words that followed, ‘pivot’ was used twice more. The Pivot was born.

Hillary claimed creator rights. She saw Asia as pivotal and wanted the US at the heart of a great geo-political and geo-economic shift in world affairs.

Goodbye to that.

The tides that created the Pivot still rise. The headlines have taken an amazing turn, but the trendlines continue. Those trends will pound Trump. As the world’s centre of gravity—economic and military and even political—settles in Asia, the Pivot was a US claim to a large role in making the gravity. More than military might, the Pivot was about partnership, engagement, diplomacy, cooperation, values and norms. Pick how much of that The Donald will adopt.

The Pivot ambition was Robert Browning territory:

‘Ah, but a man’s reach should exceed his grasp,

Or what’s a heaven for?’

The US grasped to shape the contours and course of an increasingly powerful Asia. How to manage relative decline yet reach to maintain relative dominance? No wonder the US military prefers Rebalance—much balancing needed!

The power shifts were dissected in the US National Intelligence Council’s Global Trends, issued 12 months after Obama’s Canberra speech. The Council pronounced the end of the US unilateral moment. The Megatrend prediction was the diffusion of power: ‘There will not be any hegemonic power. Power will shift to networks and coalitions in a multipolar world.’

Networks and coalitions aren’t the language of the US’s 45th President.  Consider the Pivot’s three essentials and what Trump will do to them.

Pivot: stay Asia’s military guarantor and guardian for decades

The Navy is shifting from a 50/50 Pacific-Atlantic split to have 60% of forces in the Pacific by 2020; 60% of the Air Force will be in the Asia–Pacific by 2020. The departing Defence Secretary, Ashton Carter promised: ‘The Pentagon is operationalizing the military part of the rebalance to ensure that the US remains the primary provider of regional security for decades to come.’

The military machinery of Pivot/Rebalance should grind on. And Trump promises the US will maintain the world’s most powerful military. As an American Firster, though, Trump has no interest in being the ‘primary provider of regional security.’ He wants everyone else to pay more.

Pivot: write the economic and trade rules

The Trans-Pacific Partnership is dead. Trump threatens a 45% tariff on China as a currency manipulator. Trade war trumps trade rules.

Obama set the stakes dangerously high with his description of the TPP as the test of US will in his State of the Union Address:

‘China wants to write the rules for the world’s fastest-growing region.  That would put our workers and businesses at a disadvantage.  Why would we let that happen?  We should write those rules.’

The economic importance of the TPP was overstated. But as an expression of US intent it became emblematic. Trump’s victory says the US isn’t interested in writing rules and its will-to-power in Asia wanes.

Pivot: make Asia’s diplomatic weather in partnership with Asia

The Trump weather forecast is for storms and unpredictable gusts.  Amexit won’t be full-blown withdrawal from Asia of the magnitude of Brexit from Europe. This is the Amexit of shrinking ambition and refusal to show up. Anger replaces imagination: can’t pay, don’t care. It’s the Amexit of a US no longer committed to write the rules and run the region, an America less interested in partnerships and building institutions to serve its values.

Trump does deals, not designs.

The 400 page epitaph is Kurt Campbell’s book, The Pivot. His Pivot prescription—‘the future of American statecraft in Asia’—was ‘bolstering traditional alliances, forging new partnerships, engaging regional institutions, diversifying military forces, defending democratic values, embracing economic statecraft.’

Goodbye to that.

Trump: Pax Americana in the Asia–Pacific

Image courtesy of Flickr user Gage Skidmore.

The election of Donald Trump is the political equivalent of a nuclear bomb, an explosion that not only destroys the immediate environment but also scatters radioactive fallout far away, with damage that can last for years.

The first casualties in the US are obvious—Hillary Clinton and the Democratic Party, and the political establishment in the US writ large, although some familiar faces from inside the Washington Beltway will no doubt sheepishly turn up in Trump’s administration.

The potential damage to America’s standing and interest in the Asia-Pacific is also clear. Trump has long been antagonistic towards Japan, starting from the trade wars of the eighties. More recently, he has threatened to impose punitive tariffs on Chinese imports and has said the US Treasury should immediately declare Beijing a currency manipulator.

On national security, Trump has singled out Japan, South Korea and NATO for freeloading on the US, vowing that they will pay a greater share of the cost of American troops on their soil. He seems indifferent to blowing up the postwar status quo, and the prospect of Japan and South Korea going nuclear, to take responsibility for their own security.

All of this is consistent with views Trump has espoused for decades. He is anti-free trade, suspicious of globalisation and unconvinced about Washington’s role as the prime security guarantor in places far from the homeland, in Asia, Europe and the Middle East.

Asked by Playboy magazine in 1990 to describe President Trump’s foreign policy, Trump replied:

‘He would believe very strongly in extreme military strength. He wouldn’t trust anyone. He wouldn’t trust the Russians; he wouldn’t trust our allies; he’d have a huge military arsenal, perfect it, understand it. Part of the problem is that we’re defending some of the wealthiest countries in the world for nothing. … We’re being laughed at around the world, defending Japan.’

All that rings true today. The most damaging impact to Pax Americana in the Asia-Pacific, though, might be in the longer-term fallout rather than the immediate explosions that we’re witnessing now.

For all of the dramatic cycles of US domestic and diplomatic politics in the postwar era, through the Korean and Vietnam wars, Watergate, the strategic drift of the early year of Bill Clinton’s presidency, the disastrous second Iraq war and the financial crisis of 2008, the US has always displayed a capacity to renew itself and its global standing.

The US remains the largest economy in the world by some distance. It still has military and intelligence assets spread throughout the Asia-Pacific, from South Korea all the way down to Australia. In the short-term, Trump can do little to change that, even if he wanted to do.

On top of its hard assets, America also has had huge soft power appeal as an open, vibrant and creative society with intangible ingredients of success that foreigners would love to be able to emulate.

With or without Trump, the balance of power in the Asia-Pacific is in the midst of huge change. Long before the US election, regional nations were increasingly feeling squeezed between the superpower they have long been comfortable with, the US, and its rising rival, China, which would ultimately like to replace it as the regional hegemon.

No nation in the region wants to be forced to choose between the US and China. Nearly all would like both of these superpowers to co-exist and co-operate in a way that benefits all.

Trump, an unpredictable narcissist with zero governing experience, has the capacity to upend that equation in ways that will run down the position of the US and elevate the standing of China. Nations that are already hedging their bets will start instinctively to lean towards Beijing.

In some scenarios, regional leaders could warm to Trump. Long an aficionado of strongmen leaders, he is likely to be generally indifferent to complaints about human rights abuses. Cambodia’s Hun Sen has applauded his win. The Philippines Rodrigo Duterte also issued a positive statement.

As someone who prides himself as an expert negotiator, Trump may also be convinced that he needs to shore up ties with Japan and ASEAN nations to strengthen his hand in dealing with Beijing. Shinzo Abe’s rapid outreach to Trump—he was one of the first foreign leaders to talk to him—suggests he is thinking along those lines too.

But Trump’s longstanding views may push him in the opposite direction. His instinctive reaction in any disagreement is to pick a fight with his opponent. There’s no bigger target in Asia than China, which Trump repeatedly attacked on the campaign trail. That threatens to be a disaster if it gets out of control. A trade war with China, after all, is effectively a trade war with Asia, because of the way that manufacturing supply chains wind their way through multiple countries before finally being shipped from China to the US.

The Trump’s team most important adviser on China is academic, Peter Navarro, who has long demonized China as an enemy of the US. Asked about China, Navarro made no bones about the chances of commercial conflict with China. ‘To those who say Donald Trump will start a trade war, Trump says we are already in a trade war,’ he said, ‘it’s long past time we fought back.’

Trump is largely ignorant of, or indifferent to, the region’s increasingly important regional forums, like the East Asia leaders’ annual summit. Barack Obama and Secretary of State Hillary Clinton made a point of turning up to regional meetings, to display their commitment to the region. Trump may fall back into a pattern of benign neglect.

If Trump succeeds at restoring vitality to the US economy, then the rest of the world might be willing to indulge his vanities and ignore his nastiness. But if he really does mean half of what he said on the campaign trail, then Asian nations will have to think long and hard about a new start themselves.

If Donald Trump’s America will no longer underwrite their prosperity and security, the countries that relied on the US will have to find that support somewhere else.

Cyber wrap

It was announced late last week that Australia’s biggest data breach to date had affected donors to the Red Cross Blood Service. A back-up database of 550,000 donor records (including names, contact details and behavioural questions around general wellbeing and sexual activities) was uncovered by an unknown person scanning websites for vulnerabilities. The information was provided to Troy Hunt, a cyber security blogger and Microsoft regional director, who then passed the information onto cyber incident response team AusCERT. The Red Cross has notified everyone affected by the breach, and believes that all known copies of the database have been deleted and has also engaged IDCARE to provide counselling and assistance to anyone affected by the breach.

The UK released its new five year Cyber Security Strategy yesterday, confirming that it will spend £1.9 billion over five years, previously announced in November last year, to implement new or strengthened initiatives across three key areas: defend, deter and develop. The Strategy warns that the UK will  ‘take the fight to those who threaten us in cyberspace’, and re-identifies a range of opportunities and challenges facing the UK’s cyber security

China’s controversial new Cyber Security Law has reached its final stages of approval, with state media announcing that the Standing Committee of China’s National People’s Congress would vote on the cybersecurity law this week after its third reading. This comes despite protests from foreign governments and businesses concerned about the requirement to store data in China and provide encryption keys to the Chinese government. The law will codify China’s extensive censorship regime and extends government control over key cyber security technologies. The Chinese government has stated that the law is required to protect the security of the state, but many of its provisions will also protect local technology firms and service providers from overseas competition.

Following last week’s DDoS attack on Dyn in the US, Singapore ISP StarHub was affected by two similar DDoS incidents on 22 and 24 October, where compromised devices were used to overwhelm the company’s domain name server. The company, which described the incident as ‘unprecedented in the scale, nature and complexity’,  has instituted a campaign of home visits by company technicians to update the security of customer devices. While the company hasn’t specifically blamed the Mirai botnet, its home visits will be changing default passwords and installing security patches and anti-malware software on customer devices such as webcams. John Ellis of Akamai told the Financial Times that the incident was probably not targeted at StarHub, but blowback from an incident targeted elsewhere that was routed through the company’s infrastructure.

Cyber security researchers from South Korea have reported an uptick in North Korean cyber espionage operations targeting defectors and human rights groups in South Korea. The surge in North Korean operations appears to have begun in August, immediately following the defection of senior diplomat Thae Yong-ho to the UK. The incidents also demonstrate a new North Korean technique of using Twitter to alert the hackers of compromised machines. North Korean hackers use spear phishing emails to trick users into installing malware Once installed, the malware beacons to the hackers via a Twitter account that the computer has been compromised, allowing the North Koreans to issue remote commands and exfiltrate the data they want. The North Koreans have also compromised popular defector chat rooms in order to monitor their communications. The researchers claim to have broken the encryption protecting the identity of the hacker’s IP address and pinged it to confirm that it’s located in Pyongyang.

And finally, in the same week that the FBI has announced that it’s again investigating emails linked to Hillary Clinton’s private server, it’s also emerged that the US domestic intelligence agency may be examining a ‘secret server’ owned by Donald Trump. Slate has interviewed a group of academics in the US who analysed the traffic between a Trump server in Manhattan and a Russian server. Their analysis noted that the activity aligned with office hours in Moscow and New York, that the very large server carries only a very small amount of traffic, and is set up to only receive messages from a limited range of IP addresses, indicating an attempt to shield the communications from scrutiny. Separately, Mother Jones has reported that the FBI has received information contending that the Russian government has tried to co-opt and assist Trump. The metadata analysis doesn’t provide a smoking gun, but the academics believe it strongly suggests that Trump is covertly communicating with the Kremlin.  The Trump campaign has denied any links to Russia, and other possibilities could provide a completely reasonable cause for the activity, including errant spam or a misdirected email trying to reach its destination, have been raised by analysts.

Putting the populist revolt in its place

In many Western democracies, this is a year of revolt against elites. The success of the Brexit campaign in Britain, Donald Trump’s unexpected capture of the Republican Party in the United States, and populist parties’ success in Germany and elsewhere strike many as heralding the end of an era. As Financial Times columnist Philip Stephens put it, ‘the present global orderthe liberal rules-based system established in 1945 and expanded after the end of the Cold War—is under unprecedented strain. Globalization is in retreat.’

In fact, it may be premature to draw such broad conclusions.

Some economists attribute the current surge of populism to the ‘hyper-globalisation’ of the 1990s, with liberalisation of international financial flows and the creation of the World Trade Organizationand particularly China’s WTO accession in 2001receiving the most attention. According to one study, Chinese imports eliminated nearly one million US manufacturing jobs from 1999 to 2011; including suppliers and related industries brings the losses to 2.4 million.

As the Nobel laureate economist Angus Deaton argues, ‘what is crazy is that some of the opponents of globalization forget that a billion people have come out of poverty largely because of globalization.’ Even so, he adds that economists have a moral responsibility to stop ignoring those left behind. Slow growth and increased inequality add fuel to the political fire.

But we should be wary of attributing populism solely to economic distress. Polish voters elected a populist government despite benefiting from one of Europe’s highest rates of economic growth, while Canada seems to have been immune in 2016 to the anti-establishment mood roiling its large neighbour.

In a careful study of rising support for populist parties in Europe, the political scientists Ronald Inglehart of the University of Michigan and Pippa Norris of Harvard found that economic insecurity in the face of workforce changes in post-industrial societies explained less than cultural backlash. In other words, support for populism is a reaction by once predominant sectors of the population to changes in values that threaten their status. ‘The silent revolution of the 1970s appears to have spawned an angry and resentful counter-revolutionary backlash today,’ Inglehart and Norris conclude.

In the US, polls show that Trump’s supporters are skewed toward older, less-educated white males. Young people, women, and minorities are under-represented in his coalition. More than 40% of the electorate backs Trump, but with low unemployment nationally, only a small part of that can be explained primarily by his support in economically depressed areas.

On the contrary, in America, too, there’s more to the resurgence of populism than just economics. A YouGov poll commissioned by The Economist found strong racial resentment among supporters of Trump, whose use of the ‘birther’ issue (questioning the validity of the birth certificate of Barack Obama, America’s first black president) helped put him on the path to his current campaign. And opposition to immigration, including the idea of building a wall and making Mexico pay for it, was an early plank in his nativist platform.

And yet a recent Pew survey  shows growing pro-immigrant sentiment in the US, with 51% of adults saying that newcomers strengthen the country, while 41% believe they are a burden, down from 50% in mid-2010, when the effects of the Great Recession were still acutely felt. In Europe, by contrast, sudden large influxes of political and economic refugees from the Middle East and Africa have had stronger political effects, with many experts speculating that Brexit was more about migration to Britain than about bureaucracy in Brussels.

Antipathy toward elites can be caused by both economic and cultural resentments. The New York Times identified a major indicator of Trump-leaning districts: a white-majority working-class population whose livelihoods had been negatively affected throughout the decades in which the US economy shed manufacturing capacity. But even if there had been no economic globalisation, cultural and demographic change would have created some degree of populism.

But it is an overstatement to say that the 2016 election highlights an isolationist trend that will end the era of globalisation. Instead, policy elites who support globalisation and an open economy will have to be seen to be addressing economic inequality and adjustment assistance for those disrupted by change. Policies that stimulate growth, such as infrastructure investment, will also be important.

Europe may differ because of heightened resistance to immigration, but it would be a mistake to read too much about long-term trends in American public opinion from the heated rhetoric of this year’s election campaign. While the prospects for elaborate new trade agreements have suffered, the information revolution has strengthened global supply chains and, unlike in the 1930s (or even the 1980s), there hasn’t been a reversion to protectionism.

In fact, the US economy has increased its dependence on international trade. According to World Bank data, from 1995 to 2015, merchandise trade as a percentage of total GDP has increased by 4.8 percentage points. Moreover, in the age of the Internet, the transnational digital economy’s contribution to GDP is rapidly increasing.

In 2014, the US exported $400 billion in information and communication technologies (ICT)-enabled servicesalmost half of all US services exports. And a poll released last month by the Chicago Council on Foreign Relations found 65% of Americans agreeing that globalisation is mostly good for the US, while 59% say that international trade is good for the country, with even stronger support among the young.

So, while 2016 may be the year of populism in politics, it does not follow that ‘isolationism’ is an accurate description of current American attitudes toward the world. Indeed, in crucial respectsnamely, on the issues of immigration and tradeTrump’s rhetoric appears to be out of step with most voters’ sentiments.