GGGRROO GGGOOOVVVEEERRRNNNAAANNNCCC nn AAA Asia-Pacific Center for Security Studies Edited by Yoichiro Sato & GROWTH GOVERNANCE in Asia Edited by Yoichiro Sato Asia-Pacific Center for Security Studies Published 2004 by the Asia-Pacific Center for Security Studies Reprint permission: Contact the editors at 2058 Maluhia Road, Honolulu, Hawaii 96815 All views expressed in the chapters of this book are those of the authors and do not necessarily reflect the views of the Asia-Pacific Center for Security Studies (APCSS) or any governmental agency. ii iii iv Contents Chapter 1 Growth and Governance in Asia: Framework ofAnalysis Yoichiro Sato 1 SECTION ONE: POLITICAL-ECONOMIC GOVERNANCE Chapter 2 Challenges of Governance in Asia: Significance for Regional Security and Stability RichardP. Cronin 9 Chapter 3 Globalization and Economic Governance in East Asia: Responding to the New Rules oftheGame inForeignInvestment JohnRavenhill 25 Chapter 4 Globalizationand Its ThaiCritics Thitinan Pongsudhirak 39 Chapter 5 Globalization and Economic Governance in Taiwan Pei-shan Lee and Yun-han Chu 49 Chapter 6 Where Dragons Falter: LaborPolitics and theDemocratization of Civil Society in South Korea and Taiwan Paul G. Buchanan and Kate Nicholls 59 Chapter 7 Globalization and Economic Governance in East Asia: A New Model for Development Lawrence Greenwood 87 Chapter 8 Reforming Labor, BelaboringReform: Structural Adjustment in Thailand and East Asia Frederic C. Deyo 97 Chapter 9 Globalizationand National Identity: Managing Ethnicity and Cultural Pluralism in Malaysia Zawawi Ibrahim 115 SECTION TWO: SOCIAL STABILITY AND DEMOCRATIZATION IN A GLOBAL ERA Chapter 10 The Role of Civil Society in Democratic Consolidation in Asia Suchit Bunbongkarn 137 Chapter 11 Internal Security, Democratization, and Globalization in Southeast Asia Michael Haas 145 Chapter 12 Growth, Governance, andHuman Development: Post-Soviet Transition in North and Central Asia Vladimir Petrovsky 155 Chapter 13 Political Islam, Pakistan, and the Geopolitics of Religious Identity Robert G.Wirsing 165 v Chapter 14 Governance in Southeast Asia: The Good, the Bad, and the Ugly Donald E. Weatherbee 179 Chapter 15 Civil Society and Democratization in Malaysia Alasdair Bowie 193 Chapter 16 Globalization and Nation-Building in the Philippines: State Predicaments in Managing Society in the Midst of Diversity Rommel C. Banlaoi 203 Chapter 17 CivilSociety and Democratization in the Philippines David Wurfel 215 Chapter 18 The Issue of Civil Society in China and Its Complexity Yin-hong Shi 225 Chapter 19 Conclusion Yoichiro Sato 233 vi LIST OF TABLES 3.1 FDI share in Gross Fixed Capital Formation 25 3.2 Japanese FDI in East Asia 30 3.3 US Direct Foreign Investment in East Saia 30 6.1 Strikes in South Korea 1986-1998 66 6.2 Unions in South Korea 1986-1998 70 6.3 Strikes inTaiwan, 1984-98 75 6.4 Unionsin Taiwan, 1984-98 77 11.1 Comparison of Southeast Asian Countriesx 154 LIST OF FIGURES 3.1 FDI in East Asia 27 3.2 FDI in East Asia 28 3.3 FDI in East Asia 28 11.1 Relationship Between Democracy and National Income Per Capita 153 11.2 Relationship Between Globalization and Internal Security 153 12.1 Economic Growth in North and Central Asia 157 LIST OF APPENDIX 6.1 Labor relations and transitions from authoritarian rule in South Korea and Taiwan 85 6.2 Some other basic social and political indicators 86 13.1 Muslim Population in Asia-Pacific 178 vii LIST OF CONTRIBUTORS ROMMEL C. BANLAOI is the Political Science Director at the National Defense College of the Philippines. Previously, he served as Vice President for Administrative Affairs. Professor Banlaoi received both his M.A. and B.A. in Political Science from the University of the Philippines, and is currently finishing his Ph.D. at the same university. ALASDAIR BOWIE is an Associate Professor of Political Science and International Affairs at George Washington University. He is the author of The Politics of Open Economies: Indonesia, Malaysia, the Philippines and Thailand (with Danny Unger) and Crossing the Industrial Divide: State, Society, and the Politics of Economic Transformation in Malaysia. PAUL BUCHANAN is a Senior Lecturer in Politics, Development, and Latin American Studies at the University of Auckland. He served as the Regional Policy Analyst for the Inter- American Region in the Office of the U.S. Secretary of Defense. He has previously lectured at the Naval Postgraduate School, Monterey Institute of International Studies, New College of the University of South Florida and the University of Arizona, and has consulted for the CIA, AID, Air Force Special Operations Command, Navy Special Operations Command and Air Force Southern Command. SUCHIT BUNBONGKARN is a Judge of the Constitutional Court where he has served since February 2000. His previous positions included Dean of the Faculty of Political Science; Chairperson of the Executive Board and Director of the Institute of Security and International Studies, Chulalongkorn University; Chairman of Counter Corruption Committee, and President of the Political Science Association of Thailand. He has also served as an advisor to Prime Minister Prem Tinsulanond. In 1997, he was an elected member of Constitution Drafting assembly. Dr. Suchit has an extensive list of published books and articles both in Thai and English in Comparative Politics, Thai Politics, Political Development, and International Relations. He obtained his Ph.D. from the Fletcher School of Law and Diplomacy, Tufts University. YUN-HAN CHU is a Distinguished Research Fellow of the Institute of Political Science at Academia Sinica and a Professor of Political Science at National Taiwan University. He received his Ph.D. in political science from the University of Minnesota. He served as Director of Programs of the Institute for National Policy Research, Taiwan’s leading independent think tank, from 1989 to 1999. Among his recent English publications are Consolidating Third-Wave Democracies (Johns Hopkins University Press, 1997), and China Under Jiang Zemin (Lynne Reinner, 2000). RICHARD P. CRONIN is a Specialist in Asian Affairs with the Foreign Affairs, Defense, and Trade Division of the Congressional Research Service. He received his Ph.D. from Syracuse University in modern South Asian history/South Asian studies, and his M.A. in viii European history from the University of Houston. He is the author of Japan, the United States and Prospects for the Asia-Pacific Century: Three Scenarios for the Future (ISEAS/St. Martin’s, 1992). FREDERIC C. DEYO is a Professor of Sociology at Bingham University and Honorary Professor and NZAI Research Fellow at the University of Auckland. His recent publications include; Social Reconstructions of the World Automobile Industry (ed.); and Economic Governance and the Challenge of Flexibility in East Asia (co-ed. With R. Doner and E. Hershberg). C. LAWRENCE GREENWOOD is currently the U.S. Coordinator for APEC and manages U.S. economic relations with the East Asia and Pacific region. He entered the Foreign Service in 1976 after graduating from the Fletcher School of Law and Diplomacy. He has served in the Department of State’s Economic and Business Bureau and in U.S. Embassies in the Philippines, Senegal, Japan and Singapore. MICHAEL HAAS taught political science at the University of Hawai’i from 1964-1998. He is the author of some 33 books and more than 100 articles. He is the founder of the Political Film Society, which he now manages in Hollywood. CHE WAN AHMAD ZAWAWI IBRAHIM is a Professor of Sociology and Deputy Dean (Research), Faculty of Social Sciences, Universiti Malaysia Sarawak (UNIMAS). Books published include: The Malay Labourer: By the Window of Capitalism (1998); Regional Development in Rural Malaysia and the “Tribal Question” (1995); Cultural Contestations: Mediating Identities in a Changing Malaysian Society (1998). He has a Ph.D. in Social Anthropology, from Monash University, Australia. PEI-SHAN LEE is an Assistant Professor of Political Science at National Chung Cheng University in Taiwan. She holds a Ph.D. in political science from the University of Pennsylvania. Her research interests center on comparative political economy with a regional focus on East Asia, comparative democratization, and international political economy. KATE NICHOLLS is a native New Zealander who is currently completing her graduate studies at the University of Notre Dame, Indiana. She has published previously on Latin American civil society, and labor politics in Australia, Chile, Ireland, New Zealand and Uruguay. Her current research interests center on the impact of historical and recent transitions to democracy on the state's ability to implement coherent economic and social developmental strategies, especially in Southern Europe. She has also taught courses in comparative politics and political sociology at the University of Auckland. VLADIMIR PETROVSKY is a leading researcher at the Institute of Far Eastern Studies (IFES), Russian Academy of Sciences (RAS), and Professor, Chair of Global Political Processes, Moscow State University of International Relations, Russian Ministry of Foreign Affairs. He is also a Member of Academic Board, Russia’s Academy of Diplomatic Services. He obtained his Ph.Ds. in International Relations and Political Sciences in the IFES, RAS. He ix