Abstract

As the diplomatic standoff in North Korea enters its fourth year, the crisis atmosphere on the Korean peninsula sparked by Pyongyang's military actions in 2010 has eased. Pyongyang has agreed to return to the diplomatic table, its hand strengthened by advancing its nuclear program in the interim. Washington and Seoul remain reluctant to engage, having been burned by Pyongyang's clandestine uranium enrichment program unveiled in 2010. The authors argue that re-engagement, with the immediate objective to stop a third nuclear test and prevent further missile tests, is imperative to contain the nuclear threat for now; preventing the nuclear program's expansion and preparing the way for the ultimate denuclearization of the peninsula—critical goals—must be left to a second step.

Note: There is a supplement to this piece with detailed overhead imagery, additional analysis of Pyongyang's march toward a more threatening nuclear weapons capability, and brief commentary on how the accession of Kim Jong-un to leadership may influence North Korea's nuclear trajectory. Click here to access "North Korea from 30,000 Feet"

The legacy of the late North Korean leader Kim Il Sung's decision in the early 1990s to pursue a strategic partnership with the United States has run its course. In its place, the focus of Pyongyang's policies has decisively shifted to Beijing. However wary the North Koreans may be of their neighbor, the fact is that from Pyongyang's viewpoint, the Chinese have delivered and the United States did not.

Any shards remaining from the North's previous, decades-long effort to normalize ties with the U.S. were swept away by current leader Kim Jong Il's trip in May to China, his third in barely a year. Based on our discussions with Chinese officials, we believe that during that visit, Pyongyang and Beijing came to an understanding that, in preparation for planned, major domestic political events in 2012, both sides require sustained political stability, a convergence of interests that provides the opportunity for expanding bilateral relations beyond anything enjoyed in the past. The North is building toward a "prosperous and powerful" nation in celebration of the Kim Il Sung centenary in April; the Chinese are looking toward their 18th Party Congress scheduled for late next year. In both cases, it was apparently decided, stability on the Korean peninsula would serve economic programs and the succession of a new generation of leaders.

In the arrangements — formal and informal — that emerged from Kim Jong Il's discussions with his hosts, Pyongyang agreed not to "make trouble" (as the Chinese described it to us) in the short term, presumably meaning no deliberate military provocations, no third nuclear test and no launch of another ballistic missile. Beyond that, the talks ended in a compromise that neither side found entirely satisfactory. Kim came away with less aid and a smaller Chinese commitment of support than he had sought, though Pyongyang typically asks for more than it can get.

The North did, however, receive increased access to both Chinese capital and technology in spite ofUnited Nations and other foreign sanctions. Kim also obtained, through the establishment of joint economic zones with China along the Yalu River, a locale to test adjustments necessary to economic development, adjustments that would fall short of what Beijing considers genuine economic reform. Chinese President Hu Jintao, we were told, had to settle for Kim's promise to cause less trouble but without a North Korean commitment to serious steps toward denuclearization.

We believe that this pivot toward Beijing is no routine oscillation in North Korean policy. The drive to normalize relations with the U.S. from 1991 to 2009 had been real, sustained and rooted in Kim Il Sung's deep concern about the regime's future in the aftermath of the collapse of the Soviet Union. Perhaps there was no better demonstration of the North's approach in those years than the situation on Oct. 25, 2000 — the 50th anniversary of the entry of the Chinese People's Volunteers into theKorean War. Who was in Pyongyang on that date meeting Kim Jong Il? The Chinese defense minister? No, he was cooling his heels while Kim met with the U.S. secretary of State. That was no accident of scheduling on Pyongyang's part; it would not happen again today.

If the paradigm shift is real, we expect the North in the near to medium term to make far less overt trouble. Less tension on the Korean peninsula? What could be wrong with that? Nothing, as long as it is understood that such tranquillity will also provide a veil for the North's continuing pursuit of nuclear weapons and increasingly sophisticated delivery systems. With the onset of stability and growing Chinese-North Korean cooperation, Pyongyang may well calculate that the outside world's focus on the North Korean nuclear program will become diffuse. Indeed, the North Koreans have long assumed that given enough time, the world would resign itself to their nuclear weapons, as happened with India and Pakistan.

To help things along, it isn't out of the question that Pyongyang might even agree to some U.S. efforts to contain the nuclear program through a series of what Washington calls "pre-steps." The North has repeatedly expressed willingness to consider discussion of its uranium enrichment program and moratoriums on missile and nuclear tests. As unilateral actions, these would have short-term benefits by further stabilizing the situation to provide additional room for discussions. But in the absence of long, serious negotiations between the two sides, they will turn out to be no more meaningful than the ill-considered agreements of the now moribund six-party talks.

All of which brings us back to the deepening North Korean-Chinese ties, and the downgrading in Pyongyang's calculations of relations with the United States. There was considerable momentum behind the North's strategy for engaging the U.S. in past negotiations. That is no longer the case, with consequences we have only started to feel.

When Asia’s leaders gather in Honolulu next week for the annual Asia Pacific Economic Cooperation summit, Americans will get a glimpse of the Obama administration’s hyperactive Asia agenda. While America has always been a Pacific nation, the Obama administration is now beginning to match the world’s most populous and economically dynamic region with America’s own brand of energy and leadership.

Before President Barack Obama alights on the tarmac in Honolulu, he will have prepared the way to lead anew in Asia. Among a number of significant “firsts” for our nation in the region are:

• President Obama in 2009 became the first U.S. president ever to attend a meeting with all 10 leaders of the nations that comprise the Association of South East Asian Nations.
• The United States in 2010 became the first non-ASEAN country to establish a dedicated Mission to ASEAN in Jakarta.
• Hillary Clinton was the first secretary of state in a generation to make Asia the destination of her first foreign trip.
• Secretary Clinton also launched the “Lower Mekong Initiative,” a first-of-its-kind agreement between Cambodia, Laos, Thailand, Vietnam, and the United States to enhance cooperation in the areas of water and forest management, education, and health.

Now, President Obama will arrive in Honolulu to, among other things, attempt to get APEC nations to agree to lower tariffs on renewable energy products. He will also continue to negotiate the so-called Trans-Pacific Partnership, an Obama administration initiative with eight Asian nations, with the objective of shaping a broad-based regional trade pact that would include Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. Look for announcements of Japanese participation and a framework for the TPP agreement to be announced alongside the APEC summit.

After the APEC summit, President Obama will travel to Bali and attend the East Asia Summit, a fairly new 18-nation security forum—becoming the first U.S. president to attend this annual meeting.

All this activity is especially dramatic following eight years of low-key engagement where Asians griped about missed meetings and America’s strategic attention was focused almost exclusively in the Middle East. But most importantly, there is a well-thought out strategy for re-engagement—a strategy based on renewing long-time allies, engaging seriously newly emerging powers with an eye on preserving stability in the Pacific, while building stronger economic ties to boost American trade, job creation, and long-term economic prosperity at home.

Our stalwart ally Japan was rocked by this year’s devastating earthquake and tsunami, and America is assisting in its recovery. Our alliance remains strong, and Japan continues to be an increasingly active U.S. partner in global affairs.

Relations with South Korea are better than they have ever been. The U.S. Congress just passed a historic free trade agreement, opening the South Korean market for a wealth of American goods. Twice in two years the Obama administration (over Chinese objections) deployed the USS George Washington to the Yellow Sea and the Sea of Japan to conduct exercises with South Korea in response to North Korean aggression. Last month, President Obama welcomed President Lee Myung-bak for a state visit, the first in 10 years by a South Korean president.

President Obama will visit Australia next week to announce a deepened military cooperation pact—building once again on a long-standing alliance. This follows on Secretary of State Clinton’s signing last year of the Wellington Declaration, a roadmap for deepening and expanding the bilateral relationship between the United States and New Zealand.

The Obama administration also is engaging more closely with emerging powers.

The administration in 2010 launched the U.S.-India Strategic Dialogue, which has broadened and deepened relations with New Delhi to include issues from cybersecurity and terrorism to negotiations over a bilateral investment treaty and energy cooperation. Obama also launched the U.S.-Indonesia Comprehensive Partnership, including a series of agreements that will help defense and trade relations. The administration is also working carefully behind the scenes with Myanmar’s new leadership to urge liberalization there.

All of this brings us to China. The flurry of Asian activity makes sense in its own right to further U.S. economic, cultural, and strategic interests, but it is also a component of U.S. policy toward China. The Obama administration’s China policy involves increasing America’s ability to compete with China, working with China where fruitful, and pushing back when China’s actions cross the line. While the U.S.-China relationship is never easy, the administration has avoided major crises and managed to sell Taiwan the largest arm sales packages in any two-year period over the past 30 years without a major breach of relations with Beijing.

Indeed, where cooperation is possible, it is underway. A joint clean energy research center with China is now open, more U.S. Food and Drug Administration officials are based in China to monitor the safety of food and drugs coming to the U.S. market. What’s more, the Obama administration has had some significant success working with Beijing on the nuclear activities of North Korea and Iran, though it has followed a one step forward, two steps back pattern.

The U.S. needs to be engaged in Asia to ensure that China’s rise contributes to stability and prosperity in the region. In 2010, for example, when China made a series of aggressive moves related to the South China Sea, Secretary of State Clinton joined with her counterparts from Southeast Asia, including countries close to China such as Vietnam in what has been called a “showdown,” to make clear their desire for a peaceful, multilateral approach to the conflicting territorial claims there. China backed off its more forward actions and most strident rhetoric.

Similarly, the United States is creating incentives for China to conform to international law and standards. That’s why the Obama administration is negotiating the Trans-Pacific Partnership—a trade pact with high standards to join. The idea is build consensus in the region about a coherent set of regulations that might push China in a helpful direction. TPP rules, for example, are likely to prohibit state-owned enterprises from getting government subsidies not available to privately owned companies, an issue on which Washington has been pushing Beijing hard, with only slow progress to show for it.

These sorts of initiatives are not part of a strategy of “containment” of China, which is not possible or desirable. No Asian country would ever sign up to an anti-China alliance—each, in fact, wants to strengthen its relationship with Beijing. But at the same time, they want America to stick close by. Even if containment were possible, America benefits more from a strong, prosperous China than a weak and resentful one.

Can America afford all this Asian engagement? We have to and we will. The coming years will demand strategic choices. The next time you hear someone complaining about U.S. troops leaving Iraq, remind them that the United States is now investing more wisely and more constructively in the most important region of the world.

Nina Hachigian is a Senior Fellow at the Center for American Progress.

Abstract:

We develop and test an economic theory of insurgency motivated by the informal literature and by recent military doctrine. We model a three-way contest between violent rebels, a government seeking to minimize violence by mixing service provision and coercion, and civilians deciding whether to share information about insurgents. We test the model using panel data from Iraq on violence against Coalition and Iraqi forces, reconstruction spending, and community characteristics (sectarian status, socioeconomic grievances, and natural resource endowments). Our results support the theory’s predictions: improved service provision reduces insurgent violence, particularly for smaller projects and since the “surge” began in 2007.