Alleged Corruption in Mongolia’s Resource Extraction Sector

Journal of Political Risk, Vol. 7, No. 7, July 2018 

By Enkhzul Tsatsral

Dump trucks operate in an open pit at the Oyu Tolgoi copper-gold mine, jointly owned by Rio Tinto Group’s Turquoise Hill Resources Ltd. unit and state-owned Erdenes Oyu Tolgoi LLC, in Khanbogd, the South Gobi desert, Mongolia, on Saturday, July 23, 2016. Mongolia exported 817,000 tons of copper concentrate in the first half of the year compared with 663,800 tons a year earlier, an increase of 23.1 percent. Photographer: Taylor Weidman/Bloomberg

The year is 2008 and Ulaanbaatar, the capital city of Mongolia, still resembles a gritty Soviet satellite state with its deteriorating apartment blocks and a statue of Lenin standing bold. Fast-forward a mere four years later and the apartment blocks have deteriorated further while a dazzling 25-story hotel overlooks the shadow of the recently removed statue. Today, with a plethora of Western companies ranging from luxury brands such as Rolex to the familiar Pizza Hut sprouting all over the city, you will be forgiven for mistaking Ulaanbaatar as one of the Four Asian Tigers. Unlike the Four Asian Tigers, which flourished predominately through industrialisation, however, Mongolia’s rapid ‘development’ is mainly attributed to the country’s colossal mineral wealth.

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Tackling the South China Sea Together: British and French Navies Chart a Course

Journal of Political Risk, Vol. 7, No. 6, June 2018 

By Peter M. Solomon

At a September 2015, joint press conference at the White House, China’s President Xi Jinping stood beside U.S. President Barack Obama and said, “China does not intend to pursue militarization” with respect to “construction activities that China are undertaking” on the Spratly Islands in the South China Sea.[1] Since then, China has established several offensive capabilities in the region, including surface-to-air and anti-ship missile systems on three features in the Spratly Islands and the ability to deploy strategic bombers from the Paracel Islands.[2]  In comparison to the United States, which has been a consistent critic of China’s reclamation and militarization and has embarked on numerous freedom of maritime navigation exercises in the region, the European Union (EU) has historically been reserved in its comments regarding China’s activities in the South China Sea. Instead, the EU has limited itself to general comments about the importance of maintaining freedom of the seas and resolving disputes peacefully. While these statements are not without importance, the lack of a more critical, unified EU approach to China’s destabilizing activities has left missing a crucial voice. The tides could soon turn.

Embed from Getty Images

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Reason, Imagination and Invention in the South Pacific: The Laser Beam Kiwi

Journal of Political Risk, Vol. 7, No. 6, June 2018 

By Bernard Cadogan, Ph.D.

Troops pose with the “Laser Kiwi” flag, submitted to the New Zealand Flag Consideration panel in 2015 by James Gray. Source: Reddit.

Address to the U.K. Defence Academy, Shrivenham, 7th February 2018

New Zealand is proof that nature does not always abhor, a vacuum. The country is truly, “the last, the loneliest and the loveliest” as Rudyard Kipling declared Auckland to be in his “Song of the Cities”. Strategic systems never tolerate vacuums. They punish confusion and ambivalence. New Zealand is no redoubt, nor is it overlooked.

The intention of this address is to consider New Zealand’s sense of geopolitical reality. Are we proof that the Versailles Conference unassociated Organisation for Economic Co-operation and Development (OECD) nation state has been outclassed in the 21st century Pacific? Are we a living fossil ?

Woodrow Wilson envisaged a world in which there would be no assemblages such as empires, nor alliance systems even. Sovereignty-pooling exercises such as the European Union and Mercosur or Caricom would have been anathema to Wilson. They are not an option for us.

When asked at the Versailles Conference, why we had made the effort we did in the Great War, our Prime Minister Bill Massey replied, “we did it for Civilisation”.

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Duterte’s Immigration Agreement with China: Subversion by Numbers

Journal of Political Risk, Vol. 7, No. 6, June 2018 

By Demetrius Cox

A PLA Air Force (PLAAF) military transport plane (IL-76) in Davao City on 8 June 2018. Source: Philippine Plane Spotters Group (PPSG).

“The supreme art of war is to subdue the enemy without fighting.”
― Sun Tzu, The Art of War

On June 9, 2018 the Philippine Star published an article titled “More than 3 million Chinese allowed entry into Philippines since 2016 — Immigration data”.

In what may become one of the most remarkable subversions in recent history, the article describes how the immigration floodgates have been thrown open by Philippine President Rodrigo Duterte.  With a current national population of 103 million, Duterte has allowed a 3% direct population increase (3+ million) of Chinese immigrants to the Republic of the Philippines in less than three years, which is enough to keep most demographers up at night.  And there is no end in sight.

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Trade Strategy is a Proper Part of National Security

Journal of Political Risk, Vol. 7, No. 6, June 2018 

By William R. Hawkins

Chinese-chartered merchant ship Cosco Shipping Panama crosses the new Cocoli Locks during the inauguration of the Panama Canal expansion in Panama City on June 26, 2016. A giant Chinese-chartered freighter nudged its way into the expanded Panama Canal on Sunday to mark the completion of nearly a decade of work forecast to boost global trade. Photo: JOHAN ORDONEZ/AFP/Getty Images.

On June 4, the Koch brothers (Charles and David) announced the launch of a “multi-year, multimillion-dollar” campaign against the tariffs and trade restrictions imposed by the Trump administration; especially those levied on China. The billionaire brothers are regularly called “conservatives” because they make large campaign donations to Republican candidates. But they are not conservatives; they are libertarians, a very different breed of cat. And their donations to the GOP are meant to sway the party in their ideological direction, not merely support it. The liberal media tries to tarnish conservatism by placing libertarians on “the Right” even though this is not their intellectual origin. This is done to further the left-wing narrative that “conservatives” are self-interested, greedy individuals who are enemies of organized society and the common good. This is true for libertarians, who doubt the very legitimacy of the nation-state or the “higher” norms of society. Too often they define right and wrong on the basis of whether it turns a profit.

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Legislatures Elected by Evaluative Proportional Representation (EPR): An Algorithm

Journal of Political Risk, Vol. 7, No. 6, June 2018 

By Steve Bosworth and Anders Corr1

Abstract

Illustration of grading. Source: Getty.

This article describes a new and relatively simple evaluative method to elect all the members in any legislative body, such as a city council or national legislature.2 Called Evaluative Proportional Representation (EPR), each voter grades any number of candidates on their fitness for office as EXCELLENT, VERY GOOD, GOOD, ACCEPTABLE, POOR, or REJECT.  These evaluations are counted by hand or computer algorithm (here provided in the R statistical computer language).  This evaluative method of social choice is particularly good at revealing and optimizing voters’ utilities.  It ensures proportionate minority representation in legislative bodies by enabling each voter to guarantee that his or her evaluations of the candidates will continue fully to count in the deliberations and decisions made by their elected legislative body.  Each elected member of this body is given a different weighted vote as determined by counting all voters’ evaluations. As a result, each citizen’s vote continues to count within the weighted vote given to the elected member she most highly values.

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Teaching a Tunisian to Fish: An Animating Way to Wield US Soft Power

Journal of Political Risk, Vol. 7, No. 5, May 2018

By Bhakti Mirchandani

Economic statecraft, the use of economic instruments to accomplish geopolitical objectives, dates back to the Louisiana Purchase.  American Enterprise Funds, first established by USAID following the collapse of the Berlin Wall and the breakup of the Former Soviet Union, and the Tunisian American Enterprise Fund, launched in 2013, are two examples of both economic statecraft and powerful impact investing tools.  This article provides a window into the Tunisian American Enterprise Fund’s investments, purpose, progress, strategy, and place in US foreign policy.

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Hearts and Minds in Afghanistan

Journal of Political Risk, Vol. 6, No. 5, May 2018

By Heath B. Hansen

I opened my eyes. It was still dark, but I could see the night was ending and another day in some village in Afghanistan was beginning. The smell of dip-spit and cigarette smoke betrayed the fact that the platoon was awake and breaking down the patrol base. “Get the f*** up, Hansen,” was the greeting from my team leader. “Get your s*** on the humvee, we’re leaving in a few mikes.” “Roger, Sergeant,” I replied. It was May 31 2005, and time to win over more hearts and minds in the War on Terror.

A cropped photo of Jason Pegg’s bloodied arm following his and the author’s hearts and minds campaign in an Afghan village on May 31, 2005. Source: Facebook.

We listened to the convoy brief. The platoon would be heading to another village, in the middle of nowhere, to help villagers that probably had no idea why Americans were in their country and couldn’t care less about ‘democracy.’ The typical information was passed down about the scope and purpose of the mission followed by the monotone, repetitive, “Keep your heads on a swivel” and, “Make sure we have full, three-sixty security at all times. Remember your battle drills.”

The platoon set out. One by one, the humvees departed the patrol base and entered the dirt road into the village; the mission had officially begun. As we embarked, I noticed not a single villager was outside their mud-hut. Not a single person was in the fields. Not a single child was running alongside our vehicles, screaming, “You give me chocolate,” or “Amereekan, give me one dollar!” Of the dozens and dozens of villagers we had treated the day before during our MEDCAP [Medical Civic Action Program] operation, not a single one was outside to bid us farewell.

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A Peculiar Chess Game in North Korea《奇怪的棋局》

Journal of Political Risk, Vol. 6, No. 5, May 2018

By Wei Jingsheng (魏京生)

Wei Jingsheng (魏京生) was the most famous Chinese dissident in 1979, when Deng Xiaoping put him on a nationally televised trial for writing the essay, “The Fifth Modernization: Democracy.” He received 15 years in prison. After meeting with President Clinton’s Assistant Secretary for Human Rights in 1993, he was put back in jail for another 14 years. He served 4 years of his second jail term before being exiled to the United States in 1997. A number of points are new in his latest article, published in English for the first time here. In particular, the discussion of China’s President Xi obstructing the Trump/Kim summit has very serious implications for the future of U.S.-China relations, and the credibility of President Xi as an interlocutor in Korean peace negotiations. Wei Jingsheng’s piece was originally published on Radio Free Asia’s blog and dated May 17, 2018. The article, including its Beijing slang, has been translated into English below.

Chinese human rights activist Wei Jingsheng (left) and American politician US President Bill Clinton talk together in the White House, Washington DC, December 8, 1997. (Photo by Robert McNeely/White House/Consolidated News Pictures/Getty Images)

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The Price Of Paramount Power: Xi Jinping’s Ascension Could Make China A Much Riskier Place To Do Business

Journal of Political Risk, Vol. 6, No. 3, March 2018

By Richard Hornik

One of the peculiar pathologies of western businessmen active in China is an almost religious reverence for its lack of due process, enthralled by the combination of free(ish) markets and political stability proffered by China’s Market-Leninism (a term coined by Nicholas Kristoff). What they miss, however, is the price that must be paid for such short-term control, and during the course of Chinese history that price has proven to be very high.

The latest convert to this envy for authoritarian efficiency is Tesla’s Elon Musk who has spoken and written extensively about China’s ability to conceive, approve and build enormous infrastructure projects in a matter of a few years – or less[1].  No zoning rules, environmental regulations, cost-benefit analyses — much less property rights — can stand in the way of the gleaming high-speed rail lines, shiny new airports, massive harbors and 12-lane highways and bridges that have covered the Middle Kingdom in the past two decades. Likewise with housing developments and mega industrial installations like petrochemical plants, steel mills and refineries.

The fact that many of these projects made little or no economic sense and often created enormous capital, environmental and human costs for decades to come does little to take the shine off the power to command society and the economy to do the bidding of a brilliant meritocracy. Japan went on a similar splurge in the last three decades of the 20th century, also directed by brilliant technocrats, ending in two decades of economic stagnation, but at least Japan had its flawed democracy to serve as a break and a safety valve, something missing from authoritarian regimes.

A vendor (R) takes a nap next to posters showing the late Chinese chairman Mao Zedong (C) and Chinese President Xi Jinping (L) at a market in Beijing on May 15, 2016. Fifty years after the Cultural Revolution spread bloodshed and turmoil across China, the Communist-ruled country is driving firmly down the capitalist road, but Mao Zedong’s legacy remains — like the embalmed leader himself — far from buried. Credit: AFP / NICOLAS ASFOURI / Getty Images

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