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President Duterte’s South China Sea agreements represent the new model for cooperation in South East Asia

China has hailed an agreement with Philippines over the South China Sea as a landmark measure for peace and prosperity in South East Asia.

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Following a recent summit of the Association of South East Asian Nations (ASEAN), China and Philippines have signed a decisive agreement wherein violence and confrontation are rejected as a means of settling lingering disputes over maritime and territorial rights in the South China Sea.

The result of the agreement means the establishment of fully peaceful cooperative relations between Philippines and the economic superpower of the 21st century, China. Under Duterte, Philippines has also developed historically strong ties with Russia. Both Russia and China now look to invest in new major projects in Philippines which in the coming years will fully modernise the infrastructure of the country.

The South China Sea disputes, far more than the nuclear crisis on the Korean peninsula, was always going to be the US path towards sowing discord and conflict in Asia. Whereas in respect of Korea, the US has little choice but to ultimately cooperate with China in what amounts to a protracted diplomatic tug-of-war, in the South China Sea, the US constantly provokes China by sailing through waters claimed by China. This almost always elicits a firm response from China which almost always includes the scrambling of Chinese ships and aircraft, along a strongly worded statement.

While the US does not have any territory bordering the South China Sea, Washington has taken it upon itself to “defend” the claims of South East Asian states over parts of the sea, including some of the Sea’s islands.

As Washington’s post-colonial ally in South East Asia, Philippines had traditionally been the testing ground for America’s own policy against China in respect of the South China Sea. This era has now come to an end as under President Duterte, Philippines asserts an independent foreign policy.

As part of his drive to expand the independent international relations of Philippines, President Rodrigo Duterte has reached out to many new partners, including and especially China. China has received Duterte’s sincere wishes for cooperation, peace and long-term economic partnerships with marked enthusiasm.

Because of this, Philippines has pioneered the new model of South East Asian–Chinese cooperation, which will serve as the template for a new era among all countries who seek to create peace and mutual prosperity in the region.

After earlier meetings at the APEC summit with Chinese President Xi Jinping, President Duterte has met with the powerful Chinese Premier Li Keqiang to solidify and expand upon earlier agreements.

According to a joint statement detailing the nature and accomplishments of the meeting,

“Both sides believe that the maritime dispute is not the full sum of the China-Philippines relationship. Both sides also reaffirm the importance of maintaining and promoting regional peace and stability, freedom of navigation in and over-flight above the South China Sea as well as freedom of commerce and other peaceful uses”.

Both sides also agreed “to manage and prevent incidents at sea, enhance maritime dialogue and cooperation, and pursue a stable growth of bilateral relations. Both sides agree to strengthen maritime cooperation in areas such as marine environmental protection, disaster risk reduction, including possible cooperation in marine scientific research, subject to further consultations”.

Chinese media has responded in an overwhelmingly positive way to the agreements struck between Duterte and his Chinese counterparts. The influential Global Times, the international media outlet of the Communist Party of China, has described the depth and breadth of new Sino-Philippine ties in the following way,

“The Sino-Philippine relationship has entered a new stage of mutual benefit, with fruitful results achieved in pragmatic cooperation in multiple fields.

After a meeting in Manila on Wednesday, Chinese Premier Li Keqiang and Philippine President Rodrigo Duterte witnessed the signing of 14 cooperation agreements on infrastructure financing, bridge construction, bond issues, drug rehabilitation, climate change, intellectual property protection and industrial capacity cooperation, according to the Xinhua News Agency.

The two leaders also announced the start of work for two river bridges in Manila, which are expected to ease the capital’s severe traffic jams.

Even before the signing ceremony, the Philippine Department of Finance  said earlier this week that China had promised about $7.34 billion in loans and grants to the Philippines for infrastructure projects and other programs, The Philippine Star reported.

These developments highlight the warming ties between the two countries, which is conducive to the fundamental interests of both countries and their people. China has become the largest trade partner of the Philippines: it is the country’s largest importer and the fourth-largest export destination.

As Southeast Asian countries recovered from the global financial crisis and returned to rapid development in recent years, the Philippine economy also recorded fast growth. The country’s GDP grew faster than expected (6.9 percent during the third quarter), the ninth consecutive quarter of growth above 6 percent.

Given the country’s grand infrastructure plan and a series of reforms, the Duterte administration aims to reach annual growth rates of 7 percent to 8 percent over the next six years, according to media reports.

The Philippines needs to improve and expand its infrastructure to provide essential support for rapid economic development. That’s the exact area where China can be of much help, indicating great economic complementarities in terms of cooperation in such fields as transportation, telecommunications and agriculture.

Moreover, from the perspective of national strategy, the Philippines’ “Build, Build, Build” infrastructure development initiative is also highly compatible with the China-proposed Belt and Road (B&R) initiative. It can be expected that projects under both initiatives can develop faster and thus improve the Philippines’ infrastructure and living standards substantially.

As for China, the enhanced relationship with the Philippines allows it to better carry out international production capacity cooperation and push forward with the B&R initiative.

As the Philippine economy grows, it will also be a big potential market for China”.

Likewise, the official media outlet of the People’s Republic of China, Xinhua has reported,

“Since Sino-Philippine relations were turned around last year, the bilateral ties have seen a positive momentum of improvement and development and bilateral cooperation has been promoted in all sectors, said Li.

Li said his visit is aimed to consolidate the momentum for the bilateral ties and make up the time and opportunities that were once lost”.

The language used by the highly professionalised Chinese press helps to shed light on Chinese perceptions of the agreements made between Duterte, Xi and Li. China has essentially stated that Philippines is now China’s most important partner in ASEAN and this is the case precisely because Duterte has come to China with an attitude that indicates Philippines’ willingness to see international relations through the “win-win” paradigm about which President Xi Jinping speaks so frequently.

The “win-win” model that Duterte has adopted can be contrasted with the “us versus them” model the US engages in. This model has caused particular consternation in the South China Sea. While Vietnam made some far less specific statements via-a-vis Philippines in relation to settling its disputes with China over the South China Sea, Vietnam continues to hedge its bets, making deals with the US that many in China believe are subtle provocations.

By contrast, Philippines is able to deal on a pragmatic level with the United States, largely due to the fact that President Duterte and President Trump share a good personal relationship, in spite of strains between the Duterte administration and the US Congress, which often sounds like a mouthpiece of the Liberal Party of Philippines. The key to this approach is one of balance and realism. The United States is looking to sell in South East Asia, but China is looking to invest. Duterte realises this which is why he called his meetings with China and Russia the most “meaningful” during the APEC conference and subsequent ASEAN forum.

Philippines has now reaped the best of Chinese investment by showing a genuine willingness to cooperate in an area of vital importance with China. Rather than be the linchpin of a new China-US conflict, Philippines under Duterte has decided to prioritise its own material interests. Duterte has put Philippines first and now one of the top ten growing economies in the world is working with the world’s economic engine.

This is President Duterte’s most resounding vindication and triumph to-date.

Philippines masters the art of “win-win” at APEC summit in a geo-economic triumph for Duterte

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Denmark As A Model For American Socialists?

In Denmark, everyone pays at least the 25% value-added tax (VAT) on all purchases. Income tax rates are high.

The Duran

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Authored by Lars Hedegard via The Gatestone Institute:


Here are some facts to consider before American “democratic socialists” look to Denmark for guidance, as Senator Bernie Sanders did during the 2016 presidential campaign.

First of all, Danes actually pay for their brand of socialism through heavy taxation. In Denmark, everyone pays at least the 25% value-added tax (VAT) on all purchases. Income tax rates are high. If you receive public support and are of working age and healthy enough to work, the state will require that you look for a job or it will force a job on you.

The willingness of all the Danes to pay high taxes is predicated on the country’s high degree of homogeneity and level of citizens’ trust in each other, what sociologists call “social capital.” By and large, Danes do not mind paying into the welfare state because they know that the money will go to other Danes like themselves, who share their values and because they can easily imagine themselves to be in need of help — as most of them, from time to time, will be.

Whenever politicians propose tax cuts, they are met with vehement opposition: So, you want to cut taxes? What part of the welfare state are you willing to amputate? And that ends the debate.

Danes, in contrast to American socialists gaining ground in the Democratic Party, are increasingly aware that the welfare state cannot be sustained in conditions of open immigration. A political party agitating for “no borders” could never win a Danish election. Danes do not suffer from historical guilt: they have not attacked any other country for more than two centuries and have never committed a genocide.

Moreover, there is an even deeper truth to ponder: Denmark is not really socialist but constitutes a sui generis fusion of free-market capitalism and some socialist elements. Denmark has no minimum wage mandated by law. Wages, benefits and working conditions are determined through negotiations between employers and trade unions. 67% of Danish wage-earners are members of a union, compared to 19% in Germany and 8% in France. Strikes and lockouts are common, and the government will usually stay out of labor conflicts unless the parties are unable to agree.

It is uncomplicated for enterprises to fire workers, which gives them great flexibility to adapt to shifting market conditions. To alleviate the pain, the state has in place a number of arrangements such as generous unemployment benefits and programs to retrain and upgrade redundant workers.

Danish companies must make ends meet or perish. They generally will not get handouts from the government.

Denmark is more free-market oriented than the US. According to the Heritage Foundation’s 2018 Index of Economic Freedom, Denmark is number 12, ahead of the United States (number 18). Venezuela is at the bottom, one place ahead of number 180, North Korea.

Mads Lundby Hansen, chief economist of Denmark’s respected pro-free-market think tank CEPOS, comments:

“Very high taxes and the vast public sector clearly detract in the capitalism index and reduce economic freedom. But Denmark compensates by protecting property rights, by low corruption, relatively little regulation of private enterprise, open foreign trade, healthy public finances and more. This high degree of economic freedom is among the reasons for Denmark’s relatively high affluence.”
Trish Regan recently claimed on Fox Business that Danes pay a “federal tax rate” of 56% on their income. This is misleading. The 55.8% is the levied on the marginaltax for the top income bracket, only on the part of their income above DKK 498,900 ($76,500). Any income under DKK 498,900 is taxed at lower rates. And the 55.8% marginal rate does not represent a “federal” or “national” rate. It represents the total of all taxes on income: national tax, regional tax, municipal tax and labor market tax. It does not, however, include Denmark’s 25% value-added tax (VAT), paid on all purchases.

Regan also claimed that Danes pay a 180% tax on cars. While it is true that there was once a maximum tax of 180% on care in Denmark, the vehicle tax rates have been lowered in recent years. Today, the first DKK 185,100 ($28,400) of the price of a gas- or diesel-powered car is taxed at 85%, and if the car’s price is above DKK 185,100, the remaining amount is taxed at 150% — which is of course bad enough.

Denmark’s total tax burden amounts to 45.9% of GDP, the highest of all countries in the Organisation for Economic Co-operation and Development (OECD).

As pointed out in the Fox Business segment, all education for Danes is tuition-free, all the way through to a Ph.D. Not only that; the state will, within certain time constraints, pay students to study. For students at university level no longer living with their parents, the monthly cash grant comes to almost $1,000 per month. No fewer than 325,000 students out of a total population of 5.6 million benefit from this generous arrangement setting the state back to the tune of DKK 20.9 billion or 1% of GDP (latest 2018 figures just in and supplied by Mads Lundby Hansen). Denmark even pays student support to 20,000 foreign students.

Attempts by fiscal conservatives to cut down on payments to students have been successfully resisted by the vociferous and influential student organizations; at present it would appear impossible to muster anything like a parliamentary majority to limit the student handouts.

Fox Business is right that a great many Danes are on public transfer payments. Government figures from 2017 indicate that 712,300 Danes of working age (16-64) — not including recipients of student benefits — get public financial support. But Regan’s claim that most Danes do not work is ludicrous. According to Statistics Denmark, 69.9% of Danes aged 16-64 are active in the labor market.

How can Denmark pay for its comprehensive welfare state, which includes free medical care regardless of the severity of your condition? Regan claims that Denmark is “heavily in debt.” Not so. As it turns out, Denmark is among the least indebted countries in the world, even when compared to other Western countries. The Danish government’s gross debt stands at 35.9% of GDP. Compare that to, e.g., The United Kingdom (86.3 %), The United States (108%), Belgium (101%), Canada (86.6%), France (96.3%), Germany (59.8%), The Netherlands (53.5%), Italy (129.7%), Spain (96.7%) and even Switzerland (41.9%).

Comparing Denmark to the US, Madsen notes that the latter has a problem with fiscal sustainability that may necessitate tax increases. Denmark enjoys what he labels fiscal “oversustainability” (“overholdbarhed”).

At a time when socialism appears to be popular among certain sections of the American population, its proponents would do well not to cite Denmark as a model. The Danish fusion of free-market capitalism and a comprehensive welfare state has worked because Denmark is a small country with a very homogeneous population. This economic and social model rests on more than 150 years of political, social and economic compromises between peasants and landowners, business-owners and workers, and right- and left-leaning political parties. This has led to a measure of social and political stability that would be hard to emulate in much larger and more diverse counties such as the United States.


Lars Hedegaard, President of the Danish Free Speech Society, is based in Denmark.

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Ron Paul: Protectionism Abroad and Socialism at Home

One of the most insidious ways politicians expand government is by creating new programs to “solve” problems created by politicians.

Ron Paul

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Authored by Ron Paul via The Ron Paul Institute for Peace & Prosperity:


One of the most insidious ways politicians expand government is by creating new programs to “solve” problems created by politicians. For example, government interference in health care increased health care costs, making it difficult or even impossible for many to obtain affordable, quality care. The effects of these prior interventions were used to justify Obamacare.

Now, the failures of Obamacare are being used to justify further government intervention in health care. This does not just include the renewed push for socialized medicine. It also includes supporting new laws mandating price transparency. The lack of transparency in health care pricing is a direct result of government policies encouraging overreliance on third-party payers.

This phenomenon is also observed in foreign policy. American military interventions result in blowback that is used to justify more military intervention. The result is an ever-expanding warfare state and curtailments on our liberty in the name of security.

Another example of this is related to the reaction to President Trump’s tariffs. Many of America’s leading trading partners have imposed “retaliatory” tariffs on US goods. Many of these tariffs target agriculture exports. These tariffs could be devastating for American farmers, since exports compose as much as 20 percent of the average farmer’s income.

President Trump has responded to the hardships imposed on farmers by these retaliatory tariffs with a 12 billion dollars farm bailout program. The program has three elements: direct payments to farmers, use of federal funds to buy surplus crops and distribute them to food banks and nutrition programs, and a new federal effort to promote American agriculture overseas.

This program will not fix the problems caused by Tramp’s tariffs. For one thing, the payments are unlikely to equal the money farmers will lose from this trade war. Also, government marketing programs benefit large agribusiness but do nothing to help small farmers. In fact, by giving another advantage to large agribusiness, the program may make it more difficult for small farmers to compete in the global marketplace.

Distributing surplus food to programs serving the needy may seem like a worthwhile use of government funds. However, the federal government has neither constitutional nor moral authority to use money taken by force from taxpayers for charitable purposes. Government-funded welfare programs also crowd out much more effective and compassionate private efforts. Of course, if government regulations such as the minimum wage and occupational licensing did not destroy job opportunities, government farm programs did not increase food prices, and the Federal Reserve’s inflationary policies did not continuously erode purchasing power, the demand for food aid would be much less. By increasing spending and debt, the agriculture bailout will do much more to create poverty than to help the needy.

Agriculture is hardly the only industry suffering from the new trade war. Industries — such as automobile manufacturing — that depend on imports for affordable materials are suffering along with American exporters. AFL-CIO President Richard Trumka (who supports tariffs) has called for bailouts of industries negatively impacted by tariffs. He is likely to be joined in his advocacy by crony capitalists seeking another government handout.

More bailouts will only add to the trade war’s economic damage by increasing government spending and hastening the welfare–warfare state’s collapse and the rejection of the dollar’s world reserve currency status. Instead of trying to fix tariffs-caused damage through more corporate welfare, President Trump and Congress should pursue a policy of free markets and free trade for all and bailouts for none.

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In Monsters We Trust: US Mainstream Media No Friend of the American People

Over 300 US newspapers ran editorials on the same day denouncing Trump, an event in itself that points to some high degree of collusion and groupthink.

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Authored by Robert Bridge via The Strategic Culture Foundation:


Over the course of his turbulent presidency, Donald Trump has accused various media companies, with special attention reserved for CNN, as being purveyors of ‘fake news.’ In one early-morning Tweet last year, he slammed the “FAKE NEWS media” as the “enemy of the people.”

This week, over 300 US newspapers ran editorials on the same day – an event in itself that points to some high degree of collusion and groupthink – denouncing Trump’s insensitive portrayal of them, as if the notion that journalists were not in the same sleaze league as lawyers, politicians and professional con artists never crossed anyone’s mind before. Even the peace-loving Mahatma Gandhi recommended “equality for everyone except reporters and photographers.”

But is the MSM really an “enemy of the people?”

First, it cannot be denied that the US media, taken in all its wholesomeness, has been overwhelmingly consistent in its ‘style’ of reporting on Donald Trump, the 45th POTUS. And by consistent I mean unprecedentedly critical, misleading and outright aggressive in its guerilla coverage of him. If one is not convinced by the gloom-and-doom Trump stories featured daily in the Yahoo News feed, then a study by the Media Research Center (MRC) should do the job. From January 1 through April 30, evening news coverage of the US leader – courtesy of ABC, CBS and NBC – were 90 percent negative, which is pretty much the same incredible average revealed by MRC one year earlier.

The study looked at every one of the 1,065 network evening news stories about Trump and his administration during the first four months of 2018. Total negative news time devoted to Trump: 1,774 minutes, or about one-third of all evening news airtime. That’s pretty much the definition of a circle jerk.

“Nearly two-fifths (39%) of the TV coverage we examined focused on Trump scandals and controversies, while 45 percent was devoted to various policy issues,” MRC wrote in its report.

Meanwhile, the farcical Russia ‘collusion’ story was consistently the main grabber — clocking in at 321 minutes, or nearly one-fifth of all Trump coverage. Of the 598 statements MRC calculated about Trump’s personal scandals, virtually all of them (579, or 97%) came out of the media wash cycle tarred and feathered.

If this represents an orchestrated attack on the Commander-in-Chief, and in light of those numbers it would be difficult to argue it isn’t, the strategy appears to be falling flat. Despite, or precisely because of, the avalanche of negative media coverage, Trump’s popularity rating smashed the 50 percent ceiling in early August and continues to remain high.

In Monsters We Trust

Although it can be safely stated that the MSM is an entrenched and relentless enemy of Donald Trump, that doesn’t necessarily mean it’s an “enemy of the American people,” as Trump argues it is. Let’s be a bit more diplomatic and say it isn’t our friend.

One yard stick for proving the claim is to consider the steadily mounting concentration of media holdings. In 1983, 90 percent of US media were controlled by 50 companies; today, 90 percent is controlled by the Big Six (AT&TComcastThe Walt Disney Company21st Century FoxCBS and Viacom control the spoken and printed word from sea to shining sea).Although many people are aware of the monopolistic tendencies of the US mainstream media, it’s important to understand the level of concentration. It means the vast majority of everything you see and hear on any electronic device or printed publication is ‘democratically’ controlled by six average white guys and their shareholders.

However, keeping track of who owns what these days is practically impossible since the dozens of subsidiary companies that fall under each main company are themselves fiefdoms, each with their own separate holdings. In fact, the already short ‘Big Six’ list is already dated, since National Amusements, Inc. has gobbled up both Viacom and CBS, while 21st Century Fox merged with Disney this year. As for the 350 US newspapers that penned tortured editorials decrying Trump’s critical opinion of them, many of those ‘local’ publications get their marching orders from either the Hearst Communications or the Gannett Company on the East Coast.

Now, with this sort of massive power and influence lying around like dynamite, it stands to reason, or unreason, that the corporate and political worlds will succumb to the law of attraction and gravitation, forging powerful and impregnable relationships. It’s no secret that the politicians, our so-called ‘public servants,’ are mostly in the game to make a fast buck, while the corporations, desperate for ‘democratic representation’ to control regulation and market share, have an inexhaustible source of funds to secure it. Naturally, this oligarchical system precludes any sort of democratic participation from the average person on the street, who thinks just because he remembers to yank a lever once every several years he is somehow invested in the multibillion-dollar franchise.

As far as media corporations being ‘private enterprises’ and therefore free to demolish the freedom of speech (even censoring major media players, like Infowars, simply because they whistle to a different political tune), that is quickly becoming revealed as nothing more than corporate cover for state-sponsored machinations.

“In a corporatist system of government, wherein there is no meaningful separation between corporate power and state power, corporate censorship is state censorship,” writes Caitlin Johnstone. “Because legalized bribery in the form of corporate lobbying and campaign donations has given wealthy Americans the ability to control the US government’s policy and behavior while ordinary Americans have no effective influence whatsoever, the US unquestionably has a corporatist system of government.”

Meanwhile, it cannot be denied, from the perspective of an impartial observer, that the mainstream media is nearly always positioned to promote the government narrative on any number of significant issues. From the media’s unanimous and uncritical clamoring that Osama bin Laden was responsible for 9/11 (even the FBI has admitted it has no “hard evidence” that bin Laden carried out the attacks on the World Trade Center and the Pentagon), to its gung-ho enthusiasm for the 2003 Iraq War, to the sycophantic cheerleading for a war in Syria, the examples of media toeing the government line are legion. And if US intel is in bed with Hollywood you can be damn sure they’re spending time in the MSM whorehouse as well.

Is it any surprise, then, that public trust in the US media is reaching all-time lows, while news consumers are increasingly looking to alternative news sites – themselves under relentless attack – to get some semblance of the elusive truth, which is the God-given right of any man? Truth is our due, and we should demand nothing less.

As Thomas Paine reminded the world in the face of a different foe: “Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly: it is dearness only that gives everything its value.”

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