WINTER 2006 Observer To promote democracy Anwar Ibrahim: in the Middle East, Anwar Ibrahim, former deputy prime minister of Freedom and Human Malaysia, suggested the United States point to Indonesia and Turkey as Rights Are Universal, examples of Muslim democracies. “It’s a major beginning,” he said. “You can promote this to the Not Just Arab world, not the American experience but the Indonesian experience, the Turkish experience. This is better because this is homegrown.” Western But democracy is more than “just having free and fair elections,” Anwar said at a public program in Honolulu on February 23. Indonesia, in the midst of a Concepts democratic transition, has had to recover from “three decades of dictatorial rule.” As a result, he said it must Anwar Ibrahim create a democratic framework of “separation of powers; Inside credible, well qualified, well trained judges and currently a visiting professor at Georgetown University lawyers; a free media — and free and fair elections.” and distinguished visiting senior fellow at Johns Hopkins Musharraf: Anwar spoke on “Human Rights and Politics: An University. He was in Honolulu as a distinguished Time Ripe for Peace Asian Perspective” at a program co-sponsored by the visiting scholar at the University of Hawai‘i. in Kashmir Pacific and Asian Affairs Council, the East-West Center, In 1998, Anwar was removed from his posts as Page 3 the University of Hawai‘i Center for Southeast Asian deputy prime minister and finance minister and Studies and the Friends of the East-West Center. He is continued on page 2 EWC Relief Efforts One Year After the Tsunami Page 4 Key Issues Facing a Relatively Stable Asia in 2006 Rethinking Development: ‘Gross National East-West Center President Charles E. Morrison “What seems to be going on is a growing Happiness’ vs. predicts another year of growth and relative stability nationalism in both countries, a kind of embedding of Gross National Product for the Asia Pacific region in 2006, amid rapid economic negative attitudes,” Morrison said, that he described as Page 5 and demographic changes. He addressed key political, “deeper, more dangerous forces of nationalism and Eeconomic and security issues in the region at an international competition.” Revaluation of AsiaPacific Breakfast Briefing, sponsored by Bank of “Sustained and growing tensions can have China’s Currency Hawai‘i, in mid-February. seriously negative implications for U.S. interests by Could Hurt U.S. While generally optimistic, Morrison noted North complicating regional endeavors, such as addressing in Pocketbook Korea, trans-Pacific financial and trade imbalances, and a the critical North Korean nuclear issue and the trans- Page 7 pandemic remain potential problems. To this list, he Pacific trade and financial imbalances,” he cautioned. added “the downward spiral in Sino-Japanese relations,” “They also make the rationalization of U.S. forward exacerbated by Prime Minister Junichiro Koizumi’s military forces appear more threatening to China.” visits to the Yasukuni shrine, the language in recently Morrison said that he had anticipated multilateral published Japanese textbooks and the realignment of organizations like APEC would be useful to resolve U.S.-Japan military arrangements. continued on page 2 2

Anwar Ibrahim continued from page 1 in Asia is something we need to observe and imprisoned for political reasons. In 2004, after six appreciate.” years of solitary confinement, he was acquitted of all Anwar also advocated engagement to minimize charges by the Malaysian Federal Court. After six years conflict and differences, but said that should not in jail, Anwar said he emerged feeling “stronger and negate the push for human rights and freedom. more passionate about freedom and human rights.” “I am for engagement, for trade,” he said, with The East-West He emphasized his belief that freedom and human reference to China, “but we should not … ignore that Center Observer rights are universal — not purely American or western freedom and human rights remain paramount.” is a quarterly newsletter concepts. “Just because you have good relations with published by the In the media, he said, viewers see “so much rage countries” like China, he said, “you should not East-West Center, against Americans and the West, but speak to individuals preclude the discussion or articulation of issues of a public non-profit in the Middle East and you sense there is a difference human rights and freedom, because to do so you are institution established in their position on American foreign policy and condemning the majority of the population who have in 1960 to foster mutual American Jeffersonian ideals or the spirit of the been denied basic freedoms.” understanding and American Constitution.” He encouraged the audience, which included cooperation among He also said that to understand Muslim society scholars, diplomats and business and community the governments and is to understand that it is not monolithic. “To look at leaders, “to make Hawai‘i an important intellectual peoples of the Asia Pacific the (Muslim) experience in Asia, you cannot under- base” that can play a critical role in forging mutual region, including the stand and appreciate the changes (in the region) from understanding between the nations of Asia and the United States. the prism of the Arab world,” he said. “The experience Pacific and the United States. Volume 10, Number 1 Winter 2006 Charles E. Morrison, President Key Issues Facing a Relatively Stable Asia in 2006 Karen Knudsen, Director Office of External Affairs continued from page 1 While terrorism in issues between nations, providing a setting for leaders Asia has not been of the For information, contact: to put differences aside. Instead, the Chinese have magnitude in the Middle The East-West Center used APEC in a negative way, refusing to meet with East and is usually locally 1601 East-West Road their Japanese counterparts, “sharpening differences,” driven, ideology and Honolulu, HI 96848-1601 he said. techniques have been Telephone: 808-944-7111 “Outright tensions of this sort create real problems imported, he said. This Fax: 808-944-7376 that put the United States in a very difficult position continues to be a concern of having to choose between two countries that are in the Philippines, Email: very important to our interests,” he said. “So far, the Indonesia and Thailand, [email protected] United States has neither fully focused on the implica- where terrorism is generally Website: tions for us of Sino-Japanese tensions nor begun to tied to internal conflict. www.EastWestCenter.org develop a behind-the-scenes approach to try to “Most of these conflicts Editor: Susan Yim dampen them.” Charles Morrison will have to be resolved by Design: Kennedy & Preiss Morrison also discussed the critical importance of Asians,” he said, “but this a continued international effort to denuclearize the can be done with help and with cooperation from Korean peninsula. One of the “tremendous risks” of outside Asia. That is exactly what we at the East-West the North Korean nuclear program is the chance that Center try to do. We try to bring the best minds of North Korean fissile material could be transferred or East and West together to deal with these pressing fall into the hands of terrorists, he said. problems of the region.” If North Korea were tied to a nuclear terrorist attack or use of a “dirty bomb” on an American city, it would trigger a political and international crisis “of unbelievable consequences,” he warned. 3

Pakistan President General Pervez Musharraf told “terrorism” and “extremism.” Terrorism can be fought a group of international journalists that it was time to with military force, “extremism is a state of mind” that Musharraf: resolve the dispute over Kashmir. “The people of requires a different strategy, he said. Pakistan, India and Kashmir want peace,” he said. “I Asked about U.S. missile strikes in January on a Pfeel Kashmir is ripe for resolution. The earthquake Pakistani border village in the tribal region near the Time Ripe brought us closer together.” Afghanistan border, Musharraf said the attack was “a In mid-February, Musharaff met with Asian and violation of the sovereignty of Pakistan.” for Peace American journalists who traveled to Pakistan and India He expressed regret that 13 civilians were killed in as participants in the Winter 2006 EWC Jefferson the attack aimed at Al-Qaida’s No. 2 Ayman al-Zawahri Fellowships Program. They met for an hour at the but said that the residents of the village were “guilty of in Kashmir Pakistani military leader’s headquarters in Rawalpindi harboring people who are carrying out terrorism in near the capital of Islamabad. Pakistan and outside in the world.” Musharaff said that Pakistan filed a diplomatic protest with Washington resolving the conflict was a over the incident and Musharraf said he was satisfied bilateral issue between with President Bush’s response. “Cooperation will Pakistan and India, but that continue as before,” he said. “I was satisfied with U.S. he sees the United States as a assurances” that this will not happen again. facilitator “coaxing both sides” Regarding demonstrations and controversy over toward resolution. Danish cartoons of the Prophet Muhammad, the He also reaffirmed his president said he could not understand how anyone alliance with the United States could “take the excuse of freedom of the press to hurt in the war on terrorism. He the feelings of such a large population of the world. told the journalists that there This is stretching freedom of the press to the limits.” was a difference between Winter 2006 EWC Jefferson Fellows with Pakistan President General Pervez Asian, U.S. Journalists Terence Chea, Reporter, Associated Musharraf at his Press, San Francisco, California: headquarters in Travel to Pakistan, India “The study tour opened my eyes to the Rawalpindi. tremendous political, economic and social changes For the first time the East-West Center offered a sweeping through India and Pakistan. From three-week Winter Jefferson Fellowships Program President Musharraf in Pakistan to the founders of which took 13 American and Asian journalists to Indian tech giant Infosys, we had a chance to meet Pakistan and India, February 5-26. The journalists and interview some of South Asia’s most influential Ffocused on the theme “South Asia Shining,” convening and dynamic leaders. One of the most rewarding The Winter Jefferson first at the Center in Honolulu to discuss how their parts of the trip was getting to know journalists Fellows visited a fishing respective countries are responding to India’s rising from eight different nations and learning how village near Chennai, economic influence and how their governments’ South Asia’s rise affects countries throughout the India, that had been relations with India and Pakistan are developing and Asia Pacific region.” devastated by the 2004 changing. Then they traveled together to New Delhi, Aditi Phadmis Mehta, Political Editor, tsunami and donated $250 Bangalore, Chennai and Islamabad. Business Standard, New Delhi, India: to purchase school supplies The Jefferson Fellowships Program is now offered “I am an Indian and the boundaries of my for students. Photo by three times a year, in Fall, Spring and Winter, thanks country touch Pakistan but I’ve only been to Terence Chea. to support from the Freeman Foundation. Pakistan once earlier in my life. What I saw corrected a lot of misperceptions about Pakistan. I was able to see the country … with clearer, unclouded eyes. Eyes, that I must add, also belonged to my colleagues from the U.S., Malaysia, Japan, China, Bangladesh and the Philippines.” Tina Cassandra Perez, News Producer & Executive Producer, GMA Network, Inc., Quezon City, Philippines: “Being part of the 2006 Winter Jefferson Fellowships Program was an eye-opening and enriching experience. Being a political reporter, my favorite part of the trip was the visit to the Indian Parliament. The information we shared with each other and learned from the formal discussions was truly beneficial.” 4

News in Brief

Burghardt Named Chair of AIT Board Raymond F. Burghardt, director of the East-West Center’s Seminars program, was appointed chair of the American Institute in Taiwan (AIT) board in February. The appointment was made by the Board of Trustees of AIT. Burghardt, who joined the East-West Center in January 2005 after retiring from the U.S. Foreign Service, will continue as director of the EWC’s Seminars program. Before joining the Center, Burghardt served as U.S. ambassador to Vietnam, director of AIT-Taipei Students representing 14 countries and more than 50 in Taiwan, American consul general in Shanghai and universities attended the EWC International Graduate deputy chief of mission at the U.S. embassies in Manila Student Conference. and Seoul. He also previously served on the National Raymond F. Burghardt Security Council as special assistant to U.S. President 140 Graduate Students Attend Ronald Reagan and senior director of Latin American EWC International Conference Affairs. In addition, Burghardt was with U.S. embassies Some 140 graduate students from 14 countries Supporting in Honduras and Guatemala, Beijing and Hong Kong, and more than 50 universities gathered at the EWC the Center and was deputy director of the State Department’s International Graduate Student Conference at the Office of Vietnam, Laos and Cambodia Affairs. Center in mid-February. The conference, on RECENT GRANTS AND CONTRACTS “Sustaining a Resilient Asia Pacific Community: Issues and Solutions,” is considered the leading Research/Environment graduate student conference on Asia Pacific issues. $16,000 EWC Relief Efforts EWC President Charles E. Morrison welcomed U.S. Agency for Int’l participants to the annual conference which was organized Development/Centro One Year After the Tsunami by students at the Center. Barbara Watson Andaya, Internacional de professor of Asian Studies at the University of Hawai‘i Agricultura Tropical Through the East-West Center Tsunami Relief at Manoa and president of the National Association of Fund, close to half a million dollars in areas of education, Asian Studies, delivered the keynote speech. Pacific Disaster Center health and social services have been distributed toward Papers were presented on issues as diverse as the $45,000 rebuilding and reconstruction in South and Southeast regions represented, from perspectives on women’s UN Educational, TAsia since the December 2004 earthquake and tsunami. empowerment to international relations to security Scientific & Cultural Support has ranged from scholarships for students and issues to recovering from disaster. Organization faculty in stricken areas of Indonesia to funding of an $53,057 ambulance and mobile health clinic in Sri Lanka to U.S. Department of assistance for rural fishing villages in India. Defense/Quantum Leap A total of $506,978 was raised in contributions from the public and EWC alumni to the relief fund, Education which the Center established to distribute donations to $152,650 non-profit organizations involved in tsunami relief Ford Foundation efforts. Initially relief funds were earmarked toward $145,000 short-term efforts of organizations already in place in Ministry of Education the countries. EWC staffers and students made trips to Michael Schuster, EWC Gallery curator, discussed the arts & HRD, Government the region to aid and assess the needs of the affected of the Philippine Uplands with University of Hawai‘i of Korea areas after the disaster. students and faculty. Visual ethnographer Art Tibaldo is Subsequently the Center has worked closely with standing, right. $150,000 institutions in the region to provide long-term support National Endowment through EWC education and research projects. As of Exhibit Salutes Centennial for the Humanities December 2005, 83% of the funds had been distributed, of Filipino Immigration to Hawai‘i $40,000 with the remaining 17% in the process of being To celebrate the centennial of Filipino immigration EWC Foundation/ dispersed to specified projects. to Hawai‘i, an exhibition and series of public events Hawai‘i Pacific Rim I In the area of education, the Center is assisting illustrating the rich diversity of the upland region of Society with institutional rebuilding of some of the many the Northern Philippines are being presented at the External Affairs schools and universities that suffered physical devastation EWC Gallery, February 8–May 2. and loss of faculty and students in the disaster. Among The exhibition, titled “Custom and Creativity: $46,000 the institutions is the State Institute for Islamic Studies Arts of the Upland Philippines,” showcases the artistry EWC Foundation/ (IAIN Ar-Raniry), a leading institution of higher of the indigenous peoples of the region, including Hawai‘i Pacific Rim education in Banda Aceh, Indonesia, where nearly basketry, ceremonial items, wood carving and weaving Society 500 students and faculty have received program support. along with contemporary photographs and paintings In Sri Lanka, scholarships were provided to 18 under- by emerging artists. Video of traditional ceremonies by graduate students with financial needs who lost a parent award-winning visual ethnographer Joel Arthur Tibaldo, or guardian in the tsunami. Through the EWC visiting EWC artist-in-residence from the Philippines, continued on page 5 is also being shown continuously in the gallery. 5

What is the true measure of a country’s prosperity? has certain strategies and policies in place to pursue its Lyonpo Jigmi Yoser Thinley, former Prime Minister goal of happiness. Public policies are being crafted in and Foreign Minister of Bhutan, posed that question line with four key strategies or “pillars” of GNH. at an address at the East-West Center in January. Thinley explained these pillars are: WCurrently Bhutan’s Minister of Home and Cultural I Sustainable and equitable socio-economic Affairs, Thinley suggested the answer is “Gross development. National I Conservation of environment. Happiness,” I Preservation and promotion of culture. Rethinking Development: the guiding I Promotion of good governance. philosophy in In his discussion of the four pillars, he explained the Himalayan that the measurement system for a GNH economy ‘Gross National Happiness’ kingdom’s must be different from the conventional measurement development of GDP. Measures must include social and economic process. contributions of households and families, free time vs. Gross National Product More than and leisure. Indicators must not be biased towards 30 years ago, consumption but take into account conservation of the King of Bhutan declared social, environmental and human factors. the concept of “Gross He also emphasized that for a very small country National Happiness is more like Bhutan, dependent for its quality of life and liveli- important than Gross hood on an extremely fragile physical environment National Product.” Rooted in affected by external forces like global warming, the Buddhist notion that conservation is vital. the ultimate purpose of The minister noted that academia, development life is inner happiness, the experts, social engineers and the media have shown a philosophy has been adopted growing interest in the subject of GNH in recent as official policy by the years. An articulate and engaging speaker, Thinley has country’s parliament. While it traveled widely speaking on the subject. He speculated may sound utopian, Thinley that interest may be tied to the fact that tremendous explained that “GNH is a increases in real income in highly industrialized balanced and holistic countries over the last 50 years have not led to similar approach to development.” increases in happiness. “Triumphs in the rat race to “While conventional earn more, have more and consume more do not bring development models stress true and lasting happiness,” he observed. Lyonpo Jigmi economic growth as the ultimate objective, the concept “Evidently, there is growing interest in how to be Yoser Thinley of GNH is … that true development of human society happy as opposed to how to make money,” he said. takes place when material and spiritual development “Dollars and cents are not the bottom line in life. occur side by side to complement and reinforce each It is our hope that as more thought is given to this other,” he said. common quest in life, there will be more ideas and As a developing country, struggling to achieve reasons why GNH should guide human development minimum standards long in place in the West, Bhutan to further human civilization.”

EWC Relief Efforts One Year After the Tsunami continued from page 3 In November, the PDC signed a formal agreement Schools-Helping-Schools Project, schools in Thailand to help develop an early disaster warning system for and Sri Lanka have received funds for office equipment, Thailand’s Natural Disaster Warning Center. The bus service, computers and musical instruments. Maui-based disaster experts also completed a new I Through Operation U.S.A., funds are being used Tsunami Awareness Kit that gives governments, to rebuild the general hospital in Banda Aceh and were businesses, educators and the general public a frame- used for an ambulance and mobile health clinic to work in which to prepare for and recover from future service villages in Sri Lanka. Several organizations also natural disasters. received funds to rebuild homes and livelihoods in I EWC experts also are tracking the affects of the rural areas of Sri Lanka and India. tsunami in the region, noting economic, health, I The Maui-based Pacific Disaster Center (PDC), environmental and political implications. In collaboration managed by the East-West Center, was actively with colleagues from the Human Rights Center at involved in the response and recovery effort immediately the University of California Berkeley and regional after the disaster. PDC has continued to work with partners, the EWC’s Research Program joined in a affected countries to upgrade their early warning, disaster project to assess and prevent the occurrence of human planning and dissemination systems. “There’s a growing rights abuses in the aftermath of the tsunami. need to share knowledge and enhance coordination,” said PDC Executive Director Allen Clark. 6

Publications in Review

Shifting Terrain: The Domestic Politics of the U.S. Military Korea and the Philippines manage the American troops Presence in Asia, by Sheila A. Smith. East-West Center stationed in their countries. Special Reports. Honolulu: East-West Center, March 2006. As the U.S. government seeks to transform its global 64 pp. Free downloadable PDF file available online at military presence, and as the process of realigning America’s www.EastWestCenter.org/find.asp?it=sr008. The United overseas military forces proceeds, Washington must consider States has maintained military forces in the Asia Pacific these new domestic influences on governments that host region since the end of World War II and its alliances with U.S. forces. Broad public support in these societies for a key countries in the region continue today to be seen as shared security agenda will be the foundation for future critical to regional peace and stability. Academic and policy alliance cooperation. Perhaps most importantly, to be attention has focused on the shifting regional balance of successful new initiatives for managing the presence of power or the new sources of instability in the region, yet a American forces in each of these societies will need to parallel story has gone largely untold. Complex social and conform to domestic law and meet public expectations for political changes in the countries that have hosted U.S. government accountability. Paper, $15.00. Available from the forces are changing the way governments in Japan, South East-West Center, [email protected].

Minimum Deterrence and India’s Nuclear Security, by Rajesh inconsistent and has a tendency to drift into a more open- M. Basrur. Studies in Asian Security. Stanford: Stanford ended process. He addresses areas of concern, notably the University Press, 2006. 264 pp. In this book, a leading relationship between minimum deterrence and sub-nuclear authority on India’s nuclear program offers an informed and conflict, the threat from nuclear terrorism, and the special thoughtful assessment of India’s nuclear strategy. He shows that challenges nuclear weapons pose for a democratic society. the country’s nuclear-strategic culture is generally in accord with Cloth, $65.00; paper, $24.95. Order this publication from the principle of minimum deterrence, but is sometimes University of Chicago Press Distribution Center, (800)621-2736.

The Helsinki Agreement: A More Promising Basis for Peace in which sets down the outline of a comprehensive settlement to Aceh? by Edward Aspinall. Policy Studies 20. Washington, the Aceh conflict. Written by a leading expert on the Aceh DC: East-West Center Washington, 2005. x, 104 pp. conflict, this study examines the factors that prompted the Free downloadable PDF file available online at belligerents to return to the negotiating table, surveys the www.EastWestCenter.org/find.asp?it=PolicySt020. course of the negotiations, analyzes the deal itself and identifies This study examines the latest attempt to bring an end to potential spoilers. It concludes that the Helsinki agreement one of Asia’s longest-running separatist conflicts. In August represents Aceh’s best chance for peace since the separatist 2005 in Finland, representatives of the Indonesian govern- insurgency began almost 30 years ago. Paper, $10.00. ment and the Free Aceh Movement signed an agreement Available from the East-West Center, [email protected].

Challenges for U.S.-Asia Pacific Policy in the Second Bush regional management system is not expected to wither any time Administration, by Satu Limaye (rapporteur). Senior Policy soon. In fact, U.S. bilateral relationships are strengthening, and Seminar. Honolulu: East-West Center, 2006. viii, 22 pp. regional multilateral efforts face formidable obstacles. Free downloadable PDF file available online at The emergence of China as an economic, political and www.EastWestCenter.org/find.asp?it=SrPolSem2005. Asians military power was seen as the most important factor in continue to regard the United States as the key contributor to shaping the new strategic environment. The management of regional peace and prosperity, but express concern that U.S. globalization, and specifically the distribution of its benefits, policy toward the region is characterized by a relative lack of remains the key economic challenge for Asian states which attention, insufficient appreciation of underlying strategic despite the growth of intra-regional trade remain dependent changes and ideological polarization. Yet, despite efforts at Asian on the world economy. Paper, $7.50. Available from the regionalism in terms of both institutions and identity, a U.S.-led East-West Center, [email protected].

Also published: China and the Depreciating U.S. Dollar, by Richard C. K. Burdekin. AsiaPacific Issues, No. 79. Honolulu: East-West Center, January 2006. 8 pp. Free downloadable PDF file available online at www.EastWestCenter.org/find.asp?it=api079. (See article on Page 7.) Paper, $2.50. Available from the East-West Center, [email protected]. Hanging in the Balance: Equity in Community-Based Natural Resource Management in Asia, edited by Sango Mahanty, Jefferson Fox, Michael Nurse, Peter Stephen, and Leslie McLees. Bangkok: RECOFTC (Regional Community Forestry Training Center for Asia and the Pacific); Honolulu: East-West Center, 2006. vi, 222 pp. Free downloadable PDF files available The Publications Office now online at www.EastWestCenter.org/find.asp?it=HangingInBalance. Paper. Available from the East-West Center, sends e-mail announcements of [email protected]. new publications to interested The Making of the Igorot: Ramut ti Panagkaykaysa dagiti taga Cordillera (Contours of Cordillera Consciousness), by Gerard A. readers. If you would like to Finin. Governance and Political Change Series. Manila: Ateneo de Manila University Press, 2005. xviii, 345 pp. Available receive such announcements, in the United States and its dependencies, Canada, and Mexico from University of Hawai‘i Press, www.uhpress.hawaii.edu, tel please send a message to (888) UHPRESS (847-7377) / (808) 956-8255; Ateneo de Manila University Press, www.ateneopress.org. [email protected] with the word “subscribe” in the Subject field. Please To order East-West Center publications, contact: East-West Center, Publication Sales Office , 1601 East-West Road, Honolulu, HI include your name, title, 96848-1601 • Phone: (808)944-7145 • Fax (808)944-7376 • E-mail: [email protected] organization name, and e-mail address. Note: These books are also available to walk-in customers at the EWC Publications Office. 7

Continued American calls for strong upward who would then assume the supplier role, not U.S. revaluation of China’s currency, the renminbi, in an firms.” Fewer Chinese imports would not negate the fact attempt to rein in Washington’s huge trade deficit with that it was estimated the United States accounted for 70 Beijing could backfire and be counterproductive to U.S. percent of the world’s current account deficits last year. Ctrade and monetary interests, according to economist Burdekin notes that the Chinese authorities are Robert C.K. Burdekin. not unaware of Washington’s concerns, and have “It is unrealistic that any renminbi exchange-rate signaled a desire to be more flexible concerning their adjustment could reign in the burgeoning U.S. trade currency’s value, “tying the renminbi to a basket of deficit,” says the professor of economics at Claremont foreign currencies that would include the euro, the McKenna College and former visiting Japanese yen, and the South Korean won in addition to senior fellow at the East-West Center. the dollar.” A two percent upward revaluation of the In the EWC’s recently published renminbi last July did little, however, to dampen the Revaluation of AsiaPacific Issues series, Burdekin says calls for a larger rise in the Chinese currency’s value. “the overall imbalance (of U.S. trade) A strengthening Chinese currency could prove cannot be entirely blamed on China,” costly in other ways to the United States. Burdekin China’s Currency despite the fact that Beijing does keep a says “an exchange rate reduction could pose considerable tight lid on the renminbi’s value. He financial risk to the United States by threatening the pointed out that “just 10.4 percent of vast inflow of Chinese funds. Ironically, this inflow Could Hurt U.S. total U.S. trade was attributed to China plays an essential role in the U.S. economy as it supports in the first half of 2005.” the trade deficit as well as the level of U.S. interest “The level of China bashing (in rates.” He notes, “China’s reserve accumulation of U.S. in Pocketbook Washington) quickly recalled the Japan Treasuries (bonds) was $207 billion in 2004 (and) bashing of the 1980s in spite of the short duration of total holdings were roughly $616 billion.” China’s large bilateral surpluses and the fact that U.S. Burdekin suggests, “The U.S. government should exports to China have grown nearly as quickly as hope that China stands fast and does not make any Chinese imports,” he says, albeit from a base that move to pull its funding of the U.S. trade deficit and, would mean “U.S. exports would have to grow six instead, invest in other foreign currencies or its own times faster than imports to close the bilateral trade economy.” He concludes, “The Chinese preference for deficit.” gradual exchange rate adjustment may well be the best Calls for import tariffs aimed at China and strong outcome for the United States. In any event, the call rhetoric from the Bush Administration ignore other for renminbi adjustment to reverse the U.S. trade important issues. Burdekin ventures, “Discouraging deficit appears unwarranted on economic grounds and Chinese imports would likely benefit foreign producers little more than a politically charged chimera.”

Justice Kennedy on Rule of Law, Judicial Independence U.S. Supreme Court Justice Anthony Kennedy Acknowledging the multinational makeup of his stressed the importance of judicial systems and the rule audience, Kennedy said, “There are certain universals of law worldwide in a speech before international and regarding the concept of justice and we all have the American students from the East-West Center and the obligation to understand and debate them together.” UUniversity of Hawai‘i’s William S. Richardson School of In answer to a student’s question, the jurist firmly Law in early February at the Center. supported the concept of judicial independence. “Judges are not independent to do what they want,” U.S. Supreme Court Justice he said. “Judges are independent so they can do what Anthony Kennedy they must. They must follow the law.” And, if the law goes against a judge’s moral values? Kennedy was adamant. “If that situation arises the judge must take a stand.” He also noted the need for continual education for jurists. He said, “Learning does not end when you go to the bench … It only just begins.” He pointed to a judicial college for sitting judges in Bangkok as a good example of what should be done to insure continued education within the judicial system. 8

Notes and Quotes

From Musharraf, in a meeting with a group of American ears, the Pakistani leader also acknowledged that some “On the Hot Seat” By Thomas Omestad journalists last week, said he had condemned the January 13 villagers were “harboring” terrorists. “They are guilty In raid as a violation of Pakistani sovereignty. But he from all points of view,” he said in last week’s interview U.S. News & World Report professed satisfaction with U.S. assurances that further arranged by the East-West Center. Musharraf, who has said February 27, 2006 Mstrikes would take place only with prior consultation, and that five terrorists were among those killed on January 13, he praised current antiterrorism cooperation along the called al Qaeda’s presence a more serious breach of border. In what must be music to Bush administration Pakistani sovereignty than the U.S. missile strikes.

From NEW DELHI — The glittering skyscrapers of person who comes to work for us has never had a “India Rising” By Renee Loth Gurgaon, a satellite city that is home to much of credit card, has never been to the U.S., and has never In the Boston Globe India’s outsourcing industry, rise incongruously from seen a JC Penney store,” says Vivek Gour, Genpact’s February 26, 2006 the flat dry plains outside Delhi. Genpact, the first chief financial officer. “We teach them a lot about the Nand one of the largest back-office call centers in India, culture to whom they are talking.” employs 13,000 mostly young people, processing A group of journalists traveling to South Asia credit applications and conducting market research for recently with the East-West Center, a cultural American corporations such as Pfizer and JC Penney. exchange program, found the call center associates The company is recruiting new employees at a rate of wildly enthusiastic about their working conditions. 1,100 a month. They work all night because of time Most came from small towns and loved the adventure. zone differences; they are trained to “neutralize” their One young man showed off how he had learned to Indian accents to be more acceptable to customers in mimic a customer’s Cockney British accent. “Fifteen England or the United States; and some are even given pounds? What a ripoff!” he said to the laughter of his such western-sounding names as Tom or Susan. “The co-workers.

From A plan to reset Chinese rates to rise and fall in international costs, but few expect that to happen at “China and India to Test Oil Demand line with international crude prices — effectively once. with Price Reform” guaranteeing refiners an undefined profit margin on “I think there will be a series of incremental By Jonathan Leff domestic sales — is with the cabinet and could be moves over the course of the year, but I’m still not sure for Reuters February 24, 2006 Aapproved in March, sources have said. what kind of mechanism they’ll use,” said Kang Wu of Some analysts say China will have to raise prices the East-West Center in Hawai‘i. by 30 percent or more to narrow the gap with growing

From In Japan, the first leg of his trip, Mr. Zoellick’s But the moves, due to be implemented by the end “U.S. Envoy to Rally Tokyo, Beijing on diplomatic skills may be tested as he tries to ease of March, have been met with local resistance that was Nuclear Issue” problems connected to a planned realignment of U.S. exacerbated by the Jan. 3 murder of a woman by a By Roger Mitton military forces in Japan. U.S. sailor. In The Straits Times January 20, 2006 ISome 50,000 U.S. servicemen are stationed in Said Ms. Sheila Smith, an expert in U.S.-Japan Japan, and last October it was agreed that the number security relations at the East-West Center in Hawai‘i: will be reduced by moving 7,000 marines from “Zoellick will need to reassure the Japanese that the Okinawa to Guam and by relocating other U.S. forces U.S. is doing all it can to discipline its forces.” and weapons systems elsewhere in Japan.

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E WC Foundation 1

2006 East-West Center Dinner Honors Buck and Doreen Freeman

Six hundred people attended this year’s “An International Affair,” helping to raise more than $150,000 for East-West Center students and programs. The January 19th event at the Hilton Hawaiian Village SCoral Ballroom also celebrated the Center’s international students. East-West Center Voices, a video produced by Dennis Mahaffay, featured a selection of these outstanding young leaders expressing their gratitude for the EWC experience and describing its impact on their lives. The evening also included an oli (Hawaiian chant) by the Hawai‘i Academy of Arts, Music and Dance, Ha-lau Mele, piano music by Dale Senaga of the Royal Hawaiian Band, and an exotic, international silent auction. President Charles Morrison presented Mr. Houghton “Buck” Freeman and Mrs. Doreen Freeman with the 2005 Asia Pacific Community Building Award for their dedication to Feriyal Amal Aslam, strengthening the bonds of understanding among the Buck and Doreen Freeman Cedar Louis, Cathrine peoples and nations of Asia and the United States. The Truong and Aleyamma award recognizes distinguished individuals whose Honorary Chairs Silent Auction Committee Mathew. vision, professional and personal accomplishments The Honorable Cynthia J.C. Ai (chair), Pattie Daniel K. Inouye Dunn, Wendell Lee, Lynne exemplify the mission of the East-West Center. Past The Honorable Najita, Gordon Ring, Nadine recipients include Her Excellency Corazon C. Aquino, Daniel K. Akaka Uratsuka, Glenn Yamashita former president of the Philippines; Dr. Genshitsu (Soshitsu XV) Sen, former grand master of the Dinner Chairs An International Affair Urasenke Tea Tradition; and Mr. Ratan Tata, chairman Gerald J. Keir Video of Tata Sons Limited, the lead holding company of the Don K. Kim Dennis Mahaffay, producer, Tata Group, India’s largest industrial conglomerate. Limelight Productions; Montaj 9, and the following Silent auction items included generous donations General Chair of decorative arts, fine jewelry, gift items from inter- East-West Center student Ruth M. Ono participants, fellows and alumni national destinations, and travel accommodations in who assisted with the video: exciting places such as the Outrigger on the Lagoon- Silent Auction Chair Feriyal Aslam, Bryan Bushley, Fiji, Hilton Tokyo and several Taj Hotels, Resorts and Cynthia J.C. Ai Zarina Chekirbaeva, Thinley Palaces in India. The Silent Auction and International Choden, Terry Garrett, Craig Gima, Jamal Hadjisman, Eric Bazaar raised more than $35,000 for student Special Advisor Hanson, Ruriko Kumano, scholarships. Robin Campaniano The East-West Center Foundation and East-West Shafiq Meyer, Quamrun Nahar, David Pendleton, Center staff and participants are grateful to the Freemans, Steering Committee Puongpun Sananikone, Gao and to our generous table sponsors, individual supporters, Cynthia J.C. Ai, Joan M. Song, Kuhio Vogler, Rinchen and silent auction donors. Many volunteers and staff Bickson, Robin Campaniano, Wangyel, and Wumaier contributed to making the event a success: Doris Ching, Ronald Embry, “Elham” Yilamu Lyn Flanigan, Anthony Guerrero, Jr., Carleen Special thanks to the Gumapac, Stephanie Handa, following: Miriam Hellreich, Gerald J. AIG Hawai‘i Insurance Keir, Don K. Kim, Blair Company Odo, Iris R. Okawa, Ruth Hilton Hawaiian Village Staff M. Ono, Shaunagh Robbins, Noel Trainor, Blossom Tyau, East-West Center Association Gary Yoshida East-West Center Staff and Volunteers E WC Foundation 2

2006 An International Affair continued from previous page

Buck and Doreen Freeman receiving the Asia Pacific Robin Campaniano and Buck Freeman. Community Building Award from Roland Lagareta and Charles Morrison.

Kitty Lagareta, Gerald Keir, Doreen Freeman, Buck Freeman, Ruth Ono and Charles Morrison. Charles Morrison, Buck Freeman and Don Kim.

East-West Center students Song Gao, Selinaswati, Alfian, Alvaro Ribeiro, Nurhayati Idris, Maria Rita Pires, Encop Sopia, Francisca Maia, Nurdiyanah Syarifuddin, Agung Nugroho, Mohammad Shahinur Rahman and Yohei Shinozuka. E WC Foundation 3

Hawaiian chant performed by Laimana Budosan and Mahelani Wong. Silent Auction and International Bazaar raised over $35,000.

(seated, from left) Lyn Okazaki, Ella Isono, Leanne Liu, and Lynette (seated, from left) Denise Yee, Cynthia Ai-Embry, Nishat Kazi and Kanda. (standing, from left) Joichi Saito, Yoko Saito, Curtis Okazaki, Sandy Wong. (standing, from left) Clifford Wakatake, Tomas Chan, Denis Isono, Jeff Liu, and Neal Kanda. Mary Chan, Ronald Embry, David Ing, Richard Sato and Douglas Yee.

(seated, from left) Herb Wolff, Harriet Aoki, Dr. Lawrence Tseu and (seated, from left) Marchessa Kapiolani Marignoli, Rose Rafel, Darrel Eileen Tokita. (standing, from left) Rodney Chang, Bonnie Chang, Koninger, Claire Strasser, and Joan Bickson. (standing, from left) Eva Henry Stackpole, Vivian Stackpole, Judi Bramlett, and David Bramlett. Castro Verde, Kevin Sumida, Luanna Pang-Ching, Hans Strasser, and Judy Fong. E WC Foundation 4

An International Affair PRESIDENT Honolulu Academy of Arts Hawai‘i Theatre Center EAST-WEST continued SPONSORS HTH Corporation Hilton Hawaiian Village CENTER Robin K. Campaniano - Kobayashi, Sugita & Goda Beach Resort & Spa FOUNDATION AIG Hawai‘i Gary & Bach-Mai Larsen Hilton Istanbul BOARD OF Contributions to the Hilton Hawaiian Village Dr. Tai-Young Lee Hilton Times Square DIRECTORS East-West Center Theodore B. Lee Dr. Edison & Hilton Tokyo Bay Sony Hawai‘i Company received between Sallie Miyawaki Hilton Waikoloa Village Co-chairs Dr. Lawrence K.W. Tseu - Monarch Insurance Services Vicky Ho Gerald J. Keir December 1, 2005 and President, The Jackie February 28, 2006 will PriceWaterhouseCoopers Hy’s Steak House Don K. Kim Chan Charitable LLP appear in the next issue Foundation, USA David Ing of the Observer. Kenneth S. & Gerry Keir Directors STATESMAN Shaunagh G. Robbins Mary Kinoshita Cynthia J.C. Ai SPONSORS Patricia Saiki & Claire Langham Jean M. Ariyoshi Dr. Stanley M. Saiki, Jr. AIG Clarence Lau Joan M. Bickson Joichi Saito Central Pacific Bank Daniel B.T. Lau Edgar W.K. Cheng Dr. Il SaKong First Hawaiian Bank Florence Lau Paul M.F. Cheng Cephalon, Inc. Ambassador Charles B. John & Reiko Lewis Salmon, Jr. Bruce A. Coppa Dr. Edgar W.K. Cheng L’Uraku Restaurant John N. Hawkins Puongpun & Thanh Lo Sumi Makey Randy & Joey Harris Sananikone Miriam Hellreich Maui Divers Jewelry Charles E. Morrison Mrs. Haigo T.H. Shen Neal K. Kanda Indur & Eileen Michandani Alfred & Ruth Ono Teo Chiew Chinese Mahn-Je Kim Jean E. Rolles Association of Hawai‘i Millenium Hilton Christopher T. Kobayashi Urasenke Foundation University of Hawai‘i System Dr. Edison H. Miyawaki Daniel B.T. Lau of Hawai‘i - Wesleyan University Joan Namkoong Peter C. Lewis Dr. Genshitsu Sen General Fred C. Weyand, Wendy Nohara Philip H. Loughlin, III Gulab & Indru Watumull/ USA, Ret. Okonomiyaki Chibo Ruth M. Ono Jill & Sandy Friedman Restaurant G. Markus Polivka SILENT AUCTION AND Akeo Ono Shaunagh Robbins AMBASSADOR INTERNATIONAL Ruth & Alfred Ono SPONSORS Jean E. Rolles BAZAAR DONORS Jerry & Tsue Ostermann Cynthia J.C. Ai Joichi Saito Cynthia Ai & Outrigger Enterprises, Inc. Puongpun Sananikone Ronald L. Embry, M.D. Ronald L. Embry, M.D. Pacific and Asian Affairs Ratan N. Tata The Honolulu Advertiser Jean Ariyoshi Council Lawrence K.W. Tseu Iolani School AsiaManoa Chinese Paradise Cruise, Ltd. Admiral R.J. “Zap” Zlatoper Communications Pacific/ Restaurant Paul Pederson Roland & Kitty Lagareta Benji Bennington Mark & Nani Polivka EWCA Representative Daniel & Elizabeth Berman Dennis Richmond DIPLOMAT SPONSORS Lyn Flanigan Beverly Hilton Hotel Kenneth & Shaunagh Governor & Mrs. George Joan Bickson Robbins Ariyoshi and Family Craig Blumenthal & June Sato President ASDP (Asian Studies Selena Wong Charles E. Morrison Development Program) Wendy Sato Ambassador & Mrs. Richard W. Baker Michael Schuster & Raymond Burghardt Gale Goodman Joan M. Bickson Paul Chesley Mrs. Haigo T.H. Shen The Estate of James Campbell Matt Chung Taj Hotels Resorts and Albert C. Chang Contemporary Museum Palaces Paul M.F. Cheng Duc's Bistro Ratan Tata CIDE/UCLA EWC Arts Program Angela & Gilles Tisseraund Durrant Media Five EWCA Hawai‘i Chapter Indru & Gulab Watumull East-West Center Association EWCA Malaysia Chapter Rianna Williams EWCA Hawai‘i Chapter EWCA Southern California Anny Wong East-West Center Education Chapter Dr. Stanley Wong Program EWCA Washington DC Glenn Yamashita Finance Factors Foundation/ Chapter Daniel B.T. Lau William Zanella Lyn Flanigan Anonymous Eddie Flores Carol Fox Friends of the Mary Jo Freshley East-West Center Lawrence & Brenda Foster Hawaiian Electric Industries, Inc. Mary Jo Furgal Miriam Hellreich & Mary Hammond Dr. Philip Hellreich Hawai‘i International Film HGEA/AFSCME Festival