from the editor’s desk - future directions...

12
13 March 2013 | Vol. 4, 7. From the Editor’s Desk Dear FDI supporters, Welcome to the Strategic Weekly Analysis. This week, we begin in Kenya. We consider the implications of last week’s presidential election, before looking at the potentially revolutionary usage of mobile phone technology for real-time data collection in the Kenyan livestock industry. Next, we examine the increasingly precarious food security situation in Egypt, as the country’s grain reserves fall to record lows amid ongoing political and economic instability. Moving to the Middle East, we report on French initiatives to secure the sale of high-tech military equipment, such as the Dassault Rafale fighter jet, to regional governments, including Qatar, Kuwait and the United Arab Emirates. In India, we examine the decision to reinforce the disputed border with China in Arunachal Pradesh. New Delhi seems to be demonstrating a new-found confidence in its dealings with China on this contentious issue. Moving closer to home, we conclude by analysing Australia’s relationship with near-neighbour Indonesia, in light of a call from Foreign Minister Bob Carr to expand it further. Our next Strategic Analysis Paper is an analysis by FDI Visiting Fellow Saloni Salil of the emerging concept of the Indo- Pacific strategic theatre and India’s place within it. Ms Salil’s paper is scheduled for release later this week. I trust that you will enjoy this edition of the Strategic Weekly Analysis. Major General John Hartley AO (Retd) Institute Director and CEO Future Directions International *****

Upload: others

Post on 19-Mar-2020

3 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

13 March 2013 | Vol. 4, № 7.

From the Editor’s Desk

Dear FDI supporters,

Welcome to the Strategic Weekly

Analysis. This week, we begin in Kenya.

We consider the implications of last

week’s presidential election, before

looking at the potentially revolutionary

usage of mobile phone technology for

real-time data collection in the Kenyan

livestock industry.

Next, we examine the increasingly

precarious food security situation in

Egypt, as the country’s grain reserves fall

to record lows amid ongoing political and

economic instability.

Moving to the Middle East, we report on

French initiatives to secure the sale of

high-tech military equipment, such as the

Dassault Rafale fighter jet, to regional

governments, including Qatar, Kuwait and

the United Arab Emirates.

In India, we examine the decision to

reinforce the disputed border with China

in Arunachal Pradesh. New Delhi seems to

be demonstrating a new-found

confidence in its dealings with China on

this contentious issue.

Moving closer to home, we conclude by

analysing Australia’s relationship with

near-neighbour Indonesia, in light of a call

from Foreign Minister Bob Carr to expand

it further.

Our next Strategic Analysis Paper is an

analysis by FDI Visiting Fellow Saloni Salil

of the emerging concept of the Indo-

Pacific strategic theatre and India’s place

within it. Ms Salil’s paper is scheduled for

release later this week.

I trust that you will enjoy this edition of

the Strategic Weekly Analysis.

Major General John Hartley AO (Retd) Institute Director and CEO Future Directions International

*****

Page 2: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

Page 2 of 12

Challenges Ahead For Kenya Election Victor

After a close election, Kenya faces continuing uncertainty with a planned legal challenge

to the election result and its incoming leaders under investigation by the International

Criminal Court.

Background

Even as the dust settles on the Kenyan elections, President-elect Uhuru Kenyatta is

confronted by a number of challenges. The new leader faces a legal challenge from his main

opponent, Raila Odinga, who refuses to concede defeat, claiming that the election was

tainted by vote-rigging. Equally important will be the task of uniting Kenyans after the

divisiveness of the poll period and the uncertainty engendered by Odinga’s court challenge.

The new president and his deputy also face investigation by the International Criminal Court

(ICC) for Crimes against Humanity, relating to the violence that followed the 2007 election.

Comment

Having secured 50.03 per cent of the vote in the 4 March presidential election – thus

achieving the requirement of 50 per cent plus one vote – Uhuru Kenyatta has avoided a

second round run-off against the incumbent Prime Minister Raila Odinga by the narrowest

of margins.

But matters are by no means settled. Odinga is yet to concede defeat and has said that he

will challenge Kenyatta’s victory in the Kenyan Supreme Court. At the centre of Odinga’s

case are allegations of vote-rigging associated with the high number of informal or “spoiled”

votes, estimated at over 300,000. Over 70 per cent of eligible voters took part in six

simultaneous presidential, senatorial, regional and local government polls. Unfortunately,

the Independent Electoral and Boundaries Commission had not been able to carry out an

ideal test programme on the new technologies used for the polls.

The uncertainty surrounding a lengthy legal challenge will be unsettling for both Kenyans

and foreign investors in East Africa’s leading economy, but both Kenyatta and Odinga have

called for calm. So far, their calls have been heeded: goods are moving through the port at

Mombasa and the violence that followed the 2007 presidential election and claimed the

lives of over 1,100 people has been avoided. Complicating matters once again is the tribal

factionalism that Kenyatta and Deputy President-elect William Ruto – also indicted by the

ICC – stand accused of inciting five years ago. This year, Kenyans again voted largely along

tribal lines. Voters from Kenya’s two largest tribes, the Luo and Kikuyu, tended to support

Odinga and Kenyatta, respectively.

Both Kenyatta and Ruto have stated that they will co-operate with the ICC proceedings, but

the mere fact of having leaders indicted by the ICC puts Kenya and its chief Western allies in

a potentially awkward situation. A close ally of the United States and a key participant in the

African Union-led campaign against Islamist militant group al-Shabaab in Somalia, Kenya

may find its leaders facing travel bans and finance restrictions. That situation would be

awkward, but, more importantly, a possible reduction of diplomatic links would certainly not

Page 3: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

Page 3 of 12

be conducive to Kenya’s efforts in Somalia or its role as a leading regional actor.

Neighbouring countries are therefore unlikely to impose sanctions on Nairobi.

Although it is difficult at this stage to imagine Kenyatta and Ruto as Kenyan equivalents of

the pariah Sudanese President Omar al-Bashir, the situation has the potential to isolate

Kenya. If that happens, China may be willing to forge a closer relationship in the face of a

reduced Western presence. Certainly, a Kenya constrained by international sanctions and

isolation would be welcomed by al-Shabaab and mourned in Mogadishu.

Leighton G. Luke Manager Indian Ocean Research Programme [email protected]

*****

New Technology Set to Transform Kenyan Livestock Sector

Mobile phone technology is currently being tested by Kenya’s livestock industry, in the

hope of revolutionising real-time data collection and food security worldwide.

Background

The increased use of mobile phones across Africa has given rise to technology designed to

accurately report key livestock information, with real-time data availability. A number of

these technologies, supported by the Food and Agriculture Organization of the United

Nations (FAO), are currently being tested by Kenyan veterinarians to report animal disease

outbreaks and track vaccinations and veterinary treatment locations.

Comment

Early warning of disease outbreaks amongst Kenyan livestock will, in the near future, take a

matter of seconds rather than days or weeks. The FAO, partnering with Kenya’s Royal

Veterinary College and Vetaid, a local NGO, is supporting tests of EpiCollect, a mobile phone

application designed to track animal vaccinations and treatment campaigns throughout the

country.

EpiCollect was developed by researchers at the Imperial College of London’s School of Public

Health. It allows users to store and relay data to an online database, where officials and field

vets can monitor and track up to date and geographically accurate data on livestock.

The technology is currently in the testing phase. The expectation is that it will be made

available to community animal workers and village elders as internet-enabled phones

become more accessible. Estimates indicate that one-third of Kenyans have access to the

internet at present, with 99 per cent of this access from mobile devices.

Page 4: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

Page 4 of 12

With increased internet accessibility via mobile devices in Kenya and other regional

countries, a rise in the use of mobile applications by a multitude of industries is inevitable.

The FAO is currently investigating the success of EMPRES-i, a Global Animal Disease

Information System that reduces delays in updates on animal disease outbreaks and also, in

partnership with Oxfam, the use of Nokia Data Gathering (NDG) to monitor water points, as

a way of identifying drought conditions as early as possible. Similar uses of NDG in the

livestock industry in Uganda are already returning positive preliminary results.

Constant technology development and increased access to it will enable faster reporting and

response times and a wider distribution of important information. This will result in greater

food security through, for example, limiting the impact of animal disease outbreaks, the

early identification of drought conditions, and greater trade possibilities. In Kenya, where a

drought in 2011 left two million people in need of food aid, it may permit farmers to be

better prepared for droughts or heavy rains and help them to preserve their livelihoods.

Sinéad Lehane Research Assistant Global Food and Water Security Research Programme

*****

Egypt Faces Food Insecurity and Social Unrest as Strategic

Grain Stocks Fall

Egypt faces heightened food insecurity as the depletion of foreign reserves undermines the

government’s ability to maintain supplies of subsidised food. Subsequent increases in food

prices could spur public protests that would challenge the government’s hold on power.

Background

Egypt is the world’s largest grain importer. Domestic production levels fall well short of

demand and half of the 18.8 million tonnes of grain that Egypt consumes annually is

imported. Egypt’s General Authority for Supply Commodities (GASC) buys strategically on

global markets to ensure that wheat stocks are equal to at least six months’ consumption.

This is the level necessary to maintain the programme of heavily subsidised flat loaves that

are supplied to 40 per cent of Egypt’s population. Egypt has a history of civil unrest when

food prices rise and, after bread riots in 2008 and 2011, protecting the food supply is

considered crucial to maintaining social peace.

Comment

Egypt’s wheat imports have declined sharply this year, leading to a large depletion of wheat

stocks. Late last month, the Cabinet announced that strategic stocks had dropped to 2.3

million tonnes, sufficient to last only until 29 May. The government has claimed that it is

allocating top financing priority to wheat purchases and that the arrival of tendered

Page 5: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

Page 5 of 12

purchases for March and April will extend supplies to four months. Private importers and

financiers, however, have expressed scepticism, pointing to fewer grain ship arrivals as

evidence that GASC is having problems maintaining imports. Importers are also having

difficulty accessing foreign currency and have reported that some parties are rejecting

letters of credit used to finance purchases.

Egypt is currently experiencing severe economic problems. The Egyptian pound has dropped

eight per cent in value since the start of January and foreign reserves have fallen to US$13.6

billion, from US$36 billion prior to the fall of former president Hosni Mubarak. A safe level,

required to maintain a three-month grain supply, is considered to be US$15 billion. The fall

in the value of the pound is placing significant strain on the government budget, as it pushes

up the cost of state subsidies on food and energy that are predominantly US dollar-

denominated. Continued political turmoil has caused foreign investment and tourism to dry

up and measures to tighten capital controls are unsustainable in the long-term.

The budget deficit is forecast to hit ten per cent by the end of the financial year, a level the

government cannot afford and that would necessitate rises in the price of some goods and

services. To avoid that, Egypt will rely on the successful completion of negotiations for a

long-delayed US$4.8 billion loan from the IMF.

In the meantime, the government is supporting efforts to increase the domestic wheat

supply, by providing incentives and raising the price paid to domestic producers. An increase

in domestic output of 500,000 tonnes is expected, but this will still not meet overall needs.

The higher level of output is unlikely to be sustainable, given existing pressures on Egypt’s

agricultural sector. GASC is considering abandoning its public tender system, which has long

been a centre point of global grain markets. Australia is one of the four main suppliers of

Egyptian wheat imports. The abandonment of the public tender system will have

implications for Australian wheat producers, as it will remove a long-held source of market

transparency.

If the government fails to provide adequate food at acceptable prices, it is likely to lead to

serious civil unrest. The Egyptian Central Bank is not well placed to support grain supplies in

the case of escalating tensions. Given the fall in strategic supplies and foreign reserves, it is

unlikely that subsidised food provision could be maintained in the event of another

protracted period of unrest. This would heighten food insecurity for large sectors of the

population. It would also challenge the Muslim Brotherhood government’s hold on power

and could have destabilising effects across north-east Africa, particularly within the context

of potential turmoil resulting from coming parliamentary elections.

Lauren Power Research Analyst Global Food and Water Security Research Programme

*****

Page 6: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

Page 6 of 12

A Liaison Française for Qatar?

Qatar and France have recently wrapped up the Gulf Falcon 2013 military exercise, which

ran from 16 February to 7 March. The exercise provided a lucrative opportunity for France

to showcase the high-tech weaponry that Qatar and other Gulf states are considering

purchasing.

Background

The French air force, L’Armee de l’Air, recently participated in a comprehensive military

exercise operating out of Doha, which is part of France’s strategy for selling its defence

capabilities to the Middle East. France has been seeking to sell its Dassault Rafale fighter

overseas, having faced stiff competition from Britain’s BAE Eurofighter Typhoon, Sweden’s

entry-level Saab JAS-39 Gripen and the United States’ “gold-plated” F-35 Lightning II. Gulf

Falcon 2013 has provided an opportunity for France to showcase its most sophisticated

fighter yet.

Comment

Gulf Falcon is a quadrennial exercise between the French and Qatari armed forces. It is

aimed at increasing interoperability and expanding the capabilities of the armed forces of

both countries. It also serves as a selling platform for French defence technology and

equipment. It is this aspect of the exercise that is most important, as it has deep implications

for the future of both the Qatari Air Force and the French defence industry.

The Dassault Rafale has had something of an unfortunate history in the export market,

competing with fourth-generation jet fighters from several other countries and at a time

when the world was experiencing its worst financial crisis since the Great Depression.

Consequently, the Rafale has only been picked up by a few customers; notably India, which

purchased 126 aircraft, and, potentially, the United Arab Emirates and Kuwait, which are in

the process of procurement evaluations.

French President François Hollande visited Kuwait and the UAE in January 2013, in an

attempt to persuade the respective Emirs to purchase the Rafale. Hollande did not visit

Qatar on that trip but, on 10 February, the French Defence Minister, Jean-Yves Le Drian, met

with Qatari Crown Prince Tamin bin Hamad Al Thani. Discussions involved defence matters

and addressed Doha’s concerns about French military involvement in Mali. The French

Ministry of Defence has referred to Qatar as a ‘privileged guest’, quoting figures from

defence sales that, since 2007, have amounted to over €450 million. The full cost of

procuring the Rafale has not been made public yet, but estimates indicate that it will be

substantially lower than the US$8 billion price offered by former president Sarkozy to Brazil

in 2009.

President Hollande’s interest in selling the Rafale to Qatar stems from a long-standing Qatari

tradition of purchasing French military aircraft. The Qatari Air Force currently operates 14

French Aérospatiale Gazelle attack helicopters and 12 Dassault Mirage 2000-2005 models, in

addition to various other French aircraft and missiles. With an evaluation programme to

choose Qatar’s next generation of fighter aircraft currently underway, France

Page 7: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

Page 7 of 12

understandably has great interest in the outcome. A decision was expected from Doha at

the end of 2012, but is still yet to be announced. The purchase is expected to involve

between 24 and 36 aircraft.

As well as Qatar, France has been courting the governments of Kuwait and the UAE.

President Hollande is hoping that the UAE will purchase 60 Rafales, giving encouragement to

both Kuwait and Qatar to also purchase the jet fighter. The UAE purchase, if it goes through,

would be worth an estimated US$10 billion.

The Middle East is a profitable market for Western defence industries. As threats mount in

the region, with instability in Syria and Iraq and a hostile Iran, many of the regional states in

have increased their defence spending. This is especially the case in the Gulf States, which

live in the shadow of larger or more sophisticated militaries, such as Israel and Turkey, and

which have particular concerns about the Iranian navy.

The potential purchase of the Rafale by Qatar will be indicative of how Doha perceives its

strategic environment. With a relatively low price tag of US$82 million per aircraft, the

Rafale represents a sound investment and provides sufficient capabilities to address the

contingencies that Qatar would be most likely to face. The Eurofighter Typhoon, however, is

a natural competitor with a similar range of capabilities and a price comparable to that of

the Rafale, but it has performed in fewer operations and thus is less proven. A purchase of

the F-35 Lightning II is also possible, but would be more a political decision than militarily

sound. The F-35 is a “gold-plated” aircraft, with abilities beyond the tactical requirements of

the region and it carries a price-tag to match, with an estimated cost of US$238 million per

unit.1

Gulf Falcon 2013 will have served as a major exhibition for the Rafale and, with its proven

success in Operation Harmattan in Libya in 2011 and Operation Serval in Mali in 2012, it

meets the region’s strategic needs. France’s visibility in Gulf Falcon and visits such as those

by President Hollande may lift the profile of the Rafale further and encourage other

countries to also purchase it.

Gustavo Mendiolaza Research Analyst Indian Ocean Research Programme [email protected]

*****

1 Caverley, J., and Kapstein, E., 2012, ‘Arms Away: How Washington Squandered Its Monopoly on

Weapons Sales’, Foreign Affairs, Vol. 91, №. 5, pp. 1-3.

Page 8: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

Page 8 of 12

India Reinforces its Eastern Border with China

For practically the first time since it lost the 1962 war with China, India is reinforcing its

Arunachal Pradesh border with that country, demonstrating a self-assurance it previously

lacked.

Background

India’s Minister of Defence, A. K. Antony, recently informed the Upper House of Parliament

that the Indian Army would raise thirty infantry battalions (approximately thirty thousand

troops) to ‘enhance combat capacity’. These troops will complement a 90,000-strong Strike

Force, which is to be deployed along India’s eastern border with China.

Comment

India has been in the news of late for its high-tech military purchases and R&D. Its

acquisition of fighter aircraft from France, development of fifth-generation fighters with

Russia and purchases of submarines from Germany, have all been widely reported. Not quite

as prominent, however, have been its efforts to enhance the capability of its infantry.

The 2012-13 budget for capital acquisitions to modernise the Indian Army is approximately

US$2.75 billion. This forms part of an estimated cost of US$16 billion to raise the Strike

Force, which will be spread over the twelfth Five Year Plan (2012-17). These new forces will

be in addition to the two mountain divisions raised since 2009 and stationed at Tezpur and

Dimapur. The soldiers will eventually be provided with modern assault rifles to replace the

inefficient, indigenously-built INSAS 5.56mm rifle. The new rifles will be sourced from one of

five vendors, including Colt, Sig Sauer and Israel’s IWI. Additionally, troops will be equipped

with light machine guns, sniper rifles and “bunker-busting” anti-materiél rifles.

These troop and weapons enhancements complement other purchases of tanks and troop

carriers. More important, however, is the development of roads through mountainous

terrain leading to the border. India is playing catch-up with China, which can move thirty

army divisions, each comprising fifteen thousand soldiers, to the Line of Actual Control in a

relatively short time.

While India has only now started to develop the road infrastructure on its side of the border

in Arunachal Pradesh, China has built over 58,000 kilometres of roads, five operational air

bases and a vast rail network on its side of the border, close to the area it calls South Tibet,

which it claims as Chinese territory. In contrast, the Indian Army’s Border Roads

Organisation (BRO) has constructed only about 2,700 km of roads in Arunachal Pradesh; with

only twelve of a planned seventy-three roads constructed so far, India lags far behind

Chinese efforts.

This, though, is not due to inefficiency or ineptitude. The mountains through which these

roads are to be built take their toll on human lives and machinery. Earthmoving equipment,

snow ploughs and other machinery are reduced to just over thirty per cent of their life span

in these conditions. That the Changla and Khardungla roads to the border are kept open

even in winter’s sub-zero temperatures and snowstorms, gives an indication of the efforts

Page 9: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

Page 9 of 12

and expertise of the BRO engineers. The toll in human lives is high, higher even than that of

the troops fighting in Kashmir.

Despite this, seventy-five roads, totalling approximately 6,000 km, are under construction,

with another 7,000 km planned. These roads will ferry Indian troop reinforcements and

supplies to positions at the border. The truth of the dictum that politicians and armchair

strategists discuss tactics but professionals study logistics, is pronounced here.

More positively, this new infrastructure and troop enhancement demonstrates a new-found

confidence in India’s strategic thinking. In 1962, as Indian troops retreated before advancing

Chinese soldiers, they burned bridges and destroyed roads and other infrastructure so that

the Chinese could not use them to progress further into India. After these events, no

infrastructure development took place in Arunachal Pradesh for decades as a tactic to slow

any Chinese invasion. Now, New Delhi believes, it can stand up to an aggressive China.

A major task of the Strike Force is to take the fight to Chinese troops in Tibet. The Indian

army has proposed a tactical airlift capacity, with the Air Force deploying its C-130J aircraft

to position paratroopers deep in enemy territory. India has also deployed thirty-six Sukhoi

Su-30MKI fighter aircraft In Tezpur. The purchase of 126 Dassault Rafale fighters means that

India could also re-position the Su-30MKI aircraft it has on the Pakistani border, east to the

Chinese border. This would provide even more capacity should it be required.

It appears India has indeed turned a corner in its strategic thinking and self-belief – as

becomes a regional power and aspirant to great power status.

Lindsay Hughes Research Analyst Indian Ocean Research Programme [email protected]

*****

Australia Seeking to Deepen Relations with Indonesia

At the recent Indonesia-Australia dialogue, Foreign Minister Bob Carr stressed the

importance of deepening relations with Indonesia and building stronger cultural and

people-to-people ties.

Background

At the Indonesia-Australia dialogue, Foreign Minister Bob Carr said relations

between Australia and Indonesia are at a ‘near historic high’ but stressed more needed to be

done to deepen the relationship. The annual conference, which was held over 3-4 March,

was aimed at promoting non-governmental relations and a greater understanding between

the two countries. As Asia continues its rise, deeper relations with countries such as

Page 10: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

Page 10 of 12

Indonesia that go beyond trade, diplomacy and security, will be critical in determining

whether Australia fully capitalises on the so-called “Asian Century”.

Comment

Speaking to a range of business people and former diplomats on 4 March, Carr praised the

current relationship but said more needed to be further relations. ‘It is time to build on our

existing partnership to elevate bilateral relations to a higher level’, he declared. He went on

to say that ‘this effort should not be the exclusive domain of politicians, diplomats and

officials, but should include a range of people, including students, business people,

academics, scientists, athletes and artists.

Carr’s comments come at a crucial time for Australia-Indonesia relations. Trade and security

dealings between the two states have scarcely been better; bilateral trade has grown by

over 60 per cent in the last ten years alone. But beyond these areas the relationship has

largely failed to achieve its full potential. At a time when Australia should be moving closer

to Indonesia, its Indonesia “literacy” and cultural ties have been declining.

Indeed, polling by the Lowy Institute and Newspoll indicates that ordinary citizens know little

about each other’s countries. Less than half of the Australians polled knew that Indonesia

was a democracy and one of the fastest-growing economies in the world. Similarly, only 14

per cent of Indonesians knew that Australia was Indonesia’s largest aid partner. This lack of

understanding should not be understated; without broader awareness and engagement, the

relationship is unlikely to move beyond the traditional realms of trade, security and

diplomacy.

In fact, a recent government-commissioned report went even further, warning of the

possible consequences should Australia continue on its current path. The Murdoch

University paper said that unless Australia significantly improved its understanding of

Indonesian culture and language, it risked getting left behind and ‘losing *its+ competitive

advantage’. As Carr rightly acknowledges, ‘the lack of knowledge between our two societies

remains a key challenge’. Building closer cultural and person-to-person ties is easier said

than done, however.

Though more than a million Australians visit Indonesia each year, few venture beyond

the island of Bali. Australia’s love affair with the tourist island may be great for its locals,

many of whom have taken to calling the island kampong bule, or “whitey town”, but it does

little to boost cultural ties and understanding beyond those confines.

Public diplomacy that addresses long-standing attitudes and opinions must be improved on

both sides. For its part, Jakarta should put greater emphasis on promoting tourist

destinations other than Bali, which would better showcase the diversity of cultures and

lifestyles across the archipelago. But Canberra, especially, must work on shifting the

attitudes of its citizens. Indonesia is the fourth most populous nation in the world and the

largest Muslim country; it comprises almost 18,000 islands, not just Bali.

In the recent Asian Century White Paper, the Federal Government outlined a number of

ways in which it aimed to boost non-governmental ties. These included: promoting

Page 11: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

Page 11 of 12

Indonesian language studies; building greater student networks; extending cultural grants;

furthering private trade relations and even improving media coverage of Asia and Indonesia.

This certainly sounds good in theory. In practice, however, a more concerted effort and

greater funding will be required to achieve these goals and reverse the current trend.

Should Australia deepen relations with the archipelago state, the potential rewards may be

huge. One of the fastest-growing economies in the world, Indonesia’s recent pace has

outstripped even the likes of China and India; it is predicted to be the seventh largest

economy in the world by 2030. It is also going to be home to one of the largest middle

classes in the world. Although Australia’s current bilateral trade with Indonesia, our

thirteenth-largest trading partner, is currently modest, there are promising signs for the

future. No longer considered a “screen door” blocking Australia from the rest of Asia,

Indonesia’s proximity and projected rise makes it one of Canberra’s most important allies in

the region.

But that is no sure thing. Australia must do all that it can to build stronger cultural ties with

Indonesia. That would then position it to truly capitalise on Indonesia’s projected ascent. As

David T. Hill concluded in his Murdoch University report, ‘Australia’s bilateral relationship

with Indonesia is arguably our most important …. Now, more than ever, there is a need for

collaboration and partnership across all aspects of the … relationship’.

Andrew Manners Research Analyst Indian Ocean Research Programme [email protected]

*****

What’s Next?

• Burmese president Thein Sein is to visit Australia from 17-19 March. He will meet with Prime Minister Julia Gillard, Governor-General Quentin Bryce and business leaders. He is the first Burmese head of state to visit Australia since 1974.

• The Flinders University Centre for United States and Asia Policy Studies (CUSAPS) is

hosting a free half-day seminar titled “Building Confidence in Times of Structural Change” that will investigate security challenges and opportunities in the emerging Indo-Pacific region and how states might seek to best manage them. The venue is the Adelaide Convention Centre, North Terrace, from 2.30pm-6.00pm on 19 March. To register, contact Ali Lehman on [email protected] or (08) 8201 2186.

• The New Zealand Government and the European Union are hosting the Pacific

Energy Summit in Auckland from 24-26 March, preceded by two days in Tonga to see the Tonga Energy Roadmap in action (21-22 March). The focus of the Summit is on investment in both renewable energy and energy efficiency.

Page 12: From the Editor’s Desk - Future Directions Internationalfuturedirections.org.au/wp-content/uploads/2013/03/... · Even as the dust settles on the Kenyan elections, President-elect

Page 12 of 12

Any opinions or views expressed in this paper are those of the individual author, unless stated to be those of Future Directions International. Published by Future Directions International Pty Ltd. 80 Birdwood Parade, Dalkeith, WA 6009 Tel: +61 8 9389 9831 Fax: +61 8 9389 8803 E-mail: [email protected] Web: www.futuredirections.org.au