Judging by its recent provocative missile tests, North Korea will be a major obstacle on China’s path to regional supremacy, Xuan Loc Doan writes. As a rising power, China’s ultimate ambition is to replace the US as the dominant player in Asia. But China can only overtake the US if the world’s biggest economy and military withdraws from this strategically and economically important region, something that looks increasingly unlikely as Pyongyang’s provocations force Washington to intensify its presence. READ THE STORY HERE
Uncertainty over America’s commitment to Pacific security could lead Tokyo to conclude that “going nuclear” might be its best recourse, Richard A Bitzinger writes. Japan has the technological capacity to build an atomic bomb in a relatively short time – months, perhaps, a few years at the most. But becoming a nuclear-weapons state is a lot harder than it or most others think. It is not simply a matter of building an atomic bomb. Yes, if Japan were to build a nuclear bomb and test it, it would have resonance throughout Asia, and, indeed, the rest of the world. But it would require much, much more for Tokyo to create a credible nuclear deterrent. Massive fiscal, infrastructural and technological challenges aside, it would likely face massive public opposition. READ THE STORY HERE
To create a more sophisticated financial system that facilitates economic development, institutional reform is required, Teun van Vlerken writes. First, regulatory capacity should be improved; the country’s antiquated institutions tasked with prudential oversight are not up to the job of regulating a rapidly expanding financial sector. Second, generally accepted accounting standards must become the norm across the board. Third, Myanmar needs a credit bureau. With many entrepreneurs still borrowing in their personal capacity, a nationwide database detailing the credit history of individuals would support banks and micro-finance institutions alike in their credit decision process. READ THE STORY HERE