Geo-Economics and Sri Lankan Foreign Policy Kanishka Jayasuriya @fafner100

Competing geo-economic projects The ‘Belt and Road’ initiative, meeting the development needs of China, countries along the routes and the region at large, will serve the common interests of relevant parties and answer the call of our time for regional and global cooperation. (Xi Jinping, 2015) As a Pacific power, the United States has pushed to develop a high-standard Trans-Pacific Partnership . . . [that] makes sure we write the rules of the road for trade in the 21st century.. . . America should write the rules. (Barack Obama, 2016) @fafner100

What is geo-economics ? @fafner100 Contending perspectives : The rise of economic statecraft- use of commercial methods for diplomatic purposes. Diplomatic strategies/projects increasingly couched in terms of building economic competitiveness. ‘Act East’ Modi Transnationalisation of capital and the different security and political strategies through which securing and facilitation of the commercial opportunities. @fafner100

Key drivers/challenges @fafner100

GE1 : ‘Asianisation’ and transnational capital Rising inter regional trade The figures are supported by the latest Asian Development Bank (ADB) findings which show that intra-Asia trade now accounts for 57 per cent of total trade in the region. scale of capital outflows from China. Estimates of the exact quantity of such flows can vary quite significantly, with one putting outflows in 2015 as high as US$1 trillion. But this is a political and economic process. Chinese visions of an integrated Asia and US response – interactive effects. China centred with Continental and maritime dimension @fafner100

@fafner100

GE 1 Integrating Asia ; geo-economic contestation Key driver is the China’s attempt to build strategic connectivity around an integrated Asia and US response to this - ‘connectivity and Regulatory Geographies corridor that connects hubs of economic resources, infrastructure actors, across contiguous and heterogeneous geographies. Subnational Political projects-driven by transformations in Chinese capitalism - create ( and imagine ) new forms of territorial and their own regulatory geographies. @fafner100

Trade and security –India - US @fafner100

GE2. Trade/security nexus and contested political architectures Geoeconomics is increasingly driving security and foreign policy . It is the nexus of these two that is important- RCEP Versus the now defunct TPP Economisation of security and the securitisation of economics ( PACOM and Geo- economic containment) @fafner100

GE 3 Recrafting boundaries – transforming governance/state Geoeconomic challenges recrafts and leads permeable the external/internal boundaries of the state , the relationship with sub national actors and non state/civil actors Example : higher education – Korea’s vision 2025, Australia’s New Colombo plan and Philippines Diplomatic investment and priorities. @fafner100

Implications for Foreign policy @fafner100

Policy implication1: Region wide strategic/economic govrnance This Asia wide focus and engagement with broader Asia wide strategic/economic systems. This would include bodies East Asia Summit and the ASEAN++ arrangements. Much to be gained by collaborating and coalition building with similar countries such as Vietnam/ Indonesia/Phillipines @fafner100

Policy implication2a : Indian Ocean and the Blue economy Greater cooperation in areas like marine scientific research, maritime search and rescue, and marine environmental protection could help defuse tensions and build trust between major powers. Indian Ocean rim states are considering how to seize the opportunities emerging from blue economy sectors for higher growth. @fafner100

Policy implication2b: Indian Ocean – connectivity and NTS agenda Security needs to be understood as a multidimensional concept—that is, as including human security, economic and resources security, maritime security and environmental. Maritime connectivity was an important agenda item for Indonesia during the APEC Focus Group Discussion in April 2013. Jokowi’s global maritime axis. The Indo-Pacific will loom large.  @fafner100

Policy implication 3 : Governing Foreign policy Whole of government policies – economic/security policies. Strategic coordination within the core executive Building stakeholder participation ( Aust white paper on engagement Identify niche areas – migration , education , blue economy @fafner100