South African Foreign Policy Review: Volume 1

CHAPTER 11. South Africa and East Asia: Missed opportunities

215 CHAPTER 11 South Africa and East Asia Missedopportunities Garth Shelton INTRODUCTION O ver the last three decades, the world has witnessed a major economic power shift towards East Asia, and the region is rapidly becoming the centre of global manufacturing and wealth creation. China has moved from being one of the poorest nations in the world to becoming second only to the United States. The Economist has argued that the ‘most momentous event’ in the last half of the twentieth century was the modernisation of East Asia. The spectacular economic growth of East Asia focusing first on Japan and then the Asian Tigers, South Korea, Taiwan, Hong Kong and Singapore, followed by mainland China, was one of the defining events of the twentieth century.1 If China maintains its current rate of growth, its economy will be larger than that of the US by 2025, or perhaps even before that date.2 The post-World War II Asian renaissance provides a useful model for African economic development and political evolution. As William McCord has suggested: ‘The Asian renaissance adds immeasurably to our store of knowledge concerning how and why countries develop.’3 The pragmatic and exceptionally successful model of development implemented by many of the East Asian countries following World War II offers a convincing alternative to laissez-faire capitalism, or planned economies. The Asian renaissance was not a culturally unique experience and thus holds many lessons for Africa as the continent embarks on its own rebirth. Since World War II, a number of East Asian economies have achieved rapid and equitable growth. The relationship between the government, private sector and the market, together with activist public policies, provides an excellent model for other developing countries, especially South Africa. The various poverty alleviation and skills enhancement programmes, which have been implemented with great success in East Asia, provide 216 guidelines for similar activities in other parts of the developing world, South Africa included. Presently, close to 40 per cent of South Africa’s international trade is with Asia and economic links with this region are expected to expand rapidly as Asian development accelerates. Trade with traditional European partners is likely to be surpassed by new Asian opportunities within the next five to ten years. Moreover, as the centre of global economic leadership shifts from the Atlantic to the Pacific, South Africans will increasingly need to strengthen their ability to participate effectively in this process.4 Of South Africa’s top 15 trade partners, five are in the broader East Asian region (Japan, China, Taiwan, South Korea and Australia). Moreover, recent years have seen a significant increase in trade with most East Asian countries , especially China. Post-1994, the challenge for South Africa has been to develop a mutually beneficial relationship with the dynamic and highly competitive East Asian economies. In reviewing South Africa’s engagement with this region, this chapter will argue that South Africa has established constructive trade-based relationships, but has missed opportunities to attract investment and to build stronger economic partnerships. SOUTH AFRICA’S NATIONAL INTERESTS Despite interminable scholarly debate on defining ‘national interest’, the concept remains a valuable instrument to guide and assess foreign policymaking and implementation, and policy outcomes. Focusing on the promotion of South Africa’s national interests in relations with key East Asian trade partners offers a useful framework for investigation and assessment. Donald Nuechterlin’s conceptualisation of the national interest provides a convincing instrument for foreign policy analysis. He defines national interests as the ‘perceived need and desires of one sovereign state in relation to the sovereign states comprising its external environment’.5 The national interest relates to the external environment, while the ‘public interest’ best describes governmental policy-making and interaction with the domestic environment. The national interest implies the interests of the nation in its entirety, not just the interests of private groups (or individual policymakers ), bureaucratic entities, or political Organizations within the state. The objective in promoting the national interest is to advance the well-being and long-term prosperity of all citizens. Policymakers are guided in their decisions about international relations by basic values (usually outlined in a national constitution) that they and their people hold to be important to their national well-being. At the same time, states have more than one interest, and differing interests compete for CHAPTER 11 217 state resources and attention. The foreign policy decision-making system must balance resources...