Shanghai Forum 2016 Cooperation & Sharing Session

Europe and Asia Hand in Hand: Breaking the Rigidity of Structure Reform in Economy and Social Affairs

Co-organizers:
Center for European Studies, Fudan University;
Xinhua News Agency, Shanghai Bureau

Host: Ding Chun

Introduction of the Host:

Ding Chun, Professor of Economics, Ph.D. supervisor, Jean Monnet Chair, director of Centre for European Studies as well as Dutch Study Centre, Fudan University, China, is specialized and engaged in research and teaching of European integration, European Economy, mode of European welfare state, social protection system, and EU-China relations. Prof. Ding has published more than 150 articles written in Chinese, English, and German in academic journals like World Economy Studies, European Studies, International Economic Review, Asia Pacific Journal of EU Studies, Zeit on line, etc. He has presided research projects sponsored by National Social Science Funds, Ministry of Education Humanities and Social Science Funds, and also hosted European academic programs including ESCP, Jean Monnet European Module and Jean Monnet Chairs. He is also the organizer of Fudan Ambassador Forum, European Forum and Fudan-Ebert Forum. He holds positions including the Vice President and Vice Secretary General of Chinese Society for EU Studies, Vice President of Shanghai Institute of European Studies, the Secretary General of Chinese Association of Social Security World Study Branch, Councilor of Chinese Society for Studies on World Economy. He is the senior researcher in Institute of European integration studies (ZEI) at Bonn University, Germany; Member of International Academic Board at Centre for European Research at Gothenburg University, Swiss, and Academic Board Member at Centre for European Studies at Sichuan University, China etc., and Member of Expert Committee at Global Agenda Council on Europe, World Economic Forum.

Theme Interpretation:

Though the critical time of 2008 global financial crisis has passed, the recovery of world economy is still stumbling and sluggish, together with the rise of related social problems. European and Asian countries and regions implemented economic and social measures, but effect of such measures were lackluster and structural reform encountered institutional bottleneck. In Europe, economic section suffered from dim consumption and investment expectation, sluggish private investment, rigid labor market with high youth unemployment rate, and deficiency of innovation. In aspect of social section, reform of social security system and labor market is not effective, while aging problem and impact of globalization are along with new problems like refugee flows. The political section is not better, with scepticism and take-off trend rising up. In Asia, economically, emerging markets including China are slowing down in economic growth and structural imbalance is acute, which demands prompt solutions to resolve how to accelerate the transformation of industrial structure and development model, construction of the financial system and transition, adaptation and participation in global high-quality investment and trade by developed countries, and formation of new system arrangement in financial field. In social section, how to reform and improve social security system and balance the distribution of social welfare have the direct bearing on the position of Asia in post-crisis era. Thus, for European and Asian regions, the key to solve these problems lies in the approach of how to learn and coordinate mutually in addition to conventional stimulus to economy and policy tool to solve social problems, and the approach of how to break through the rigid status of economic and social structural reform, impel the innovation of economic and social institutions and make joint efforts.

By cooperation with Friedrich-Ebert Foundation, Germany and Xinhua News Agency, Shanghai Branch, this roundtable is intended to synthesize multiple-discipline domestic and overseas experts and officials to discuss the following topics: 1. European and Asian economic and social problems and their performance in the post-crisis era; 2. Boost resolution of major economic and social problems, including barriers and suggestions of structural reform, in Europe and Asia; 3. How could Europe and Asia learn from each other and make joint efforts to build up cross-region institutional arrangement and cooperation and innovation to encounter challenges in post-crisis era.

Towards Efficient Regional Integration: What Can Europe and Asia Learn from Each Other?

Co-organizers:
Polish Institute of International Affairs (PISM) ;
School of Economics, Fudan University

Host: Sebastian Plociennik & Luo Changyuan

Introduction of the Host:

Sebastian Płóciennik, Ph.D. (habil), is an economist and lawyer, and since 2014 he has served as the head of the EU programme at the Polish Institute of International Affairs (PISM), a Warsaw-based think tank. Since 2015, he has also served as the co-president of the Foundation for Polish-German Cooperation. His areas of expertise include German economic policy, Eurozone issues and institutional economics. He has authored numerous publications, among them monographs exploring the evolution of German capitalism after the Agenda 2010 reforms and the CoreEurope concepts in German European policy after 1949.   

Dr. Płóciennik graduated with a degree in law from Wrocław University and received his Ph.D. and habilitation degree from the Wrocław University of Economics. Before joining PISM, he worked as an assistant professor at the Willy Brandt Centre for German and European Studies in Wrocław and the Institute of International Studies at Wrocław University. He was a coordinator of the international master programme “Global Studies – a European Perspective”, an Erasmus Mundus consortium of HEI. He has taught as a visiting professor at Dalhousie University, Otto-von GuerickeUniversität, Leipzig University, Stellenbosch University, Jawaharlal Nehru University, and Korea University, among others. He has been awarded grants from the German Academic Foreign Service (DAAD) at the Freie University of Berlin, the Commerzbank Foundation and the Polish Committee for Research (KBN).

Luo Changyuan is the Professor at School of Economics, Fudan University. He is the Deputy Director of Institute of World Economy, Fudan University. He is also a research fellow at Center for European Studies and an adjunct research fellow at China Center for Economic Studies, Fudan University. His research interests mainly lie in international economics and development economics. Prof. Luo obtained his Ph.D. in Economics, China Center for Economic Studies, Fudan University in 2006. He was an exchange student at Vienna University of Economics and Business Administration in 2005. He was a visiting scholar at Université Paris 1 PanthéonSorbonne in 2007 and a visiting research fellow at World Institute for Development Economics Research, Helsinki, Finland from 2007 to 2008. He was a visiting professor at Sungkyunkwan University, Seoul, Korea in 2009 and 2010. From 2010 to 2011, he was a visiting scholar at St Antony’s College, Oxford University. Prof. Luo has published many articles in The World Economy、China & World Economy、Journal of International Trade & Economic Development、Revue Internationale de Politique Comparé、Social Sciences in China、Frontiers of Economics in China and some leading Chinese economic journals. He also has published some monographs and translated some books.

Theme Interpretation:

In the discussions about prospects for regional integration in the world economy, it is relatively common to hear that Asia will sooner or later move to a phase of deeper economic and political integration. In this process, Asia will certainly observe, analyse and maybe even emulate Europe, which in recent decades has achieved a significant level of integration of dozens of diverse countries. So the question of what Asia can take from the European experience is absolutely well-founded, and serves as a key in our panel. However, as the discussion is a two-way learning process, we also think that Europeans can learn a lot from Asia about “market of ideas” in integration.

It is the right time now to launch a debate on this topic. On the one hand, there are many voices against the idea of regional integration. The economic and financial crisis, which began in 2007 and which has had a jarring impact on the world economy, has strengthened scepticism towards focal elements of integration, like free trade or movement of capital. The weakness of the Eurozone, which is currently the most advanced integration project, has its own share of difficulties that add to this perception. On the other hand, there are many hints towards the opposite view. The world is increasingly multipolar, with many rising centres of economic and political power. The recent expansion of inter-regional trade and cooperation agreements clearly supports this opinion. Furthermore, Asia is among the regions with the highest integration intensity. Several initiatives have been already developed: AFTA, ASEAN plus one, ASEN plus three, the China-Korea-Japan dialogue and the economic partnership agreement between Japan and Singapore. Also the European Union seems to have started a new phase of deepening towards a fiscal union.

Assuming that regional integration tendencies in the world economy will be strengthened rather than weakened, we should start thinking about bringing different perspectives together and exchanging views on how integration can work more efficiently. In the panel, an opportunity is presented to precisely bring the European and Asian perspectives together and discuss the efficiency of regional economic integration. This goal goes beyond simple analysis of Europe’s current position and speculation as to when Asia will achieve a similar level of integration—moving from free trade via a common market to economic to a political union. It is rather a discussion on how integration could not only balance the interests of national economies in harmonious developing, but also contribute to creation of a political community. These issues will be introduced by the four leading questions of the panel.

The first question is how to manage the flow of goods and services as well as production factors like capital, labour and knowledge, so that all member states enjoy growth and avoid an overconcentration of resources and production. In other words, it is about how to design the common market. The European Union has based itself on the principle of competition, corrected by regulation of the market by common institutions,

and by structural and regional policies to favour peripheries. The Asian integration uses this type of institutional modus less. Its driving forces are large industrial corporations, which have created long chains of production sites across the region and, to some extent, enforce the current level of market integration.

Second, regional integration should contain mechanisms of macroeconomic coordination in order to prevent— and, if necessary, to fight against—crises. This means common efforts on monetary, fiscal and exchange rate policy. But how far should these policies stretch to also ensure enough flexibility? Europe’s experience, which is based on a full monetary union and partial, incomplete fiscal integration as well as on a specific adjustment modus called “growth friendly fiscal consolidation”, can serve as a model. Asia’s integration is still far from this type of coordination, however, and there are a rising number of initiatives moving in this direction, such as the Chiang Mai Initiative Multilateralization (CMIM) or the ASEAN+3, Macroeconomic Research Office (AMRO).

Third, every integration project needs a credible policy of enlargements. One of the greatest achievements of the European Union has been a successful mechanism for attracting new members. It has been, so far, the most efficient measure to spread economic prosperity and peace. However, potential candidates for membership are usually much poorer than the core countries, and thus their integration demands special approaches, including membership criteria, trade preferences, asymmetric liberalization, capacitybuilding, consulting and political dialogue. The panel is aimed at summing up the European experience and checking whether Asia has the capacity to follow a similar type of developmental approach.

Fourth, regional economic integration cannot survive without some measure of political integration. It should be based on a strong legitimacy, which can create long-term support for the idea of integration. But this is not sufficient. Sustainable cooperation needs a decision-making system in which a voice of smaller members is not ignored and which simultaneously accepts a certain leadership from the bigger and more influential members. Europe has developed a sophisticated and consensus-building system that tries to combine all these elements—generally with success but not without flaws. Asia will go its own way, but it is interesting to consider whether the same mechanisms will be in applied.

The panel will be supposed by a research paper prepared by the Polish Institute of International Affairs (PISM), which will contain the above-mentioned elements of sustainable integration from a European point of view. After the conference, PISM, together with FDDI, will prepare a concluding paper, which will compare the European and Asian perspectives on the issue of sustainable integration.

The Free Market in Northeast Asia

Co-organizers:
Center for Japanese Studies, Institute of International Studies, Fudan University ;
The University of Tokyo

Host: Hu Lingyuan

Introduction of the Host:

Dr. Hu Lingyuan is the Director and Professor of international politics at the Center for Japanese Studies, Institute of International Studies, Fudan University, Deputy Director of Asian-Pacific Institute, Shanghai Think Tank. He got his Ph.D. in 1991 and his research concentrates on Sino-Japanese relations, culture, civilization and international relations. He was a Visiting Professor at the University of Tokyo, Kyoto University and the University of Hong Kong respectively. He is the Deputy Secretary-general of Chinese Association for Japanese Studies. He has published 3 books and over 60 papers in Chinese, Japanese and English, and edited 6 books.

Theme Interpretation:

Against the background of the impasse in the Doha round of WTO negotiations and the difficulties faced by the multilateral trading system, regional and cross-regional as well as bilateral and plurilateral trade negotiations are becoming the mainstream international economic negotiations and the focus of global attention. The construction of FTAs in the Asia-Pacific regional has outpaced the rest of the world in absolute number, complexity and future scenarios. Traditionally, big countries tend to establish preferential trade arrangements like FTAs with small to medium sized countries mainly based on diplomatic and strategic considerations. However, today trade negotiations among the major powers are on the rise with a view to rule-making and agendasetting. In this context, the Asia-Pacific region has witnessed the coexistence of two main negotiations, namely the Trans-Pacific Partnership (TPP) promoted by the United States which had reached a preliminary agreement in October 2015, and the Regional Comprehensive Economic Partnership (RCEP) led by the ASEAN with China’s active participation which still faces an uncertain future. Meanwhile, the free market construction in Northeast Asia is also facing new variables, as the China-South Korea FTA has come into effect in December 2015; the Japan-Korea FTA has stalled for a long time while the proposed China-Japan-Korea FTA calls for greater political determination and interest exchange.

More wisdom and will is urgently needed to accelerate the regional economic integration in Northeast Asia, which is not only closely linked with the structural demand of China’s export-oriented economy, but also related to the long-term peace, stability and development in the region. We look forward to conducting academic exchange and policy dialogue across disciplines at this forum, bringing together world renowned scholars in this field, and making contributions to the new development of a free market in Northeast Asia with theoretical and empirical studies, reference of history and “the others”, and the insights of both “insiders” and “outsiders”.

China and Latin America:  the Development Partnership of Trans-Pacific

Co-organizer: Center for BRICS Studies, Fudan Development Institute

Host: Shen Yi

Introduction of the Host:

Shen Yi is the Associate Professor of Department of International Politics of Fudan University, Director of Center for BRICS Studies of Fudan Development Institute and Deputy Director of Centre for Cyberspace Governance Studies of Fudan University. He also serves as a guest research fellow of China Institute of Cyberspace. He studies information technology, international security, communication and foreign affairs, national information security strategies and relations among developed nations. His research was published in World Economics and Politics, International Review, China Review, Messenger, Wenhui Daily, and Oriental Morning Post. He is the independent author of National Network Security Strategy of the United States published in 2013. Since 2014 he has been invited for two successive years to participate in the World Internet Conference hosted in Wuzhen and he also attended the 5th Xiangshan Forum as a guest speaker. He has been widely regarded as one of the most active young scholars in the field of cyber security and strategy studies. On April 19th this year, Prof. Shen was invited as one of ten presenters to speak at the Cyber Security and Informatization Work Conference presided over by President Xi Jinping. 

Theme Interpretation:

The Pacific Ocean geographically separates Asia from Latin America but closely connects the two densely populated coasts in both political and economic regards. Same as developing countries like China, Latin American countries share much common demand of economic development. In a more pragmatic view of economic connections, Latin America and China have long been seen as ideal markets and partners of each other; meanwhile China and Latin America countries are all confronted with many similar problems and challenges on their development path. During the first decade of the 21st century, China and Latin American countries have respectively witnessed significant economic development and achieved remarkable growth rates. Thanks to their increasingly close economic and trade bonds, China and Latin American countries have worked much closer and moved forward greatly from bilateral collaborations alone to a combination of bilateral and multilateral collaborations in both economic and political aspects.

As Latin American countries are successively stuck in “middle-income trap” and China is facing with economic slowdown, deeper and sounder cooperation between two sides seems much more important to both China and Latin America. What experience can they draw from economic development of the other? How to narrow the geographical gap to realize broader connectivity and deepen all-round cooperation between two coasts of the Pacific? How will TPP affect trade and investment pictures of both China and Latin American countries? The Sino-Latin America Roundtable named “China and Latin America: the Development Partnership of Trans-Pacific” will bring government officials, scholars, entrepreneurs and think-tankers together to discuss the vision and pattern of China-Latin America cooperation and share their insights into how to improve overall cooperation and propel multilateral relations between China and Latin American countries.