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Prime Minister Narendra Modi has made India’s external relations a key focus of his policy agenda over the past year and a half. The recently released book, "The Oxford Handbook of Indian Foreign Policy" (Oxford Press, 2015), is well-timed. Edited by David M. Malone, C. Raja Mohan, and Srinath Raghavan, the "Handbook" includes essays which focus on the evolution of Indian foreign policy, its institutions and actors, India’s relations with its neighbors, and its partnerships with major world powers.

On November 13, the Foreign Policy program at Brookings hosted a panel discussion featuring some of the contributing authors to the "Handbook." The panelists discussed the current state of Indian foreign policy, its past, and its future, as well as the tools available to India’s foreign policy practitioners today and the constraints they might face.

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The past year has been one of intense engagement in U.S -India relations with several high-level visits exchanged and working-level dialogues held between the two countries. Most recently, President Barack Obama and Prime Minister Narendra Modi met at the Paris climate change summit and Indian Defence Minister Manohar Parrikar will visit the United States to discuss the bilateral defense relationship.

On December 11, The India Project at Brookings hosted a conversation with U.S. Ambassador to India Richard Verma to reflect on developments in U.S.-India relations in 2015. He also discussed the recent high-level engagements on defense policy and climate change, as well as the road ahead for the bilateral relationship. Tanvi Madan, director of the India Project and fellow in Foreign Policy at Brookings moderated the discussion. Bruce Jones, vice president and director of Foreign Policy at Brookings provided introductory remarks.

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In this paper, we outline the manner in which design can help promote the Indian economy. We look at the status of design in India, review the country’s development challenges, discuss the opportunities of a design economy, and make recommendations to enhance design in India.

Highlights of Main Findings

• India’s design capacity in the number of patents granted is approximately 3 percent of China and less than 2 percent of the U.S.A.
• India’s industrial design capacity is approximately 1 percent of China and 6 percent of the U.S.A.
• Historically, non-resident entities have been granted the most number of patents within India.
• Since 2012, more patents have been granted to Indian entities abroad than the number of patents granted by the Indian government to either resident or non-residents entities within India.
• While in India and the U.S.A. the most number of patents are annually granted to non-resident entities, in China the most number of patents have been granted to resident Chinese entities since 2008.
• Among the broad economic factors that affect design economy in India, the role of higher education, FDI, digital connectivity, infrastructure and trade have been identified as the most important.

Some specific policy recommendations to boost design economy in India are:

• Curricular reform for research and development in higher education
• Workforce development for R&D sector
• Establishing design labs and special economic zones to focus on R&D
• Developing and enforcing domestic legislation for intellectual property protection<.li>
• Promoting greater collaboration between business, government, and academia

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• Download the paper

A number of policymakers and analysts in the United States have called for countries like China and India to “do more” in the Middle East. Arguably, both Beijing and Delhi are doing more—though perhaps not in the way these advocates of greater Asian engagement in the Middle East might have wanted. President Xi Jinping recently traveled to the region and India’s Prime Minister Modi will return there over the weekend. After quick trips to Brussels for the India-EU Summit and a bilateral, as well as to Washington for the Nuclear Security Summit, Indian Prime Minister Narendra Modi will head to Riyadh tomorrow. The trip reflects not just the importance of Saudi Arabia for India but also the Middle East (or what India calls West Asia) and the opportunity this particular moment offers to Indian policymakers.

The Middle East has been crucial for India for decades. It’s been a source of energy, jobs, remittances, and military equipment, and holds religious significance for tens of millions of Indians. It’s also been a source of concern, with fears about the negative impact of regional instability on Indian interests. But today, as Modi visits, there’s also opportunity for Indian policymakers in the fact that, for a number of reasons, India is important to Saudi Arabia and a number of Middle Eastern countries in a way and to an extent that was never true before. 

It’s a two-way street

As it has globally, India has a diversified set of partnerships in the Middle East, maintaining and balancing its relationships with the Gulf Cooperation Council countries, Iran, and Israel. The region remains India’s main source of imported oil and natural gas (58 percent of its oil imports and 88 percent of its liquefied natural gas imports in 2014-15 came from the Middle East). In addition, as of January 2015, there were 7.3 million non-resident Indians in the region (64 percent of the total). These non-resident Indians remitted over $36 billion in 2015 (52 percent of the total remittances to India). Add to that India’s Sunni and Shiite populations (among the largest in the world), counter-terrorism cooperation with some countries, India’s defense relationship with Israel, the desire to connect with Afghanistan and Central Asia through Iran, and the potential market and source of capital it represents for Indian companies, and it becomes clear why this region is important for India. 

But, with many Middle Eastern countries pivoting to Asia or at least giving it a fresh look, India arguably has more leverage than it has ever had in the past. There have been a number of reasons why these countries have been looking east recently: 

• traditional strategic partnerships in flux and questions about the U.S. role in the region; 
• the economic slowdown in Europe and the U.S. following the 2008 financial crisis; 
• changing global energy consumption patterns; 
• growing concerns about terrorism in the region; 
• And, in Israel’s case, the boycott, divestment, and sanctions movement. 

In this context, India has some advantages. Its economy is doing relatively well compared to that of other countries and offers a market for goods and services, as well as potentially an investment destination. India, for example, has become Israeli defense companies’ largest foreign customer. 

Crucially for the oil and natural gas-producing states in the region, India also continues to guzzle significant—and growing—quantities of both. But, today, Delhi has buyer’s power. Why? Because oil prices are relatively low and there’s a lot of gas on the market, traditional buyers are looking elsewhere for fossil fuels or looking beyond them to cleaner energy sources. India, too, has more options and has been diversifying its sources of supply (compare India’s 74 percent dependence on the Middle East for oil in 2006-07 to the lower 58 percent that it gets from there now). 

India might still be dependent on the Middle East for energy, but now the Middle East also depends on India as a market.

Thus, India might still be dependent on the Middle East for energy, but now the Middle East also depends on India as a market. This has altered dynamics—and India’s increased leverage has been evident, for example, in the renegotiated natural gas supply deal between Qatar’s RasGas and India’s Petronet, which came with lower prices and waived penalties. Even countries like Iran, which now have more options for partners and have not hesitated to point that out to Delhi, still have an interest in maintaining their India option. Regional rivalries might have made Delhi’s balancing act in the region more complicated, but it also gives each country a reason to maintain its relationship with India. 

And the Modi government has been looking to take advantage of this situation. While its Act East policy received a lot more attention over the last couple of years—from policymakers and the press—this region hasn’t been missing from the agenda or travel itineraries. For example, Modi has traveled to the United Arab Emirates and met with Iranian President Hassan Rouhani on the sidelines of the last Shanghai Cooperation Organization conference, and the Indian president has traveled to Israel, Jordan, and the Palestinian territories. The Indian foreign minister has visited Bahrain, Israel, the Palestinian territories, Jordan, Oman, and the UAE and also participated the first ministerial meeting of the Arab-India Cooperation Forum in Manama earlier this year. The Modi government has also hosted the emir of Qatar, the crown prince of Abu Dhabi, the Bahraini, Iranian, Omani, Saudi, Syrian, and UAE foreign ministers, as well as the Israeli defense minister to India.

China’s increased activity in the region, as well as Pakistan’s engagement with Iran and the rush of European leaders to the latter, have led to calls for speedier action.

But there have been concerns that this engagement is not sufficient, particularly relative to that of some countries. For example, China’s increased activity in the region, as well as Pakistan’s engagement with Iran and the rush of European leaders to the latter, have led to calls for speedier action. The Indian foreign secretary’s recent comment that “we are no longer content to be passive recipients of outcomes” in this region also seemed to reflect the understanding that Delhi needs to be more proactive about deepening its relationships with the countries in the region, rather than waiting for them to take shape organically or just reacting to events as they occur. 

The Saudi connection

It is in this context that Modi travels to Riyadh. The relationship with Saudi Arabia is one of the key pillars of India’s Middle East policy. A major source of oil, jobs, and remittances, it is also a destination for over 400,000 Indians who go to the country for Hajj or Umra every year. In addition, in recent years, there has been more security cooperation, with Riyadh handing over individuals wanted in India and the two countries working together on countering money laundering and terrorism financing. 

The relationship has not been without problems from Delhi’s perspective. Just to list a few: 

• the Saudi-Pakistan relationship; 
• diaspora-related issues, including the treatment of Indian workers in-country and efforts towards Saudization that might limit employment opportunities for Indian expatriates;
• ideology-related concerns, particularly funding from Saudi Arabia for organizations in India, which might be increasing the influence of Wahhabism in the country; and
• regional dynamics, including Saudi Arabia’s rising tensions with Iran that has had consequences for Indian citizens, for example, in Yemen from where Delhi had to evacuate 4,640 Indians (as well as 960 foreigners).

More recently, incidents involving Saudi diplomats in India have also negatively affected (elite) public perceptions of the country, though the broader impact of this, if any, is unclear. Over the medium-to-long term, there are also concerns about potential instability within Saudi Arabia.

During Modi’s trip, however, the emphasis will be on the positives—not least in the hope that these might help alleviate some of the problems. The prime minister will be hosted by King Salman, who visited India as crown prince and defense minister just before Modi took office. He will also meet a slate of Saudi political and business leaders. The Indian wish-list will likely include diversification of economic ties, greater two-way investment, as well as more and better counter-terrorism cooperation. 

There will not be a large diaspora event—as Modi has done in Australia, Singapore, the UAE, United Kingdom, and the United States—but the prime minister will engage privately with members of the Indian community. He will also meet with Indian workers employed by an Indian company that is building part of the Riyadh metro. It is not hard to assess the reason for this particular engagement, given increased sensitivity in India (particularly in the media) about the treatment of citizens abroad, as well as the government’s interest in making a pitch for Indian companies to get greater market access. But, with Riyadh’s interest in creating jobs for Saudis, Modi will also try to highlight that Indian companies are contributing to the training and employment of locals (especially women) by visiting another Indian company’s all-female business process service center.

This will reflect the broader theme of highlighting to Riyadh and Saudis that it is not just India that benefits from the relationship—they do too. Some in India hope this has an additional effect: of giving Riyadh a reason not to let its relationship with Pakistan limit that with India, and perhaps occasionally making it willing to use some of its leverage with that country to India’s benefit. Despite recent irritants in the Saudi-Pakistan relationship, however, Delhi is realistic about the limits of weaning Riyadh away from Islamabad.

So does all this mean India will “do more” in the Middle East? For all the reasons mentioned above, the country has been involved in the region for a number of years—though, as the Indian foreign secretary has noted, this involvement was not in large part the product of active state policy. Indian interests in the region will likely increase in the future and, thus, so will its corporate and official engagement. But that engagement might not be what some American observers have in mind. As India’s capabilities grow, it might do more in terms of providing maritime security, intelligence sharing, evacuating expatriates when necessary, and contributing to U.N. peacekeeping operations. It could also potentially do more in terms of capacity building within these countries with the support of the host governments. There might also be scope for India to expand its West Asia dialogue with countries like the United States. But it will likely remain wary of picking sides or getting involved in non-U.N.-sanctioned military interventions in the region unless its interests are directly affected (the previous BJP-led coalition government did briefly consider—and then reject—joining the United States coalition in the Iraq war, for instance).

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In recent decades, India has taken on a growing global presence, one that has been seen as increasing even more since Prime Minister Narendra Modi took office nearly two years ago. In a new book, “India at the Global High Table: The Quest for Regional Primacy and Strategic Autonomy” (Brookings Institution Press, 2016), former U.S. ambassadors Teresita Schaffer and Howard Schaffer explore how India is managing its evolving international role, assessing the country’s strategic vision and foreign policy, and the negotiating behavior that links the two.

On April 20, The India Project at Brookings hosted a panel discussion to discuss the book and, particularly, four elements highlighted in it: India’s exceptionalism; its nonalignment and drive for “strategic autonomy;” its determination to maintain regional primacy; and, more recently, its surging economy.

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With the 2010 Census a little over a year away, the nation is at a critical juncture in its planning and preparation for the next decennial enumeration.

There is much at stake. Without a full count of the U.S. population, Congress and the administration will lack the accurate data necessary for reapportionment and redistricting, to make critical decisions about community services, and to distribute $300 billion in federal funds to state and local governments every year.

On March 18, the Brookings Institution and the National Association of Latino Elected and Appointed Officials (NALEO) hosted a discussion on urgent and emerging issues affecting the coming census. Brookings Vice President and Director of Governance Studies Darrell West set the context on new political realities and how this weighs on the 2010 Census. The panelists, moderated by NPR’s Ron Elving, considered the capacity of the Census Bureau to effectively carry out the enumeration, including an examination of the funds provided in the economic stimulus plan and the Obama administration's budget for the 2010 Census.

The forum also explored the issues facing the Census Bureau as it prepares to implement its communications and outreach plan–a key element in meeting the challenge of reaching Latinos and other hard-to-count populations–with an emphasis on the impact of the nation's changing demographics and political climate. Brookings Fellow Andrew Reamer provided introductory and closing remarks.

After the program, panelists took questions from the audience. 

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The special election in California and the beginning of the recall process in Wisconsin are only the start of what promises to a be a hyper-partisan election. On July 13, Thomas Mann answered your questions on the new forces at work in the political landscape, in a live web chat moderated by POLITICO Senior Editor David Mark.

The transcript of this chat follows.

David Mark: Welcome to the chat, let's get started.

12:30 Comment From Brooke: Were you surprised by the results of California's special election?

12:32 Tom Mann: No, Hahn's 10 point victory was expected. This was less than the natural Democratic strength of the district and reflected the generously self-funded opposition campaign.

12:32 Comment From Travis: What's the significance of that CA seat remaining Democrat?

12:34 Tom Mann: Not much in the way of national significance. If anything, it's a step back for the Democrats, who in the last, NY special in a Republican district, pulled off a genuine upset, running substantially ahead of Obama and the party registration. But the Democrats avoided an upset in California, which would have been discouraging and distracting to them.

12:34 Comment From Yan: Can you explain what's going on in Wisconsin?

12:39 Tom Mann: No!! It's been a crazy year in my home state. Yesterday's six elections were not for real. They had fake Democratic candidates challenging the slated Democrats solely to delay the actual recall elections by a month. All of the "real" Democrats won and three or four of them have a good chance to defeat the incumbent Republican state senators on August. Next week on July 19 three Democratic incumbents will be on the ballot -- two facing fake candidates but one facing a Republican challenger. The latter is important, as are the August 16 elections featuring the other two Democratic incumbents. Bottom line-- Democrats need a net gain of three seats to take control of the State Senate and slow Governor Walker's agenda. Turnout was relatively high yesterday and control of the State Senate is genuinely up for grabs.

12:39 David Mark: Realizing that the lines aren't final, what's your sense about how effective the independent California redistricting commission has been in drawing districts that are potentially more competitive?

12:42 Tom Mann: It appears they have been successful in increasing the number of competitive districts. At the same time, they have boosted Democratic prospects for a seat gain and disappointed Hispanics who feel that their population growth in the state has not been reflected in the Commission's maps. I suspect some significant revision in the plans that are finally released by the Commission and if necessary, an appeal to the courts.

12:42 Comment From Henry: What do you expect from the next election cycle?

12:47 Tom Mann: I believe the presidency and control of both House and Senate are up for grabs. It will be a very high stakes election with huge warchests. (Obama and the DNC together raised $86 million in the second quarter, which dwarfs what the Republican candidates combined have raised.) But both parties will be well-funded in the presidential and congressional races. At this point, I'd say Obama probably has the best prospect of winning; same is true of Republicans taking the Senate and holding the House. But it is early; the economic climate remains volatile; and events could overwhelm the present situation.

12:47 Comment From Danny (MD): What kind of a role do you see Super PACs playing in the next round of elections?

12:50 Tom Mann: The SuperPacs and their affiliated 501c organizations will be major players in the 2012 elections. Disclosure of donors will continue to diminish and large corporate and individual contributions will support extensive independent spending campaigns. Democrats have decided to follow the Republicans rather than fight them on campaign finance reform.

12:50 Comment From Danny (MD):What do you think about Stephen Colbert's Super PAC?

12:52 Tom Mann: Colbert is being Colbert. With his trusted legal advisor Trevor Potter, he is creating the PAC and testing the rules to educate the public about the inadequacy of campaign finance law and regulation. Political satire may be one of the more effective means of pushing political reform.

12:52 Comment From Bill in Va.: Beyond the immediate results of elections in California and Wisconsin, there are new laws in a lot of swing states that will seem to make it harder for certain people to cast their vote. Will these laws stand, or be challenged, and can they have an impact in the 2012 outcome?

12:56 Tom Mann: Election law in the States has sadly become yet another tool of partisan war. New voter ID laws have been passed in states controlled by Republicans but not in the others. I expect Democrats will gear up at the grassroots level to try to contest any efforts to deny access to the ballot of any of their legitimate voters. It all makes one yearn for the Australian compulsory voting system. Giving parties the incentive to depress turnout is downright depressing.

12:57 Comment From Ron: Just to step back from the specifics for a moment, how do you explain the very nasty tone of our politics these days...and what will it take to return some civility to the process?

1:00 Tom Mann: I'm not looking for civility any time soon. The ideological polarization of the parties and the partisan team play that now characterizes our politics and governance is deeply rooted in American society and reinforced by the new media. The populist Tea Party, with its certainty and righteous indignation, has been embraced by the Republicans in Washington and makes it almost impossible for politicians on opposite sides of the aisle to treat one another respectfully and work toward compromise.

1:00 David Mark: Thanks for the chat, everybody.

One unintended but very important consequence of the Iran nuclear deal has been to aggravate and intensify Saudi Arabia's concerns about Iran's regional goals and intentions. This fueling of Saudi fears has in turn fanned sectarian tensions in the region to unprecedented levels.

Of course stoking Saudi angst and perhaps even paranoia was not the intention of the deal’s negotiators. They sought to reduce tensions and prevent a nuclear arms race. A combination of circumstances outside their control exacerbated the problem of Saudi-Iranian rivalry that dates back before the Iranian revolution. But the results are likely to haunt the region for years to come.

An array of worries

Riyadh's concerns about Iran have never been primarily focused on the nuclear danger. The Saudis have long calculated the risk of Iranian use of nuclear weapons as low. They also believe the American nuclear umbrella protects them. The key Saudi concern is their belief that Iran seeks regional hegemony and uses terrorism and subversion to achieve it.

The deal deliberately does not deal with this issue. In Saudi eyes it actually makes the situation worse, because lifting sanctions removed Iran's isolation as a rogue state and gives it more income. Iran's ambition to be the region's hegemon is fueled not reduced by the deal.

The debate over the deal that ended a year ago coincided with two key developments in the Kingdom in early 2015. First was the succession of King Salman Abd al Aziz. His predecessor and half-brother Abdullah was a hardliner on Iran, but he was also risk-averse and cautious by nature. He had experimented with detente with Iran in the 1980s, even sending a Saudi Shiite as ambassador to Tehran. He wanted American soldiers to deal with Iran, not Saudis, a posture that greatly irritated Americans like former Secretary of Defense Bob Gates who likened it to using his soldiers as mercenaries. King Abdullah sought to avoid confrontation not embrace it.

The second coincidence was the takeover of the Yemeni capital Sanaa by the alliance of Zaydi Shiite Houthi rebels and former President Ali Abdullah Saleh early last year. The rebels opened direct air links to Tehran and proposed other concessions to Iran. They marched on the southern port of Aden, Sunni territory. Iran hailed their victories. The Saudis and other Gulf states saw an Iranian foothold emerging in the Achilles heel of the Arabian Peninsula.

The new king and his young Defense Minister Prince Muhammad bin Salman reacted angrily and firmly. An Arab coalition was created rapidly to intervene and fight the rebels. The result, Operation Decisive Storm, was distinctly unlike anything in recent Saudi history. Bold and aggressive in design, it stopped the rebels’ advance and prevented any Iranian intrusion into Yemen—but it also created a humanitarian disaster and a bloody stalemate. The United States and United Kingdom, eager to quiet Saudi objections to the nuclear deal, provided crucial support to the Saudi war. Pakistan, a longtime ally with a large Shiite minority, voted unanimously in parliament to stay out because it was worried about intensified sectarianism. 

A year ago Saudi intelligence renditioned Ahmed Mughassil after he debarked from a flight from Tehran to Beirut. The Saudi Shiite Mughassil was the mastermind of the Khobar attack twenty years ago in Saudi Arabia that killed nineteen American airmen. He was also involved in the assassination of several Saudi diplomats in the 1980s. He is the epitome of Iranian support and direction of terror. No doubt his interrogation has underscored Saudi concern about Iran's clandestine actions in the Gulf.

In January this year, the Saudis executed a prominent Shite dissident for allegedly supporting terrorism. An Iranian mob attacked the Saudi embassy—probably encouraged by regime hardliners—and then the Saudis broke diplomatic relations. Since then, Riyadh has encouraged its allies to follow suit. Iranian pilgrims will not attend this year's Hajj.

Saudi concern about Iranian conspiracies is reaching new heights. At least one prominent Saudi commentator has argued the terrorist attack on the Prophet’s Mosque in Medina on July 4th was a false flag operation controlled by Iranian intelligence to discredit the king's standing as the Custodian of the Two Holy Mosques. His column is getting wide attention.

Former intelligence chief and Ambassador to the United States Prince Turki al Faysal last weekend attended a large demonstration in France sponsored by the Mujahideen e Khalq group and called for the regime to be overthrown. Turki's backing for the MeK and his open call for regime change escalates the rivalry even further.

Entrenched position?

The combination of a new leadership in Riyadh that is more prepared to take firm action and the crisis in Yemen have added to Saudi disagreement over the Iran deal. As the Pakistanis feared, it has polarized an already deeply divided Muslim world. The Islamic State and al-Qaida benefit from the Muslim Cold War and the escalating sectarian violence.

Washington has tried hard to reassure the Saudis that they are not alone in their legitimate concerns about Iran's terrorist activities and destabilizing subversion. President Obama has wisely sought to build confidence with the king and his young son. The Iran deal is a good one, and I've supported it from its inception.

But it has had consequences that are dangerous and alarming. In the end, Riyadh and Tehran are the only players who can deescalate the situation. The Saudis show no sign of interest in that road. 

Few issues are closer to President Obama’s vision of the global future than his convictions about reducing the role of nuclear weapons in U.S. national security strategy. Less than three months after entering office, in a major speech in Prague, he put forward an ambitious nuclear agenda, declaring that the United States (as the only state ever to employ nuclear weapons in warfare) had a “moral responsibility…to seek the peace and security of a world without nuclear weapons.”

Seven years later, despite the administration’s having advanced other goals in non-proliferation policy, the larger vision of a nuclear-free world remains very much unfulfilled. But President Obama apparently hasn’t given up. In late May, he became the first American president to visit Hiroshima, where the United States first employed a nuclear weapon in warfare. In his speech, the president declared that “nations like my own that hold nuclear stockpiles…must have the courage to escape the logic of fear and pursue a world without them.” Moreover, as President Obama approaches his final six months in office, senior officials are purportedly deliberating additional policy changes that they believe could be undertaken without congressional approval. As Deputy National Security Adviser Ben Rhodes said in a June 6 speech at the Arms Control Association, the president remains intent on advancing his “Prague agenda” before leaving office.

According to recent press reports, the policy options under consideration include U.S. enunciation of a nuclear “no first use” doctrine. Such a step would represent a profound shift in U.S. policy. Non-nuclear states living in the shadow of nuclear-armed adversaries have long relied on U.S. security guarantees, specifically the declared commitment to employ nuclear weapons should our allies be subject to aggression with conventional forces. They have based their own national security strategies on that pledge, including their willingness to forego indigenous development of nuclear weapons.

Northeast Asia presents a clear contradiction between President Obama’s non-nuclear aspirations and existing circumstances.

These issues bear directly on the credibility of U.S. guarantees to allies in Europe and Asia, with particular relevance in Northeast Asia. Since the end of the Cold War, the content of the U.S. extended nuclear deterrence pledge has already narrowed. Washington has long deemed any use of nuclear weapons a matter of absolute last resort. Since the early 1990s, Washington has also enunciated an unambiguous distinction between employment of conventional and nuclear weapons, including the unilateral withdrawal of all tactical nuclear weapons deployed on the Korean peninsula. 

The Obama administration itself has also moved closer to limiting nuclear weapons use exclusively to deter another state’s first use of such a weapon against the United States, its allies, and partners—in fact, the 2010 Nuclear Posture Review declared that this was a “fundamental role” of the American nuclear arsenal. At that time, it also pledged to “work to establish conditions” under which it was safe to adopt universally a policy where the “sole purpose” of U.S. nuclear weapons was to deter a nuclear attack by an adversary. The implication of such a “sole purpose” policy would be that North Korea need not fear American nuclear retaliation if it mounted only a conventional attack against South Korea. 

Whether it is “no first use” or “sole purpose use,” Northeast Asia presents a clear contradiction between President Obama’s non-nuclear aspirations and existing circumstances. The Republic of Korea and Japan (the only state ever subject to nuclear attack) confront the reality of a nuclear-armed North Korea. Pyongyang continues to enhance its weapons inventory and the means to deliver them. It also regularly threatens Seoul and Tokyo with missile attack, potentially armed with nuclear weapons. 

[A]ny indications that the United States might be wavering from its nuclear guarantees would trigger worst-case fears that the United States, above all, would not want to stimulate.

Both U.S. allies are therefore strongly opposed to a U.S. "no first use" pledge, and would likely have deep concerns about a sole purpose commitment. Though the United States possesses a wide array of non-nuclear strike options in the event of a North Korean attack directed against South Korea or Japan, any indications that the United States might be wavering from its nuclear guarantees would trigger worst-case fears that the United States, above all, would not want to stimulate. At the same time, choosing not to issue a "no first use" pledge should not in any way suggest that the United States favors nuclear use, which would play directly into North Korean propaganda strategy. Rather, the United States should not preemptively remove the nuclear option, especially when North Korea is in overt defiance of its non-proliferation obligations and is single-mindedly intent on a building a nuclear weapons capability.

The Obama administration must therefore balance its clear desire to advance a non-nuclear legacy with Northeast Asia’s inescapable realities. Enunciating a "no first use" doctrine or a sole purpose commitment in the administration’s waning months in office is a bridge too far. Though the United States can and should engage South Korea and Japan in much deeper consultations about extended deterrence, it cannot put at risk the security of allies directly threatened by attack from a nuclear-armed adversary. 

The next U.S. president will have to square this circle. In the meantime, the Obama administration should do all that it can to plan for the road ahead, even if it means policy pledges that might not be as visionary as it would prefer. 

Today in Seattle, Seattle Mayor Ed Murray will announce the Central Puget Sound region is joining a pilot program that will create and implement plans to attract foreign direct investment as part of the Global Cities Initiative, a joint project of the Brookings Institution and JPMorgan Chase.

Mayor Murray will make this announcement at a Global Cities Initiative forum, where Seattle area business and civic leaders will also discuss strengthening the global identity of the Puget Sound region and expanding opportunities in overseas markets. Following the announcement, Mayor Marilyn Strickland of Tacoma and Mayor Ray Stephanson of Everett will make additional remarks about the importance of this new effort.

The Seattle area is joined in the pilot by Columbus, Ohio; Minneapolis-Saint Paul; Portland, Ore.; San Antonio; and San Diego. This group will meet in Seattle today for their first working session, where they will discuss the process for developing their foreign direct investment plans.

Foreign direct investment has long supported regional economies, not only by infusing capital, but also by investing in workers, strengthening global connections and sharing best business practices. The Global Cities Initiative’s foreign direct investment planning process will help metro areas promote their areas’ unique appeal, establish strategic and mutually beneficial relationships and attract this important, underutilized source of investment.

With the help of the Global Cities Initiative, the selected metro areas will strategically pursue foreign direct investment such as new expansions, mergers and acquisitions, and other types of foreign investment. Forthcoming Brookings research will offer metropolitan leaders more detailed data on foreign direct investment’s influence on local economies.

Read the Forum Press Release Here »

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Martha Ross spoke to the Advisory Board of the Community Foundation for Prince George’s County, describing research on the suburbanization of poverty both nationally and in the Washington region.

Despite perceptions that economic distress is primarily a central city phenomenon, suburbs are home to increasing numbers of low-income families. She highlighted the need to strengthen the social service infrastructure in suburban areas.

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Boris Nemtsov’s murder may be a turning point in current Russian history. Unfortunately, it is almost surely not a turn to the better, but one to something bad or to something even worse. This point needs to be made clear from the beginning. It is an illusion to think that this event will lead to anything positive, such as a backlash in the population at large against nationalistic rhetoric or even some kind of liberal revolution, or “Russian Spring.” 

Liberalism in Russia was left near-dead once Putin prevailed over the wave of protests in late 2011 and early 2012. The geopolitical conflict with the West over Ukraine—both Russian President Vladimir Putin’s actions and the Western response of imposing sanctions—virtually guaranteed that liberal, democratic, pro-Western forces would remain irrelevant for now and, likely, for some years to come. Nemtsov’s murder only exacerbates this trend.

There are two probable scenarios going forward. Both begin with the realization that the most important conclusion from the Nemtsov murder is that it signals a lack of control by Putin over very dangerous elements in Russian society. Putin will respond by further tightening Kremlin control over Russian politics and society. The question is how forcefully and how successfully. In one scenario, Putin succeeds in stabilizing the political situation. This will result in an even more authoritarian, but somewhat stable, Russia. In the other, Putin fails to establish control and the result is a breakdown of all control and reversion to an even more extreme nationalism than now.

We do not know who murdered Boris Nemtsov. The most likely version is that it was rogue nationalist, anti-Maidan, forces. If so, this means that Putin has serious problems with his own security forces. They are either inexcusably negligent (because they allowed the murder to happen) or criminally complicit (if anyone inside the security forces in any way facilitated the crime).

Most everyone outside the Kremlin is obsessed with, as they say, the eternal Russian question of Kto vinovat—”Who is to blame?” Putin’s priorities are different. His first question is not, “Who did this?” but “Who let this happen?” So his primary concern is to solve the problem of the competence of and/or control over his security services.

Second, his main target now has to be extremist-nationalists inside Russia. They are the biggest threat to his regime, far greater than the demonstrators on Bolotnaya Square in 2011-2012. Despite the fact that it is the Kremlin itself that has been the biggest promoter of nationalism, it is aware that extreme nationalism is a danger. Last October, at the Valdai Club meeting in Sochi, Putin’s number two man, Sergey Ivanov, was asked about the threat of nationalist-extremists in Russia. He admitted there was a problem. “They do exist. They are a tiny minority. But they represent a clear risk. We need to think about that. And, especially, we need to do something about it. ... We have to make it clear to extremists that the law will be strictly enforced, and that committing illegal acts is a road that leads to nowhere.” And when we do act against those who violate the law, he said, “we will not be constrained by concerns about human rights.”

Dark clouds have gathered over Malaysia as a crisis deepens. Two weeks ago, the country witnessed a massive street protest - dubbed Bersih (lit: “clean”) - organized by a network of civil society groups agitating for electoral reform. This was in fact the fourth iteration of the Bersih protests (Bersih also mobilized in 2007, 2011, and 2012), and managed to draw tens of thousands of participants (the exact number varies depending on who you ask). On this occasion, the protest was a culmination of widespread popular indignation at a scandal involving 1MDB, a government-owned strategic investment firm that accrued losses amounting to approximately USD10 billion over a short period of time, and the controversial "donation" of USD700 million funneled to the ruling party through the personal bank accounts of Prime Minister Najib Tun Razak.

All this is taking place against an inauspicious backdrop of sluggish economic growth, the depreciation of the Malaysian currency, and several exposes on the extravagant lifestyle of Najib’s wife, Rosmah Mansor.

How consequential was Bersih?

When Bersih first mobilized in 2007, it managed to harness a flood of dissatisfaction in opposition to the government of Abdullah Badawi, and contributed to major opposition political gains at the general election of 2008. The second and third protests have also been credited as contributing factors to further opposition inroads at the 2013 polls. Assessments of the latest iteration of Bersih however, have been more equivocal. On the one hand, Bersih 4.0 indicated that the movement can still draw huge crowds and give voice to popular discontent, which continues to grow. On the other hand, analysts have called attention in particular to the comparatively weak turnout of ethnic Malays at Bersih 4.0 compared to the previous protests. This is a crucial consideration that merits elaboration if Bersih is to be assessed as an instrument for change.

Given how Malaysian politics continues to set great store by ethnic identity, the support of the Malay majority demographic is integral for any social and political change to take place. By virtue of affirmative action, ethnic Malays are privileged recipients of scholarships and public sector jobs. Therein lies the problem for any social movement agitating for change. Years of conditioning through policy and propaganda have created a heavy reliance on the state, which in essence means UMNO (United Malays National Organisation), the dominant party in the ruling coalition which Prime Minister Najib helms as party president. While it is difficult to say conclusively that this explains the tepid reaction of ethnic Malays during the Bersih protests, it is not far-fetched to hypothesize that at least a contributing factor was the fear among recipients of scholarships and public sector employees that their benefits might be jeopardized (For example, I know that scholarship holders were sent letters "dissuading" them from participating in "political activities.").

Ultimately though, the most telling feature of the event may not have been the dearth of ethnic Malays but the presence of one particular Malay leader – Mahathir Mohamad, Malaysia’s nonagenarian former prime minister and unlikely Bersih participant.

Hitherto a supporter of Prime Minister Najib, Mahathir has grown increasingly unhappy with the prime minister’s policies. According to Mahathir himself, attempts had been made to share his reservations with Najib in private, but they were rebuffed. Goes by this account, it is not surprising that Najib’s alleged snub prompted private reservations to crescendo into harsh public criticism. By the middle of 2014, Mahathir had assumed the role of Malaysia’s conscience to become one of the loudest critics of Najib. Asked to explain his criticisms, Mahathir reportedly responded: “I have no choice but to withdraw my support. This (referring to the act of privately reaching out to Najib) has not been effective so I have to criticize. Many policies, approaches, and actions taken by the government under Najib have destroyed interracial ties, the economy, and the country’s finances.”[1]

Today, it is Mahathir, Malaysia’s longest serving prime minister who was in office from 1981 to 2003, who is leading the charge to discredit Najib and have him removed from office for malfeasance. What explains Mahathir’s singleness of purpose to have Najib removed from power? Part of the answer may lie in Mahathir’s own record of political quarrels.

What lies beneath Mahathir’s attacks?

Mahathir is no stranger to bitter and bloody personal political battles. His interventions in Malaysian politics throughout his career in office are legion (and many Malaysians might also say, legendary). Longtime Malaysia watchers and critics have assailed Mahathir for his autocratic streak evident, for example, in how he emaciated the judiciary by contriving to have supreme court judges (and on one occasion, the Lord President himself) removed from office, incapacitated the institution of the monarchy by pushing legislation that further curtailed the already-limited powers of the constitutional monarch, and suppressed opposition parties and civil society by using internal security legislation against them.

Mahathir was no less ruthless within UMNO, where he brooked no opposition. The history of political contests in UMNO has his fingerprints all over it. In 1969, it was his provocations as a contumacious backbencher that precipitated the resignation of the respected founding prime minister of Malaysia, Tunku Abdul Rahman. In 1987, Mahathir weathered a challenge to his leadership of UMNO mounted by political rivals (the then deputy prime minister, Musa Hitam, and minister for international trade, Razaleigh Hamzah), turned the tables on them, and had them exiled into political wilderness. In 1998, Mahathir successfully fended off the ambitious Anwar Ibrahim by sacking him, and later having him arrested, charged, and eventually convicted for corruption and sodomy. Even when not directly involved, he was never content to be a bystander, choosing instead to either instigate or leverage power plays. In 1978, he played no small part in nudging Sulaiman Palestin to challenge then incumbent Hussein Onn for party presidency (a move that many Malaysian analysts agree signaled the beginning of the end for Hussein’s political career even though he managed to fend off Sulaiman’s challenge). In 1993, Mahathir did little to prop his then deputy, Ghafar Baba, who was crumbling under the challenge of a charismatic Malay nationalist and rising star by the name of Anwar Ibrahim. It was Mahathir's machinations in 2008 that forced Abdullah Badawi, his handpicked successor no less, to resign a year later.

All said, Mahathir had accomplished the signal feat of being involved in some way or other in almost every political crisis that has beset UMNO since 1969. Several observations can be drawn from this record to explain Mahathir’s present behavior. First, Mahathir has long been possessed of a drive to be at the center of power in UMNO and Malaysian politics. Second, he is also in possession of an acute survival instinct that has enabled the über-politician to see off a string of challengers and ensured his political survival at the helm for 22 years. Finally, one can also plausibly surmise that at the core of his recent interventions is the desire – not unlike others who have held any high office for 22 years - to protect his legacy. Therein lie the rub, for it is not difficult to imagine that Mahathir might have deemed his legacy challenged by Anwar in 1998, ignored by Abdullah Badawi in 2008, and now, disregarded by Najib.

Will Najib survive?

A crucial factor that plays in this unfolding drama between two of Malaysia’s political heaveyweights – and which cannot be over-emphasized – is the fact that power in Malaysia ultimately lies in UMNO itself, sclerotic though the party may have become. It is on this score that Najib remains formidable, even for the likes of Mahathir.

Unlike Anwar, who was only a deputy president when he launched his abortive attempt to challenge Mahathir in 1998 (for which he paid a heavy political and personal price), Najib enjoys the advantage of incumbency. Unlike Abdullah Badawi, who chose to remain quiescent when stridently attacked latterly by Mahathir, Najib has used the powers of incumbency adroitly to head off any potential challenge and tighten his grip on the party. He has done so by out-maneuvering pretenders (he removed his deputy prime minister), sidelining opponents, and co-opting potential dissenters into his Cabinet. These divide-and-rule measures closely approximate what Mahathir himself had used to devastating effect when he was in power. For good measure, Najib has lifted a few additional moves from Mahathir’s own playbook: he has neutralized legal institutions, hunted down whistle blowers, brought security agencies to heel, and shut down newspapers and periodicals that have criticized him. Najib’s consolidation of power has been aided by the fact that there is at present no alternative leader within UMNO around whom a sufficiently extensive patronage network has been created. It bears repeating that the arid reality of Malaysian politics is that power still lies within UMNO, so he who controls the party controls Malaysia. On that score, even if Najib’s credibility is eroding in the eyes of the Malaysian populace, within UMNO his position does not appear to have weakened, nor does he seem to be buckling under pressure.

There are no signs that the enmity between the current and former prime ministers of Malaysia will abate anytime soon. Given the stakes, the depths to which ill-will between both parties now run, and how far the boundaries have already been pushed, the rancor is likely to intensify. Mahathir still commands a following especially online where his studied blog musings on www.chedet.cc, a key vehicle for his unrelenting assaults on Najib’s credibility, remain popular grist for the ever-churning Malaysian rumor mill. In response, Najib has defiantly circled the wagons and tightened his grip on levers of power. While Mahathir is unlikely to relent, the reality is that the avenues available to him to ramp up pressure on Najib are disappearing fast. A recent UMNO Supreme Council meeting that was expected to witness a further culling of Najib’s detractors and Mahathir’s sympathizers turned out to be a non-event and an endorsement of the status quo. In the final analysis then, it is difficult to see Mahathir ultimately prevailing over Najib, let alone bend the sitting prime minister and party president to his will.

Young people in Northeast Asia have become famous around the world for their creativity and consumer flair: K-pop and the Korean Wave, fancy smart phones and IT entrepreneurism, high-end fashion, obsession with plastic surgery, and web-based social networks. Political activism and participation are not the first two words that pop into one’s head when we think of young East Asians. 

But in recent years, youth in Hong Kong, Japan, South Korea, and Taiwan are leading political movements and asserting their interests onto the national political agenda. Although the specific issues of political concern differ, they are motivated by a common fear of economic decline for their generation, a rejection of political marginalization, and a moral awakening that their governments and the older generations are endangering their future, including democracy. 

Since 2014, young Japanese took up the issue of national security policy and the democratic process and became new defenders of the peace Constitution. They passionately opposed the Legislation for Peace and Security (aka Collective Self-Defense law), which Prime Minister Shinzo Abe’s government put before the Diet to permit Japan’s Self-Defense Forces to engage in military action outside Japan and in the aid of allies. The leading organization, Students Emergency Action for Liberal Democracy (SEALDs), used peaceful means to stage multi-faceted challenges—via street protests, songs, livestream broadcasts, humor, as well as slogans deliberately marked in the English language—to what they viewed as fundamentally unconstitutional and a violation of the democratic process. Most of Japan’s constitutional scholars agreed with them.

All protesters, young and old, condemned the CSD measures as a way for Japan to do what Article 9 of the Constitution forbids: engage in offensive military action without amending the Constitution. Many called it the “war law.” Not only college students but those in middle school and high school participated in protests and meetings while still in their school uniforms. Teens Stand Up To Oppose War Law (T-ns SOWL) is their main organization. In late August 2015, at the height of the protests across Japan, over 120,000 people held their rally in front of the Diet building while tens of thousands more gathered in other cities. In the mass gatherings, the SEALDs slogan, “What does democracy look like? This is what democracy looks like,” reverberated. Young people were drawing attention to themselves as practitioners and protectors of Japanese democracy, as opposed to the older Abe establishment in the government and the Diet. Although their protests did not stop the passing and enactment of the bill (March 2016), Japanese youth continue to oppose the government’s penchant to increase Japan’s military capabilities and posture. Their weakness, however, lies in having no institutional structure of leadership and influence. This reflects SEALDs’ belief in horizontal political participation and organizing, in itself a political stance in a society that is hierarchical and hyper-organized.

In Korea, President Park Geun-hye’s conservative Saenuri Party was projected to be the overwhelming winner of South Korea’s legislative election on April 13, 2016 as no pundits or surveys predicted the opposition Minjoo Party to emerge as the victor. But in a stunning twist, the Minjoo Party gained a single seat advantage over the ruling Saenuri Party and secured a liberal majority with an additional 44 seats from two minor opposition parties. This surprise outcome was not credited to the success of the opposition, but instead largely attributed to the increased turnout of voters in their twenties and thirties who are frustrated by socioeconomic conditions and the political status quo. Leading up to the election, university student bodies and various youth groups mobilized young voters to go the polls, which resulted in a 13 percent increase among 20-year-olds since the last election. Once labeled as a politically detached generation, South Korea’s youth sent a loud and powerful message that they have had enough.

On May 20, 2016, Taiwan inaugurated Tsai Ing-wen, its first woman president, and completed its third democratic transfer of power. In February, following the January 2016 elections, Taiwan’s opposition Democratic Progressive Party (DPP) became the majority party in the Legislative Yuan for the first time. While the Kuomintang, the conservative ruling party, was predicted to lose the executive, the losses in the Legislative Yuan validated the growing progressive movement that had been initiated by students in March 2014.

Meanwhile, in Hong Kong, student activist groups have mobilized beyond mass demonstrations, such as the Umbrella Movement of fall 2014. Angered by the setback to political reform and expanded citizen participation in choosing their leaders, the young students have organized into formal political parties, looking ahead to the September 2016 Legislative Council (LegCo) elections. Similar to the student groups in South Korea, the younger generation in Taiwan and Hong Kong has concluded that their voices are not only important, but necessary in determining their political and economic futures.

Why now? Why have younger activist movements emerged or gained ground recently?

Like their counterparts in South Korea, Taiwan, and Hong Kong, Japanese youth were affected by a series of political, legal, and economic events that decreased their trust in their respective governments and increased their sense of vulnerability and insecurity. The most prominent catalyst was the Fukushima nuclear plant disaster of March 2011. It generated a rash of citizen activism, including investigation and documentation teams, increased opposition to nuclear power plants, and lawsuits against the Japanese government and the Tokyo Electric Power Company. Because so many of the victims were children and youth, the political action was particularly poignant. Parents of the nearly 400,000 children residing in the Fukushima area at the time of the power plant melt-downs began organizing in April 2011.

One group sued the Koriyama City government, demanding that it provide financially and logistically for the affected children to reside and attend school in safe areas. Two years later, their lawsuit failed as the Sendai High Court ruled against the plaintiffs, stating that radiation levels are safe enough, even for children, and that families should pursue evacuation if they wish, at their own cost. The 400,000 or so children (up to 18 years of age at the time of the accident) will be required to get tested for radiation-related health effects for the rest of their lives because children are known to be more vulnerable to radiation than adults. As of April 2016, citizens were disappointed again as their injunction against the reopening of two reactors at a nuclear power plant in Kagoshima Prefecture was overturned by the Fukuoka High Court. Young and old alike have joined together to oppose nuclear energy in Japan.

Young people also resent the expansion of non-regular employment and the Worker Dispatch Law, which decreased the labor rights and protections of dispatched or temporary workers since its inception in 1985. The global economic crisis of 2007-09 highlighted young people’s economic vulnerability as jobs became harder to obtain and those in temporary arrangements, with no seniority in age and experience, were easily laid off. The 2012 revision of the Dispatch Law prohibited the employment of a temp for more than three years in certain job categories was another blow to young people, who worry that they will face “lifelong dispatch.” SEALDs also warns against the economic hardship on many Japanese, including young adults, when the proposed consumption tax of 10 percent kicks in come April 2017: “If the consumption tax is increased without rebuilding the system of redistribution centered on social security, the wealth gap will continue to widen.”

For South Korea, signs of frustration began to brew in 2013 when a hand-written poster at the elite Korea University circulated around the internet. Written in the form of a letter, the poster conveyed frustration against perceived social injustices (e.g. 4,213 workers were dismissed for protesting the privatization of the state-owned Korea Railroad Co.), which reverberated beyond the student population. Most striking was the poignant criticism of the lack of youth representation in government and young people’s sense of repeated neglect by the older political establishment. The letter was a sobering reminder that today’s youth feel they have little say in shaping their own futures.

This political wake-up call was amplified following the government’s inadequate handling of the Sewol ferry tragedy in spring 2014 and the Middle East Respiratory Syndrome outbreak (MERS) in spring 2015. When reports revealed that state collusion with the shipping industry led to lax maritime regulations and that the government had failed to distribute time-sensitive information about MERS, an enraged public demanded accountability for the tragic loss of innocent lives. The sinking of Sewol killed 304 passengers out of 476 on board, most of whom were high school students. This wave of public distrust and resentment triggered a larger outcry against the lack of transparency and corruption in both government and businesses.

Mounting frustrations from the younger generation culminated in the creation of “Hell Joseon,” a satirical phrase and an online community named after the country’s “hellish” economic conditions and the class-based society of Joseon, Korea’s former kingdom before Japanese colonization. The phrase is used to describe a grim society where social mobility is impossible, only the privileged are immune from the plight of unemployment, and immigration is the only way out. The popularity and wide circulation of this term led to a public debate about the hardships of Korean society, prompting even politicians to use the term during the 2015 National Assembly inspection of government offices. Naturally, both the term and its implications made its way into the campaign trails, as evidenced in the prioritization of domestic issues in candidates’ platforms for the 2016 general election.

In Taiwan, the younger generation burst onto the political scene in March 2014, when a group of activists stormed and occupied the Legislative Yuan for twenty-three days. The occupation, known as the “Sunflower Movement,” was the culmination of the growing frustration with Taiwan’s economic climate coupled with the younger generation’s political upbringing in a democracy. The student occupiers focused on the Cross-Strait Service Trade Agreement (CSSTA), which, to them, embodied both economic and security perils created by the then-president Ma Ying-jeou’s practice of political thaw and tighter economic ties with mainland China. The protesters viewed the benefits of the CSSTA as biased favoring big corporations but hurting small-to-medium enterprises. Additionally, these young occupiers felt that under the KMT, Taiwan’s worsening economy was becoming more dependent on the Mainland. They feared that Beijing was taking advantage of these agreements as a means to leverage its power over the island, which would make China’s ultimate goal of reunification all the easier.

Hong Kong’s political reform process, which was initiated prior to Britain’s handover of the territory back to China in 1997, has garnered more attention in recent years due to upcoming milestones. Since the reversion, China has taken gradual steps to ensure Hong Kong’s political system adheres to the Basic Law, which is the mini-constitution that protects “one country, two systems”, the guiding principle for China’s sovereignty over the territory, at least until 2047. As outlined by a 2007 PRC National People’s Congress Standing Committee (NPC-SC) decision, Hong Kong residents would be able to choose the chief executive by means of “universal suffrage” for the 2017 election.

However, China’s interpretation of “universal suffrage” differed from the definition pursued by the pan-democratic political camp in Hong Kong. When an August 2014 NPC-SC decision outlined that the Hong Kong public could only choose between two to three candidates, who would be selected through a screening committee biased towards Beijing, high school and university students felt particularly deceived. Several veteran pan-democratic activists had already formed the “Occupy Central” movement, which adhered to non-violent, consultative, civil disobedience norms. Without a representative government, demonstrations have become the go-to way for Hong Kong people to voice their opinions. So, following this tradition, young activists decided to move beyond the “Occupy Central” methods when they boycotted class in September 2014, and thus, launched the three-month mass demonstration known as “the Umbrella Movement.”

What is driving these movements? Economic factors or political values?

In all four cases, economic factors including youth unemployment, job insecurity, low wages, and social inequality are critical motivators driving the younger generation’s political actions. The youth unemployment rate in South Korea hit a record high of 12.5 percent in February, which is three times the overall unemployment rate, and about one-third of those who are employed hold temporary jobs. In Taiwan, between 2014 and 2015, youth unemployment averaged 12.9 percent, reaching a high of 14 percent in August 2014. Even for those with jobs in South Korea, real wages have not increased commensurate with the country’s economic growth. Over the past five years, the annual average increase in real wages was only 1.34 percent, barely half the average economic growth rate of 2.96 percent. The unemployment rates among Japanese youth are lower (8 percent in 2011 declining to 6.5 percent in 2014), but a large number of young Japanese with jobs consider themselves as temporary, contract or part-time workers. What’s startling is that the Japanese government “Survey of Employment of Young People” (ages 15-34) in 2014 found that a whopping 40.3 percent of the respondents stated that their “main source of income” comes from parents. In addition, a recent survey by the Japanese branch of the U.K.-based Big Issue Foundation, which assists the homeless, found “77 percent of the nation’s low-income unmarried youths live with their parents mainly for financial reasons.”^[1] Even if these young folks have not launched their version of “Hell Nippon,” they certainly would sympathize with their Korean counterparts’ fears of economic uncertainty and worries about social marginalization through extended infantilization.

Inequality also is manifested in access to affordable housing, with both Taiwan and Hong Kong experiencing exorbitant real estate markets. In Taipei, the ratio of median housing price to median annual household income hit 15.7 in 2014, thus coining the phrase that you’d have to neither eat nor drink for 15 years to afford housing. In Hong Kong, 180-square-foot “mosquito apartments” can cost $US 517,000. Housing prices have steadily increased in South Korea as well, where the average price of an apartment is roughly $10,000 per 35 square feet. 

But compounding these economic disappointments is young citizens’ disillusionment with their respective governments. Since 2013, when President Park Geun-hye took office, Freedom House has downgraded South Korea’s score from the highest at #1 for political rights to #2 in 2014 and 2015. Its overall freedom score slipped from 1.5 to 2.0. Specifically, the report emphasized the “increased intimidation of political opponents of President Park Geun-hye and crackdowns on public criticism of her performance following the Sewol ferry accident.” Additionally, President Park’s administration has been plagued with controversies from the start, with charges of election meddling in her favor by the National Intelligence Service, a divisive debate over state-sanctioned history textbooks, which her administration has spearheaded Additionally, her administration’s arbitrary use of the controversial National Security Law to restrict freedom of speech and freedom of association reminded many Koreans of the pre-democratic Korea under the control of her father, the late President Park Chung-hee.

Like their peers in South Korea, the younger generation in Taiwan has only known a democratic Taiwan, so unlike their parents’ generation who lived under an authoritarian regime, they now seek a higher standard of governance and fairness and accountability from political institutions. But, the democracy they know is a young democracy, one trying to overcome, but still prone to, corruption, unfair practices and deep partisan divides. So, when they see problems in their democratic institutions, such as opacity in passing the CSSTA bill, they regard themselves as protectors of Taiwan’s democracy, justified in opposing the government and articulating their criticism.

The young Japanese of SEALDs profess a similar purpose: “We believe it is absolutely essential for [sic] opposing the current government to establish a unity of opposition parties and its supporters who share liberal values such as constitutionalism, social security and peace diplomacy. This unity will create a new political culture which encourages citizen’s political participation and revitalizes representational democracy.”^[2]

Economic frustrations in Hong Kong have coalesced into a political pursuit toward a more representative and democratic political system. In particular, for the millennial generation, the year 2047 – when the one country, two systems agreement expires – is not a distant date in the future as it was for the creators of the Basic Law in the 1990s. Therefore, the young activists believe they should help set the parameters and pace of the political reforms they deem necessary to achieve a society they envision and that they, not their elders, will have to lead.

Implications for the future? Forerunner of divisive generational politics?

With the September 2016 legislative council (LegCo) and 2017 chief executive elections approaching, Hong Kong’s student groups have begun to organize beyond demonstrations into political parties. Joshua Wong, one of the student leaders during the Umbrella Movement, launched the Demosisto party, which plans to run several candidates in the LegCo elections, and calls for a referendum on one-country, two-systems and on self-determination after 2047. Other new parties led by young activists have taken even more extreme stances, such as the Hong Kong National Party, which calls for Hong Kong independence. The upcoming challenge for the new political parties, however, is that the pan-democratic camp is fractured, while the pro-Beijing establishment camp has remained more-or-less unified. As witnessed in the failed political reform bill in June 2015, which, as Richard Bush argues, could have provided a narrow path for a pan-democratic candidate, Beijing can ride out a political deadlock in Hong Kong. But, the younger generation in Hong Kong feels that they have little time to waste in implementing political reforms. The greatest challenge ahead of Hong Kong will be finding a way for the moderate and radical sides of the pan-democratic camp to compromise and unify.

The “Sunflower Movement” helped ignite the pan-green coalition in Taiwan, leading to demoralizing defeats for the Kuomintang (KMT) Party in both the local elections of November 2014 and presidential and legislative elections of January 2016. In addition to the DPP gaining a majority in the Legislative Yuan, the New Power Party, which emerged directly from the Sunflower Movement, won five legislative seats, making it the third largest party in Taiwan. During her inauguration speech on May 20, 2016, President Tsai Ing-wen focused on a wide range of domestic issues, and even spoke directly to young people, vowing to help change their current predicament through a new model of economic development “based on the core values of innovation, employment and equitable distribution.”

In reference to cross-Strait relations, Tsai did not say what Beijing wanted her to say, which means Taiwan can expect some economic and strategic blowback from the Mainland. In particular, if Beijing punishes Taiwan via economic tools, then that could derail Tsai’s plans to help pull young people out of their economic rut. So, while it’s tempting to say the Taiwanese youth movement succeeded in getting on the national agenda through the recent election, the Tsai administration has many hurdles to jump in order to fully achieve the movement’s objectives.

While Tsai has time to consider and clear the political hurdles, President Park is poised for a rough run in the final stage of her term as she faces a formidable progressive bloc in the new legislature. Political commentators are already discussing the prospects of a progressive-led Blue House in 2017 and what this would mean for ROK foreign policy, especially toward North Korea. But beyond the immediate policy implications, the generational divide that emerged so starkly in the recent election may portend significant changes for South Korean politics. What was noteworthy in this election was the role of the People’s Party, a new minor opposition that offered an alternative choice for young voters disillusioned by the traditional two parties. Led by an unassuming yet popular figure vowing to tackle the old establishment, the People’s Party managed to win a higher percentage (26.7 percent) of the popular vote than the Minjoo Party (25.5 percent) and contributed to a progressive majority despite concerns over vote-splitting. In fact, this third party only split regional loyalties, receiving a significant amount of the proportional votes from regions traditionally tied to the two major parties.

Northeast Asia is a region with the fastest-ageing population and the lowest birth rates in the world. It is possible that young people will increasingly find themselves at the bottom of an upside-down pyramid, holding up or held down by the size and weight of the older generations. The latter will form the majority of voters with the capacity to choose leaders and policies that support or undermine the interests of the younger generations. Youth today need to prepare for and practice greater political participation now if they are to lead their respective societies into the depths of the 21st century. Most likely, generational politics will become a sharper and more potent force in northeast Asia. 

In Pennsylvania, the next major presidential primary state, concerns about the economy loom large as global competition, economic restructuring, and an aging workforce threaten the state’s ability to prosper. Thanks to these assets, the six metro areas generate 80 percent of the state’s economic output even though they house 68 percent of its population. A true economic agenda for the state must speak to the core assets of Pennsylvania’s economy and where these assets are located: the state’s many small and large metropolitan areas. In short, this brief finds that:

• To help Pennsylvania prosper, federal leaders must leverage four key assets that matter today—innovation, human capital, infrastructure, and quality places. These assets help increase the productivity of firms and workers, boost the incomes of families and workers, and can help the state and nation grow in more fiscally and environmentally responsible ways.
• These four assets are highly concentrated in the state’s economic engines, its metropolitan areas. There are 16 metro areas in the Commonwealth, ranging from Philadelphia, the most populous, to Williamsport, the smallest. The top six metropolitan areas alone generate the bulk of the state’s innovation (80 percent of all patenting), contain the majority of the state’s educated workforce (77 percent of all adults with a bachelors degree), and serve as the state’s transport hubs.
• Despite these assets, Pennsylvania’s metro areas have yet to achieve their full economic potential. For instance, Philadelphia and Pittsburgh enjoy strengths in innovation, but they both struggle to convert their research investments into commercial products and real jobs. The Scranton metro area is emerging as a satellite of the New York City region, but it’s hampered by the absence of frequent and reliable transportation connections and inadequate broadband coverage.
• Federal leaders must advance an economic agenda that empowers states and metro areas to leverage their assets and help the nation prosper. To that end, they should establish a single federal entity that works with industry, states, and metro areas to ensure that innovation results in jobs and helps businesses small and large modernize. The federal government should strengthen access and success through the entire education pipeline. They should overhaul and create a 21st century transportation system. And they should use housing policy to support quality, mixed-income communities rather than perpetuating distressed neighborhoods with few school and job options.

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In Pennsylvania, the next major presidential primary state, concerns about the economy loom large as global competition, economic restructuring, and an aging workforce threaten the state’s ability to prosper. A true economic agenda for the state and its 16 metropolitan areas must speak to the core assets of Pennsylvania’s economy and where these assets are located: the state’s many small and large metropolitan areas. Amy Liu says an effort has to be made to build upon those assets for the future of the Keystone state and the nation as a whole.

Video

• Pennsylvania Metro Areas' Economic Potential

In the long run-up to the Pennsylvania primary, there's been a good deal of candidate discussion of the state's economy and how to fix it.

But missing from the prescriptions of what the federal government would do and how it would do it has been a discussion of where it will happen.

That needs to change because place matters. For all the ink spilled on the declining fortunes of the commonwealth, there are many bright spots around the state that could be catalysts to growth and prosperity.

Recent Brookings research shows strength in varied fields across the state:

Advanced health care, pharmaceuticals, and information technology in Greater Philadelphia.

Health care, architecture and engineering, and banking in Pittsburgh.

Heavy construction, machinery and food processing in Lancaster.

Industrial gases, health care and higher education in the Lehigh Valley.

The state's economy is an amalgam of its 16 metropolitan areas that generate 92 percent of its economic output.

The top six metropolitan areas alone - Philadelphia, Pittsburgh, Harrisburg-Carlisle, Allentown-Bethlehem-Easton, Scranton/Wilkes-Barre, and Lancaster - constitute 68.4 percent of the state's population and produce 80.5 percent of the state's economic output.

The research underscores that four key assets overwhelmingly located in metropolitan areas - innovation, modern infrastructure, strong human capital, and quality places - are needed today to drive productivity of firms and workers, improve the wealth and opportunities of families, and ensure sustainable growth. America's metropolitan assets - the universities, the health-care concentrations, and the skilled-labor pools - are the drivers of our national economy and the key to future American competitiveness and success.

So what does this mean for Greater Philadelphia? And what would a more thoughtful federal role look like?

Two realms with extensive current federal involvement are transportation infrastructure and innovation. Cogent efforts from Washington in both these areas could significantly leverage state and local efforts.

Rather than thinly spreading transportation-infrastructure dollars across the country, the federal government should spend strategically.

For Greater Philadelphia, supporting its competitive advantage as the linchpin of Amtrak's Northeast Corridor with federal dollars for more frequent and reliable service would strengthen the region as a rail hub, as has been championed by the Greater Philadelphia Chamber of Commerce.

Additionally, federal transportation policy should empower metropolitan areas with the discretion to spend funds flexibly, whether that's improving the aging SEPTA system, beginning the work of reinventing and burying Interstate 95 to increase access to the Delaware waterfront, or increasing transit access of city residents to suburban jobs.

Regarding innovation, unfortunately, the federal government currently has no unified national strategy to maximize high-quality jobs and spread their benefits throughout the Philadelphia region. Instead, it has a series of highly fragmented investments and programs.

Current programs put strong emphasis on research, but are insufficiently attentive to the commercialization of that research and blind to how innovation and jobs arise from the intense interaction of firms, industry associations, workers, universities and investors - a nexus ready to be capitalized on in Greater Philadelphia as documented by the Economy League of Philadelphia in a report for the CEO Council for Growth.

To this end, the federal government should reorganize its efforts and create a National Innovation Foundation, a nimble, lean organization whose sole purpose would be to work with industries, universities, business chambers, and local and state governments to spur innovation. Similar, successful national agencies are already up and running in competing nations, such as Britain, France, Sweden and Japan.

This effort should include R&D and support for technology-intensive industries such as information technology and pharmaceuticals, but it also must make small and medium-size manufacturers more competitive and train workers in manufacturing and low-tech services to work smarter.

Looking forward, our federal government must realize this is a "Metro Nation" and value and strengthen economic juggernauts such as Philadelphia.

Only by organizing our currently fragmented investments in transportation and innovation - and targeting them where they will provide the greatest return, metropolitan America - will the United States continue not only to compete, but also to lead.

This is the first in a series of reports on the demographic and political dynamics under way in 10 “battleground” states, deemed to be crucial in deciding the 2008 election. As part of the Metropolitan Policy Program’s Blueprint for American Prosperity, this series will provide an electoral component to the initiative’s analysis of and prescriptions for bolstering the health and vitality of America’s metropolitan areas, the engines of the U.S economy. This report focuses on Pennsylvania. Among its specific findings are:

• Pennsylvania is becoming a demographic “bridge” between Midwestern states like Ohio and other Northeastern states like New Jersey, as its new growth is tied to urban coastal regions. While often classed as a so-called “Rust Belt” state, its eastern and south central regions are increasingly becoming part of the nation’s Northeast Corridor, with new growth and demographic profiles that warrant attention in upcoming elections.
• Eligible voter populations indicate a state in transition, where minorities, especially Hispanics, and white college graduates are increasingly important, but where white working class voters continue to play a central role. While white working class voters continue to decline as a share of voters and are less likely to work in manufacturing and goods production, they are still a critical segment of voters, including in the fast-growing Harrisburg and Allentown regions where their absolute numbers are actually increasing.
• Recent Democratic victories in Pennsylvania have featured strong support from groups like minorities, single women, and the young but have also benefited from relatively strong support among the white working class, especially among its upwardly mobile segment that has some college education. Compared to 1988, both the latter group and white college graduates have increased their support for Democrats. And both groups have increased their share of voters over the time period.
• Political shifts in Pennsylvania since 1988 have seen the growing eastern part of the state swing toward the Democrats, producing four straight presidential victories for that party. The swing has been sharpest in the Philadelphia suburbs, but has also been strong in the Allentown region and even affected the pro-Republican Harrisburg region. Countering this swing, the declining western part of the state has been moving toward the GOP.
• Key trends and groups to watch in 2008 include the white working class, especially whites with some college, who, unlike the rest of this group, are growing; white college graduates; and Hispanics, who have been driving the growth of the minority vote.

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In last night’s Pennsylvania primary, Hillary Clinton won a sweeping if not quite overwhelming victory, receiving 55 percent of the vote and reducing Barack Obama’s overall popular vote edge by more than 200,000. Because of the Democratic party’s system of proportional representation, she netted fewer than 15 pledged delegates. These results have quieted calls for her to leave the race and will probably slow the steady flow of superdelegates to Obama. Nonetheless, her path to the nomination remains steep.

The demographics of the Pennsylvania vote followed a now-familiar pattern. Obama won among voters younger than 40, while Clinton prevailed among older voters. Obama won in big cities and some inner suburbs; Clinton carried suburbs overall while winning more than 60 percent of the small town and rural vote. Clinton did 9 points worse among men than among women, who constituted 59 percent of last night’s voters. She received 62 percent of the vote from gun-owning households and almost three-fifths of the vote from union households. Obama carried voters from families making less than $15,000 and more than $150,000; Clinton carried everyone in between. She received 64 percent of the vote from high school graduates but only 48 percent from college graduates. Obama won 55 percent of the vote among those who consider themselves “very liberal,” while Clinton got 60 percent of the vote among self-described moderates. Clinton took 56 percent among long-time Democrats, while Obama took 62 percent of new Democratic primary voters—principally Republicans and Independents who registered as Democrats to participate, but also the 4 percent of the primary electorate that previously been unregistered.

There is evidence that religion, gender and race all figured in the results. Clinton received 58 percent of the white Protestant vote and a stunning 71 percent of white Catholics. Obama got 64 percent of those who profess no religion and 56 percent of those who never attend church. Clinton did 22 points better among those who said gender was important than among those who did not. (Intriguingly, men who said it mattered were also more likely to support Clinton.) By contrast, race appears to have been a negative for Obama: whites who said it mattered gave 75 percent of their votes to Clinton, versus only 58 percent for those who said it did not. While nearly half the whites for whom race mattered refused to say that they would be willing to support Obama in the general election, their sentiments may well soften in coming months as differences between the parties come to the fore.

The long campaign mattered, and it left some bruises. 68 percent of the voters said that Clinton had attacked unfairly; 50 percent thought Obama had. Nearly a quarter of the electorate thought that Clinton was solely responsible for unfair attacks, versus only 6 percent who thought Obama was. Only 57 percent of the electorate thought that Clinton was honest and trustworthy, versus 67 percent for Obama. Only 40 percent said they would be satisfied if either candidate won; 32 percent wanted only Clinton, and 23 percent only Obama. But however negative the contest may have turned, it appears to have worked to Clinton’s advantage: she received 57 percent among voters who decided during the last week before the primary, 5 points better than she did among those who decided earlier.

The results also confirmed the surge in concern about the economy. Fifty-five percent of the voters regarded the economy as the top issue, versus only 27 percent for the war in Iraq and a modest 14 percent for health care. Obama prevailed only among voters who gave top priority to Iraq, while Clinton received 54 percent of the health care voters and 58 percent of the economy voters.

Attention now shifts to the May 6 primaries in North Carolina and Indiana. Obama is expected to prevail in North Carolina, but Indiana offers a level playing field. A split decision would be likely to prolong the race, while an Obama sweep might well induce many undecided superdelegates to declare for him and bring this protracted contest to an end. In addition, Obama’s fundraising edge is becoming increasingly important. Not long into her victory speech, Clinton made an urgent pitch for new contributions. Facing a mounting debt and dwindling cash on hand, her ability to continue on until the end of the primary and caucus season in early June may well depend on the size and speed of her supporters’ response.

An analysis of the growth and characteristics of the foreign-born in the Philadelphia metropolitan area between 1970 and 2006 finds:

• Among its peers, metropolitan Philadelphia has the largest and fastest growing immigrant population, which now stands at over 500,000, comprising 9 percent of the population. Between 2000 and 2006, greater Philadelphia’s immigrant population grew by 113,000, nearly as many as had arrived in the decade of the 1990s.
• Metropolitan Philadelphia has a diverse mix of immigrants and refugees from Asia (39 percent), Latin America and the Caribbean (28 percent), Europe (23 percent) and Africa (8 percent). The 10 largest source countries are India, Mexico, China, Vietnam, Korea, Italy, Ukraine, Philippines, Jamaica, and Germany.
• Immigrant growth in suburban Philadelphia has outpaced the city’s growth, but numerically, the city has the largest population of all local jurisdictions. Outside the city, Montgomery County had the earliest post- World War II suburban settlement of the foreign born and has the largest number of immigrants among jurisdictions, while Chester County saw the fastest growth during the 1970-2006 time period.
• Nearly 60 percent of the foreign-born living in metropolitan Philadelphia arrived in the United States after 1990. Although their naturalization rates and educational levels reflect their recentness of arrival, on the whole, greater Philadelphia’s immigrants are doing well on these measures as compared with some other U.S. metropolitan immigrant populations.
• Nearly 75 percent of greater Philadelphia’s labor force growth since 2000 is attributable to immigrants. Immigrants’ contributions to the labor force are considerably higher in this period than in the 1990s, when just 36 percent of the growth was due to immigrants.

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Bringing together the five counties of Southeastern Pennsylvania, the nonprofit Metropolitan Caucus, a new regional consortium there, is promoting a joint regional application for ARRA’s competitive Energy Efficiency and Conservation Block Grant dollars. Its four-part proposal, which will add and refine partners and programs over time, draws on the collaboration of multiple regional institutions to establish and operate a loan fund for green building and retrofits; support clean energy technology deployment; assist local governments with energy efficiency plans; and measure the energy performance of public facilities.

The newly created Metropolitan Caucus of southeastern Pennsylvania is leading the bold new regional energy efficiency strategy targeting for the competitive Energy Efficiency and Conservation Block Grants (EECBG) in the American Recovery and Reinvestment Act (ARRA). Unprecedented for the region, the Metropolitan Caucus has brought together five area counties—Bucks, Chester, Delaware, Montgomery, and Philadelphia—to make the most of the stimulus opportunity by coordinating their plans, goals, and assets to achieve maximum regional benefit. Their proposed joint EECBG competitive application for roughly $35 million calls for financing construction and retrofits, supporting clean energy companies, measuring building energy performance, and assisting local governments in implementing various sustainability solutions. To carry out each of these activities, the caucus intends to engage in broad cross-sector collaboration to leverage the strengths and unique assets of regional educational institutions, key nonprofits, and planning agencies.

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Last week international electronics mega-manufacturer Foxconn announced plans to invest $30 million in a new robotics plant in Harrisburg, PA. Foxconn, the notorious Chinese low-wage manufacturer of Apple’s iPhone, has become the poster child of U.S. outsourcing in the face of ruinous global labor cost competition. The calculus of manufacturing supremacy is seemingly simple: Low labor costs and taxes, proximity to a large consumer base, and manageable corruption levels equal a sure strategy to attract global firms.

So what’s going on in Harrisburg? Foxconn is beginning to realize what a number of global manufacturers have come to realize: Production sites that can leverage university, government, and private R&D, a market-ready STEM workforce, and a vibrant cluster of global manufacturing supply chains trump cheap labor and tax breaks. In this regard the Harrisburg region is a big win for Pennsylvania as well as Foxconn—a company trying to move away from a legacy of poor working conditions to one of high-value, high-skilled production.   

Harrisburg and the larger Rust Belt Pittsburgh-Youngstown region to the west are hotbeds of advanced manufacturing. Youngstown is home to the National Additive Manufacturing Innovation Institute—an internationally recognized hub for so-called “3D printing” that draws together public- and private-sector resources. Pittsburgh—with the University of Pittsburgh, Carnegie Mellon University, and firms like Google—has redefined itself from a gilded-era steel town to a modern technology leader in software and robotics. Indeed, Foxconn is investing $10 million in Carnegie Mellon’s world class advanced robotics R&D. Finally, also in the Rust Belt and including Harrisburg, Akron and Cleveland, cheap natural gas has helped push manufacturing job and firm growth in a region that was hit extremely hard by the recession.

While Foxconn may be one of the highest profile foreign firm to relocate to the United States it is certainly not, as we’ve discussed, the first. Again and again, global firms interested in high-end manufacturing are putting a renewed premium on geographic clusters of intensive innovation. To be sure, countries with low labor costs still maintain solid advantages in a number manufacturing industries that will help their economies grow—this is the benefit and reality of a global economy. But when it comes to advanced manufacturing, U.S. metro areas and regions that foster synergies between research, skills, and production will likely continue to be highly sought after from firms looking to move up the global value chain.

With the GOP convention now in the electoral rearview mirror, attention is pivoting quickly from Ohio to Pennsylvania as the Democrats kick off their own nominating convention in Philadelphia.

Although it has voted Democratic in the last six presidential elections, political analysts have historically regarded the Keystone State as a swing state. FiveThirtyEight’s latest general election forecast projects a 46 percent vote share for Hillary Clinton, versus just under 44 percent for Donald Trump, making it the sixth-most competitive state. Pennsylvania also features what is shaping up to be a tight Senate race between incumbent Republican Pat Toomey and Democratic nominee Katie McGinty. Thus, it is useful to see how the state’s voters might view the condition of the economy, which could very well influence turnout levels and candidate preferences amid close contests this November.

The economic perspectives of Pennsylvanians are perhaps best understood through the prism of the state’s highly distinctive major metropolitan areas. Five large metro areas span the state—Allentown, Harrisburg, Philadelphia, Pittsburgh, and Scranton—and together account for 63 percent of Pennsylvania’s population and 75 percent of its GDP. Their economic specializations are diverse: trade, transportation, and manufacturing in Allentown and Scranton; financial, professional, and educational services in Philadelphia and Pittsburgh; and government in the state capital of Harrisburg. While much political news coverage of Pennsylvania is likely to focus on its iconic small towns, it is really these large metro areas that define the state demographically and economically.

While Pennsylvania was not one of the states hardest hit by the Great Recession, most of its major metropolitan areas bounced back relatively slowly. According to the Brookings Metro Monitor, Harrisburg, Philadelphia, and Scranton ranked among the 20 slowest-growing large metropolitan economies from 2009 to 2014. All performed somewhat better on achieving increases in the local standard of living (prosperity), but Pittsburgh stood out for its 6 percent average wage growth during that time, seventh-fastest in the nation. This wage trend also seems to have propelled Pittsburgh to a better performance than other Pennsylvania metro areas on indicators of employment, wages, and relative poverty (inclusion). Allentown, Harrisburg, and Philadelphia, on the other hand, registered declines in typical worker wages during the first five years of the recovery and little to no progress in reducing poverty.

The picture over a longer timeframe is similar, though somewhat less dire. Pittsburgh posted middling growth but very strong performance on prosperity and inclusion over the past 10 to 15 years. That provided a contrast with Allentown, where the economy grew somewhat faster but productivity and average standards of living did not, and economic inclusion suffered. The remaining metro areas—Harrisburg, Philadelphia, and Scranton—all grew weakly but managed to post middling performance on prosperity and inclusion indicators.

Pennsylvania remains a whiter state than the national average, but its major metro areas are increasingly diverse, particularly in the southeastern part of the state around Philadelphia and Allentown. Nonetheless, Pennsylvania’s economic challenges are frequently framed around the plight of the white working class, which, as my colleague Bill Frey notes, comprises 59 percent of the state’s eligible voter population. In Allentown, Harrisburg, and Philadelphia, whites have indeed suffered long-term wage stagnation. Yet in the more manufacturing-oriented Pittsburgh and Scranton areas, median wages for whites rose significantly from 2000 to 2014. By contrast, workers of color have experienced much more troublesome wage trends, losing ground to whites in every major metro area. Across the five metro areas, typical earnings differences between whites and other workers in 2014 averaged between $10,000 and $12,000.

A look at the most recent job trends, from 2014 to 2016, suggests a shifting metro growth map in Pennsylvania. Over the past two years, Philadelphia and Harrisburg have posted much stronger job gains, Allentown’s average annual job growth rate has halved, and Pittsburgh’s job level has flat-lined. The state’s two largest urban centers frame this stark change. In every major industry category, average annual job growth in Philadelphia over the past two years outpaced its rate over the previous five years. In Pittsburgh, on the other hand, job growth slowed—or turned negative—in nearly every sector. The recent energy price crash has halted a fracking boom that buoyed the western Pennsylvania economy through much of the recovery, at the same time that Philadelphia is enjoying a surge in professional services and construction employment. Fittingly, Donald Trump used Allegheny County, outside Pittsburgh, as the backdrop for one of his first post-primary campaign stops, while Philadelphia’s economic momentum will be the background of the Democrats’ argument for another four years in the White House.

The Pennsylvania economy is thus not easily characterized, and the attitudes of its voters are likely to be shaped by regionally specific short-term and long-term trends. Those trends seem sure to keep the Keystone State’s electoral votes and U.S. Senate seat highly contested over the next several months.