Indo-Pacific Economic Framework: Partnering with Asia for Long Term US Growth

The Indio-Pacific Economic Framework is a hot discussion in world markets right now. It is in the process of forming and lots of great ideas are being bounced around by key administrators and key stakeholders. This is a time when the rise of China and the rejuvenation of the U.S. (hopefully) are competing for regional influence. Asian markets are important and so is the hedging of knowledge and resources. How that framework should come together is not written in stone but you can read some of the key points below through the development of a broader economic reemergence strategy.

From a generalists view the U.S. must manufacture products (virtual and physical) and that can only come from innovation, data infrastructure, and advanced manufacturing. Resources, information, ideas, and advancement must peculate toward U.S. developmental centers (To me that looks like clusters but each person might see something a little different.) and high value products must move outwards toward world markets (See Global Value Hubs, Transactional In-Out Flow). 

Keeping up on changes and legislative action is important for understanding the whole.

Indo-Pacific Economic Framework

Main points of the Indo-Pacific Economic Framework related to ASEAN member states as released on Oct 27th, 2021 in Readout of President Biden’s Participation in the East Asia Summit. 

-Trade Facilitation
-Digital Economy and Technology Standards
-Supply Chain Resiliency
-Decarbonization and Clean Energy
-Infrastructure Development
-Worker Standards
-Other Shared Interests

-Commitment to International Order (democracy, human rights, rule of law, and freedom of the seas.)

The call to create a stronger Indo-Pacific Economic framework was also discussed during an East Asian Summit and highlighted within a Congressional Research Service December 2nd, 2021 release Biden Administration Signals Plans for an Indo-Pacific Economic Framework 

-The White House has indicated interest in finding solutions on trade facilitation, digital trade, supply chain resiliency, clean energy, infrastructure, and worker standards.

-A growing desire to counter China's growing influence in the region through stronger trade initiatives.

-Open questions to Congress on the nature of the agreements, its economic benefits and other trade issues. 

Opinion Piece Filling in the Indo-Pacific Economic Framework

G 7 Global Infrastructure

Matthew P. Goodman & William Reinsch put together an opinion piece entitled Filling In the Indo-Pacific Economic Framework. They want to ensure that such frameworks provide tangible benefits for both Americans and Indo-Pacific partners through commitments based on coordination, transparency and inclusiveness. The following key points are taken directly from the report.

-Develop the Framework: the framework should seek to advance binding rules and hard commitments that go beyond broad principles and goals.  

-Trade Facilitation: Simplifying and improving import and export procedures at the border are critical to promoting jobs and growth, particularly for small and medium-sized enterprises (SMEs).

-Digital Economy and Technology Standards: Develop U.S.-preferred digital rules and norms in the Indo-Pacific region.

-Supply Chain Resilience: Creating resilience and redundancy in critical supply chain infrastructure. 

-Decarbonization and Clean Energy: Encouraging clean energy, renewable energy and decarbonization by key partners. 

-Infrastructure: Develop infrastructure of the tune of $26 Trillion with the Build Back Better World of the (G7) leaders. 

-Worker Rights: Because of the high potential of exploitation there should be a commitment to worker rights. 

-Other Areas: A general category of miscellaneous improvements. 

There isn't much I disagree with within the report. Some of the things are opinion oriented while others make a lot of sense. We will want to keep in mind in any decision making 1). how it strengthens the U.S. and allies, 2.) puts the U.S. toward the center of creation of the supply chain for maximizing long-term value (i.e. flow of products, resources, opportunities, etc.) 3.) prepares the U.S. for long-term international social and economic influence (We still have a responsibility to be the best we can be as a nation and a people.)  

APEC: Asian Pacific Economic Cooperation

The mission of the organization is ,"APEC is the premier Asia-Pacific economic forum. Our primary goal is to support sustainable economic growth and prosperity in the Asia-Pacific region"

-Free and open trade and investment,
-Promoting and accelerating regional economic integration,
-Encouraging economic and technical cooperation,
-Enhancing human security,
-Facilitating a favorable and sustainable business environment.

A couple of other article and bulletins you might be interested in are Statement by Press Secretary Jen Psaki on the United States Hosting APEC in 2023, Matt Murray U.S. SENIOR OFFICIAL FOR ASIA-PACIFIC ECONOMIC COOPERATION (APEC), Announcement of Matt Murray as U.S. Senior Official for Asia-Pacific Economic Cooperation (APEC)

Side Note: I'm sort of looking at these things because I would like the U.P. of Michigan to develop a few key locations that have strategic purpose which would relate to some of our treaties and happenings in Asia and the rest of the world. That doesn't mean I want to overdevelop the area but that there are locations where real improvement can be made and that could increase the competitive advantages in terms of innovation and supply chain that leads to advanced manufacturing, military-aerospace development, and encourage regional growth of other states (and CAN) based upon new initiatives and policies. That of course comes with opportunities for local residents. This is sort of part of a process of Environmental Scanning 

One might wonder what the Indo-Pacific Economic Framework has to to with the U.P. of Michigan and specifically in places like Escanaba (and other locations). Supply chain development and importation of products from and to Asia relates to our own development. The Great Lakes can be a major catalyst in rejuvenating the U.S. to be not only at the center of innovation and supply chains but also simply the best place to do business (investment, infrastructure, civil rights, international business law, human capital, etc....) 

 The Ambassadors
1533
Hans Holbein the Younger

Rejuvenation (American Renaissance) doesn't happen unless we create a mental framework of how all of our activities can lead to improved growth for us and our partners. One advantage China has through Communist mechanisms is control of the economy that leads to short term growth. That same control limits innovation and development from an organic level (controlled vs. uncontrolled). When the U.S. builds a framework and can motivate people to work within it as (i.e. the new Digital Economy with advanced innovation and manufacturing that also can protect American data . See a Data Driven World) the pieces align organically, micro oriented, and in turn be much more innovative than any other top down form of governance (Negative Dollar and Productivity Example, Developing Networks, US Competitive Position, Global Lightening). 

The power of freedom and democracy may start slow but once it builds momentum with like minded patrons it becomes a world powerhouse. If managed well, It will maintain opportunities for generations to come through self rejuvenation and perpetual growth (See Life Cycle Rejuvenation and Economics & Self Motivation). 

You may also want to read a little on the Digital Trade which is going to be important for the emerging Digital Economy and its associated advanced economic structure. HERE We are the cusp of great change! I took the quote from the report, "U.S. exports of information and communication technology (ICT) goods and services were $148 billion and $80 billion, respectively. In addition, exports of potential digitally-enabled services were $499 billion, comprising over half of U.S. services exports" Now imagine if physical and virtual goods begin integrating into one and the high level of new value such new development lines bring. 

Pretty much...the country that can build the first advanced tech large scale manufacturing society is likely to earn the lions share of international investment that continues to grow because of infrastructure (digital and physical) efficiency/effectiveness and having all the elements needed to maximize investor dollars (Not to mention the First In secondary benefits like military, space, and personal technologies.).  Its kind of aim once and shoot once opportunity but some of our politicians might be having more fun arguing than solving problems. While arguing is ego driven fun it often leads to lost opportunities (Think of how important this next 10 years will be and how this election will give or diminish momentum.).

The hyper dysfunction we are experiencing as a nation is why I support a larger central political stance, make deals where they make sense, and focusing on the long term health of the nation. Isn't that why they were elected? (Leadership-Executive, Leadership Model and Leader Cognitive Differentiation). Maybe it would be helpful for our business community to nudge a little by stop donating to politicians that are unwilling to compromise and unwilling to do what is in the best interest of society (Republican, Democrat or Independent in any preferred order you want to put them.).  It might create pressure that pays dividends for all Americans now and in the future. Transformational change is an "all hands on deck" kind of affair. We all have a stake in our future and its not up to any political group or entity to destroy it for the rest of us just because they want to win elections (Putting our money into those that want to actually lead in an evidence based problem solving manner for the benefit vast majority of society is important. Wisdom, "Ethics", Leader Moral Reasoning, Ethics Vacuum, Moral Character, Simple Beliefs Ethics,  Political Disagreements, , Aristotle's Friendship, City in Sea)

Just as a hypothetical discussion.....if business, media, technology, investors and centralist politicians worked together.....I wonder if it would be enough to change our trajectory and options? (It would probably at least influence the culture of politics significantly if "big mouths" didn't get any money or support? ). 🤷 (China Expects to Overcome the U.S. , Platforms in Society, Perpetual Sustainable Development, Two Biggest Threats, and Grand Strategies.) Wow! Way out there in Theory mapping!!!! Kind of interesting to think about as one possibility of right sizing the ship. It would be immoral to say which politicians should or shouldn't receive money but we know intuitively which are willing to compromise and which one's are self-seeking in their ideological demands! Nationalism or Patriotism 🤓 The business community should be familiar with picking out the "problem" employees and not encouraging or promoting them with corporate dollars (Kind of opposite of campaign finance reform in a Level K kind of thinking. Maybe we can tackle that at a later date when we get through the hump.)  Other "kind of" related interesting reading might include Social cognition, Business collaboration, ' Post Covid,  Evolutions, Business Trends, Innovation and Human Capital, Keynesian-Schumpeter, DC Rejuvenation, Stakeholder Theory Bounded Rationality, Sustainable Marketing, Postal Reform, Innovative Structures, Strategy Formation, Evidence Management, Evolutionary Economics, Business & Government Performance, Economic Choice, Game Theory US/China, Haiku Poem

Kind of makes you think doesn't it? 🤔Just imagine if we picked our leaders by their inherent qualities and not their politics. A sort of paradigm shift. Not sure where that would lead. Maybe it would be a good change that would lead to better outcomes. Either way I'm pretty sure it would have a positive effect on our democracy as the large but silent "rational middle" is given more influence 🤷  Naaaaa just forget it! Doing the same thing over and over seems to be our preferred path! 😮🙊

“Insanity is doing the same thing over and over and expecting different results.” 

Einstein Insanity in Scientific American.

I should probably say before someone gets upset. 😬This isn't about any particular person, party, approach, etc... it is just an opportunity to understand that democracy should allow good ideas to bubble up and encourage leaders to think beyond their own needs (Strategic Leadership). A type of theory play using practical modern events/stories to create deeper learning in online classrooms. No such thing as a "Book of Indisputable Facts" so questioning is our God given right! 💗💨

We-Economics