From semiconductors to electric vehicles, governments are identifying the strategic industries of the future and intervening to support them – abandoning decades of neoliberal orthodoxy in the process. Are industrial policies the key to tackling twenty-first-century economic challenges or a recipe for market distortions and lower efficiency?
NEW DELHI – Nowadays, many people seem to be more relaxed than ever about nationality, with the Internet enabling them to forge close connections with distant cultures and people. But states remain extremely sensitive about their borders’ inviolability. After all, territory – including land, oceans, air space, rivers, and seabeds – is central to a country’s identity, and shapes its security and foreign policy.
States can respond to territorial disputes either by surrendering some aspects of sovereignty, thus weakening their power and influence, or by adopting a more robust national-defense strategy aimed at fending off current challenges and precluding future threats. Today, many Asian countries are choosing the latter option.
Consider the territorial disputes roiling the Indian Ocean and other East Asian regions, sparked by China’s repeated – and increasingly assertive – efforts to claim sovereignty over vast maritime areas. As China’s incursions reignite long-smoldering disagreements and threaten to destabilize the regional status quo, countries throughout Asia are reconsidering their strategic positions.
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