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Chapter 4
               Analysis and Recommendations








               Introduction


                F        rom the time of ancient Greece        created an economic global network that



                                                               was sustainable and persistent. On the
                         through World War II, when a
                         rising power met an established

               power, war resulted roughly three out of        other hand, the Soviet Union resorted
                                                               mostly to military capacity building that
      Implications to ASEAN
                                33
               every four times.   However, the destructive    was not sustainable. The West adapted
               powers of contemporary weapons mean             to post World War II geo-strategy and won,

               that both US and China are likely to falter     while the Soviets remained stuck to the

               if they follow this historical path to          old ways and lost.

               great power dominance. Consequently,
               the route to becoming or remaining a                 More pertinent examples can also be

               hegemonic power is by following the             seen in our area of interest; the South China
         Evolving Geo-Strategic Matrix in South China Sea:
               economic path to achieve dominance.             Sea. Post World War II Japan became
      22       This is a fundamental shift in the way          major world player without a strong military.

               the geo-strategy works in the world of our      South Korea, pursued economic priorities

               times. To exemplify it, we can look at          over domestic military needs and leap

               the Cold War which displayed that the           frogged North Korea by lengths. Indonesia

               dominant economic strategy was the              distanced itself from its claimed territorial
               decisive factor in achievement of final         claims in the region, focused on economic

               outcome.  The  economic  aid  and               development and became a prominent

               capacity building programs starting             stake holder in ASEAN. China introduced

               with the Marshal Plan and later the             major cuts to the military budget as a
               institution-building like the World Bank,       percent of GDP, avoided active engagement

               the International Monetary Fund (IMF),          in  border  disputes  and  focused  on

               and World Trade Organization (WTO) etc          economic growth.





               33   Graham Allison, Destined for War: Can America and China Escape Thucydides’s Trap? (Houghton Mifflin
                  Harcourt; First Edition (May 30, 2017)
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