By George Amurao
Asia Times Online
During United States Secretary of State Hillary Clinton's recent regional tour, America's top diplomat acknowledged the crucial role economic aid will play in the US's "pivot" towards Asia. Despite that recognition, Clinton failed to present concrete plans for a significant boost in non-military aid to allies in Southeast Asia, underscoring the US's fiscal straits and future ability to project financial power.
As the US bids to recalibrate its foreign policy more towards Asia, the world's lone superpower faces the dual challenge of China's growing military muscle and stores of soft power accumulated through years of checkbook diplomacy in the region. Unless the US is able to match or exceed China's economic and financial sweeteners, its "pivot" policy will come under rising criticism for its emphasis on strategic affairs.
China owes much of its power and influence in the region to generous hand outs and a fast growing economy, both of which have propelled economic growth across much of Southeast Asia during the wider global slowdown. While recent confrontations with the Philippines and Vietnam over contested territories in the South China Sea have raised concerns about China's long term intentions, its growing economic clout in the region has so far helped to cap those anxieties.









