Tag: moral hazard

More on Moral Hazard in US Alliances: Explaining Japan-Korea Tension (and Greece-Turkey?)


So this post is a bleg to those of you who know more about alliances than me. I am considering writing this up for an article, so I thought I would ‘crowd-source’ early comments on the basic argument. I also wonder if someone elsewhere has already suggested this idea in the vast alliance literature. So please let me know. The motivation is inductive – the deepening tension between Japan and Korea has suggested the addendum to alliance theory I am proposing here. But I wonder if others have said this before.

Put briefly, I don’t think entrapment or abandonment captures the US position between allies in dispute, like Japan and Korea, or Greece and Turkey (perhaps – I know that latter case less well). Instead, each seems to use the US alliance patron to: a) compete with each other, because b) the US alliance relieves external pressures (China and North Korea, and the USSR and chaos in the Balkans and Middle East, respectively) that would otherwise incentivize a rapprochement. These four states are not trying to ‘entrap’ the US so much as leverage it for an intra-alliance squabble, with the shared patron as referee. I’ve not read this theorized elsewhere, so here is an effort to do so.

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Do US Alliances Re-Assure in Asia, or Create Moral Hazard?

Newsweek Korea cover

The conventional wisdom on the US presence in Asia is that we re-assure all players. Specifically, US allies don’t need to arms race local opponents, because the US has extended deterrence to cover them. Hence Japan and South Korea don’t need to go nuclear, for example. Among academics, this logic pops in the work of Christensen, Ikenberrry, and Nye; among policy analysts, here is the US military saying this, and here is the DC think-tank set.

But there’s flip-side to this logic that really needs to be investigated – whether the US presence also freezes conflicts in place, by reassuring Asian elites against their own reckless nationalist rhetoric, racially toxic historiographies, and Fox News-style inflammatory media (just read the Global Times op-ed page occasionally). I think the Liancourt Rocks fight is a particularly good example of this ‘moral hazard’ mechanic, as is the recent comment by no less than the South Korean foreign minister (!) that Abenomics’ threat to Korean export competitiveness is a greater danger to SK than North Korea’s nuclear program. That kind of preposterous, reckless myopia can only be explained by taking the US security umbrella for granted.

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