Building on a careful analysis of Southeast Asia's recent history, politics, economics, and place within the Asia Pacific, this report looks forward two decades to anticipate the development of trends in the region and how they will impact the U.S.-Japan alliance. How will Southeast Asian states come to grips with the political and economic rise of China? How will they modernize their military forces and security relationships, and what role can the United States and Japan play? How will they manage their disputes in the South China Sea, and how will they pursue greater regional integration? These questions will prove critical in understanding Southeast Asia's role in the Asia Pacific, and in the U.S.-Japan alliance, in the decades ahead.

Economics is critical to Asia-Pacific affairs and to U.S. interests there. The region accounts for roughly half of global GDP and trade and includes some of the world's fast-growing economies. American growth and jobs increasingly depend on trade and investment with Asia, and many of the rules of the global economic system over the coming decades will be shaped there. Effective U.S. economic policies in the region are thus an essential complement to other dimensions of the rebalancing strategy, reinforcing and being reinforced by the military, diplomatic, and political elements. In an effort to provide practical assistance to U.S. policymakers grappling with these challenges, the CSIS Asia Team prepared short papers on a number of key economies of the Asia region: China, India, Japan, Korea, and the Association of Southeast Asian Nations (ASEAN). These papers, presented here, are intended to offer practical advice to Obama administration policymakers as they set a strategic course for economic relations with these important countries over the next four years.