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De Castro, Renato Cruz

Abstract
How does a small power respond and adjust to a fluid and potentially dangerous strategic balancing by major powers generated by a territorial dispute? This paper observes that notwithstanding the major powers’ mistrust, suspicion, and rivalry, such precarious stability in the South China Sea dispute is sustained by a balance-of-power system. This system is an offshoot of the small littoral states’ (in this case, the Philippines’) policy of engaging the external maritime powers (the United States and Japan) to counter China’s heavy-handedness in dealing with this territorial row. Apprehensive of China’s claim of sovereignty over the South China Sea, the United States and Japan are increasing their strategic involvement in the maritime territorial row. These developments have transformed the dispute into a case of conflict irresolution. To cope with China’s heavy-handedness, the Philippines builds up the deterrence capability of its armed forces and forges security partnerships with the United States and Japan. The Philippines hopes that this move will ensure the maintenance of the status quo in the regional balance of power. In conclusion, the paper considers the Philippines’ policy as myopic, since it overlooks the fact that the volatile balance of power situation in the South China Sea might be the proverbial “calm before the storm.” It is crucial that the Philippines puts its house in order, economically keeps pace with its more dynamic Southeast Asian neighbors, increases its defense spending, formulates a coherent national security strategy, and concentrates on building a credible armed forces to avoid free-riding on its allies, and more importantly, to enable the country to weather the approaching storm.
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