Trade
Authors
David G. Victor
News Type
Commentary
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Having backed down from its trade dispute with the EU over GM food, the Bush administration will find it hard to make the threat of going to the trade organization credible again and to continue the momentum toward removing Europe's ban.

STANFORD, California - The Bush administration wisely backed away this month from formally challenging Europe's ban on genetically modified foods. It made no sense to antagonize Europeans over the food they eat when they are pivotal to more weighty matters, such as a new resolution on Iraq.

Still, Washington's threat that it would file a case against the European Union at the World Trade Organization had palpable benefits. Even the countries with the most hostile policies on engineered food - France and Germany among them - took steps toward allowing the European Union to work on replacing the blanket ban with a new system for tracing and labeling engineered food.

But the decision to back off also means that American farmers are still denied access to the lucrative European market. European consumers still pay more for food than they should. And developing countries that could most benefit from engineered crops are still frightened that losing their "engineering-free" status will make it impossible to export food to Europe.

Yet the science on food safety is as certain as it ever gets: There is no known danger from eating engineered food.

Having backed down, the Bush administration will find it hard to make the threat of going to the trade organization credible again and to continue the momentum toward removing Europe's ban. But even harder for the administration will be keeping domestic politics at bay.

The biggest threat to the success of the U.S. strategy on engineered foods is in the American heartland, which is angling for a fight with Europe over the ban as the 2004 elections approach. Senator Charles Grassley of Iowa called the decision to defer a trade dispute "the usual snobbery" of a State Department "more concerned about international sensitivities than the American farmer." Two tactics should guide the effort to open Europe's markets. One is to let the Europeans lead their own reform.

The engineered foods available to consumers today mainly benefit farmers who can grow them at lower cost. These foods look and taste the same as their traditional counterparts. For rich consumers in Europe willing to pay a bit more, it is easy to focus on hypothetical risks and shun these products. But the next generation of engineered foods, already nearing the marketplace, will have healthful benefits for consumers - fruits that contain cancer-fighting lycopene, for instance - and this will make it harder for European countries to bar all these foods.

During the furor last summer over Zambia's rejection of genetically modified corn, prominent European politicians were forced to declare that these foods were safe - a blatant contradiction of Europe's own policies.

The other tactic is outreach to the developing world. In the poorest nations, agriculture provides the livelihood of most of the population, and agricultural research proves that genetic engineering can make crops that poor farmers grow both healthier and more productive.

Yet research on engineered crops and support for farmers who grow them lack money, not only in U.S. agricultural development and extension programs but also at the international agricultural research centers that were the engine of the first green revolution. In the last decade American support for international agricultural research has declined considerably.

An American program that would finance agricultural research on novel uses for genetically modified crops in developing countries would help those countries and could eventually help open European markets.

An American-led effort to pry open those markets would backfire. But one led by a developing country could succeed, as Europe considers the moral issues posed by barring food from a country which needs to sell its crops to survive. So far, few developing countries (South Africa is one exception) allow commercial planting of engineered crops. The United States needs to overcome the fears of the developing nations by growing such crops there and demonstrating how they could transform agriculture.

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This seminar is part 1 of SPRIE's 5-part series on "Greater China: Entrepreneurial Leaders."

For a long time, researchers have asked whether the success of Silicon Valley can be replicated elsewhere. There have been various levels of attempts and various levels of success outside the United States.

Depending on how success is measured, one can draw different conclusions. How do we evaluate Hsinchu Science Park? Have they created innovative products? Have they produced entrepreneurs? How do they stack up to Silicon Valley? What is their competitive edge? As China joins the WTO, what should its strategy be?

On a long-term basis, what are the factors that will drive and deliver sustainable competitive advantages? With changes in global economic conditions, how does one re-evaluate the Silicon Valley model? As China joins the WTO, what should its strategy be? And as China becomes the manufacturer of the world, what is its impact on Taiwan and Silicon Valley?

This talk offers an analysis of experiences in Silicon Valley and Asia in the past twenty years. It also offers some reflections on the model and strategy for Greater China.

Since November 1998, Sha has been a managing partner at Spring Creek Venture, which specializes in early-stage venture investment and business consultation with Internet and infrastructure companies. Sha is currently serving on the board of directors of several start-up companies, including Appstream, Acela, Aduva, E21, LiveABC, Optoplex, Mediostream, and Tom.com.

Sha has extensive experience as a leader of high technology companies. He served as CEO for Sina.com and senior vice president of Commerce Solutions at Netscape Communications. While at Netscape, he served concurrently as president and CEO of Actra Business Systems, a joint venture formed by Netscape and GE Information Services. A company Sha built from scratch, Actra was the first company to focus on business-to-business e-commerce and e-procurement application systems. Prior to Actra, Mr. Sha served as vice president and general manager of business-to-consumer integrated application business at Netscape Communications and vice president of the UNIX Product Division at Oracle Corporation.

In his community service, Sha served as chairman of the Monte Jade West Coast association from 2000-2001. Sha currently is serving as chairman of the Monte Jade Global Association, the premier technology entrepreneur association with twelve chapters in the United States, Canada, Singapore, and Taiwan.

Mr. Sha holds an MS in EECS from the University of California at Berkeley, an MBA from Santa Clara University, and a BS in EE from Taiwan University.

Philippines Conference Room

James C. Sha Managing Partner Spring Creek Venture
Seminars
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Vinod Aggarwal is professor in the Department of Political Science, affiliated professor of Business and Public Policy in the Haas School of Business, and director of the Berkeley Asia Pacific Economic Cooperation Study Center (BASC) at the University of California at Berkeley. He has been at Berkeley since 1980, and from 1991-1994 was chairman of the Political Economy of Industrial Societies Program.He is also the founder and editor-in-chief of the journal Business and Politics. Dr. Aggarwal consults regularly with multinational corporations on strategic planning, trade policy, and international negotiations. In the public sector, he has been a consultant to the Mexican Government, the U.S. Department of Commerce, OECD, the Group of Thirty, IFAD, and the World Bank. In 1990, he was special adviser on Trade Negotiations to the United Nations Conference on Trade and Development (UNCTAD) in connection with the GATT Uruguay Round negotiations and has also served as an adviser to Dr. Fred Bergsten, chairman of the APEC Eminent Persons Group. In 1997, he won the Cheit Outstanding Teaching Award at the Haas School of Business. Professor Aggarwal's authored books include Liberal Protectionism, International Debt Threat, and Debt Games, and his edited volumes include Asia-Pacific Crossroads. He is currently completing a volume on American corporate market and nonmarket strategies in Asia. He received his Ph.D. from Stanford University. This seminar is part of the Shorenstein Forum's ongoing series, "The California-Asia Connection." Lunch will be served to those who RSVP to Debbie Warren at dawarren@stanford.edu or 650-723-2408 by Friday, January 31, 2003.

Daniel and Nancy Okimoto Conference Room

Vinod Aggarwal Director, APEC Study Center Speaker Professor, Political Science, University of California, Berkeley
Workshops

CDDRL
Stanford University
Encina Hall, Room C144
Stanford, CA 94305-6055

(650) 724-7985 (650) 724-2996
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Visiting Associate Professor at the Graduate School of Business
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Eva Meyersson Milgrom is a senior research scholar at CDDRL and a visiting associate professor at Stanford's Graduate School of Business and the Public Policy Program. She is also an associate professor and senior research fellow at the School of Business at Stockholm University in Sweden.

Her current research focuses on the following topics: (1) implications of social behavioral theories on economic growth, in conjunction with Guillermina Jasso of New York University; (2) institutional change and its effects on promotion and demotion in Swedish private companies; inter-firm wage mobility in Sweden from 1979-1990; labor markets segregation (firm and individual characteristics) in collaboration with Illong Kwon of the University of Michigan along with Mike Gibbs and Kathy Lerulli; (3) equity considerations and the trade-offs between complementarities and influence costs within organizations; and (4) the structure of inequality and extremism. At Stanford, she has taught courses on international corporate governance and on managing diversity.

Her previous interdisciplinary work includes the following: In the summer of 2002, she organized a laboratory to provide an institutional analysis of economic growth based on firm-matched data from four Scandinavian countries. In fall 2002, she organized a conference that brought together scholars from diverse fields to analyze the phenomenon of suicide bombing and to discuss how this phenomenon affects current social science thinking and research. A book is in the works on this topic. Meyersson Milgrom also organized sessions on rational choice at the August 2002 meeting of the American Sociological Association.

Meyersson Milgrom previously served as a visiting scholar in the sociology departments at Stanford University (1998-2000) and Harvard University (2000-2001), and also served as a visiting associate professor at the Sloan School of Management, at the Massachusetts Institute of Technology (2001-2002).

Her recent books published in Sweden include: The State as a Corporate Owner (1998, with Susannah Lindh) and Compensation Contracts in Swedish Publicly Traded Firms (1994). Her recently published articles include: "An Evaluation of the Swedish Corporate System" in Hans T:son Soderstom (January 2003); "Pay, Risk and Productivity" in Finnish Economic Papers (with Trond Petersen and Rita Asplund); "Equal Pay for Equal Work? Evidence from Sweden, Norway and the United States" in the Scandinavian Journal of Economics (vol. 4, 2001, with Trond Petersen and Vermund Snartland); and "More Glory and Less Injustice: The Glass-Ceiling in Sweden 1970-1990" in Research in Social Stratification and Mobility (Kevin T. Leicht, editor, with Trond Petersen).

Meyersson Milgrom was born in Sweden and received a PhD in sociology from Stockholm University.

CDDRL Senior Research Scholar

APARC
Stanford University
Encina Hall, Room E301
Stanford, CA 94305-6055

(650) 723-9741 (650) 723-6530

Won-soo Kim graduated from the College of Law of the Seoul National University (bachelor of law) in Korea, and received his M.A. from the Paul H. Nitze School of Advanced International Studies at the Johns Hopkins University. He pursued graduate legal study as a doctoral (JSD) candidate at Stanford Law School. At Stanford, he also worked as a visiting fellow at CISAC between 1994 and 1995, and at APARC between 1995 and 1996.

Kim has pursued a foreign service career since joining the Korean Foreign Ministry in 1978. He has worked as the second secretary in the Korean Embassy in Washington, DC, and as the deputy director of the North America Division in the Foreign Ministry. He subsequently served as the political counselor in the Korean Embassy in New Delhi, and as the director of the Treaties Division in the Foreign Ministry.

In 1996-97, Kim served as the alternate representative of the Republic of Korea to the United Nations Security Council. During that period, Korea was a nonpermanent member of the Security Council for the first time, and sought to contribute substantively to international peace and security. Kim also worked as the political counselor of the Korean Mission to the UN until 1999.

Most recently, Kim worked at the Office of the President of the Republic of Korea as the secretary to the president for foreign affairs and trade (2002-03), as well as international security affairs (2000-02). During that period, he was in charge of overall coordination of Korea-s foreign policy on major issues, including the North Korean nuclear problem and management of the Korea-US alliance. Since September 2003, he has been in residence as a visiting scholar at APARC.

Visiting Scholar

CDDRL
Stanford University
Encina Hall
Stanford, CA 94305-6055

(650) 723-0676 (650) 724-2996
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Senior Fellow at the Freeman Spogli Institute for International Studies, Emeritus
Graham H. Stuart Professor of International Relations
Senior Fellow at the Hoover Institution, Emeritus
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Stephen Krasner is the Graham H. Stuart Professor of International Relations. A former director of CDDRL, Krasner is also an FSI senior fellow, and a fellow of the Hoover Institution.

From February 2005 to April 2007 he served as the Director of Policy Planning at the US State Department. While at the State Department, Krasner was a driving force behind foreign assistance reform designed to more effectively target American foreign aid. He was also involved in activities related to the promotion of good governance and democratic institutions around the world.

At CDDRL, Krasner was the coordinator of the Program on Sovereignty. His work has dealt primarily with sovereignty, American foreign policy, and the political determinants of international economic relations. Before coming to Stanford in 1981 he taught at Harvard University and UCLA. At Stanford, he was chair of the political science department from 1984 to 1991, and he served as the editor of International Organization from 1986 to 1992.

He has been a fellow at the Center for Advanced Studies in the Behavioral Sciences (1987-88) and at the Wissenschaftskolleg zu Berlin (2000-2001). In 2002 he served as director for governance and development at the National Security Council. He is a fellow of the American Academy of Arts and Sciences and a member of the Council on Foreign Relations.

His major publications include Defending the National Interest: Raw Materials Investment and American Foreign Policy (1978), Structural Conflict: The Third World Against Global Liberalism (1985), Sovereignty: Organized Hypocrisy (1999), and How to Make Love to a Despot (2020). Publications he has edited include International Regimes (1983), Exploration and Contestation in the Study of World Politics (co-editor, 1999),  Problematic Sovereignty: Contested Rules and Political Possibilities (2001), and Power, the State, and Sovereignty: Essays on International Relations (2009). He received a BA in history from Cornell University, an MA in international affairs from Columbia University and a PhD in political science from Harvard.

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CDDRL
Stanford University
Encina Hall, C144
616 Jane Stanford Way
Stanford, CA 94305-6055

(650) 725-4287 (650) 725-0253
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Lecturer in Law, Stanford Law School
jensen-1.jpg JD

Erik Jensen holds joint appointments at Stanford Law School and Stanford’s Center on Democracy, Development and the Rule of Law. He is Lecturer in Law, Director of the Rule of Law Program at Stanford Law School, an Affiliated Core Faculty at Stanford’s Center on Democracy, Development and the Rule of Law, and Senior Advisor for Governance and Law at The Asia Foundation. Jensen began his international career as a Fulbright Scholar. He has taught and practiced in the field of law and development for 35 years and has carried out fieldwork in approximately 40 developing countries. He lived in Asia for 14 years. He has led or advised research teams on governance and the rule of law at the World Bank, the Asian Development Bank and the African Development Bank. Among his numerous publications, Jensen co-edited with Thomas Heller Beyond Common Knowledge: Empirical Approaches to the Rule of Law (Stanford University Press: 2003).

At Stanford, he teaches courses related to state building, development, global poverty and the rule of law. Jensen’s scholarship and fieldwork focuses on bridging theory and practice, and examines connections between law, economy, politics and society. Much of his teaching focuses on experiential learning. In recent years, he has committed considerable effort as faculty director to three student driven projects: the Afghanistan Legal Education Project (ALEP) which started and has developed a law degree-granting programs at the American University of Afghanistan (AUAF), an institution where he also sits on the Board of Trustees; the Iraq Legal Education Initiative at the American University of Iraq in Sulaimani (AUIS); and the Rwanda Law and Development Project at the University of Rwanda. He has also directed projects in Bhutan, Cambodia and Timor Leste. With Paul Brest, he is co-leading the Rule of Non-Law Project, a research project launched in 2015 and funded by the Global Development and Poverty Fund at the Stanford King Center on Global Development. The project examines the use of various work-arounds to the formal legal system by economic actors in developing countries. Eight law faculty members as well as scholars at the Freeman Spogli Institute are participating in the Rule of Non-Law Project.

Director of the Rule of Law Program, Stanford Law School
CDDRL Affiliated Faculty
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UCLA Anderson School of Management
110 Westwood Plaza
Los Angeles CA 90095-1481

(310) 825-4507
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Associate Professor of Economics, UCLA Anderson School of Management
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Romain Wacziarg is an associate professor of economics at UCLA's Anderson School of Management. Previously, he was associate professor of economics at Stanford University's Graduate School of Business. An expert on international political economy, he has focused mainly on international trade and its relationship with economic development. Most recently, he has published research on the relationship between openness to trade and economic growth, as well as on the effect of an open world-trade regime on incentives for geographic regions to secede. His other areas of recent focus include a study linking ethnic, religious and linguistic diversity with economic variables; a study evaluating the economic costs and benefits of political borders; and two studies evaluating the relationship between international trade and the rise and fall of industries.

Wacziarg is a faculty research fellow at the National Bureau of Economic Research, a faculty fellow at the Stanford Center for International Development, and he was a national fellow at the Hoover Institution in 2002-2003. He grew up in India and France and has worked as a consultant to the World Bank. He received his undergraduate degree from the Institut d'Etudes Politiques de Paris, an MA from the University of Paris-Dauphine and a PhD in Economics from Harvard University.

Europe Center Research Affiliate
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