Society

FSI researchers work to understand continuity and change in societies as they confront their problems and opportunities. This includes the implications of migration and human trafficking. What happens to a society when young girls exit the sex trade? How do groups moving between locations impact societies, economies, self-identity and citizenship? What are the ethnic challenges faced by an increasingly diverse European Union? From a policy perspective, scholars also work to investigate the consequences of security-related measures for society and its values.

The Europe Center reflects much of FSI’s agenda of investigating societies, serving as a forum for experts to research the cultures, religions and people of Europe. The Center sponsors several seminars and lectures, as well as visiting scholars.

Societal research also addresses issues of demography and aging, such as the social and economic challenges of providing health care for an aging population. How do older adults make decisions, and what societal tools need to be in place to ensure the resulting decisions are well-informed? FSI regularly brings in international scholars to look at these issues. They discuss how adults care for their older parents in rural China as well as the economic aspects of aging populations in China and India.

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The Internet, Public Action, and Development

Communication/PoliSci 232, Spring Quarter, 3-5 units, Mondays 12:15-2:05

Larry Diamond and Vivek Srinivasan, instructors

Recent events in many parts of the world have raised interesting questions on the relationship between the Internet, democracy and the quest for a better life. The "cyberspace" has changed the way in which people can mobilize, debate and act while those in positions of power have used it to monitor, stifle and control. What makes this drama fascinating is that the cyberspace in itself is changing rapidly. Governments, corporations, peoples' movements and other forces are engaged in a battle to shape the cyberspace through technological innovations, laws and policies. This course seeks to explore such changes with a view to understanding what consequences they will have on public action, democracy and development.

This course is intended as a research seminar. The first part of the course will consist of lectures and discussion of readings, in order to set the theoretical and empirical framework for the research to be done. During the quarter, students will organize themselves into research teams to investigate a specific topic and provide a synthesis of relevant literatures and recent empirical findings or trends. Thus, the course offers broad scope for students to explore major issues in the field, such as the impact of Internet regulation on social development (especially health and education), the impact of social media on the quality of governance and on socioeconomic development, and the effect on society of differing types of defamation laws that protect or fail to protect anonymous speech.

The final few sessions of the course will be student-led, as the research teams present their work and open their presentations for discussion. Students will also submit a final written paper. The aim is not only to expose students to recent research on the Internet, development, and public action, but also to provide an interesting space for collaboration among students from different disciplines, and a great learning experience for the facilitators as well.

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On February 25 and 26, the Center on Democracy, Development, and the Rule of Law at Stanford University, in partnership with the Canadian Department of Foreign Affairs and International Trade, hosted a symposium titled, "Addressing the Accountability Gap in Statebuilding: The Case of Afghanistan." This event brought together leading experts, government officials, diplomats, practitioners, and academics to examine the problems of accountability, corruption, and election fraud that have risen in the wake of international statebuilding efforts in Afghanistan.

This unique forum allowed participants-both Afghan actors and members of the international community- who are heavily involved in building the institutions of the Afghan state, to participate in an honest exchange with their peers to surface challenges and generate recommendations to improve the practice of statebuilding moving forward. 

Panels were designed around the following questions: how to establish accountability in statebuilding, address electoral fraud evidenced in 2009 and 2010, manage powerbrokers who monopolize informal governance networks, coordinate anti-corruption efforts, and develop a political strategy for Afghanistan's future. What surfaced throughout these presentations and discussion was the issue of the "double compact" in Afghanistan-the failure of Afghans to self-govern and the failure of the international community to construct the institutions of a functioning state.

Participants proposed a new framework for governance that adopts a more participatory approach with the international community, Afghan government, and the public as equal partners in statebuilding endeavors. While challenges emerged there were also a number of key recommendations and strategies proposed  that can be pioneered by this influential group of policymakers and practitioners to ease the transition of responsibility to the Afghan government in 2014.  

The keynote address was delivered by former Afghan Minster of Finance and 2009 presidential candidate Dr. Ashraf Ghani, to an audience of more than 100 students and members of the local community. Dr. Ghani provided an honest and pragmatic account of the parallel and conflicting systems driven by the international community, which have given rise to systemic failure and corruption in Afghanistan.

"We are dealing with a crooked playing field," Dr. Ghani said recognizing that both the Afghan and international community were jointly responsible for this outcome. "When the field itself is crooked the nature of reform and change that we must initiate are very different. "

Dr. Ghani spent considerable time discussing the outsourcing of development to Washington-based firms that manage million dollar contracts and outsource technical work to foreign technocrats. This in Dr. Ghani's opinion does little to strengthen the internal capacities of the state, provide training opportunities to Afghans or allocate resources effectively to the general public.

Dr. Ghani stressed the importance of speaking honestly about these dysfunctions in the development system, "We need to start talking truth to each other if we are going to deal with this phenomenon. This double failure now is the genesis of the present."

Dr. Ghani channeled the sentiments of the Afghan public into the room by emphasizing the uncertainty that defines their lives. "Today it is the sense of injustice that drives conflict," Dr. Ghani said. "The level of conflict is driven by injustice. What Afghans yearn for is normalcy-the sense that the lives of our children and grandchildren will be better and what my generation endured will not be repeated."

The level of conflict is driven by injustice. What Afghans yearn for is normalcy-the sense that the lives of our children and grandchildren will be better and what my generation endured will  not be repeated.                    -Dr. Ashraf Ghani 

 Looking forward, Dr. Ghani advised that accountability mechanisms and feedback loops must be implemented to ensure that the necessary auditing and accounting mechanisms are in place to control corruption and ensure transparency. In addition, he called for one coherent system of rules that must be developed and agreed upon to govern development and prevent parallel systems from circumventing these rules. Finally, he advised adopting national programs that model the success of the National Solidarity Program, which reduced child mortality rates by 16%.

Dr. Ghani commented on the unique position that Afghanistan occupies at the crossroads of Asia, in the middle of "four huge hubs of change," China, India, Russia, and the Gulf. "A new regional era has to be created, if France and Germany could overcome hundreds of years of conflict we must create another sense of opportunity."

Dr. Ghani concluded by placing the hope and responsibility for Afghanistan's future in the hands of its younger generation, "We must talk about the generation compact in Afghanistan, our sons and daughters-both literal and figurative-are the source of growth and the source of dynamism...The women of Afghanistan, the youth of Afghanistan, and the poor of Afghanistan are the three numerical majorities that have been reduced to political and economic minority. Without investing in women, investing in youth and tackling the challenge of poverty, we are not going to have stability."

At the end of the two day symposium, participants collectively called for a comprehensive political strategy to facilitate the peaceful and legal transfer of power in 2014, which marks the end of President Karzai's term in office. With this important milestone in the near future, the international community remains committed to working with their Afghan counterparts to introduce political reform measures that will strengthen accountability mechanisms between the Afghan state and society. 

As Dr. Ghani eloquently stated at the end of his presentation, "We have to have an agenda of the future, we must engage in writing the history of the future."

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Over the course of three short months, popular uprisings have toppled regimes in Tunisia and Egypt, sparked a civil war in Libya and created unrest in other parts of the Middle East. They also have raised a question in many people's minds: Are all authoritarian regimes now threatened by this new democratic wave? In particular, is China, a rising superpower, vulnerable to these forces?  

The Communist government in Beijing is clearly worried. It has limited news coverage of the recent uprisings and has clamped down on democratic activists and foreign reporters, acting pre-emptively against anonymous calls on the Internet for China to have its own "Jasmine Revolution." A recent front-page editorial in the Beijing Daily, an organ of the city's party committee, declared that most people in the Middle East were unhappy with the protests in their countries, which were a "self-delusional ruckus" orchestrated by a small minority. For his part, President Hu Jintao has urged the strengthening of what has been dubbed the "Great Firewall"-the sophisticated apparatus of censorship and surveillance that the regime uses to control access to the Internet.

No social scientist or intelligence analyst predicted the specific timing or spread of the Arab uprising-the fact that it would start in Tunisia, of all places, that it would be triggered by an event like the self-immolation of a vegetable seller, or that protests would force the mighty Egyptian army to abandon Hosni Mubarak. Over the past generation, Arab societies have appeared stolidly stable. Why they suddenly exploded in 2011 is something that can be understood only in retrospect, if at all.

But this doesn't mean that we can't think about social revolutions in a more structured way. Even unpredictable things take place in a certain context, and the present-day situations of China and the Middle East are radically different. Most of the evidence suggests that China is pretty safe from the democratic wave sweeping other parts of the world-at least for now.

Perhaps the most relevant thinker for understanding the Middle East today and China tomorrow is the late Samuel Huntington-not the Huntington of "The Clash of Civilizations," who argued that there were fundamental incompatibilities between Islam and democracy, but the Huntington whose classic book "Political Order in Changing Societies," first published in 1968, laid out his theory of the development "gap."

Observing the high levels of political instability plaguing countries in the developing world during the 1950s and '60s, Mr. Huntington noted that increasing levels of economic and social development often led to coups, revolutions and military takeovers. This could be explained, he argued, by a gap between the newly mobilized, educated and economically empowered people and their existing political system-that is, between their hopes for political participation and institutions that gave them little or no voice. Attacks against the existing political order, he noted, are seldom driven by the poorest of the poor in such a society; they tend to be led, instead, by rising middle classes who are frustrated by the lack of political and economic opportunity.

All of these observations would seem to apply to Tunisia and Egypt. Both countries have made substantial social progress in recent decades. The Human Development Indices compiled by the United Nations (a composite measure of health, education and income) increased by 28% for Egypt and 30% for Tunisia between 1990 and 2010. The number of people going to school has grown substantially; Tunisia especially has produced large numbers of college graduates. And indeed, the protests in Tunisia and Egypt were led in the first instance by educated, tech-savvy middle-class young people, who expressed to anyone who would listen their frustrations with societies in which they were not allowed to express their views, hold leaders accountable for corruption and incompetence, or get a job without political connections.

Mr. Huntington stressed the destabilizing power of new social groups seeking political participation. People used to be mobilized by newspapers and radio; today they are spurred to action by cell phones, Facebook and Twitter, which allow them to share their grievances about the existing system and to learn about the possibilities of the larger world. This change in the Middle East has been incredibly rapid, and it has trumped, for now, old verities about the supposed passivity of Arab culture and the resistance of Islam to modernization.

But do these remarkable developments tell us anything about the possibility for future instability in China?

It is certainly true that the dry tinder of social discontent is just as present in China as in the Middle East. The incident that triggered the Tunisian uprising was the self-immolation of Mohamed Bouazizi, who had his vegetable cart repeatedly confiscated by the authorities and who was slapped and insulted by the police when he went to complain. This issue dogs all regimes that have neither the rule of law nor public accountability: The authorities routinely fail to respect the dignity of ordinary citizens and run roughshod over their rights. There is no culture in which this sort of behavior is not strongly resented.

This is a huge problem throughout China. A recent report from Jiao Tong University found that there were 72 "major" incidents of social unrest in China in 2010, up 20% over the previous year. Most outside observers would argue that this understates the real number of cases by perhaps a couple of orders of magnitude. Such incidents are hard to count because they often occur in rural areas where reporting is strictly controlled by the Chinese authorities.

The most typical case of outraged dignity in contemporary China is a local government that works in collusion with a private developer to take away the land of peasants or poor workers to make way for a glittery new project, or a company that dumps pollutants into a town's water supply and gets away with it because the local party boss stands to profit personally. Though corruption in China does not reach the predatory levels of certain African or Middle Eastern countries, it is nonetheless pervasive. People see and resent the privileged lives of the nation's elite and their children. The movie "Avatar" was a big hit in China in part because so many ordinary Chinese identified with the indigenous people it portrayed whose land was being stolen by a giant, faceless corporation.

There is, moreover, a huge and growing problem of inequality in China. The gains from China's remarkable growth have gone disproportionately to the country's coastal regions, leaving many rural areas far behind. China's Gini index-a standard measure of income inequality across a society-has increased to almost Latin American levels over the past generation. By comparison, Egypt and Tunisia have a much more equal income distribution.

According to Mr. Huntington, however, revolutions are made not by the poor but by upwardly mobile middle-class people who find their aspirations stymied, and there are lots of them in China. Depending on how you define it, China's middle class may outnumber the whole population of the United States. Like the middle-class people of Tunisia and Egypt, those in China have no opportunities for political participation. But unlike their Middle Eastern counterparts, they have benefited from a dramatically improving economy and a government that has focused like a laser beam on creating employment for exactly this group.

To the extent that we can gauge Chinese public opinion through surveys like Asia Barometer, a very large majority of Chinese feel that their lives have gotten better economically in recent years. A majority of Chinese also believe that democracy is the best form of government, but in a curious twist, they think that China is already democratic and profess to be satisfied with this state of affairs. This translates into a relatively low degree of support for any short-term transition to genuine liberal democracy.

Indeed, there is some reason to believe that the middle class in China may fear multiparty democracy in the short run, because it would unleash huge demands for redistribution precisely from those who have been left behind. Prosperous Chinese see the recent populist polarization of politics in Thailand as a warning of what democracy may bring.

The fact is that authoritarianism in China is of a far higher quality than in the Middle East. Though not formally accountable to its people through elections, the Chinese government keeps careful track of popular discontents and often responds through appeasement rather than repression. Beijing is forthright, for example, in acknowledging the country's growing income disparities and for the past few years has sought to mitigate the problem by shifting new investments to the poor interior of the country. When flagrant cases of corruption or abuse appear, like melamine-tainted baby formula or the shoddy school construction revealed by the Sichuan earthquake, the government holds local officials brutally accountable-sometimes by executing them.

Another notable feature of Chinese government is self-enforced leadership turnover. Arab leaders like Tunisia's Zine al-Abidine Ben Ali, Egypt's Mr. Mubarak and Libya's Col. Moammar Gadhafi never knew when to quit, hanging on 23, 30 and 41 years, respectively. Since Mao, the Chinese leadership has rigidly adhered to terms of about a decade. Mr. Hu, the current president, is scheduled to step down in 2012, when he is likely to be replaced by Vice President Xi Jinping. Leadership turnover means that there is more policy innovation, in sharp contrast to countries like Tunisia and Egypt, which have been stuck for decades in the rut of crony capitalism.

The Chinese government is also more clever and ruthless in its approach to repression. Sensing a clear threat, the authorities never let Western social media spread in the first place. Facebook and Twitter are banned, and content on websites and on China-based social media is screened by an army of censors. It is possible, of course, for word of government misdeeds to get out in the time between its first posting by a micro-blogger and its removal by a censor, but this cat-and-mouse game makes it hard for a unified social space to emerge.

A final critical way in which China's situation differs from that of the Middle East lies in the nature of its military. The fate of authoritarian regimes facing popular protests ultimately depends on the cohesiveness and loyalty of its military, police and intelligence organizations. The Tunisian army failed to back Mr. Ben Ali early on; after some waffling, the Egyptian army decided it would not fire on protesters and pushed Mr. Mubarak out of power.

In China, the People's Liberation Army is a huge and increasingly autonomous organization with strong economic interests that give it a stake in the status quo. As in the Tiananmen uprising in 1989, it has plenty of loyal units around the country that it could bring into Beijing or Shanghai, and they would not hesitate to fire on demonstrators. The PLA also regards itself as the custodian of Chinese nationalism. It has developed an alternative narrative of 20th-century history that places itself at the center of events like the defeat of Japan in the Pacific war and the rise of a modern China. It is very unlikely that the PLA would switch sides and support a democratic uprising.

The bottom line is that China will not catch the Middle Eastern contagion anytime soon. But it could easily face problems down the road. China has not experienced a major recession or economic setback since it set out on its course of economic reform in 1978. If the country's current property bubble bursts and tens of millions of people are thrown out of work, the government's legitimacy, which rests on its management of the economy, would be seriously undermined.

Moreover, Mr. Huntington's scenario of rising but unfulfilled expectations among the middle class may still play out. Though there is a labor shortage among low-skill workers in China today, there is a glut of the college educated. Every year into the future, China will graduate more than seven million people from its universities, up from fewer than a million in 1998, and many of them are struggling to find work suitable to their self-perceived status. Several million unemployed college graduates are far more dangerous to a modernizing regime than hundreds of millions of poor peasants.

There is also what the Chinese themselves call the "bad emperor" problem. China's historical achievement over the centuries has been the creation of high-quality centralized bureaucratic government. When authoritarian rulers are competent and reasonably responsible, things can go very well. Indeed, such decision-making is often more efficient than in a democracy. But there is no guarantee that the system will always produce good rulers, and in the absence of the rule of law and electoral checks on executive power, there is no way to get rid of a bad emperor. The last bad emperor, commonly (if quietly) acknowledged as such, was Mao. We can't know what future tyrant, or corrupt kleptocrat, may be waiting in the wings in China's future.

The truth is that, much as we might theorize about the causes of social revolution, human societies are far too complex, and change too rapidly, for any simple theory to provide a reliable guide. Any number of observers dismissed the power of the "Arab street" to bring about political change, based on their deep knowledge of the Middle East, and they were right every year-up until 2011.

The hardest thing for any political observer to predict is the moral element. All social revolutions are driven by intense anger over injured dignity, an anger that is sometimes crystallized by a single incident or image that mobilizes previously disorganized individuals and binds them into a community. We can quote statistics on education or job growth, or dig into our knowledge of a society's history and culture, and yet completely miss the way that social consciousness is swiftly evolving through a myriad of text messages, shared videos or simple conversations.

The central moral imponderable with regard to China is the middle class, which up to now has seemed content to trade political freedom for rising incomes and stability. But at some point this trade-off is likely to fail; the regime will find itself unable to deliver the goods, or the insult to the dignity of the Chinese people will become too great to tolerate. We shouldn't pretend that we can predict when this tipping point will occur, but its eventual arrival, as Samuel Huntington might have suggested, is bound up with the very logic of modernization itself.

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Shorenstein APARC
Stanford University
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(650) 725-2375 (650) 723-6530
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2011 Lee Kong Chian NUS-Stanford Distinguished Fellow on Southeast Asia
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Huang Jianli is an associate professor in the Department History at the National University of Singapore and a research associate at the university's East Asian Institute.

His first field of research interest is on the history of student political activism and local governance in Republican China from the 1910s to 1940s. His second area of study is on the postwar Chinese community in Singapore, especially its relationship vis-à-vis China and the larger Chinese diaspora. He has published a monograph on The Politics of Depoliticization in Republican China: Guomindang Policy towards Student Political Activism, 1927-1949 (1996, second edition 1999). A Chinese-language version of this monograph has just been published by the Commercial Press of Beijing in 2010. He has also co-authored a book on The Scripting of a National History: Singapore and Its Pasts (2008). In terms of edited volumes, he has co-edited Power and Identity in the Chinese World Order (2003) and Macro Perspectives and New Directions in the Studies of Chinese Overseas (2002).

He has articles in journals such as Modern Asian Studies, Journal of Oriental Studies, East Asian History, Journal of Southeast Asian Studies, South East Asian Research, Journal of the Malaysian Branch of the Royal Asiatic Society, Journal of Chinese Overseas, International Journal of Diasporic Chinese Studies and Frontiers of History in China. Some recent journal articles include "Umbilical Ties: The Framing of Overseas Chinese as the Mother of Revolution" (forthcoming, 2011), "Portable Histories in Mobile City Singapore: The (Lack)lustre of Admiral Zheng He" (2009), "Chinese Diasporic Culture and National Identity: The Taming of the Tiger Balm Gardens in Singapore" (2007), "Positioning the Student Political Activism of Singapore: Articulation, Contestation and Omission" (2006), "Entanglement of Business and Politics in the Chinese Diaspora: Interrogating the Wartime Patriotism of Aw Boon Haw" (2006) and "History and the Imaginaries of Big Singapore: Positioning the Sun Yat Sen Nanyang Memorial Hall" (2004).

His email contact is hishjl@nus.edu.sg and curriculum vitae is available at http://profile.nus.edu.sg/fass/hishjl

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Dr. Farrell earned a Ph.D. in Government from Georgetown University in 2000. He also holds a B.A. and M.A. in Politics from University College Dublin. Previously, he served as Assistant Professor at the University of Toronto, and was a senior research fellow at the Max Planck Institute on Common Goods in Bonn, Germany. He has taught courses on the political economy of European integration, the politics of the Internet, and the comparative political economy of Europe at the University of Toronto and Georgetown University.

Dr. Farrell's publications include: "Constructing the International Foundations of E-Commerce: The EU-US Safe Harbor Agreement," in International Organization, 57,2 (2003); "Trust, Distrust, and Power," in Distrust, ed. Russell Hardin (Russell Sage Foundation, forthcoming); and "Trust and Political Economy: Comparing the Effects of Institutions on Inter-Firm Cooperation," in Comparative Political Studies (forthcoming). Dr. Farrell is a member of the American Political Science Association, the International Society for the New Institutional Economics, the International Studies Association, and the European Union Studies Association

Graham Stuart Lounge

Henry Farrell Associate Professor of Political Science and International Affairs Speaker George Washington University
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Mohammad H. Fadel joined the Faculty of Law in January 2006. He received his B.A. in Government and Foreign Affairs (1988), a Ph.D. in Near Eastern Languages and Civilizations at the University of Chicago (1995) and his J.D. from the University of Virginia (1999). While at the University of Virginia School of Law, Professor Fadel was a John M. Olin Law and Economics Scholar and Articles Development Editor of the Virginia Law Review.

Prior to law school, Professor Fadel completed his Ph.D in Chicago, where he wrote his dissertation on legal process in medieval Islamic law. Professor Fadel was admitted to the Bar of New York in 2000 and practiced law with the firm of Sullivan & Cromwell LLP in New York, New York, where he worked on a wide variety of corporate finance transactions and securities-related regulatory investigations. In addition, Professor Fadel served as a law clerk to the Honorable Paul V. Niemeyer of the United States Court of Appeals for the 4th Circuit and the Honorable Anthony A. Alaimo of the United States District Court for the Southern District of Georgia. Professor Fadel has published numerous articles in Islamic legal history.

Graham Stuart Lounge

Mohammad Fadel Professor of Law Speaker University of Toronto
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Ruth Grant is Professor of Political Science and Philosophy and Senior Fellow in the Kenan Institute for Ethics at Duke University. She specializes in political theory with a particular interest in early modern philosophy and political ethics. She is the author of John Locke's Liberalism and Hypocrisy and Integrity: Machiavelli, Rousseau and the Ethics of Politics. Her articles have appeared in a variety of journals with audiences in several fields, including political science, medicine, law, education, economics, and philosophy. She has received fellowship awards from the National Endowment for the Humanities, the American Council of Learned Societies, and the National Humanities Center. She earned a bachelor's degree in political science and a doctorate degree in political science from the University of Chicago. She is currently working on a project on ethics and incentives and leading a collaborative project exploring goodness.

Graham Stuart Lounge

Ruth Grant Senior Fellow, Kenan Institute for Ethics Speaker Duke University
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Go out there and change the world.
- Tim Draper, Draper Fisher Jurvetson

"Whatever the world looks like now, it will change," said Tim Draper, founder and managing director of Draper Fisher Jurvetson (DFJ), during the keynote session at the March 1 Entrepreneurship in the Global Marketplace seminar, organized by the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) with sponsorship from Alibaba.com, the first in a series of seminars by the Schwarzenegger Emerging Entrepreneur Initiative. Concluding his remarks, Draper urged the overflow audience: "Go out there and change the world."

Draper and the nine other participants shared different perspectives on entrepreneurship, but a key message underlying all of the presentations was that the world is a dynamic, rapidly changing place where entrepreneurs can succeed by anticipating and responding to global trends. In doing so, many suggested, it is also possible to change the world—for the better. The participants all concurred that China is one of the key places in the world—now and in the future—to do business, representing a challenging but a vast frontier of opportunity.

Global demographic trends are a major factor that venture capitalists consider when making investments. Addressing the worldwide aging phenomenon, which is particularly acute in Asia-Pacific countries such as Japan and China, Draper explained how DFJ has invested in a company that manufactures videogame-like devices designed to improve cognition, noting the growing market for such devices that help keep cognitive health apace with a longer life span. Hans Tung, a partner with the Shanghai-based venture capital firm Qiming Ventures, described how his firm is tracking the large segment of China's population living in small cities away from commercial hubs. These members of the populace, who prefer to shop online where they can find a wider selection of goods than in their local shopping malls, are quickly becoming a driving force in China's e-commerce market.

It is China's e-commerce and other Internet firms—fueled by the explosion of Internet users—that carry increasingly significant weight in China's domestic and the global economy. 
Duncan Clark, a visiting scholar at SPRIE, presented related findings from SPRIE's China 2.0: The Rise of a Digital Superpower research initiative, which is led by Marguerite Gong Hancock, associate director of SPRIE. China 2.0, explores the conditions generating such rapid growth of the Internet, and investigates questions surrounding the possible global implications of it. Clark noted that as China's three largest Internet firms—search engine Baidu, instant-messaging service Tencent, and e-commerce portal Taobao—expand, domestic competition will not only intensify, but move further into the global economic arena. The "big three" firms are already ranked among the top 20 Internet sites in the world based on site traffic. According to Clark, the key question in the future for U.S. companies will be how to partner with Chinese companies in order to insure their own growth.

Riding the global wave of innovation and entrepreneurship, Jonathan Ross Shriftman, co-founder of Solé Bicycle Company, and Ryder Fyrwald, vice president of global operations at the Kairos Society, have discovered opportunities to effect positive change despite a global climate of intense economic competition. Shriftman, a recent University of Southern California (USC) graduate, described the lessons that he has learned through his company's quest to manufacture low-cost, quality fixed-gear bicycles that provide a stylish, alternate form of transportation. Despite funding and language challenges, Shriftman and his partner succeeded in connecting with a manufacturer in China through Alibaba.com, and have sold nearly 800 bicycles to date. Fyrwald, who is still an undergraduate at USC's Marshall School of Business, explained the philosophy behind the Kairos Society, an international network of student entrepreneurs who seek to solve world issues through entrepreneurship and innovation. He cited the example of WaterWalla, a company that has developed, among other technologies, a low-cost water purification device for use by urban slum dwellers.

From the perspective of seasoned venture capitalists Draper and Tung and emerging entrepreneurs Shriftman and Fyrwald, the message at Entrepreneurship in the Global Marketplace was clear: the way to succeed in a rapidly changing world is to react promptly—and creatively—to global trends. And, as Shriftman suggested, it is possible to "do well by doing good," and change the world in a positive way.

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Ryder Fyrwald (left), vice president of global operations at the Kairos Society, and Jonathan Ross Shriftman, co-founder of Sole Bicycle Company. | Courtesy Alibaba.com
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Alexis Medina is the Associate Director for Research Programs at SCCEI, and also Associate Director of the Rural Education Action Program (REAP). At SCCEI, she helps to connect China-oriented faculty and graduate students with university resources and with one another, as well as to navigate administrative bureaucracies on both sides of the Pacific. She has been directly involved in building research networks and fostering connections between the US and China since 2006, and has extensive experience in international program management, including leading survey teams in rural China, overseeing the design and development of field projects, and coordinating data collection efforts and analysis. Her academic expertise lies at the intersection of health and education, and she has co-authored dozens of academic publications in this area. Alexis speaks fluent Mandarin, and has previously held research positions at the Harvard T.H. Chan School of Public Health, and Shandong University in China.

Associate Director, Research Programs, Stanford Center on China's Economy and Institutions
Associate Director, Rural Education Action Program
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