Stanford experts offer policy proposals, insights on US-Asia relations
Stanford scholars are encouraging the new administration to consider steps to alleviate the uncertainty and anxiety felt by countries in East Asia about U.S. intentions toward the region.
President Donald Trump’s anti-China rhetoric during his campaign and his recent withdrawal of the U.S. from the Trans-Pacific Partnership have contributed to the unease in the region, which is drifting in ways that are unfavorable for American interests, they said.
Stanford’s Walter H. Shorenstein Asia-Pacific Research Center (APARC) recently published a 27-page report with recommendations on topics of trade and defense that would improve relations between the U.S. and Asian countries. The report, co-authored by eight Stanford scholars, is aimed to help shape U.S. policies in the region.
“The advent of any new administration provides an opportunity to reassess policy approaches,” wrote Gi-Wook Shin, director of the Shorenstein center. “A new mandate exists, and it is our hope that that mandate will be used wisely by the new administration.”
Trade and defense
The biggest trade concern for experts in the region is President Trump’s decision to withdraw the U.S. from the Trans-Pacific Partnership (TPP) and his intention to focus on bilateral agreements instead of multinational pacts.
The agreement, which bound 12 countries in the region by a set of international trade and investment rules, had problems, Stanford scholars said. For example, some have criticized the treaty for not requiring full compliance with international labor standards for all the participating countries. Also, the rules of origin, which were supposed to give preferential treatment to countries in the TPP, were deemed to be weak by many, allowing goods produced outside the TPP to receive benefits.
But it would not be wise or efficient for the U.S. to start negotiations from scratch in the region because the U.S. withdrawal from the agreement, which was touted as a model for the 21st century, already has hurt its credibility with other Asian countries, said Takeo Hoshi, director of the Japan Program at the Shorenstein Center. In addition, Asian countries view the idea of bilateral agreements as an attempt to force trade deals on them that disproportionately benefit the U.S., he said.
“The TPP was not perfect and many problems remain, but they are not removed by abandoning the TPP,” Hoshi wrote in the report. “Completely abandoning the TPP could hurt not only the U.S. economy but also erode U.S. leadership in Asia.”
Hoshi said the U.S. should rely on aspects of TPP that are consistent with the current U.S. trade policy when creating new bilateral agreements, while maintaining and improving existing free trade agreements with other Asian countries.
Another immediate concern for scholars is the maintenance of security and stability in the region.
“The region is unsettled because of uncertainty about us,” said Thomas Fingar, a Shorenstein APARC fellow. “The U.S. has long served as the guarantor of prosperity and security in the region but Asians are no longer convinced that we have the will or ability to do so. This has real consequences … It’s not simply because they are already beginning to act as if we intend to play a less active or positive role.”
If China’s national power and economy continue to expand, it will become increasingly difficult to maintain stability in the region if the U.S. does not continue to play a constructive role. Possible dangers include escalation of tensions between China and the U.S. or its allies following accidents or tactical encounters near areas over which China claims sovereignty.
In the report, scholars recommend a comprehensive review of security in the region to make sure military plans are in place that prioritize management of a possible collapse of North Korea or a sudden military strike coming from the country. Other priorities should include peaceful resolution of China-Taiwan differences and ensuring military access in the South China Sea and East China Sea, wrote Karl Eikenberry, director of the U.S.-Asia Security Initiative at the Shorenstein Center.
“The United States also should engage in a more long-range, exploratory strategic dialogue, first with allies and partners, and then with Beijing, to identify potential areas of mutual interest that can help prevent the unintended escalation of conflicts and reduce already dangerous levels of misperception and mistrust on both sides,” Eikenberry wrote.
China is key
Maintaining a peaceful, productive relationship with China should be of the utmost importance for the U.S., according to the Stanford scholars.
“Managing America’s multifaceted relationship with China is arguably the most consequential foreign policy challenge facing the new administration,” Fingar said.
Although President Trump’s anti-China rhetoric during his campaign made Asian countries anxious about the future, China has been criticized by many American leaders before. Ten previous U.S. presidents were critical of China during their campaigns, but once they assumed office, their tone changed and they adopted a more pragmatic view of U.S. interests in the area, Fingar wrote.
However, while in the past China’s political moves have been predictable for the most part, now that its economy is slowing, the country is increasingly relying on social control and nationalism to reinforce regime legitimacy. This makes China less predictable, according to Fingar.
But the scholars say that there are several opportunities to approach the relationship with China in a way that is beneficial for the U.S. and the rest of the region.
One such opportunity would be for the U.S. to declare its willingness to join China’s newly created Asian Infrastructure Investment Bank, which was formed in early 2016 to support construction projects in the Asia-Pacific region. This would be an “any outcome we win” opportunity that would showcase the U.S. desire to cooperate with China and help establish the region’s confidence in the U.S., Fingar said.
The new administration should also consider pushing for a quick completion of a Bilateral Investment Treaty with China – something that two previous U.S. administrations were not able to achieve. Creating this agreement would help protect things that are important to the U.S. businesses and reassure the willingness of the U.S. to deepen its relationship with China, according to Fingar.
“In my view, how we’re going to establish or reestablish relations with China is key,” Shin said. “Will there be more tension? That’s really important. This affects not only the U.S., but also our allies in the region.”
Alex Shashkevich is a writer for the Stanford News Service.
Ian Johnson, longtime foreign correspondent, to receive Shorenstein Journalism Award
- Read more about Ian Johnson, longtime foreign correspondent, to receive Shorenstein Journalism Award
Ian Johnson, a veteran journalist with a focus on Chinese society, religion and history, is the 2016 recipient of the Shorenstein Journalism Award. The award, given annually by the Walter H. Shorenstein Asia-Pacific Research Center, is conferred to a journalist who produces outstanding reporting on Asia and has contributed to greater understanding of the complexities of Asia. He will deliver a keynote speech and participate in a panel discussion on May 1, 2017, at Stanford.
“Ian Johnson is one of those rare writers who has not only watched China’s evolution over the long haul, but who is also deeply steeped in the culture and politic of both Europe and the United States as well,” said Orville Schell, the Arthur Ross Director at the Asia Society of New York’s Center on U.S.-China Relations and jury member for the award. “This cross-cultural grounding has imbued his work on China with a humanistic core that, because it is always implicit rather than explicit, is all the more persuasive.”
Ian Buruma, the Paul W. Williams Professor of Democracy, Human Rights, and Journalism at Bard College and jury member for the award, added further praise, “Ian Johnson is one of the finest journalists in the English language. He writes about China with extraordinary insight, deep historical knowledge and a critical spirit tempered by rare human sympathy. His work on China is further enriched by wider interests, such as the problems of Islamist extremism in the West, specifically Germany, where he lives when he is not writing from China.”
The Shorenstein award, now in its 15th year, originally in partnership with the Shorenstein Center on Press, Politics and Public Policy at Harvard, was created to honor American journalists who through their writing have helped Americans better understand Asia. In 2011, the award was broadened to encompass Asian journalists who pave the way for press freedom, and have aided in the growth of mutual understanding across the Pacific. Recent recipients of the award include Yoichi Funabashi, former editor-in-chief of the Asahi Shimbun; Jacob Schlesinger of the Wall Street Journal; and Aung Zaw, founder of the Irrawaddy, a Burmese publication.
Johnson has spent over half of the past 30 years in the Greater China region, first as a student in Beijing from 1984-85, and then in Taipei from 1986-88. He later worked as a newspaper correspondent in China, from 1994-96 with Baltimore's The Sun, and then from 1997-2001 with the Wall Street Journal, covering macroeconomics, China’s social issues and World Trade Organization accession.
Johnson returned to China in 2009, where he now lives and writes for the New York Times and freelances for the New York Review of Books, the New Yorker and National Geographic. He also teaches and leads a fellowship program at the Beijing Center for Chinese Studies.
Johnson has also worked in Germany, serving as the Wall Street Journal’s Germany bureau chief and senior writer. Early on in his career, he covered the fall of the Berlin Wall and German unification, and later returned to head coverage on areas including the introduction of the euro and Islamist terrorism.
Johnson has been twice nominated for the Pulitzer Prize and won in 2001 for his coverage of the Chinese government’s suppression of the Falun Gong spiritual movement and its implications of that campaign for the future. He is also the author of two books, Wild Grass (Pantheon, 2004) which examines China’s civil society and grassroots protest, and A Mosque in Munich (Houghton Mifflin Harcourt, 2010). His next book, The Souls of China: The Return of Religion after Mao (Pantheon, April 2017) explores the resurgence of religion and value systems in China.
Additional details about the panel discussion and the award are listed below.
About the Panel Discussion and Award Ceremony
A keynote speech will be delivered by Shorenstein Journalism Award winner Ian Johnson, followed by a panel discussion with Orville Schell, the Arthur Ross Director at the Asia Society of New York’s Center on U.S.-China Relations, and Xueguang Zhou, professor of sociology at Stanford; moderated by Daniel C. Sneider, associate director for research at Shorenstein APARC.
May 1, 2017, from 12:00 – 1:30 p.m. (PDT)
Bechtel Conference Center, Encina Hall, 616 Serra Street, Stanford, CA 94305
The keynote speech and panel discussion are open to the public. The award ceremony will take place in the evening for a private audience.
To RSVP for the panel discussion, please visit this page.
About the Shorenstein Journalism Award
The Shorenstein Journalism Award honors a journalist not only for excellence in their field of reporting on Asia, but also for their promotion of a free, vibrant media and for the future of relations between Asia and the United States. Originally created to identify American and Western journalists for their work in and on Asia, the award now also recognizes Asian journalists who have contributed significantly to the development of independent media in Asia. The award is presented annually and includes a prize of $10,000.
The award is named after Walter H. Shorenstein, the philanthropist, activist and businessman who endowed two institutions that are focused respectively on Asia and the press - the Walter H. Shorenstein Asia-Pacific Research Center at Stanford and the Joan Shorenstein Center on Press, Politics and Public Policy in the Kennedy School of Government at Harvard.
Past recipients of the award include: Yoichi Funabashi, formerly of the Asahi Shimbun (2015); Jacob Schlesinger of the Wall Street Journal (2014), Aung Zaw of the Irrawaddy (2013), Barbara Demick of the Los Angeles Times (2012), Caixin Media of China (2011), Barbara Crossette of the New York Times (2010), Seth Mydans of the New York Times (2009), Ian Buruma (2008), John Pomfret of the Washington Post (2007), Melinda Liu of Newsweek (2006), Nayan Chanda of the Far Eastern Economic Review (2005), Don Oberdofer of the Washington Post (2004), Orville Schell (2003), and Stanley Karnow (2002).
A jury selects the award winner. The 2016 jury comprised of:
Ian Buruma, the Paul W. Williams Professor of Democracy, Human Rights, and Journalism at Bard College, is a noted Asia expert who frequently contributes to publications including the New York Times, the New York Review of Books and the New Yorker. He is a recipient of the Shorenstein Journalism Award and the international Erasmus Prize (both in 2008).
Nayan Chanda is the director of publications and the editor of YaleGlobal Online Magazine at the Yale Center for the Study of Globalization. For nearly thirty years, Chanda was at the Hong Kong-based magazine, Far Eastern Economic Review. He writes the ‘Bound Together’ column in India’s Business World and is the author of Bound Together: How Traders, Preachers, Adventurers and Warrior Shaped Globalization. Chanda received the Shorenstein Journalism Award in 2005.
Susan Chira is a senior correspondent and editor on gender issues and former deputy executive editor and foreign editor at the New York Times. Chira has extensive experience in Asia, including serving as Japan correspondent for the Times in the 1980s. During her tenure as foreign editor, the Times won the Pulitzer Prize four times for international reporting on Afghanistan, Russia, Africa and China.
Donald K. Emmerson is a well-respected Indonesia scholar and director of Shorenstein APARC’s Southeast Asia Program and a research fellow for the National Asia Research Program. Frequently cited in international media, Emmerson also contributes to leading publications, such as Asia Times and International Business Times.
Orville Schell is the Arthur Ross Director at the Asia Society of New York’s Center on U.S.-China Relations and former jury member for the Pulitzer Prize for international reporting. Schell has written extensively on China and was awarded the 1997 George Peabody Award for producing the groundbreaking documentary The Gate of Heavenly Peace. He received the Shorenstein Journalism Award in 2003.
Daniel C. Sneider is the associate director for research at Shorenstein APARC, writing on Asian security issues, wartime historical memory and U.S policy in Asia. He also frequently contributes to publications such as Foreign Policy, Asia Policy and Slate. Sneider had three decades of experience as a foreign correspondent serving in India, Japan and Russia for the Christian Science Monitor and as the national and foreign editor of the San Jose Mercury News and a syndicated columnist on foreign affairs for Knight-Ridder.
For more information about the award, please visit this page.
President Trump's Asia Inbox
Scholars at Stanford's Shorenstein Asia-Pacific Research Center in the Freeman Spogli Institute for International Studies assess the strategic situation in East Asia to be unsettled, unstable, and drifting in ways unfavorable for American interests. These developments are worrisome to countries in the region, most of which want the United States to reduce uncertainty about American intentions by taking early and effective steps to clarify and solidify U.S. engagement. In the absence of such steps, they will seek to reduce uncertainty and protect their own interests in ways that reduce U.S. influence and ability to shape regional institutions. This 23-page report entitled “President Trump’s Asia Inbox” suggests specific steps to achieve American economic and security interests.
Donald Trump's Trade Policy: Back to The Future
If you want to understand the trade and industrial policy that President Donald Trump is now going to pursue, simply jump into a DeLorean time machine with Marty McFly and go back to 1985. As the title of that iconic film, released that year, proclaimed – it is Back to the Future, Sneider writes.
Does Lean Improve Labor Standards? Management and Social Performance in the Nike Supply Chain
**Cancelled** President Valéry Giscard d'Estaing: The Future of Europe
**This event has been cancelled.**
This event is co-sponsored by: The France-Stanford Center for Interdisciplinary Studies, The Europe Center, The Hoover Institution, Stanford Global Studies, The French and Italian Department, Division of Literatures, Cultures, and Languages, and The Stanford Humanities Center.
Levinthal Hall, Stanford Humanities Center
424 Santa Teresa Street
Stanford
Christophe Crombez
Encina Hall
Stanford University
Stanford, CA 94305
Christophe Crombez is a political economist who specializes in European Union (EU) politics and business-government relations in Europe. His research focuses on EU institutions and their impact on policies, EU institutional reform, lobbying, party politics, and parliamentary government.
Crombez is Senior Research Scholar at The Europe Center at the Freeman Spogli Institute for International Studies at Stanford University (since 1999). He teaches Introduction to European Studies and The Future of the EU in Stanford’s International Relations Program, and is responsible for the Minor in European Studies and the Undergraduate Internship Program in Europe.
Furthermore, Crombez is Professor of Political Economy at the Faculty of Economics and Business at KU Leuven in Belgium (since 1994). His teaching responsibilities in Leuven include Political Business Strategy and Applied Game Theory. He is Vice-Chair for Research at the Department for Managerial Economics, Strategy and Innovation.
Crombez has also held visiting positions at the following universities and research institutes: the Istituto Italiano di Scienze Umane, in Florence, Italy, in Spring 2008; the Department of Political Science at the University of Florence, Italy, in Spring 2004; the Department of Political Science at the University of Michigan, in Winter 2003; the Kellogg Graduate School of Management at Northwestern University, Illinois, in Spring 1998; the Department of Political Science at the University of Illinois at Urbana-Champaign in Summer 1998; the European University Institute in Florence, Italy, in Spring 1997; the University of Antwerp, Belgium, in Spring 1996; and Leti University in St. Petersburg, Russia, in Fall 1995.
Crombez obtained a B.A. in Applied Economics, Finance, from KU Leuven in 1989, and a Ph.D. in Business, Political Economics, from Stanford University in 1994.
Peter Koudijs
Knight Management Center
Stanford University
655 Knight Way
Stanford, CA 94305-7298
Peter Koudijs is an Assistant Professor of Finance at the Stanford Graduate School of Business where he teaches History of Financial Crises in the MBA program. He joined the GSB in August 2011. Peter received a Bachelor’s degree, cum laude, in Economics from the University of Utrecht in the Netherlands. He earned a PhD degree, summa cum laude, in Economics at Universitat Pompeu Fabra in Spain in 2011. Peter has obtained various grants and fellowships from the European Union, the Economic History Association and different Dutch and Spanish scholarship programs.
Europe and the Global Economy
Although each nation in Europe retains its distinct cultural, social and political identity, the region as a whole is among the world’s most economically integrated zones. The open movement of goods, services, capital, people, and pollutants that we observe today was not, however, inevitable; instead, it was contested, challenged, and reversed at many points in the past.
Shorenstein APARC scholars explore Asia policy challenges facing next administration
- Read more about Shorenstein APARC scholars explore Asia policy challenges facing next administration
As a new U.S. administration assumes office next year, it will face numerous policy challenges in the Asia-Pacific, a region that accounts for nearly 60 percent of the world’s population and two-thirds of global output.
Despite tremendous gains over the past two decades, the Asia-Pacific region is now grappling with varied effects of globalization, chief among them, inequities of growth, migration and development and their implications for societies as some Asian economies slow alongside the United States and security challenges remain at the fore.
Seven scholars from Stanford’s Shorenstein Asia-Pacific Research Center (APARC) offered views on policy challenges in Asia and some possible directions for U.S.-Asia relations during the next administration.
View the scholars' commentary by scrolling down the page or click on the individual links below to jump to a certain topic.
Southeast Asia and the South China Sea
U.S.-China relations
By Thomas Fingar
Alarmist predictions about China’s rise and America’s decline mischaracterize and overstate tensions in the relationship. There is little likelihood that the next U.S. administration will depart from the “hedged engagement” policies pursued by the last eight U.S. administrations. America’s domestic problems cannot be solved by blaming China or any other country. Indeed, they can best be addressed through policies that have contributed to peace, stability and prosperity.
Strains in U.S.-China relations require attention, not radical shifts in policy. China is not an enemy and the United States does not wish to make it one. Nor will or should the next administration resist changes to the status quo if change can better the rules-based international order that has served both countries well. Washington’s objective will be to improve the liberal international system, not to contain or constrain China’s role in that system.
The United States and China have too much at stake to allow relations to become dangerously adversarial, although that is unlikely to happen. But this is not a reason to be sanguine. In the years ahead, managing the relationship will be difficult because key pillars of the relationship are changing. For decades, the strongest source of support for stability in U.S.-China relations has been the U.S. business community, but Chinese actions have alienated this key group and it is now more likely to press for changes than for stability. A second change is occurring in China. As growth slows, Chinese citizens are pressing their government to make additional reforms and respond to perceived challenges to China’s sovereignty.
The next U.S. administration is more likely to continue and adapt current policies toward China and Asia more broadly than to pursue a significantly different approach. Those hoping for or fearing radical changes in U.S. policy will be disappointed..
Thomas Fingar is a Shorenstein Distinguished Fellow and former chairman of the U.S. National Intelligence Council. He leads a research project on China and the World that explores China’s relations with other countries.
U.S.-Japan relations
By Daniel Sneider
Three consecutive terms held by the same party would certainly preserve the momentum behind the ‘pivot to Asia’ strategy of the last few years, especially on the security front. Still there are some dangers ahead. If Japan moves ahead to make a peace treaty with Russia, resolving the territorial issue and opening a flow of Japanese investment into Russia, that could be a source of tension. The new administration may also want to mend fences early with China, seeking cooperation on North Korea and avoiding tensions in Southeast Asia.
The big challenge, however, will be guiding the TPP through Congress. While there is a strong sentiment within policy circles in favor of rescuing the deal, perhaps through some kind of adjustment of the agreement, insiders believe that is highly unlikely. The Sanders-Warren wing of the Democratic party has been greatly strengthened by this election and they will be looking for any sign of retreat on TPP. Mrs. Clinton has an ambitious agenda of domestic policy initiatives – from college tuition and the minimum wage to immigration reform – on which she will need their support. One idea now circulating quietly in policy circles is to ‘save’ the TPP, especially its strategic importance, by separating off a bilateral Japan-U.S. Free Trade Agreement. Tokyo is said to be opposed to this but Washington may put pressure on for this option, leaving the door open to a full TPP down the road. .
Daniel Sneider is the associate director for research and a former foreign correspondent. He is the co-author of Divergent Memories: Opinion Leaders and the Asia-Pacific Wars (Stanford University Press, 2016) and is currently writing about U.S.-Japan security issues.
North Korea
By Kathleen Stephens
From an American foreign policy perspective, North Korea policy challenges will be inherited by the next president as “unfinished business,” unresolved despite a range of approaches spanning previous Republican and Democratic administrations. The first months in a new U.S. president’s term may create a small window to explore potential new openings. The new president should demonstrate at the outset that North Korea is high on the new administration’s priority list, with early, substantive exchanges with allies and key partners like China to affirm U.S. commitment to defense of its allies, a denuclearized Korean Peninsula and the vision agreed to at the Six-Party Talks in the September 2005 Joint Statement of Principles. Early messaging to Pyongyang is also key – clearly communicating the consequences of further testing or provocations, but at the same time signaling the readiness of the new administration to explore new diplomatic approaches. The appointment of a senior envoy, close to the president, could underscore the administration’s seriousness as well as help manage the difficult policy and political process in Washington itself.
2017 is a presidential election year in South Korea, and looks poised to be a particularly difficult one. This will influence Pyongyang’s calculus, as will the still-unknown impact of continued international sanctions. The challenges posed by North Korea have grown greater with time, but there are few new, untried options acceptable to any new administration in Washington. Nonetheless, the new administration must explore what is possible diplomatically and take further steps to defend and deter as necessary. .
Kathleen Stephens is the William J. Perry Distinguished Fellow and former U.S. ambassador to the Republic of Korea. She is currently writing and researching on U.S. diplomacy in Korea.
Southeast Asia and the South China Sea
By Donald K. Emmerson
A new U.S. administration will be inaugurated in January 2017. Unless it wishes to adapt to such outcomes, it should:
(1) renew its predecessor’s refusal to endorse any claim to sovereignty over all, most, or some of the South China Sea and/or its land features made by any of the six contending parties—Brunei, China, Malaysia, the Philippines, Taiwan, Vietnam—pending the validation of such a claim under international law.
(2) strongly encourage all countries, including the contenders, to endorse and implement the authoritative interpretation of the U.N. Convention on the Law of the Sea (UNCLOS) issued on July 12, 2016, by an UNCLOS-authorized court. Washington should also emphasize that it, too, will abide by the judgment, and will strive to ensure American ratification of UNCLOS.
(3) maintain its commitment to engage in publicly acknowledged freedom of navigation operations (FONOPs) in the South China Sea on a regular basis. Previous such FONOPs were conducted in October 2015 by the USS Lassen, in January 2016 by the USS Wilbur, in May 2016 by the USS Lawrence, and in October 2016 by the USS Decatur. The increasingly lengthy intervals between these trips, despite a defense official’s promise to conduct them twice every quarter, has encouraged doubts about precisely the commitment to freedom of navigation that they were meant to convey.
(4) announce what has hitherto been largely implicit: The FONOPs are not being done merely to brandish American naval prowess. Their purpose is to affirm a core geopolitical position, namely, that no single country, not the United States, nor China, nor anyone else, should exercise exclusive or exclusionary control over the South China Sea.
(5) brainstorm with Asian-Pacific and European counterparts a range of innovative ways of multilateralizing the South China Sea as a shared heritage of, and a resource for, its claimants and users alike. .
Donald K. Emmerson is a senior fellow emeritus and director of the Southeast Asia Program. He is currently editing a Stanford University Press book that examines China’s relations with Southeast Asia.
Global governance
By Phillip Y. Lipscy
Global economic activity is increasingly shifting toward Asia – most forecasts suggest the region will account for about half of the global economy by the midpoint of the 21st century. This shift is creating important incongruities within the global architecture of international organizations, such as the United Nations, International Monetary Fund and World Bank, which are a central element of the U.S.-based international order and remain heavily tilted toward the West in their formal structures, headquarter locations and personnel compositions. This status quo is a constant source of frustration for policymakers in the region, who seek greater voice consummate with their newfound international status.
The next U.S. administration should prioritize reinvigoration of the global architecture. One practical step is to move major international organizations toward multiple headquarter arrangements, which are now common in the private sector – this will mitigate the challenges of recruiting talented individuals willing to spend their careers in distant headquarters in the West. The United States should join the Asian Infrastructure Investment Bank, created by China, to tie the institution more closely into the existing architecture, contribute to its success and send a signal that Asian contributions to international governance are welcome. The Asian rebalance should be continued and deepened, with an emphasis on institution-building that reassures our Asian counterparts that the United States will remain a Pacific power. .
Philip Y. Lipscy is an assistant professor of political science and the Thomas Rohlen Center Fellow. He is the author of the forthcoming book Renegotiating the World Order: Institutional Change in International Relations (Cambridge University Press, 2017).
Population aging
By Karen Eggleston
China’s recent announcement of a universal two-child policy restored an important dimension of choice, but it will not fundamentally change the trajectory of a shrinking working-age population and burgeoning share of elderly. China’s population aged 60 and older is projected to grow from nearly 15 percent today to 33 percent in 2050, at which time China’s population aged 80 and older will be larger than the current population of France. This triumph of longevity in China and other Asian countries, left unaddressed, will strain the fiscal integrity of public and private pension systems, while urbanization, technological change and income inequality interact with population aging by threatening the sustainability and perceived fairness of conventional financing for many social programs.
Investment in human capital and innovation in social and economic institutions will be central to addressing the demographic realities ahead. The next administration needs to support those investments as well as help to strengthen public health systems and primary care to control chronic disease and prepare for the next infectious disease pandemic, many of which historically have risen in Asia. .
Karen Eggleston is a senior fellow and director of the Asia Health Policy Program. She is the editor of the recently published book Policy Challenges from Demographic Change in China and India (Brookings Institution Press/Shorenstein APARC, 2016).
Trade
By Yong Suk Lee
Anti-globalization sentiment has ballooned in the past two years, particularly in regions affected by the import competition from and outsourcing to Asia. However, some firms and workers have benefited from increasing trade openness. The U.S.-Korea Free Trade Agreement of 2012, for example, led to substantial growth in exports in the agricultural, automotive and pharmaceutical sectors. Yet, there are winners and losers from trade agreements. Using an economist’s hypothetical perspective, one would assume firms and workers in the losing industry move to the exporting sector and take advantage of the gains from trade. In reality, adjustment across industries and regions from such movements are slow. Put simply, a furniture worker in North Carolina who lost a job due to import competition cannot easily assume a new job in the booming high-tech industry in California. They would require high-income mobility and a different skill set.
Trade policy needs to focus on facilitating the transition of workers to different industries and better train students to prepare for potential mobility in the future. Trade policy will also be vital in determining how international commerce is shaped. As cross-border e-commerce increases, it will be in the interest of the United States to participate in and lead negotiations that determine future trade rules. The Trans-Pacific Partnership should not simply be abandoned. The next administration should educate both policymakers and the public about the effects of trade openness and the economic and strategic importance of trade agreements for the U.S. economy.
Yong Suk Lee is the SK Center Fellow and deputy director of Korea Program. He leads a research project focused on Korean education, entrepreneurship and economic development.
Book Talk: "The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century" with Walter Scheidel
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DUE TO THE OVERWHELMING RESPONSE FOR THIS EVENT, WE ARE NOW FULLY BOOKED AND UNABLE TO TAKE FURTHER RSVPS.
Are mass violence and catastrophes the only forces that can seriously decrease economic inequality? To judge by thousands of years of history, the answer is “Yes.” Tracing the global history of inequality from the Stone Age to today, Walter Scheidel shows that inequality never dies peacefully. Periods of increased equality are usually born of carnage and disaster and are generally short-lived, disappearing with the return of peace and stability. The Great Leveler is the first book to chart the crucial role of violent shocks in reducing inequality over the full sweep of human history around the world.
Ever since humans began to farm, herd livestock, and pass on their assets to future generations, economic inequality has been a defining feature of civilization. Over thousands of years, only violent shocks have significantly lessened inequality. The “Four Horsemen” of leveling—mass-mobilization warfare, transformative revolutions, state collapse, and catastrophic plagues—have repeatedly destroyed the fortunes of the rich. Scheidel identifies and examines these processes, from the crises of the earliest civilizations to the cataclysmic world wars and communist revolutions of the twentieth century. Today, the violence that reduced inequality in the past seems to have diminished, and that is a good thing. But it casts serious doubt on the prospects for a more equal future.
An essential contribution to the debate about inequality, The Great Leveler provides important new insights about why inequality is so persistent—and why it is unlikely to decline any time soon.
Walter Scheidel is the Dickason Professor in the Humanities, Professor of classics and history, and a Kennedy-Grossman Fellow in Human Biology at Stanford University. The author or editor of sixteen previous books, he has published widely on premodern social and economic history, demography, and comparative history.