Agriculture

The global trade in grain and meat between nations is extensive and is projected to grow considerably in the short term. The concept and quantification of "virtual water" involved in these trade exchanges has led to new insights of the larger consequences of global transfers in commodities. FSE will host a small international team of scholars, including economists, ecologists, and livestock specialists to scope out this issue and to expand this concept to include energy and nutrients. By documenting trends, developing scenarios for the future, the group is proposing ways to achieve desired outcomes in a way that is sustainable for the life systems needed to fuel industrial livestock systems.

Richard and Rhoda Goldman Conference Room

Conferences
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A full day of speeches, discussions, and interaction on critical international issues.

MAIN SPEAKERS

Samuel R. Berger, Chairman of Stonebridge International and former National Security Advisor

Hans Blix, Chairman, Weapons of Mass Destruction Commission and former U.N. weapons inspector in Iraq

Paul Collier, Professor of Economics, Oxford University

Philip Zelikow, Counselor of the Department of State and former Executive Director of the 9/11 Commission

CHECK IN 7:30 AM

BREAKFAST & WELCOME 8 AM - 9 AM

WELCOME

John Hennessy, President, Stanford University

INTRODUCTORY REMARKS

Coit D. Blacker, SIIS Director, and William J. Perry, former Secretary of Defense

MORNING PLENARY SESSIONS 9 AM - 12:30 PM

Hans Blix on the risks of a new nuclear arms race and Paul Collier on governance and democracy.

LUNCH 1 PM

SPEAKER

Philip Zelikow, The United States and the World

AFTERNOON SESSIONS 2:30 PM - 5:45 PM

Breakout sessions with Stanford faculty, policy-makers, international academics, and journalists, on issues such as reform of the United Nations, our energy future, U.S. policy in Korea, the future of U.S./European relations, Russia, international criminal justice and peace, global climate change, and international responses to infectious diseases.

PARTICIPATING STANFORD FACULTY & SCHOLARS INCLUDE

Donald Kennedy, Larry Diamond, Michael Armacost, Gi-Wook Shin, Stephen Stedman, Scott Sagan, Christopher Chyba, Lynn Eden, David Victor, Allen Weiner, Alan Garber, Amir Eshel, Kathryn Stoner-Weiss, Doug Owens, John McMillan, and Dan Okimoto.

RECEPTION 6 PM

DINNER 7 PM

SPEAKER

Samuel R. Berger, U.S. Foreign Policy: The Road Ahead.

Frances C. Arrillaga Alumni Center

Conferences
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China's rapid growth and increasingly close integration with world markets is transforming Northeast and Southeast Asian regional production and trade. Southeast Asia's relatively resource-abundant economies are expected to lose comparative advantage in low-skill, labor-intensive manufacturing activities while gaining comparative advantage in natural resource products. The latter shift will increase incentives to exploit and export the products of forestry, fisheries, and agriculture.

What are the implications for long-run growth and welfare, particularly in the poorest and least industrialized economies, including Indonesia and Vietnam? How will this trend interact with the other major phenomenon sweeping through Southeast Asia, i.e., decentralization? With reduced national authority and minimal local accountability, the potential for disastrous rates of resource exploitation is high. A race to liquidate natural resource assets, if sufficiently pronounced, could expose parts of the region to a new variant of the "natural resource curse" - the idea that resource-abundant economies grow more slowly than others.

Ian Coxhead is an economist and serves as director of the Center for Southeast Asian Studies at the University of Wisconsin-Madison. His specialty is the economic development of Southeast Asia. His many publications on trade, development and the environment include The Open Economy and the Environment: Development, Trade and Resources in Asia (2003, with Sisira Jayasuriya). Prof. Coxhead's current research features the impacts of globalization, regional growth, and domestic policy reforms on the structures of production and employment, issues of poverty and the environment, and the exploitation of natural resources in Vietnam and the Philippines.

Daniel and Nancy Okimoto Conference Room

Ian Coxhead Professor of Agricultural and Applied Economics University of Wisconsin, Madison
Seminars

This meeting will focus on the intersection of two crucial challenges for the organization of energy infrastructures in the developing world. First, for nearly two decades most major developing countries have struggled to introduce market forces in their electric power systems. In every case, that effort has proceeded more slowly than reformers originally hoped; the outcomes have been hybrids that are far from the efficiency and organization of the "ideal" textbook model for a market-based power system. Second, growing concern about global climate change has put the spotlight on the need to build an international regulatory regime that includes strong incentives for key developing countries to control their emissions of greenhouse gases. In most of those countries, the power sector is the largest single source of emissions. The United Nations Framework Convention on Climate Change and the Kyoto Protocol included mechanisms that would reward developing nations that cut emissions, but so far those systems have functioned far short of their imagined potential. A growing chorus of analysts and policy makers are expressing dissatisfaction with those existing mechanisms and clamoring for alternatives.

This meeting will offer diagnoses of what has gone wrong and what opportunities have nonetheless emerged. It will focus on practical solutions and look at the prospects for different technologies to meet growing demand for power while minimizing the ecological footprint of power generation. It will engage scholars who are studying the industrial organization of the electric power sector (and other infrastructures) in developing countries as well as those who study the effectiveness of international legal regimes. It will engage practitioners, including regulators and energy policy makers. Our aims are not only to focus on new theories that are emerging to explain the organization of the power sector and the design of meaningful international institutions, but also to identify practical implications for investors, regulators, and policy makers.

Presentations will include recent results from the research of Stanford Program on Energy and Sustainable Development. We will present the main findings from a comprehensive study of power market reform in five developing countries (Brazil, China, India, Mexico and South Africa). We will also show the results from a detailed analysis of the greenhouse gas emissions from two key states in India and three provinces in China--a study conducted jointly with the Indian Institute of Management in Ahmedabad. In addition, we will present new conclusions from ongoing work that focuses on strategies for engaging developing countries in the global climate regime. Among the topics considered will be the prospects for accelerating the introduction of natural gas into electric power systems--especially those in China and India where the present domination of coal leads to relatively high emissions.

Oksenberg Conference Room

Workshops
Paragraphs

El Niño Southern Oscillation (ENSO) events exert significant influence on Southeast Asian rice output and markets. This paper measures ENSO effects on Indonesia's national and regional rice production and on world rice prices, using the August Niño 3.4 sea surface temperature anomaly (SSTA) to gauge climate variability. It shows that each degree Celsius change in the August SSTA produces a 1,318,000 metric ton effect on output and a $21/metric ton change in the world price for lower quality rice. Of the inter-annual production changes due to SSTA variation, 90% occur within 12 provinces, notably Java and South Sulawesi. New data and models offer opportunities to understand the agricultural effects of ENSO events, to reach early consensus on coming ENSO effects, and to use forecasting to improve agencies' and individuals' capacity to mitigate climate effects on food security. We propose that Indonesia hold an "ENSO summit" each September to analyse the food-security implications of upcoming climate events.

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Publication Type
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Bulletin of Indonesian Economic Studies
Authors
Rosamond L. Naylor
Whitney L. Smith

Meat production is projected to double by 2020 due to increased incomes, population growth, and rising per capita global consumption of meat. In order to meet this demand, industrialized animal production systems are proliferating and grain production for feed is expanding. These trends will have major consequences on the global environment-affecting the quality of the atmosphere, water, and soil due to nutrient overloads; impacting marine fisheries both locally and globally through fish meal use; and threatening human health, as, for example, through excessive use of antibiotics.

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Philippines Conference Room

John Feffer Pantech Fellow, Asia-Pacific Research Center
Seminars
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This workshop was held as part of an ongoing study by IRADe and PESD to extend a general equilibrium model of the Indian economy to determine the impact of energy and agricultural policies on agricultural prices and production.

New Dehli, INDIA

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In an essay published June 25 in The Friday Times (out of Lahore, Pakistan), Thomas W. Simons, Jr. -- a CISAC consulting professor and former Payne Visiting Lecturer at SIIS -- traces "today's crisis in the Islamic world" back to conditions in the 1970s "in Islam's old Arab and Iranian heartlands."

The post-1970 crisis in the Islamic world and Pakistan's role

It is possible to trace today's crisis in the Islamic world back to the time of the Prophet (pbuh) and the four Righteous Caliphs. Many Salafists among Muslims and many so-called Orientalists among Westerners do just that. Opposed in every other way, they both believe in an Islamic "essence" unchanged since then. Others go back to the 19th century CE, to the onset of Western domination over much of the Muslim 'umma. Yet it seems to me that to understand today's crisis adequately we need go no further back than the years around 1970 in Islam's old Arab and Iranian heartlands. Admittedly a number of factors had to come together to produce the dilemmas we still live with.

The 20th century struggle against colonialism raised high hopes that the departure of the colonisers would usher in a new era of dignity and prosperity for Muslims. The main ideology of these hopes was the kind of republican nationalism associated with Gamal 'Abd al-Nasser in Egypt and Muhammad Mossadeq in Iran. By about 1970 these hopes had collapsed.

Not only had Israel persisted as a reminder that decolonisation did not mean an end to subordination, but the 1967 Six Days' War was such a catastrophe that its casualties were not just military: it discredited the republican nationalist ideology as well. The Arab world was rent by rivalries between republicans and monarchists, with the Cold War protagonists egging them on and paying them rents for friendship. Worst of all, the postcolonial regimes turned out to be authoritarian and corrupt.

Nor was that the whole story. There had also been much economic and social development, yet it was of very special kinds. State-led industrialisation had been based mainly on oil and gas, and oil and gas are special commodities. The iron and steel that drove earlier Western growth had created new middle and working classes; oil and gas do not, and their profits are easily captured by sitting elites. To pay for industry, moreover, states ran down agriculture. Within decades this drove millions from farms and small towns into cities that then exploded their infrastructures. The states offered education, particularly at higher levels - at one point Egypt was producing 75,000 graduates a year - but beginning about 1970 states were withdrawing from the economy and turning responsibility for growth over to captive and anaemic private sectors. So more and more first-generation graduates were entering increasingly slack economies with no real prospects for jobs or dignity.

All this was a recipe for political radicalism, and the ideological vacuum left behind by discredited republican nationalism was filled by the dream of recreating the unity and purity of the original 'umma in the 7th century CE. That dream had been part of Islamic discourse almost from the beginning, but it had mainly appealed to the 'umma's fringes, the Bedouin soldiers of the Khariji movement, the small townsmen of Islam's middle years who had then become Shi'a or Sufis. Now, around 1970, the dream had been modernised by thinkers like Sayyid Qutb in the Arab lands, 'Ali Shariati in Iran, and Maulana Abu-l-'Ala Maududi in this country, and in that form it entered the Islamic mainstream. It became the chief ideology of opposition to the authoritarian and corrupt postcolonial regimes.

The result has been thirty years of savage and bloody civil war among Muslims. It has struck Westerners and Israelis too, but most of the victims have been Muslim, because the regimes were now headed by Muslims. When Syrian leader Hafez al-Assad retook the city of Hama from Sunni insurrectionists in 1982, he killed at least 10,000 people, three times the casualties of September 11.

What would it take for Muslims to transcend this crisis? Time after time in their history they have overcome huge challenges by creating marvellous new syntheses of thought and feeling and practice. I have no doubt that they have the spiritual and intellectual and physical resources to do so once again. But what would be the elements of renewal at this new stage?

Some elements have already been moving into place.

As the civil war has proceeded, there has been covert movement on both sides toward a new centre. Regimes have been Islamising themselves. They have been introducing some Islamic law and some Islamic practice into their governance. Conversely, Islamists have been entering the political system. They now run for election; they enter cabinets; they serve in parliaments; they function as (more or less) loyal oppositions.

The process has been drenched in bad faith on both sides, but movement has been real.

Concurrently, more and more Muslims who might have become Islamist political revolutionaries two decades ago are now forsaking politics for community action in the 'umma. Rather than bombs and guns, the name of the game is now schools, clinics, charities, and the Islamic piety of individual Muslims and their families.

Moreover, with the end of the Cold War sitting regimes can no longer collect rents from the USSR, and they find it harder to collect rents from the US now that competition with the USSR is over. Even the new rents the US is paying since September 11 will never match Cold War largesse. There will never again be enough official assistance to keep regimes in power by sustaining their growth rates.

Now they must rely instead on private foreign direct investment (PFDI). This is because all over the world production of knowledge is replacing production of things as the engine of economic growth. PFDI flows mainly on economic grounds. It is not attracted by the archaic, state-dominated, information-shy economies of the Arab Middle East and Iran. Their share of world PFDI has fallen from 12 percent in 1990 to 3-4 percent today. To attract it, they need reforms that will make them less rigid, less state-dominated, and less information-shy. Such economic reforms typically lead to demands for political reforms too. That is their quandary.

Such pressures will not end Islamist radicalism. The conditions that give it birth are often still there. But such pressures do tend to force radicalism to the margins of the 'umma once again. Osama is a perfect example: through the 1990s he was forced step by step back to the only place in the world where he now had a double layer of protection and hence the space and time needed to mount an operation like September 11.

Nor will such pressures automatically generate the new Islamic synthesis the planet needs. But they do create a new opportunity for Muslims to fashion an authentically Islamic modernity that is adequate to their history and their hopes.

I would argue that September 11 did not change this basic picture. It came as a shock to most Muslims, and even Islamists asked themselves whether Osama's methods were the best path to the common goal. Iraq, of course, has been much more problematic. There military defeat was so rapid and complete that it rekindled the usual Arab feelings of helplessness and rage, and the botched aftermath has given these feelings time to swell and take political form. Radicalism is reconstituting itself, but - it should be noted - on a new basis.

For Osama, for Dr Ayman al-Zawahiri, Islam may still be the banner of revolutionary overthrow. For younger Muslims, Islam is increasingly the badge of membership in national communities. It is no longer just an ideology for outsiders. More and more it is the ideology of outsiders and deprived or threatened ruling ethnic elites: Sunni Tikritis in Iraq, Pushtuns in Afghanistan. Driven toward the margins by repression, cooptation or military defeat, Islamism is re-entering the body politic through the service entrance of Islamo-nationalism.

The consequences can be unhealthy. If only Muslims should be citizens, Christians and Jews are excluded in ways quite novel in Islamic experience, and quite dangerous. But there may also be a new and exciting opening for an Islamic legitimation of the modern nation-state that is valid for Sunnis.

So far, the only place in the Islamic heartlands to produce such a legitimation has been Iran. Not long before he died in 1989, Imam Khomeini ruled on religious grounds that in emergencies national interests can take precedence over the shari'a. It helps explain how Iran has emerged from the charismatic phase of Islamic rule without widespread violence. But Iran's special Shi'i traditions make it hard to transpose to Sunni-majority societies. Taliban rule in Afghanistan was perhaps an effort to create a version for Sunnis, but it ended before it succeeded. In both cases, moreover, the effort took place within a theocratic framework, direct rule by 'ulema.

Theocracy is not a mainstream Islamic tradition and will not appeal in most Muslim countries. A broader version of religious legitimation of the nation-state could be taking shape now in Iraq. It may be that the Americans are needed both as a parameter and as a target. But the outcome is very uncertain, the circumstances very special. And Iraq too has a majority of Shi'a.

Where does Pakistan fit in this picture? I see some similarities and more differences.

Like some Arab states, Pakistan inherited a postcolonial security threat that has absorbed disproportionate resources and has thereby reinforced older socio-political structures and a traditional sense of political irresponsibility: someone else is always to blame.

Although Pakistan was founded as an Islamic nation-state by modern means and modern people, here too modernity is so associated with the West that it must be denied as un-Islamic.

And Pakistan too has been stranded by the end of the Cold War and the onset of the IT era in economics. New rents from the war on terrorism will not restore the levels of official assistance Pakistan attracted before 1990, and private foreign direct investment has not rushed in to fill the gap.

But Pakistan is also different from the Arab world and Iran in relevant ways. Some are counterintuitive; most are to Pakistan's advantage.

First, Pakistan is not dependent on oil and gas, and can be better off for it. Pakistan is dependent on cotton, and compared to oil and gas, cotton and cotton textile production makes for larger middle and working classes, better attuned to modern political and economic needs than Middle Eastern elites.

Second, Pakistan is less developed than the old Islamic heartlands - more agricultural, less urbanised, less educated - and that too can help. It has not destroyed its agriculture. Except for Karachi, rural outmigration has not exploded its cities, and even there civil war has been on an ethnic and not a religious basis. And the graduating cohorts entering the limp economy have been relatively small. In other words Pakistan has not yet produced the conditions that brought Islamist radicalism to the centre of Middle East politics. It therefore has a window of opportunity to create better structures less conducive to civil war.

Third, Pakistanis have been struggling for over half a century to bring religion and politics together in a functioning system of governance. The need to experiment came with Pakistan's original mandate; it has led through the Ahmedi riots, the Objectives Resolution, the MRD in 1977 (sic: PNA is meant), and various Islamisation steps thereafter. Certainly, however, experimentation has been particularly intense since 2002. Its outcome is also quite uncertain.

What this means, though, is that Pakistanis have a wealth of lived experience wrestling with issues that are newer and more destructive in other Muslim societies, and of doing so mainly without violence. They should therefore be better able to integrate the religious impulse into a basically democratic political system without first establishing theocracy. If they can, it will be a first version of religious legitimation for the modern nation-state in a society with a recognisably Sunni majority. Where Pakistan fits in todayís Islamic world is as a major test case. Not for Americans: for Pakistanis. And for all the other members of the 'umma.

*Footnote: This essay draws on themes from the writer's book on Islam and a talk he gave at the Administrative Staff College in Lahore on May 24, 2004.

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