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This paper reexamines Japanese policy choices during its banking crisis in the 1990s and draws some lessons relevant for the United States and Europe in the aftermath of the global financial crisis of 2007–09. The paper focuses on two aspects of postcrisis economic policy of Japan: the delay in bank recapitalization and the lack of structural reforms. These two policy shortcomings retarded Japan’s recovery from the crisis and were responsible for its stagnant postcrisis growth. The paper also suggests some political economy factors that contributed to the Japanese policies. In France, Italy, and Spain bank recapitalization has been delayed and the structural reforms have been slow. Without drastic changes, they are likely to follow Japan’s path to long economic stagnation. The situation in Germany looks somewhat better mainly because the structural reform was undertaken before the crisis. Although the recovery has been slow in the United States as well, the problems are at least different from those faced by Japan then and many European countries now.

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Takeo Hoshi
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Ban Ki-moon, the eighth secretary-general of the United Nations, will deliver a public speech at Stanford University on Friday, June 26.

Ban’s visit will highlight the 70th anniversary of the founding of the U.N., part of a larger trip to the Bay Area to commemorate the San Francisco Conference, where the charter establishing the U.N. was signed in 1945. After his speech, he will participate in a question and answer session with Ambassador Kathleen Stephens, the U.S. ambassador to the Republic of Korea (2008-11).

The Stanford event will take place at 3 p.m. RSVP is required by June 24; seating is first come, first served. Media must pre-register by 9 a.m. on June 25.

It is Ban’s second visit to Stanford in under three years. In Jan. 2013, he delivered a speech to mark the occasion of the Walter H. Shorenstein Asia-Pacific Research Center (APARC)’s thirtieth anniversary.

“I believe we face a unique opportunity,” Ban said in Dinkelspiel Auditorium. “Because the changes we face are so profound – the decisions we make will have a deeper and more lasting impact than perhaps any other set of decisions in recent decades.”

Calling on students to be ‘global citizens,’ he spoke about the ongoing crisis in Syria, the mandate to act on climate change, and the need for a sustainable peace worldwide.

“Growing up, the U.N. was a beacon of hope for me and my country,” he said. “I urge you to harness that same spirit and make a difference.”

Ban was born in the Republic of Korea in 1944. As a youth, more than fifty years ago, Ban visited California during his first trip to the United States with a Red Cross, saying “my trip here opened my eyes to the world.” He has since held a 37-year career in public service in the Ministry of Foreign Affairs, including the role of minister of foreign affairs and trade, foreign policy advisor and chief national security advisor to the president.

“It’s truly our pleasure to host Secretary-General Ban Ki-moon on the seventieth anniversary of the U.N.,” said Gi-Wook Shin, a Stanford professor and director of Shorenstein APARC. “The U.N. has had a profound impact on the shaping of global order in the postwar era. And Ban’s leadership has steered the organization toward the world’s most pressing aims.”

Ban is reaching the end of his term as secretary-general. He assumed office in Jan. 2007 and was reelected for a second term in June 2011. Over his tenure, Ban has led a major push toward peace and non-proliferation activities, youth, women’s rights and the environment. He has urged leaders of China, Japan and South Korea to work harder on reconciliation over the wartime past to ensure long-term stability in the region.

The June 26 event, which can be followed at #UNatStanford, is co-sponsored by Shorenstein APARC and the Freeman Spogli Institute for International Studies at Stanford University; with promotional co-sponsors Asia Society, Asia Foundation and the World Affairs Council of Northern California.

CONTACT: Event inquires may be directed to Debbie Warren, dawarren@stanford.edu or (650) 723-8387; Media inquires may be directed to Lisa Griswold, lisagris@stanford.edu or (650) 736-0656

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U.N. Secretary-General Ban Ki-moon talks with professor Gi-Wook Shin following a public lecture at Stanford in Jan. 2013. | Rod Searcey
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Demetrios G. Papademetriou is Distinguished Senior Fellow, Co-Founder and President Emeritus of the Migration Policy Institute (MPI), and President of MPI Europe. Dr. Papademetriou has published more than 270 books, monographs, articles and research reports on migration and related issues, and advises senior government officials, foundations, and civil society organizations in dozens of countries. He also convenes the Transatlantic Council on Migration and the Regional (North American) Migration Study Group, chairs the Advisory Board of The Open Society Foundations’ International Migration Initiative (IMI), and is Co-Founder and Chair Emeritus of Metropolis.

Demetrios G. Papademetriou Distinguished Senior Fellow, Co-Founder and President Emeritus of the Migration Policy Institute (MPI) and President of MPI Europe Speaker
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France is grappling with rising terrorism and the climate change problem, French Ambassador Gérard Araud said during a talk sponsored by The Europe Center.

"We had been expecting a terrorist attack for some time," said Araud, referencing the January massacre in Paris in which two shooters who identified themselves as Islamic terrorists killed 12 people at the Charlie Hebdo newspaper offices and wounded several others. "The attack in Paris was like our 9/11."

He said that France is undertaking both educational and law enforcement efforts aimed at taming the spread of radicalized Islamic youth in the country – but there is no easy solution.

For example, it is almost impossible to monitor all the potential suspects, shut down offensive websites only to see them pop up shortly thereafter, and even track youth coming and going from Islamic campaigns in places like Syria and Iraq.

"Everything," Araud said, "depends on the balance between civil liberties and law enforcement. We're trying to adjust to this new threat."

More than a hundred people turned out for Araud's talk, which was held in the Koret-Taube Conference Center. The event, held May 1, was billed as the "State of the France-U.S. Relationship and Priorities for 2015."

Araud was appointed Ambassador of France to the United States in 2014. He has held positions within the Ministry of Foreign Affairs and International Development. During his career, Araud became an expert on the Middle East and security issues, and was the French negotiator on the Iranian nuclear issue from 2003 to 2006.

He spoke about the problem of increasing anti-Semitism in France.

"It's totally unacceptable," he said. On the educational front, French schools routinely teach students about the horrors of the Holocaust and some even make field trips to places like Auschwitz, one of the Nazi concentration camps where Jewish people were exterminated during World War II.

One upcoming topic of global interest, Araud said, is the United Nations climate change conference scheduled to start Nov. 30 in Paris.

He described it as perhaps a "last chance" attempt at an effective global agreement on the issue, and sounded upbeat about the possibility of success. "Things are much more positive than in 2009" when similar talks in Copenhagen failed to spark worldwide unity.

The reasons, he said, are that more countries are acknowledging the impact of carbon emissions and that China has expressed a desire to cooperate. But much depends on the talks in Paris, both their tone and substance.

"Top down approval certainly won't work," Araud said, noting that the conference needs to produce a consistent and credible message of action on climate change that appeals to many countries.

He noted Stanford's new energy system aims to cut campus greenhouse gas emissions by 68 percent and fossil fuel by 65 percent. "It's quite positive," he said.

Michael McFaul, director of the Freeman Spogli Institute for International Studies, introduced Araud and described the bilateral relationship between the United States and France as "central to everything that we do."

McFaul pointed out that Araud played a key role in the writing of the economic sanctions that eventually brought Iran to the nuclear negotiations table.

When he started his speech, Araud said it was his first visit to Stanford. "Thank you for the weather," he smiled.

 

Clifton B. Parker is a writer for the Stanford News Service.

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