Stanford University

Economic, social, and security implications of East Asia's demographic transition

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Asia’s demographic landscape is changing in a big way. Japan’s population is shrinking, as people are living longer, marrying later, and choosing to have fewer or no children. Korea is moving in the same direction, while China and the countries of South and Southeast Asia face similar issues in the coming decades. As this takes place, more people are moving to, from, and across Asia for job, education, and marriage opportunities.

These demographic changes present policymakers with new challenges and questions, including: What are the interrelationships between population aging and key macroeconomic variables such as economic growth? How will it impact security? What are the effects on employment policy and other national institutions? How have patterns of migration affected society and culture? What lessons can Asia, the United States, and Europe learn from one another to improve the policy response to population aging?

The Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) focused its third annual Stanford Kyoto Trans-Asian Dialogue on addressing the possible economic, social, and security implications of Asia’s unprecedented demographic transition. Thirty scholars, government figures, journalists, and other opinion leaders from Stanford, the United States, and countries across the Asia-Pacific region gathered September 8–9, 2011, in Kyoto, Japan, to discuss key issues related to the question of demographic change.

Comparative Demographics and Policy Responses

Japan’s shrinking workforce calls for labor policy changes, stressed presenters during the opening Dialogue session. Stanford Center for Population Research director Shripad Tuljapurkar stated that Japan’s population could decrease by as much as 25 percent and that its government has a window of approximately 40 years in which to act. In describing Japan’s demographic shift, Ogawa Naohiro, director of the Nihon University Population Research Institute, also emphasized the importance of good financial education for individuals as life expectancy increases.

Macroeconomic Implications

Economists Masahiko Aoki and Cai Fang addressed changes to East Asia’s economic landscape. Aoki, an FSI senior fellow, spoke of the transition from agriculture to industry that has occurred at different stages in Japan, Korea, and China and of the increasing cost of human capital that has followed. Cai, a Chinese Academy of Social Sciences labor and population expert, stated that after several decades of industrial growth China is now at a turning point in terms of its global competitiveness.

Labor and Migration

Scott Rozelle, codirector of Stanford’s Rural Education Action Program (REAP), opened the next day with a discussion of China’s rural human capital investment. Offering Mexico’s situation after the mid-1990s peso crisis as a comparison, he emphasized the immediate need for allocating more health and education resources to China’s rural areas. Ton-Nu-Thi Ninh, president of Tri Viet University, discussed the socioeconomic and cultural aspects of labor migration—a growing trend in Asia—and advocated that governments factor it more into their foreign policy development.

Security

The security impact of Asia’s demographic transition will take several decades to understand, but it will eventually lead to the need for significant policy re-strategization, stated Yu Myung Hwan, Korea’s former minister of foreign affairs and trade, during the closing Dialogue session. He suggested focusing on impacts that could result from the major changes taking place in fertility, urbanization, and migration. Concurring with many of Yu’s views, Stanford’s Shorenstein Distinguished Fellow Michael H. Armacost also noted the current lack of literature on the link between security and demography. In addition, he emphasized the need for the United States to continue pursuing good relations with China and Russia during this time of transition.

“Low fertility rates are not because women are all out there working. In fact, a number of countries have lots of females in the labor force and have achieved a resurgence of fertility. Achieving work-life balance is important, not just for women, but for men as well, and might play a role in lessening the gap in life expectancy between men and women.”

-Karen Eggleston, Director, Asia Health Policy Program

Throughout the event, Dialogue participants unanimously acknowledged the serious challenges facing policymakers as they look for ways to meet the evolving needs of individuals, families, and organizations. The demographic outlook is not entirely gloomy, however. Numerous participants also pointed to the potential for exciting advances and innovations in technology and international cooperation.

As in previous years, the event concluded with a lively public symposium and reception attended by students from Stanford and local universities, Shorenstein APARC guests and affiliates, and members of the general public. Speaking during the reception, Kadokawa Daisaku, mayor of Kyoto, and Kim Hyong-O, member and former speaker of the Korean National Assembly, acknowledged the significance of the Stanford Kyoto Trans-Asian Dialogue as a forum for addressing issues of mutual importance to the United States and Asia.

The Dialogue is made possible through the generosity of the City of Kyoto, FSI, and Yumi and Yasunori Kaneko. To read the final report from this and previous Dialogues, visit the event series page below.

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A worker stands on steel rods at a superblock construction site in Jakarta in February 2010. Increasing urbanization is one of many aspects of Asia's demographic change. | REUTERS/Beawiharta
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The Transition to Afghan Sovereignty: Assessing Progress and Identifying Challenges

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Ten years into the war in Afghanistan, Payne Distinguished Lecturer Lt. Gen. Karl W. Eikenberry, the former U.S. Ambassador to Afghanistan and the former Commander of the American-led Coalition Forces there, set out to examine the transition to Afghan sovereignty.   Eikenberry laid out  three broad sets of questions: How well are we doing in the campaign in Afghanistan, what are the significant challenges we’ll face in achieving our goals and objectives, and what are the implications for American power and influence in the 21st century.

Watch the video below.

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Karl Eikenberry Payne Distinguished Lecturer; Retired United States Army Lieutenant General; Former United States Ambassador to Afghanistan Speaker
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Frank E. and Arthur W. Payne Lecture Series

Chinese policy makers find inspiration to foster innovation and entrepreneurship at SPRIE education program

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From November 14th to 22nd, the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) welcomed a delegation of leaders from Shanghai for intensive training on “Leading Innovative and Entrepreneurial Firms and Regions in the Global Economy”.  The 20-member delegation was composed of officials and senior managers with responsibilities over high tech parks, human resources, finance and urban planning in Shanghai, which has a total population over 20 million, and burgeoning investment in banking and finance, IT, bio science and media.

The weeklong program included more than 30 hours at the Stanford Graduate School of Business’ state-of-the-art Knight Management Center, the Bay Area Council and Department of Environment in San Francisco. The Chinese leaders engaged in dialogues and exchanged ideas with Stanford faculty, policy experts in the Bay Area, venture capitalists, entrepreneurs, and NGOs on the key strategies to drive innovation and entrepreneurship. 

Teaching sessions drew on the expertise and experience of 13 thought leaders who shared innovative strategies, current data, and lessons from Silicon Valley, and regions in the US, Europe and Asia.  From the GSB, Professor William F. Miller, Professor William P. Barnett and SPRIE Associate Director Marguerite Gong Hancock, each led sessions, ranging in focus from the ecosystem of Silicon Valley to strategies for discovering successful business models.

The classroom experience culminated in team presentations to translate what was learned into the context of the Chinese leaders’ own experiences and responsibilities in the Shanghai region.

“During the seven-day training program organized by SPRIE, we have learned several insights…especially under the theme of Engines of Innovation and Entrepreneurship,” said one group. The culture of innovation and entrepreneurship, the driving force of linking universities and industry, and the support of non-profit organizations could all play an increased role in Shanghai, another group concluded in a written report.

While appreciating the differences in cultures, systems, and the roles of government between Shanghai and the Valley, the Shanghai leaders also discussed how the Valley’s culture of risk taking and tolerating failure, and empowering creativity and productivity in talent had inspired them to apply lessons learned to Shanghai.

George Shultz, former U.S. Secretary of State, gave a keynote speech at Government Leader Program hosted by SPRIE in September 2011.
This program on “Leading Innovative and Entrepreneurial Firms and Regions in the Global Economy” is one of a series hosted by SPRIE to welcome international policymakers to Stanford at the heart of Silicon Valley to explore what leaders in successful high-tech regions around the world do to foster innovation and entrepreneurship and become engines for economic growth. Classes are offered by an interdisciplinary team of experts comprised of Stanford University faculty, Silicon Valley thought leaders, and other regional decision makers.  Previously, SPRIE hosted a three-day training program for 20 central, provincial and municipality government officials from China, featuring distinguished speakers such as George Shultz (right in the photo), former U.S. Secretary of State, and Burton Richter, a Nobel Prize Laureate in Physics.

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Quality of Government. What it is - What you get - How to get it.

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Abstract:

Issues about “good governance” and anti-corruption have become central in the development and democracy agenda. While it’s clear that low-quality government institutions have negative effects on the health and wealth of societies, the criteria for what should count as good governance remain far from clear. In his new book “The Quality of Government: Corruption, Social Trust and Inequality in International Perspective”, Bo Rothstein argues that the dominant theories in this field represent serious mischaracterizations of the problem and that the standard definitions of the problem used in research as well as by many leading policy organizations are not helpful. This, he argues, has led to anti-corruption policies that are, at best, ineffective. 

Speaker Bio: 

Bo Rothstein holds the August Röhss Chair in Political Science at University of Gothenburg in Sweden where he is head of the Quality of Government (QoG) Institute. The QoG Institute consists of about twenty researchers studying the importance of trustworthy, reliable, competent and non-corrupt government institutions.

Rothstein took is PhD at Lund University in 1986 and served as assistant and associate professor at Uppsala University 1986 to 1994. He has been a visiting scholar at the Russell Sage Foundation in New York, Cornell University, Harvard University, Collegium Budapest Institute for Advanced Study, the Australian National University and the University of Washington in Seattle. In 2006, he served as Visiting Professor at Harvard University.

His latest book, The Quality of Government: Corruption, Inequality and Social Trust in International Perspective is published by University of Chicago Press in 2011. Among his earlier books in English are Social Traps and the Problem of Trust, and Just Institutions Matters: The Moral and Political Logic of the Universal Welfare State (both Cambridge University Press 1998) and The Social Democratic State (Univ. of Pittsburgh Press 1996). His articles have appeared in scholarly journals such as World Politics, Governance, Comparative Politics, Scandinavian Political Studies, American Behavioral Scientist, European Journal of Political Research and Comparative Political Studies. He is also a regular contributor to the Swedish debate about public policy and has published more than 100 op-ed articles in all major Swedish daily newspapers.

Beginning in January 2012, Rothstein will be in residence at Stanford and affilliated with the Scandinavian Consortium for Organizational Research (SCANOCOR) and the Institute for Research in the Social Sciences at Stanford. 

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Bo Rothstein August Röhss Chair in Political Science Speaker University of Gothenburg
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Making the Resource Curse Disappear: A re-examination of Haber and Menaldo’s “Do Natural Resources Fuel Authoritarianism"

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Abstract:  

Haber and Menaldo (2011) claim there is little evidence that oil is harmful to democracy, and that previous studies to the contrary were corrupted by omitted variable bias. Michael Ross professor of political science at UCLA will present findings from a paper co-authored with Jørgen Juel Andersen to show there is little evidence of the bias they allege, and point out that they decline to test the most credible version of the resource curse hypothesis.  The versions that they do test, moreover, are based on two implausible assumptions: that oil will effect a country’s regime type immediately, rather than over a period of several years; and that the relationship between oil wealth and political power did not change over the 200 year period covered by their data.  We argue that oil only had strong anti-democratic effects after the 1970s, when most oil-producing autocracies nationalized their industries; and show their main results are overturned when we add to their models a dummy variable for the post-1979 period, and allow the effects of oil to take place over a period of three, five, or seven years, instead of just one year.  

Speaker Bio: 

Michael L. Ross is Professor of Political Science at the University of California, Los Angeles (UCLA), and Director of the Center for Southeast Asian Studies. 

He has published widely on the political and economic problems of resource-rich countries, civil war, democratization, and gender rights; his articles have appeared in the American Political Science Review, American Journal of Political Science, Annual Review of Political Science, British Journal of Political Science, International Organization, Journal of Confiict Resolution, Journal of Peace Research, Politics and Gender, and World Politics.  In 2009, he received the Heinz Eulau Award from the American Political Science Association for the best article published in the American Political Science Review. 

His work has also appeard in Foreign Affairs, Foreign Policy, Harper's, The Los Angeles Times, and been featured in The Washington Post, Newsweek, and many other publications. 

Ross currently serves on the advisory boards of the Review Watch Institute, the Natural Resource Charter, and Clean Trade, and was previously a member of the Advisory Group for the World Bank's Extractive Industries Review.  He is also a member of the Political Instability Task Force and the APSA Task Force on Democracy Audits and Governmental Indicators.

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Michael Ross Professor, Political Science Speaker UCLA
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Building a Rule of Law in Afghanistan

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Karl Eikenberry is the Payne Distinguished Lecturer at the Freeman Spogli Institute for International Studies at Stanford University (FSI).   Within FSI he is an affiliated faculty member with the Center for International Security and Cooperation and the Center on Democracy, Development, and the Rule of Law, and an affiliated researcher with the Europe Center.

Prior to his arrival at Stanford, he served as the U.S. Ambassador to Afghanistan from May 2009 until July 2011, where he led the civilian surge directed by President Obama to reverse insurgent momentum and set the conditions for transition to full Afghan sovereignty.

Before appointment as Chief of Mission in Kabul, Ambassador Eikenberry had a thirty-five year career in the United States Army, retiring in April 2009 with the rank of Lieutenant General.  His military operational posts included commander and staff officer with mechanized, light, airborne, and ranger infantry units in the continental U.S., Hawaii, Korea, Italy, and Afghanistan as the Commander of the American-led Coalition forces from 2005-2007.

He has served in various policy and political-military positions, including Deputy Chairman of the North Atlantic Treaty Organization (NATO) Military Committee in Brussels, Belgium; Director for Strategic Planning and Policy for U.S. Pacific Command at Camp Smith, Hawaii; U.S. Security Coordinator and Chief of the Office of Military Cooperation in Kabul, Afghanistan; Assistant Army and later Defense Attaché at the United States Embassy in Beijing, China; Senior Country Director for China, Taiwan, Hong Kong and Mongolia in the Office of the Secretary of Defense; and Deputy Director for Strategy, Plans, and Policy on the Army Staff.

He is a graduate of the U.S. Military Academy, has master’s degrees from Harvard University in East Asian Studies and Stanford University in Political Science, and was a National Security Fellow at the Kennedy School of Government at Harvard. 

Ambassador Eikenberry earned an Interpreter’s Certificate in Mandarin Chinese from the British Foreign Commonwealth Office while studying at the  United Kingdom Ministry of Defense Chinese Language School in Hong Kong and has an Advanced Degree in Chinese History from Nanjing University in the People’s Republic of China.

His military awards include the Defense Distinguished and Superior Service Medals, Legion of Merit, Bronze Star, Ranger Tab, Combat and Expert Infantryman badges, and master parachutist wings.  He has received the Department of State Distinguished, Superior, and Meritorious Honor Awards, Director of Central Intelligence Award, and the Chairman of the Joint Chiefs of Staff Joint Distinguished Civilian Service and Department of the Army Meritorious Civilian Service Awards.  His foreign and international decorations include the Canadian Meritorious Service Cross, French Legion of Honor, Czech Republic Meritorious Cross, Hungarian Alliance Medal, Afghanistan’s Ghazi Amir Amanullah Khan and Akbar Khan Medals, and NATO Meritorious Service Medal.

Ambassador Eikenberry serves as a Trustee for the International Institute for Strategic Studies, is a member of the Council on Foreign Relation, the American Academy of Diplomacy, and the Council of American Ambassadors, and was previously the President of the Foreign Area Officers Association.  He has published numerous articles on U.S. military training, tactics, and strategy, and on Chinese ancient military history and Asia-Pacific security issues.  He has a commercial pilot’s license and instrument rating, and also enjoys sailing and scuba diving.  He is married to Ching Eikenberry.

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Karl Eikenberry Payne Distinguished Lecturer Speaker FSI
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Student wins Mitchell Scholarship for Japan research

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Philippe de Koning, a recent Stanford graduate who has been selected to study in Ireland as a Mitchell fellow, wrote a manuscript about Japan's defense and financial crisis with Shorenstein APARC faculty member Phillip Lipscy. Lipscy, a political scientist, was de Koning's advisor through his undergraduate career and also advised him on his senior thesis.

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Tokyo Stock Exchange floor, January 2011. | Flickr/Merlijn Hoek
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Long-Term and Short Term Implications of China's Growing Impact

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This seminar is jointly hosted by the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) and Greater China Business Club (GCBC) at Stanford Graduate School of Business.

About the seminar

There is often much discussion about the current Chinese economic environment and how it impacts global economic growth. However, to gauge the true impact of China on the world economy, one should look at what will happen over the long term as the country gets closer to the United States in economic strength and maturity. This talk looked at the current trends in the Chinese political and economic arena, the long-term prospects for Chinese economic growth, and how these trends would impact the global economic order. Examples from the technology and internet industry were used to demonstrate this effect and how China would shape global industries.

About the speaker

Chris joined McKinsey & Company’s Asia leadership team in 2011 as a senior advisor in
technology. He leads engagements for clients in the technology, telecommunications and
semiconductor industries and is taking a leadership role in advanced technology areas both in Asia and globally. Previous to McKinsey, Chris was the General Manager of Intel China,
directly responsible for the overall region’s multi-billion dollar P&L. Chris managed Intel
China’s business operations, its technical and development operations, its strategic programs with enterprise, Internet & government customers, and owned the mobile, server, phone, embedded and consumer electronics product lines. Chris also managed Intel’s Olympics Program. During his 3-year tenure ending in 2010, overall revenue increased by over 80%.

Formerly, Chris was Chief of Staff to Intel Executive Vice President Sean Maloney, assisting
Mr. Maloney in leading Intel’s $15 billion mobile PC business as well as its $45 billion global
Sales & Marketing Group. Chris led Intel’s wireless business unit as well as various business
development, sales, marketing and product management teams at Intel. Chris was previously a private equity investor at The Blackstone Group in New York City. He served as a consultant for Bain & Company in South Africa and led the Board of Directors for Decortech, a privatelyheld technology company.

During a six months sabbatical in 2010, Chris led a major charity program in China and was a visiting professor of strategy at the MIT-Fudan University MBA program in Shanghai. Chris’s academic and policy works have been published by Stanford University; in Opportunity ’08 by the Brookings Institution; and in the Strategic Management of Technology and Innovation textbook by Clayton Christensen and Robert Burgelman. Chris has served as a senior fellow at Tsinghua University and was the author of the ‘Asia Diary’ column for Forbes Online. Chris is a member of the Council on Foreign Relations, a member of the National Committee on US-China Relations, and an Advisory Board Member for the Seva Foundation.

Chris received an MBA from Stanford Business School (2001), where he was an Arjay Miller
scholar; a Masters of Arts in Political Science from Stanford University (2001); and a Bachelors of Science in Economics, summa cum laude, from the Wharton School at the University of Pennsylvania (1996).

Chris was born in Washington, D.C., spent his entire childhood in rural Colorado, lived as an
expatriate in France and South Africa, and currently lives with his wife Xiaomin in China.

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Stanford Graduate School of Business

Christopher Thomas Senior Advisor Speaker McKinsey & Company
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Three graduates with FSI ties earn Rhodes, Mitchell scholarships

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Two Stanford graduates with close ties to FSI’s centers have been named 2012 Rhodes Scholars. A third was selected as a Mitchell Scholar.

Anand Habib was a graduate of the 2011 CISAC honors program in international security studies and a 2010 Dachs undergraduate intern. Habib and Katherine Niehaus – who is now a research assistant for a CHP/PCOR project evaluating whether HIV medication increases the risk of cardiovascular disease – will study at the University of Oxford in England under the Rhodes program. 

Philippe de Koning, who will study in Ireland as a Mitchell fellow, wrote a manuscript about Japan’s defense and financial crisis with Shorenstein APARC faculty member Phillip Lipscy. Lipscy, a political scientist, was de Koning’s advisor through his undergraduate career and also advised him on his senior thesis. De Koning was also a 2010 CISAC honors student.

More about the scholars:

Anand R. Habib, 22, of Houston, Texas, is a 2011 graduate of Stanford, where he earned a bachelor's degree in biology, with honors in international security studies. He plans to pursue a master's degree in public policy and in medical anthropology at Oxford.

Habib is working on community health programs at St. Joseph's Clinic in Thomassique, Haiti, under a one-year global health fellowship awarded by Medical Missionaries. The nonprofit organization is a volunteer group of more than 200 doctors, nurses, dentists, and others who work to improve the health of the poor in the United States and throughout the world.

In 2011, he won a Deans' Award for Academic Accomplishment, which honors extraordinary undergraduate students for "exceptional, tangible" intellectual achievements. One of the professors who nominated him for the award described him as a "superb critical thinker" whose work is characterized by "creative genius" and "mature insights," adding that he "exemplifies exactly the kind of deeply informed, pragmatic and caring leadership that the world needs and Stanford enables."

As a Stanford student, Habib worked on behalf of politically and medically disenfranchised people in India, Mexico and Guatemala. His field research internship in Guatemala’s indigenous region during summer 2010 was carried out under the supervision of Paul Wise, professor of pediatrics and FSI senior fellow, as part of FSI’s Dachs mentored undergraduate research program.  On campus, he turned the Stanford tradition of the annual Dance Marathon into a vehicle dedicated to addressing the HIV/AIDS pandemic by engaging not only Stanford students but also local communities and corporations, raising more than $100,000. His exceptional work was recognized by his participation in the Clinton Global Initiative University Conference in April, 2011.

Katherine "Kate" Niehaus, 23, of Columbia, S.C., earned a bachelor's degree in biomechanical engineering in 2010 and a master's degree in bioengineering in 2011 – both at  Stanford. Her class and research work focused on biomechanics and her interests lie in its applications to high technology entrepreneurship.

She plans to pursue a doctorate of philosophy in systems approaches to biomedical science at Oxford.

At Stanford, Niehaus captained Stanford's varsity track and cross country teams, won the Pac-10 5,000 meters, and won Academic-All American status. She also served as a mentor and tutor for students in low-income families.

Working with faculty in the Center for Health Policy, Kate led a project to evaluate how well newer HIV antiretroviral drugs work compared with older drugs.  Her work was among the first to evaluate comprehensively all of the trials of new drugs in treatment of experienced patients, and showed that these drugs have substantial benefits.

Philippe de Koning, 22, of Paris, France, earned a bachelor's degree in international relations at Stanford in 2010. He plans to pursue a master's degree in international security and conflict resolution at Dublin City University.

He is a Herbert Scoville Jr. Peace Fellow at the Nuclear Threat Initiative in Washington, D.C. The nongovernmental organization works to prevent nuclear, chemical, and biological threats from materializing. De Koning is researching nuclear materials security and the U.S.-China dialogue on nuclear issues.

De Koning, who earlier was awarded a Fulbright Scholarship, spent the 2010-2011 academic year at Hiroshima University in Japan. He examined various components of Japanese security policy, with emphasis on current evolution of Japanese Self-Defense Forces, policies on nuclear issues and approaches toward peacekeeping.

In 2009, he was a member of the Stanford delegation to the United Nations Climate Change Conference in Copenhagen.

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