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A multitude of corporate governance reforms were enacted in Japan from 1997-2005. As a result of one of those reforms, beginning in 2003 Japanese companies had the option of choosing a committee system of corporate governance, one partially modeled on the American system, rather than the auditor system.

On May 14, SPRIE Researcher Robert Eberhart spoke at a SPRIE seminar about his current research assessing the effect of the Japanese reforms and the question of whether the corporate system in Japan will ultimately be converging with the Western model.

We compared two groups of committee system and auditor system companies and found that the firms using committee system governance, the so-called American model, were significantly valued higher as measured by Tobin's q--thirty- and forty-percent higher.

In researching the performance of Japanese companies under the committee system, Eberhart's current study has found significantly (30%-40%) higher Tobin's q scores for those companies following the committee system over those following the auditor system. This observation seems independent of other financial variables differentiating these companies. The research focused on 63 companies in the pharmacueuticals, electronics, and machine industries.

Tobin's q is the ratio of a firm's market cap to the replacement value of its assets. Since the change in Tobin's q was immediate, based on monthly data, this suggests a change in market evaluation, Eberhart noted, since the asset value would not have changed so quickly.

One possibility, Eberhart ventured, is that by opening themselves up to the committee system, management is indicating a confidence in the veracity of the firm's fiscal monitoring system, and the market is responding to that confidence.

Eberhart concluded by noting that these results are preliminary and further research is necessary to precisely determine the nature of these performance differences.

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With the collapse of Soviet Union and a lack of internal energy resources, North Korea has been in economic hardships since early 1990s. Chung will discuss how the shortage of electric power has affected not only the operations of factories but the daily lives of North Koreans. He will also examine how North Korea has attempted to rehabilitate its energy sector internally and in external relations with neighboring countries as well as in the Six-Party Talks.

Lee will evaluate North Korean nuclear technology based on his analysis of North Korea’s National Science and Technology Development Plan and of its historical background. He
will examine the priorities in disabling of North Korea’s nuclear capacity.

Joon Young Chung is a reporter at Yonhap News, a Korean news wire service, and has worked in various departments including the national desk, business desk and the North Korea desk for the past 14 years. Recently he has covered Inter-Korean Dialogue and the Six-Party Talks.

Choongeun Lee is a Research Fellow at the Science & Technology Policy Institute (STEPI) in Korea. Before joining STEPI, he worked at the Yanbian University of Science & Technology, Chinese Academy of Science, and Peking University in China. He received his B.A. and Ph.D. in engineering from Seoul National University in Korea, and Ph.D. in education from Beijing Normal University in China.

Daniel and Nancy Okimoto Conference Room

Shorenstein APARC
Stanford University
Encina Hall E301
Stanford, CA 94305-6055

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Joon Young Chung is a reporter at Yonhap News, a Korean news wire service, and has worked in various departments including the national desk, business desk and the North Korea desk for the past 14 years. Recently he has covered Inter-Korean dialogue and the Six-Party talks.

Joon Young Chung Visiting Scholar, Asia-Pacific Research Center, Stanford University Panelist

Shorenstein APARC
Encina Hall, Room E301
Stanford University
Stanford, CA 94305-6055

(650) 723-2408 (650) 723-6530
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Choongeun_Lee_1.jpg PhD

Choongeun Lee is a Research Fellow at the Science & Technology Policy Institute(STEPI, Korea). Before joining STEPI, he worked at the Yanbian University of Science & Technology, Chinese Academy of Science, and Peking University in China. He received his B.A. and Ph. D in engineering from Seoul National University in Korea, and Ph.D. in education from Beijing Normal University in China.

His research has concentrated on science and technology systems (S&T) and policy of North Korea, China, and other transition countries. His recent publications include Linking strategy of military and civil innovation system based on recent change in security posture on Korean peninsula (2007, STEPI), Education and S&T System in North Korea (2006, Kyongin Publishing Co.), Nuclear Bomb and Technology in North Korea (2005, Itreebook), The S&T System and Policy of North Korea (2005, Hanulbooks), The S&T Cooperation of North Korea-China and its Implication (2005, North Korean Studies Review).

Choongeun Lee Visiting Scholar, Asia-Pacific Research Center, Stanford University Panelist
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By the turn of this century, sub-Saharan Africa had experienced 25 years of economic and political disaster. While "economic miracles" in China and India raised hundreds of millions from extreme poverty, Africa seemed to have been overtaken by violent conflict and mass destitution, and ranked lowest in the world in just about every economic and social indicator. In the May/June 2008 issue of the Boston Review, economist Edward Miguel tracks comparably hopeful economic trends throughout sub-Saharan Africa and suggests that we may be seeing a turnaround. Nine experts, including Rosamond L. Naylor and Jeremy M. Weinstein, gauge Miguel's optimism.

"The global food crisis exposes the fragility of sub-Saharan economic progress," writes Rosamond Naylor. "Although the overall economic situation in sub-Saharan Africa appears to have improved in recent years, any discussion about a sustained turnaround for the region must consider the rural sector and the role of agricultural development in improving the life of the poor."

"We might ask whether Africa's new democracies are democracies at all," says Jeremy Weinstein. "While the small (but unnoticeable) uptick in Africa's recent economic growth is not in dispute, its causes are not entirely clear."

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CISAC faculty member John W. Lewis argues in the Boston Globe that the North korea diplomatic initiative launched by President Bush in October 2006 will come to naught if the administration fails to follow through on promises it made to encourage Pyongyang to destroy its nuclear weapons programs.

The diplomatic initiative launched by President Bush in the wake of North Korea's nuclear weapon test in October 2006 has made substantial progress in rolling back the nation's drive to become a nuclear power.

That success, however, will be for naught if the administration fails to follow through on promises it made to encourage the Democratic People's Republic of Korea to destroy its nuclear weapons programs. The United States must honor its commitments in order to begin normalizing relations with North Korea.

Unfortunately, a recent barrage of criticism against the administration's policy aims to derail this process. Even as Pyongyang has taken more than 80 percent of the required steps to disable its Yongbyon nuclear weapons facilities, the fulfillment of US obligations has stalled.

The critics who want to stymie all forward movement, are, for the most part, the same specialists who can take credit for jettisoning in 2003 the agreement with North Korea, known as the 1994 Agreed Framework, which had stopped its plutonium production for almost a decade. Only after the collapse of the Agreed Framework did the North Koreans process the fissile material needed to build and test nuclear weapons. Three years later, in 2006, the president adopted a more realistic policy that is now under attack.

Many of the policy's critics denounce a declaration of the North's nuclear programs that has not yet been finished and argue that we must have clarity about North Korea's role in the construction of a Syrian nuclear facility and its uranium enrichment path to nuclear weapons.

Whatever the role of Korea in the Syrian reactor project, that facility no longer exists. Israel destroyed it last September.

Last year, the United States downgraded from medium to low its confidence level that North Korea continues to pursue a uranium enrichment program. In October, Pyongyang allowed US inspectors into a missile factory, where it said that aluminum tubes suspected of being used in that program were being remade into missile parts. North Korea handed over aluminum samples that later showed traces of enriched uranium, but analysis was inconclusive.

The United States apparently has secured Pyongyang's agreement to pursue these types of "clarifying" activities. Moreover, China has agreed on the importance of a verification regime aimed at assuring a "complete and correct" declaration, and a key goal of the next round of talks would be to fashion that regime.

Recent developments are even more impressive. On May 8, the North Koreans passed to a US State Department official a trove of 18,822 pages of operating records for the Yongbyon 5MWe reactor and reprocessing plant, which date back to 1986. That is 18,822 pages more than we ever had before, and begins a verification process previously impossible.

Also, the International Atomic Energy Agency and US nuclear experts have overseen the shutdown and continuing disablement of all key plutonium production facilities at Yongbyon. Discussions have been held to ship out the monitored unused reactor fuel rods.

If diplomacy is to succeed, Washington needs to begin delivering on some of the promises it has made as part of the Six-Party agreements. It must move toward normalizing relations with Pyongyang: That means beginning "the process of removing the designation of the DPRK as a state-sponsor of terrorism" and starting to "advance the process of terminating the application of the Trading with the Enemy Act with respect to the DPRK."

We know that North Korea seeks better relations with the United States to create the environment essential to facilitate economic recovery, give it more diplomatic space, and smooth the way for an upcoming political succession. Since the New York Philharmonic concert in Pyongyang last February, it has begun portraying the United States in a more positive light to its own people, laying the groundwork for a major breakthrough in relations with the United States.

This breakthrough is needed if the United States is to achieve its ultimate objective: to cap, roll back, and completely eliminate the North's nuclear weapons program.

Critics in Washington, like those in Pyongyang, are afraid of exploring the future and only want to cling to the past. That isn't the way out.

John W. Lewis, professor emeritus at Stanford University, is coauthor of "Negotiating with North Korea: 1992-2007."

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New Beginnings, a nonpartisan policy study group of former senior U.S. officials and other experts on Korea, will discuss the results of President Lee's visit and the prospects for forging a real partnership with South Korea at the World Affairs Council, San Francisco on June 3.

Panelists:

Michael H. Armacost, former U.S. Ambassador to Japan and the Philippines, and former Under Secretary of State for Political Affairs; currently the Shorenstein Distinguished Fellow, Asia-Pacific Research Center (APARC), Stanford University

Evans J.R. Revere, President of the Korea Society, and former Principal Deputy Assistant Secretary of State for East Asian and Pacific Affair

Gi-Wook Shin, Director of Shorenstein APARC and Professor of Sociology, Stanford University

Daniel C. Sneider, Associate Director for Research, Shorenstein APARC, Stanford University, and formerly a foreign affairs correspondent and columnist

David Straub, Pantech Research Fellow at Stanford's Shorenstein APARC, and a former State Department Korean affairs director

Bruce Pickering, Executive Director of the Asia Society Northern California (moderator)

This event is co-sponsored by the Asia Society of Northern California and World Affairs Council.

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Shorenstein APARC is pleased to announce that Alisa Jones has been chosen as the 2008-2009 Northeast East Asia History Fellow.

Alisa Jones received her MA from the School of Oriental and African Studies, University of London and her PhD from the University of Leeds. She has recently collaborated on various book projects addressing the role of history textbooks, historiography, and popular culture in shaping public memory and national identities across East Asia.

As the Northeast Asia History Fellow, Alisa Jones will be a resident at the center for one academic year. During her year at the center, she will be researching on issues of historical memory, identity, conflict and reconciliation in the Northeast Asian region. She will also teach a credited Stanford lecture or seminar course through the university's center for East Asian and present a lecture on her research topic.

This fellowship was made possible through the generosity of the Northeast Asia History Foundation

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Shorenstein APARC
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Northeast Asian Fellow, 2008-09
Jones,_Alisa.jpg MA, PhD

Alisa Jones received her MA from the School of Oriental and African Studies, University of London, and her PhD from the University of Leeds. She specialized in the history of modern and contemporary China with secondary interests in politics and education, writing her doctoral dissertation on history education policy and praxis in the post-Mao reform-and-opening period.

Recently, Jones collaborated on book projects that address the roles played by history textbooks, historiography, and popular culture in shaping public memory and national identities across East Asia and the ways in which the past has been contested in various domestic and international arenas. She is currently working on several related projects, examining the goals and content of history and citizenship education as well as the ways in which other public and private mechanisms (such as the legal system, patriotic campaigns, the media, the internet) have been used and abused to define the parameters of acceptable debate about the past and the claims on the citizens of the present and future it represents.

While at Shorenstein APARC, she will be researching and teaching on issues of historical memory, identity, conflict and reconciliation in the Northeast Asian region.

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Ten 2008 POSCO NGO Fellows were selected by the Fellowship admission committee during the second POSCO NGO Fellowship Conference held on May 1 and 2 at the University of British Columbia, Vancouver.

George Washington University:

Ms. Gyung Lan Jung, Center for Peaceful Future of Korea

Mr. Hyun-Mo Choi, Korea Migrant Workers' Human Rights

Indiana University:

Mr. Seoung-Hwan Jeon, National Council of YMCAs of Korea

Mr. Jae-Seok Kim, Gwangju Citizen's Coalition for Economic Justice

Columbia University:

Mr. Tae Ho Lee, People's Solidarity for Participatory Democracy

Mr. Boyoun Joung, Korea Youth Corps

University of British Columbia:

Ms. Jeong Sook Park, Korean Women Link

Ms. Hee-Seon Jeong, Seocho Volunteer Center

Stanford University:

Ms. Hye-Jeong Kim, Korea Federation for Environmental Movement

Mr. Hyun Gon Jung, Korean Council for Reconciliation and Cooperation

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