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Over the last 15 years the world's largest developing countries have initiated market reforms in their electric power sectors from generation to distribution. This book evaluates the experiences of five of those countries - Brazil, China, India, Mexico, and South Africa - as they have shifted from state-dominated systems to schemes allowing for a larger private sector role. As well as having the largest power systems in their regions and among the most rapidly rising consumption of electricity in the world, these countries are the locus of massive financial investment and the effects of their power systems are increasingly felt in world fuel markets. In-depth case studies also reveal important variations in reform efforts. This accessible volume explains the origins of these reform efforts and offers a theory as to why - despite diverse backgrounds - reform efforts in all five countries have stalled in similar ways.

-The first study to cover the big emerging economies of China and India whose development will be crucial to world energy markets

-Comprehensive up-to-date reviews and assessments allow readers to learn easily about diverse reform experiences

-Rigorous case study analysis follows sound political science methods without jargon

Contact Rose Kontak or the publisher for purchase.

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A delegation from the Democratic People's Republic of Korea visited the San Francisco Bay Area March 1-2. Led by Vice Foreign Minister Kim Kye Gwan, the DPRK delegation stopped here on the way to New York for official discussions with Assistant Secretary of State Christopher Hill, as part of the initial steps for implementing the Six-Party Talks' Joint Statement of September 2005. While in the Bay Area, the DPRK delegation was hosted by a group led by John W. Lewis, who heads Stanford's Project on Peace and Cooperation in the Asia Pacific Region and who has visited North Korea many times.
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Daniel C. Sneider
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The six-party agreement reached last week in Beijing to cap North Korea's nuclear program was a triumph for diplomacy. But contrary to much of the conventional wisdom in recent days, the fruits of the victory fall mostly to the North Koreans.

In the short term, the deal will halt the country's production of nuclear materials, limiting its ability to expand a nuclear arsenal tested in October. But for this concession, the North Koreans get to keep that arsenal intact, at least for now, and stand to make significant economic and political gains in relations with the United States, China and South Korea.

Some critics say the Beijing agreement is a lesser version of "the Agreed Framework" reached in 1994 by the Clinton administration, later cast aside by President Bush. Former Clinton-era Defense Secretary William Perry, speaking Tuesday at the Asia Society, characterized the new agreement as "thin gruel," while backing it as "a small but a very important step forward."

The ultimate judgment will await the uncertain implementation of numerous crucial, but still vaguely defined, steps down the road. The North Koreans are certain to exploit every ambiguity in the text and to drag out the phase that calls for actual dismantlement of their nuclear program and weapons.

Unfortunately, the process that led to this moment suggests that this will not go well. Contrary to the administration's version of events, Pyongyang was not dragged to this deal by pressure -- not from Washington and not from North Korea's angry patrons in Beijing.

"We don't have the North Koreans on the ropes," a former senior U.S. intelligence analyst who has watched that closeted country for decades said. "We don't have them on the run."

On the contrary, there is ample evidence that this agreement is yet another demonstration of North Korea's uniquely successful brand of negotiation via escalation: a use of brinkmanship and willingness to go up to and over the line that converts weakness into leverage.

Against that approach, the Bush administration's preference for using tools of coercion and threat, even of pre-emptive war, failed. If anything, it brought about the very opposite outcome than the United States envisioned: it encouraged North Korea to move even more rapidly to develop and test a nuclear weapon.

The pattern of brinkmanship was already clear during the Clinton years -- what Korea expert Scott Snyder famously termed "negotiating on the edge." When confronted, Snyder noted, the North Koreans typically responded by accelerating the crisis, unworried by the consequences. The fear of appearing weak has underlined all North Korean behavior.

The Bush administration came into office almost seeking a confrontation, as the president and many of his advisers were convinced the 1994 deal was fatally flawed. Ironically, the North Koreans thought they were on the verge of strategic breakthrough, after a deal to halt missile tests and preparations for President Clinton to visit Pyongyang in the final weeks of his administration. An improved relationship with the United States would balance the power of its Chinese patron, whom North Korea deeply distrusts, and give it legitimacy in an ongoing struggle with South Korea for leadership on the Korean peninsula.

Instead Bush froze the Clinton framework and sought a new, tougher approach. In January 2002, Bush delivered his famous State of the Union depiction of North Korea as a member of the "axis of evil," along with Iran and Iraq. That October, U.S. negotiators confronted Pyongyang with accusations of cheating by pursuing a clandestine uranium-enrichment program.

The 1994 agreement collapsed amid a tit-for-tat series of escalatory moves -- beginning with a U.S. cutoff of heavy fuel oil and leading to North Korea ousting international inspectors, withdrawing from the Nuclear Non-proliferation Treaty and restarting its reactor and recycling facility to produce plutonium. Bush vowed that the United States would not "be blackmailed."

Meanwhile, preparations for war in Iraq were mounting. The Bush administration was convinced the awesome display of U.S. power would successfully intimidate the other two points on the axis of evil, North Korea and Iran.

"We are hopeful," then senior State Department official John Bolton dryly said as the invasion came to a close, "that a number of regimes will draw the appropriate lesson from Iraq -- that the pursuit of weapons of mass destruction is not in their interest."

American threat

The North Korean officials drew an entirely different conclusion: they could not afford to seem weak in the face of what they perceived as an American threat to terminate their regime.

"Only tremendous military deterrent force powerful enough to decisively beat back an attack supported by ultra-modern weapons can avert a war and protect the security of the country," said an official statement issued April 6. "This is the lesson drawn from the Iraqi war."

A drawn-out process of negotiations began later that month, beginning with a three-way meeting in China and moving that summer to six-party talks that also included South Korea, Japan and Russia. The U.S. position was to deny Pyongyang what it wanted most -- direct talks with Washington -- and to demand verified dismantlement of its nuclear program, on the model of Libya, before any rewards, economic or political, were provided.

As the war in Iraq wore on, and the threat of military force became less credible, the administration looked for other coercive tools. It forged a multinational agreement to intercept suspicious cargoes and launched a crackdown on illicit North Korea trafficking in drugs and counterfeit currency and goods, which are believed to be the main source of support for the regime's elite.

The North Koreans countered with their own demands, offering a plan to freeze their nuclear program, with compensation, followed by a coordinated series of reciprocal steps leading toward eliminating the program. Their offers were accompanied by statements that they already had the bomb and were prepared to test it.

When the Bush administration started its second term in 2005, it attempted to escalate pressure -- this time with charges that North Korea was exporting nuclear materials to the Middle East and calls for China to put pressure on its difficult clients. Pyongyang moved to unload a second set of spent fuel from its reactor and reprocess it -- American experts believe North Korea created six to eight bombs worth of plutonium after 2002.

Agreement sours

A return to the bargaining table in September 2005 yielded an agreement on the principles that would underlie a denuclearization of the Korean peninsula. But that sign of progress disappeared within hours as both sides sparred over the meaning of a pledge to build nuclear power reactors for North Korea as compensation for it dismantling its nuclear weapons.

The imposition of measures to curb the flow of North Korean "illicit" money through Chinese and other banks added to the acrimony. Administration officials described this as a legal issue driven by Treasury Department efforts to curb counterfeiting. But as Bush admitted recently, it was used as leverage in the nuclear talks.

Throughout the past year, Bush administration officials expressed confidence that these measures were causing serious pain to the North Korean leadership. Some even talked boldly of "turning out the lights" in Pyongyang through such sanctions.

But Pyongyang could read the news from Iraq as well as any American voter. Instead of having its lights turned out, North Koreans put up their own light shows. On July 4, a date chosen with apparent intent, they carried out a test of a battery of ballistic missiles, in defiance of warnings, including one from China. A U.N. resolution condemning the action -- and other steps, including a South Korean suspension of food and fertilizer aid and Chinese attempts to slow trade -- followed.

In October, again in defiance of pressure from all fronts, the North Koreans tested a nuclear device. This prompted another U.N. resolution, backed by China, to impose limited economic sanctions. But although China was clearly angered, there is little evidence it moved to cut off the lifeline of trade, particularly energy supplies.

North Korea's willingness to cross what everyone believed was a "red line" changed the equation permanently. It allowed Pyongyang to return to the six-party talks, stalled for more than a year, but now from a position of strength. At the meeting in December, the North Koreans refused to discuss any other issues unless the U.S. financial sanctions were removed. North Korean officials hinted of preparations for a second test.

The United States blinked, agreeing to hold long-sought direct talks, held in Berlin in mid-January. The talks yielded the outlines of the Beijing deal but also a separate U.S. concession to lift the financial measures within 30 days of signing a broader deal.

The Beijing agreement more closely resembles North Korea's June 2004 freeze proposal than it does the U.S. insistence that dismantling nuclear weapons precede any substantial rewards. Clearly, this is a deal the Bush administration would not have made, says Scott Snyder, "if it were not tied down with so many other problems."

North Korea made its own concessions in the Beijing agreement. But "it doesn't necessarily mean Pyongyang is backing down or preparing to abandon its nuclear weapons," argues Kim Sung Han, a senior analyst at the South Korean Foreign Ministry's research institute.

N. Korea's rewards

Administration officials point out that the initial freeze of North Korea's nuclear program, to be implemented in two months, yields only minor compensation, about 50,000 tons of heavy fuel oil. But that is not what Pyongyang sees as its real reward. The lifting of financial measures will facilitate its rapidly growing trade with China and South Korea. Even more important, the South Korean government has already signaled it will now lift the ban on large-scale fertilizer and food shipments -- which are crucial to North Korea's spring planting.

Less visible, but no less vital, the North Koreans are trying to hold off a conservative comeback to power in the South Korean presidential election in December. A North-South summit meeting may take place, which would be part of an effort by the progressive South Korean government to shore up its support.

Ultimately, the Beijing agreement may yield a trade of nuclear facilities for economic and political relations, leaving the nuclear arsenal capped but still intact. For some U.S. experts, that is sufficient.

"It will limit the size of the nuclear arsenal and the amount of bomb fuel," observes former Los Alamos nuclear laboratory director and Stanford scholar Siegfried Hecker. And that, he says, should make it less likely North Korea would sell its nuclear materials or expertise to Iran.

The bargain made in Beijing flows inexorably from North Korea's skillful playing of the escalation game. But it may be the best outcome possible, given that North Korea has already crossed the nuclear threshold and that the Bush administration has squandered U.S. power in the deserts of Iraq.

Reprinted with permission from the San Jose Mercury News.

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Co-Sponsored by The Center for Democracy, Development, and the Rule of Law;

the Stanford Project on Human Rights Diplomacy, the Project on Peace and Cooperation in the Asian-Pacific Region, and the Center for International Security and Cooperation

Dr. Dan Wei will give an overview of the present state of legal reform in China, and will cover such topics as the death penalty and other criminal procedure reforms, and measures to insure the rights of detainees and prisoners.

He is a professor at the Institute for Procuratorial Theory of the Supreme People's Procuratorate of China, one of the four principal branches of the Chinese judicial system. He was a Fellow of the Danish Institute of Human Rights in 2002, and he travels and speaks widely in China and overseas on topics related to the development of Chinese law and practice.

Since receiving a PhD from Wuhan University in 1999, he has published 5 books and more than 40 articles in the field of criminal justice. His book, Comparative Studies on the Crimes of Trafficking in Persons, published by The Law Press of China in June 2004, is the first specialized Chinese publication on the topic of human trafficking.

As the deputy editor in chief of Chinese Criminal Science, he has transformed the journal into the most authoritative publication in the field of criminology in China. The journal now boasts more than 20,000 readers. The State Council granted him a Special Award for Distinguished Service in 2004.

Philippines Conference Room

Dan Wei Professor Speaker Institute for Procuratorial Theory of the Supreme People's Procuratorate of China
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The goal is to identify external interventions capable of reducing constraints to integrate poor farmers into modern supply chains (MSCs) and do so by experimenting with different combinations of public-private partnerships. We also will put into practice our belief that if small poor farmers are provided good information; strong incentives; and a favorable institutional environment, they can become viable MSC suppliers.

We do so in Senegal, Madagascar, India and China by:

  • developing innovative ways to build private-public partnerships;
  • providing farmers information, incentives and institutional support that they can use to become effective horticultural suppliers; and
  • by using a unique experimental approach.

The project will offer farmers a way out of poverty and also will identify the constraints keeping farmers from connecting to MSCs. This information will let us create a set of Best-Practice Models. Our private partners will use these Best Practice Models to scale up across thousands of communities.

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Scott Rozelle

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Laurence J. C. Ma is an urban geographer with an interest in the development of Chinese cities, past and present. He was born in China and received his B.A. from National Taiwan University and Ph.D. from the University of Michigan. He taught for 29 years at the Department of Geography and Planning, University of Akron, Akron, Ohio before taking early retirement in 2000. He has edited and written nine books, published a number of articles in various journals and edited two special journal issues on Chinese cities. He has been on the editorial board of nine journals published in the U.S., U.K., the Netherlands, China and Taiwan and has served as a consultant to the United Nations Development Programme in China. He resides in Fremont, CA.

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10,000 Shovels examines China's breakneck growth through a short documentary that integrates statistics, video footage, and satellite images. The documentary focuses on China's Pearl River Delta region while the accompanying teacher's guide takes a broader perspective, exploring many current national issues.
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The Stanford Program on International and Cross-cultural Education (SPICE) has just been named the winner of the 2007 Franklin R. Buchanan Prize for the curriculum unit China's Cultural Revolution. The Buchanan Prize is awarded annually by the Association for Asian Studies and recognizes high-quality curriculum materials on Asia. This is the third time that SPICE has won the Buchanan Prize since it was established in 1995.

The Cultural Revolution in China (1966-76) was a decade of enormous change and upheaval with a lasting impact on the country, its citizens, and the world. China's Cultural Revolution teaches students about the social, cultural, educational, political, and economic changes through hands-on activities requiring critical thinking skills.

This unit was written by SPICE Curriculum Specialists, Stefanie Orrick Lamb and Greg Francis.

The Association for Asian Studies publishes the Journal of Asian Studies and is the largest scholarly association on Asian countries, cultures, and regions in the world.
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