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Japan is known as a "non-litigious" or a "harmonious" society for its extremely low litigation rates per capita as an industrial country. Yet the nation commenced a large-scale judicial reform project in the 1990s that triplicates the number of lawyers, establishes graduate law schools, adopts a jury-like system to the criminal trials, and more. What is the cause of this reform? Has the nation transformed into the litigious society? This presentation will analyze the political economic aspect of this reform process and identify the main reason for the nation to commence this reform project in the 1990s.

Kaori Daimon is currently an assistant judge of Tokyo District Court in Japan and a J.S.M. candidate at Stanford Law School (Stanford Program in International Legal Studies). She got her LL.B. from University of Tokyo in 1998 and joined the civil case division of Tokyo District Court in 2000. Prior to coming to Stanford, she earned her LL.M. degree from Yale Law School in 2003.

Okimoto Conference Room, Encina Hall

Kaori Daimon Assistant Judge Tokyo District Court and JSM Candidate, Stanford Law School
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Landau Economics Conference Room A

Robert Madsen Speaker
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RSVPs are required for the buffet luncheon that will accompany this panel. Please RSVP to Debbie Warren at dawarren@stanford.edu or 650-723-2408 by Friday, April 9, 2004.

Philippines Conference Room, Encina Hall

His Excellency Vincent Siew Former Premier of Taiwan (1997-2000) Panelist
Michaek Kau Deputy Miniter of Foreign Affairs, Taiwan Panelist
Ramon Myers Senior Fellow Panelist Hoover Institution
Lawrence J. Lau Panelist
Michael H. Armacost Moderator
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Taiwan is a world premier manufacturing center, with many products leading in world market share, such as IC foundry (72.8%), Mask ROM (81.8%), WLAN (91%), CD-R Disc (79%), DVD-R Disc (82%) and others. In recent years, it has also performed well in patent productivity and S&T infrastructure. Currently, the challenge for Taiwan is to enter a new stage for economic development - to transform from a manufacturing-based economy in an innovation-based economy. What is the current status and prospects of Taiwan's industry technology innovation system? How does it perform? What are the gaps? What lessons have been learned from Taiwan's Ministry of Economic Affairs policies for public and private, university and industry networking?

As director general of the Department of Industrial Technology (DOIT) at the Ministry of Economic Affairs in Taiwan, Dr. Hwang is responsible for formulating industrial policy to upgrade technology levels in Taiwan. The DOIT works with research institutions, private companies and universities to implement Taiwan's annual Technology Development Program. Supported by a more than $5 billion annual budget, this program focuses on stimulating the development and transfer of knowledge-intensive technologies, upgrading R&D capabilities of research institutions, and promoting international scientific and technological cooperation across such key industries, as IT, biotech, materials, machinery, aerospace, communications and others. Since 1990, Dr. Hwang has led a distinguished career in government service in Taiwan's Ministry of Economic Affairs. He received a PhD in Information Engineering and MS in Computer Engineering from National Chiao-Tung University and a BS in Electronics Engineering from Chung Yuan Christian University.

Philippines Conference Room, Encina Hall

Dr. Jung-Chiou Hwang Director General Department of Industrial Technology, Ministry of Economic Affairs, Taiwan
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Mr. Siew began his civil service career at the Ministry of Foreign Affairs in 1962. He was soon appointed vice consul at the ROC?s Consulate General in Kuala Lumpur and then appointed Consul. He held the position of consul for 3 years. Once home, he became a section chief in the East Asian & Pacific Affairs Department at the Ministry of Foreign Affairs. In 1972 he rose to department director-general. Trade negotiations and market promotion were two areas to which he was particularly dedicated. As member of the ruling Kuomintang (KMT), Mr. Siew was elected in July 1988 to the KMT Central Committee. In June 1990 a new premier was appointed and the cabinet was reshuffled. Mr. Siew was appointed Minister of Economic Affairs. In November 1992, he helped to secure formal observer status for the ROC in the General Agreement on Tariffs and Trade (now the World Trade Organization.) In August 1997, soon after the National Assembly had completed a revision of the Constitution, the government reorganized the cabinet. President Lee Teng-hui appointed Mr. Siew premier. He took office in September of that year and held the position until May 2000. Mr. Siew has since retired from government office and spends his time as an ordinary citizen devoting his efforts to education and social welfare.

Vidilakis Dining Room, Schwab Residential Center, 680 Serra Street, Stanford University Campus

His Excellency Vincent Siew Former Premier of Taiwan (1997-2000)
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As seen in the previous sections, China's reformers, more than anything, have followed a
strategy based on providing incentives through property rights reforms, even though in China the shift to private ownership is today far from complete. The reforms started with the Household Responsibility System (HRS), a policy of radical decollectivization that allowed farmers to keep the residual output of their farms after paying their agricultural taxes and completing their mandatory delivery quotas. Farmers also began to exercise control over much of the production process (although in the initial years, the local state shared some control rights and in some places still do today). In this way the first reforms in the agricultural sector reshuffled property rights in an attempt to increase work incentives and exploit the specific knowledge of individuals about the production process (Perkins, 1994). In executing the property rights reforms, leaders also fundamentally restructured farms in China. Within a few years, for example, reformers completely broke up the larger collective farms into small household farms. In China today there are more than 200 million farms, the legacy of an HRS policy that gave the primary responsibilities for farming to the individual household. McMillan, Whalley and Zhu (1989), Fan (1991), Lin (1992) and Huang and Rozelle (1996) have all documented the strong, positive impact that property rights reforms had on output and productivity. 

In addition to property rights reform and transforming incentives, the other major
task of reformers is to create more efficient institutions of exchange. Markets-whether
classic competitive ones or some workable substitute-increase efficiency by facilitating
transactions among agents to allow specialization and trade and by providing information
through a pricing mechanism to producers and consumers about the relative scarcity of
resources. But markets, in order to function efficiently, require supporting institutions to
ensure competition, define and enforce property rights and contracts, ensure access to
credit and finance and provide information (John McMillan, 1997; World Bank 2002).
These institutions were either absent in the Communist countries or, if they existed, were
inappropriate for a market system. Somewhat surprisingly, despite their importance in
the reform process there is much less work on the success that China has had in building
markets and the effect that the markets has had on the economy.

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Food and Agricultural Organization
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Scott Rozelle
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Increasing population pressure and non-agricultural demand for land have far-reaching implications for the way in which land rights are defined and access to land is regulated with a society. Unless clear and enforceable legal provisions are in place to impose constraints on the behavior of individual actors, this process may hurt the poor and/or have undesirable impacts on productivity. However, many countries, especially in Africa, have found it difficult to bring about legal change. Using the 2003 Rural Land Contracting Law as a point of departure, we describe recent changes of land relations in China, assess how legal provisions relate to practice, and describe progress in implementing the law. We find surprisingly rapid progress in implementation which is driven by a combination of centrally sponsored dissemination and democratic control at the local level. Issues for future research are identified.

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Scott Rozelle
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Donald Kennedy
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The national debate over human embryonic stem cell research -- one that has pitted religious objections against the promise of major scientific and therapeutic advances -- has been reawakened by a dramatic advance that could have been made in the United States, but wasn't. That's because on Aug. 9, 2001, President Bush announced that only stem cell lines obtained before that date could be used in research supported by federal funds. This has virtually halted a vital area of medical science here because development of an equivalent level of private support will require many years. And that's why the new excitement comes from South Korea, not from this country. The stakes are high. Stem cells, which can be obtained from human embryos otherwise discarded at fertility clinics in the course of assisted reproduction, are capable of forming all of the tissues of the adult human body under the right circumstances. They are of enormous potential advantage in the treatment of Parkinson's disease, spinal cord injuries, Alzheimer's disease and diabetes. So what's wrong with the dozen or so old cell lines we have? The problem is that most of the approved lines are unavailable, or otherwise guarded by murky intellectual property claims. The way they were made and their limited genetic diversity limit their therapeutic utility. More important, new technology has taken us beyond their capacity. The recent experiments performed in South Korea have produced a robust line of stem cells, derived from blastocysts that were produced by activating eggs taken from female volunteers with nuclei taken from body cells of the donor. This process, called somatic cell nuclear transfer, is viewed by some as akin to cloning people, which no one in the scientific community favors. Instead, it provides a way to explore the early processes of human development and develop novel ways of understanding the basis for genetic predisposition to late-onset diseases. It is essential research, and it is needed here. Yet if the congressional opponents of stem cell research have their way, a bill already passed by the House and now being considered in the Senate would make such work a crime. In South Korea, cloning for reproductive purposes is against the law. But this work, plainly aimed at scientific and therapeutic purposes, was encouraged and supported by the government. If we decide to discourage or even criminalize such experiments here, they will be done elsewhere -- and the benefits will be reaped by others. One option in this country is to approach a solution at the state level. Some states have passed laws that make cloning people illegal but allow cloning stem cells -- an important distinction that Congress has so far been unwilling to make. And some states have developed the means for raising funds to support the kind of research that now cannot be done with federal funds. A forthcoming ballot initiative in California would appropriate $350 million each year to support stem cell research. It would create a California Stem Cell Research and Cures Fund, to be distributed by an Institute for Regenerative Medicine, overseen by an independent citizens committee selected from academic and research institutions. The funding plan rests on the authorization of a $3 billion general obligation bond issue. For the first five years, a positive tax revenue stream generated by the initial expenditures will make it possible not to burden the state's general fund while it recovers from its present economic stress. The California experiment is an interesting one. As Californians and scientists, we hope for its success. But we also hope that it will be a signal for other citizens -- that there are domestic alternatives to a national policy that threatens to drive an important and valuable research activity overseas. A California resolution would be nice for us, and for the California economy. But if we can't find a solution that permits stem cell research at the federal level, the result will be costly for our national health.

  • DAVID BALTIMORE is president of the California Institute of Technology;
  • PAUL BERG is a professor of biochemistry at Stanford University;
  • DONALD KENNEDY, former Stanford president, is editor-in-chief of Science magazine; and
  • IRV WEISSMAN is a professor of cancer biology at Stanford. They wrote this column for the Mercury News.
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Philippines Conference Room, Encina Hall

Department of Political Science
Stanford University
616 Serra Street
Stanford, CA 94305-26044

(650) 723-2843 (650) 725-9401
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Senior Fellow at the Freeman Spogli Institute for International Studies
William Haas Professor in Chinese Politics
jean_oi_headshot.jpg PhD

Jean C. Oi is the William Haas Professor of Chinese Politics in the department of political science and a Senior Fellow of the Freeman Spogli Institute for International Studies at Stanford University. She is the founding director of the Stanford China Program at the Walter H. Shorenstein Asia-Pacific Research Center. Professor Oi is also the founding Lee Shau Kee Director of the Stanford Center at Peking University.

A PhD in political science from the University of Michigan, Oi first taught at Lehigh University and later in the Department of Government at Harvard University before joining the Stanford faculty in 1997.

Her work focuses on comparative politics, with special expertise on political economy and the process of reform in transitional systems. Oi has written extensively on China's rural politics and political economy. Her State and Peasant in Contemporary China (University of California Press, 1989) examined the core of rural politics in the Mao period—the struggle over the distribution of the grain harvest—and the clientelistic politics that ensued. Her Rural China Takes Off (University of California Press, 1999 and Choice Outstanding Academic Title, 1999) examines the property rights necessary for growth and coined the term “local state corporatism" to describe local-state-led growth that has been the cornerstone of China’s development model. 

She has edited a number of conference volumes on key issues in China’s reforms. The first was Growing Pains: Tensions and Opportunity in China's Transformation (Brookings Institution Press, 2010), co-edited with Scott Rozelle and Xueguang Zhou, which examined the earlier phases of reform. Most recently, she co-edited with Thomas Fingar, Fateful Decisions: Choices That Will Shape China’s Future (Stanford University Press, 2020). The volume examines the difficult choices and tradeoffs that China leaders face after forty years of reform, when the economy has slowed and the population is aging, and with increasing demand for and costs of education, healthcare, elder care, and other social benefits.

Oi also works on the politics of corporate restructuring, with a focus on the incentives and institutional constraints of state actors. She has published three edited volumes related to this topic: one on China, Going Private in China: The Politics of Corporate Restructuring and System Reform (Shorenstein APARC, 2011); one on Korea, co-edited with Byung-Kook Kim and Eun Mee Kim, Adapt, Fragment, Transform: Corporate Restructuring and System Reform in Korea (Shorenstein APARC, 2012); and a third on Japan, Syncretism: The Politics of Economic Restructuring and System Reform in Japan, co-edited with Kenji E. Kushida and Kay Shimizu (Brookings Institution, 2013). Other more recent articles include “Creating Corporate Groups to Strengthen China’s State-Owned Enterprises,” with Zhang Xiaowen, in Kjeld Erik Brodsgard, ed., Globalization and Public Sector Reform in China (Routledge, 2014) and "Unpacking the Patterns of Corporate Restructuring during China's SOE Reform," co-authored with Xiaojun Li, Economic and Political Studies, Vol. 6, No. 2, 2018.

Oi continues her research on rural finance and local governance in China. She has done collaborative work with scholars in China, including conducting fieldwork on the organization of rural communities, the provision of public goods, and the fiscal pressures of rapid urbanization. This research is brought together in a co-edited volume, Challenges in the Process of China’s Urbanization (Brookings Institution Shorenstein APARC Series, 2017), with Karen Eggleston and Wang Yiming. Included in this volume is her “Institutional Challenges in Providing Affordable Housing in the People’s Republic of China,” with Niny Khor. 

As a member of the research team who began studying in the late 1980s one county in China, Oi with Steven Goldstein provides a window on China’s dramatic change over the decades in Zouping Revisited: Adaptive Governance in a Chinese County (Stanford University Press, 2018). This volume assesses the later phases of reform and asks how this rural county has been able to manage governance with seemingly unchanged political institutions when the economy and society have transformed beyond recognition. The findings reveal a process of adaptive governance and institutional agility in the way that institutions actually operate, even as their outward appearances remain seemingly unchanged.

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Director of the China Program
Lee Shau Kee Director of the Stanford Center at Peking University
Faculty Affiliate at the Stanford Center on China's Economy and Institutions
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Jean C. Oi
Tom Gold Professor, Sociology University of California, Berkeley
Ramon Myers Senior Fellow Hoover Institution

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Stanford University
Encina Hall, C147
616 Jane Stanford Way
Stanford, CA 94305-6055

(650) 724-6448 (650) 723-1928
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Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies
William L. Clayton Senior Fellow at the Hoover Institution
Professor, by courtesy, of Political Science and Sociology
diamond_encina_hall.png MA, PhD

Larry Diamond is the William L. Clayton Senior Fellow at the Hoover Institution, the Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies (FSI), and a Bass University Fellow in Undergraduate Education at Stanford University. He is also professor by courtesy of Political Science and Sociology at Stanford, where he lectures and teaches courses on democracy (including an online course on EdX). At the Hoover Institution, he co-leads the Project on Taiwan in the Indo-Pacific Region and participates in the Project on the U.S., China, and the World. At FSI, he is among the core faculty of the Center on Democracy, Development and the Rule of Law, which he directed for six and a half years. He leads FSI’s Israel Studies Program and is a member of the Program on Arab Reform and Development. He also co-leads the Global Digital Policy Incubator, based at FSI’s Cyber Policy Center. He served for 32 years as founding co-editor of the Journal of Democracy.

Diamond’s research focuses on global trends affecting freedom and democracy and on U.S. and international policies to defend and advance democracy. His book, Ill Winds: Saving Democracy from Russian Rage, Chinese Ambition, and American Complacency, analyzes the challenges confronting liberal democracy in the United States and around the world at this potential “hinge in history,” and offers an agenda for strengthening and defending democracy at home and abroad.  A paperback edition with a new preface was released by Penguin in April 2020. His other books include: In Search of Democracy (2016), The Spirit of Democracy (2008), Developing Democracy: Toward Consolidation (1999), Promoting Democracy in the 1990s (1995), and Class, Ethnicity, and Democracy in Nigeria (1989). He has edited or coedited more than fifty books, including China’s Influence and American Interests (2019, with Orville Schell), Silicon Triangle: The United States, China, Taiwan the Global Semiconductor Security (2023, with James O. Ellis Jr. and Orville Schell), and The Troubling State of India’s Democracy (2024, with Sumit Ganguly and Dinsha Mistree).

During 2002–03, Diamond served as a consultant to the US Agency for International Development (USAID) and was a contributing author of its report, Foreign Aid in the National Interest. He has advised and lectured to universities and think tanks around the world, and to the World Bank, the United Nations, the State Department, and other organizations dealing with governance and development. During the first three months of 2004, Diamond served as a senior adviser on governance to the Coalition Provisional Authority in Baghdad. His 2005 book, Squandered Victory: The American Occupation and the Bungled Effort to Bring Democracy to Iraq, was one of the first books to critically analyze America's postwar engagement in Iraq.

Among Diamond’s other edited books are Democracy in Decline?; Democratization and Authoritarianism in the Arab WorldWill China Democratize?; and Liberation Technology: Social Media and the Struggle for Democracy, all edited with Marc F. Plattner; and Politics and Culture in Contemporary Iran, with Abbas Milani. With Juan J. Linz and Seymour Martin Lipset, he edited the series, Democracy in Developing Countries, which helped to shape a new generation of comparative study of democratic development.

Download full-resolution headshot; photo credit: Rod Searcey.

Former Director of the Center on Democracy, Development and the Rule of Law
Faculty Chair, Jan Koum Israel Studies Program
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Larry Diamond
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Mr. Sun will try to establish a new research framework to analyze the monetary policy transmission mechanism. In this field, previous research has usually assumed that the banking sector would completely transmit the purpose of the central bank to the real sector, thus paying attention to the channels from the banking sector to the real sector. Because the transmission of monetary policy in the banking sector is the most important part of deciding the effectiveness of monetary policy, this research focuses on the transmission mechanism of monetary policy from the central bank to the banking sector. The concept of ?cushion storage reserve? was created by Mr. Sun and was introduced to this framework to analyze the comparison of reserve supply and reserve demand. Based on this concept and a related main formula, commercial banks? behaviors were divided into three reactive approaches -- sterilize, forbear, and adjust. According to the different kinds of reactions, monetary policy has different effects. This new analyzing framework makes the analysis of monetary policy operation more concise and effective. At the end of his paper, Mr. Sun will try to use this approach to explain the present monetary situation of China and Japan. Lunch will be provided for those who RSVP by 3/29/04.

Okimoto Conference Room, Encina Hall

Sun Guofeng APARC Visiting Fellow People's Bank of China
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