Neither the Bush nor the Kerry campaign has chosen to make U.S. policy toward North Korea a central part of its election platform -- and for good reason. Both sides recognize that it may no longer be possible to peacefully resolve the dispute over that country's nuclear-weapons development, and a debate over whether to wage another controversial war would hardly appeal to the electorate.

The fundamental problem is that North Korea believes it needs a sizable nuclear arsenal. Politically, such an asset would transform the country into a regional power whose views on international issues must always be taken seriously. Militarily, the possession of a large number of atomic weapons would bolster North Korea's security by discouraging intimidation of the sort Washington employed in 1994, when it forced President Kim Jong Il to shut down his plutonium-based arms program.

Most compelling, however, is Pyongyang's financial situation. The North Korean economy is so dysfunctional that it cannot reliably generate enough wealth to sustain the state. Kim and his colleagues have dabbled in reform, but they apparently realize that the degree of liberalization necessary to produce strong GDP growth would coincidentally release a wave of popular animosity sufficient to wash the government away. Thus, the safest course of action is to leave the economy unreconstructed while securing a constant stream of foreign aid.

Since Pyongyang needs leverage to obtain this support, it is determined to amass a big nuclear force. The international community would then have no means of persuading North Korea to abandon its weaponry short of risking catastrophic war and would consequently be reduced to bribing the Kim government not to use its new capabilities.

Moreover, if the flow of aid were interrupted, Pyongyang could garner the foreign exchange it requires by selling its new technology, fissile materials or even a few of its bombs.

What this implies is that despite its rhetoric to the contrary, North Korea does not really want to trade its nuclear program for economic assistance and a security guarantee. Pyongyang would plainly prefer to embark on diplomatic talks with nuclear weapons in hand. This is why it cheated on the 1994 agreement by enriching uranium and why it resumed reprocessing plutonium in early 2003. But to realize his strategic aspirations, Kim must still prevent the United States, China, Japan and South Korea from forming a coalition that imposes crippling sanctions before his armament effort has reached fruition.

Driving wedges between the other regional powers is not as difficult as it might seem. Paradoxically, perhaps, the United States is the only relevant country that views the achievement by North Korea of significant nuclear status as absolutely unacceptable.

Tokyo and Seoul are worried about that eventuality but conversely fear the geopolitical instability and refugee crisis that would ensue if economic or military pressure caused the Kim regime to collapse. Beijing shares these immediate concerns and additionally worries about the longer-term possibility that a united Korean Peninsula might incline toward the United States.

Only by alleviating these anxieties can the U.S. government unite East Asia against North Korea.

Washington, however, is constrained by its own internal rift. On the one hand are those doves who want to exchange aid and a security arrangement for the termination of North Korea's nuclear projects, on the other are the hawks who oppose all diplomatic contact with the Kim government. The conflict between these two camps has paralyzed Bush administration policy, leaving Pyongyang more or less free to proceed with its nuclear gambit.

If the doves err in overestimating Pyongyang's flexibility, the hawks are guilty of the more serious mistake of thinking that a refusal to negotiate with mendacious states is an actual diplomatic strategy.

In fact, the talks advocated by the doves are an essential step toward the application of coercive force. It is only by offering reasonable deals, and having the Kim government reject them, that Washington can demonstrate to Beijing, Tokyo and Seoul that Pyongyang cannot be bought off with money and a verbal guarantee of its security. This recognition, in turn, is critical both to building a coalition against North Korea and, alternatively, to reducing the political costs of unilateral U.S. military action.

The better course has therefore always been to negotiate earnestly with Pyongyang in the hope that it would accede to a peace agreement while knowing that its failure to do so would facilitate the adoption of more assertive measures, if necessary, at a later date.

Yet rather than taking every opportunity to interact with Kim's representatives, the Bush administration has limited its diplomacy to desultory exchanges at multilateral conferences and only put forward a detailed settlement proposal in June. Pyongyang has exploited the opening created by this stubbornness fairly effectively. It has capitalized on anti-American sentiment in South Korea by persuading Seoul to cooperate economically and militarily while also prevailing upon Tokyo to resume large-scale food aid and seek an early exchange of ambassadors.

In the occasional six-party talks with delegations from China, Japan, Russia, South Korea and the United States, Pyongyang's objective has been to stall for time. Its diplomats have postponed specific meetings many times; then behaved so egregiously that the other participants were relieved when the North Koreans consented merely to engage in future negotiations. Those too, however, would soon be rescheduled.

Washington has inadvertently abetted these tactics through thoughtless insults -- canceling, for instance, informal exchanges between U.S. and North Korean officials at the last minute -- which Pyongyang could then cite as proof that the United States was not acting in good faith.

North Korea has also benefited from the awkward developments that inevitably arise when sensitive dialogues are delayed. Seoul's recent declaration that it had reprocessed a small volume of nuclear material is one such event; Pyongyang may use that admission to complicate the next round of six-party discussions. Thus the Kim government buys more time for its nuclear technicians to continue their work.

It is true that North Korea has committed some blunders over the past two years, but it has played its cards more adroitly than the United States. The members of a potential coalition are largely going their own way now, and the odds that those countries will unite behind any U.S. strategy, peaceful or otherwise, have diminished considerably.

So, unless the winner of the November election acts quickly and with better judgment than Washington has so far, the United States may soon be forced to choose between launching military strikes without foreign support and letting Kim attain the nuclear status he desires.

ROBERT MADSEN is a fellow at the Asia-Pacific Research Center, Stanford Institute for International Studies. He wrote this article for Perspective.

Our DNA contains the most intimate details of who we are -- including secrets even we don't know about ourselves. Should the government have control over our genetic information, when we have not been found guilty of any crime?

Proposition 69 would do just this. Privacy advocates from across the political spectrum have begun to raise red flags about this potential expansion of government power.

Six years ago, California's DNA and Forensic Identification Data Base and Data Bank Act gave the state the authority to collect the genetic material of felons convicted of violent crimes, such as murder, rape and other sexual offenses. The idea was to establish a database like the fingerprint and criminal record information bank that already exists.

California was not alone in incorporating DNA provisions into its penal code -- every state introduced DNA databases for the most serious crimes. But California's version lacked protections guaranteed elsewhere. Many states retained only the DNA "fingerprint" or profile and destroyed the original sample. California not only kept the full genetic information, but it also has steadily expanded the number of qualifying offenses.

Gov. Arnold Schwarzenegger signed a ballot argument in support of Proposition 69 in July. If approved by voters on Nov. 2, it would unleash the government to gather this information to a degree and among unprecedented numbers of people. Proposition 69 extends collection to every felonious offense and, within five years, requires every adult and juvenile in California arrested for -- but not convicted of -- a felony to provide the government with cells containing his or her complete genetic structure.

Proposition 69 does not stop there. It would apply retroactively, empowering the government to seek out individuals previously arrested for a felony but found not guilty, and require them to turn over their DNA.

The extension to all felony arrests means a radical expansion in the number of citizens deprived of control over their genetic material. Felonies range from computer hacking and shoplifting, to writing bad checks and fraudulently procuring services.

The numbers are significant. In his advance release of Crime in California 2003, state Attorney General Bill Lockyer reported in July that there were just over half a million felony arrests -- not convictions -- in the state. Under Proposition 69, all 507,081 would be required to relinquish their genetic material -- even though statistics show that approximately one third of those arrested would have the charges dismissed or be found not guilty in a court of law.

The idea that you could easily retract your DNA from this felony database is fiction. Once an individual is found to be innocent, he or she could apply to have material removed, but the state would not be required to do so. Following the initial hearing, no appeal would be allowed.

Perhaps of greatest concern is the very real possibility of error. A recent Stanford University study showed that even sophisticated laboratories exhibit up to a 3 percent error rate in the handling and coding of genetic material. Of the half a million citizens from whom DNA would be collected annually, 15,000 might have their name associated with the wrong sample. Even if the error rate was significantly less -- 3/10 of a percent -- there would still be 1,500 people associated with the wrong DNA sample. And it would be extremely difficult for citizens to find out about, much less rectify, such mistakes.

Proposition 69 shrouds the system in secrecy. It prevents citizens or the courts from obtaining information about the structure of the data bank or database, or the software program in operation. Simultaneously, it makes information available to private laboratories, third parties assisting with statistical analysis, auditing boards, attorney general offices, local law enforcement and federal DNA databases.

The safeguards against misuse are inadequate. The initiative limits the ceiling of liability and exempts government employees or third parties from further civil or criminal penalties. It fails to protect against the threat of felony arrests as a tool for interrogation or the use of felony charges as a way to collect DNA from particular populations.

Behind the immediate and obvious privacy concerns lie deeper issues: We don't yet know how genetic information can -- or will -- be used. So we don't know the full extent of the rights we will relinquish.

We know that genes provide information about parentage and familial relationships, propensity for particular diseases, and biological vulnerabilities. We don't yet know the link between genes and personality, how to clone individuals, or how genetic structures can be altered once their content is known. When these and other discoveries are made, and efforts are made to take advantage of them, it will be too late.

Even seemingly innocuous information appears different depending on context: Within two days of the attack on Pearl Harbor, the Census Bureau provided the military with a list of the number of Japanese Americans in specific neighborhoods. In less than 90 days, the Army "evacuated" 110,442 citizens from the West Coast. DNA contains far more information than simple ancestry.

Even as science wrestles with the implications of the Human Genome Project, there will be repeated efforts to create a universal database that catalogs our biological inheritance. But every attempt to expand this awesome power should be met with skepticism and careful discussion about the implications of giving up control over the very essence of our being. We need to think hard about where we draw the line. A system that captures innocent citizens' DNA, lacks transparency, and fails to adequately protect the gathered information against future misuse goes too far.

After an intensive selection process, the Asia-Pacific Research Center (APARC), Stanford Institute for International Studies at Stanford University has selected the first class of its APARC Fellowships for pre-doctoral scholars. Kaoru Shimizu and Joo-Youn Jung will be in residence during the 2004-2005 academic year. They will be named Takahashi Fellows in honor of Takahashi family whose generous gift made this fellowship possible.

Kaoru (Kay) Shimizu is a Ph.D. candidate in the department of political science. Her dissertation topic is "The Political Dynamics of Capitalism: Barriers to Reform in Japan and China" in which she adopts a political economy approach to compare the causes and resolution of non-performing loans in China and Japan.

Joo-Youn Jung is a Ph.D. candidate in the department of political science. In her dissertation she will be examining how and why the powerful bureaucratic states of China, South Korea, and Japan have changed in response to the powerful forces of financial crisis, non-performing loans, and banking reform and what impact these changes have had on efforts to implement urgently needed policy changes.

APARC looks forward to their joining us in the fall.

The Asia-Pacific Research Center (APARC), Stanford Institute for International Studies at Stanford University announces the winners of the 2004-2005 Shorenstein Fellowship. Drs. Jennifer Amyx and Soyoung Kwon will join APARC in the fall.

Jennifer Amyx received her Ph.D. from Stanford in 1998. An assistant professor of political science at the University of Pennsylvania, she is an expert on the politics of financial regulation and reform in the Asia-Pacific region. During her residence at APARC, she plans to complete her manuscript that analyze the regulation and reform of government-backed financial institutions in Japan.

Soyoung Kwon received her Ph.D. from University of Cambridge in 2003. Her doctoral dissertation focuses on the evolution of the North Korean political elite. It is a much under-researched topic and her work looks into different socialist societies, comparing different courses of change (and lack of change) in the state socialist societies. While in residence she will be focusing on developing her doctoral thesis into a monograph that will focus on the North Korean political leadership and its policy orientation.

APARC looks forward to their joining us in the fall.

San Francisco -- Offshoring is just one of many global forces impacting job creation and destruction in the Bay Area and cannot be viewed in isolation from the key trends enabling it, such as globalization, technology-driven improvements in productivity and business disintermediation. Efforts to prevent offshoring will not be successful and are likely to come at considerable economic cost, according to a new study released today.

Sponsored by Joint Venture: Silicon Valley Network, the Bay Area Economic Forum and the Stanford Project on Regions of Innovation and Entrepreneurship (SPRIE), with research and project support from global management consulting firm A.T. Kearney, the study analyzed global trends, regional capabilities and the Bay Area job market.

Findings from the study, the first regionally focused on the Bay Area, were based on 120 interviews, analysis of 9,000 job listings and other primary and secondary research.

The Bay Area already has more experience with globalization and offshoring than other parts of the U.S., the study reports. Bay Area manufacturers earn almost 60 percent of their revenues in overseas markets. Analysis done as part of the study revealed 94 percent of companies in the semiconductor and semiconductor equipment manufacturing and software clusters - two driving sectors in the Bay Area in terms of employment and payroll contribution - are already using offshore resources.

This does not mean all jobs are going offshore. The study also found one-in-four job postings for large companies in those sectors during April 2004 was for positions in the Bay Area.

"The research makes clear that global trends will force continued creation and destruction of jobs in the Bay Area. These trends can't be reversed. Policies and investment should be directed toward helping the region strengthen its core capabilities to compete effectively on a national and global basis" said Sean Randolph, President & CEO of the Bay Area Economic Forum.

The study calls for policymakers to maintain strong support for basic research, invest in education to ensure a competitive local workforce and to address vulnerabilities in the regional business environment including housing, transportation and business regulations that hinder local job creation. Business leaders need to support transition programs and consider investment in local employee development to meet their future job needs.

The study found the Bay Area is losing ground to other regions in the U.S. and overseas in three competitive capabilities: mass production, back-office (transactional) operations and product and process enhancement. The competitive erosion in the latter is new. It appears that the Bay Area is rapidly losing out to other regions in occupations associated with engineering focused on cost reduction, fine-tuning processes and expanding product features. These engineering jobs, along with manufacturing and administration-related occupations, are expected to decline as the skills required for those functions are sourced more cost effectively in other regions of the United States and abroad.

The study also identified five competitive capabilities that investors and business leaders believe are key strengths of the Bay Area. In addition to three capabilities traditionally linked to the region (entrepreneurship/new business creation, research in advanced technologies and bringing new concepts to market), the analysis pointed to two other competitive capabilities not always in the spotlight:

• Cross-disciplinary research - coordinating and integrating advanced learning across industries and scientific disciplines.
• Global integrated management - managing and coordinating globally distributed business functions and networks.

Jobs aligned with these five regional strengths, such as high-level research, strategic marketing and global business and headquarter management activities, are expected to experience solid growth.

"The findings confirm that the region should continue to attract talent and foster innovation, start-up activity and job creation, as technology companies are launched and commercialized," said Russell Hancock, President and CEO of Joint Venture: Silicon Valley Network.

The Bay Area's strengths make the region a leader in job creation in early stages of the business lifecycle, but its weaknesses lead to job growth outside the region in the later stages. As a result, the study says, the Bay Area will continue to incubate and develop new businesses, a process that has historically been the core growth engine for the local job market.

"Companies founded in the Bay Area will typically maintain the majority of their workforce in the region until their first products or services gain market traction and key business processes stabilize," said John Ciacchella, Vice President with A.T. Kearney. "However, as these companies expand and mature, many of the new jobs that stay local will focus on management of expanding business operations that are outsourced, offshored and distributed to other regions."

The Bay Area also is well positioned in the industries likely to spawn new technology

start-ups, according to the study's job market analysis and interviews. Beyond its leading role in information technology, the Bay Area has the highest concentration of biotechnology firms in the country and more nanotechnology firms than all countries except Germany.

"How jobs in a region are affected by global trends depends on the competitiveness of the region's capabilities," said Marguerite Gong Hancock, Associate Director of SPRIE. "Despite a rise in the capabilities of other entrepreneurial regions globally, the Bay Area continues to lead in many of the capabilities considered most necessary for innovation and new business creation"

The study findings will be presented at a public event on Thursday, July 15, at Stanford University, where a panel of business and community leaders will discuss the report's findings and implications and take questions from the audience. The panel will be moderated by Paul Laudicina, managing director of A.T. Kearney's Global Business Policy Council, and includes:

• Edward Barnholt (Chairman, President & CEO, Agilent Technologies)
• William T. Coleman (Founder, Chairman & CEO, Cassatt Corporation, and Vice Chairman, Silicon Valley Manufacturing Group)
• Anula K. Jayasuriya (Venture Partner, ATP Capital LP)
• William F. Miller (Professor Emeritus, Stanford Graduate School of Business)
• The Honorable Joe Nation, California State Assembly

BAY AREA ECONOMIC FORUM
Bay Area Economic Forum (www.bayeconfor.org) is a public-private partnership of senior business, government, university, labor and community leaders, develops and implements projects that: support the vitality and competitiveness of the regional economy, and enhance the quality of life of the regions residents. Sponsored by the Bay Area Council a business organization of more than 250 CEOs and major employers, and the Association of Bay Area Governments, representing the region's 101 cities and nine counties, the Bay Area Economic Forum provides a shared platform for leaders to act on key issues affecting the regional economy.

JOINT VENTURE: SILICON VALLEY NETWORK
Joint Venture: Silicon Valley Network (www.jointventure.org) is a nonprofit organization that provides analysis and action on issues affecting the economy and quality of life in Silicon Valley. The organization brings together new and established leaders from business, labor, government, education, non-profits, and the broader community to build a sustainable region that is poised for competition in the global economy.

STANFORD PROJECT ON REGIONS OF INNOVATION AND ENTREPRENEURSHIP
The Stanford Project on Regions of Innovation and Entrepreneurship (http://sprie.stanford.edu), or SPRIE, is dedicated to the understanding and practice of the nexus of innovation and entrepreneurship in the leading regions around the world. Current research focuses on Silicon Valley and high technology regions in 6 countries in Asia: People's Republic of China, Taiwan, Japan, Korea, Singapore and India. SPRIE fulfills its mission through interdisciplinary and international collaborative research, seminars and conferences, publications and briefings for industry and government leaders.