-

Abstract:

What explains the success and failure of institution-building under foreign occupations? Reo Matsuzaki, post-doctoral fellow at the Center on Democracy, Development, and the Rule of Law, examines this question by comparing the Japanese colonization of Taiwan and the American colonization of the Philippines, which produced contrasting institutional legacies despite the presence of similar initial conditions. He argues that two variables jointly play a significant role in determining variation in institution-building outcomes: the degree of discretionary power afforded to the occupational administration by its home government; and the strength of resistance to the institution-building effort by local elites in the occupied territory. He will present his research on foreign-imposed police reform in colonial Taiwan and the Philippines, and discuss the implications of his findings for contemporary state-building missions. 

Speaker Bio:

Reo Matsuzaki is a 2011-2012 post-doctoral fellow at CDDRL with a PhD in political science from Massachusetts Institute of Technology. His dissertation examines variation in institution-building outcomes within foreign occupations, particularly in the areas of police and education, through a comparison of the Japanese occupation of Taiwan (1895-1945) and the American occupation of the Philippines (1898-1941). While at CDDRL, he will be working to turn his dissertation into a book manuscript, as well as on a project examining the role of community policing in counter-insurgency campaigns.

Encina Ground Floor Conference Room

Reo Matsuzaki Post-doctoral Fellow, 2011-2012 Speaker CDDRL
Seminars
Paragraphs

We construct quarterly series of the revenues, expenditures, and debt outstanding for Japan from 1980 to 2010, and analyze the sustainability of the fiscal policy. We pursue three approaches to examine the sustainability. First, we calculate the minimum tax rate that stabilizes the debt to GDP ratio given the future government expenditures. Using 2010 as the base year, we find that the government revenue to GDP ratio must rise permanently to 40–47% (from the current 33%) to stabilize the debt to GDP ratio. Second, we estimate the response of the primary surplus when the debt to GDP ratio increases. We allow the relationship to fluctuate between two “regimes” using a Markov switching model. In both regimes, the primary surplus to GDP ratio fails to respond positively to debt, which suggests the process is explosive. Finally, we estimate a fiscal policy function and a monetary policy function with Markov switching. We find that the fiscal policy is “active” (the tax revenues do not rise when the debt increases) and the monetary policy is “passive” (the interest rate does not react to the inflation rate sufficiently) in both regimes. These results suggest that the current fiscal situation for the Japanese government is not sustainable.

All Publications button
1
Publication Type
Journal Articles
Publication Date
Journal Publisher
Journal of the Japanese and International Economies
Authors
Takeo Hoshi
Paragraphs

Japan leads, chased closely by South Korea, with China, on a vastly larger scale, not far behind. Not as mercantilist development states nor as threats to America’s high-tech industry, but rather as the world’s most rapidly aging societies.

A wave of unprecedented demographic change is sweeping across East Asia. The region is at the forefront of a trend towards longer life expectancy and declining birthrates, which, combined, yield a striking rate of aging. Japan already confronts a shrinking population. Korea is graying even more quickly. And although China is projected to grow for another few decades, demographic change races against economic development. Could China become the first country to grow old before growing rich? In Southeast Asia, Singapore also confronts a declining birthrate and an aging society. Increasingly, Asia’s aging countries look to its younger societies, such as Vietnam, Indonesia, and India, as sources of migrant labor and even wives. Those countries in turn face their own demographic challenges, such as how to educate their youth for a globally competitive
economy.

Held September 8–9, 2011 in Kyoto, Japan, the third Stanford Kyoto Trans-Asian Dialogue focused on demographic change in the region and its implications across a wide range of areas, including economies, societies, and security. Asia’s experience offers both lessons and warnings for North America and Europe, which face similar problems. Questions addressed included:
 

  • What are the interrelationships between population aging and key macroeconomic variables such as economic growth, savings rates, and public and private intergenerational transfers?
     
  • How and why do policy responses to population aging differ in Japan, South Korea, and across different regions of China?
     
  • What are the effects of demographic change on national institutions such as employment practices, pension and welfare systems, and financial systems?
     
  • What policies can or should be pursued to influence future outcomes?
     
  • How will demographic change affect security in the Asia-Pacific region?
     
  • How have patterns of migration impacted society and culture in East Asia, in comparative perspective?
     
  • How will demographic change influence the movement of people across the region and the prevalence of multicultural families?
     
  • What lessons can Asia, the United States, and Europe learn from each other to improve the policy response to population aging?
All Publications button
1
Publication Type
Policy Briefs
Publication Date
Journal Publisher
Shorenstein APARC
Paragraphs

The global balance of power is undergoing a gradual but dramatic shift. While the United States will likely remain a preeminent economic and geopolitical power, the long era of American hegemony is coming to an end. In particular, managing the rise of Asia will likely prove to be the central challenge of international politics in the 21st century. In the face of such striking change, rigidity threatens to make international organizations relics of a bygone era. A substantial update of the international organizational architecture is needed. As two of the world’s leading democracies and economic powers, there is much that the United States and Japan can contribute toward such an effort. This paper will examine how U.S.-Japan cooperation can reinvigorate and update international organizations to meet contemporary challenges.

The first section discusses distributional imbalance as a serious shortcoming of several major international organizations, most prominently the United Nations Security Council and the International Monetary Fund (IMF). Uneven representation can lead to needless tension and undermine the ability of international organizations to facilitate interstate cooperation. The major international organizations must be updated to reflect 21st century realities. The next section examines the economic and geopolitical rise of Asia and potential implications for institutionalized cooperation. Asia is a region with comparatively weak international organizations and inferior representation in universalistic institutions. Without deeper regional institutionalization and commensurate representation in global institutions, Asia’s rise may prove destabilizing for international cooperation. Accordingly, the paper then presents several policy prescriptions for how the United States and Japan can cooperate to update and reform the international organizational architecture.

All Publications button
1
Publication Type
Working Papers
Publication Date
Journal Publisher
Japan Center for International Exchange
Authors
Phillip Lipscy
Paragraphs

Health systems provide a rich field for testing hypotheses of institutional economics. The incentive structure of current healthcare delivery systems have deep historical and cultural roots, yet must cope with rapid technological change as well as market and government failures. This paper applies the economic approach of comparative and historical institutional analysis (Aoki, 2001; Greif, 2006) to health care systems by conceptualizing physician control over dispensing revenues as a social institution. The theory developed—emphasizing the interplay between cultural beliefs, interest groups, technological change, insurance expansion and government financing—offers a plausible explanation of reforms since the 1960s separating prescribing from dispensing in societies such as Japan, South Korea, Taiwan and China. Technological change and adoption of universal coverage trigger reforms by greatly increasing the social opportunity costs of physician over-prescribing and reshaping the political economy of forces impinging on the doctor–patient relationship.

All Publications button
1
Publication Type
Journal Articles
Publication Date
Journal Publisher
Journal of Institutional Economics, FirstView Article
Authors
Karen Eggleston
Paragraphs

Abstract:

US-Russia ballistic missile defense (BMD) cooperation can improve strategic stability between both countries, but this cooperation would pose a potential threat to China’s strategic security, especially if it is a closed and deep cooperation. The United States and Russia should make their bilateral cooperation an open regime, and let China and other countries join, so that improvement of US-Russia strategic stability is not based on the sacrifice of strategic stability with China and other countries. China and the United States may also cooperate on BMD in areas of early warning and mutual launch notification. The security costs of these cooperative measures are very low, and the benefits would improve stability, confidence, and mutual trust. Finally, BMD cooperation between the United States
and its East Asian allies (Japan and Taiwan) is threatening Sino-US strategic stability. The United States could improve Chinese confidence by increasing transparency about and limiting the performance of BMD systems.

All Publications button
1
Publication Type
Journal Articles
Publication Date
Journal Publisher
Asian Perspective
Authors
Authors
Tomi Brooks
News Type
News
Date
Paragraphs

Kenjiro Takenami, Director of Ruby Software Business Development Project at Fukuoka Prefectural Government, spoke to an audience at Stanford about the government’s success in promoting entrepreneurship in the Fukuoka region of Japan, at a seminar organized by the SPRIE-Stanford Project on Japanese Entrepreneurship (STAJE) on November 3rd, 2011.

In Takenami’s presentation, he discussed that Fukuoka now has over 800 local software and digital content companies with the number of companies increasing 20% annually. It is ranked 5th in Japan for the total number of software businesses and total software sales revenue. He described that in the past, Fukuoka had faced challenges in promoting entrepreneurship because of the lack of investment, mentors, and innovators. In an attempt to solve these challenges, the Fukuoka government created new programs that financed local start-up companies and supported venture capital funds. However, these programs failed to boost entrepreneurship and regional development.

Takenami revealed that the turning point for the Fukuoka government’s success was the decision to support research and development for Ruby, a dynamic, open source programming language developed in Japan. The government committed to build a community around the programming language and helped entrepreneurs and businesses develop new technologies that used Ruby. They launched multiple incubators for developers and held periodic conferences for the community members to inspire and learn from each other.

Fukuoka prefecture has a population of five million and a GDP of over 180 billion US dollars. The city of Fukuoka, which was selected as one of the “Hot Cities The Top 10” by Newsweek in 2006, has been attracting the attention of foreign investors. It is located on the northern tip of Kyushu and is geographically closer to China and South Korea than any other major Japanese city. Historically, it has been the hub for business and trade to continental Asia. The prefecture is ranked 2nd in Japan for the number of universities and colleges specializing in science and engineering, with approximately 7,000 graduates every year.

Takenami concluded the seminar by highlighting that eight times as many local companies in Fukuoka develop using Ruby since they began in 2008. He also shared success stories of companies which began in Fukuoka, but are now internationally known, such as Nautilus Technologies.

ABOUT THE Speaker

Kenjiro Takenami is Director of Ruby Software Business Development Project, Commercial and Industrial Policy Division of Fukuoka Prefectural Government and is responsible for the Fukuoka’s software industry development efforts. Takenami is the former Executive Director of the Fukuoka Center for Overseas Commerce in America, based in Silicon Valley.

Following the seminar, SPRIE-Stanford Project on Japanese Entrepreneurship (STAJE), Stanford Graduate Business School and US-Asia Technology Management, Stanford School of Engineering co-hosted the Fukuoka Ruby Night Event, an annual Ruby developer conference, organized by the Fukuoka Center for Overseas Commerce in America (FCOCA).


The video clips for the keynote presentations of this event can be found here.

Hero Image
IMG 5021
All News button
1
News Type
News
Date
Paragraphs

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.

Hero Image
TokyoStockExchange NEWSFEED
Tokyo Stock Exchange floor, January 2011.
Flickr/Merlijn Hoek
All News button
1
News Type
News
Date
Paragraphs

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:

Image
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.

Image
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.

Image
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.

All News button
1
Subscribe to Japan