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In recent years, natural gas prices in the United States have gone from historic highs of over $12 per mmBtu in the summer of 2008, to under $2.50/mmBtu in 2012. While demand side factors – such as the crisis in global financial markets – were partially to blame, many would argue that the real story is on the supply side, where increased production of shale gas – a form of unconventional natural gas trapped in leafy shale rock – drove gas prices down across the continent. The impact of low gas prices was felt in the form of cheap electricity, heating, and feedstocks to consumers and industry, which in turn bolstered the economic recovery. As an added bonus, cheap gas displaced dirty coal in power generation, reducing carbon emissions and pollution.

It is no wonder then, that when a recent U.S. Energy Information Administration publication on world wide reserves of shale gas crowned China as the holder of the world’s largest shale gas reserves, many inside and outside the Middle Kingdom were intrigued and enthralled by the possibilities of what shale gas could mean for China – in terms of climate, pollution, quality of life – and what it could mean for the broader international gas trade.

In this upcoming EWG talk, we will highlight some of the current activities and future plans for unconventional gas development in China. We will focus on the political, institutional, and commercial forces at play, and discuss some of the potential upsides and pitfalls that China will encounter on the road to realizing its unconventional gas potential.

Stanford University

Joe Chang Speaker
Jonathan Strahl Speaker
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REAP's Technology and Human Capital conference was highlighted in the People's Daily, among the most widely read newspapers in China. The story outlines REAP's efforts to integrate new technologies to improve schooling outcomes for rural and underprivileged Chinese students.  

Read the full article here (in Chinese).

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China’s future economic growth is dependent on skilled and educated workers. However, recent studies have shown that only a little more than half of the students from poor, rural areas finish junior high school and enter academic or vocational high school. The low level of educational attainment of these students is not surprising given that China has a high level of poverty in rural areas, rapidly rising wages for unskilled work and a highly competitive education system. One problem behind the low rates of matriculation to high school is that, as early as grade 7, students may be misinformed about the returns to high school education and lack other career planning information and skills, such that they drop out before even graduating, lose motivation to perform well academically, and exclude high school from their future plans.

The purpose of this study is to explore the effectiveness of providing information and career counseling in reducing dropout, improving academic performance, and increasing the number of grade 7 students who plan to attend high school in China’s poor, rural areas. To meet this objective, we conducted a cluster-randomized controlled trial (RCT) using a sample of 132 junior high schools and roughly 20,000 students in 15 nationally-designated poor counties in Shaanxi and Hebei provinces. In the RCT we randomly selected and provided training for junior high school teachers to give students either a) information on the returns and costs associated with higher levels of schooling or b) career counseling to help students plan for their school and career options. We then evaluated whether students dropped out less, performed better academically, or planned to matriculate in academic and vocational high school more.

Richard and Rhoda Goldman Conference Room

Prashant Loyalka Assistant Research Fellow, China Institute for Educational Finance Research, Peking University. Research Affiliate, Rural Education Action Project. Speaker
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Connecting the Dots conference website

Stanford experts from a range of disciplines discuss the interconnections and interactions among humanity's needs for and use of water, food, energy, and environment. Drawing on their own research, the speakers illustrate and evaluate some of the ways in which decisions in one resource area can lead to trade-offs or co-benefits in others. Participants examine sustainable freshwater resources and uses in Africa, Asia, and the arid West. 

Panel: Africa - Water, Nutrition, Health and Poverty

China: Water, Food, Climate, and Policy


Frances C. Arrillaga Alumni Center

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There are currently 60 nuclear reactors under construction worldwide with nearly half of these projects being built in China. There is no doubt that East Asia is emerging as a leader in the international nuclear community where China and the Republic of Korea (ROK) are playing major roles as a result of their aggressive new plant build programs. Both China and South Korea present very interesting case studies where the former is rapidly building up domestic expertise in nuclear construction while the latter has gone one step further in capitalizing successfully on a nuclear export business. Both countries have relied heavily on external commercial support in building up this expertise. In the case of South Korea, the “Koreanization” of nuclear power took place in the 1980’s and 1990’s, first with a large number of Western builds and ultimately a complete indigenization of pressurized water reactor technology through a technology transfer with Combustion Engineering. The Chinese domestic nuclear program has been largely influenced by Western vendors as well; however, there has been significantly less emphasis on exporting the technology up to now as they master the imported technologies for their domestic program. The recent AP1000 technology transfer between Westinghouse Electric Company and China has opened up unique transnational learning opportunities between the United States and China where the lessons learned building the first AP1000 plants in China will be shared with the two U.S. utilities now embarking on new plant construction at the Vogtle and V.C. Summer sites, in Georgia and South Carolina, respectively. This talk will review both the historical experiences of exporting nuclear technology to the ROK and China, as well as the progress being made by these countries in absorbing the technology. Further, the AP1000 passive plant technology will be summarized as an example of the general trend for future designs in response to the reactor accidents at Fukushima Dai-ichi in March 2011. Finally, the advanced construction techniques being used to build AP1000 plants in both the U.S. and China will be highlighted along with their benefits in delivering new plants on schedule.


About the speaker: Dr Matzie is the former Senior Vice President and Chief Technology Officer for Westinghouse Electric Company and was responsible for all Westinghouse research and development undertakings and advanced nuclear plant development. He is also on the Board of PBMR Pty Ltd. and Chairman of the Board Technical Committee. In that role, he assures proper oversight of the design, safety, licensing, research and development, and quality aspects of the PBMR enterprise.

Previously, Dr Matzie was responsible for the development, licensing, detailed engineering, project management, and component manufacturing of new Westinghouse light water reactors and was also the Executive in charge of Westinghouse replacement steam generator projects and dry spent-fuel-canister fabrication projects. He became a Senior Vice President in 2000, when Westinghouse purchased the nuclear businesses of ABB. His career has been devoted primarily to the development of advanced nuclear systems and advanced fuel cycles, and he is the author of more than 120 technical papers and reports on these subjects.

CISAC Conference Room

Regis Matzie Chief Technology Officer (Former) Speaker Westinghouse Electric Corporation
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The collision between the Iridium 33 and the Cosmos 2251 shows space debris is becoming a significant threat to satellites. Concerns of the threat led to the IADC space debris mitigation guidelines. However, there is no way to compel or enforce compliance with the guidelines, and since implementing some guidelines can be expensive, they are
frequently not followed. Moreover, the current legal framework is unable to determine who is liable for losses in an on-orbital collision. A space surveillance data sharing committee is proposed to solve the liability problem. Under the proposed liability rules, satellite operators would be liable for the debris they created. Insurance companies will step in to cover such risk. Therefore, there would be a financial incentive for them to adopt the debris mitigation
guidelines.


About the speaker: Ting Wang is a postdoctoral fellow at CISAC. His research concerns on space debris problems, and ASAT weapons. Before coming to CISAC in 2011, he was a postdoctoral fellow at the Judith Reppy Institute for Peace and Conflict Studies at Cornell University. He received a PhD at the Beihang University in China. His PhD dissertation was titled "Orbital Debris Evolution and Threat to Spacecraft."

He also holds a B.A. in aerospace engineering from Beihang University and has worked at the Shanghai Institute of Satellite Engineering. He was a visiting scholar at the Union of Concerned Scientists in 2003, where he began to be interested in security issues.

Reuben W. Hills Conference Room

Ting Wang Postdoctoral Fellow Speaker CISAC
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When the computers arrived at Ma Guanghui’s primary school in China’s rural Qinghai Province, the principal worried his students would break them. It’s not that the third- and fourth-graders are a malicious bunch. They just wouldn’t keep their hands off the new machines.

“They were so enthusiastic because they had never seen computers before,” Ma said, mimicking how the children whacked the keyboards, poked the monitors and pounded the mice before realizing they work with just a click.

“They couldn’t leave them alone,” he said.

The 15 computers that were suddenly being used by about 60 students were part of an experiment to see whether educational software and computer-assisted learning techniques would boost the scores of China’s most disadvantaged students. It’s a question that Stanford researcher Scott Rozelle and his collaborators in the Rural Education Action Project have answered with a resounding “yes.”

An economist and senior fellow at Stanford’s Freeman Spogli Institute for International Studies, Rozelle has worked for years to narrow the income and education gaps between China’s rural poor and urban middle-class. He’s now focusing much of his attention on bridging a digital divide that threatens to leave children without computer skills even farther behind.

His research – the first academic work to really measure those technological disparities – has revealed stark contrasts. While about 80 percent of Chinese students living in cities use the Internet at home, only 2 percent of those in rural areas have online access at home. No one is able to surf the Web at school, and few have access to working computers.

“This is probably the greatest digital divide of any country in the world,” Rozelle said during a March 22 conference at the newly opened Stanford Center at Peking University, where Ma and a few of his students came to discuss how computers have helped improve test scores.

Loaded with games and software that taught Ma’s students Mandarin, the computers provided by ADOC2.0 – a nongovernmental organization affiliated with the Acer computer company – had a quick payoff.

Within 10 weeks, test scores rose on average from the equivalent of a C-plus to a B.

“We were No. 1 in the whole school district,” Ma said. “All our students should have computers and Internet access”

Chinese officials agree. A 10-year-plan laid out by the government calls for every student in China to have access to the Internet.

“This is a very ambitious plan,” Zheng Dawai, a director in China’s Ministry of Education, said during the conference. “But the Internet is an important way to promote learning, especially in the rural areas.”

Rozelle says the costs of a bad education and missed opportunities for China's youngest generation are too big for China to ignore. Hundreds of thousands of migrants are making their ways from the countryside into big cities where jobs await.

But as wages go up, so will the demand for skilled labor. Being poor and looking for a job is one thing. Being poor and uneducated is another.

“Nearly 40 percent of China’s kids are in poor, rural areas,” Rozelle said. “What’s the nature of their education? Are they ready for a new era where you need to know how to use a computer and navigate the Web? We’re talking about more than 100 million rural kids going through the system without the skills they need.”

That premise sets the stage for a disenfranchised class, increased violence and greater poverty that can destabilize China and jeopardize its role as one of the world’s economic stars.

Rozelle’s goal is to influence Chinese policy with the results of his research and lead government officials to the decisions that will improve the health and education of the country's up-and-coming workforce.

He and his colleagues have already had success in tackling anemia, an iron deficiency that’s rampant in rural areas where diets are often unbalanced and consist of hardly any meat. Anemic children tend to do poorly in school because of the lethargy and lack of concentration that accompany the disease.

Thanks in large part to REAP studies that have shown students’ test score go up when they take vitamins or eat more meat and vegetables, the government has committed about $20 billion during the next decade to improving school lunches.

Now the REAP team is measuring the best ways to use technology to improve school performance so he’ll have the data he needs to convince government officials to move faster and spend more money on computer-assisted learning.

Along with computer manufacturer Dell Inc., Rozelle is now partnering with toy and game developer Mike Wood. Wood is the founder and CEO of SmartyAnts, a software program that teaches English as a second language and reading skills through a series of games where the player helps “teach” an ant avatar how to read, write and enjoy learning.

With the cost of technology getting cheaper – tablet computers can cost as little as $50 – Wood is looking for ways to get educational software into the hands of children in the world’s poorest areas.

“It’s possible to load a low-cost platform with top-notch software that’s personalized and will give kids from pre-K through sixth grade access to as good a curriculum as is available to the richest kids going to the richest private schools there are,” he said. “It’s possible. And it’s something we should be doing.”

Through his research and collaborations, Rozelle and his colleagues in the Chinese Academy of Sciences aim to convince Chinese officials that Wood is right.

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The U.S.-North Korean “Leap Day” deal of February 29 was thrown into question by the North’s recent announcement of a satellite launch between April 12 and 16 to celebrate the centenary of Kim il Sung’s birth. As the opening of the launch window nears, an intense international brouunfolds with, amazingly, the US, Russia, China, Japan, and South Korea on the same page, dead set against a launch; and an isolated North Korea defiantly planning to celebrate the centenary with a satellite launch on or by April 15. In this presentation, the three speakers will provide a brief background of the successes and failures of North Korea’s previous satellite launches (score: 0 for 3 by Western count, 2 for 2 by DPRK count) and what has been learned from these; an expected timeline of activities of the countdown; and a guide and comparison of the new Sohae Western launch complex to the older Tonghae Eastern launch complex.


About the speakers:

Lewis Franklin is a long-time CISAC Affiliate, joining CISAC in 1992 as a Visiting Scholar after retiring as a TRW vice president, and previously vice president and co-founder of ESL, a defense intelligence company. Upon retirement he was awarded the CIA's Gold Medal for career-long contributions to foreign weapons assessment and national technical means capabilities. At CISAC his work focused on technical intelligence related problems, including wmd proliferation, export controls, defense conversion, and especially conversion of retired ICBMs for low-cost space launches.

Nick Hansen is a CISAC Affiliate. He graduated with a BA in Geography from Syracuse University in 1964.  His career in national intelligence spans 43 years first as an Army imagery analyst, and then in industry with GTE-EDL, ESL/TRW, Tera Research as a cofounder Vice Pres. and then again at ESL (now TRW/Northrop-Grumman) as a Director. He has also served in an SES position at the Navy's NIOC-Suitland, MD, as an image technology expert associated with Pennsylvania State University.  He has been twice nominated for the NRO's Pioneer award for innovative imagery uses and techniques development and is an expert in foreign weapons systems and test ranges. 

Allison Puccioni is an expert in remotely-sensed imagery and geospatial intelligence at IHS Janes. She was honored for her innovative intelligence in response to Sept. 11, and has been recognized by the Department of Defense and international armed forces for her outstanding strategic and tactical analysis. 

CISAC Conference Room

Lewis Franklin CISAC Affiliate Speaker
Nick Hansen CISAC Affiliate Speaker
Allison Puccioni IHS Janes Imagery Analyst Speaker
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In this session of the Shorenstein APARC Corporate Affiliate Visiting Fellows Research Presentations, the following will be presented:

 

Yasunori Kakemizu, "Strategy of CATV in the Competitive TV Market: Open vs. Closed Models"

After prospering for more than a half-century in the United States, the cable industry is taking on a new competitor, Over-The-Top providers (OTT). OTT providers are a product of the information technology revolution that emerged from the invention of Internet protocol of the late 20th century. In his research presentation, Kakemizu tries to answer the question: What is the strategy of the cable industry in the United States and what will happen to it in the near future? Kakemizu analyzes the current threat and opportunity facing cable television companies, focusing on the strategies against OTT, such as Netflix and Hulu.

 

Hideaki Koda, "Driving the Electric Vehicle Forward: Reshaping Car Sharing with EV and ICT"

Should the all-electric vehicle challenge the traditional car head-on in the mainstream market? The answer may be "no" if you look back on the history of disruptive innovations. An innovative technology at its dawn often succeeds first in a smaller, untapped market where its strengths shine and its weaknesses are shadowed (or even turned into strengths). It then enters the mainstream market over time by achieving more maturity, as typically shown in the computer market. Then where is the market for the electric vehicle? It might be car sharing, which is thought to be a potentially large market. Koda discusses how to combine electric vehicles and car sharing with information and communications technology (e.g. Big Data processing) to achieve a win-win solution for all by taking advantage of the unique characteristics of the electric vehicle.  

 

Haiming Li, "Competing Strategies for China's Large Commercial Banks"

Competing strategies are critical to China's large commercial banks, as they determine future direction of development for these banks. Research shows that following five strategies, namely a strategy for lead changes, a strategy for globalization, a strategy for diversification, a strategy for systematic risk management, as well as a strategy for establishing a decision-making support system, need to be adapted. Coordinated implementation of these strategies will enhance the competitiveness of China's large commercial banks both home and abroad.

 

Yoshimasa Waseda, "Nantotechnolgoy for Fuel Cells: The Impact and Analysis of the Status Using Patent Information"

Judging from the need to reduce increasing dangers of future global climate change, clean energy has become more important and is a key issue for future development. Fuel cells are a candidate for achieving clean energy in the future although they currently have some disadvantages. Many researchers study the application of nanotechnology for fuel cells to solve these disadvantages using the unique phenomena of nanomaterials. In this presentation, Waseda discusses the impact of nanotechnology for fuel cells and analyzes the status of each region using patent information.


Philippines Conference Room

Yasunori Kakemizu Speaker Sumitomo Corporation
Hideaki Koda Speaker Mitsubishi Electric
Haiming Li Speaker Industrial and Commercial Bank of China
Yoshimasa Waseda Speaker Japan Patent Office
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