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Evgeny Morozov
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WASHINGTON - Hours before the judge in the latest Mikhail Khodorkovsky trial announced yet another guilty verdict last week, Russia's most prominent political prisoner was already being attacked in cyberspace.

No, Khodorkovsky's Web site, the main source of news about the trial for many Russians, was not being censored. Rather, it had been targeted by so-called denial-of-service attacks, with most of the site's visitors receiving a "page cannot be found" message in their browsers.

Such attacks are an increasingly popular tool for punishing one's opponents, as evidenced by the recent online campaign against American corporations like Amazon and PayPal for mistreating WikiLeaks. It's nearly impossible to trace the perpetrators; many denial-of-service attacks go underreported, as it's often hard to distinguish them from cases where a Web site has been overwhelmed by a huge number of hits. Although most of the sites eventually get back online, denial-of-service attacks rarely generate as much outrage as formal government attempts to filter information on the Internet.

In the past, repressive regimes have relied on Internet firewalls to block dissidents from spreading forbidden ideas; China has been particularly creative, while countries like Tunisia and Saudi Arabia are never far behind. But the pro-Kremlin cyberattackers who hit Kodorkovsky's Web site may reveal more about the future of Internet control than Beijing's practice of adapting traditional censorship to new technology.

Under the Russian model - what I refer to as "social control" - no formal, direct censorship is necessary. Armies of pro-government netizens - which often include freelancing amateurs and computer-savvy members of pro-Kremlin youth movements - take matters into their own hands and attack Web sites they don't like, making them inaccessible even to users in countries that practice no Internet censorship at all.

Cyberattacks are just one of the growing number of ways in which the Kremlin harnesses its supporters to influence Web content. Most of the country's prime Internet resources are owned by Kremlin-friendly oligarchs and government-controlled companies. These sites rarely hesitate to suspend users or delete blog posts if they cross the line set by the government.

The Kremlin is also aggressively exploiting the Internet to spread propaganda and bolster government popularity, sometimes with comical zeal. Just last summer Vladimir Putin ordered the installation of Web cameras - broadcasting over the Internet in real-time - to monitor progress on new housing projects for victims of the devastating forest fires. This made for great PR - but few journalists inquired whether the victims had computers to witness this noble exercise in transparency (they didn't). Russia's security services and police also profit from digital surveillance, using social networking sites to gather intelligence and gauge the popular mood.

The Kremlin in fact practices very little formal Internet censorship, preferring social control to technological constraints. There is a certain logic to this. Outright censorship hurts its image abroad: Cyberattacks are too ambiguous to make it into most foreign journalists' reports about Russia's worsening media climate. By allowing Kremlin-friendly companies and vigilantes to police the digital commons, the government doesn't have to fret over every critical blog post.

One reason so many foreign observers overlook the Kremlin's harnessing of denial-of-service attacks is that they are used to more blatant measures of Internet control. China's draconian efforts to filter the Internet - characterized by Wired magazine in a 1997 article as the "Great Firewall of China" - harken back to the strict censorship of the airways by Communist governments during the Cold War. Back then it was possible to keep out or at least cut down on the influence of foreign ideas by jamming Western broadcasts. The Internet, however, has proven to be far too amorphous to dominate. So its better to co-opt it as much as possible by enabling private companies and pro-government bloggers to engage in "comment warfare" with the Politburo's foes.

Meanwhile, China itself is quietly adopting many measures practiced in Russia. The Web site of the Norwegian Nobel Committee came under repeated cyberattacks after it gave the 2010 award to the jailed Chinese dissident Liu Xiaobo. Many Chinese government officials are now asked to attend media training sessions and use their skills to help shape online public opinion rather than censor it.

In assessing the U.S. government's Internet freedom policy - announced a year ago by Hillary Clinton - one sees few signs that U.S. diplomats are aware of growing efforts by authoritarian governments to harness social forces to control the Internet. So far, most of Washington's efforts have been aimed at limiting the damage caused by technological control. But even here Washington has a spotty record: Just a few weeks ago the State Department gave an innovation award to Cisco, a company that played a key role in helping China build its firewall.

The eventual disappearance of Internet filtering in much of the world would count as a rather ambiguous achievement if it's replaced by an outburst of cyberattacks, an increase in the state's surveillance power, and an outpouring of insidious government propaganda. Policymakers need to stop viewing Internet control as just an outgrowth of the Cold War-era radio jamming and start paying attention to non-technological threats to online freedom.

Addressing the social dimension of Internet control would require political rather than technological solutions, but this is no good reason to cling to the outdated metaphor of the "Great Firewall."

Evgeny Morozov is a visiting scholar at Stanford University and the author of "The Net Delusion: The Dark Side of Internet Freedom."

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Francis Fukuyama
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The first decade of the 21st century has seen a dramatic reversal of fortune in the relative prestige of different political and economic models. Ten years ago, on the eve of the puncturing of the dotcom bubble, the US held the high ground. Its democracy was widely emulated, if not always loved; its technology was sweeping the world; and lightly regulated "Anglo-Saxon" capitalism was seen as the wave of the future. The United States managed to fritter away that moral capital in remarkably short order: the Iraq war and the close association it created between military invasion and democracy promotion tarnished the latter, while the Wall Street financial crisis laid waste to the idea that markets could be trusted to regulate themselves.

China, by contrast, is on a roll. President Hu Jintao's rare state visit to Washington this week comes at a time when many Chinese see their weathering of the financial crisis as a vindication of their own system, and the beginning of an era in which US-style liberal ideas will no longer be dominant. State-owned enterprises are back in vogue, and were the chosen mechanism through which Beijing administered its massive stimulus. The automatic admiration for all things American that many Chinese once felt has given way to a much more nuanced and critical view of US weaknesses - verging, for some, on contempt. It is thus not surprising that polls suggest far more Chinese think their country is going in the right direction than their American counterparts.

But what is the Chinese model? Many observers casually put it in an "authoritarian capitalist" box, along with Russia, Iran and Singapore. But China's model is sui generis; its ­specific mode of governance is difficult to describe, much less emulate, which is why it is not up for export.

The most important strength of the Chinese political system is its ability to make large, complex decisions quickly, and to make them relatively well, at least in economic policy. This is most evident in the area of infrastructure, where China has put into place airports, dams, high-speed rail, water and electricity systems to feed its growing industrial base. Contrast this with India, where every new investment is subject to blockage by trade unions, lobby groups, peasant associations and courts. India is a law-governed democracy, in which ordinary people can object to government plans; China's rulers can move more than a million people out of the Three Gorges Dam flood plain with little recourse on their part.

Nonetheless, the quality of Chinese government is higher than in Russia, Iran, or the other authoritarian regimes with which it is often lumped - precisely because Chinese rulers feel some degree of accountability towards their population. That accountability is not, of course, procedural; the authority of the Chinese Communist party is limited neither by a rule of law nor by democratic elections. But while its leaders limit public criticism, they do try to stay on top of popular discontents, and shift policy in response. They are most attentive to the urban middle class and powerful business interests that generate employment, but they respond to outrage over egregious cases of corruption or incompetence among lower-level party cadres too.

Indeed, the Chinese government often overreacts to what it believes to be public opinion precisely because, as one diplomat resident in Beijing remarked, there are no institutionalised ways of gauging it, such as elections or free media. Instead of calibrating a sensible working relationship with Japan, for example, China escalated a conflict over the detention of a fishing boat captain last year - seemingly in anticipation of popular anti-Japanese sentiment.

Americans have long hoped China might undergo a democratic transition as it got wealthier, and before it became powerful enough to become a strategic and political threat. This seems unlikely, however. The government knows how to cater to the interests of Chinese elites and the emerging middle classes, and builds on their fear of populism. This is why there is little support for genuine multi-party democracy. The elites worry about the example of democracy in Thailand - where the election of a populist premier led to violent conflict between his supporters and the establishment - as a warning of what could happen to them.

Ironically for a country that still claims to be communist, China has grown far more unequal of late. Many peasants and workers share little in the country's growth, while others are ruthlessly exploited. Corruption is pervasive, which exacerbates existing inequalities. At a local level there are countless instances in which government colludes with developers to take land away from hapless peasants. This has contributed to a pent-up anger that explodes in many thousands of acts of social protest, often violent, each year.

The Communist party seems to think it can deal with the problem of inequality through improved responsiveness on the part of its own hier­archy to popular pressures. China's great historical achievement during the past two millennia has been to create high-quality centralised government, which it does much better than most of its authoritarian peers. Today, it is shifting social spending to the neglected interior, to boost consumption and to stave off a social explosion. I doubt whether its approach will work: any top-down system of accountability faces unsolvable problems of monitoring and responding to what is happening on the ground. Effective accountability can only come about through a bottom-up process, or what we know as democracy. This is not, in my view, likely to emerge soon. However, down the road, in the face of a major economic downturn, or leaders who are less competent or more corrupt, the system's fragile legitimacy could be openly challenged. Democracy's strengths are often most evident in times of adversity.

However, if the democratic, market-oriented model is to prevail, Americans need to own up to their own mistakes and misconceptions. Washington's foreign policy during the past decade was too militarised and unilateral, succeeding only in generating a self-defeating anti-Americanism. In economic policy, Reaganism long outlived its initial successes, producing only budget deficits, thoughtless tax-cutting and inadequate financial regulation.

These problems are to some extent being acknowledged and addressed. But there is a deeper problem with the American model that is nowhere close to being solved. China adapts quickly, making difficult decisions and implementing them effectively. Americans pride themselves on constitutional checks and balances, based on a political culture that distrusts centralised government. This system has ensured individual liberty and a vibrant private sector, but it has now become polarised and ideologically rigid. At present it shows little appetite for dealing with the long-term fiscal challenges the US faces. Democracy in America may have an inherent legitimacy that the Chinese system lacks, but it will not be much of a model to anyone if the government is divided against itself and cannot govern. During the 1989 Tiananmen protests, student demonstrators erected a model of the Statue of Liberty to symbolise their aspirations. Whether anyone in China would do the same at some future date will depend on how Americans address their problems in the present.

The writer is a fellow at the Freeman Spogli Institute for International Studies at Stanford University. His latest book, The Origins of Political Order, will be published in the spring.

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With 2011 already off to such a wet start in many parts of the world, concerns of what flooding will do to food prices and availability in the coming months are starting to creep into the news. In Sri Lanka, flooding has devastated rice crops, and in North Dakota, heavy rain and snow is already threatening the spring wheat crop. And all this after last summer's Russian drought and heat wave helped drive global wheat prices higher.

But while farmers have always had to contend with the vagaries of the weather, a question of increasing importance is how agriculture will be affected by the climate changes projected to occur over the next century. Many scientists are studying which regions of the world may be impacted the most by increasing temperatures and changing precipitation regimes, and what is bound to happen to the supplies of the world's biggest cash crops, like wheat, corn, rice and soybeans.

A new report, The Food Gap, was released last week from the Universal Ecological Fund, and it has muddied the waters even further. The report reviews how global climate change will affect the fate of crop yields and food prices in 2020. Unfortunately, the report actually misinterpreted the connection between atmospheric concentrations of greenhouse gases like carbon dioxide (CO2) and expected global temperature increases - despite the fact that recent reports from the U.N. Intergovernmental Panel on Climate Change and the National Academy of Sciences clearly identify the most current peer-reviewed understanding of this. The food study suggests that within 9 years, average global temperatures will be an average of 2.4°C warmer than during preindustrial times - or almost 1.5°C warmer than it was just last year.

This exceptionally high temperature projection is completely baseless, as NASA climate modeler Gavin Schmidt explained on the RealClimate blog - it's more likely that the planet will experience this kind of temperature change over 100 years, not merely one decade. Nevertheless, a number of news outlets published stories on the report's projections of how this dramatic climate change could impact the global food supply by 2020. Some publications posted corrections to their own stories, but I thought it would be helpful to take a step back and examine climate change and food security in 2020 and beyond. I spoke with Stanford University's David Lobell, who studies how climate change affects crop yields and food prices. He helped clarify what the current research says about climate change and food security.

Read the full interview here.

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The session will focus on the social, political and economic changes that have been taking place in Turkey, and its implications for the U.S.-Turkey relations. Panelist will discuss Turkey’s EU process, shift in current Turkish foreign policy, the recent flotilla incident, and increasing trade and investment relations with neighboring countries.

Soli Ozel is Professor of International Relations and Political Science at Istanbul Kadir Has University. He received his M.A. from School of Advanced International Studies at Johns Hopkins University, and Ph.D. in political science from the University of California, Berkeley. Ozel taught at University of California- Santa Cruz, Johns Hopkins University, University of Washington, Hebrew University, and Bogazici University (Istanbul). Ozel's articles and op-eds appear in a wide variety of leading newspapers in Turkey and elsewhere around the world. Currently, he is a columnist for the Turkish Haberturk newspaper and a frequent contributor to The Washington Post. Most recently, he co-authored the report “Rebuilding a Partnership: Turkish-American Relations for a New Era.”
 
Abdullah Akyuz received his M.A. in Economics from the University of California-Davis and graduated from Wharton School's Advanced Management Program. He served as an economist on the Capital Markets Board (the Turkish equivalent of the SEC), Director and later Executive Vice-Chairman at the Istanbul Stock Exchange (ISE), Board Member of the ISE-Settlement and Custody Bank, Inc., and a member of the Turkish Treasury’s Domestic Borrowing Advisory Board. In 1999, Mr. Akyuz joined Turkish Industry and Business Association (TUSIAD) as President of  TUSIAD's Washington Representative Office.

RSVP: http://www.stanford.edu/group/mediterranean/feb_rsvp.fb

Sponsored by the Mediterranean Studies Forum. Co-sponsored by the Europe Center, Center for Russian, East European and Eurasian Studies, and Turkish Student Association at Stanford.

Bechtel Conference Center

Soli Ozel Professor of International Relations and Political Science at Istanbul Kadir Has University Speaker
Abdullah Akyuz President, Turkish Industry and Business Association (TUSIAD) Washington Representative Office Speaker
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Larry Diamond
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The toppling of a brutal, corrupt, and long-ruling dictator, Zine el Abidine ben Ali, is an extraordinary achievement for the diverse elements of Tunisian society who came out into the streets in recent weeks to demand change. Ben Ali's startling fall is another reminder of how suddenly political change can come in authoritarian regimes that substitute force, fear, and fraud for legitimacy. Such regimes may appear stable for very long periods of time, but when the people lose their fear and the army refuses to fire on the people, they can unravel very quickly.

Unfortunately, the demise of a dictator does not guarantee the rise of a democracy in its place.  Historically, most authoritarian regimes have given way to a new (and often only slightly reconstituted) autocracy. This has been the principle pattern not only in the successor states to the Soviet Union, but in much of Africa since independence, and in numerous states in Asia and Latin America historically as well. In the Middle East, the odds against a successful democratic transition are particularly long, since there have hardly been any (outside Turkey and Israel) since the end of colonial rule. In Iran in 1979, a popular uprising against a long-serving dictator led not to democracy but rather to an even more odious and murderous form of oppression.

 If Tunisia is to defy the odds, it will need a significant period of time to reform the corrupt rules and institutions of the authoritarian regime and create an open, pluralistic society and party system that is capable of structuring democratic competition. Even if elections for a successor government are pushed out to six months, rather than sixty days, it is highly unlikely that this will provide sufficient time to create even a minimally fair and functional democratic playing field. 

Think of the many components of a democratic election, and Tunisia today is far from having them in place. After decades of fixed and phony elections, Tunisia needs a complete overhaul of its electoral machinery: a new and impartial electoral administration, a new electoral register, and perhaps as well a new electoral system. An energetic program of civic education should help Tunisians understand not only the mechanics of a democratic electoral process but also the underlying norms, rights, and responsibilities of democratic citizenship. This is a long process, but from Poland to Chile to South Africa, civil society organizations have shown that much can be accomplished to lay the foundations for popular democratic awareness and capacity if the models, materials, and resources are made available, and if there is a decent interval of time and political space to do the work. Doing this work-and enabling political parties and candidates to convey their messages-also requires a new and more pluralistic media environment. State control of the electronic and print media must be radically refashioned.  Privately owned media must be allowed to form and function, and critics of the old order must be allowed to enter the arena of ownership.

An effective democratic election requires not just freedom of opposition parties to organize, but time, resources, and training for them to form-or reform-and develop some ability to perform the essential functions of modern parties:  to establish what they stand for, to develop programmatic agendas, to elect leaders and recruit candidates, to forge ties with constituencies, and to survey public opinion and respond with appropriate messages. Trade unions, business chambers, and other civic groups need time as well to purge themselves of corrupting ties to the old order, or form anew, cultivate their natural constituencies, and build an authentic civil society.  Independent think tanks and public opinion surveys can also help to structure and enrich an emergent democratic process, but they as well need time and resources to function effectively.

Free and fair elections-especially in a context where they have never taken place before-also require extensive preparations for domestic monitoring and international observation, so that fraud can be detected and deterred, honest mistakes can be exposed and corrected, and public confidence can be generated in the new procedures.

Many of these tasks are ongoing after a successful transition to democracy, and setting too ambitious an agenda for reform could risk waiting indefinitely and squandering the opportunity for democratic change. But one of the most common reasons for failed transitions is a rush to early national elections and a failure to prepare the ground adequately for a fair and meaningful contest. Two common consequences of hurried elections are chaos or renewed autocracy, as some portions of the old order rally behind a new figure or old party and win by hook or crook. 

Unfortunately, there are also risks in waiting too long. Democratic energy in society can dissipate.  If (putative) democratic forces enter into a broad-based transitional government, as is now happening in Tunisia, they risk being corrupted or tainted with the stench of the old order if they hang around for too long, sharing some authority and stature but no real power. A prolonged transitional period can also give authoritarian forces time to regroup, purge the worst elements, present cosmetic changes, divide and confuse the opposition, and return to power under the guise of a pseudo-democracy. That is why it is important that opposition figures in Tunisia insist on a serious program of institutional and possibly constitutional reform during the transitional period, with extensive public dialogue and broad popular participation, so that interim rule is not a stagnant pause but rather a dynamic historical moment that engages and mobilizes public opinion for real democratic change. The risks of delay could also be reduced if a non-partisan, technocratic figure, not associated with the Ben Ali's political machine, could be tapped to lead the interim government, and if the political opposition could unify to negotiate strong conditions for the period of interim rule, including basic freedoms, an end to censorship, and removal of Ben Ali loyalists from the cabinet.

There is an important role for international actors at this seminal moment in Tunisian history. Like peoples throughout the Middle East and other post-colonial spaces, Tunisians are understandably wary of foreign intervention. After a quarter-century of lavish Western (especially French) aid and political comfort to Ben Ali, Tunisians will no doubt cast a suspicious eye on grants, statements and actions that purport to now, suddenly, want to build democracy in Tunisia. But Tunisians may welcome limited and specific steps if they are transparent and taken in careful consultation with diverse elements of Tunisia's civil society and historic opposition. 

Fortunately, Tunisia has many liberal and democratic figures in business, intellectual, cultural, and civic life who understand what liberal democracy is and would like to see it emerge in Tunisia. And it has other distinct advantages. It is a relatively small country in size and population, which makes some of the tasks of institution building and promotion of democratic norms a bit easier. Educational levels are relatively high, and there is a significant infrastructure of a middle class society. The security forces seem to be divided, and it appears the army refused to fire on peaceful protestors-a very positive precedent. Without blood on its hands from the recent violence, the army is better poised than other elements of state security to guarantee a process of democratic change, if its leadership comes down in favor of it (for whatever reason). And in contrast to Algeria, Egypt, or Jordan, Islamists do not seem to have strong public support. Thus, it is difficult for the forces of the ancien regime to manipulate public fears of radical Islam (or of disorder that the old elites themselves covertly generate) in order to discredit liberalism as naïve and ride back to power. 

It is vital that Europe and the United States not fall again for the specter of disorder or an Islamist surge, but rather insist on genuine democratic reforms, and tie future aid and geopolitical support to this. The US and EU should hold forth the prospect of Tunisia achieving a special and potentially transformative status in economic relations if it negotiates the path to become the first Arab democracy of this era. At the same time, they should threaten to institute targeted travel and financial sanctions against diehard defenders of the old order who frustrate or sabotage a democratic transition, or who use violence against peaceful demonstrators.  These kinds of prospective inducements, positive and negative, can help to tip the balance in the calculations of a lot of elites from outside the Ben Ali "family" but who were part of the Ben Ali regime and must now be wondering where their own interests lie. To complement the necessary private messages, the US ambassador (and others representing democracies in Tunis) should stand up publicly for democratic reforms, embrace democratic reformers, support new democratic initiatives with small grants, and warn old regime elites against repression.

In the coming weeks and months, American and European democracy foundations and aid organizations, along with the United Nations and its political assistance programs in the UNDP, can do a lot-transparently, and in consultation with Tunisian society-to train and support the emerging infrastructure of democracy in the state administration, political parties, and civil society. The funding required to make a difference is not large in absolute terms, and it should be a priority. Time is of the essence, and more flexible instruments, like USAID's Office of Transition Initiatives, should be tapped to activate assistance quickly.        

History-and the grim realities of pervasive authoritarianism in what is known in the political science discipline as a "bad neighborhood"-do not justify a high degree of optimism about the prospects for democracy in Tunisia. Yet the third wave of global democratization is replete with instances of successful democratization in even more unlikely circumstances. The speed with which the Tunisian protests mushroomed in a few weeks from a lone act of self-sacrifice to a national uprising, and the intensity with which this uprising has resonated in nearby countries, shows the pent-up demand for democratic change in the Arab world. If that demand can be directed toward pursuit of concrete institutional reform, with timely international support, the Jasmine Revolution could surprise again, by giving birth to the first Arab democracy of our time.

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Despite all of the rhetoric, it is clear from the numbers that China's ascendency has not been at the expense of the United States.

-Thomas Fingar

China unquestionably occupies a significant place in the world's U.S.-led economic and political system. Will it continue to participate in the system that it has benefited from and contributed to, adapting its policies and practices in order to do so? Or, will it attempt to overturn the current system at some point in an effort to gain global dominance? Thomas Fingar, the Oksenberg/Rohlen Distinguished Fellow at Stanford University's Freeman Spogli Institute for International Studies, will address these core questions in a new research project, arguing that the situation is neither so polarized, nor so simplistic. Former chairman of the National Intelligence Council, Fingar takes an empirical approach to his research, examining whether there have been recurring patterns to China's involvement in the global order; what drives, shapes, and constrains Chinese initiatives; and how others have responded to Chinese actions.

Fingar asserts that there have been patterns to China's participation in international economics and politics over the past 30 years, including a pendular quality to the U.S.-China relationship. According to him, relations between the two countries were largely instrumental during the Cold War era when the United States was at odds with the Soviet Union and China was undergoing a period of self strengthening. U.S.-China relations cooled following the Tiananmen Square incident, the timing of which coincided roughly with the fall of the Soviet Union. Trust between the two countries deteriorated as China displayed its more authoritarian side, and the United States responded with sanctions that did not significantly impede China's economic growth, but did change the relationship in ways that still shape perceptions of one another.

Economics are now the primary focal point of discussions about U.S.-China relations, with a negative light frequently cast on China. "Despite all of the rhetoric, it is clear from the numbers that China's ascendency has not been at the expense of the United States," states Fingar. Trade with China, in fact, creates jobs in the United States, but trade-related jobs are dispersed and therefore not clearly visible. "They are not concentrated in a place where a factory closed, often for reasons that that have nothing to do with China," says Fingar, "but the pain and the political impact is local. I would predict that when our economy turns around, the pendulum will swing further back in a less-worried, less-critical direction."

While China has a legal system and has adopted many international standards, Fingar asserts that "it is still not a society governed by law," and that it in fact does not always measure up to global or even to its own standards. He cites China's record of undesirable practices and issues, such as currency manipulation, government corruption, and intellectual property violation, which complicate and confuse understanding of its involvement in the global system.

Fingar does not believe that the U.S.-China relationship will ever return to the "honeymoon" era of the Cold War, but he says, "The swings of the pendulum and the perturbations in the relationship are less intense and of shorter duration; that is the pattern." Quoting Anne-Marie Slaughter, director of policy planning at the U.S. Department of State, Fingar suggests that the best vision for the global order is "a world in which there are more partnerships and fewer alliances." He cautions against disregarding important, long-time alliances, such as the U.S.-Korea relationship. He notes, however, the crucial fact that alliances assume that there is an adversary, which can marginalize and threaten regional neighbors, such as China, or put allies in the uncomfortable position of having to choose between siding with a neighbor or a distant ally. "We must find a way so that no one has to choose," says Fingar.

On January 6, Fingar outlined the primary points of his new research project at a public lecture co-sponsored by the Stanford China Program and the Center for East Asian Studies, part of the China in the World series. He will also lead Stanford students through an examination of related key issues and questions in "China on the World Stage" (IPS 246), a course that he is teaching during the current winter quarter.

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President Hu Jintao of China waits in a hallway before the start of a bilateral meeting with President Barack Obama, during the Nuclear Security Summit at the Washington Convention Center in Washington, D.C., April 12, 2010.
Official White House photo by Lawrence Jackson
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Rosamond L. Naylor
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An October 13 New York Times headline article warned that an increasing volatile market for grains could lead to a repeat of the 2008 food price run-up. That price spike left over 1 billion people in a state of food insecurity-a threshold symbolic in its extreme order of magnitude and in the challenges it presents for combating global hunger in the future. In a paper released December 20 in Population and Development Review FSE director Rosamond L. Naylor and deputy director Walter P. Falcon provide insight into the causes and consequences of these volatile events.

"Price variability, particularly spikes, has enormous impacts on the rural poor who spend a majority of their income on food and have minimal savings," said Naylor. "Impacts at the local level have not been well measured, yet are key to improving food security globally." 

Expectations--often faulty--have played a key role in price volatility over the past decade. Uncertain exchange rates and macro policies added to price misperceptions, as did flurries of speculative activity in organized futures markets, particularly as a result of the growing biofuels market.

"These events highlight new linkages between agriculture-energy and agriculture-finance markets that affect the world food economy today," explained Falcon. "More importantly, volatile markets compound problems of low crop productivity, increase reliance on food imports, and aggravate other internal causes of instability--conflict, weak institutions, and inadequate infrastructure--that typically plague the world's poorest countries."

To see how the rural poor were impacted on a local scale, Naylor and Falcon looked at Ghana, Uganda, Malawi, Guatemala, and India. Price changes at the local level during the 2008 price spike were frequently half that of international prices, primarily as a consequence of domestic food and trade policies.

"The price bubble was undeniably grim for poor consumers, particularly for households living under $1/day or $2/day, but not as debilitating as many commentators suggested," said Falcon. "Unfortunately, most price stabilization efforts aimed at the poor, however well intended, ended up helping larger net producers much more than those at the margin."

Additionally, domestic self-sufficiency polices tended to have long-term negative impacts on the international market when governments lacked the resources to defend a targeted price or were ‘large actors' with significant shares of global production or consumption.

For example, in the spring of 2008, the Indian government placed a ban on rice exports--a major staple in the country--when it feared significant increases in grain prices and a spread of Ug99 (wheat rust). This ban affected food prices from Asia to Africa, created mini-panics within food importing countries, and added to global grain price variability. It underscored the growing food-security and crop interdependencies among nations arising from pathogens, prices, and policies.

The extreme heat wave that hit Russia and Eastern Europe in the summer of 2010, coupled with floods in Pakistan, declining estimates of maize stocks in the U.S., and uncertainties about global GDP growth have captured the attention of many analysts and policymakers. What will happen to prices in terms of spikes, trends, and variations during 2011-2013 and beyond is uncertain.

What is known, said Naylor, is that the causes and consequences of food-price variability deserve much more attention if we are going to alleviate global food insecurity in the future.

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Reuben W. Hills Conference Room

Rod Ewing Visiting Professor at CISAC; Edward H. Kraus Distinguished University Professor in the Department of Geological Sciences at the University of Michigan Speaker
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