International Relations

FSI researchers strive to understand how countries relate to one another, and what policies are needed to achieve global stability and prosperity. International relations experts focus on the challenging U.S.-Russian relationship, the alliance between the U.S. and Japan and the limitations of America’s counterinsurgency strategy in Afghanistan.

Foreign aid is also examined by scholars trying to understand whether money earmarked for health improvements reaches those who need it most. And FSI’s Walter H. Shorenstein Asia-Pacific Research Center has published on the need for strong South Korean leadership in dealing with its northern neighbor.

FSI researchers also look at the citizens who drive international relations, studying the effects of migration and how borders shape people’s lives. Meanwhile FSI students are very much involved in this area, working with the United Nations in Ethiopia to rethink refugee communities.

Trade is also a key component of international relations, with FSI approaching the topic from a slew of angles and states. The economy of trade is rife for study, with an APARC event on the implications of more open trade policies in Japan, and FSI researchers making sense of who would benefit from a free trade zone between the European Union and the United States.

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Electricity transmission pricing and transmission grid expansion have received increasing regulatory and analytical attention in recent years. There are two disparate approaches to transmission investment: one employs the theory based on long-run financial rights (LTFTR) to transmission (merchant approach), while the other is based on the incentive-regulation hypothesis (regulatory approach). The transmission firm (Transco) is regulated through benchmark or price regulation to provide long-term investment incentives. In this presentation I consider the elements that could combine the merchant and regulatory approaches in a setting with price-taking electricity generators and loads. A new price-cap incentive mechanism for electricity transmission expansion is proposed based upon redefining transmission output in terms of point-to-point transactions. The mechanism applies the incentive regulatory logic of rebalancing the variable and fixed parts of a two-part tariff to promote efficient, long-term expansion.

Reuben W. Hills Conference Room

Juan Rosellón Professor of Economics Speaker Centro de Investigación y Docencia Económicas, Mexico
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The small band of terrorists who attacked Mumbai last week killed nearly 200 people, wounded several hundred more and stoked tensions between India and Pakistan. The attacks have brought attention to the countries' long-simmering dispute over Kashmir and the diplomatic balancing act the United States must play between the nuclear-armed neighbors. They also expose major flaws in India's national security and highlight Pakistan's ineffectiveness in dealing with terrorist groups.

Paul Kapur, a faculty affiliate at Stanford's Center for International Security and Cooperation and an associate professor at the U.S. Naval Postgraduate School, is an expert on international security in South Asia. He's the author of Dangerous Deterrent: Nuclear Weapons Proliferation and Conflict in South Asia, and his work has appeared in journals such as International Security, Security Studies, Asian Survey, and Asian Security.

In an interview with Stanford Report, Kapur discussed the group that was likely behind the attacks and how he expects the situation to unfold.

American and Indian officials say there's evidence linking the attacks to members of Lashkar-e-Taiba. Who are these people, and what would be their motivation for hitting Mumbai?

Lashkar-e-Taiba is one of a number of militant groups that have been fighting against Indian control of Kashmir. India doesn't control all of Kashmir but controls part of it, including the Kashmir valley, which is especially prized.

These types of groups have been active since the late 1980s. There was a spontaneous--and mostly indigenous--uprising against Indian rule in Kashmir as the result of Indian ineptitude and malfeasance. The Pakistanis took advantage of the situation and got involved with the insurgency and started backing militant organizations with arms and training and financial and logistical support. It was an opportunity on the Pakistani side. By supporting the insurgency, they could potentially get the territory from India and bleed Indian resources.

What does that say about Pakistan's responsibility for the attacks?

There does seem to be strong evidence that Lashkar-e-Taiba was involved, and the attackers did come from Pakistan. But that doesn't mean the Pakistani government was directly involved with this operation. My guess is they probably weren't.

Events like this show that the Pakistani government is either unable or unwilling to quash militancy within its territory and to stop terrorists from using Pakistani soil to launch attacks on its neighbors.

Even if the Pakistani government now is not directly pulling the strings of these groups, the groups exist largely because of Pakistani support in the past. So now the genie is out of the bottle. The big danger is that a group like this could trigger an Indo-Pakistani crisis and conflict without the direct involvement of the Pakistani government.

But that doesn't mean the Pakistani government was directly involved with this operation. My guess is they probably weren't.

What does this mean for relations between India and Pakistan? Do you expect India will launch a military response?

It's certainly possible. If you think about the last time there was a major Indo-Pakistani militarized crisis, it was after a failed attack on the Indian parliament-also involving Lashkar-e-Taiba-back in 2001. That attack failed. About five people died, and it was over in the space of a morning. Nonetheless, the Indians were so outraged that they mobilized about 500,000 troops along the international border, and there was a major standoff that lasted almost a year.

That was-in my view-a lot less provocative than Mumbai. This attack killed almost 200 people, wounded hundreds more, lasted almost three days and targeted the financial hub of India. There's going to be a lot of pressure domestically for the government to act in a forceful way.

The unfortunate thing is that things were getting better between the two sides. Since that last crisis in 2001-2002, a peace process had begun and there was really a thaw in Indo-Pakistani relations. Kashmir had actually gotten more stable, and the general sense was that the regional trajectory was a positive one. Ironically, it may be that some of that progress is what motivated the Mumbai attacks. Part of the goal of an operation like this would certainly be to derail improving relations in the region.

Both India and Pakistan have nuclear weapons. How will that factor into how the countries deal with each other?

Nuclear weapons will create incentives for the two countries-even in the event of a crisis-to behave somewhat cautiously so the situation doesn't spin out of control. But the problem is that nuclear weapons also greatly reduce the margin for error. In the event of a miscalculation, the cost could be catastrophic.

America is an ally of both these countries and has relied on the Pakistanis to combat the Taliban along the border with Afghanistan. What's at stake for American diplomacy in this situation?

It's very tricky. The U.S. relies on Pakistan as a major ally in the war on terror. We've been pressuring the Pakistanis to pay attention to the northwest frontier and the border with Afghanistan and get that area under control. One thing the United States does not want to see is an Indo-Pakistani conflict, which draws Pakistani forces away from that mission in the northwest and back to the east to combat the Indians. From the standpoint of U.S. goals in Afghanistan, it would take resources away from that struggle, and so the United States very much wants the current situation to be resolved in a way that doesn't involve a major confrontation.

The problem is that it's going to be hard for the U.S. to say to the Indians, "Hey, you shouldn't retaliate against these guys," because this is exactly the argument that the United States makes in justifying its own retaliation against terrorists. If a country is unable or unwilling to keep its territory from being used to launch terror attacks, then U.S. leaders have claimed to have the right to go in and deal with the situation.

There are reports that India received warnings about the possibility of terrorist attacks on Mumbai. What did government officials do with that information, and why wasn't more done to beef up security and counterterrorism measures?

It's not clear that they did anything. They may have ratcheted up security for a short time and then let it return to normal levels. One of the things that's going to come out of this in the weeks and months ahead is an examination of the effectiveness of the Indian security services. Obviously, there's a huge intelligence failure here. But at a tactical level, it took almost three days to get a handful of terrorists out of three or four buildings. It wasn't a shining moment. The Indian security forces bravely did their job. But in terms of their effectiveness, my sense is that there were some pretty serious shortcomings.

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Karen Eggleston
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Demographic change and long-term care in Japan, chronic non-communicable disease in China, national health insurance in South Korea, TB control in North Korea, pharmaceutical policy in the region and global safety in drug supply chains -- these are some of the topics explored in a new Stanford course: East Asian Studies 117 and 217,  "%course1%." Taught in fall 2008 by Karen Eggleston, Director of the Asia Health Policy Program, the course has enrolled students not only of East Asian studies but also other undergraduate majors as well as graduate students from the School of Education, School of Medicine, and Graduate School of Business.

 

The course discusses population health and healthcare systems in contemporary China, Japan, and Korea (north and south). Using primarily the lens of social science, especially health economics, participants analyze recent developments in East Asian health policy. In addition to seminar discussions, students engage in active exploration of selected topics outside the classroom, culminating in individual research papers and group projects that present findings in creative ways. For example, several students prepared an overview of health and healthcare in North Korea; three MBA students prepared a proposal for a healthcare venture in China (+PPT+ 1.2MB); and others attended related colloquia, interviewed researchers, and prepared summaries for public posting, such as the article on gender imbalance in China.

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Japan's industrial landscape is characterized by hierarchical forms of industry organization that are increasingly inadequate in modern sectors, where innovation relies on platforms and horizontal ecosystems of firms producing complementary products. Using three case studies--software, animation and mobile telephony--two key sources of inefficiencies that this mismatch can create will be illustrated.

First, hierarchical industry organizations can "lock out" certain types of innovation indefinitely by perpetuating established business practices. Second, even when the vertical hierarchies produce highly innovative sectors in the domestic market, the exclusively domestic orientation of the "hierarchical industry leaders" can entail large missed opportunities for other members of the ecosystem, who are unable to fully exploit their potential in global markets.

Dr. Hagiu will argue that Japan has to adopt several key measures in order to address these inefficiencies and capitalize on its innovation: strengthening antitrust and intellectual property rights enforcement; improving the legal infrastructure (e.g. producing more business law attorneys); lowering barriers to entry for foreign investment and facilitating the development of the venture capital sector.

Andrei Hagiu is an Assistant Professor in the Strategy group at Harvard Business School. His research focuses on multi-sided markets, which feature platforms serving two or more distinct groups of customers, who value each other's participation. He is studying the business strategies used by such platforms and the structure of the industries in which they operate: payment systems, advertising supported media, personal computers, videogames, mobile devices, shopping malls, etc. Hagiu is using the insights derived from this research to advise a wide range of companies in all of these industries.

In addition, he is also involved in competition and industrial policy research and advisory projects, in Japan, China and in the United States. He graduated from the Ecole Polytechnique and the Ecole Nationale de la Statistique et Adminstration Economique in France with an MS in economics and statistics, before obtaining a PhD in economics from Princeton University in 2004. Prior to joining HBS, he spent 18 months in Tokyo as a fellow at the Research Institute of Economy Trade and Industry, an economic policy think-tank affiliated with the Japanese Ministry of Economy Trade and Industry.

This event is presented in conjunction with the Japan Society of Northern California.

Philippines Conference Room

Andrei Hagiu Assistant Professor, Strategy Unit Speaker Harvard Business School
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About the seminar

Facebook, YouTube and Second Life are well known in the US, but what about MIXI, 2-Channel or Nico Nico Douga? The digital domain is transforming life and business in Japan: traditional business "fortresses" are being challenged and new models are developing from within the "cloud" of the digital world.

These technologies and the "digital life-style" provide a foundation for businesses and disruptive business models arising from new areas within the socio-economic infrastructure of Japan. This, combined with increasing pressure on the shrinking labor market, creates an opportunity for significant change in the entrepreneurial environment in Japan, including the rise of women entrepreneurs. This seminar explores the ongoing transformation of social and institutional logic in Japan at the edge of the new digital frontier.

About the speaker

Charla Griffy-Brown is Associate Professor of Information Systems and Technology Management and holds the Denny Endowed Chair at Pepperdine University's Graziadio School of Business and Management. Dr. Griffy-Brown's primary areas of research are information systems security and techno-economic development in the Asia-Pacific. She has written extensively on technology and business development in Japan and recently co-authored a book of global case studies entitled Women, Technology and Entrepreneurship. She is part of a global research team analyzing the transformation of institutional systems and techno-economic development with the International Institute of Applied Systems Analysis and Tokyo Institute of Technology.

Daniel and Nancy Okimoto Conference Room

Charla Griffy-Brown Associate Professor and Discipline Lead of Information Systems Speaker Pepperdine University
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When do people perceive themselves to be losing out from international economic integration?  Do these perceptions translate into vote change? Existing literature studies gain and loss from economic integration as a function of its objective material effect and political preferences that follow are assumed to reflect concerns about a broader set of social outcomes that they associate with economic openess, particularly reentment about relative deprivation.

Graham Stuart Conference Room
4th Floor Political Science
Encina Hall West

Yotam Margalit Post Doctoral Fellow.PGJ Speaker Stanford University
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Andrew F. March is Assistant Professor, Department of Political Science, Yale University. He is the author of Islam and Liberal Citizenship: The Search for an Overlapping Consensus (OUP, 2009), “Islamic Foundations for a Social Contract in non-Muslim Liberal Democracies (American Political Science Review, Vol. 101, No. 2, May 2007), “Liberal Citizenship and the Search for Overlapping Consensus: The Case of Muslim Minorities,” (Philosophy & Public Affairs, 34.4, Fall 2006) and “Sources of Moral Obligation to Non-Muslims in the ‘Jurisprudence of Muslim Minorities’ (Fiqh al-aqalliyyat) Discourse.” (Forthcoming in Islamic Law and Society).

He is working on a new book project entitled Explaining Disbelief: Moral Epistemology and the Moral Other in the Islamic Tradition.

Encina Ground Floor Conference Room

Andrew March Assistant Professor, Department of Political Science Speaker Yale University
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David G. Victor
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David G. Victor comments on the current flattening of investment in green technology due to market forces. What is emerging, he says, is a shift towards a green economy of scale that is based on government intervention such as regulation, mandates, and subsidies. Such mechanisms are more reliable in the long run because a large part of green's success will need to be based on larger scale industrial complexes such as off-shore wind parks and electrical grids capable of storing and delivering intermittent power.

Serious greenery is about efficiency--not only in the use of energy but also labor and capital.

(Excerpt) The winds of economic destruction are flattening not just retirement accounts but also naive visions for a green economy. Public support for costly new green mandates is weakening, and government budgets to fund them are bleeding red ink. Plummeting prices of oil and other fossil fuels have made it harder for green to compete in the marketplace. IPOs of firms working on "clean tech" green energy that have fueled fantasies of the coming energy revolution have crashed to a halt. In all the bad economic news, a new face of green is coming into focus. Whereas the old view of green tech was based on many small, decentralized sources of power and a green economy that harnessed the power of the marketplace, the new version will rely more heavily on regulation and subsidies. It will also embrace the wisdom, true in most of the energy business, that bigger is better for weathering economic storms.

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Effective strategies for managing the dangers of global climate change are proving very difficult to design and implement. They require governments to undertake a portfolio of efforts that are politically challenging because they require large expenditures today for uncertain benefits that accrue far into the future. That portfolio includes tasks such as putting a price on carbon, fixing the tendency for firms to under-invest in the public good of new technologies and knowledge that will be needed for achieving cost-effective and deep cuts in emissions; and preparing for a changing climate through investments in adaptation and climate engineering. Many of those efforts require international coordination that has proven especially difficult to mobilize and sustain because international institutions are usually weak and thus unable to force collective action...."

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The Harvard Project on International Climate Agreements
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David G. Victor
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