Within weeks of 9/11, Japan dispatched ships to the Indian Ocean to provide fuel and other support to the Western forces waging the war in Afghanistan.

It was the first time since World War II that Japan sent forces abroad to support an overseas military conflict, although in a noncombat role. American policymakers hailed Japan as a loyal ally, willing to put "boots on the ground."

Come Nov. 1, however, the Japanese ships will be heading home.

American officials worry that, after taking steps to shed its postwar pacifism, Japan will now shirk its role as an ally in international security.

But these concerns are alarmist. The Japanese government, even its liberal opposition party, has shown a desire and commitment to contribute to global security.

A renewal of the law authorizing the mission in Afghanistan is now increasingly unlikely, since the opposition Democratic Party of Japan (DPJ), which opposes the measure, won a shocking victory in last summer's elections for the upper house of parliament. While the ruling conservative Liberal Democratic Party (LDP) is still determined to reauthorize the military role, it faces significant public opposition and a tough road in the parliament.

Some American officials and experts have issued bellicose warnings that not renewing the mission would signal a dangerous retreat from Japan's responsibilities in the world and undermine the security alliance. Others accused DPJ leader Ozawa Ichiro of being irresponsible, even "anti-American."

These remarks are clumsy and unfair. The possibility of Japan's return to a lesser security role is real enough, but its mission in Afghanistan is the wrong test of the country's reliability as an ally.

In reality, the maritime mission has become largely symbolic. As for Mr. Ozawa, if Americans would listen carefully to his arguments, they would find that he seeks to expand, not contract, Japan's global security role.

What the US sees as backtracking on global responsibility is actually something else --opposition, shared by Japan's liberal and conservative parties, to the American decision to invade Iraq. Once carefully buried behind the appearance of alliance solidarity, it is now surfacing.

Ozawa and his party have been unusually open in questioning the Iraq war, characterizing it as a war without clear international justification. According to reliable accounts, Japanese Prime Minister Fukuda Kazuo privately shares that view, as do others in the LDP.

US officials critical of the DPJ for avoiding a greater security role for Japan should remember that the party supported the antiterrorism law when it was passed in 2001. But they refused to support its renewal later after the Iraq war began. Over time, senior DPJ members say, the mission's original purpose got muddied with military operations in Iraq. Japanese and American officials deny that any diversion took place, but the Pentagon admits that ships engage in multiple missions and there is no way to segregate how fuel is used.

The new version of the law proposed by the LDP explicitly narrows the role of the Navy to supporting antiterrorist interdiction operations, a backhanded acknowledgment that there was no clear separation from the Iraq war.

Ozawa has long advocated a more visible security role for Japan outside its borders, calling on the government to send forces to aid the Gulf War in 1991 and pushing through legislation allowing Japanese participation in UN peacekeeping operations.

Japanese peacekeepers, however, are restricted to noncombat missions. Despite inching toward a larger security role, the government stands by an interpretation of Japan's American-authored antiwar clause in its Constitution that bars the use of force for anything other than to respond to an attack on themselves. But Ozawa has long contended that the constitutional bar should not extend to UN activities.

This month, Ozawa proposed that instead of the maritime force, Japan should send peacekeepers to Afghanistan under the auspices of the UN-authorized international security forces, and to Sudan as well.

Ironically, the ruling conservatives reject that as unconstitutional, arguing it would be an act of collective defense rather than self-defense.

"If Japan is to really be an ally of the US ..." Ozawa wrote, "it should hold its head up high and strive to give proper advice to the US." And in order to do that," he continued, "Japan had to be willing to put itself more on the line by sharing responsibility for peacekeeping, not just sending a few boats out of harm's way."

These are ideas that should be embraced, rather than denounced, by American officials.

Reprinted by permission by the Christian Science Monitor.

Once the jewel in the crown of the formidable British Empire, India has been surrounded by myth for years. After gaining independence in 1948, this often misunderstood country found itself faced with a new sense of freedom -- and along with it, enormous burdens and challenges. While exotic, mysterious, and seductive, it has also become an economic force to be reckoned with. With the fourth largest economy in the world, the largest youth population on Earth, and a thriving middle class, India is the second-most-preferred destination for foreign investment. But very few Americans truly understand what a rich and powerful country it has become -- or its role as a global power, center of outsourcing, and potential partner with the United States.

From the country's thriving film industry to its burgeoning high-tech industry, as well as its attempts to stabilize its economy, India Arriving offers a fascinating glimpse into the real India, with all of its assets and all of its faults.

Author Rafiq Dossani goes beneath the veil surrounding India and considers the many ways it has begun to emerge onto the world stage. He explores its birth as an independent nation and forces like political shifts, social reform, and education that have helped to shape a new India. Honest and revelatory, India Arriving provides a deeper understanding of a country that promises to be the next major player in the world economy.

On October 11, the Stanford Board of Trustees approved the appointment of Shorenstein APARC's Director, Gi-Wook Shin, as the Tong Yang, Korea Foundation, and Korea Stanford Alumni Chair of Korean Studies.

An endowment was established in 1999 through the donations of alumnus Jae-Hyun Hyun, the Korea Foundation, and KSA, to enable the university to recruit a social science scholar whose work focuses on Korea from the perspective of contemporary policy issues. In addition to broadening Stanford's teaching and research programs in Asian studies, the holder of this chair is expected to conduct research on the political economy of Korea, trade and finance, security relations, politics, or other topics of importance to understanding Korea in the context of today's world.

When Professor Shin left UCLA to come to Stanford, he left the largest Korean studies program in the nation. With true entrepreneurial spirit, he has built an impressive and dynamic Korean studies program. It hosts luncheon seminars, workshops, and conferences, and has sponsored many Korean scholars, government officials, and business leaders who spend time at Stanford as visiting scholars. It also supports an active research program. Stanford is steadily becoming a world-class center for contemporary Korean studies.
-- Coit D. Blacker, Director FSI

In 2005, Dr. Shin was appointed Director of the Walter H. Shorenstein Asia-Pacific Research Center at FSI. Since becoming director of the center, Shin has been laying a strong and dynamic foundation for interdisciplinary research, training, and outreach, both through his leadership of the Korean Studies Program and his efforts to bring focus to the center's wide-ranging affiliation of Asia-related projects, programs, and initiatives.

About the Donors:

Jae-Hyun Hyun received his MBA from Stanford in 1981. He is the chairman of Tong Yang Group, a diversified business conglomerate of Korea. The Tong Yang Group, which originally built its foundation as a manufacturer of cement and confectionery goods, is a fully integrated financial services group that offers virtually every financial service available in Korea, such as securities, merchant banking, life insurance, mutual funds, credit cards, venture capital, and asset management. Prior to joining Tong Yang, Mr. Hyun served as a public prosecutor at the city of Pusan's Public Prosecutor's Office. He has four children; three have attended Stanford (Jenny '99, Richard '03 and Tina '05).

The Korea Foundation was established in 1991 to promote an understanding of Korea throughout the world and to enhance international goodwill and friendship through a multitude of international exchange programs. The foundation promotes interest in Korea by supporting Korean studies at universities, research institutions, and libraries. The foundation also provides Korean studies materials to individuals and organizations, and provides scholarships for foreign scholars, students, and experts.

The Korea Stanford Alumni (KSA) Association, a group of dedicated Stanford alumni who have returned to Korea, hosts various events for its more than 500 registered members.

Please join us on Thursday, November 1 for the launch of the Stanford China Program, a new program of the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). With China at the forefront of so many contemporary issues, from economic growth to international security, scholars at Shorenstein APARC have developed the China Program in response to the increasing need to explore and explain dynamic changes taking place in China today. The Stanford China Program is composed of scholars who do their research on the ground, in the villages, company boardrooms and government institutions of China.

Our inaugural event, co-sponsored with the Center for East Asian Studies, illustrates the catalytic role that the Stanford China Program intends to play. The panel discussion "Growing Pains: Tensions and Opportunity in China's Transformation" will go beyond the headlines trumpeting China's spectacular growth. We will discuss the difficult questions facing China, about whether and how such a rapidly transforming nation will be able to manage the tensions that accompany growth at such a pace. Issues from growing income disparity to environmental damage and widening gaps between rural and urban China are forces that are tearing at the social fabric of China. Are these the signs of a system in crisis or, as the event title suggests, the necessary pains associated with growth?

These questions occupy not only scholars, but also policy makers and business leaders alike. The panelists will discuss a range of tensions and opportunities in contemporary China such as markets, governance, environment and social inequality. The panelists include:

• Melanie Manion, Professor of Public Affairs and Political Science at the University of Wisconsin-Madison, a specialist on issues of political governance in China.
• Leonardo Ortolano, UPS Foundation Professor of Civil Engineering in Urban and Regional Planning at Stanford, who will speak on environmental issues.
• Scott Rozelle, FSI Helen F. Farnsworth Senior Fellow at Shorenstein APARC and a leading expert on rural China.
• Andrew G. Walder, Denise O'Leary and Kent Thiry Professor of Sociology at Stanford and Director Emeritus of Shorenstein APARC will moderate the panel discussion.

The event is scheduled to take place from 5:30 - 7:00 PM, Thursday November 1 in the Bechtel Conference Center, Encina Hall, 616 Serra Street. A light reception will follow the panel discussion. Full details can be found at the link below.

I look forward to welcoming you to this inaugural event and to future activities of the Stanford China Program at Shorenstein APARC.

Sincerely,

Jean C. Oi
William Haas Professor in Chinese Politics
Professor of Political Science
Senior Fellow, Freeman Spogli Institute for International Studies
Director, Stanford China Program

Pro: Not as Tempting

by Sabrina Siddiqui, intern, BusinessWeek, and a senior at the Medill School of Journalism at Northwestern University.

There is no doubt that over the last decade, India fortified its rule over the shared services and outsourcing (SSO) sector. Access to low-wage yet skilled workers allowed local global technology services giants Infosys (INFY), Tata Consultancy Services (TACSF), and Wipro (WIT) to employ tens of thousands of Indians to do work for such multinational corporate clients as Bank of America (BAC), Microsoft (MSFT), and Ericsson (ERIC).

But a recent study by Frost & Sullivan consolidates the idea that India's outsourcing has already peaked, and there are a number of factors to blame:

The Rupee Riddle. Earlier this year, the Indian rupee appreciated 8.4% against the U.S. dollar and touched 41.14 to the dollar, its highest rate in nine years. A significant reason for concern for the outsourcing sector, the upward value of the rupee continues to put a squeeze on earnings. By April, 2007, it had cut margins by about 2.5 percentage points.

Cost (In)Efficiency. Companies looking to outsource have long seen India as their most cost-efficient vehicle. But with wage inflation running 15% to 25% per year, India can no longer use the siren song of its labor being the cheapest. Competitors like China can offer their services at a lower cost, while firms like Infosys are stuck recruiting from outside the country, because the comparable Indian staff is growing too expensive.

That Age-Old Infrastructure. As much as the economy continues to boom, how long can it sustain its position when IT operations spend considerably on backup systems to fight regular blackouts? And the 300,000 engineering students who graduate each year may be short of the level needed to support modernization of infrastructure and industry growth. (Not to mention that the peculiarly accented "Doug Smith" on the computer help desk is a little too hard for U.S. callers to comprehend.)

So if you assume you're being rerouted by tech support to a call center in Bangalore, guess again. It seems India's grasp on the SSO market is at long-term risk, and it just so happens that your call might be answered by someone in Shanghai.

Con: Plenty of Spice Left

by Rafiq Dossani, Stanford University and Martin Kenney, University of California, Davis

Notwithstanding the occasional news stories about companies returning work earlier offshored to India, the logic behind offshoring and its financial impact (both on outsourcing firms operating in India and their American clients) remains intact. First, the logic: A fresh engineer costs $8,000, including benefits, on average in Bangalore. Even a "Google-quality", presumably equivalent to the best Google can hire anywhere (in fact, Google offers its India recruits the option of working in Silicon Valley if they so desire) costs $30,000. These wages are much lower than in the U.S. and will remain that way for at least a decadeespecially if the ambitious graduation targets of Indian education policymakers are realized.

Of course, there are problems in doing work long distance: Coordinating the work of global teams is costlier than coordinating such work locally. The intellectual property issues could be important. But offshoring is now tried and tested enough, and large corporations are deeply committed to it.

By 2010, many large multinational corporations like IBM (IBM) will have their largest workforces in India. This is creating a relatively rich ecosystem in a number of Indian cities, especially Bangalore.

Already, for a number of these firms, their Indian operations are being declared global centers of excellence, whose value goes well beyond just cost savings. Undoubtedly, some smaller firms have faced high initial costs, but even they, particularly the technology firms of Silicon Valley, have committed to Indian operations. Firms such as Infinera (INFNO) and HelloSoft have substantial Indian operations that are critical to their success. For them to retreat would require a major reorientation of their business strategy.

The appreciating rupee will, like rising wages, affect offshoring decisions. However, the Indian system integrators such as TCS, Infosys, and Wipro, which are also being squeezed by costs, have experienced profits rising at about 35% a year for the past decade and enjoy margins in excess of 20%. This provides ample room to absorb rising costs.

There can be little doubt that the Indian ecosystem is maturing. However, the growth of offshoring to India has not peaked.

Reprinted by permission from BusinessWeek.