Institutions and Organizations
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The 2008–2009 financial crisis demands we look anew at the role of corporations, and the working of financial markets around the world. In this challenging and insightful book, one of our most eminent economists provides a compelling new analysis of the corporate firm; the role of shareholders, managers and workers; and institutional governance structures.

In recent decades the firm has predominantly been seen as an organization run and governed in the interests of shareholders, where management acts as the agent of shareholders, and the workers simply as instruments for share-value maximization. This book reverses this viewpoint. It sees corporations as associational cognitive systems where "cognitive actions" are distributed amongst managers and workers, with shareholders supplying "cognitive tools" and monitoring their use in the systems. Aoki analyses the different relationships that can exist between shareholders, managers, and workers from this perspective, and identifies a range of different models of organizational architecture and associated governance structures. He also discusses ways in which corporations act as players in social, political, and organizational games, as well as global economic games; how these inter-related social dynamics may change particular, distinctive national structures into the diversity incorporated in the global corporate landscape; and how they now call for new roles for financial markets.


"Masahiko Aoki uses the social mathematics of game theory to reveal the deep structure of corporate governance systems, in the process explaining the persistence of diversity under conditions of globalization. His profound and highly original analysis speaks directly to the issue of corporate governance reform in the aftermath of the financial crisis of 2008–9."
-Simon Deakin, Professor of Law, University of Cambridge

"The recent wave of fraud, corruption, and fiscal irresponsibility at the highest corporate levels dramatizes the need for a model of the modern corporation that is at the same time deeply economic in the recognition of the centrality of incentives, and deeply sociological in the recognition of the centrality of social norms and a culture of corporate morality. Professor Aoki has combined his magisterial knowledge of business organization with a foundational study of the role of culture in epistemic game theory to produce, for the first time, a truly transdisciplinary model of the corporation."
-Herbert Gintis, Santa Fe Institute

"This is a path breaking book that provides a rigorous analysis of the cognitive underpinnings of corporations. It gives fundamental insights into the diversity of organizational forms that exist and the association of these with the historical, political, social, and technological contexts within which they operate. As with so much of Professor Aoki's work, it will radically alter the way in which we view the corporation."
-Colin Mayer, Peter Moores, Dean, Saïd Business School, University of Oxford

"A pioneering contribution which formalizes in game theoretic language complex institutional structure and environment of the corporation both at a moment of time and over time."
-Douglass C. North, Nobel Laureate in Economics 1993, Spencer; T. Olin Professor in Arts and Sciences, Washington University in St. Louis

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Oxford University Press
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Masahiko Aoki
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0199218536
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The grant will go toward supporting Rodrigo Pizarro's research on the impact of the world diffusion of conservation policy on biodiversity with special reference to Latin America.

Project Summary:

Pizarro draws from Institutional Theory to examine the accelerated adoption of conservation policies across the globe, particularly in Latin America. Although there is a remarkable convergence across countries in the ‘formal' policy of biodiversity conservation, through the establishment of protected areas, there exists a wide variety of experiences in implementation and outcomes. Pizarro seeks to understand what explains observed differences in practice by understanding the ‘structuration of the organizational field' - the exchange, interests and interplay of organizations - in selected countries. This approach can help explain why, despite having fairly similar formal policies, nations have a wide variety of implementation experiences. Further, he expect the results to provide insights to improve environmental policy implementation and thus provide guidelines for inter-governmental organizations or international non-government organizations in their support of developing countries' conservation programs.

 

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FSI's Walter H. Shorenstein Asia-Pacific Research Center, Asian studies, and Stanford lost a dear friend on June 24 when long-time benefactor Walter Shorenstein died peacefully at his home in San Francisco. Walter endowed the Shorenstein Asia-Pacific Research Center in his name in 2005 and had been a member of the FSI Advisory Board or its predecessor organizations since 1992. At a later date, Shorenstein APARC and FSI will celebrate his life and his tremendous role in bolstering scholarship on contemporary Asia at Stanford.
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We are pleased to be able to announce that the Program on Liberation Technology will have two new visiting scholars from September 2010 - Patrick Meier and Evgeny Morozov.

Patrick Meier is a fourth-year PhD Candidate at The Fletcher School of Law & Diplomacy and Co-Director of the Program on Crisis Mapping and Early Warning at the Harvard Humanitarian Initiative. His dissertation research analyzes the impact of the information revolution on the balance of power between repressive rule and civil resistance. He is particularly interested in how repressive regimes and resistance groups use information communication technologies to further their own strategic and tactical goals. Patrick serves as Director of Crisis Mapping and Strategic Partnerships at Ushahidi and co-founded the International Network of Crisis Mappers. He is also on the Board of Advisors of  DigiActive and Digital Democracy, two leading digital activism and democracy initiatives. Patrick blogs at iRevolution and Early Warning.

Evgeny Morozov is a leading thinker and commentator on the political impact of the Internet and a well known opponent of internet utopianism.  He is a contributing editor to Foreign Policy and runs the magazine's Net Effect blog about the Internet's impact on global politics. Evgeny is currently a Yahoo! fellow at the Institute for the Study of Diplomacy at Georgetown University. Prior to his appointment to Georgetown, he was a fellow at the Open Society Institute, where he remains on the board of the Information Program. Before moving to the US, Evgeny was based in Berlin and Prague, where he was Director of New Media at Transitions Online, a media development NGO active in 29 countries of the former Soviet bloc. He is writing a book about the Internet and democracy, to be published this fall by PublicAffairs.

We are looking forward to welcoming Patrick and Evgeny to the Stanford community in a few months time. 

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By the end of the year, scholars of security studies will be able to use a new website to learn how terrorist and militant organizations evolve over time and how they collaborate with--and compete against--one another.

"Mapping Terrorist Organizations," an interdisciplinary online project headed by CISAC Senior Fellow Martha Crenshaw, will focus initially on providing detailed, annotated information on militant and terrorist groups operating in Iraq since 2003, Pakistan and Afghanistan--areas of current policy concern for the United States. Future plans involve expanding research to include groups in Latin America, Europe, the Middle East and the United States and, if time and resources permit, to include major historical groups such as the Russian revolutionary movement.

The three-year project is funded by a $500,000 grant awarded to Crenshaw last fall by the National Science Foundation. It is part of the Department of Defense's Minerva Initiative launched in 2008 to support "research related to basic social and behavioral science of strategic importance to U.S. national security policy."

"No such study exists in the literature of terrorism," Crenshaw wrote in a report on the project. "Evolutionary mapping can enhance our understanding of how terrorist groups develop and interact with each other and with the government, how strategies of violence and non-violence are related, why groups appear and disappear, and how opportunities and constraints in the environment change organizational behavior over time." Furthermore, Crenshaw noted that visual mapping of highly complex, shifting information is likely to stimulate new observations that might otherwise have been overlooked."

Student involvement

Daniel Cassman, a 2010 CISAC honors graduate in political science and computer science, is building the site, which will contain interactive timelines, family trees and detailed group profiles. Cassman's programming--developed specifically for the website--will allow scholars to better understand and analyze patterns and structures of violent and non-violent opposition groups in multiple contexts.

At a June 1 meeting of a half dozen students working on the project, Crenshaw said one of the most challenging problems facing researchers is documenting how terrorist organizations evolve over time. With no official sources to rely on, Crenshaw's team spent the last year combing through government documents and academic research, autobiographies, newspaper reports and even jihadist websites-many of which disappear as quickly as they pop up. Crenshaw acknowledges that "precision in this field is elusive" even though the project emphasizes using documented primary sources. Students working on the project include Christy Abizaid and Sadika Hameed, 2010 graduates of the International Policy Studies master's program, and undergraduates Rob Conroy, Asfandyar Mir and Ari Weiss. CISAC staff member Julia McKinnon is assisting Crenshaw as well.

"We're keenly interested in changes in the sizes of groups," Crenshaw said. "That's one of the hardest things to figure out." It also is difficult to know when a group dissolves, becomes dormant or morphs into something else, she said. To obtain as complete a profile as possible, the website will include information about failed and foiled plots, as well as successful attacks, she said.

Charles Nicas, a student in International Policy Studies and Public Policy, said he joined Crenshaw's project to learn more about militancy and terrorism in South Asia. "The U.S. presence in Afghanistan and the fact that Pakistan is a nuclear-armed country mean that the U.S. will be involved in this region...for a long time," he wrote in an email. "The complexity of the situation takes a lot of research to understand."

Nicas's area of work focuses on sectarian groups in Pakistan, mainly Sipah-e-Sahaba Pakistan (SSP) and its offshoot Lashkar-e-Jhangvi (LeJ), both virulently anti-Shia groups. Nicas said SSP was founded in 1985 with state support and spawned LeJ in the mid-1990s. The groups are based in Punjab province in eastern Pakistan but had a significant presence in neighboring Afghanistan during Taliban rule. Both have become increasingly allied with militant groups in the border region, including al-Qa'ida, and are part of an umbrella group known as the Punjabi Taliban. "I've been surprised to learn how far back the roots of this problem go, which makes the challenge of effectively countering it especially daunting," Nicas said.

Terrorist organizations profiled

In addition to Afghanistan and Pakistan, Crenshaw's website will feature profiles of the following groups:

  • 1920s Revolution Brigades
  • Mujahideen Army
  • Islamic Army in Iraq
  • Ansar al-Islam
  • Al-Qa'ida in Iraq

Group profiles include the following attributes:

  • The group's name, including pseudonyms and name changes
  • A history with a timeline, including whether the group is active, dormant or disbanded
  • The group's goals/ideology
  • Key leaders
  • Group size (by date)
  • Resources in the form of money and weapons
  • Outside intervention and influence
  • Dates of first and last known attacks
  • Targets
  • Area of Operations
  • Tactics
  • Political activities (by date)
  • Key operational experiences (by date)
  • Known splinter groups (by date)
  • Relationship to other groups (by date)
  • Relationship with surrounding population/popular support
  • Defining characteristics/Major events
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Nuclear deterrence has been a central element of American security policy since the Cold War began. The deterrence concept is straight-forward: persuade a potential adversary that the risks and costs of his proposed action far outweigh any gains that he might hope to achieve. To make deterrence credible, the United States built up powerful strategic, theater and tactical nuclear forces that could threaten any potential aggressor with the catastrophic risks and costs of a nuclear retaliatory strike against his homeland.

During the Cold War, the primary focus of this deterrent was the Soviet Union. The Soviets built their own nuclear force targeting the United States, producing a situation of mutual deterrence, often referred to as “mutual assured destruction” or MAD. Many argue that MAD worked and kept the United States and Soviet Union from an all-out war—despite the intense political, economic and ideological competition between the two—as the horrific prospect of nuclear conflict gave both strong incentives to avoid conflict. Others note that it was too often a close thing: crises, such as those over Cuba and Berlin, brought the two countries perilously close to nuclear war.

As the United States developed a post-war alliance system, the question of extended deterrence—the ability of U.S. military forces, particularly nuclear forces, to deter attack on U.S. allies and thereby reassure them—received greater attention. Extending deterrence in a credible way proved a more complicated proposition than deterring direct attack. It was entirely credible to threaten the Soviet Union with the use of nuclear weapons in response to a Soviet attack on the United States. But how could the United States make credible the threat to use nuclear weapons against the Soviet homeland in response to a Soviet attack on U.S. allies in Europe? Or, as it was often put, how could an American president credibly persuade his Soviet counterpart that he was prepared to risk Chicago for Hamburg?

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Mass famines, like those of the 1990s that killed a million people, are projected to happen again in North Korea. At any time, more than 220,000 people are held in the prison system, where "torture, assault, rape, infanticides, forced detention and public executions" are commonplace. The state medical system is in severe disrepair, allowing treatable diseases like tuberculosis to claim tens of thousands of lives per year. Unfortunately, North Korea's political and economic isolation often impedes those interested in reducing the hardships endured by the North Korean people. In "The North Korean Crisis: Human Stories and Taking Action," four experts on North Korea will discuss the North Korean humanitarian crisis and importantly, outline ways for members of the Stanford community and beyond to take action.

Presented by the Stanford Korean Students Association and sponsored by ASSU Speaker's Bureau, Korean Student Association at Stanford, Korean Studies Program, CDDRL, Steve Kahing

Bechtel Conference Center

Dr. Sharon Perry Senior researcher at the Division of Infectious Diseases and Geographic Medicine Speaker Stanford and North Korean
Jung Gwang Il Director of NK Gulag for Democracy Speaker A Seoul based-NGO
David Hawk Former Executive Director of Amnesty International USA Speaker
Dan Chung Communications Director of Crossing Borders Speaker
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On April 19, the Freeman Spogli Institute for International Studies convened a special conference on Technology, Governance, and Global Development, to examine how technical innovation solves, or fails to solve, the problems of chronic global underdevelopment. Experts from business, medicine, philanthropy, academia, government and non-governmental organizations, along with young Stanford alumni, addressed technology’s ability to help secure gains in health, economic development, agricultural innovation, food security, and human development.

With a wealth of expertise and on-the-ground experience, panelists tackled central issues and engaged in spirited debate, animated by moderator Phil Taubman. “The Promise of Information and Communications Technology” examined whether technology can transform lives of individuals, even in poorly governed countries, finding encouraging evidence in health and economic development.

Frances C. Arrillaga Alumni Center

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Philip Taubman is affiliated with the Center for International Security and Cooperation at Stanford University. Before joining CISAC in 2008, Mr. Taubman worked at the New York Times as a reporter and editor for nearly 30 years, specializing in national security issues, including United States diplomacy, and intelligence and defense policy and operations. He served as Moscow bureau chief and Washington bureau chief, among other posts. He is author of Secret Empire: Eisenhower, the CIA, and the Hidden Story of America's Space Espionage (2003), The Partnership: Five Cold Warriors and Their Quest to Ban the Bomb (2012),  In the Nation's Service: The Life and Times of George P. Shultz (2023), as well as co-author (with his brother, William Taubman) of McNamara at War: A New History (2025).

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Philip Taubman Moderator
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Program on Global Justice
Encina Hall West, Room 404
Stanford University
Stanford, CA 94305

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Marta Sutton Weeks Professor of Ethics in Society, and Professor of Political Science, Philosophy, and Law
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Joshua Cohen is a professor of law, political science, and philosophy at Stanford University, where he also teaches at the d.school and helps to coordinate the Program on Liberation Technology. A political theorist trained in philosophy, Cohen has written extensively on issues of democratic theory—particularly deliberative democracy and the implications for personal liberty, freedom of expression, and campaign finance—and global justice. Cohen is author of On Democracy (1983, with Joel Rogers); Associations and Democracy (1995, with Joel Rogers); Philosophy, Politics, Democracy (2010); The Arc of the Moral Universe and Other Essays (2011); and Rousseau: A Free Community of Equals (2011). Since 1991, he has been editor of Boston Review, a bi-monthly magazine of political, cultural, and literary ideas. Cohen is currently a member of the faculty of Apple University.

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Jared Cohen Speaker US Department of State
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The United States belongs to various organizations and networks that encompass countries on both sides of the Pacific Ocean. The East Asia Summit (EAS) is not among them. Should the US try to join? This working paper by Donald K. Emmerson answers that question with a qualified yes: Despite formidable difficulties affecting President Obama's schedule of foreign travel, his administration should try to "ease" the US into the Summit, initially as a guest of the host country.
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