Institutions and Organizations
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Among the different types of capital resources, venture capital as practiced in Silicon Valley is broadly acknowledged as being an important constituent of a high technology, entrepreneurial habitat. In the past two decades, policy makers from different regions have learned much from its experience.

The IT industry attributes its success partly to venture capital investments in early, risky, stages. Looking ahead, other industries will emerge in the knowledge economy. Within Taiwan and Mainland China, information related industries still dominate investment, yet in Silicon Valley emerging industries including biotechnology, medical instruments and nanotechnology have recently been attracting as much venture capital as the IT industry.

Today, venture capitalists from Silicon Valley and Taiwan are probing what they perceive as growing investment opportunities in Mainland China, On the other hand, the immaturity of its private equity market and the undeveloped state of exit mechanisms there is causing venture capitalists to hesitate to made large investments. Currently, Taiwan's venture capital faces low price-earnings ratios in its 1,400 publicly listed companies. This has contributed to a decline in VC investment. The Taiwan government expects to further liberalize the financing environment to bolster it as a regional center for domestic and international corporations.

This conference will address the influence of the system of capital on regional innovation and entrepreneurship in the United States, Taiwan, and Mainland China. The focus will be on the venture capital industry, corporate venturing and other institutions of capital related to regional industrial development.

Here are some questions to be addressed in this conference:

  • What is the pattern of venture capital investing in high-tech start-ups in the Greater China Area?
  • What are the trends in this industry?
  • How, specifically, does venture capital promote innovation and entrepreneurship?
  • What are the similarities among independent venture capital funds, corporate venture funds, angel funds, and commercial bank involvements?

Conference Organization

Conference Chairman

  • Dr. Chintay Shih, Dean of College of Technology Management, National Tsing Hua University, and Special Advisor, Industrial Technology Research Institute

Co-chairmen

  • Dr. Paul Wang, Chairman, Taiwan Venture Capital Association
  • Dr. Henry Rowen, Co-director, SPRIE
  • Dr. William Miller, Co-director, SPRIE

Executive Director

  • Dr. Sean Wang, Director General of Industrial Economics and Knowledge Center in Industrial Technology Research Institute

Conference Secretariat

  • Industrial Economics and Knowledge Center, Industrial Technology Research Institute (IEK/ITRI)

Conference Organizing Secretariat

  • ITRI: Yi-Ling Wei, Peter Lai, Frank Lin, Shu-Chen Huang
  • TVCA: Teresa Yang, Michael Chen, Riva Su
  • SPRIE: Marguerite Gong Hancock (Stanford)/Martin Kenney (UC Davis)

Auditorium, The Grand Hotel,
1 Chung Shan N. Road, Sec. 4, Taipei, Taiwan

Conferences
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The Association of Southeast Asian Nations (ASEAN) has long been based on the principle of national sovereignty, including a norm against interference by one member state in another's domestic affairs. But some members would like to set aside the prohibition in cases such as Myanmar, whose military junta continues to repress Aung San Suu Kyi and her National League for Democracy to the detriment of ASEAN's image in the West. Opposed to this view are the group's newest, poorer, more continental, and politically more closed members: Cambodia, Laos, Vietnam, and of course Myanmar itself. They want ASEAN to uphold national sovereignty and reaffirm non-interference. The prospect of Myanmar assuming the chair of ASEAN in 2006-2007 makes this controversery even more acute. Is ASEAN splitting up? Will a compromise be reached? And with what implications for the nature and future of ASEAN and its conservative faction?

Carlyle A. Thayer is the 2004-2005 C. V. Starr Distinguished Visiting Professor at the Johns Hopkins School of Advanced International Studies in Washington DC. He has written and lectured widely on Southeast Asian affairs. He has held positions at the Asia-Pacific Center for Security Studies (in Hawaii) and the Australian Defence College. His degrees are from the Australian National University (PhD), Yale University (MA), and Brown University (BA).

This is the 10th seminar of the 2004-2005 academic year hosted by the Southeast Asia Forum.

Okimoto Conference Room

Carlyle A. Thayer Professor of Politics Australian Defence Force Academy
Seminars
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The Energy Security Initiative (ESI) is a proposal to increase the benefits offered to countries in good standing with their NPT Obligations, to compensate for all the new supply restrictions and intrusive safeguards requirements imposed on them. The NPT Balance between benefits to signatories and impositions made on them has eroded through more restrictive interpretations of the NPT. The recently implemented Additional Protocol, the Proliferation Security Initiative (PSI) and the proposals to deny nuclear fuel cycle facilities to countries not yet operating them on the one hand, and the limited supply of low cost nuclear energy available to developing countries on the other hand, demonstrate the need to re-constitute the balance implied in the NPT. It is, in fact, in the self interest of the developed countries, to be able to offer an expanded menu of additional energy benefits to countries whose current scope of available benefits has shrank, while the costs of complying with all new restrictions imposed and proposed has increased. This is the purpose of the ESI, which represents a reinterpretation and expansion of a part of Article IV of the NPT.

This presentation includes a detailed description of what ESI could offer under a new reading of article IV; which countries could qualify as beneficiaries of such program, how much might the total program cost, and how to fund it. A special case dealing with small national enrichment plants in countries such as Iran or Brazil is also considered.

Chaim Braun is a vice president of Altos Management Partners, Inc., and a CISAC science fellow and affiliate. He is a member of the Near-Term Deployment and the Economic Cross-Cut Working Groups of the Department of Energy (DOE) Generation IV Roadmap study. He conducted several nuclear economics-related studies for the DOE Nuclear Energy Office, the Energy Information Administration, the Electric Power Research Institute, the Nuclear Energy Institute, Non-Proliferation Trust International, and others. Braun has worked as a member of Bechtel Power Corporation's Nuclear Management Group, and led studies on power plant performance and economics used to support maintenance services. Braun has worked on a study of safeguarding the Agreed Framework in North Korea, he was the co-leader of a NATO Study of Terrorist Threats to Nuclear Power Plants, led CISAC's Summer Study on Terrorist Threats to Research Reactors, and most recently co-authored an article with CISAC Co-Director Chris Chyba on nuclear proliferation rings. His research project this year is entitled "The Energy Security Initiative and a Nuclear Fuel Cycle Center: Two Enhancement Options for the Current Non-Proliferation Regime."

Reuben W. Hills Conference Room, East 207, Encina Hall

Chaim Braun
Seminars
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Donald K. Emmerson
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When the 9.0-magnitude earthquake and resulting tsunami struck Asia and East Africa on December 26, Indonesia took a devastating hit. More than 100,000 people died and another 500,000 were left homeless, with some experts predicting that the final death toll may rise above 250,000. Aceh province on the northern tip of the island of Sumatra, where the Free Aceh Movement rebel forces have been fighting against the Indonesian Defense Forces for almost 30 years, was at the center of the destruction. Donald Emmerson, a senior fellow at the Stanford Institute for International Studies and director of its Southeast Asia Forum, is an Indonesia specialist who has been traveling to Aceh since the late 1960s. He's finishing a book entitled What is Indonesia? Identity, Calamity, Democracy.

STANFORD: What do we need to know about Aceh province?

That it's a wonderful place, that the people have a tradition of hospitality, and that they share with you what they have. It's very sad that it has been subject to so much violence and conflict for so many years.

What's been happening in recent times?

Since May 2003, Aceh has been virtually off-limits to foreigners. The [military] reasoning is that it's for security reasons, but there's always been a suspicion that it's also because bad things -- horrible things, killings and so forth -- are done in the dark, and they don't want people to watch. Certainly the human rights community has had great difficulty getting access to Aceh.

What could happen as a result of some 1,000 representatives of aid organizations being on the ground there?

The opening of Aceh to foreign and domestic humanitarian aid workers has the potential to introduce elements that can serve as a check on human rights abuses. Obviously, the time for mourning is not over. But if we can insert a silver lining in this very dark cloud, it might be that the devastation of the tsunami opens up an opportunity to rebuild much of Aceh, and that it will require cooperation among all Acehnese. I am cautiously optimistic about the opening that this catastrophe represents for trying to lessen the man-made pain of the Acehnese people.

What might a rebuilt Aceh look like?

The plan is to take villages that were destroyed, and maybe even the town of Meulaboh on the west coast, which was the worst hit, and move them inland a certain number of kilometers. Then, construct mangrove swamps as barriers against a repetition of the tsunami, and also to protect the soil from erosion and generate the possibility of brackish-water fishing for the livelihoods of the people. This is a massive effort that is going to last for years and years. Authorities have estimated that the rebuilding costs in Aceh could run to $2.2 billion.

Fishing villages would no longer exist on the coast?

I spent nine months in fishing villages in East Java, and I found that the relationship of the populations on the coast to the ocean is not necessarily what one would expect. They are not happy bathers on the beach, fishing is an extremely dangerous operation, and the ocean is considered a wild place.

Many fishing communities are overfishing the source. I wrote a long report for the Ministry of Agriculture's fisheries office, arguing that what Indonesia ought to do was take the money the government was spending to supply nylon fishing nets and higher horsepower outboard motors, and spend it on wives who were involved in craft commodities. The women have commercial skills, and getting microcredit programs for women to set up shops and expand is the future.

How will religion figure in that future?

Aceh is known in Indonesia as "the front porch of Mecca." The Acehnese are almost entirely Muslim. While there's a tendency among Americans to presume that [a Muslim nation] must be fanatic, Indonesia remains an overwhelmingly moderate society. There is a poignant photo, which hasn't been circulated in the U.S. press, of a sign at a depot for humanitarian relief supplies. It reads, "If you try to steal this material, you will be responsible to Allah."

The following is supplemental material that did not appear in the print edition of STANFORD.

What was the overall impact of the tsunami in Indonesia?

I think it's important to keep in mind that each of the affected countries was affected in a somewhat different way. In Sri Lanka, an estimated 70 percent of the coastline of the entire island was affected, so the economic consequences there are going to be more severe than the damage that was done to Indonesia. If you go down the west coast of Sumatra, you will see damage, but the main damage was overwhelmingly concentrated in a single province, Aceh, which represents less than 2 percent of the total population of Indonesia. Aceh got a double-barrel assault -- from the earthquake and the tsunami. The death toll was horrid, with a huge loss of life, but it was concentrated on the coasts.

How does Aceh's history set it apart from the rest of Indonesia?

The first record we have of an Islamic sultanate in what is now Indonesia is a stone carving dated 1297, on the north coast of Aceh. Aceh was closest to the Middle East, and there were Muslim traders who would go short distances, pause, sell, buy and reload. Long-distance Arab-Malay trade finally got to Indonesia, and the logical landfall was Ache.

Then there were tremendous and unequal casualties in the war against the Dutch, who recruited Ambonese troops to fight a colonial war in Aceh in the 19th century. There's a photograph of Dutch troops standing on the dead bodies of Acehese rebels. The Acehnese war lasted a long time, and it was one of the last parts of the archipelago to be fully brought into the colonial orbit.

Aceh has been for some time under a state of military emergency, and an estimated 13,000 have died as a result of the [rebel] war since 1976. But the tsunami has changed all that. Looking at it from a political science point of view, if we don't begin trying to analyze the situation, I'm not sure we can make it better down the road.

What needs to happen?

In a time of crisis what you need is efficiency and effectiveness, and you need somebody to stand up and say, "This is the way things are going to be." But the governor of Aceh is, by all accounts, exceedingly corrupt. He is in Jakarta now, in detention, awaiting trial on corruption charges. So you don't even have an active, sitting provincial government leader to take charge.

The number of members of the provincial administration who died in the tsunami is quite high, and the central government has had to send up 300 replacements from Jakarta. The administration of Aceh has essentially been completely taken over by the central government. This is potentially unhelpful, depending on how sensitive and effective the central government is and how corrupt the atmosphere is within which masses of foreign aid are moving.

The somewhat optimistic scenario is that now Aceh is even more dependent on the central government than it was before, with the need to rebuild substantial portions of its coastline. So a leader of the [freedom] movement [might] look down the road and say, "It's unrealistic for us at this point, with this incredible body blow to our economy, to expect that we can now somehow take over Aceh. We are more dependent than we were before on the central government."

And, conversely, in Jakarta there might be the thinking that since Aceh now so obviously needs support within the republic, "We are in a stronger position, and therefore we can afford to be generous, and to extend concessions, short of independence, that will take advantage of this." The bottom line is that two enemies who were at each other's throats now face a third enemy -- nature.

Are there other voices that should be heard in Aceh?

One of the difficulties of having negotiations between the Acehnese Freedom Movement and the central government is that it tends to exclude other Acehnese views, which is one reason why negotiations that took place previously were not successful. Acehnese society is pretty diverse, and the Acehnese Freedom Movement does not represent all Acehnese, not to mention the Javanese and Indonesians who have migrated into the province, who are university students and [members of] religious communities.

The conflict has lasted for 30 years in its present form, and it has created such enmities that there is no particular mood to compromise. The government has no incentive to reach out, and the Acehnese Freedom Movement remains intransigent. In the long run, those who disagree with a so-called freedom movement are in the shadows and their views tend not to be reported. My hope is that as these voices are allowed to take part in determining the future of Aceh and its political leadership, the polarization will decrease and there will emerge a kind of more moderate center, in favor of autonomy and full rights.

In the 1990s, the United States cut military assistance programs to Indonesia. Is the relationship between the two countries improving?

SBY -- Susilo Bambang Yudhoyono -- is a former military man, but he's identified as relatively clean, and associated with a somewhat more reform-minded element within the military. More than any previous president of Indonesia, he has had exposure to the United States. Certainly this is an opportunity for an improved relationship between Indonesia and the U.S.

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Dr. Sarah Mendelson is a senior fellow with the Russia and Eurasia Program at the Center for Strategic and International Studies. Before joining CSIS in 2001, she taught international politics at the Fletcher School of Law and Diplomacy, Tufts University. Dr. Mendelson received her B.A. in history from Yale University, and her Ph.D. in political science from Columbia University. She also earned a certificate from the Harriman Institute.

At CSIS, she manages several projects that explore the links between security and human rights. Her current research includes collaborative work on public opinion surveys of Russian attitudes on democracy, human rights, Chechnya and the military. She directed a collaborative study evaluating the impact of Western democracy assistance to Eastern Europe and Eurasia. In addition, she has served on the staff of the National Democratic Institute's Moscow office, and was a resident associate at the Carnegie Endowment for International Peace. She has also been a fellow at CISAC and at Princeton University's Center of International Studies.

Dr. Mendelson serves on the steering committee of Human Rights Watch, the editorial board of International Security, and is a member of the Council on Foreign Relations, and the Program on New Approaches to Russian Security.

Reuben W. Hills Conference Room, East 207, Encina Hall

Sarah Mendelson Senior Fellow Russia and Eurasia Program, Center for Strategic and International Studies
Seminars
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Tonya Putnam has a J.D. from Harvard Law School and received her Ph.D. from the Department of Political Science at Stanford University in March 2005. She is currently a postdoctoral fellow at CISAC, but will be moving to the Center on Globalization and Governance at Princeton University for a postdoctoral fellowship next academic year. Her dissertation, Courts Without Borders? The Politics and Law of Extraterritorial Regulation, explores the extraterritorial reach of U.S. federal courts and regulatory institutions, and implications for the development of de facto international regulatory frameworks. Other research areas have included human rights in peace implementation missions, comparative legal responses to the threat of cybercrime and cyberterrorism, risk communication in the context of radiological terrorism (dirty bombs), and obstacles to military reform in Russia.

Reuben W. Hills Conference Room, East 207, Encina Hall

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Affiliate
Tonya Lee Putnam

Tonya L. Putnam (J.D./Ph.D) is a Research Scholar at the Arnold A. Salzman Institute of War and Peace Studies at Columbia University. From 2007 to 2020 she was a member of the Political Science at Columbia University. Tonya’s work engages a variety of topics related to international relations and international law with emphasis on issues related to jurisdiction and jurisdictional overlaps in international regulatory and security matters. She is the author of Courts Without Borders: Law, Politics, and U.S. Extraterritoriality along with several articles in International Organization, International Security, and the Human Rights Review. She is also a member (inactive) of the California State Bar.

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Tonya L. Putnam
Seminars
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Linda Kirschke is a predoctoral fellow at CISAC. She is a PhD candidate at Princeton University, in the Department of Politics, and her research focuses on state politics and ethnic violence. She published "Informal repression, zero sum politics and late third wave transitions" in the Journal of Modern African Studies in 2000. Drawing on the cases of Cameroon, Rwanda and Kenya, this article shows that transitions to multiparty politics place Sub-Saharan South Africa at high risk for civil violence. Kirschke was a Eurasia Title VIII Fellow at the Social Science Research Council in 2002-03, working on Russian language training. In 2003-04, she was awarded an Andrew W. Mellon Foundation Pre-Dissertation Fellowship at Columbia Universityís Council for European Studies. Kirschke has a BA in French and African studies and has worked for human rights organizations in France, London and Africa.

Reuben W. Hills Conference Room, East 207, Encina Hall

Linda Kirschke Predoctoral Fellow
Seminars
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Has the Bush administration used the War on Terror to consolidate power in the executive branch? Is the United States in danger of undermining civil liberties and laying the foundation for an American police state? Arguing against conventional wisdom the authors answer these questions with an emphatic No. Drawing on evidence from the USA Patriot Act, the creation of the Department of Homeland Security, the Transportation Security Administration, intelligence reform, and the detention of enemy combatants, the authors argue that what is most striking about US homeland security policy in the wake of 9-11 is just how weak the response of the American state has been. This outcome is contrary to both conventional wisdom and theoretical expectation. The authors argue that this puzzle is best explained by focusing on the institutional structure of US domestic politics.

Jay Stowsky is an adjunct professor at the University of California, Berkeley's School of Information Management and Systems (SIMS) and is the executive drector of UC Berkeley's Services Science Program. Previously, he directed UC Berkeley's program on Information Technology and Homeland Security at the Goldman School of Public Policy and served in the Clinton administration as senior economist for science and technology policy on the staff of the White House Council of Economic Advisers. Stowsky has also served as associate dean at UC Berkeley's Haas School of Business and as director of research policy for the University of California system. He has authored several studies of U.S. technology policy, including "Secrets to Share or Shield: New Dilemmas for Military R&D in the Digital Age," in Research Policy (Vol. 33, No. 2, March 2004) and "The Dual-Use Dilemma," in Issues in Science and Technology (Winter 1996). He is co-author, with Wayne Sandholtz, et al., of The Highest Stakes: The Economic Foundations of the Next Security System (Cambridge Oxford University Press, 1992).

Matthew Kroenig is a PhD candidate in the Department of Political Science at UC Berkeley and a Public Policy and Nuclear Threats Fellow at the Institute of Global Conflict and Cooperation. Kroenig's dissertation research explains the conditions under which states provide sensitive nuclear assistance to nonnuclear weapons states. Previously, he was a research associate with the Information Technology and Homeland Security Project and has also served in government as an intelligence analyst.

Reuben W. Hills Conference Room, East 207, Encina Hall

Matt Kroenig PhD Candidate Speaker Department of Political Science, UC Berkeley
Jay Stowsky Adjunct Professor Speaker School of Information Management and Systems, UC Berkeley
Seminars
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Shapiro presents research he conducted with David A. Siegel, a student in Stanford's Graduate School of Business:

A review of international terrorist activity reveals a recurring pattern of financially strapped operatives working for terrorist organizations that seem to have plenty of money. This observation is hard to square with traditional accounts of terrorist financial and logistical systems, accounts that stress the efficiency with which terrorist financial networks distribute funds while operating through a variety of covert channels. In order to explain the observed inefficiencies, we present a hierarchical model of terror organizations in which leaders must delegate financial and logistical tasks to middlemen for security reasons; however, these middlemen do not always share their leaders' interests. In particular, the temptation always exists to skim funds from any financial transaction. To counteract this problem, leaders can threaten to punish the middlemen. Because logisticians in international terrorist organizations are often geographically separated from leaders, and because they can defect to the government if threatened, violence is rarely the effective threat it is for localized groups such as the IRA. Therefore leaders must rely on more prosaic strategies to solve this agency problem; we focus on leaders' ability to remove middlemen from the network, denying them the rewards of future participation. We find that when the middlemen are sufficiently greedy, and when the organization suffers from a sufficiently strong budget constraint, that leaders will choose not to fund attacks in equilibrium because the costs of skimming are too great. Further, we show there can be important non-linearities in terrorists' response to government counter-terrorism. Specifically, we find that given constrained funding for terrorists, government efforts will yield few results until they reach a certain threshold, at which point cooperation between leaders and middlemen in terrorist groups breaks down leading to a dramatic drop in the probability of terrorist success.

Reuben W. Hills Conference Room, East 207, Encina Hall

Jacob N. Shapiro
Seminars
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