Donald K. Emmerson contemplates recent events in Egypt and Tunisia
About the speaker:
Dr. Franz Cede is a retired Austrian diplomat who served as the Austrian Ambassador to Russia (1999-2003) and to NATO (2003-2007). He also was the Legal Advisor to the Austrian Foreign Ministry. He has a strong California connection dating back to the time when he was the Austrian Consul General in Los Angeles 20 years ago. Dr Cede holds the degree "Doctor of Law" from Innsbruck University. He received an M.A. in international affairs from the School of Advanced International Studies (SAIS) in Washington, D.C., and is currently an associate professor at the Andrassy University in Budapest, Hungary. Dr. Cede has published several books and articles in the field of international relations, international law and diplomacy.
Jointly sponsored by The Europe Center at the Freeman Spogli Institute for International Studies, and the Center for Russian, East European and Eurasian Studies.
Audio Synopsis:
In this talk, Dr. Cede details his views on Russia's evolving relationships with the EU, NATO, and the US, drawing on his experiences as Austrian ambassador to the Soviet Union from1999 to 2003. Cede first outlines his perceptions of present-day Russia-US and Russia-NATO relations. Russia, he explains, still thinks in Cold War terms of bilateral relations and considers the United States to be its primary strategic partner on global security issues, especially in light of the Obama administration's recent "reset" of relations and ratification of the new START treaty. In contrast, Russia views NATO as outdated and yet still a threat. Its expansion to the East is viewed with suspicion by Putin's administration, which considers these developments to be distinctly anti-Russian. Russia engages with NATO only to the extent that it believes it can influence the organization's behavior and policies toward Moscow. Still, in Cede's experience, the NATO-US-Russia triangle continues to be at the forefront of Russian policymakers' dialogue. Russian leaders prefer to avoid dealing with the EU because it lacks a coherent foreign policy, and also because Russia prefers bilateral relations with countries that offer a strategic benefit. Dr. Cede quotes Timothy Garton Ash, who wrote in a recent op-ed that "much of the Russian foreign policy elite treats the European Union as a kind of transient, post-modern late 20th century anachronism: flawed in principle, and feeble in practice. What matters in the 21st century, as much as it did in the 19th century, is the...determination of great powers." Dr. Cede cites the Georgian military intervention and recent Ukrainian gas crisis as examples of Russia's renewed attempts to reestablish dominance in its neighborhood.
In the second portion of his talk Dr. Cede traces the evolution of Russian views of the EU and NATO. Ten years ago, the EU-Russia relationship was largely ignored in the Russian media. When Cede asked Russian citizens for their views on the EU, they "either didn't know or didn't care." As Ambassador, Dr. Cede found Russian officials better informed, but disdainful of being given orders by EU donors and "treated like a developing country." Cede illustrates this dynamic by recounting the 2004 incident in which the EU forced the residents of Russia's Kaliningrad Oblast region to apply for EU Shengen visas, which then required special permits to travel throughout Russia. Western assurances that EU expansion to the east was not an attack on Russia but rather an attempt to extend stability to the Eastern bloc fell on deaf ears. Cede believes that notwithstanding Russia's attitude, the country is too big to ever join the EU, or to be influenced by Europe in its policy decisions. Because Russia still views itself as "one of the poles in a multipolar world," Dr. Cede insists that any change must come from within the country. However, Cede views Russia's candidacy to the WTO, which would require a clearer commitment to democracy and open economic policies, as a glimmer of hope.
Finally, Dr. Cede outlines several "permanent" features of Russia's relationship with the world, including economic interdependence, lack of cooperation on security policy, and weak relations with stateless organizations like the EU and NATO. He lays out several recommendations, which are elaborated on during the Q&A session:
Reuben W. Hills Conference Room
The toppling of Egypt's modern-day pharaoh through peaceful mass protests, aided by Facebook and Twitter, marks a watershed for Egypt and the entire Arab world. Contrary to widespread anxieties in the U.S. foreign policy establishment, it will also serve the long-term interests of the United States - and Israel.
Many analysts of Egypt have been warning for years that the status quo under Hosni Mubarak was not sustainable. A repressive and deeply corrupt dictatorship was sitting on top of a social volcano - an increasingly young, urbanized, digitally connected population seething over the lack of freedom, dignity and economic opportunity. A quarter of Egypt's working-age youth are unemployed and many more under-employed. Over the past two decades, average incomes in Egypt stagnated while they doubled or tripled elsewhere in the region.
Think of what could have happened. Many observers (including myself) worried that the growing alienation of young Egyptians might flow in anti-American, anti-Israeli and radical Islamist directions. The inevitable eruption could have turned violent, resulting in the kind of bloody suppression that gripped Algeria in the early 1990s, when 200,000 died. Or it might have been hijacked by radical Islamists who would ride the popular revolution to power, as in Iran in 1979.
So far, none of these have happened. The millions of Egyptians who have poured into the streets of Cairo and other cities have not been chanting "down with America," nor have their protests been about Israel (or the Palestinians). Rather, they want freedom, justice and accountability in Egypt. They have mobilized for democratic change with extraordinary discipline, imagination and moderation. In the face of killings, provocations, arrests and torture, they have adhered to nonviolence as a sacred principle.
In achieving the first condition for Egypt's liberation, the departure of the pharaoh, through peaceful grassroots mobilization, a huge chip has been lifted from their shoulders. Now Egyptians feel a new sense of pride, confidence and empowerment. And they are beginning to view the United States in a fresh and more hopeful light, not because of President Obama's Cairo Speech in 2009 but because of what he said and subtly did in the last two weeks (after several rhetorical blunders by some in his administration). As the mass protests grew, Obama aligned the United States more explicitly behind the goal of peaceful democratic change, warned the regime against the use of force, and urged Mubarak to step aside. The experience could mark a turning point not just for Egypt but for Barack Obama personally. He now has the chance to nurture democratic change in the Arab world through artful diplomacy and timely assistance, where George W. Bush failed with blunter rhetoric and means.
Israel as well should be reassured by developments so far. Egypt's new (and hopefully temporary) military junta has quickly reaffirmed the country's treaty obligations. Few protesters are calling for abrogation of Egypt's peace with Israel. Most protesters resent Israel's treatment of the Palestinians and want an independent Palestinian state, but mainly they want to transform their own country politically and economically. They know their aspirations for human dignity and economic opportunity can only be met with far-reaching internal reforms, and that the worn-out theme of anti-Zionism is a divergence from that. Israel and its friends should thus welcome democratic change in Egypt. The only way to guarantee a lasting Middle East peace is to root negotiated agreements in the same democratic legitimacy that undergirds the stability and resilience of Israel's political system. As Thomas Friedman recently observed, it is a better bet to make peace with 82 million people than with one man.
The challenge now is to ensure that Egypt's revolution produces a genuine pluralist democracy. This is far from assured.
Egypt's military rulers may well seek to sabotage the transition and restore the old order with a slightly more democratic façade. Or the Muslim Brotherhood (which rejects violent means but clings to Islamist political ends) could gain the upper hand in popular mobilization or elections. But the second scenario will be much more likely to follow, rather than prompt, the first. If a democratic transition unfolds seriously and peacefully through negotiations and reform, and if democratic institutions are well designed, the Muslim Brotherhood will be a significant but minority player.
For Egypt, Mubarak's fall is only the first step along a tortuous path. If its transition leads to democracy, it will produce a much more reliable partner for peace and progress in the Middle East. That is why other democracies in the world should support it in every way possible.
The Japanese economy has been stagnating for almost two decades. During this event, Takeo Hoshi will describe the findings of a report that he co-authored with Anil Kashyap of the Booth School of Business at the University of Chicago, the National Bureau of Economic Research (NBER), and the Federal Reserve Bank of Chicago. In the report, Hoshi and Kashyap utilized the neoclassical growth model in order to try to explain the causes of this stagnation and to identify policy choices that might help restore growth. Their focus was intentionally on longer-term issues, rather than the immediate challenges that are associated with the fallout from the global recession.
Looking at financial globalization and the collapse of the fixed exchange rate regime they found that by the end of the 1970s Japan could not rely on an undervalued currency to boost its exports. It had to rearrange its production system and other economic institutions to cope with globalization to reduce its reliance on external demand.
Japan's population structure was shifting and becoming increasingly elderly. Aging meant slower growth of the labor force. Declining fertility combined with aging eventually reduced the domestic saving that supported economic expansion during the rapid economic growth period.
Finally, monetary and fiscal policy performed poorly. The Bank of Japan consistently undershot its inflation objective. The government pursued massive fiscal stimulus during the 1990s and 2000s, so much so that Japan went from having the best debt position amongst advanced economies to the worst.
Hoshi is a Pacific Economic Cooperation Professor in international economic relations at the Graduate School of International Relations and Pacific Studies at the University of California, San Diego. He is also a research associate at the Tokyo Center for Economic Research, and is on the board of directors for Union Bank. His major research area is the study of the financial aspects of the Japanese economy, especially corporate finance and governance.
He is a recipient of the 2011 Reischauer International Education award, the 2006 Enjoji Jiro Memorial Prize, and the 2005 JEA-Nakahara Prize. Among his many publications is Corporate Financing and Governance in Japan: The Road to the Future (MIT Press, 2001), which received the Nikkei Award for the Best Economics Books in 2002.
Philippines Conference Room
Takeo Hoshi was Henri and Tomoye Takahashi Senior Fellow at the Freeman Spogli Institute for International Studies (FSI), Professor of Finance (by courtesy) at the Graduate School of Business, and Director of the Japan Program at the Shorenstein Asia-Pacific Research Center (APARC), all at Stanford University. He served in these roles until August 2019.
Before he joined Stanford in 2012, he was Pacific Economic Cooperation Professor in International Economic Relations at the Graduate School of International Relations and Pacific Studies (IR/PS) at University of California, San Diego (UCSD), where he conducted research and taught since 1988.
Hoshi is also Visiting Scholar at Federal Reserve Bank of San Francisco, Research Associate at the National Bureau of Economic Research (NBER) and at the Tokyo Center for Economic Research (TCER), and Senior Fellow at the Asian Bureau of Finance and Economic Research (ABFER). His main research interest includes corporate finance, banking, monetary policy and the Japanese economy.
He received 2015 Japanese Bankers Academic Research Promotion Foundation Award, 2011 Reischauer International Education Award of Japan Society of San Diego and Tijuana, 2006 Enjoji Jiro Memorial Prize of Nihon Keizai Shimbun-sha, and 2005 Japan Economic Association-Nakahara Prize. His book titled Corporate Financing and Governance in Japan: The Road to the Future (MIT Press, 2001) co-authored with Anil Kashyap (Booth School of Business, University of Chicago) received the Nikkei Award for the Best Economics Books in 2002. Other publications include “Will the U.S. and Europe Avoid a Lost Decade? Lessons from Japan’s Post Crisis Experience” (Joint with Anil K Kashyap), IMF Economic Review, 2015, “Japan’s Financial Regulatory Responses to the Global Financial Crisis” (Joint with Kimie Harada, Masami Imai, Satoshi Koibuchi, and Ayako Yasuda), Journal of Financial Economic Policy, 2015, “Defying Gravity: Can Japanese sovereign debt continue to increase without a crisis?” (Joint with Takatoshi Ito) Economic Policy, 2014, “Will the U.S. Bank Recapitalization Succeed? Eight Lessons from Japan” (with Anil Kashyap), Journal of Financial Economics, 2010, and “Zombie Lending and Depressed Restructuring in Japan” (Joint with Ricardo Caballero and Anil Kashyap), American Economic Review, December 2008.
Hoshi received his B.A. in Social Sciences from the University of Tokyo in 1983, and a Ph.D. in Economics from the Massachusetts Institute of Technology in 1988.
Food and agricultural policy experts Prabhu Pingali and Philip Pardey will each speak on trends in productivity and investments in technology, survey of constraints to productivity, incentives and investment, and opportunities to raise productivity.
The Green Revolution - past successes, unfinished business, and the way forward
Pingali will review strategic components of the Green Revolution and its achievement and limits in terms of agricultural productivity improvement and broader impact at social, environmental and economic levels, including its impact on food and nutrition security. Lessons learned and the strategic insights these provide will be reviewed as the world is preparing a "redux" version of the Green Revolution with more integrative environmental and social impact combined with agricultural and economic development. Pingali will also point to core research & policy gaps that can enhance further spread and sustainable adoption of productivity enhancing technologies.
Prabhu Pingali is the Deputy Director of Agricultural Development at the Bill and Melinda Gates Foundation. Formerly, he served as Director of the Agricultural and Development Economics Division of the Food and Agriculture Organization (FAO) of the United Nations. Pingali was elected to the U.S. National Academy of Sciences as a Foreign Associate in May 2007, and he was elected Fellow of the American Agricultural Economics Association in 2006. Pingali was the President of the International Association of Agricultural Economists (IAAE) from 2003-06. Pingali has over twenty five years of experience in assessing the extent and impact of technical change in agriculture in developing countries, including Asia, Africa and Latin America.
African Agricultural R&D and Productiivity Growth in a Global Setting
Given the continuing importance of agriculture in most African economies, an in-depth understanding of the past and likely future productivity performance of African agriculture is key to assessing the overall economic growth and development prospects of the region. African agriculture operates in increasingly interconnected global commodity markets, so the relative productivity performance of African vis-à-vis rest-of-world agriculture is also relevant. This talk will present new evidence on African agricultural productivity performance and place that evidence in relation to the evolving pattern of agricultural productivity growth worldwide. Technological change is a principal driver of productivity growth, and new, updated evidence on the trends in R&D investments that give rise to these technological changes will also be presented and discussed. The productivity effects of R&D play out over comparatively long periods of time demanding a long-run look at these developments.
Philip Pardey is Professor of Science and Technology Policy in the Department of Applied Economics, and Director of the University of Minnesota's International Science and Technology Practice and Policy (InSTePP) center. His research deals with the finance and conduct of R&D globally, methods for assessing the economic impacts of research, and the economic and policy (especially intellectual property) aspects of genetic resources and the biosciences. He is a Fellow of the American Agricultural Economics Association and a Distinguished Fellow of the Australian Agricultural and Resource Economics Society.
Bechtel Conference Center
What does price instability have to do with food security? Price spikes hurt poor consumers, price collapses hurt farmers, and price risks reduce investment. Timmer's work suggests that food price instability also has a deeper and more insidious impact: it slows down economic growth and the structural transformation that is the pathway out of rural poverty. Food price instability really hurts the poor in both the short run and the long run.
"Food security is not a viable social objective unless it is also a profitable undertaking for input suppliers, farmers, and marketers of output. Consumers must then be able to afford to purchase this food, secure in the knowledge that it is safe and nutritious. Achieving food security within these constraints of a complex economic system is a challenge because both poor consumers and small farmers must be effective participants." -- Peter Timmer
Thom Jayne, Professor of International Development at Michigan State University, will join the conversation as a discussant following the main presentation.
Biography
C. Peter Timmer is a leading authority on agriculture and rural development who has published widely on these topics. He has served as a professor at Stanford, Cornell, three faculties at Harvard, and the University of California, San Diego, where he was also the dean of the Graduate School of International Relations and Pacific Studies. A core advisor on the World Bank's World Development Report 2008: Agriculture for Development, Timmer also works with several Asian governments on domestic policy responses to instability in the global rice market. He is an advisor to the Bill and Melinda Gates Foundation on agricultural development issues.
Bechtel Conference Center
Center on Food Security and the Environment
Encina Hall East, E400
Stanford, CA 94305
C. Peter Timmer was a visiting professor at Stanford's Center on Food Security and the Environment in 2007. He is a leading authority on agriculture and rural development who has published widely on these topics. He has served as a professor at Stanford, Cornell, three faculties at Harvard, and the University of California, San Diego, where he was also the dean of the Graduate School of International Relations and Pacific Studies. A core advisor on the World Bank's World Development Report 2008: Agriculture for Development, Timmer also works with several Asian governments on domestic policy responses to instability in the global rice market. In 1992, he received the Bintang Jasa Utama (Highest Merit Star) from the Republic of Indonesia for his contributions to food security. He is an advisor to the Bill and Melinda Gates Foundation on agricultural development issues.
Timmer's work focuses on three broad topics: the nature of "pro-poor growth" and its application in Indonesia and other countries in Asia; the supermarket revolution in developing countries and its impact on the poor (both producers and consumers); and the structural transformation in historical perspective as a framework for understanding the political economy of agricultural policy.
East Asia's demographic landscape is rapidly changing and comparative academic research is crucial to help guide well-informed decisions in the many policy areas that are affected, such as security, economics, and immigration. From January 20 to 21, the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) gathered subject experts from numerous fields for two days of lively and productive presentations and dialogue to help identify key research issues and questions for its new, three-year research initiative on this significant subject.
Shorenstein APARC held a public panel discussion on January 20, featuring eight scholars from across the United States and Asia. The issue of aging featured prominently in their presentations, as did fertility rates and immigration. A full audio recording of the panel discussion is available on the Shorenstein APARC website and summaries of the presentations follow below. A closed-session workshop took place the next day, the discussions from which will serve as the foundation for future programs and publications related to the research initiative.
January 20 Panel Discussion Presentations
The link between demography and security is more tenuous in East Asia than in other parts of the world, suggested Brian Nichiporuk, a political scientist with the RAND Corporation. Nichiporuk discussed possible policy responses to demographic change in Japan, North and South Korea, the Russian Federation, and China. He suggested, for example, that Japan's new maritime security focus is related to perceived economic and political competition from China, which is magnified by its domestic demographic concerns.
Michael Sutton, a visiting fellow with the East-West Center in Washington, DC, stated that Japan's aging population would remain a major policy issue for the next 20–30 years. He emphasized that the policy challenges posed by this phenomena are complicated by the role that the United States plays in the regional security structure, and also by the growing dominance of China and the history that it shares with Japan. Nonetheless, maintained Sutton, despite the obvious challenges, it is possible for Japan and the other countries facing this demographic issue to successfully adapt.
Social attitudes and policy in East Asia do not favor immigration, as they do in European countries such as Spain and Italy, suggested John Skrentny, director of the Center for Comparative Immigration Studies at the University of California, San Diego. Skrentny focused his talk on low-skill immigrant workers in South Korea and Japan, noting that these two countries, which began receiving workers in the 1970s and 1980s, commonly associate immigrants with social disruption. According to Skrentny, immigration policy is often tied to economics and tends to favor co-ethnic workers.
Chong-En Bai, chair of the Department of Economics at Tsinghua University, discussed numerous economic policy implications and responses related to demographic change in China. He noted areas where successful policies have been adopted but challenges still remain, including savings and investment, labor and urbanization, pension, healthcare, and long-term care. Bai described, for example, how the children of rural migrants now have access to urban schools, but that they still face the logistical challenge of having to travel back to their home provinces to take college entrance examinations.
Examining demographic change and health improvements is essential to understanding the significant economic growth in East Asia over the past several decades, emphasized David Bloom, chair of the Department of Global Health and Population at Harvard University. He noted the success of East Asian countries in lowering their infant mortality rates through investment in public health improvements, such as sanitation and vaccination. Bloom suggested that these and other past successful policy mechanisms have run their course, and that it is now imperative to find ways to address the region's key demographic issue of aging.
Naohiro Ogawa, director of the Population Research Institute at Nihon University, described findings from the National Transfer Accounts (NTA) project, an international effort to gauge economic flows across age groups. He discussed the pressure placed on Japan's working-age population by the increasing cost of caring for children and the elderly, as well as the challenges and possibilities related to having a large, healthy, aging population. Ogawa noted that institutional responses to demographic change, such as increasing the retirement age and adopting more open immigration policy, have moved slowly in Japan.
Andrew Mason, a professor of economics at the University of Hawai'i, Manoa, also utilized NTA data to make predictions about East Asia's economic future. He proposed that the amount of human capital, such as the money that parents spend on the education of their children, is likely to grow quite rapidly. He also suggested that financial wealth in East Asia is likely to increase significantly as the populations of its countries age. Finally, he suggested that the current trend of regional economic growth would continue, although at a somewhat steadier rate. Mason qualified his predictions with questions, such as whether the return on investment in education would be commensurate with what is spent.
James Raymo, a professor of sociology at the University of Wisconsin-Madison, described a wide array of findings about changes in fertility and family structure in Japan and their connections, as well as possible policy implications. Raymo discussed trends in marriage, childbearing, divorce, non-marital cohabitation, and the participation of women in the labor force. He pointed to gaps in current research, and suggested possible linkages to research on other demographic trends, such as Japan's aging population.
About the event
On Tuesday, March 1, SPRIE and Alibaba.com hosted “Entrepreneurship in the Global Marketplace,” a seminar featuring noted venture capitalists, entrepreneurs and executives. The seminar was the first in a series being conducted at several California universities under the auspices of the Schwarzenegger Emerging Entrepreneur Initiative.
Famed venture capitalist Tim Draper kicked off the event, sharing his insight on trends and strategies relevant to global business. Multiple facets of China’s role in supporting and enabling entrepreneurial ventures were spotlighted, including the presentation of new research on the rise and global impact of Chinese e-commerce, a talk by an executive from Chinese e-commerce giant Alibaba.com, and lessons from a diverse set of entrepreneurs whose businesses depend on international trade. Additional perspectives were shared by China- and U.S.-based VCs.
This event was one of many being held at Stanford University during Entrepreneurship Week 2011, including compelling lectures, workshops, mentoring sessions, a job fair, and more. See full details at the Stanford Entrepreneurship Week website.
About the hosts
The Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) is dedicated to advancing the understanding and practice of innovation and entrepreneurship in leading high technology regions in the global economy. Through and international and interdisciplinary research, publications, executive education, and conferences, SPRIE impacts the arenas of academia, policy, and business.
Bechtel Conference Center
BDA China Ltd
#2908 North Tower, Kerry Centre
1 Guanghua Road
Beijing 100020, China
Duncan Clark is Chairman of BDA China, a consultancy he founded in Beijing in 1994 after four years as an investment banker with Morgan Stanley in London and Hong Kong. Over the past 19 years, Duncan has guided BDA to become the leading investment advisory firm in China specialized in China's technology, internet and e-commerce sectors.
An angel investor in mobile game app developer Happy Latte and digital content metrics company App Annie Duncan has also served on the Advisory Board of Chinese internet company Netease.com (Nasdaq: NTES) and serves on the Advisory Board of the Digital Communication Fund of Geneva-based bank Pictet & Cie.
A UK citizen, Duncan was raised in England, the United States and France. A graduate of the London School of Economics & Political Science, Duncan is a Senior Advisor to the ‘China 2.0' initiative at the Stanford Graduate School of Business’s Stanford Program on Regions of Innovation and Entrepreneurship, where he was invited as a Visiting Scholar in 2010 and 2011.
Duncan is partner in a Beijing-based film production company CIB Productions, and Executive Producer of two China-themed television documentaries including ‘My Beijing Birthday’.
Duncan was appointed Officer of the Order of the British Empire (OBE) in the 2013 New Year Honours for services to British commercial interests in China.