Foreign Policy

From an unprecedented number of start-ups to a rising class of billion-dollar giants going global, high technology companies in China have a dramatically increasing need for effective leadership. Since 1999, founders have led 24 Chinese firms to IPOs on NASDAQ, ranging from portals such as Sina and AsiaInfo in 2000 to mobile hardware makers and service providers like Hurray!, Vimicro, and Techfaith in 2005.

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Against the backdrop of export-led growth of some economies -- most notably China and India -- human development issues in Asia tend to be overlooked. The 2006 report Trade on Human Terms, produced by the United Nations Development Programme, finds that trade has contributed to further increasing the inequality both between and within countries. In addition, it warns that many of the region's open economies, particularly the East Asian success stories, are creating far fewer jobs, especially for youth and women, and experiencing "jobless growth." Many of the developing countries in the Asia-Pacific are now net importers of agricultural products; food security has thus become an emerging issue.

While Asia and the Pacific have embraced globalization, the regions poor are being left behind and will be so without determined action by governments. The report recommends that those countries adopt bold new policies that harness trade and economic growth, suggesting an "eight-point agenda" that includes investing for competitiveness; adopting strategic trade policies; restoring a focus on agriculture; combating jobless growth; and others.

Dr. Hafiz A. Pasha will discuss the findings and recommendations of this ground-breaking and thoughtful report which can be viewed at:

Asia - Pacific Human Development Report 2006

Dr. Hafiz A. Pasha is UN assistant secretary-general and UNDP assistant administrator and director of the Regional Bureau for Asia and the Pacific. He has served as the commerce and trade minister, minister for finance and economic affairs, deputy chairman of the Planning Commission, and education minister in three government administrations in Pakistan.

Prior to his government work, Dr. Pasha was the vice chancellor/president of the University of Karachi and dean and director of the Institute of Business Administration in Karachi, Pakistan.

Dr. Pasha has published extensively in the fields of trade, public finance, social development, and poverty reduction. He has an M.A. from Cambridge University and a Ph.D. from Stanford University.

Pasha was recently awarded the Congressional Medal of Achievement by the Philippines Congress in recognition of his work on poverty reduction, achievement of the Millennium Development Goals (MDGs) by the Asia-Pacific countries and his role in leading UNDP's response to the 2004 tsunami tragedy.

Philippines Conference Room

Hafiz A. Pasha UN Assistant Secretary General and Director of the Regional Bureau for Asia and the Pacific Speaker The United Nations Development Programme
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Steven A. Cook and Elizabeth Sherwood-Randall argue that Turkey is of enormous strategic importance to the United States and Europe, especially at a time when the widening chasm between the West and the Islamic world looms as the greatest foreign policy challenge. Yet Ankara's relations with Washington are strained - over Iraq, Cyprus, Syria, Iran and Hamas - and Turkey's prospects for joining the European Union remain uncertain.

As a model of a democratizing and secular Muslim state that has been a stalwart ally for more than 50 years, Turkey is of enormous strategic importance to the United States and Europe, especially at a time when the widening chasm between the West and the Islamic world looms as the greatest foreign policy challenge. Yet Ankara's relations with Washington are strained - over Iraq, Cyprus, Syria, Iran and Hamas - and Turkey's prospects for joining the European Union remain uncertain.

As Washington prepares for a visit Wednesday by Turkey's foreign minister, Abdullah Gul, the United States and Turkey should explore three initiatives to repair and revitalize their relationship.

First, although the United States and Turkey share broad goals in Iraq, the situation there threatens a potential breach in relations. The Turks feel the war in Iraq has undermined their security by stirring Kurdish nationalism. It also coincided with renewed terrorist attacks mounted by the Kurdistan Worker's Party from inside Iraq. To address this challenge, the United States should initiate a trilateral dialogue on the future of Iraq with Turkey and representatives of the Iraqi government, including Kurdish leaders.

If the effort to build a functioning Iraqi government is successful, this trilateral consultative process will support the common goal of a unified and sovereign Iraq; should the Iraqi government fail, the dialogue will provide a mechanism for managing some of the worst potential consequences.

Second, Washington must make it a diplomatic priority to persuade skeptics in Europe to take a more positive approach toward Turkey. Peering into the future and considering the strategic implications of a Turkey unmoored - or, more darkly, a Turkey that turns against its traditional partners, aligning itself more closely with Damascus, Moscow or Tehran - should be instructive.

Washington needs to make the case to its European allies that delaying Turkey's accession to the EU could harm their security. The longer accession takes, the more likely it is that Turks will become disenchanted with the EU and look elsewhere for opportunities; it is also more likely that Turkey's impressive political reform process, which began in 2002, will stall.

Further, Washington should take a leadership role in working to resolve the Cyprus conflict, which threatens to create further obstacles to Turkish EU membership. Rather than waiting for a new UN or EU initiative on the future of the island, America should catalyze a renewed negotiation process. A special Cyprus coordinator would work with the UN and EU to develop a new plan for reuniting the island, encourage European leaders to use their collective clout to require more constructive behavior from the Cypriot government, and coordinate Washington's political, diplomatic and economic steps to break Turkish Cypriots from their international isolation.

Third, the United States and Turkey should establish a high-level commission that meets twice a year and provides a structured mechanism for interaction across agencies of government, nongovernmental organizations and the private sector. At the outset, three working groups should be launched, focusing on security, economic and commercial ties, and educational and cultural exchanges.

A U.S.-Turkey cooperation commission could facilitate the re-establishment of the sustained interaction that characterizes America's strongest partnerships, and provide a foundation for keeping Turkey aligned with the West should Ankara's bid for EU membership ultimately fail.

As tensions over the outcome in Iraq mount, the prospects for generating positive momentum in U.S.- Turkey relations are diminishing. The consequences of a disoriented Turkey would be even greater than a failure in Iraq. America and Europe must do everything they can to ensure that Turkey remains firmly anchored in the West.

Steven A. Cook and Elizabeth Sherwood-Randall are fellows at the Council on Foreign Relations.

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PESD director David G. Victor testifies to the Senate Committee on Energy and Natural Resources that the U.S.-India nuclear deal currently being debated by Congress could have a large impact on greenhouse gas emissions and be a major step towards engaging developing countries in the fight against climate change.

David Victor shows that by displacing coal-fired electricity generation, the U.S.-India nuclear deal could realize carbon dioxide emission reductions that rival the European Union's efforts under the Kyoto Protocol and far exceed previous efforts to engage developing countries in combating climate change.

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Despite its threat of severe consequences, the Bush administration has little leverage to use on North Korea to keep it from testing a long-range missile and few ways to punish the nuclear-armed nation if it proceeds. Daniel C. Sneider, associate director for research at Shorenstein APARC, comments.

WASHINGTON - Despite its threat of severe consequences, the Bush administration has little leverage to use on North Korea to keep it from testing a long-range missile and few ways to punish the nuclear-armed nation if it proceeds.

The United States has no diplomatic or economic ties with North Korea, the rudimentary U.S. missile-defense system is untested in real-world conditions and Pyongyang is regarded as having a right to test missiles, making any American attack to forestall a launch an act of war with potentially explosive consequences.

"The United States could try to shoot down the rocket, but good luck,'' said Wonhyuk Lim of the Brookings Institution, a policy-research organization in Washington.

The dearth of options illustrates the limits of the administration's pre-emption strategy and its need to rely on the cooperation of others -- especially given the strains on the U.S. military from Iraq and Afghanistan -- to contain threats.

Washington hopes that the world's only Stalinist regime will heed demands by the United States, South Korea, Japan, Russia and China to uphold a self-imposed 1999 moratorium on missile tests and rejoin talks on curbing its nuclear program in return for security guarantees and economic and political benefits.

At the same time, the administration is reviewing its options should the Kim Jong Il regime test-fire what U.S. officials describe as a multi-stage Taepodong-2 missile, thought to be capable of reaching Alaska.

"The launch of a missile would be a provocation,'' Assistant Secretary of Defense Peter Rodman said Thursday during a House Armed Services Committee hearing. "If such a launch took place, we would seek to impose some cost on North Korea.''

Rodman declined to say what Washington would do. Experts said that even the imposition of sanctions by the United States would be largely symbolic.

They think that North Korea would not have readied the missile for flight unless it had decided it could live with the consequences.

"It probably means they are not worried about the American reaction,'' said Daniel C. Sneider of Stanford University's Shorenstein Asia-Pacific Research Center. "There is nothing that the United States can do to them.''

The United States has no diplomatic relations or financial assistance it can threaten to cut, and it suspended contributions to international food aid for North Korea last year.

The administration has moved against Pyongyang by trying to halt its missile sales to other countries, its alleged international narcotics trafficking, and its alleged counterfeiting of U.S. currency, cigarettes and over-the-counter drugs.

Under American pressure, banking regulators in February froze North Korean accounts at the Banco Delta Asia, a Macao bank that the U.S. Treasury Department accused of laundering North Korea's ill-gotten gains.

Other banks, anxious to avoid American scrutiny, reportedly have curtailed business with North Korea.

David L. Asher, a former Treasury Department official who oversaw the crackdown on North Korea's alleged illicit dealings, said the United States could respond to a test with an intensified campaign against Pyongyang's alleged international criminal activities that would hurt the ruling elite.

"Do not underestimate the impact of the financial pressure we could put on them,'' said Asher, a scholar with the Institute for Defense Analyses, a policy-research organization.

Washington is counting on Japan, which also is threatened by Pyongyang's nuclear arms and missile programs, to react to a launch by closing ports to North Korean ships and shutting off remittances by ethnic Koreans to relatives in North Korea. But those measures are expected to have limited impact.

A North Korean missile test in 1998 prompted Japan to boost missile-defense cooperation with the United States, and experts said a new launch probably would prompt Washington and Tokyo to forge even closer military ties.

The only nations that could tighten the screws significantly are China and South Korea, North Korea's main foreign trading partners and aid donors.

But while Seoul and Beijing would be outraged, because a missile test would effectively kill hopes of restarting talks on containing North Korea's nuclear arms program, they are unlikely to take any step that could rock Pyongyang.

Both are anxious to avoid destabilizing their neighbor of 26 million people. China doesn't want to be overwhelmed by North Korean refugees, and South Korea would be unable to bear the economic and social costs of sudden reunification.

They also fear that Kim's government could lash out with its million-member army against the South, igniting a conflict that would drag in the United States and devastate the Asian-Pacific economy.

"China and South Korea fear instability more than they fear a nuclear North Korea,'' said Marcus Noland, an expert at the Economic Policy Institute.

Moreover, Beijing probably would be unwilling to jeopardize the budding commercial ties it has been pursuing with North Korea.

"China opposes sanctions on North Korea because it believes they would lead to instability, would not dislodge the regime but would damage the nascent process of market reforms and harm the most vulnerable,'' said a February report by the International Crisis Group, a conflict-prevention organization.

South Korea has been pursuing a policy of economic engagement and political exchanges with North Korea.

The United States has been consulting with members of the U.N. Security Council on a response to a North Korean test. But North Korea has the right under international law to test-fire missiles, making it tough for the United States to win more than words of chastisement of North Korea from the council.

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Michael Wara shows while inducing significant participation by developing countries, the Clean Development Mechanism has failed to realize its full environmental potential. Reductions are much smaller than claimed, politicization is prominent, and the scheme has done little to encourage the profound changes in energy technology needed to address climate change.

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Innovative financial instruments are being created to reward conservation on private, working lands. Major design challenges remain, however, to make investments in biodiversity and ecosystem services economically attractive and commonplace. From a business perspective, three key financial barriers for advancing conservation land uses must frequently be addressed: high up-front costs, long time periods with no revenue, and high project risk due to long time horizons and uncertainty. We explored ways of overcoming these barriers on grazing lands in Hawaii by realizing a suite of timber and conservation revenue streams associated with their (partial) reforestation. We calculated the financial implications of alternative strategies, focusing on Acacia koa ("koa") forestry because of its high conservation and economic potential. Koa's timber value alone creates a viable investment (mean net present value = $453/acre), but its long time horizon and poor initial cash flow pose formidable challenges for landowners. At present, subsidy payments from a government conservation program targeting benefits for biodiversity, water quality, and soil erosion have the greatest potential to move landowners beyond the tipping point in favor of investments in koa forestry, particularly when combined with future timber harvest (mean net present value = $1,661/acre). Creating financial mechanisms to capture diverse ecosystem service values through time will broaden opportunities for conservation land uses. Governments, nongovernmental organizations, and private investors have roles to play in catalyzing this transition by developing new revenue streams that can reach a broad spectrum of landowners.

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The European Forum at the Freeman Spogli Institute for International Studies at Stanford University had an eventful and exciting 2005-06 academic year. We organized almost thirty seminars, workshops and other events on cultural, economic and political issues affecting Europe, its relations with the United States and its role in the world.

We hosted several prominent politicians and diplomats during the academic year. In October John Bruton, European Union Ambassador to the United States and former Prime Minister of Ireland (1994-97), presented his views on Europe and the United States as global partners. Earlier during the Fall we were honored to welcome Latvian Foreign Affairs Minister Artis Pabriks. He gave a lecture on Latvia's current challenges in foreign policy and homeland security.

During the Winter term Estonian President Arnold Rüütel visited Stanford. In his talk he addressed such issues as Estonia's relations with the United States, the European Union and Russia. Andras Simonyi, Hungarian Ambassador to the United States, also visited the European Forum. He presented a fascinating lecture on the political and economic situation in Hungary two years into its EU membership. Three more diplomats gave talks during the Winter Quarter. Kurt Volker, Principal Deputy Assistant Secretary of State for European and Eurasian Affairs, spoke about the United States, Europe and the broader Middle East. Dominic Martin, Counsellor at the British Embassy in Washington, talked about the United Kingdom and its current challenges and opportunities in world politics. Richard Morningstar, former United States Ambassador to the European Union, Lecturer at the Stanford Law School and European Forum Research Affiliate, presented his insights into the cooperation between the United States and the European Union in counter-terrorism. This last seminar was part of a series of events the European Forum organized on the manners in which European countries and institutions are dealing with the threat of terrorism, following the attacks in Madrid and London.

The War on Terror was also among the issues addressed by Joschka Fischer, former German Foreign Minister (1998-2005). He visited the Freeman Spogli Institute for International Studies in April and gave a 2006 Frank E. and Arthur W. Payne Distinguished Lecture for a standing room only crowd at the Bechtel Conference Center at Encina Hall. He talked about Europe's prospects in a globalized world and the future of transatlantic relations. British Ambassador Sir David Manning gave an equally well-attended and equally impressive 2006 Frank E. and Arthur W. Payne Distinguished Lecture on energy as a burning issue in foreign policy.

Other events organized on the topic of counter-terrorism included a round-table discussion on anti-terrorism finance, by Jacob Shapiro, Laura Donohue and Khalid Medani, all affiliated to Stanford University, and a lecture on the French experience of counter-terrorism by Jeremy Shapiro from the Brookings Institution. The series of events culminated with a lecture and a seminar by prolific author and columnist Christopher Hitchens. During a visit to the European Forum in May he presented his fascinating and thought-provoking views on the war on terror, and the situation in Iraq and Iran. The series of events on terrorism is to continue during the next academic year and will culminate with a Thinking Terrorism conference in late 2007.

Furthermore, we organized a number of events on other political issues. German sociologist Heinz Bude, from the University of Kassel, presented his views on the most recent German elections from a broad, societal and historical perspective, paying attention to the 1968 student uprisings and their long-term impact on German society. Christian Deubner, from the CEPII research center in Paris, shared his opinions on current developments in French politics, with a focus on the French rejection of the EU Constitution earlier this year and its impact on France's position in the EU. German author Peter Schneider offered his reflections on the cultural differences between Europe and the United States. He compared the relationship between the two continents to a marriage that has its ups and downs, but endures. Josef Joffe, Editor of the German newspaper Die Zeit, pointed at cultural, demographic, political and economic reasons to argue that the European Union is not about to become a new superpower.

Ken Kollman, from the University of Michigan, presented a political-economic model of leadership in federations and applied it to the EU. Bert Martens, an economist at the EU Commission in Brussels, presented an analysis of the EU's export of political and economic institutions to its neighboring countries, and the incentives it provides for regime change. Markus Hadler, a sociologist at the University of Graz and visiting professor at the European Forum during the past academic year, offered an appraisal of democracy in Europe.

Simon Hug, from the University of Zürich, presented a political-economic model of the negotiations for an EU constitution. Yaron Deckel, from the European Broadcasting Service, talked about the most recent Israeli Elections. Cas Mudde, from the University of Antwerp, presented a talk on immigration and the success of populist parties in the Low Countries. Piet Jan Slot, from Leiden University, gave a seminar on the EU's plans for an internal market for services.

We also organized a number of seminars dealing with various aspects of World War II and its aftermath. There was a talk on the effects of the Europeanization of the holocaust on the attitudes toward Jews, by Werner Bergmann from the Technische Universität Berlin. Monica Siegel, from California State University, Sacramento, gave a presentation on memory and reconciliation in France and Germany. Richard Evans, from Cambridge University, talked about coercion and consent in Nazi Germany. Wolfgang Eichwede, from the University of Bremen, gave a seminar on the dissident movement and Samizdat culture in Eastern Europe. Holocaust survivor Leopold Engleitner and his biographer Bernhard Rammerstorfer talked about surviving Buchenwald as a Jehova's Witness. Martina Pottek, from Bonn University, gave a presentation about artistic concepts to commemorate the holocaust.

Andreas Dorschel, Professor at the University of Graz, and Visiting Austrian Chair Professor at the European Forum during the past academic year, presented a lecture on Bruckner and the 19th century fates of origin.

As the next academic year draws near, we anticipate many more prominent speakers to visit the European Forum. Included in our schedule is the Europe Now lecture featuring Daniel Cohn-Bendit in November 2006.

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The Walter H. Shorenstein Asia-Pacific Research Center is happy to announce that Daniel Sneider has accepted the position of associate director for research. For the past year (2005-06), he has been a Pantech Fellow at the Center and involved in many Center projects and events.

Sneider has had a long career as a foreign correspondent and worked most recently as the foreign affairs columnist of the San Jose Mercury News. His column on foreign affairs, looking at international issues and national security from a West Coast perspective, is syndicated nationally on the Knight Ridder Tribune wire service, reaching about 400 newspapers in North America. He previously served as national/foreign editor of the San Jose Mercury News.

From 1990-94, Sneider was the Moscow bureau chief of the Christian Science Monitor, covering the end of Soviet Communism and the collapse of the Soviet Union. From 1985-90, he was Tokyo correspondent for the Monitor, covering Japan and Korea. He has worked in India covering South and Southeast Asia, covered the United Nations, and extensively covered defense and national security affairs.

Sneider's responsibilities as associate director for research will fall into two main categories: research management and program development. He will work closely with the Center's director and faculty to design and manage research projects. With the Center director, he will represent the Center in its interactions within the Freeman Spogli Institute and the University, and will serve as a liaison with specialists from the fields of academia, policy, and business. Sneider will also oversee the publication of Center research findings. He will also provide substantive support for the varied lecture and seminar series the Center hosts each year.

"He joins us at a critical time," says Center director, Gi-Wook Shin, "and I have no doubt that his contribution will give a tremendous boost to our research projects, particularly those that are policy-oriented."

Sneider will also be conducting his own research, which includes finishing his book on Cold War diplomatic history of the United States' alliances with Japan and Korea, and continue to write commentary on current policy issues in the Asia-Pacific region and on U.S. foreign policy.

Sneider will start in this position on July 1, after he has completed his Pantech Fellowship responsibilities.

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