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Appeared in Stanford Report, May 29, 2014

By Clifton B. Parker

The electoral eruption of anti-European Union populism is a reflection of structural flaws in that body but does not represent a fatal political blow, according to Stanford scholars.

In the May 25 elections for the European Parliament, anti-immigration parties won 140 of the 751 seats, well short of control, but enough to rattle supporters of the EU, which has 28 member nations. In Britain, Denmark, France and Greece, the political fringe vote totals stunned the political establishments.

Stanford political scientist Francis Fukuyama said the rise of extremism and anti-elitism is not surprising in the wake of the 2008 economic downturn and subsequent high levels of unemployment throughout Europe. In one sense, the EU elites have themselves to blame, he said.

"The elites who designed the EU and the eurozone failed in a major way," he said. "There was a structural flaw in the design of the euro (monetary union absent fiscal union, and the method of disciplining countries once in the zone)," said Fukuyama, the Olivier Nomellini Senior Fellow at Stanford's Freeman Spogli Institute for International Studies and the Center for Democracy, Development and the Rule of Law, and Research Afflilate at The Europe Center.

Some have argued that the European Union should adopt a form of fiscal union because without one, decisions about taxes and spending remain at the national level.

As Fukuyama points out, this becomes a problem, as in the case of a debt-ridden Greece, which he believes should not have qualified for EU membership in the first place. In fact, he said, it would have been better for Greece itself to leave the euro at the outset of the 2008 crisis.

Still, Fukuyama said the big picture behind the recent election is clear – it was a confluence of issues and timing.

"It is a bit like an off-year election in the U.S., where activists are more likely to vote than ordinary citizens," he said.

Fukuyama believes the EU will survive this electoral crisis. "I think the EU will be resilient. It has weathered other rejections in the past. The costs of really exiting the EU are too high in the end, and the elites will adjust, having been given this message," he said.

Meanwhile, the populist parties in the different countries are not unified or intent on building coalitions with each other.

"Other than being anti-EU, most of them have little in common," Fukuyama said. "They differ with regard to specific positions on immigration, economic policy, and they respond to different social bases."

Ongoing anger

Dan Edelstein, a professor of French, said the largest factor for success by extremist candidates was "ongoing anger toward the austerity policy imposed by the EU," primarily by Germany.

Edelstein estimates that a large majority of French voters are still generally supportive of the EU. For the time being, the anti-EU faction does not have a majority, though they now have much more representation in the European Parliament.

Edelstein noted existing strains among the anti-EU parties – for example, the UK Independence Party in Britain has stated that it would not form an alliance with the National Front party in France.

Immigration remains a thorny issue for some Europeans, Edelstein said.

"'Immigration' in most European political debates, tends to be a synonym for 'Islam.' While there are some countries, such as Britain, that are primarily worried about the economic costs of immigration, in most continental European countries, the fears are cultural," he said.

As Edelstein put it, Muslims are perceived as a "demographic threat" to white or Christian Europe. However, he is optimistic in the long run.

"It seems a little early to be writing the obituary of the EU. Should economic conditions improve over the next few years, as they are predicted to, we will likely see this high-water mark of populist anger recede," said Edelstein.

Cécile Alduy, an associate professor of French, writes in the May 28 issue of The Nation about how the ultra-right-wing National Front came in first place in France's election.

"This outcome was also the logical conclusion of a string of political betrayals, scandals and mismanagement that were only compounded by the persistent economic and social morass that has plunged France into perpetual gloom," she wrote.

Historian J.P. Daughton said that like elsewhere in the world, immigration often becomes a contentious issue in Europe in times of economic difficulties.  

"High unemployment and painful austerity measures in many parts of Europe have led extremist parties to blame immigrants for taking jobs and sapping already limited social programs," he said.

Anti-immigration rhetoric plays particularly well in EU elections, Daughton said. "Extremist parties portray European integration as a threat not only to national sovereignty, but also to national identity.

Edelstein, Alduy and Daughton are all Faculty Affiliates of The Europe Center.

Wake-up call

Russell A. Berman, a professor of German studies and comparative literature, said many Europeans perceive the EU as "somehow impenetrable, far from the civic politics of the nation states."

As a result, people resent regulations issued by an "intangible bureaucracy," and have come to believe that the European Parliament has not grappled with major issues such as mustering a coherent foreign policy voice, he said.

"The EU can be great on details but pretty weak on the big picture," said Berman, who is the Walter A. Haas Professor in the Humanities, Senior Fellow at the Hoover Institution, and Faculty Affiliate of The Europe Center. "It is this discrepancy that feeds the dissatisfaction."

Yet he points out that the extremist vote surged in only 14 nations of the EU – in the other 14, there was "negligible extremism," as he describes it.

"We're a long way from talking about a fatal blow, but the vote is indeed a wake-up call to the centrists that they have to make a better case for Europe," Berman said.

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A man walks past a board displaying provisional results of the European Parliament election at the EU Parliament in Brussels
A man walks past a board displaying provisional results of the European Parliament election at the EU Parliament in Brussels May 25, 2014.
REUTERS / Francois Lenoir
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Why do voters agree to bear the costs of bailing out other countries? Despite the prominence of public opinion in the ongoing debate over the eurozone bailouts, voters’ preferences on the topic are poorly understood. The article's authors conduct the first systematic analysis of this issue using observational and experimental survey data from Germany, the country shouldering the largest share of the EU’s financial rescue fund. Testing a range of theoretical explanations, we find that individuals’ own economic standing has limited explanatory power in accounting for their position on the bailouts. In contrast, social dispositions such as altruism and cosmopolitanism robustly correlate with support for the bailouts. The results indicate that the divide in public opinion over the bailouts does not reflect distributive lines separating domestic winners and losers. Instead, the bailout debate is better understood as a foreign policy issue that pits economic nationalist sentiments versus greater cosmopolitan affinity and other-regarding concerns.
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American Journal of Political Science
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Jens Hainmueller
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GOVERNORS' MEETING IN SILICON VALLEY

U.S.-Japan Economic Collaboration at the State-Prefecture Level

 

July 28, 2014

MacCaw Hall at Arrillaga Alumni Center, Stanford University

 

This July, as part of the U.S.-Japan Council’s (USJC) Governors’ Circle Initiative, USJC and The Walter H. Shorenstein Asia-Pacific Research Center (APARC) will convene a Japan Governors’ Meeting in Silicon Valley. Governors from six prefectures, namely Fukuoka, Hiroshima, Oita, Okayama, Saga and Shizuoka, have confirmed their attendance, and each plans to bring a delegation of business leaders and government officials involved in bilateral economic collaboration. These governors are interested in the state of California, particularly Silicon Valley, as a leader in the fields of IT, biomedical/healthcare, automobile technology, clean energy and consumer goods. This event will serve as a catalyst for select Japanese prefectures to connect with the Silicon Valley’s innovative companies, pilot projects, and state-of-the-art technologies across a number of sectors, including technology licensing, market development, manufacturing agreements, investments, joint ventures, and strategic partnerships.

For registration, please visit http://bit.ly/GovCircle    

 

Date: July 28:  Plenary Session and Networking Reception/Sake Tasting (Open to Public)  

2:00 - 2:15 pm:    Opening Remarks

2:15- 2:45 pm:     Presentation by the Director of Stanford’s Freeman Spogli Institute for International Studies (FSI)

2:45 – 4:00 pm:   Governors’ Panel Discussion on Prefectures’ Economic Collaboration Targets and Collaboration with Silicon Valley

4:00 - 4:15 pm:    Break

4:15 - 5:15 pm:    Presentations:  “How Stanford Played a Significant Role in Creating New Businesses Collaborations in Silicon Valley”

5:15 - 5:30 pm:    Closing Remarks

5:30 – 7:30 pm:  Networking Reception

Frances C. Arrillaga Alumni Center

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Special Event:  Pascal Lamy Lecture

“World Trade and Global Governance”

 
The Europe Center invites you to a special lecture by Pascal Lamy, the former Director-General of the World Trade Organization.
 
Image
Image of Pascal Lamy
Date: February 10, 2014 
Time: 4:00 - 5:30 p.m.
Venue: Bechtel Conference Center, Encina Hall
RSVP by February 5, 2014                       
  
Mr. Lamy will speak on the necessary mix of economic, social, and political policies that will determine the efficacy of free trade as an engine of global economic growth. In particular, he will outline a statement of his own thinking about the future of global governance and international trade, and describe what remains to be done in addressing the challenges of globalization. Additionally, Mr. Lamy will reflect on the features of modern politics that create governance gridlock and thwart global oversight, and will identify how progress can be made in overcoming impediments to policy action at the international level. 
 
My Lamy served as the Director-General of the World Trade Organization from 2005-2013. He is currently the Honorary President of the Paris-based think tank, Notre Europe.
 
 

Meet our Visiting Scholars:  Bjørn Høyland 

 
In each newsletter, The Europe Center would like to introduce you to a visiting scholar or collaborator at the Center. We welcome you to visit the Center and get to know our guests.
 
Bjør
Image
Image of Bjorn Hoyland
n Høyland (PhD, London School of Economics, 2005) is Professor of Political Science at the University of Oslo, Norway. He is currently visiting Professor and Anna Lindh Fellow at The Europe Center, Freeman Spogli Institute for International Studies and Stanford Global. The focus of his research is European Union politics and comparative legislative politics. Professor Høyland’s list of journal publications includes the American Political Science Review, Annual Review of Political Science, British Journal of Political Science, and European Union Politics. His textbook (with Simon Hix) The Political System of the European Union (3rd ed) is the standard text for advanced courses on the European Union.

Workshop Schedules  

 
The Europe Center invites you to attend the talks of speakers in the following workshop series: 
 

Europe and the Global Economy

 
January 23, 2014
David Dreyer Lassen, Professor of Economics, University of Copenhagen
RSVP by Jan 20, 2014 
 
February 20, 2014
Alan Deardorff, John W. Sweetland Professor of International Economics & Prof. of Economics and Public Policy, University of Michigan
RSVP by Feb 17, 2014
 
Mar 6, 2014
Sophie Meunier, Research Scholar, Woodrow Wilson School and Co-Director, EU Program at Princeton, Princeton University
RSVP by Mar 3, 2014
 
Mar 13, 2014
Randy Stone, Professor of Political Science, University of Rochester
RSVP by Mar 10, 2014
 
Apr 3, 2014
Kåre Vernby, Associate Professor, Department of Government, Uppsala University
RSVP by Mar 31, 2014
 
Apr 17, 2014
Mark Hallerberg, Professor of Public Management and Political Economy, Hertie School of Governance 
RSVP by Apr 4, 2014
 
May 15, 2014
Christina Davis, Prof. of Politics and International Affairs, Princeton University
RSVP by May 12, 2014

European Governance

 
February 6, 2014
Matthew Gabel, Professor of Political Science, Washington University at St. Louis
RSVP by Feb 3, 2014
 
May 22, 2014
Wolfgang Ischinger, Former German Ambassador to the U.S.; Chairman, Munich Security Conference
RSVP by May 19, 2014
 
May 29, 2014
Simon Hug, Professor of Political Science, University of Geneva
RSVP by May 26, 2014

Other Events

 
The Europe Center also invites you to attend the following events of interest:
 
January 27, 2014
Vassil Terziev, Co-founder & CEO, Telerik (BG); and Japec Jakopin, Co-founder & CEO, Seaway (SI)
“Worldclass Enterprise Software and Design Firms in SouthEast and Balkans Europe” 
Sponsor: European Entrepreneurship & Innovation Thought Leaders Seminar
 
January 30, 2014
Ken Schultz, Professor of Political Science, Stanford University
“Making and Breaking Territorial Agreements: Explaining European Exceptionalism”
Sponsor: CISAC Social Science Seminar; co-sponsored by The Europe Center
 
 
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The electoral eruption of anti-European Union populism is a reflection of structural flaws in that body but does not represent a fatal political blow, according to Stanford scholars.

In the May 25 elections for the European Parliament, anti-immigration parties won 140 of the 751 seats, well short of control, but enough to rattle supporters of the EU, which has 28 member nations. In Britain, Denmark, France and Greece, the political fringe vote totals stunned the political establishments.

Stanford political scientist Francis Fukuyama said the rise of extremism and anti-elitism is not surprising in the wake of the 2008 economic downturn and subsequent high levels of unemployment throughout Europe. In one sense, the EU elites have themselves to blame, he said.

"The elites who designed the EU and the eurozone failed in a major way," he said. "There was a structural flaw in the design of the euro (monetary union absent fiscal union, and the method of disciplining countries once in the zone)," said Fukuyama, the Olivier Nomellini Senior Fellow at Stanford's Freeman Spogli Institute for International Studies and the Center on Democracy, Development and the Rule of Law, and Research Afflilate at The Europe Center.

Some have argued that the European Union should adopt a form of fiscal union because without one, decisions about taxes and spending remain at the national level.

As Fukuyama points out, this becomes a problem, as in the case of a debt-ridden Greece, which he believes should not have qualified for EU membership in the first place. In fact, he said, it would have been better for Greece itself to leave the euro at the outset of the 2008 crisis.

Still, Fukuyama said the big picture behind the recent election is clear – it was a confluence of issues and timing.

"It is a bit like an off-year election in the U.S., where activists are more likely to vote than ordinary citizens," he said.

Fukuyama believes the EU will survive this electoral crisis. "I think the EU will be resilient. It has weathered other rejections in the past. The costs of really exiting the EU are too high in the end, and the elites will adjust, having been given this message," he said.

Meanwhile, the populist parties in the different countries are not unified or intent on building coalitions with each other.

"Other than being anti-EU, most of them have little in common," Fukuyama said. "They differ with regard to specific positions on immigration, economic policy, and they respond to different social bases."

Ongoing anger

Dan Edelstein, a professor of French, said the largest factor for success by extremist candidates was "ongoing anger toward the austerity policy imposed by the EU," primarily by Germany.

Edelstein estimates that a large majority of French voters are still generally supportive of the EU. For the time being, the anti-EU faction does not have a majority, though they now have much more representation in the European Parliament.

Edelstein noted existing strains among the anti-EU parties – for example, the UK Independence Party in Britain has stated that it would not form an alliance with the National Front party in France.

Immigration remains a thorny issue for some Europeans, Edelstein said.

"'Immigration' in most European political debates, tends to be a synonym for 'Islam.' While there are some countries, such as Britain, that are primarily worried about the economic costs of immigration, in most continental European countries, the fears are cultural," he said.

As Edelstein put it, Muslims are perceived as a "demographic threat" to white or Christian Europe. However, he is optimistic in the long run.

"It seems a little early to be writing the obituary of the EU. Should economic conditions improve over the next few years, as they are predicted to, we will likely see this high-water mark of populist anger recede," said Edelstein.

Cécile Alduy, an associate professor of French, writes in the May 28 issue of The Nation about how the ultra-right-wing National Front came in first place in France's election.

"This outcome was also the logical conclusion of a string of political betrayals, scandals and mismanagement that were only compounded by the persistent economic and social morass that has plunged France into perpetual gloom," she wrote.

Historian J.P. Daughton said that like elsewhere in the world, immigration often becomes a contentious issue in Europe in times of economic difficulties.  

"High unemployment and painful austerity measures in many parts of Europe have led extremist parties to blame immigrants for taking jobs and sapping already limited social programs," he said.

Anti-immigration rhetoric plays particularly well in EU elections, Daughton said. "Extremist parties portray European integration as a threat not only to national sovereignty, but also to national identity.

Edelstein, Alduy and Daughton are all Faculty Affiliates of The Europe Center.

Wake-up call

Russell A. Berman, a professor of German studies and comparative literature, said many Europeans perceive the EU as "somehow impenetrable, far from the civic politics of the nation states."

As a result, people resent regulations issued by an "intangible bureaucracy," and have come to believe that the European Parliament has not grappled with major issues such as mustering a coherent foreign policy voice, he said.

"The EU can be great on details but pretty weak on the big picture," said Berman, who is the Walter A. Haas Professor in the Humanities, Senior Fellow at the Hoover Institution, and Faculty Affiliate of The Europe Center. "It is this discrepancy that feeds the dissatisfaction."

Yet he points out that the extremist vote surged in only 14 nations of the EU – in the other 14, there was "negligible extremism," as he describes it.

"We're a long way from talking about a fatal blow, but the vote is indeed a wake-up call to the centrists that they have to make a better case for Europe," Berman said.

 

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The presentation summarizes preliminary findings of my research project on Allied policy towards resistance groups during World War II and its impact on post-war political and ideological divisions.

The research is linked with a multiplicity of historical problems: the western Allies’ balance of political and military considerations during World War II; the Anglo-American cooperation and competition in the field of intelligence; the use of special operations as an instrument of foreign policy, especially in regard to countries where the development of resistance movements had a strong impact on post-war settlement (e.g. Yugoslavia, Greece and Poland); the politics of communist movements between war and revolution in Central and Eastern Europe; the relationship between the Western Allies and the Soviet Union and the Allies’ perception of the latter.

The particular contribution of the project is to bring together aspects which are usually addressed separately: the different national scenarios, whose connections and mutual influence will be investigated; the two Western intelligence agencies, which have been researched mostly in separate ways by scholars of the corresponding nationalities; the Soviet and Western allies’ policies.

Tommaso Piffer is a Marie Curie Postdoctoral Fellow at the Davis Center for Russian and Eurasian Studies at Harvard and at the University of Cambridge. Among his publications is a biography of Alfredo Pizzoni, the political chief of the Italian Resistance (Il Banchiere della Resistenza, 2005), an account of the relationship between the Allies and the Italian Resistance during World War II (Gli Alleati e la Resistenza Italiana, 2010) as well as several essays. He also edited a book in memory of Victor Zaslavsky on Totalitarian societies and democratic transition (Società totalitarie e transizione alla democrazia, 2011, with Vladislav Zubok) and the collection of essays on the political mass murder of Porzus (Porzus. Violenza e resistenza sul confine orientale, 2012). He is an affiliate at the Harvard Center for European Studies and a contributor to the cultural insert of the Italian newspaper Corriere della Sera.

Open to Stanford affiliates

Sponsored by the Center for Russian, East European and Eurasian Studies and co-sponsored by The Europe Center

History Corner, Room 307

Tommaso Piffer Marie Curie Postdoctoral Fellow, Davis Center for Russian and Eurasian Studies, Harvard and University of Cambridge Speaker
Seminars

A central focus of the research efforts at Shorenstein APARC is to analyze the bridges linking Asia and the United States. As the Asian diaspora continues to grow in America and across the world, new possibilities have emerged for migrants who become integrated into their host societies while remaining engaged with their home societies. Such trans-migration creates new innovation and trade opportunities for both Asia and the United States, as a positive-sum game where both sides benefit.

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  • How do startups evolve business models to go global?
  • How do Silicon Valley firms successfully launch and localize in China?
  • How do apps monetize in different markets?
  • How do firms not only sell globally but innovate globally?
  • How do startups hire the right people globally?

China 2.0 of Stanford Graduate School of Business hosts a special event connecting entrepreneur and university communities in Silicon Valley and Beijing:

Location 

Stanford Graduate School of Business Stanford Center at Peking University
Date 5-6p.m., Tuesday, May 27 8-9a.m., Wednesday, May 28
Speakers 

Ken Gullicksen (MBA '94), Chief Operating Officer, Evernote

Moderator: William Barnett, Professor, Stanford Graduate School of Business

Amy Gu (MBA '09), General Manager, China, Evernote 

 

Evernote (印象笔记) is a rapidly growing startup for cloud-based productivity tools through a suite of software and services. Founded in 2005 with its headquarters in Silicon Valley, Evernote has received four rounds of investments for a total of over $250 million and now has 100 million users worldwide. Evolving company growth strategy, marketing, talent recruitment, and product development specifically for the China market, Evernote has quickly attracted over 10 million users in China, now its largest market outside the U.S.

Building on its success within the highly dynamic China market, Evernote has set its sites on innovation from Beijing for global customers: "We’re in Beijing, because Beijing is one of the top centers of innovation. Evernote is in China so that the crucible of innovation can help us build Evernote for the world.”

This invitation-only seminar will employ HD video technology in the "highly immersive classrooms" at Stanford Graduate School of Business and the Stanford Center at Peking University to give participants in both locations the feeling that they are in the same room. Up to 25 faculty, students, entrepreneurs, and innovators at each location will be able to participate in this cross-Pacific presentation and interactive discussion with Stanford Graduate School of Business alumni Ken Gullicksen (MBA ‘94) and Amy Gu (MBA ‘09) and moderated by Professor William Barnett.

About the Speakers

Ken Gullicksen (MBA '94) is an experienced technology executive who has been involved in the formation and growth of several prominent Silicon Valley companies. At Evernote, Ken serves as COO, heading-up Evernote Business, the company's SMB and team-focused service. He is also responsible for investor relations, corporate development and the global sales and support teams. Prior to joining Evernote, Gullicksen spent over a decade as a general partner at Morgenthaler Ventures where, among other accomplishments, he led the first Silicon Valley venture round in Evernote and served on Evernote’s Board of Directors.

Gullicksen began his career as an engineer at Sun Microsystems before shifting focus to business strategy, market development, and engineering management at companies including Nortel Networks, Hitachi-Raychem Display Systems, and Sun Microsystems. He holds an MBA from Stanford Graduate School of Business and a BS in electrical engineering from San Jose State University.

Amy Gu (MBA '09) has extensive experience in running start-up in the mobile internet space in China with focus in making world a better place with the technology innovation. Gu has established Evernote corporate presence in China and directed the strategy initiatives with the goal to make Evernote “the best second brain to Chinese users.”

Currently Gu runs Evernote's full operation in China, including marketing, business development, IT operation, customer support and product improvement. Prior to joining Evernote, Ms. Gu founded two internet start-ups in China and worked in China Mobile and British Telecom developing strategic partnership and product design. Gu has an MBA degree from Stanford Graduate School of Business.

William Barnett is the Thomas M. Siebel Professor of Business Leadership, Strategy, and Organizations at the Graduate School of Business, Stanford University. Barnett studies competition among organizations and how organizations and industries evolve globally. He is conducting a large-scale project that seeks to explain why and how some firms grow rapidly in globalizing markets. After receiving his PhD in Business Administration from the University of California, Berkeley in 1988, Barnett was an Assistant Professor at the University of Wisconsin, Madison School of Business.

In 1991, Barnett came to the Stanford Business School as an Assistant Professor. He became an Associate Professor in 1994 and received tenure in 1996, and has been a full professor since 2001. Barnett has also twice been a Fellow at the Center for Advanced Study in the Behavioral Sciences, and is a Senior Fellow at the Woods Institute for the Environment at Stanford University. Barnett serves as associate editor or editorial board member for several academic journals.

Stanford Graduate School of Business and Stanford Center at Peking University

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