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About the speaker:

Robert D. Hormats is Vice Chairman of Goldman Sachs International. He joined Goldman Sachs in 1982 and became a Managing Director in 1998.

Mr. Hormats served as Assistant Secretary of State for Economic and Business Affairs from 1981 to 1982, Ambassador and Deputy U.S. Trade Representative from 1979 to 1981, and Senior Deputy Assistant Secretary for Economic and Business Affairs at the Department of State from 1977 to 1979. He served as a Senior Staff Member for International Economic Affairs on the National Security Council from 1969 to 1977, where he was Senior Economic Advisor to Dr. Henry Kissinger, General Brent Scowcroft, and Dr. Zbigniew Brzezinski. Mr. Hormats was a recipient of the French Legion of Honor in 1982 and Arthur Fleming Award in 1974.

Mr. Hormats has been a visiting lecturer at Princeton University and is a member of the Board of Visitors of the Fletcher School of Law and Diplomacy and the Dean's Council of the John F. Kennedy School of Government at Harvard University. He is a member of the Council on Foreign Relations and a board member of the Irvington Institute for Immunological Research, Engelhard Hanovia, Inc., The Economic Club of New York, and Freedom House.

Mr. Hormats' latest book is entitled The Price of Liberty: Paying for America's Wars and was featured in Thomas Friedman's March 7, 2007, New York Times column "Don't Ask, Don't Know, Don't Help." Hormats' other publications include Abraham Lincoln and the Global Economy; American Albatross: The Foreign Debt Dilemma; and Reforming the International Monetary System.

Mr. Hormats earned a B.A. from Tufts University in 1965 with a concentration in economics and political science. In 1966 he earned an M.A. and, in 1970, a Ph.D. in international economics from the Fletcher School of Law and Diplomacy.

About the moderator:

Professor David M. Kennedy is the Donald J. McLachlan Professor of History at Stanford University. Reflecting his interdisciplinary training in American Studies, which combined the fields of history, literature, and economics, Professor Kennedy's scholarship is notable for its integration of economic and cultural analysis with social and political history. His 1970 book, Birth Control in America: The Career of Margaret Sanger, embraced the medical, legal, political, and religious dimensions of the subject and helped to pioneer the emerging field of women's history. Over Here: The First World War and American Society (1980) used the history of American involvement in World War I to analyze the American political system, economy, and culture in the early twentieth century. Freedom From Fear: The American People in Depression and War (1999) recounts the history of the United States in the two great crises of the Great Depression and World War II. In 2000, the book was awarded the Pulitzer Prize, the Francis Parkman Prize, the Ambassador's Prize, and the California Gold Medal for Literature.

Professor Kennedy teaches both undergraduate and graduate courses in the history of the twentieth-century United States, American political and social thought, American foreign policy, American literature, and the comparative development of democracy in Europe and America.

About The Price of Liberty: Paying for America's Wars:

In a bracing work of history, a leading international finance expert reveals how our national security depends on our financial security

More than two centuries ago, America's first secretary of the treasury, Alexander Hamilton, identified the Revolutionary War debt as a threat to the nation's creditworthiness and its very existence. In response, he established financial principles for securing the country--principles that endure to this day. In this provocative history, Robert D. Hormats, one of America's leading experts on international finance, shows how leaders from Madison and Lincoln to FDR and Reagan have followed Hamilton's ideals, from the greenback and a progressive income tax to the Victory Bond and Victory Garden campaigns and cost-sharing with allies.

Drawing on these historical lessons, Hormats argues that the rampant borrowing to pay for the war in Iraq and the short-sighted tax cuts in the face of a long-term war on terrorism run counter to American tradition and place our country's security in peril. To meet the threats facing us, Hormats contends, we must significantly realign our economic policies--on taxes, Social Security, Medicare, and oil dependency--to safeguard our liberty and our future.

Quotes in praise of The Price of Liberty: Paying for America's Wars:

"Bob Hormats has taken on the impossible: making lively history of the fiscal side of America's wars. Taxes and spending, economics and politics, all mixed up together in times of national crisis, from the Revolution and Alexander Hamilton to Iraq and both George Bushes. There are lessons to be learned and too often forgotten, even for the financing of the new 'War on Terror.'"--Paul Volcker, former chairman of the Federal Reserve

"The Price of Liberty is both a superb history and an urgent call for appropriate fiscal policy in the current campaign against terrorism. Hormats shows that, time and again, how wars were paid for determined how wars were fought--and won or lost. An important and timely book."--David M. Kennedy, author of Freedom from Fear

"Robert Hormats mounts a compelling argument that America faces large-scale economic catastrophe due to lack of a long-term, fiscally sound strategy for meeting military and security needs as well as domestic obligations. The Price of Liberty is a fascinating book and its message is hard to ignore."--Henry Kissinger

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Robert D. Hormats Vice Chairman, Goldman Sachs International Speaker
David M. Kennedy (Moderator) Donald J. McLachlan Professor, History, Stanford University, and Winner of the 2000 Pulitzer Prize Moderator
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Starting next fall, Stanford's 25-year-old International Policy Studies (IPS) master's program will double in length and expand its interdisciplinary scope to train a new generation of graduates prepared for careers in international policy-making and advocacy.

The two-year program is named in honor of Susan Ford Dorsey, president of the Sand Hill Foundation, who has made a gift of $7.5 million, which has been matched by university funds to create a $15 million endowment. According to program Director Stephen J. Stedman, the funding will be used to better integrate the program into the university's international policy research centers, increase access to courses in the law and business schools, use more full-time faculty to teach classes and introduce a practicum that involves solving real-world problems.

Ford Dorsey's endowment fulfills one of the key priorities of Stanford's International Initiative, according to Stedman, which is to address global problems by leveraging the university's cross-disciplinary and collaborative research and teaching. Ford Dorsey and her husband, Mike, serve on volunteer committees of The Stanford Challenge, which is seeking to raise $4.3 billion in a broad effort to expand the university's role in addressing global challenges and educating the next generation of leaders.

Stedman, a senior fellow at the Freeman Spogli Institute for International Studies (FSI), was asked to lead the program because he has experience in both academic and policy work. In 2003, Stedman served as research director of the U.N. High-Level Panel on Threats, Challenges and Change, which former U.N. Secretary-General Kofi Annan established to analyze global security threats and propose reforms to the international system. Upon completion of the panel's report, A More Secure World: Our Shared Responsibility, Annan asked Stedman to stay on as a special adviser to help get support in implementing the panel's recommendations. Following the U.N. world leaders' summit in September 2005, during which more than 175 heads of state agreed upon a global security agenda developed from the panel's work, Stedman returned to the Center for International Security and Cooperation at FSI.

According to Stedman, the revamped curriculum will give students the skills to understand the complex connections between poverty, deadly infectious disease, environmental degradation, resource depletion, food insecurity, interstate conflict, civil war, nuclear proliferation and terrorism.

"In a world where problems cross borders and disciplines, where threats that were previously thought to be independent are found to be interconnected, where distinctions between what is domestic policy and what is foreign policy are becoming more and more tenuous, students need training and perspective to break down disciplinary silos," Stedman says in a statement on the program's website. "They need the tools and dexterity to work across issue areas and in diverse policy arenas. They need to see connections that others miss, and be able to describe and explain those connections so that others will then see them too."

The program, which will be jointly administered by the School of Humanities and Sciences and FSI, will continue to admit about 30 students a year, with up to half coming from outside the United States. Students are required to have taken prerequisite courses in economics and statistics, and to speak a foreign language.

At a Feb. 7 dinner celebrating the newly endowed program, Gareth Evans, president of the International Crisis Group and a member of the U.N. High-Level Panel, talked about the need to "make idealism realistic" and discussed the concept of a state's "responsibility to protect" civilians as a new international norm. "In just five years, which is short in the history of ideas, a brand new historical norm" was introduced and recognized by much of the international community, he said. "This was a historic breakthrough. It should reinvigorate our belief in the art of the possible." Concerning the Ford Dorsey IPS program, Evans said, "When it comes to making idealism realistic  there really could be no better place anywhere in the world that this new master's program at Stanford."

The incoming fall cohort of IPS students will study writing and rhetoric and international economics. They will take core courses in Issues in International Policies, which introduces Stanford's policy research centers and provides analyses of current global issues, and Managing Global Complexity, which teaches concepts and theories of international relations while focusing on issues with competing policy concerns. "The goal is to understand that much of what we study today is marked by trade-offs among various goods that we seek to promote," Stedman says in the statement. "Globalization and interdependence creates opportunities for creative solutions to problems, while sometimes creating negative unintended consequences for policy solutions."

IPS students will take a "gateway" course before selecting a concentration during the second year. These specialized fields include democracy, development and the rule of law; energy, environment and natural resources; global health; global justice; international negotiation and conflict management; international political economy; and international security and cooperation. Finally, students will complete a small group practicum in which they will be required to develop solutions to current global problems.

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Steven Pifer is a Senior Adviser with the Center for Strategic & International Studies. A retired Foreign Service Officer, his more than 25 years with the State Department focused on U.S. relations with the former Soviet Union and Europe, as well as arms control and security issues. He served as Deputy Assistant Secretary of State in the Bureau of European and Eurasian Affairs, with responsibility for Russia and Ukraine (2001-2004), U.S. Ambassador to Ukraine (1998-2000), and Special Assistant to the President and Senior Director for Russia, Ukraine, and Eurasia on the National Security Council (1996-1997). He also served at the U.S. Embassies in Warsaw, Moscow, and London, and is advisor on the U.S. delegation to the negotiations on intermediate-range nuclear forces in Geneva.

Richard L. Morningstar served as U.S. Ambassador to the European Union, appointed under President Bill Clinton in April 1999. His diplomatic career has included service as Special Advisor to the President and the Secretary of State for Caspian Basin Energy Diplomacy (1998), and special Advisor to the President and Secretary of State on Assistance to the New Independent States of the former Soviet Union (1995-1998). Presently, he is teaching both at the Kennedy School at Harvard and the Stanford Law School. In addition, he is the senior director at Stonebridge International LLC, a global business strategy firm, and is senior council at the law firm of Nixon Peabody.

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Steven Pifer Former U.S. Ambassador to Ukraine Speaker
Richard L. Morningstar Former U.S. Ambassador to the European Union Speaker
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Michael A. McFaul
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Lots of ruthless dictators have remained in power during [George W. Bush]'s tenure, but they were in power before Bush came to the White House. Russia is the only major country in the world that has, during Bush's time in office, moved from "partly free" to "not free" (as determined by Freedom House, the leading institution in the democracy assessment business). Vladimir V. Putin is also one of the few leaders in the world with whom Bush has developed a close relationship. If Russian democracy completely breaks down while Bush is still in office, Bush's decision to invest so much time and energy in Putin will look like a strategic mistake.

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In the eyes of many observers of globalization today, its origins are recent and Western. In fact, Indians, Chinese, and Southeast Asians pioneered globalization long before the colonial era. In the 1st century CE, discovery of the monsoon wind brought increasing number of Indian, Roman, and Arab traders to Southeast Asia in search of spices and precious metals. In the 16th century, the port of Malacca emerged as a crucial nexus - the vital transshipment point of commerce between the Indian and Pacific Oceans. The discovery of the New World and the ensuing boom in silver bound Southeast Asia even more tightly with India and Europe in triangular trade. Malacca's early importance as an entrepot is akin to the role that Memphis, Tennessee, plays today as the global air-cargo hub for Federal Express. Against this rich background, Nayan Chanda will contend that "calls to shut down globalization are pointless, because nobody is in charge," while at the same suggesting ways in which "we can attempt to nudge our rapidly integrating world toward a more harmonious course."

Nayan Chanda is director of publications at the Yale Center for the Study of Globalization and editor of YaleGlobal Online. In April 2007 Yale University Press will publish his new book on globalization, Bound Together. In 2005 Stanford and Harvard Universities awarded him their joint Shorenstein Prize for Excellence in Journalism on Asia. In 1990-92 he edited the Asian Wall Street Journal Weekly. His many writings include a widely admired book on Indochina, Brother Enemy: The War After the War (1986). Earlier in his career he worked for the Hong Kong-based Far Eastern Economic Review as its reporter, diplomatic correspondent, and editor.

Co-sponsored with the Global Management Program at Stanford's Graduate School of Business.

This is the Southeast Asia Forum's ninth seminar of the 2006-2007 academic year.

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Nayan Chanda Author of "Bound Together: How Traders, Preachers, Adventurers, and Warriors Shaped Globalization" Speaker
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10,000 Shovels examines China's breakneck growth through a short documentary that integrates statistics, video footage, and satellite images. The documentary focuses on China's Pearl River Delta region while the accompanying teacher's guide takes a broader perspective, exploring many current national issues.
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Dr. Linton was born in Philadelphia in 1950 and grew up in Korea, where his father was a third generation Presbyterian missionary. He is a visiting associate of the Korea Institute, Harvard University, for 2006-07. Linton is currently Chairman of The Eugene Bell Foundation, a not-for-profit organization that provides humanitarian aid to North Korea.

Dr. Linton's talk will focus on the Eugene Bell Foundation and its programs. Named for Rev. Eugene Bell, Lintonn's great-grandfather and a missionary who arrived in Korea in 1895, the Foundation serves as a conduit for a wide spectrum of business, governmental, religious and social organizations as well as individuals who are interested in promoting programs that benefit the sick and suffering of North Korea.

Since 1995, the Foundation strives primarily to bring medical treatment facilities in North Korea together with donors as partners in a combined effort to fight deadly diseases such as tuberculosis (TB). In 2005, the North Korean ministry of Public Health officially asked the Foundation to expand its work to include support programs for local hospitals. The Foundation currently coordinates the delivery of TB medication, diagnostic equipment, and supplies to one third of the North Korean population and approximately forty North Korean treatment facilities (hospitals and care centers).

Dr. Linton's credentials include: thirty years of teaching and research on Korea, twenty years of travel to North Korea (over fifty trips since 1979), and ten years of humanitarian aid work in North Korea. Dr. Linton received a Bachelor of Arts degree from Yonsei University in Seoul, Korea, a Masters of Divinity from Korea Theological Seminary, and a Masters of Philosophy and a Ph.D. in Korean Studies from Columbia University.

This public lecture is part of the conference "Public Diplomacy, Counterpublics, and the Asia Pacific." This conference is co-sponsored by The Asia Society Northern California; The Japan Society of Northern California; Business for Diplomatic Action; Center for International Security and Cooperation at Stanford University; and the Taiwan Democracy Program in the Center on Democracy Development, and the Rule of Law at Stanford University.

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Stephen Linton Chairman Speaker The Eugene Bell Foundation
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In Boston Review's January/February 2007 issue, PESD Director David G. Victor and PESD researcher Danny Cullenward discuss why pursuing technologies that burn coal more cleanly is the "only practical approach" to stopping global warming. Their proposal is part of a larger forum on climate change led by MIT meteorology professor Kerry Emanuel.

Almost every facet of modern life - from driving to the grocery store to turning on a light - relies on inexpensive and abundant fossil fuels. When burned for power, these fuels yield emissions of carbon dioxide that accumulate in the atmosphere. They are the leading cause of global warming.

Assuring ample energy services for a growing world economy while protecting the climate will not be simple. The most critical task will be curtailing emissions from coal; it is the most abundant fossil fuel and stands above the others in its carbon effluent. Strong lobbies protect coal in every country where it is used in abundance, and they will block any strategy for protecting the climate that threatens the industry. The only practical approach is to pursue technologies that burn coal much more cleanly.

Such new technologies exist on the drawing board, but governments and regulators are failing to bring designs into practice with deliberate speed. Instead, most of the policy effort to tackle global warming has focused on creating global institutions, such as the Kyoto Protocol, to entice change. Although noble, these global efforts usually fall hostage to the interests of critical countries. After negotiating the Kyoto treaty, for example, the United States refused to sign when it found that it could not easily comply with the provisions. Australia did the same, and Canada is also poised to withdraw. Nor have treaties like Kyoto crafted a viable framework for engaging developing countries; these countries' share of world emissions is rising quickly, yet they are wary of policies that might crimp economic growth.

Breaking the deadlocks that have appeared in the Kyoto process requires, first and foremost, a serious plan by the United States to control its emissions. The United States has a strong historical responsibility for the greenhouse-gas pollution that has accumulated in the atmosphere, but little has been done at the federal level. (A few states are implementing some policies, and they, along with rising political pressure, might help to catalyze a more aggressive federal approach.) It will be difficult, however, for the United States (and other industrial countries) to sustain much effort in cutting emissions unless its economic competitors in China and the other developing countries make some effort as well. Without a strong policy framework to contain emissions throughout the world, levels of greenhouse-gas pollution will reflect only the vagaries in world energy markets. We need a proper strategy for moving away from harmful emissions.

A few years ago, many analysts thought that market forces were already shifting away from coal. They predicted the growth of natural gas, a fuel prized for its cleanliness and flexibility. That vision was good news for the climate because electricity made from natural gas leads to half of the carbon-dioxide emissions of electricity from coal. But natural-gas prices, which tend to track oil prices, have skyrocketed over the past few years, and, unsurprisingly, the vision for the growth of natural has dimmed. Natural-gas plants, which accounted for more than 90 percent of new plants built in the 1990s, are harder to justify in the boardroom. Most analysts now see a surge in the use of coal. One hundred new coal-fired plants are in the planning stages in the United States. Absent an unlikely plunge in gas prices, coal is here to stay.

Despite the challenges of handling coal responsibly, the potential of research and deployment of advanced technologies to help the United States and the major developing countries find common interest on the climate problem is great. In advanced industrialized countries, the vast majority of coal is burned for electricity in large plants managed by professionals - exactly the setting where such technology is usually best applied. In the United States, for example, coal accounts for more than four fifths of all greenhouse-gas emissions from the electricity sector.

Most of the innovative effort in coal is focused on making plants more efficient. Raising the temperature and pressure of steam to a "supercritical" point can yield improvements in efficiency that, all told, can reduce emissions about 20 to 25 percent. Boosting temperature and pressure still again, to "ultra-supercritical" levels, can deliver another slug of efficiency and lower emissions still further. Encouraging investments in this technology is not difficult: most countries and firms are already searching for gains in efficiency that can cut the cost of fuel; a sizeable fraction of new Chinese plants are supercritical; India is a few steps behind, in part because coal is generally cheaper in that country, but even there the first supercritical unit is expected soon. Across the advanced industrialized world, supercritical is the norm, at least for new plants. A few companies are taking further steps, investing in ultra-supercritical units. Two such plants are going up outside Shanghai, using mainly German technology, evidence that the concept of "technology transfer" is becoming meaningless in the parts of the world economy that are tightly integrated. Markets are spreading the best technologies worldwide where their application makes economic sense. In other countries, technologies to gasify coal - which also promise high efficiency - are also being tested.

But power-plant efficiency alone won't account for the necessary deep cuts in emissions. Already the growth in demand for electricity is outstripping the improvements in power plants such that the need for more plants and fuel is rising ever higher, as are emissions. This is spectacularly true in fast-growing China.

A radical redesign of coal plants will be needed if governments want to limit emissions of carbon dioxide. Here, the future is wide open. One track envisions gasifying the coal and collecting the concentrated wastes. Another would use more familiar technologies and separate carbon dioxide from other gases. All approaches require injecting the pollution underground where it is safe from the atmosphere. This is already done at scale in oil and gas production, where injection is used to pressurize fields and boost output. The consequences of injecting the massive quantities of pollution from power plants, however, are another matter. Regulatory systems are not in place or tested, and public acceptance is unknown.

While these technologies can work, they won't be used widely before they progress on two fronts. First, they must become commercially viable. Despite the huge potential of adopting them, it is striking how little money is being spent on advanced coal technologies. The U.S. government has created some financial incentives to build advanced coal plants, but much of that investment is slated for plants that are not actually designed to sequester CO2. In fact, the uncertainty of American policy gives investors in power plants an incentive to build conventional high-carbon technology, because it is more familiar to regulators and bankers. Worse yet, increased emissions today might actually improve a negotiating position in the future when targets for controlling emissions are ratcheted down from whatever is business as usual. Some private firms, such as BP and Xcel, are putting their own money into carbon-free power - but the totality of the private effort is small compared with the size of the problem. There are good mechanisms in place for encouraging public research and private investment in such technologies; the real shortcoming is in the paucity of the effort.

The second problem is that countries such as China, India, and other key developing nations won't spend the extra money to install carbon-free coal. Yet these countries' share of global coal consumption has soared almost 35 percent over the past ten years.

The inescapable conclusion is that the advanced industrialized countries must create a much larger program to test and apply advanced coal technologies. Electricity from plants with sequestration might eventually cost half more than from plants without the technology. That's not free, but it is affordable and is less than the changes in electric rates that many Americans already experience and accept.

State and federal regulators need to create direct incentives - such as a pool of subsidies - to pay the extra cost until the technology is proven and competitive with conventional alternatives. That subsidy, along with strict limits on emissions, will set a path for cutting the carbon from U.S. electricity without eliminating a future for coal. They must also extend the same incentives to the major developing countries, which have no interest in paying higher rates for electricity because their priorities do not rest on controlling CO2. Yet these countries' involvement now is essential. Averting emissions has a global benefit regardless of where the emissions are controlled. And developing countries are especially unlikely to shoulder more of the burden themselves, in the more distant future, unless they are first familiar with the technologies.

Solving the climate problem will be one of the hardest problems for societies to address - it entails complicated and uncertain choices with real costs today, and benefits in the distant future. Yet the stakes are high and the consequences of indecision severe. Serious action must contend with existing political constituencies and aim at existing resources that are most abundant. The technologies needed to make coal viable will not appear automatically. An active policy effort - pursued worldwide and initially financed by the industrialized world - is essential.

Originally published in the January/February 2007 issue of Boston Review.

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Decreasing our dependence on fossil fuels is the defining challenge of our nation, our world, and our generation. Shifting geopolitical and environmental realities are creating a unique opportunity for a revolution in the way we produce, consume, and think about energy resources. The complementary strategies of diversifying our mix of low-emitting energy sources and improving our energy efficiency are critical economic, environmental, and geopolitical goalsin many ways they are lynch pins upon which our common dreams depend.

Meeting this energy challenge will require a coalition of government and NGO policymakers, engineers, entrepreneurs, corporate leaders, academics, and student activists. Driven by concerns for the environment, economic growth, and national security, there are a growing number of energy-oriented groups. Too often, these groups work in isolation unaware of each other's presence, resources, and reach. Other times, they have had insignificant means to resolve their differences. Energy Crossroads is dedicated to promoting this coalition by convening a major conference of relevant stakeholders.

Featuring a Keynote Address by NY Times Columnist Thomas Friedman, "Green is the New Red, White and Blue."

This event is sponsored by Stanford University's Office of the President, the Woods Institute for the Environment, Freeman Spogli Institute for International Studies, Precourt Institute for Energy Efficiency, The Hoover Institution, School of Earth Sciences, Department of Civil and Environmental Engineering, Stanford Center on Ethics, Business Association of Stanford Engineering Students, ASSU Speaker's Bureau, Mohr Davidow Ventures, and The 11th Hour Project.

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