Francis Fukuyama, one of the world's most prominent experts on democracy, development, and governance has joined Stanford University's Freeman Spogli Institute for International Studies (FSI) as the Olivier Nomellini Senior Fellow, effective July 2010.  He will reside in FSI's Center on Democracy, Development, and the Rule of Law, and fully engage in the center's research, teaching, and policy missions, CDDRL Director Larry Diamond announced.

I am thrilled to be joining Larry Diamond, Stephen D. Krasner, Kathryn Stoner and other colleagues in CDDRL's research, teaching, and policy engagement," said Fukuyama.  "CDDRL is world renowned for its interdisciplinary programs which bridge academic research and policy analysis - and we need break-through thinking in both to advance political and economic development."
- Francis Fukuyama

Fukuyama comes to FSI from the Paul H. Nitze School of Advanced International Studies (SAIS), Johns Hopkins University, where he was the Bernard L. Schwartz Professor of International Political Economy and director of the International Development Program at SAIS.

"We are thrilled that Frank is joining CDDRL and our quest to understand how countries advance politically and economically and the role governance plays in these interrelated challenges," said Diamond. "His path-breaking work on democracy, governance, and state building, his probing intellect, and his passionate commitment to advance theoretical and practical understanding of development - in all its dimensions - will be wonderful assets to our center and students, to the Freeman Spogli Institute, and to Stanford University."

Fukuyama has written widely on political and economic development. His best-known book, The End of History and the Last Man (Free Press, 1992) made the bestseller lists in the United States, France, Japan, and Italy and was awarded the Los Angeles Times' Book Critics Award and the Premio Capri for the Italian edition.  Fukuyama is also the author of America at the Crossroads: Democracy, Power, and the Neoconservative Legacy (2006), State-Building: Governance and World Order in the 21^st Century (2004), Our Posthuman Future: Consequences of the Biotechnology Revolution (2002), The Great Disruption: Human Nature and the Reconstitution of Social Order (1999) and Trust: The Social Virtues and the Creation of Prosperity (1995).  His new book The Origins of Political Order will be published in March 2011.

"We are delighted to welcome Frank Fukuyama at this dynamic time for FSI, particularly as we launch a new Global Underdevelopment Action Fund, to seed action-oriented, multidisciplinary faculty research projects in support of global development," said FSI Director Coit D. Blacker. "Frank's exemplary scholarship and teaching, and his dedication to the expansion of democracy and development, are an inspiration to Stanford faculty and students, and to leaders in transitioning countries the world over."

Dr. Fukuyama served as a member of the President's Council on Bioethics from 2001-2005. He holds an honorary doctorate from Connecticut College, Doane College, and Doshisha University (Japan). He is a member of the Board of Trustees of the Rand Corporation, and sits on the editorial or advisory boards of The American Interest, the Journal of Democracy, the Inter-American Dialogue, and the New America Foundation.

Fukuyama received a BA in classics from Cornell University and a PhD in political science from Harvard. He was a member of the political science department of the Rand Corporation in 1979-80, from 1983 to 1989 and in 1995-96. In 1981-82 and again in 1989, Fukuyama was a member of the Policy Planning Staff of the U.S. Department of State, specializing first in Middle East affairs and then as Deputy Director for European political-military affairs. From 1996-2000, Fukuyama was the Omer L. and Nancy Hirst Professor of Public Policy at George Mason University.

"I am thrilled to be joining Larry Diamond, Stephen D. Krasner, Kathryn Stoner and other colleagues in CDDRL's research, teaching, and policy engagement," said Fukuyama.  "CDDRL is world renowned for its interdisciplinary programs which bridge academic research and policy analysis - and we need break-through thinking in both to advance political and economic development."

The Democratic Party of Japan (DPJ) lost the majority of seats in the upper house of parliament in nationwide elections on July 12, 2010. Daniel C. Sneider discusses implications for Japan's foreign policy following the election, particularly with regard to Japan's relationship with the United States.

Stanford seniors Sam Stone and Ashley Lohmann have been awarded the Firestone Medal and Perry Prize, respectively, for their theses on energy import dependence and the Jihadist terrorist threat to the United States since 9/11.

Stone and Lohmann discussed their findings during a CISAC seminar on June 2. Their papers are available below.

The Firestone Medal for Excellence in Undergraduate Research recognizes the top 10 percent of all honors theses in social science, science and engineering. The William J. Perry Prize is awarded to a student for excellence in policy-relevant research in international security studies. Both recipients are students in CISAC's Undergraduate Honors Program in International Security Studies, directed this year by Senior Fellow Stephen J. Stedman and Thomas Fingar, the Oksenberg/Rohlen Fellow.

Sam Stone, a student in the Department of Mathematics and Program in International Relations, wrote "Gas & Geopolitics: The Foreign Policy Implications of Energy Import Dependency."

Stone's thesis abstract states: "In recent years, much attention has focused on the dangers of dependency on energy imports. Fears of energy import dependency are particularly acute in Eastern Europe, where most countries remain heavily dependent on Russian gas, but similarly dependent relationships exist across the globe. Most energy security research focuses on exporters; this thesis contributes to the study of energy security by exploring the effects of energy dependence on importers."

During 2010-11 academic year, Stone, as a Fulbright Fellow, will study Russian foreign policy, in particular energy security issues and nuclear nonproliferation efforts at Moscow State University. He also plans to continue working with the Stanford US-Russia Forum, an initiative that brings together American and Russian students to explore global issues.

Ashley Lohmann, a student in the Program in International Relations, wrote, "Jihad on Main Street: Explaining the Threat of Jihadist Terrorism to the American Homeland since 9/11."

Lohmann's abstract states: "Since September 11, 2001, 26 jihadist plots and attacks have targeted the American homeland, but because the details of the plots and attacks as well as the profiles of their perpetrators vary greatly, scholars, government officials, and other authorities still disagree about the seriousness of threat posed by jihadist terrorism to the United States. This study provides a clearer understanding of the nature of jihadist terrorism in the U.S. by examining all 26 plots and attacks in detail. It concludes that jihadist terrorism is generally a minimally threatening, homegrown phenomenon, but some plots and attacks still emerge that do pose a serious threat to U.S. national security."

Stedman and Fingar described the award-winning theses as the very best in an exceptionally strong field of submissions by members of this year's honor's class.  "Sam Stone's creative and rigorous use of case studies and 'large N' data to to examine hypotheses about the effects of energy dependence gives decision makers theoretical and empirical tools to anticipate and ameliorate unwanted consequences of dependence on foreign sources of oil and gas," Fingar said. "Ashley Lohmann's rigorous examination of factors contributing to the success or failure of Jihadist threats to the American homeland provides valuable insights on the magnitude and character of such threats and how best to address them. These were the best, but other theses were also worthy of special recognition and we learned much from the work of every member of the class."

How does a corrupt government stop corruption? What if that government is democratic, and must cultivate the support of political parties that are themselves corrupt? Is fostering reform in such a political economy the equivalent of trying to make snow in hell?

These questions may be overstated, but the dilemmas they convey are all too real. Witness the storm of concern triggered by the recent resignation of the highest-profile reformist in Indonesia, Sri Mulyani Indrawati, from her linchpin job as minister of finance in a country that was ranked the most corrupt and the most democratic in Southeast Asia in 2009.

Sri Mulyani waged unremitting war on graft. Under her stewardship of the finance ministry, more than 150 of its personnel were dishonorably discharged. Nearly 2,000 more were otherwise punished for infractions. She led a vigorous campaign against tax cheats. Among them were rich and influential people who had grown accustomed to absconding with funds they owed the government.

Euromoney named her ‘finance minister of the year’ in 2006—a post she had only taken up the year before. In 2008 and again in 2009 Forbes magazine admiringly listed her among ‘the 100 most powerful women in the world.’ Correspondingly, on the heels of her resignation on 5 May 2010, Indonesian stocks and rupiahs fell.

Indonesian president Susilo Bambang Yudhoyono (SBY) was directly elected to that office in 2004 and, for a second five-year term, in 2009. As president he has opposed corruption and championed reform. Fatefully, however, in 2004 he chose a wealthy businessman, Aburizal Bakrie, to join his government as coordinating minister for the economy.

In 2006 in East Java, a Bakrie-controlled company using an unprotected drill while probing for gas may have triggered a mud volcano that would swallow more than a dozen villages and render more than 15,000 people homeless. In 2010 the volcano continued to spew an estimated 100,000 tons of mud daily onto the surface. Bakrie’s reputation for probity was not enhanced when, reportedly against Mulyani’s advice, he insisted on denying responsibility for the disaster. Instead he blamed an undersea earthquake that had struck off the south coast of Java, some 250 kilometers away, two days before the mud erupted. Opinions remain divided as to what caused what.

An unambiguously man-made crisis in 2008, the global financial meltdown, shrank the Jakarta stock market, Bakrie’s holdings included. Trading on the exchange was temporarily suspended. Bakrie urged his fellow cabinet member Mulyani to extend the suspension. She refused. He was furious. Her relations with him worsened further when she slapped travel bans on certain Bakrie company executives accused of tax evasion.

In 2009 Bakrie became chair of the Golkar Party. Toward the end of that year he led a fierce campaign in the Indonesian legislature against both Mulyani and another nonpartisan technocrat, Indonesian vice-president Boediono, for malfeasance related to the government’s decision in 2008 to rescue an ailing financial institution, Bank Century. The bailout may have prevented a spiral of withdrawals, and thus helped Indonesia weather the global crisis, but the effort cost far more than expected, and some of the infusions apparently benefited key depositors more than the bank itself.

Legitimate financial questions were soon superseded, however, by a thoroughly political effort on the part of politicians and their supporters opposed to Mulyani and her reforms to oust not only her but the vice-president as well. Mulyani’s and Boediono’s opponents included, in addition to Bakrie, others whose circumstancial links to corruption she had uncovered.

An anti-Mulyani case in point is the Justice and Welfare Party (PKS). Despite priding itself on upholding Islamic ethics and opposing corruption, the PKS rejected allegations that one of its legislators, Muhammad Misbakhun, could have been implicated in a fictitious Bank Century letter of credit for US $22.5 million. When, at the end of April 2010, Misbakhun was arrested and detained on a warrant signed by the national police official in charge of economic and tax crimes, PKS leaders accused the police of having an ulterior motive. The party had by then, in effect, joined the anti-Mulyani chorus.

Subjected to intense and prolonged criticism by these politicians in the glare of the media, Mulyani had ample reason to quit the spotlight, resign, and leave Indonesia. (On 1 June 2010 she will become a managing director of the World Bank in Washington DC.) But her long record of nonpartisan tenacity in the struggle against corruption makes it hard to believe that she simply lost her will to fight. For the time being it is impossible to rule out that she was sacrificed for the sake of a restoration of political comity between SBY and his opponents.

The irony is that Golkar and the PKS had joined with SBY’s Democrat Party to form a ruling coalition, to which they continue to belong. SBY had built that coalition with the expectation that its members, having joined the government, would support it, including its campaign against corruption.

That inclusive or ‘rainbow’ strategy was a triple failure. First, cabinet posts that might have been held by competent and ethical nonpartisans motivated by a desire for public service were allocated instead to partisans whose skills and motives, shall we say, varied. Governance suffered. Second, coalition-party leaders who were given ministerial posts in return for ensuring broad legislative backing for the government in the legislature either would not or could not deliver that support. Cooptation failed. Third, some ruling-team politicians, who might have at least stood back from the fray, instead jumped in, seemingly hoping to blunt the government’s efforts to diminish corruption and improve governance while protecting themselves and furthering their own careers. Discipline frayed.

Mulyani has resigned. Has Bakrie won?

In a recent conversation, an off-the-record analyst anticipated ‘more stability, which, in Indonesia, correlates inversely with reform.’ He could be wrong. But it may not be coincidental that on 6 May 2010, one day after Mulyani announced her resignation, SBY met with ruling-coalition leaders. Or that the meeting launched a Coalition Parties Forum whose daily activities will be led by none other than the chair of the Golkar Party, Aburizal Bakrie. Or that Bakrie reported that SBY had agreed that the Forum would not try to bind the coalition to a common position. Or that, again according to Bakrie, whereas previously the coalition parties were only asked to help safeguard the government’s policies, henceforth they would be asked to help determine them as well. Much will depend on Mulyani’s replacement as minister of finance, and on whether he or she is told to stop rocking the boat.

If Mulyani’s remarkable legacy is indeed erased, illiberal circles in Singapore may think, ‘We thought so. Democracy does thwart reform.’ But my own judgment in hindsight will be less sweeping.

Indonesia’s Democrat Party is still basically an extension of the appealing personality of SBY. Over the six years since he was first elected president, more time, energy, and resources could have been invested in deepening the roots and popularity of the party itself. Had those assets been so spent, the Democrats might have been able, in the legislative elections of 2009, to enlarge their contingent of lawmakers enough to be able to rule, not by the dubious grace of Sri Mulyani’s antagonists, but in SBY’s and his party’s own right—subject to democracy’s checks and balances, yes, but freed of the need to cobble together a coalitional rainbow of colors that clash.

Donald K. Emmerson heads the Southeast Asia Forum at Stanford University and is also the editor of Hard Choices: Security, Democracy, and Regionalism in Southeast Asia. (Stanford/ISEAS, 2008/9)

A heartening number of analysts helpfully commented on an earlier draft of this essay.  While protecting their privacy by not naming them, I am grateful to them.  Complementing my focus here on the politics of Sri Mulyani’s exit is the economic context ably reviewed by Arianto A. Patunru and Christian von Luebke in their ‘Survey of Recent Developments’ in the Bulletin of Indonesian Economic Studies, 46: 1 (2010, 7-31.)