South Korea and the Global Economy in Transition
These working papers on the South Korean economy are the product of an annual conference series on Korean affairs hosted by Stanford University's Korean Studies Program (KSP), and made possible by the generous support of the Koret Foundation. KSP's 2009–2010 Koret Fellow, Byongwon Bahk, a former vice finance minister and chief economic adviser to Korean president Lee Myung-bak, played a leading role in organizing the 2010 conference, authored a major paper, and co-edited this volume.
From Byongwon Bahk's preface:
The editors believe that the study of the South Korean economy holds, or should hold, interest not only for Koreans but also for Americans and the international community as a whole. Korea has become a major player in the global economy, ranking thirteenth in GDP and seventh in exports among the world's nearly 200 countries. This should no longer come as much of a surprise to consumers across the globe who use Korean cell phones, drive Korean cars, and, increasingly, enjoy Korean pop music and movies.
The Korean economy is also important as a leading model of development. In only two generations and despite national division and the devastation of civil war, South Korea has transformed itself from a largely agricultural economy to a world leader in manufacturing, which in turn facilitated its emergence as a dynamic democracy. The Korean experience holds many lessons for countries throughout the world as they also struggle to modernize in a highly competitive, globalized economy.
Korea's success in navigating the turmoil caused by the global financial crisis and recession of 2008–2009 is yet another reason for studying its economy. Despite its economy being an astounding 85 percent dependent on international trade, Korea has been among the world's leaders in recovering from the crisis. Korea owes that success in part to the very hard lessons it learned from the Asian financial crisis of 1997–1998.
The five chapters selected for this compendium focus on some of the timeliest and most important issues involving the Korean economy.
Papers included in this volume:
- "The Changing Global and Korean Economies" by Taeho Bark
- "An Odyssey of the Korean Financial System and the September 2008 Financial Shock" by Thomas F. Cargill
- "South Korea’s Official Development Assistance Policy Under Lee Myung-bak: Humanitarian or National Interest?" by Eun Mee Kim and Ji Hyun Kim
- "Policy Recommendations for the Korean Economy" by Byongwon Bahk
- "Economic Globalization and Expatriate Labor in Korea" by Gi-Wook Shin and Joon Nak Choi
The United Nations and a World in Transition
United Nations Secretary-General Ban Ki-moon presented a free public talk at Stanford on Thursday, Jan. 17.
Ban, who is the eighth secretary-general of the UN, will speak about the UN's role in creating opportunities out of the challenges posed by today's rapidly transitioning world.
"Times of transition are times of profound opportunity," he recently said during his acceptance speech for the Seoul Peace Prize. "The decisions we make in this period will have an impact for generations to come.”
Ban's initiatives as UN secretary-general have focused on promoting sustainable development; empowering women; supporting countries in crisis or instability; generating new momentum on disarmament, arms control, and nonproliferation; and strengthening the UN. Among his many activities as secretary-general, he has successfully raised major pledges and financing packages for aid and crisis response, established the agency UN Women, and introduced new measures to promote UN transparency and efficiency.
Ban was born in the Republic of Korea in 1944, and he served for 37 years with the ROK Foreign Ministry, in roles including that of minister of foreign affairs and trade, foreign policy adviser to the president, and chief national security adviser to the president. He took office as UN secretary-general in January 2007, and was re-elected for a second term by the UN General Assembly in June 2011. Ban will serve as secretary-general until December 2016.
The Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) and the Freeman Spogli Institute for International Studies are co-sponsoring the event. Ban's talk, part of the Asia-Pacific Leaders Forum, will kick off a series of activities commemorating Shorenstein APARC's thirtieth anniversary.
Founded in 2005, Shorenstein APARC's Asia-Pacific Leaders Forum regularly convenes senior leaders from across Asia and the Pacific to exchange ideas on current political, economic, and social dynamics in the region.
RELATED Resources
Dinkelspiel Auditorium
471 Lagunita Drive
Stanford Campus
The Ninth Korea-U.S. West Coast Strategic Forum
In the ninth session of the Strategic Forum, former senior American and South Korean government officials and leading experts focused on leadership changes on and around the Korean Peninsula and the possible implications for North Korea policy, the U.S.-South Korea alliance, and Northeast Asia. They analyzed North Korean behavior under its new leader Kim Jong-un and the likelihood his regime would continue nuclear and missile development. Participants also compared and contrasted the North Korea and alliance policies of South Korea’s leading candidates in the December 19 presidential election. The session was hosted by the Sejong Institute, a top South Korean think tank, in Seoul, in association with the Korean Studies Program at the Shorenstein Asia-Pacific Research Center.
PARTICIPANTS
Republic of Korea:
Chul Hyun Kwon, Chairman of the Board, The Sejong Foundation
Dae Sung Song, President, The Sejong Institute
Sang Woo Rhee, President, New Asia Research Institite
Jae Chang Kim, Co-Chairman, Council on US-Korea Security Studies
Myung Hwan Yu, Former Minister, Foreign Affairs & Trade Ministry
Yong Ok Park, Governor, PyungAn Nam-do Province (North Korea territory)
Se Hee Yoo, Chairman, Daily NK; Hanyang University
Ho Sup Kim, Professor, Chung-ang University; Chairman, KPSA (2012)
Young Sun Ha, Chairman, East Asia Institute
Jung Hoon Lee, Professor, Yonsei University
Seong Whun Cheon, Chief, North Korea Studies Center, KINU
Chol Ho Chong, Research Fellow, The Sejong Institute
United States:
Gi-Wook Shin, Director, Shorenstein APARC, Stanford University
Michael Armacost, Distinguished Fellow, Shorenstein APARC
Bruce Bennett, Senior Research Fellow, RAND Cooperation
Karl Eikenberry, Distinguished Fellow, Shorenstein APARC
Thomas Fingar, Distinguished Fellow, Shorenstein APARC
David Kang, Director, Korean Studies Institute, University of Southern California
T.J. Pempel, Professor, Political Science Dept., University of California, Berkeley
Daniel C. Sneider, Associate Director for Research, Shorenstein APARC
David Straub, Associate Director, Korean Studies Program, Shorenstein APARC
Joyce Lee, Research Associate, Korean Studies Program, Shorenstein APARC
Seoul, Korea
The Impact of Water Quality on Health and Youth Education in Rural China
Providing people with safe drinking water is one of the most important health-related infrastructure programs in the world. The first part of our research investigates the effect of a major water quality improvement program in rural China on the health of adults and children. Using panel data covering about 4500 households from 1989 to 2006, we estimate the impact of introducing village-level access to water from water plants on various measures of health. The regression results imply that the illness incidence of adults decreased by 11 percent and their weight-for-height increased by 0.835 kg/m, and that children's weight-for-height and height itself both rose by 0.446 kg/m and 0.962 cm respectively, as a result of the program. And these estimates are quite stable across different robustness checks.
While the previous research has shown health benefit of safe drinking water program, we know little about the longer-term benefits such as education. The second part of our research examines the youth education benefits of this major drinking water infrastructure program. By employing a longitudinal dataset with around 12,000 individual observations aged between 16 and 25, we find that this health program has benefited their education substantially: increasing the grades of education completed by 0.9 years and their probabilities of graduating from a lower and upper middle schools by around 18 and 89 percent, respectively. These estimation results are robust to a host of robustness checks, such as controlling for educational policy and local resources (by including county-year fixed effects), village distance to schools, local labor market conditions, educational demand, instrumenting the water treatment dummy with topographic variables, among others. Our estimates suggest that this program is highly cost-effective.
Jing Zhang, an assistant professor, received her PhD from the University of Maryland in 2011, and joined Renmin University of China in the same year. Prior to that, she worked at the World Bank from 2010 to 2011. The focus of her research lies in health economics and public finance. Her publications include: “The Impact of Water Quality on Health: Evidence from the Drinking Water Infrastructure Program in Rural China,” Journal of Health Economics (2012) and “Soft Budget Constraints in China: Evidence from the Guangdong Hospital Industry,” International Journal of Healthcare Finance and Economics (2009).
Philippines Conference Room
China and Africa: Are there Lessons for Development?
The lost decades for China in the 1950s, 1960s and 1970s look remarkably like the lost decades of Africa in the 1980s and 1990s. Poor land rights, weak incentives, incomplete markets and inappropriate investment portfolios. However, China burst out of its stagnation in the 1980s and has enjoyed three decades of remarkable growth. In this talk Rozelle examines the record of the development of China’s food economy and identifies the policies that helped generate the growth and transformation of agriculture. Incentives, markets and strategic investments by the state were key. Equally important, however, is what the state did not do. Policies that worked and those that failed (or those that were ignored) are addressed. Most importantly, Rozelle tries to take an objective, nuanced look at the lessons that might be learned and those that are not relevant for Africa. Many parts of Africa have experienced positive growth during the past decade. Rozelle examines if there are any lessons that might be helpful in turning ten positive years into several more decades of transformation.
Scott Rozelle (main speaker). Scott Rozelle is the Helen F. Farnsworth Senior Fellow and the co-director of the Rural Education Action Program in the Freeman Spogli Institute for International Studies at Stanford University. His research focuses almost exclusively on China and is concerned with: agricultural policy, including the supply, demand, and trade in agricultural projects; the emergence and evolution of markets and other economic institutions in the transition process and their implications for equity and efficiency; and the economics of poverty and inequality, with an emphasis on rural education, health and nutrition.
Alain de Janvry (commentator). Alain de Janvry is an economist working on international economic development, with expertise principally in Latin America, Sub-Saharan Africa, the Middle-East, and the Indian subcontinent. Fields of work include poverty analysis, rural development, quantitative analysis of development policies, impact analysis of social programs, technological innovations in agriculture, and the management of common property resources. He has worked with many international development agencies, including FAO, IFAD, the World Bank, UNDP, ILO, the CGIAR, and the Inter-American Development Bank as well as foundations such as Ford, Rockefeller and Kellogg. His main objective in teaching, research, and work with development agencies is the promotion of human welfare, including understanding the determinants of poverty and analyzing successful approach to improve well-being and promote sustainability in resource use.
Bechtel Conference Center
Scott Rozelle
Encina Hall East, E404
Stanford, CA 94305-6055
Scott Rozelle is the Helen F. Farnsworth Senior Fellow at the Freeman Spogli Institute for International Studies and Stanford Institute for Economic Policy Research at Stanford University. He received his BS from the University of California, Berkeley, and his MS and PhD from Cornell University. Previously, Rozelle was a professor at the University of California, Davis and an assistant professor in Stanford’s Food Research Institute and department of economics. He currently is a member of several organizations, including the American Economics Association, the International Association for Agricultural Economists, and the Association for Asian Studies. Rozelle also serves on the editorial boards of Economic Development and Cultural Change, Agricultural Economics, the Australian Journal of Agricultural and Resource Economics, and the China Economic Review.
His research focuses almost exclusively on China and is concerned with: agricultural policy, including the supply, demand, and trade in agricultural projects; the emergence and evolution of markets and other economic institutions in the transition process and their implications for equity and efficiency; and the economics of poverty and inequality, with an emphasis on rural education, health and nutrition.
Rozelle's papers have been published in top academic journals, including Science, Nature, American Economic Review, and the Journal of Economic Literature. His book, Invisible China: How the Urban-Rural Divide Threatens China’s Rise, was published in 2020 by The University of Chicago Press. He is fluent in Chinese and has established a research program in which he has close working ties with several Chinese collaborators and policymakers. For the past 20 years, Rozelle has been the chair of the International Advisory Board of the Center for Chinese Agricultural Policy; a co-director of the University of California's Agricultural Issues Center; and a member of Stanford's Walter H. Shorenstein Asia-Pacific Research Center and the Center on Food Security and the Environment.
In recognition of his outstanding achievements, Rozelle has received numerous honors and awards, including the Friendship Award in 2008, the highest award given to a non-Chinese by the Premier; and the National Science and Technology Collaboration Award in 2009 for scientific achievement in collaborative research.
Stanford Center on China’s Economy and Institutions
Learn more
James Chen
Walter H. Shorenstein
Asia-Pacific Research Center
Encina Hall, Room E301
616 Serra St.
Stanford, CA 94305-6055
James (Mingjian) Chen is the chairman of Hollyhigh International Capital, the first investment banking firm specializing in mergers and acquisitions (M&As) in Mainland China. He is also an adviser of the Beijing Olympics organization. Chen is a member of the liaison committee in the China National Democratic Construction Association, the chairman of the M&A Elite Club, as well as a member of the Fuping Foundation for poverty alleviation. He also serves as the chief editor of the China M&A Review, and has published Winning the Deal and M&A Revolution.
Chen graduated from Tsinghua University’s Department of Economics and Management in 1993. After graduation, he worked as a trader at China Great Wall Financial Company for several years. He then established Tsinghua Unisplendour and Hollyhigh Investment Company, in 1997 and in 1998 respectively. In addition to his work at Hollyhigh, Chen is actively engaged in M&A projects for international corporations, such as Lafarge, Shell, SK, and Scottish & Newcastle.
Chen’s deal between Teda and the Meilun Group was used as the first M&A case study at Tsinghua University. He has lectured at many renowned institutions, including Harvard University and the Economist Intelligence Unit.
Other issues at the heart of East Asia tensions