Prior to March 11, 2011, many observers had all but written Japan's economy off; after all, it was said, Japan produced only 10 percent of global manufacturing output. Four days later, the world realized that a good portion of that 10 percent sits at a critical upstream spot in the global supply chain, in many products that we not only like (such as the iPad) but also need (e.g., fine chemicals for lithium-ion batteries, silicon wafers, or microcontrollers). In some cases, more than half of global output in critical input materials was located in the Tohoku region. Remarkably, by May 2011, most of the factories not located in the radiation zone had repaired the earthquake damage and resumed operations. 

This presentation explores Japan's role in producing components and materials that are critical in global manufacturing, and then zooms in to analyze the speedy efforts at reconstruction by Japanese business after the Tohoku disaster. It argues that Japan is unlikely to relinquish its leading role in supplying critical components due to this shock, precisely because these "New Japan" companies are competitive, nimble, and fast.

Ulrike Schaede studies Japan’s corporate strategy, business organization, management, financial markets, and regulation. Her book Choose and Focus: Japanese Business Strategies for the 21st Century (Cornell UP, 2008) argues that Japan’s business organization has undergone a strategic inflection so fundamental that our knowledge of Japanese business practices from the 1980s and 1990s is no longer adequate. Her current research looks at “New Japan” companies that have assumed global supply chain leadership in materials and components. She also works on projects regarding corporate restructuring, changing human resource practices, and entrepreneurship in Japan.

Schaede holds an MA from Bonn University, and a PhD from the Philipps-Universtät in Marburg, Germany. She is trilingual and has spent a total of more than eight years of research and study in Japan. She has been a visiting scholar at the research institutes of the Bank of Japan, Japan's Ministry of Finance, and the Ministry of Economy, Trade and Industry, and at the Development Bank of Japan. Before joining the University of California, San Diego in 1994, Schaede held academic positions in Germany (Philipps-Universtät Marburg) and Japan (Hitotsubashi University, Tokyo), and she was a visiting professor at the business schools of UC Berkeley and Harvard.

The fall of Bo Xilai is the most serious political crisis in China since Tiananmen in 1989. The leadership succession process was nearly derailed and a deep rift has opened up at the top of the Communist Party. While many critical details of this power struggle remain unknown, the effects of this incident are certain to be far-reaching. Many key questions have been raised, including: How will the fall of Bo affect the new leadership line-up and its policies? How will the rift affect the party's ability to maintain control over a society showing growing signs of defiance and tensions? What does the incident tell us about the systemic corruption at the core of the party's leadership? Professor Minxin Pei will address these and other issues during this timely seminar.

About the Speaker

Minxin Pei joined Claremont McKenna College in 2009. Prior to that he was a senior associate and the director of the China Program at the Carnegie Endowment for International Peace in Washington, DC.

Pei's research focuses on democratization in developing countries, economic reform and governance in China, and U.S.-China relations. He is the author of From Reform to Revolution: The Demise of Communism in China and the Soviet Union (Harvard University Press, 1994) and China’s Trapped Transition: The Limits of Developmental Autocracy (Harvard University Press, 2006). Pei’s research has been published in Foreign Policy, Foreign Affairs, The National Interest, Modern China, China Quarterly, Journal of Democracy, and many edited books.

He is a frequent commentator for BBC World News, Voice of America, and National Public Radio; his op-eds have appeared in the Financial Times, the New York Times, the Washington Post, Newsweek International, the International Herald Tribune, and other major newspapers.

Pei received his PhD in political science from Harvard University. He was on the faculty at Princeton University from 1992 to 1998, and he has received numerous prestigious fellowships, including the National Fellowship at the Hoover Institution at Stanford University, the McNamara Fellowship at the World Bank, and the Olin Faculty Fellowship of the Olin Foundation.

Raid and warfare were once humankind’s most profitable activities. Conquerors such as Alexander, Julius Caesar, Genghis Khan, Charlemagne, and Napoleon procured goods and resources for their subjects by invading other countries and taking them.
 
World War II marked the end of that paradigm. In its aftermath, warfare ceased to be profitable, as the world had become increasingly circumscribed. Today, the paradigm has shifted from warfare to commerce, or from raid to trade. Countries now compete with one another in the marketplace rather than on the battlefield. It is essential to understand the rise of East Asia under the new paradigm of trade.

Young-jin Choi was appointed by President Lee Myung-bak as the ambassador of the Republic of Korea to the United States in March 2012.

Since joining the Ministry of Foreign Affairs in May 1972, Choi has held numerous positions as a Korean diplomat and United Nations (UN) official. He most recently served as special representative of the UN Secretary-General for Cote D’Ivoire from 2008 to 2011. His certification of the Ivorian presidential elections during his tenure and his leadership as the head of the UN Operation in Côte d’Ivoire are considered to have been instrumental in resolving the post-electoral crisis.

Choi obtained his master’s and doctorate degrees in international relations from the University of Paris I (Pantheon-Sorbonne), and, prior to his graduate studies, studied medicine for four years at Yonsei University. His most recent publications include East and West: Understanding the Rise of China (2010).

In this session of the Shorenstein APARC Corporate Affiliate Visiting Fellows Research Presentations, the following will be presented:

 

Kazuma Fukai, "Current Situation of Shale Gas Revolution and its Impact on the U.S. and Japan"

Shale gas is called a “game changer”. According to the Energy Information Administration, shale gas will be the major source of incremental U.S. natural gas supply, increasing its share of production from 23% in 2010 to 49% in 2035. President Obama expressed even as the U.S. develops next generation energy technologies, the U.S will continue to rely on oil and gas. Due to the shale gas boom, the current price of natural gas (U.S. Henry Hub) is declining, about 1/8 of the peak price in 2005. Given the importance of environmental issues and efficiency, combined with depressed natural gas prices, the demand for natural gas in the power sector will grow rapidly. In Japan, the unprecedented nuclear disaster at the Fukushima Daiichi Nuclear Power Plant affected energy policy dramatically. While the future of nuclear power in Japan is still unclear, natural gas power plants would be one of the most important energy resources to compensate for the loss of nuclear power plants as a realistic and reliable short and middle term approach. If the abundance of natural gas in the U.S. flows to Japan, it would contribute to a choice of supplier and different price formula for Japan. Fukai will present information based on the current state of shale drilling in the U.S., environmental issues, and interviews with many key experts and professors in shale gas as well as his experience at Kansai Electric Power Company.

 

Katsunori Hirano, "Learning from Sustainable Energy Financing Models Operating in the U.S. Market:  A Study for Japan's Clean and Safe Energy Future after Fukushima"

The Fukushima meltdown, which followed a devastating natural disaster in March 2011, presented the Japanese citizenry clear evidence that the way to meet their energy needs had not been sustainable. They have found the value of improving their resilience and security by their own initiative, intelligence, and foresight. The growth in the energy efficiency and renewable energy market is the defining feature of Japan’s energy future.

A substantial number of financing models are being implemented to help encourage investment in energy efficiency improvements and renewable energy deployments in the United States. In his research, Hirano tries to identify the best model operating in the U.S. market to provide financing opportunities for sustainable energy.  The local authorities in Japan can swiftly and flexibly apply this model for local households and businesses in their jurisdiction.

 

Yuji Kamimai, "A New Business Model for the Media Industry"

For a long time, it has been said that media is the mirror of the times we live in.  In his research, Kamimai tries to understand the ascent of and vast changes of media through a historical backdrop to help explain and recognize new service and technological innovation in the Silicon Valley.  Additionally, he examines some trends other than media that could help provide a deeper understanding.  From the rise of media and the latest IT business model, Kamimai learns what is important for the media to do, and explains what the next action steps are.  

 

Masami Miyashita, "A Study about the Ecosystem that Creates and Develops Global Start-ups"

Innovation is critical to economic growth, and entrepreneurship and startups are pivotal ingredients of innovation. After Japan’s economic bubble bursting in 1990, there was much talk about the lack of entrepreneurship in Japan as a driver of creative destruction and economic revival. The “Silicon Valley model” of entrepreneurship was heavily studied. Beginning in the late 1990s, the Japanese government rapidly developed institutional and social frameworks for startups in Japan. In the early 2000s, however, few Japanese startups were global in scale, and the presence in Silicon Valley of Japanese entrepreneurs and startup were still very limited. After the first decade of the 21st century, there are preliminary indications of a new wave of startups by Japanese entrepreneurs making inroads in Silicon Valley. Compared to other groups, such as Chinese or Indians, the number of Japanese entrepreneurs in Silicon Valley still remains miniscule. However, for the Japanese entrepreneurs to take advantage of the Silicon Valley entrepreneurial and innovation opportunities, lessons from the experiences and challenged faced by Japanese based in Silicon Valley are important.  In his research, Miyashita provides some of the key factors that are feeding this new wave of startups.

In this session of the Shorenstein APARC Corporate Affiliate Visiting Fellows Research Presentations, the following will be presented:

 

Kazuma Fukai, "Current Situation of Shale Gas Revolution and its Impact on the U.S. and Japan"

Shale gas is called a “game changer”. According to the Energy Information Administration, shale gas will be the major source of incremental U.S. natural gas supply, increasing its share of production from 23% in 2010 to 49% in 2035. President Obama expressed even as the U.S. develops next generation energy technologies, the U.S will continue to rely on oil and gas. Due to the shale gas boom, the current price of natural gas (U.S. Henry Hub) is declining, about 1/8 of the peak price in 2005. Given the importance of environmental issues and efficiency, combined with depressed natural gas prices, the demand for natural gas in the power sector will grow rapidly. In Japan, the unprecedented nuclear disaster at the Fukushima Daiichi Nuclear Power Plant affected energy policy dramatically. While the future of nuclear power in Japan is still unclear, natural gas power plants would be one of the most important energy resources to compensate for the loss of nuclear power plants as a realistic and reliable short and middle term approach. If the abundance of natural gas in the U.S. flows to Japan, it would contribute to a choice of supplier and different price formula for Japan. Fukai will present information based on the current state of shale drilling in the U.S., environmental issues, and interviews with many key experts and professors in shale gas as well as his experience at Kansai Electric Power Company.

 

Katsunori Hirano, "Learning from Sustainable Energy Financing Models Operating in the U.S. Market:  A Sutdy for Japan's Clean and Safe Energy Future after Fukushima"

The Fukushima meltdown, which followed a devastating natural disaster in March 2011, presented the Japanese citizenry clear evidence that the way to meet their energy needs had not been sustainable. They have found the value of improving their resilience and security by their own initiative, intelligence, and foresight. The growth in the energy efficiency and renewable energy market is the defining feature of Japan’s energy future.

A substantial number of financing models are being implemented to help encourage investment in energy efficiency improvements and renewable energy deployments in the United States. In his research, Hirano tries to identify the best model operating in the U.S. market to provide financing opportunities for sustainable energy.  The local authorities in Japan can swiftly and flexibly apply this model for local households and businesses in their jurisdiction.

 

Yuji Kamimai, "A New Business Model for the Media Industry"

For a long time, it has been said that media is the mirror of the times we live in.  In his research, Kamimai tries to understand the ascent of and vast changes of media through a historical backdrop to help explain and recognize new service and technological innovation in the Silicon Valley.  Additionally, he examines some trends other than media that could help provide a deeper understanding.  From the rise of media and the latest IT business model, Kamimai learns what is important for the media to do, and explains what the next action steps are.

 

Masami Miyashita, "A Study about the Ecosystem that Creates and Develops Global Start-ups"

Innovation is critical to economic growth, and entrepreneurship and startups are pivotal ingredients of innovation. After Japan’s economic bubble bursting in 1990, there was much talk about the lack of entrepreneurship in Japan as a driver of creative destruction and economic revival. The “Silicon Valley model” of entrepreneurship was heavily studied. Beginning in the late 1990s, the Japanese government rapidly developed institutional and social frameworks for startups in Japan. In the early 2000s, however, few Japanese startups were global in scale, and the presence in Silicon Valley of Japanese entrepreneurs and startup were still very limited. After the first decade of the 21st century, there are preliminary indications of a new wave of startups by Japanese entrepreneurs making inroads in Silicon Valley. Compared to other groups, such as Chinese or Indians, the number of Japanese entrepreneurs in Silicon Valley still remains miniscule. However, for the Japanese entrepreneurs to take advantage of the Silicon Valley entrepreneurial and innovation opportunities, lessons from the experiences and challenged faced by Japanese based in Silicon Valley are important.  In his research, Miyashita provides some of the key factors that are feeding this new wave of startups.

Katharina Zellweger will share her insights into North Korea based on her experience as a development and humanitarian aid worker and a resident of Pyongyang. Closely interacting with North Koreans daily, Zellweger lived in Pyongyang for five years as the North Korea country director for the Swiss Agency for Development and Cooperation (SDC). She is a Swiss national with over 30 years of experience in humanitarian work from an Asian base. Her primary engagement has been with China and North Korea.

While heading the SDC program in Pyongyang, Zellweger focused on sustainable agricultural production to address food security issues, income generation to improve people's livelihoods, and capacity development to contribute to individual and institutional learning.

Before joining SDC, Zellweger worked nearly 30 years at the Caritas Internationalis office in Hong Kong, where she pioneered the organization's involvement in China and North Korea. In recognition of her work in North Korea, the Vatican made Zellweger a Dame of St. Gregory the Great in 2006. 

Zellweger holds a master's degree in international administration from the School of International Training in Brattleboro, Vermont, and a Swiss diploma in trade, commerce, and business administration. She also apprenticed with Switzerland’s national agricultural management program.

Zellweger joined the Korean Studies Program as the 2011—12 Pantech Fellow to conduct research on the transformation, especially social and economic change, of North Korea and its society.

More than two decades have passed since the first case of HIV infection was detected in Cambodia in 1991. Cambodia is among the countries with the highest HIV prevalence in Asia and has been experiencing the most serious HIV/AIDS epidemic in the region. The epidemic is spread primarily through heterosexual transmission and revolves largely around the sex trade.

Since the beginning of the epidemic, the Royal Government of Cambodia has made a strong political commitment to the need for prevention of HIV transmission and care for people living with HIV/AIDS. It has received some technical and financial support from national and international agencies. Several prevention and intervention programs have been successfully implemented, and the WHO/UNAIDS recognized that the Cambodia’s HIV/AIDS epidemic appeared to have stabilized in 2002.

The estimated HIV prevalence in the general adult population declined to 0.5% in 2009, down from 1.2% in 2001. Among women visiting antenatal care clinics, the prevalence also declined from 2.1% in 1999 to 1.1% in 2006. There was also a gradual increase in the percentage of HIV-infected pregnant women who received antiretroviral therapy to reduce the risk of mother-to-child transmission, from 1.2% in 2003 to 11.2% in 2007, and finally to 32.3% in 2009.

Despite the decline of HIV prevalence in the general population, the prevalence remains high among high-risk groups such as commercial sex workers, men who have sex with men, and injection drug users. Furthermore, the so-called prevention-successful-country is also seeing the growing need for HIV/AIDS treatment and care.

This seminar will highlight the past and current features of Cambodia’s HIV/AIDS epidemic, lessons learned from prevention and care policies, and future challenges that Cambodia may face in the battles against HIV/AIDS.  

Dr. Siyan Yi joins the Walter H. Shorenstein Asia-Pacific Research Center during the 2011–12 academic year from the National Center of Global Health and Medicine and the University of Tokyo, Japan, where he jointly served as a research fellow and lecturer. He has also served as an adjunct faculty member at Cambodia’s School of Public Health, the National Institute of Public Health, and the School of International Studies at the Royal University of Phnom Penh.