Globalization
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The 2008–2009 financial crisis demands we look anew at the role of corporations, and the working of financial markets around the world. In this challenging and insightful book, one of our most eminent economists provides a compelling new analysis of the corporate firm; the role of shareholders, managers and workers; and institutional governance structures.

In recent decades the firm has predominantly been seen as an organization run and governed in the interests of shareholders, where management acts as the agent of shareholders, and the workers simply as instruments for share-value maximization. This book reverses this viewpoint. It sees corporations as associational cognitive systems where "cognitive actions" are distributed amongst managers and workers, with shareholders supplying "cognitive tools" and monitoring their use in the systems. Aoki analyses the different relationships that can exist between shareholders, managers, and workers from this perspective, and identifies a range of different models of organizational architecture and associated governance structures. He also discusses ways in which corporations act as players in social, political, and organizational games, as well as global economic games; how these inter-related social dynamics may change particular, distinctive national structures into the diversity incorporated in the global corporate landscape; and how they now call for new roles for financial markets.


"Masahiko Aoki uses the social mathematics of game theory to reveal the deep structure of corporate governance systems, in the process explaining the persistence of diversity under conditions of globalization. His profound and highly original analysis speaks directly to the issue of corporate governance reform in the aftermath of the financial crisis of 2008–9."
-Simon Deakin, Professor of Law, University of Cambridge

"The recent wave of fraud, corruption, and fiscal irresponsibility at the highest corporate levels dramatizes the need for a model of the modern corporation that is at the same time deeply economic in the recognition of the centrality of incentives, and deeply sociological in the recognition of the centrality of social norms and a culture of corporate morality. Professor Aoki has combined his magisterial knowledge of business organization with a foundational study of the role of culture in epistemic game theory to produce, for the first time, a truly transdisciplinary model of the corporation."
-Herbert Gintis, Santa Fe Institute

"This is a path breaking book that provides a rigorous analysis of the cognitive underpinnings of corporations. It gives fundamental insights into the diversity of organizational forms that exist and the association of these with the historical, political, social, and technological contexts within which they operate. As with so much of Professor Aoki's work, it will radically alter the way in which we view the corporation."
-Colin Mayer, Peter Moores, Dean, Saïd Business School, University of Oxford

"A pioneering contribution which formalizes in game theoretic language complex institutional structure and environment of the corporation both at a moment of time and over time."
-Douglass C. North, Nobel Laureate in Economics 1993, Spencer; T. Olin Professor in Arts and Sciences, Washington University in St. Louis

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Oxford University Press
Authors
Masahiko Aoki
Number
0199218536

Shorenstein APARC
Stanford University
Encina Hall C304-7
Stanford, CA 94305-6055

(650) 723-9741 (650) 723-6530
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APARC Predoctoral Fellow, 2010-2011
Sookyung_Kim.jpg

Sookyung Kim is the 2010-2011 Takahashi Predoctoral Fellow at Shorenstein APARC. She is a Ph.D. candidate in sociology at Stanford University. Her major research interests focus on the relationship between globalization and nationalism, especially on how immigration impacts national identity of South Korea. She currently is completing a dissertation titled "Renationalizing the Nation: Securing Korean National Identity in the Era of Global Migration." South Korea, a mono-ethnic society maintaining strong nationalism, has recently emerged as a new destination for international migration especially from poorer Asian countries. The influx of foreigners and their growing visibility are challenging the mono-ethnic nature of Korean identity. This study examines how Korean society manipulates immigration issue to serve its competing needs of securing national identity and simultaneously conforming to global norms.

Before entering graduate school, Kim pursued a career in journalism from 2000 to 2004, working as a staff writer in the Dong-A Daily, one of the most widely circulated newspapers in South Korea. She has written articles on social affairs and arts. She also briefly worked as a translator in Newsweek Korean Edition. Kim received her B.A. in linguistics from Seoul National University. She was born in Seoul, South Korea.

This fellowship supports a Stanford University predoctoral student's research within a broad range of topics related to the political economy of contemporary East Asia. Fellows whose main focus is Japan are called Takahashi Fellows, in honor of the Takahashi family, whose generous gift has made this fellowship possible.

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Heather Ahn
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STANFORD, CA—In commemoration of the sixtieth anniversary of the outbreak of the Korean War on June 25, 1950, Stanford University’s Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) is hosting a number of special events.

On May 27, Shorenstein APARC will pre-screen a major new South Korea film, "Into the Fire." Set in the desperate early days of the Korean War, the drama is based on actual events involving South Korean high school students defending the port of Pohang against advancing North Korean regular forces. The film is scheduled for commercial release in South Korea in June.

Immediately following the pre-screening, Shorenstein APARC will host a panel discussion about the film and the Korean War. Panelists will be the director, New York University-trained John H. Lee; actor Kwon Sang-woo; Scott Foundas, Associate Program Director, Film Society of Lincoln Center, and Contributing Editor, Film Comment; Kyung Hyun Kim, Associate Professor, East Asian Languages & Literature, and Film & Media Studies, University of California, Irvine; Chi-hui Yang, Director, San Francisco International Asian American Film Festival; and John R. Stevens, Lt. Col. USMC (ret), Commanding Officer of Able Company, 1st Battalion, 5th Marines, when the 1st Marine Brigade arrived in Pusan on August 2, 1950. Daniel C. Sneider, Associate Director for Research at Shorenstein APARC, will moderate the discussion.

The film pre-screening and panel discussion will both take place in Cubberley Auditorium on campus, beginning at 6:00 P.M. Also, on the evening of the pre-screening, photographs taken in and near Pohang during the time of the events portrayed in the film will be exhibited in the lobby of Cubberley Auditorium, courtesy of the South Korean embassy in Washington, D. C., and the War Memorial of Korea, in Seoul.

On May 28, Shorenstein APARC’s Korean Studies Program will host a lecture by Bruce Cumings, Professor and Chairman of the History Department, University of Chicago, on "The Korean War After 60 Years: History and Memory in Korea and the United States." To attend, registration is required by 5:00 P.M. on May 25.

Shorenstein APARC’s director, Professor Gi-Wook Shin, commented: "The Korean War is often referred to as ‘the forgotten war,' but th at is not the case. As we can see from the rapidly unfolding events on the Korean Peninsula in the wake of the sinking of South Korean naval vessel Cheonan, the Korean War is actually ‘the unending war.'" He said that the pre-screening of "Into the Fire," the panel discussion, and the Korean War lecture are intended to recall the significance of the Korean War and underline the magnitude of current issues on the peninsula.  Noting that Shorenstein APARC has conducted a great deal of research and offered policy recommendations on U.S.-Korean relations, Professor Shin said that the pre-screening of "Into the Fire" was also intended to contribute to increased cultural exchanges between the United States and South Korea. Shorenstein APARC has organized similar events, including the screening of Clint Eastwood’s film "Letter from Iwo Jima," which was also followed by a discussion with the director. Shorenstein APARC also hosts speeches by major figures in U.S.-Korean relations, including last year’s address by former ruling party leader Madam Park Geun-hye.

Shorenstein APARC is a unique Stanford University institution focused on the interdisciplinary study of contemporary Asia. Shorenstein APARC’s mission is to produce and publish outstanding interdisciplinary, Asia-Pacific–focused research; educate students, scholars, and corporate and governmental affiliates; promote constructive interaction to influence U.S. policy toward the Asia-Pacific, and guide Asian nations on key issues of societal transition, development, U.S.-Asia relations, and regional cooperation.  Shorenstein APARC’s research spans the worlds of scholarship, business, and government, and cuts across traditional academic disciplines to provide broad, deep perspective.

The Center supports many ongoing projects, and also launches new studies every year to respond to its primary research goals. All projects are interdisciplinary and collaborative, involving faculty, students, and experts at Stanford, across the United States and around the globe. New projects currently under way consider topics ranging from nationalism in Asia and regionalism in Southeast Asia to the rise of high technology in Greater China, outsourcing to Southeast Asia, and globalization in Korea.

The Stanford Korea Program was formally established in 2001 at the Asia-Pacific Research Center (APARC) with the appointment of Professor Gi-Wook Shin, as the founding director. The Stanford KSP offers courses on Korea, hosts seminars related to the study of Korea, sponsors workshops and conferences, conducts research projects, supports fellowships, and collaborates with a broad range of visiting scholars. Stanford KSP also works closely with Stanford's Center for East Asian Studies (CEAS), which offers a Master's Degree in East Asian Studies with a specialty in Korea.

Stanford KSP's many activities include the "New Beginnings" policy research study group on U.S.-Korean relations, which since 2008 has made annual recommendations to the United States government on strengthening bilateral ties. Stanford KSP has an active program of visiting senior Korean officials and scholars. In recent years, visitors have included Hyong O Kim, speaker of the National Assembly; Sei Hoon Won, head of the National Intelligence Service; Won Soon Park, Executive Director, The Hope Institute; Seoul National University Professor Se-Il Park; Seoul National University Professor (and former foreign minister) Young-Kwan Yoon; Jong Seok Lee, Senior Fellow, Sejong Institute (and former unification minister); and General (ret.) Byung Kwan Kim, former Deputy Commander, ROK-U.S. Combined Forces Command. Visiting scholars currently include Byongwon Bahk, a former vice minister of finance and former senior secretary to the President for economic affairs.

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This audacious and illuminating memoir by Richard Baum, a senior China scholar and sometime policy advisor, reflects on forty years of learning about and interacting with the People's Republic of China, from the height of Maoism during the author's UC Berkeley student days in the volatile 1960s through globalization. Anecdotes from Baum's professional life illustrate the alternately peculiar, frustrating, fascinating, and risky activity of China watching - the process by which outsiders gather and decipher official and unofficial information to figure out what's really going on behind China's veil of political secrecy and propaganda. Baum writes entertainingly, telling his narrative with witty stories about people, places, and eras.

Richard Baum is distinguished professor of political science at UCLA and director emeritus of the UCLA Center for Chinese Studies. He is the author of Burying Mao: Chinese Politics in the Age of Deng Xiaoping (Princeton U. Press) and the founder and list manager of Chinapol, an
electronic forum serving the international China-watching community. His 48-lecture video course, "The Fall and Rise of China," produced for The Teaching Company's Great Courses series, was released last month.

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Richard Baum Distinguished Professor of Politics Speaker University California, Los Angeles
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Korean Studies Program at the Shorenstein Asia-Pacific Research Center hosted an international workshop on South Korean economic affairs on March 18-19 sponsored by Koret Foundation. Leading scholars and former senior officials from Korea and the United States convened to discuss key aspects of economic globalization and Korea's role, from policies and politics to the economic prospects of a unified Korean. As part of the workshop, Ambassador Duk-soo Han gave his talk on "Economic Globalization and U.S.-Korea Relations" for a larger audience from the community and the Bay area on March 18.
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From left, Gi-Wook Shin, Oh-Seok Hyun, Michael H. Armacost, Byongwon Bahk
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About the talk:
Cleantech/Greentech investing has helped the venture capital (VC industry to contract further during the financial crisis. Over the last few years, it has become a significant part of VC investments around the world. In addition, solutions for large local or even global problems ranging from power generation to power efficiency, as well as water and air pollution, new materials, transportation, waste management, etc. are taking center stage even at every government level in most countries around the world. The seminar will focus on the following areas:

  1. Global cleantech/energy investments by asset class
  2. International VC benchmarks of cleantech investments
  3. Deals IRRs & funds IRRs in the United States/Europe   

Dr. Haemmig was part of a World Economic Forum team that produced a report on "Green Investing 2010," downloadable below.

About the speaker:
Dr. Martin Haemmig's venture capital research covers 13 countries in Asia, Europe, Israel, and USA. He lectures and/or performs research at numerous universities across the U.S., Europe, China and India. He has authored books on the globalization of venture capital. He is Senior Advisor on Venture Capital at SPRIE and advises on venture capital for China's Zhongguancun Science Park. Martin Haemmig earned his electronics degree in Switzerland and his MBA and doctorate in California, and worked for almost 20 years in global high-tech companies in Asia, Europe and the U.S. before returning to his academic career. He became Swiss national champion in marketing in 1994.

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Martin Haemmig Speaker
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Korean Studies Program at the Shorenstein Asia-Pacific Research Center is hosting an international workshop on South Korean economic affairs on March 18-19 sponsored by Koret Foundation.  Leading scholars and former senior officials from Korea and the United States will explore key aspects of economic globalization and Korea's role, from policies and politics to the economic prospects of a unified Korean. This lecture is offered as a public event on the first day of the workshop for a larger audience from the community and the Bay area.

Ambassador Han was appointed by President Lee, Myung-bak as the new Ambassador Extraordinary and Plenipotentiary to the United States of the America on January 18, 2009. He presented his Letter of Credence to President Barack Obama on May 20, 2009.

Before the appointment, Ambassador Han served as the 38th Prime Minister of the Republic of Korea after his nomination was approved by the National Assembly on April 2, 2007, and he worked in that capacity until February 2008.

Prior to serving as Prime Minister, Ambassador Han held numerous high-ranking positions in the Korean government. In 2006, he was named Chairman of the Presidential Committee on Facilitating KORUS FTA following his service as Deputy Prime Minister and Minister of Finance and Economy. Before being named Minister of Government Policy Coordination in early 2004, he worked as President of the Korea Institute for Industrial Economics and Trade.

As Korea’s Permanent Representative to the Organisation for Economic Co-operation and Development, Ambassador Han went to Paris in 2001 before returning to Seoul later that year to serve at the Blue House, first as Senior Secretary to the President for Policy and Planning and later as Senior Secretary to the President for Economic Affairs. 

Ambassador Han was the Minister for Trade at the Ministry of Foreign Affairs and Trade from 1998 to 2001. Previously, he was Assistant Minister for International Trade and Vice Minister at the Ministry of Trade, Industry and Energy. From 1993 to 1994, he served as Secretary to the President for Economic Affairs.

During his distinguished career in government, Ambassador Han has made many contributions to the development and modernization of the Korean economy.  Deregulation, market opening and strengthening of the market economy have been the three pillars of his philosophy and framework for the economic policy of Korea.

Ambassador Han earned a B.A. in economics from Seoul National University, and an M.A. and Ph.D. in economics from Harvard University.  He has been awarded two Order of Public Service and Merit Medals.

This event is supported by a generous grant from the Koret Foundation.

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Duk-Soo Han Korean Ambassador to the United States Keynote Speaker
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At the 4th Social Science Workshop held at Yonsei University in Seoul, Gi-Wook Shin, director of Asia-Pacific Research Center, discussed how the politics of ethnic nationalism have played out in various contexts including anti-colonialism, civil war, authoritarian politics, democratization, territorial division, and, now, globalization. The video of his presentation is available (in Korean).
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