Globalization
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Daishiro Nomiya
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In activist communities worldwide, globalization has had an enormous impact, both in the composition of activist groups and the content of their messages. At the same time, regional concerns are playing a significant role in the ways protests are organized, managed, and deployed.

Regardless of their location or their target, it is clear that protest campaigns have, on the one hand, become increasingly globalized. The protests that took place during the July 2008 G8 Toyako Summit in Japan offer a case in point. Approximately one hundred transnational activists flew into Sapporo, a city located near the summit site, and joined various civil and protest activities. Over a loudspeaker, they broadcast statements denouncing the summit meeting as “antidemocratic” and “discriminatory against the poor.” These activists were drawn from East, Southeast, and Central Asia, as well as Europe and North America, and they voiced correspondingly global concerns—for human rights, global peace, and democracy, and against inequality and poverty. These themes echoed those of other major global protests, including demonstrations that took place against the International Monetary Fund and the World Trade Organization, the latter most notably in 1999 in Seattle. Indeed, protests of this kind represent what might be called an antiglobalization movement

On the other hand, global movements of this kind also appear to be organized on an increasingly regional basis. Though the activists who protested the Toyako Summit came from all over the world, and addressed topics of global importance, most of the participants came mainly from South Korea, Hong Kong, and Taiwan. Given this apparent dichotomy, the question arises: Will global social movements become regional?

One could argue that global social movements are and will remain regional, at least for the time being, for two practical reasons. First, the costs associated with flight to activist hubs near protest sites can be expensive. Second, the amount of time spent in transition to the protest site becomes a burden. The time doubles when taking into consideration the time spent to return to the originating country. These factors can be prohibitive especially to those based far away, but are less burdensome to regional activists, thus making it easier for nearby protesters to participate.

While time and cost are no doubt a concern, they may not be as important when compared with the other factors. Language is among these factors. Cooperative activities beyond the national borders are on the rise, yet many foreign activists do not speak the languages spoken in the countries where they protest. They invariably rely on English, widely accepted as the “global” language. Yet the levels of English fluency differ among participating activists, and this is a key factor. With their English ability, activists from Europe and North America tend to communicate with others on an individual basis, while those from nearby countries often rely on interpreters, especially when discussions delve into the details of the planned activity and necessary arrangements associated with it. Typically, interpreters are group leaders, well educated and knowledgeable about regional and global issues—and these individuals facilitate most intergroup communication.

Preestablished ties and preexisting communication can influence negotiation and cooperation processes among activists. Global social movements tend to enhance crossnational cooperation among participating activists—that is, activists who come together from different countries often regroup elsewhere, building on their previous cooperative activities. In the case of the 2008 G8 summit protests, regionalization was very much at work. Several months prior to the summit, Japanese media activists planned a temporary umbrella organization called the G8 Media Network, which helped to accommodate incoming foreign media activists and arranged international cooperative activities during the summit. As it happened, the foreign activists and groups that interacted with the G8 Media Network were actually regional, originating mainly from South Korea and Hong Kong. Under the auspices of the G8 Media Network, these groups of activists arrived prior to the summit and stayed until it concluded. Afterward, the same media groups discussed the continuation of crossnational cooperation. Though technically foreign, the dominant actors and groups who sought to continue cooperative activities were, in fact, only from neighboring countries.

Looking more closely at participants in the global protest activities provides further insight into contemporary global protest movements. At the 2008 G8 Summit protests, two different types of foreign participants were on display—those who had prior ties to host activist groups in Japan, and those who did not. The former group could be described as professional activists, whose preestablished ties ensure that they have good knowledge of a given protest’s scheduled activities. The professional group also organizes its own plans of action, precoordinated with domestic groups. The latter group tends to be traveling activists, a more or less independent and unorganized collection of individuals who enjoy traveling the globe and joining the activities offered at protest sites worldwide. The professional activist group is often drawn largely from neighboring countries in the region.

Most global social movements feature participants from around the world. At the same time, signs of regionalization also exist, making most protests both global and regional in nature. One could claim that the future of global social movements is regional. But whether global or regional, it is vital that we continue to study the composition of global protest movements and their abiding impact on civil society.

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IT firms in Silicon Valley access talent globally, recruiting from colleges abroad and recruiting firms, and personnel transfers from overseas affiliates. Another strategy is to open offshore operations--though this restricts access to a few locations, in countries with large labor pools this may spur innovation, while providing access to domestic markets.

The conference, the fourth in the annual Globalization of Services series, will explore SV firms' assessment of foreign education and experience, the career paths of foreign engineers, and the impact on firms' capacity for scale and innovation. The intent is to understand whether selecting from a global labor force enables US employers to select just the "best" worker or is motivated by other considerations. The conference is limited to 40 persons, including panelists.

Presentations may be downloaded below.

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final Agenda

8:00Continental Breakfast
9:00Welcome and Introductions
Michael Teitelbaum, Sloan Foundation; Philip Martin, University of California, Davis
9:15-10:30Why hire engineers from overseas: findings from a quality study on Indian and Chinese engineers
Martin Carnoy and Rafiq Dossani, Stanford University
Discussant: TBA
 
10:45-12:30The experience of large IT firms
Bill Pearson, Intel; Otto Schmid, NVidia; E.Subramanian, Tata Consultancy Services; Raja Raj, Wipro
Discussant: Petri Rouvinen, ETLA, Finland
1:00-2:30Lunch at Google, Mountain View, hosted by Raj Shah
Presentation, panel discussion and campus tour
 
3:00-4:15The experience of startups and small IT firms
Robert Lee, Achievo; Praveen Singh, Arada; Ashish Dixit, Tensilica
Discussant: TBA
4:30-5:30Recruiting engineers from Asia
Anu Parthasarathy, Global Executive Talent; Badri Gopalan, Synopsys; Yatin Trivedi, Synopsys
Discussant: Manuel Serapio, University of Colorado, Denver

 

Parking Information:

The conference is being held in the Bechtel Conference Center in Encina Hall, located at 616 Serra Street on the Stanford University campus.

Attendees should parking in visitor parking. Parking on campus, particularly near Encina Hall, is extremely limited due to recent construction. Attendees should give themselves plenty of time to find a parking spot.

Visitor parking is either at meters with coins or at the "pay and display" machines. Please note that if you park at a meter that take coins you will need $12 in quarters for a full day.

Here are the locations of visitor parking, in order of increasing distance from Encina Hall. Please refer to the visitor parking map for info:

  1. Directly in front of Encina Hall (coins only)
     
  2. Directly across the street from Encina Hall (coins only)
     
  3. On Memorial Way just off Galvez, south of the Alumni Center (machines)
     
  4. At the Track House lot, Galvez and Campus Drive East
     
  5. In Parking Structure 6, on the southeast corner of campus around Campus Drive East and Wilbur Lane. This is your best bet for a spot but is 5-10 minutes from Encina Hall.

 

This conference is the 4th annual "Globalization of Services" conference, generously supported by the Sloan Foundation.

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This study proposes a theoretical framework to understand how nations deal with collective memories of perpetration of severe human rights violations, which do not fit comfortably in any national master narrative but have become increasingly difficult to ignore. Building on studies of collective memory, the framework explicates how initial historical conditions of the nation, domestic social movements, and the degree of international pressures move the national discourse along two key dimensions – (a) acceptance of guilt and (b) international orientation of the discourse – which map out seven possible responses to collective trauma of perpetration. Through examination of the history of post-war Japan and content analyses of newspaper editorials and prime ministers’ speeches from 1945 to 2004, the empirical analysis applies the framework to the Japanese case and reveals

  1. that arguments for apologies to Asian victims have gained ground due to the intensification of domestic social movements, international pressures from neighboring countries, and global human rights influence; and
  2. that arguments that evade the ugly past have persisted because of the initial conditions immediately after 1945, overwhelming emphasis on Japanese victims in the first few decades, and recent appropriation of human rights language by proponents of the defensive arguments.

Kiyoteru Tsutsui is Assistant Professor of Sociology, University of Michigan. His research interests lie in political/comparative sociology, social movements, globalization, human rights, and Japanese society. He has conducted cross-national statistical analyses on how human rights ideas and instruments have expanded globally and impacted local politics and qualitative case studies of the impact of global human rights on Japanese politics. His current projects examine (a) the evolution of transnational social movement organizations, (b) global expansion of corporate social responsibility, (c) changing conceptions of nationhood and minority rights in national constitutions, (d) dynamics of political identities in contemporary Europe, (e) global human rights and three ethnic minority social movements in Japan, and (f) changing discourse around the Asia-Pacific War in Japan.

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Kiyoteru Tsutsui Assistant Professor of Sociology Speaker University of Michigan
Seminars

Freeman Spogli Institute for International Studies
Stanford University
Encina Hall, C-327
Stanford, CA 94305-6055

(650) 723-9149 (650) 723-6530
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Shorenstein APARC Fellow
Affiliated Scholar at the Stanford Center on China's Economy and Institutions
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Thomas Fingar is a Shorenstein APARC Fellow in the Freeman Spogli Institute for International Studies at Stanford University. He was the inaugural Oksenberg-Rohlen Distinguished Fellow from 2010 through 2015 and the Payne Distinguished Lecturer at Stanford in 2009.

From 2005 through 2008, he served as the first deputy director of national intelligence for analysis and, concurrently, as chairman of the National Intelligence Council. Fingar served previously as assistant secretary of the State Department’s Bureau of Intelligence and Research (2000-01 and 2004-05), principal deputy assistant secretary (2001-03), deputy assistant secretary for analysis (1994-2000), director of the Office of Analysis for East Asia and the Pacific (1989-94), and chief of the China Division (1986-89). Between 1975 and 1986 he held a number of positions at Stanford University, including senior research associate in the Center for International Security and Arms Control.

Fingar is a graduate of Cornell University (A.B. in Government and History, 1968), and Stanford University (M.A., 1969 and Ph.D., 1977 both in political science). His most recent books are From Mandate to Blueprint: Lessons from Intelligence Reform (Stanford University Press, 2021), Reducing Uncertainty: Intelligence Analysis and National Security (Stanford University Press, 2011), The New Great Game: China and South and Central Asia in the Era of Reform, editor (Stanford University Press, 2016), Uneasy Partnerships: China and Japan, the Koreas, and Russia in the Era of Reform (Stanford, 2017), and Fateful Decisions: Choices that will Shape China’s Future, co-edited with Jean Oi (Stanford, 2020). His most recent article is, "The Role of Intelligence in Countering Illicit Nuclear-Related Procurement,” in Matthew Bunn, Martin B. Malin, William C. Potter, and Leonard S Spector, eds., Preventing Black Market Trade in Nuclear Technology (Cambridge, 2018)."

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Christian von Luebke
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At first sight, political turmoil in Thailand and the Philippines—repeated violent protests, impeachment battles, and military coups—gives the impression that democracy in Southeast Asia is on a downward spiral. One country in the region, however, has sustained a stable pluralistic democracy: the Republic of Indonesia.

In 1999, after thirty years of Suharto’s centralistic, authoritarian rule, Indonesia embraced far-reaching decentralization and election reforms. Within a brief period of two years, the Indonesian government reshaped its administrative architecture, including the devolution of local tax and service responsibilities to more than 400 district governments. In view of its deep-seated authoritarian traditions, beginning with Javanese kingdoms and sultanates, moving through Dutch colonialism (1619–1942), and ending with Suharto’s New Order (1965–98), Indonesia’s rapid shift toward democratic decentralization stands out as one of the most remarkable political transitions in recent history.

Particularly notable is the peaceful and competitive conduct of Indonesian elections. Over the last decade, local citizens have elected more than 30,000 local councilors and over 400 mayors, regents, and governors, with little violence or intimidation. High voter turnouts (around 70 percent) and high replacement rates of incumbent executives (roughly 40 percent) bear witness to rising electoral competition in local polities. While subnational elections display considerable flux, the upcoming presidential elections in July 2009 suggest continuity. The latest national polls, for example, predict a comfortable lead for President Susilo Bambang Yudhoyono (49 percent) over his main competitor, Megawati Soekarnoputri (36 percent).

The institutionalization of democracy and decentralization, however, has yet to translate into substantive public sector reforms. Indonesia continues to score low in global governance assessments. According to Transparency International and the World Bank, Indonesia’s government ranks 126th (out of 180) in terms of corruption, and 129th (out of 181) in terms of administrative efficiency for business start-ups. With the introduction of regional autonomy, these governance problems have, to a considerable extent, been decentralized to hundreds of districts. Yet, despite formally uniform institutional settings, local governments exhibit vast differences in regulatory quality, administrative efficiency, and anticorruption measures.

What motivates some local governments to perform better than others? Implicit in this question, which stands at the center of my research, is the idea that local democracy is not only an end in itself, but also a means for improving government outcomes. The pronounced policy differences that arise in Indonesia’s district polities provide a good opportunity to examine the workings of Indonesian local democracy or, to use a different terminology, the political economy of local decision-making.

The findings from controlled case comparisons and subnational datasets suggest that policy variations are best explained by differences in government leadership. Good policy environments emerge primarily in cases where local regents and mayors, whose career aspirations are tested by direct elections, skillfully use their office powers to forge reform coalitions and supervise bureaucratic practices. Societal reform pressures that arise from local parliaments, business chambers, and nongovernmental organizations, in comparison, tend to be less significant drivers of good governance. While broad-based interest groups continue to struggle with collective-action problems, district council members seem more concerned with provincial/national party elites (and their party list positions) than with representing local constituencies. Thus, in Indonesia’s early stage of democratic transition, where societal pressures are yet to fully unfold, much seems to depend on leadership efforts to initiate, facilitate, and oversee government improvements.

Under what conditions, then, are local leaders likely to act in the public interest, rather for private gain? While direct elections provide basic incentives, the direction and strength of these incentives also hinge upon existing socioeconomic structures. Government leaders need to accommodate interests of powerful economic groups in order to secure support for campaign funding and co-investments in public goods. Whether these interest alignments result in unproductive rent-seeking and corruption, or in constructive government reforms, depends on the constellation and transparency of economic powers.  The more economic powers become concentrated in specific sectors, groups, and firms, and the less public-private interactions are monitored by local media, the greater the likelihood that leaders will pursue self-preferential and collusive strategies.

As a result, it is plausible to assume that a moderate economic concentration and strong media presence are conducive to better governance. At this point, only some districts fall into this category. But as globalization and communication technologies progress, local polities are bound to become more economically diverse and politically informed. With growing political awareness and increased incentives for better leadership, it is likely that Indonesia, over time, will see more public-private symbioses for reform and, thus, bridge the gap between well-functioning elections on the one hand and poor governance
on the other.

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Asia’s economies have been hard hit by the current global financial crisis, despite in most cases enjoying strong macroeconomic fundamentals and stable financial systems.  Early hopes were that the region might be “decoupled” from the Western world’s financial woes and even able to lend the West a hand through high growth and the investment of large foreign exchange reserves.  But that optimism has been dashed by slumping exports, plunging commodity prices, and capital outflows.  The region’s most open, advanced and globally-integrated economies—Hong Kong, Singapore, and Taiwan—are already in severe recession, with Japan, Korea and Malaysia not far behind, and dramatic slowdowns are underway in China, India, Indonesia, Thailand and Vietnam.  What role did Asian countries play in the genesis of the global crisis, and why have they been so severely impacted?  How is their recovery likely to be shaped by market developments and institutional changes in the West, and in Asia itself in response to the crisis?  Will the region’s embrace of accelerated globalization and marketization following the 1997-98 Asian financial crisis now be retarded or reversed?

Linda Lim is a leading authority on Asian economies, Asian business, and the impacts of the current global financial crisis on Asia, and she has published widely on these topics. Her current research is on the ASEAN countries’ growing economic linkages with China.

Forthcoming in 2009 are Globalizing State, Disappearing Nation: The Impact of Foreign Participation in the Singapore Economy (with Lee Soo Ann) and Rethinking Singapore’s Economic Growth Model. She serves on the executive committees of the Center for Chinese Studies and the Center for International Business Education at the University of Michigan, where formerly she headed the Center for Southeast Asian Studies. Before coming to Michigan, she taught economic development and political economy at Swarthmore. A native of Singapore, she obtained her degrees in economics from Cambridge (BA), Yale (MA), and Michigan (PhD).

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Linda Yuen-Ching Lim Professor of Strategy, Stephen M. Ross School of Business Speaker University of Michigan
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The U.S. financial crisis has spread around the globe. Financial globalization means that most countries and regions are not immune to the contagious effects of a financial crisis that originates in one country.

East Asian countries had already experienced the contagious effects of a financial crisis in 1997. That year, a financial crisis that broke out in Thailand and Indonesia reached Malaysia and then South Korea. Each of these countries reacted differently to the crisis. South Korea, Indonesia, and Thailand accepted International Monetary Fund (IMF) conditionalities that required neoliberal economic restructuring in return for emergency loans, while Malaysia rejected the IMF offer and instead encouraged the inflow of speculative financial capital, while reforming the banking and financial system. In the aftermath of the East Asian financial crisis, regional economic, financial and security cooperation were discussed among East Asian countries. These efforts resulted in the Chiang Mai Initiative, the Bond Initiative, the East Asian Summit, the Shanghai Cooperation Organization, and the Six Party Talks.

Thus, regionalism in East Asia was revived in response to external shocks, such as global financial volatility, endogenous opportunities such as East Asian market compatibility (Pempel, 2008), endogenous security threats such as the North Korean nuclear development, and exogenous opportunities such as "bringing in the U.S." (Pempel, 2008).

Nonetheless, East Asian regionalism is still at a low level of institutionalization compared to Europe. East Asian regionalism is still basically "bottom-up, corporate (market)-driven regionalism" (Pempel, 2005). 

I will discuss the obstacles and the opportunities that Northeast Asian countries are facing since the end of the Cold War and the advent of globalization.

Hyug Baeg Im is Professor at the Department of Political Science and International Relations, Korea University, Seoul, South Korea. He is Dean at the Graduate School of Policy Studies and Director at Institute for Peace Studies. He received B.A. in political science from Seoul National University, M.A. and Ph.D. in political science from the University of Chicago. He was visiting professor at Georgetown University (1995-1996), Duke University (1997), Stanford University (2002-2003) and visiting fellow at International Forum for Democratic Studies, National Endowment for Democracy, Washington DC (1995-1996). He served as a presidential adviser of both Kim Dae Jung and Roh Moo Hyun presidency. His current research focuses on the impact of IT revolution and globalization on Korean democracy. His publications include “The Rise of Bureaucratic Authoritarianism in South Korea,” World Politics, Vol. 34, No. 2 (1987), “South Korean Democratic Consolidation in Comparative Perspective” in Consolidating Democracy in South Korea (Lynne Rienner, 2000) and “’Crony Capitalism’ in South Korea, Thailand, and Taiwan: Myth and Reality,” (co-authored with Kim, Byung Kook) Journal of East Asian Studies, Vol. 1, No. 1 (2001), “Faltering Democratic Consolidation in South Korea: Democracy at the End of Three Kims Era” Democratization, Vol. 11, No. 5(2004), “Christian Churches and Democratization in South Korea” in Tun-jen Cheng and Deborah A. Brown (eds.), Religious Organizations and Democratization: Comparative Case Studies in Contemporary Asia (M.E. Sharpe, 2006) and “The US Role in Korean Democracy and Security since Cold War Era,” International Relations of the Asia Pacific, Vol. 6, No.2 (2006).

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HYUG BAEG IM Department of Political Science and International Relations Speaker Korea University
Seminars
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Patterns of technology development are changing. While once it was mainly large firms and multinational corporations that thrived globally, now many start-up firms here are engaged in technology development outside the United States. Some of these changing globalization patterns include offshore outsourcing of R&D, cross-border collaborations between researchers or technology providers, as well as contextual pressures like new government policies.

This panel, comprised both of American entrepreneurs operating in Japan and China and scholars of entrepreneurship here and in Japan, will discuss this growth of globalization in patterns of technology development and how entrepreneurs have figured in the process.

This event is presented in conjunction with the US-Asia Technology Management Center (US-ATMC) and features Shigeo Kagami, Professor, University of Tokyo; Michael Alfant, CEO, Fusion Systems KK; Robert Eberhart, SPRIE Researcher, Stanford University, and moderated by Richard Dasher, Director, US-ATMC & Consulting Professor, Shorenstein Asia-Pacific Research Center.

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Shigeo Kagami Professor Speaker University of Tokyo
Robert Eberhart Speaker
Michael Alfant CEO Speaker Fusion Systems KK

U.S.-Asia Technology Management Center
School of Engineering
Stanford, CA

(650) 724-0096 (650) 725-9974
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Consulting Professor
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At Stanford University, Dr. Dasher has directed the US-Asia Technology Management Center since 1994, and he has been Executive Director of the Center for Integrated Systems since 1998. He holds Consulting Professor appointments at Stanford in the Departments of Electrical Engineering (technology management), Asian Languages and Cultures (Japanese business), and at the Asia-Pacific Research Center for his work with the Stanford Program on Regions of Innovation and Entrepreneurship. He is also faculty adviser to student-run organizations such as the Asia-Pacific Student Entrepreneurship Society and the Forum for American/Chinese Exchange at Stanford.

From 2004, Dr. Dasher became the first non-Japanese person ever asked to join the governance of a Japanese national university, serving a term as a Board Director (理事) of Tohoku University . He continued as a member of the Management Council (経営協議会) until March 2010, and he now serves as Senior Advisor to the President (総長顧問) of Tohoku University. Dr. Dasher has been a member of the high-profile Program Committee of the World Premier International Research Center Initiative (WPI) of the Japanese Ministry of Education (MEXT) since 2007. He has served on the Multidisciplinary Assessment Committee of the C$500 million Canada Foundation for Innovation Leading Edge Fund in 2007 and again in 2010, and as a member of the Phase I and Phase II Review Panels of the C$200 million Canada Excellence Research Chairs Program in 2008 and again in 2010. He was a distinguished reviewer of the Hong Kong S.A.R. study on innovation in 2008–09, and since 2007 he has been a member of the Foresight Panel of the German Ministry of Education and Research. From 2001–03, Dr. Dasher was on the International Planning Committee advising the Japanese Minister of State for Science and Technology Policy in regard to the formation of the Okinawa Institute of Science and Technology.

As allowed by Stanford policy, Dr. Dasher maintains an active management consulting practice, through which he is an advisor to start-up companies and large firms in the U.S., Japan, and China. He has been a board director of Tokyo-based ZyCube Inc. since 2006, and he is founder and chairman of Pearl Executive Shuttle in Valdosta, Georgia, U.S.A. In the non-profit sector, he is a Board Director of the Japan Society of Northern California and the Keizai Society U.S. – Japan Business Forum, and he is an advisor to organizations such as the Chinese Information and Networking Association, the Silicon Valley – China Wireless Technology Association, and the International Foundation for Entrepreneurship in Science and Technology (iFEST). In 2010 he served as a consultant to The Indus Entrepreneurs (TiE) in regard to their establishment of a worldwide remote mentoring program for entrepreneurs. Dr. Dasher frequently gives speeches and seminars throughout Japan and Asia, as well as in the U.S. Recent appearances include the Nikkei Shimbun Business Innovation Forum, the Foreign Correspondents Club of Japan, speaking tours of Japan co-sponsored by METI and the U.S. Embassy in Tokyo, and guest lectures at Chubu University, Kochi University of Technology, Ritsumeikan Asia Pacific University, and the University of Tokyo.

From 1990–93, Dr. Dasher was a board director of two privately-held Japanese companies in Tokyo, at which he developed new business in international licensing of media rights packages and other intellectual properties. From 1986–90, he was Director of the U.S. State Department’s Foreign Service Institute advanced field schools in Japan and Korea, which provide full-time language and area training to U.S. and select Commonwealth country diplomats assigned to those countries. He received M.A. and Ph.D. degrees in Linguistics from Stanford University and, along with Prof. Elizabeth Closs Traugott, he is co-author of the often-cited book Regularity in Semantic Change (Cambridge University Press, 2002). He received the Bachelor of Music degree in clarinet and orchestra conducting from the San Francisco Conservatory of Music, where he served on the faculty from 1978-85.

Richard Dasher Moderator
Seminars

Shorenstein APARC
Stanford University
Encina Hall,Room E301
Stanford, CA 94305-6055

(650) 724-5668 (650) 723-6530
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Visiting Scholar, 2008-09
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Park, Se-Il is a professor of law and economics in the Graduate School of International Studies at Seoul National University. He is the founder and chairman of the board of Hansun Foundation for Freedom and Happiness, which is an independent, non-partisan think tank based in Seoul devoted to high-quality public policy research. The Foundation works to provide innovative and practical policy recommendations to the South Korean government.

Dr. Park is the author of many books including Communitarian Liberalism (2008); National Strategy for Sunjinwha in Korea (National strategy to make Korea to become a world class nation)(2006); Blueprint for Tertiary Education Reform in Korea (2003); Strategy for Presidential Success: Authority, Role, and Responsibility (2002); Growth, Productivity, and Vision for Korean Economy (2001); Reforming Labor Management Relations: lessons from the Korean experience: 1996-1997 (2000); Law and Economics
(2000).

Park is currently writing a book on globalization in which he plans to research several important political, social, and economic challenges, stemming from globalization. Based on that research he hopes to make comprehensive strategic recommendations for Korea to become a successful advanced nation in the age of globalization. The tentative title is Creative Globalization: Korean strategy for globalization.

Park has taught for more than 20 years at Seoul National University, College of Law and Graduate School of International Studies. He served as Senior Secretary to the president for policy planning and social welfare in the Office of the President of the Republic of Korea
from 1995 to 1998, and was a member of National Assembly of the Republic of Korea from 2004 to 2005. He also worked at the Korea Development Institute as a Senior Fellow from 1980 to 1985. He received the Chung-Nam Award from the Korean Economic Association in 1987 for his outstanding publications in economics. He served as President of the Korean Labor Economic Association (2001-2002), President of the Korean Law and Economic Association (2000-2003), and President of the Korean Institutional Economic Association (2002-2003). Park received his BA from Seoul National University and his MS and PhD from Cornell University.

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For the past ten years, Japan has undergone aggressive, government-driven reforms aimed at changing its financial systems, labor markets, and corporate governance institutions. Faced with the challenges of globalization and an ageing population, Japan undertook these reforms to regain its former competitiveness. What remains uncertain, however, is whether these reforms will also be effective in creating an environment
that is more favorable to entrepreneurship and innovation. If the reforms are effective, at what pace, and in what shape will new firms emerge? Will Japan’s system mirror the institutions that have evolved in regions such as Silicon Valley, or will it develop into a new framework of innovation?

The persistent decline in Japanese asset values during the 1990s engendered many policy and legal responses. Among these was a series of business policy and associated legal reforms intended to foster the creation of new companies, new industries, and new financial institutions. Starting in 1997, these reforms included changes in how firms are formed. For example, the capital required to start a stock-issuing firm was reduced from ten million yen to a mere one yen. The yugen kaisha—a secondary form of Japanese company—was also abolished and the limited liability partnership created instead. Holding companies were allowed, mergers were deregulated, treasury shares were authorized, and the liability of company directors was limited.

Additional reforms were promulgated to encourage new forms of financial intermediation. Tax benefits created for “angel” investors, foreign venture capitalists, foreign private equity, and foreign lawyers became common. Purchase of shares with shares, triangular mergers, and repurchase of shares were all allowed. Moreover, several new stock exchanges were created expressly for relatively new companies.

Corporate governance laws were also revised. For one, Japanese firms may now use U.S.-style board of director committees, with an upper limit placed on directors’ liabilities. Japanese auditors are now required to be outsiders, and consolidated accounting is likewise compulsory, as well as “mark-to-market” rules for financial reporting. These are just a few of the changes, all of which combine to increase transparency in Japan’s markets.

The results were noticeable. By 2006, new companies were garnering price-to-earnings ratios of greater than 100 to 1 in the new markets; the number of IPOs per year was comparable to the rate during the U.S. Internet bubble; and the mergers and acquisition market was transformed from one of the most moribund in the world to one of the most dynamic. Venture capital firms proliferated, as did new law firms, private equity firms, and foreign banks. Existing Japanese banks merged, new banks formed, and money-lending began again. Some new companies even gained sufficient liquidity and stature to turn their founders into celebrities and some of the wealthiest people in Japan. Rakuten, Mixi, ValueCommerce, and Cybird are just a few of these success stories. Japan is currently in its seventy-first month of economic expansion—the longest of the postwar period.

The future, however, is unclear. As Professor Yoko Ishikura, of Hitotsubashi University, recently observed at a SPRIE seminar at Stanford, “Japan is at a turning point and it is uncertain which direction it will choose.” For 2008, IPO valuations have returned to levels more comparable to those in the United States, and the climate for startups has moderated somewhat. New company startup rates are flat and IPO rates have recently dipped significantly. Some prominent studies of the entrepreneurial climate in various countries rank Japan among the least favorable. Many observers are impatient for more evidence of results from the reforms. It remains an open question whether Japan is being affected by the U.S. slowdown and commodity price increases, or if the country is simply retreating from it entrepreneurial gains.

In light of these developments, scholars remain curious: Are the reforms permanently changing the Japanese economy? Are the reforms sufficient to meet the challenges that Japan faces? Will the reforms be effective? Alternatively, are these reforms even desirable? SPRIE and the U.S.-Asia Technology Management Center, in cooperation with selected experts and research organizations in Japan, are undertaking
a major project to study the seemingly contradictory corporate and social climate in Japan, which is at present stretched between entrepreneurial and more conservative forces.

Japan’s economic relationship with the countries of the Pacific Rim—and indeed with the rest of the world—is vital to all of the economies involved. If Japan is transforming into a new economic culture, an understanding of that transformation is relevant both to global economic development and to the study of entrepreneurial growth.

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