"Sunshine" policy, named after one of Aesop's fables, has been the catch phrase of South Korea's appeasement policy toward North Korea to stimulate and restructure the already collapsed North Korean economy and eventually to convert North Korea to a more conciliatory and cooperative state.

After 10 years of shining the sunlight on North Korea, however, evidences that those self-imposed goals have been achieved are rather scarce. This suggests that, from the beginning, the basic premises of Sunshine policy must have been fatally incongruous with the reality: North Korea should not have been portrayed as an innocent traveler leisurely walking down the street. Or, perhaps, the policy toward North Korea should have pursued more serious goals than just stripping a man of his coat.

In this talk, Dr. Park proposes an alternative to the "Sunshine vs North Wind", and discusses the policy implications of his proposal.

For the past 14 years, Dr. Jongkyu Park has worked on various macroeconomic policy issues of Korean economy including economic forecasts, monetary policy, inflation, budget deficit, exchange rate, savings rate, population aging, real estate bubble, and Japan's economic slowdown and revival. He received B.A. in Economics from Seoul National University in Korea, M.S. in Statistics from University of North Carolina at Chapel Hill, and Ph.D. in Economics from Princeton University.

Major economic reforms are often politically difficult.  They may cause pain to voters and provoke unrest.  They may be opposed by politicians whose time horizons are shortened by electoral cycles.  They may collide with the established ideology and long-standing practices of an entrenched ruling party.  They may be resisted by bureaucrats who fear change, and by vested interests with stakes in the status quo.  Obstacles to major economic reform can be daunting in democratic and autocratic polities alike. 

And yet, somehow, past leaders of today's Asian dragons did manage to get away with critical and creative economic reforms.  Sly political foxes nudged their countries onto high-growth paths toward global renown as economic dragons.  What lessons can be learned from their experiences?  Are tactics that worked in authoritarian systems applicable to democratic ones, and vice versa?  Can one identify a set of stratagems that would amount to an equivalent, for economic reformers, of the advice Machiavelli gave political princes? 

Arroyo will recount the crafty political maneuvers used by leaders of economic reform in Asia during these pivotal eras:  China under Deng Xiaoping; India in the 1990s; Thailand under General Prem Tinsulanonda; Vietnam's Doi Moi; South Korea under Park Chung Hee; Malaysia under Mahathir Mohamad; and Singapore under Lee Kuan Yew.  Arroyo's remarks will be drawn from the paper he has been writing at Stanford on "The Political Economy of Successful Reform: Asian Stratagems," which he describes as "a playbook of useful maneuvers for economic reformers."

Dennis Arroyo is presently on leave from his government post as a director of the National Economic and Development Authority (NEDA) of the Philippines.  He has held consultancies with the World Bank, the United Nations, and the survey research firm Social Weather Stations, and has written widely on socioeconomic topics.  His critique of the Philippine development plan won a mass media award for "best analysis."  He has degrees in economics from the University of the Philippines.  

During the past 40 years, Professor Hu has been teaching and conducting research in health economics, particularly in healthcare financing and the economics of tobacco control.  Hu was a Fulbright scholar in China. He has served as consultant or advisor to the World Bank, the World Health Organization, the National Institutes of Health, the Institute of Medicine, the Rand Corporation, the Ministry of Health in the People's Republic of China, Department of Health and Welfare in Hong Kong, Department of Health in the Republic of China (Taiwan), and many private research institutions and foundations. 

Professor Hu will speak to us immediately after an April trip to China, sharing his research and perspectives on the economics of tobacco control and the debate about healthcare system reforms in China (including a possible link between the two through financing expansions in coverage through increased tobacco taxation).

Conventional wisdom says that relations between China and Japan are fated always to be exceptionally wary, if not openly hostile -- and Japanese leaders' visits to the notorious Yasukuni have done nothing to undermine this view. Nor have Sino-Japanese standoffs over the disputed Senkaku islands. Meanwhile Beijing's opposition has been widely credited as the reason why Japan has failed in its reported aspiration to join the United Nations Security Council. Author and long-time Tokyo-based East Asia watcher Eamonn Fingleton argues that these issues have been grossly misunderstood in the West and that on closer inspection they say little if anything about the true state of Sino-Japanese relations. He insists that on a host of substantive issues overlooked by the press, Japan and China have been cooperating closely for decades. So much so that Japanese help has been one of the most powerful factors in China's rise.

A former editor for Forbes and the Financial Times, Eamonn Fingleton has been monitoring East Asian economics since 1985. He met China's supreme leader Deng Xiaoping in 1986 as a member of a New York Stock Exchange delegation. The following year he predicted the Tokyo banking crash and went on in Blindside, a controversial 1995 analysis that was praised by J.K. Galbraith and Bill Clinton, to show that a heedless America was fast losing its formerly vaunted leadership in advanced manufacturing to Japan.

His 1999 book In Praise of Hard Industries: Why Manufacturing, Not the Information Economy, Is the Key to Future Prosperity anticipated the American Internet stock crash of 2000. In his 2008 book In the Jaws of the Dragon: America's Fate in the Coming Era of Chinese Hegemony, he issues a strong challenge to the conventional view among Washington policymakers and think tank analysts that China is converging to Western economic and political forms and attitudes. His books have been read into the U.S. Senate record and named among the ten best business books of the year by Business Week and Amazon.com.

He was born in Ireland in 1948 and is a graduate of Trinity College Dublin. He was the recipient of the American Values Award from the United States Business and Industry Council in 2001.

Copies of Fingleton's newest book In the Jaws of the Dragon: America's Fate in the Coming Era of Chinese Hegemony - due March 4 by St. Martin's Press - will be for sale during the event.

In the pursuit to assess high-tech regions' performance in and capability for innovation and entrepreneurship, a bewildering variety of data is published, including:

• employment
• total corporate sales
• wages
• venture capital funding
• new company formation and growth of small firms
• R&D spending
• patents, and many more

However, on the basis of such heterogeneous indicators, it can be difficult or even impossible to compare regions. Some of this is inevitable given different perceived data needs in each region. However, perhaps a common core of data might be supplied.

To this end, the Stanford Program on Regions of Innovation and Entrepreneurship is bringing together scholars and researchers from the United States, Europe and Asia to present data from their own regions that would help with comparisons between regions and linkages among them, and to make the case for what they consider the most useful set of indicators.

There will be four workshop sessions: the first will be devoted to discussing a framework for looking at entrepreneurship and innovation regional indicators, and the remaining three will take a regional focus, proposing indicators closely related to innovative regions in the United States, Europe and Asia.

This event is part of the "The Shape of Things to Come" conference at the Fisher Conference Center at Stanford University, January 17-18, 2007.

» Presentations/Papers from the event