A conference that honored the life and scholarly contributions of Stanford economist Masahiko Aoki was held at Stanford. Dozens of friends, family and community members paid tribute to Aoki, the Henri and Tomoye Takahashi Professor of Japanese Studies and Professor of Economics, emeritus, who died in July at the age of 77.

Eleven renowned economists and social scientists gave talks on Aoki’s extensive fields of research in economic theory, institutional analysis, corporate governance, and the Japanese and Chinese economies at the Dec. 4 conference, which was followed by a memorial ceremony the next day.

“When we contacted people to speak at this conference, few people turned us down,” said Stanford professor Takeo Hoshi. “The reason for this is Masa. It shows how much Masa was respected and how much his work is valued.”

The events were hosted by the Japan Program at the Walter H. Shorenstein Asia-Pacific Research Center, the Freeman Spogli Institute for International Studies (FSI), Graduate School of Business, Department of Economics and the Stanford Institute for Economic Policy Research (SIEPR).

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Aoki came to Stanford in 1967 as an assistant professor, held faculty appointments at Kyoto University and Harvard, and returned to Stanford in 1984. He retired to emeritus status at Stanford in 2005.

Throughout the conference, Aoki was described as an astute professor and colleague, valuable mentor and loyal friend by the many speakers and participants who shared works, stories and multimedia featuring their interactions with Aoki.

Aoki pioneered the field of comparative institutional analysis (CIA) with a team of scholars at Stanford: Avner Greif, John Litwack, Paul Milgrom and Yingyi Qian, among others. CIA analyzes and compares different institutions that evolve to regulate different societies.

“Masa had a good background in looking at the economy as a whole, financial institutions as a whole – not just how numbers or actors economically interact – but also the people who interact within a given institutional framework,” said Koichi Hamada, a professor emeritus at Yale University. 

Aoki applied a systematic lens to everything he studied, a “take society as a total entity” approach, Hamada said.

Aoki grew up in Japan, and developed a deep interest in Japanese politics at an early age. He was actively involved in student movements in the early 1960s, at the heart of which was a campaign against a controversial U.S.-Japan security treaty. China became another great interest of his as the country began to undergo economic transformation and modernization.

Throughout his career, Aoki traveled to Japan and China often, and sought to better inform policy debates by engaging scholars, government leaders and journalists there.

He believed in sharing lessons learned from his own scholarly analyses on what constitute institutions, particularly the “people” aspects – the employees, their cognitive abilities and levels of participation.

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Top left to right: Yingyi Qian of Tsinghau University talks with Avner Greif of Stanford University and Hugh Patrick of Columbia University. / Koichi Hamada of Yale University delivers his remarks titled "Masahiko Aoki: A Social Scientist." Bottom: Reiko Aoki, the wife of Masahiko Aoki, listens in to Kenneth Arrow, a professor emeritus at Stanford University. Credit: Rod Searcey

Aoki was not only a scholar of institutions but also a builder of them.

In 2005, Aoki helped oversee the development of the Center for Industrial Development and Environmental Governance at Tsinghua University in Beijing, which held numerous roundtables in its first decade of existence, and continues to this day.

“Amid a time of diplomatic tensions between China and Japan…Masa was able to bring Japanese, Chinese and American economists together to study and do research,” said Yingyi Qian, dean and professor at the school of economics and management at Tsinghua.

At Stanford, Aoki played a leading role in the creation of the Stanford Japan Center and a multi-day conference that convened annually in Kyoto on issues of mutual concern between Asia-Pacific countries and the United States.

Earlier this year, Aoki was hospitalized for lung disease. Even at that stage, he worked tirelessly to revise a paper that examines the institutional development of China and Japan in the late 19^th to early 20^th centuries.

That paper titled, “Three-person game of institutional resilience versus transition: A model and China-Japan comparative history,” was presented at the conference by Jiahua Che, one of two scholars that Aoki asked to finish and publish the work.

Aoki was also fondly remembered for his mentorship of students at Stanford and other universities he taught at.

“He was an original and unique professor – quite different from others that I’ve met in many respects. He was generous with his time, not hierarchical,” said Miguel Angel Garcia Cestona, who studied for a doctorate at Stanford and now teaches at the Universitat Autonoma de Barcelona.

Garcia Cestona, among other former students, spoke of Aoki as a friend and shared memories of their former professor hosting them at his home.

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Masahiko Aoki in Northern California, 2014.

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Conference agenda

Stanford obituary

Marking seventy years since the end of World War II, Japanese Prime Minister Shinzo Abe expressed “profound grief” on Friday for his country’s actions. While pointing to short comings in the statement, the Stanford scholars said the prime minister’s words represented a genuine effort to reflect on the past and provided opportunities to improve relations in the region.

The highly anticipated statement, issued on behalf of the Japanese cabinet, was closely followed by its East Asian neighbors who have raised concerns over Japan’s views of the wartime era.

Leaders of South Korea and China have said Japan has not apologized fully for crimes committed during WWII and each dispute historical narratives seen in the others’ textbooks, popular culture and other domains.

Advancing historical reconciliation in East Asia is a key research area of the Walter H. Shorenstein Asia-Pacific Research Center. The center leads a research project, Divided Memories and Reconciliation, which has produced numerous articles and books, including a ground breaking comparative study of high school history textbooks in China, Japan, South Korea, Taiwan and the United States.

In May 2014, the center convened an international conference “Pathways to Reconciliation” on historical issues, co-sponsored by the Trilateral Cooperation Secretariat, the governmental organization promoting Japan-China-South Korea trilateral cooperation.

Earlier this year, the Japan Program asked Stanford scholars to write their own version of the 70^th anniversary statement as if they were the prime minister of Japan. The scholars’ statements were compiled into a report, published in May 2015.

Eight scholars contributed to the exercise in an effort “to understand the diversity of reasonable views on the issue of Japan’s responsibility for the cruel and violent war and Japan’s role in building a peaceful and prosperous world,” the introduction stated.

Themes that emerged in the report included a need for Abe to show heartfelt remorse about Japan’s actions during WWII and its desire to work toward a peaceful future.

Three noted Japan experts who contributed to that report offered their analysis of the prime minister’s statement issued yesterday in Tokyo.

Below are brief summaries of their analysis, you may click on each link to expand in full.

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Duus recognizes that Abe’s statement offers a reiteration of the statements made by Prime Ministers Murayama and Koizumi by including four key words – aggression, colonial rule, apology and remorse. Unlike past statements, however, Abe’s begins by putting war in the historical context and offers a more explicit statement of the victims of the war, not only the three million Japanese but also citizens of China, Southeast Asia and the Pacific islands. The statement can be viewed as “a small but important step toward a truce in the history wars that have raged in East Asia for the last three decades,” he says. However, Abe's attempt at reconciliation will have little effect if he does not rein in contrary actions by neo-nationalists in his own party.

Peter Duus is the William H. Bonsall Professor of Japanese History, emeritus; and a senior fellow, by courtesy, Hoover Institution, Stanford University.

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Response by Takeo Hoshi

Hoshi notes that Abe’s statement mentions past apologies expressed by the Japanese government, but has no explicit apology from the current administration. He says there are two surprising elements about the statement. The first is the length – it is much larger than predecessors Murayama and Koizumi at 1,664 words in English and 3,970 characters in Japanese. The second is the emphasis on history rather than on forward-looking components. He says it is commendable that Abe provided an expanded view of history. Hoshi notes that it is nearly impossible to satisfy everyone’s views in such a statement, as scholars witnessed firsthand when working on the Japan Program project.

Takeo Hoshi is the Henri H. and Tomoye Takahashi Senior Fellow in Japanese Studies in the Freeman Spogli Institute for International Studies; a professor (by courtesy) of finance at the Graduate School of Business; and director of the Japan Program at the Shorenstein Asia-Pacific Research Center, Stanford University.

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Response by Daniel Sneider

Sneider says Abe’s statement must be judged on following criteria: that it is a valid effort to draw lessons from Japan’s wartime past and that it contributes to the improvement of relations in Northeast Asia. He says the statement advances these goals, but there remain a few caveats. Sneider says the version of history communicated “will not satisfy many people, including many historians,” but that it does move away from the idea that revisionist Japan was in a war of self-defense not aggression. To move Japan, China and South Korea toward reconciliation, the prime minister and his cabinet must embrace the spirit of the statement in full and open the door to convening a long-delayed trilateral summit.

A version of this essay was also published by Nippon in Japanese and English.

Daniel Sneider is the associate director for research at the Shorenstein Asia-Pacific Research Center, Stanford University.

Two key challenges facing Northeast Asia are how to tame the power of nationalism and create shared memories of history, Stanford professor Gi-Wook Shin wrote in The Diplomat. 

Shin, director of the Shorenstein Asia-Pacific Research Center (APARC), urged action on the 70^th anniversary of the end of World War II. Northeast Asians should use the commemoration as an “opportune occasion to reflect on their unfortunate past to learn lessons,” only then can the region become more peaceful and prosperous.

Shin and Daniel Sneider, Shorenstein APARC’s associate director for research, lead the Divided Memories and Reconciliation research project which examines memories of the wartime experience in Northeast Asia and what steps can be taken to reconcile disputes over history.

One of their latest outcomes is the book Confronting Memories of World War II: European and Asian Legacies (April 2015), edited with University of Washington professor Daniel Chirot, that studies how wartime narratives are interpreted, memorialized and used in Europe and Asia.

The full article in The Diplomat can be accessed by clicking here.