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The more a country depends on aid, the more distorted are its incentives to manage its own development in sustainably beneficial ways. Cambodia, a post-conflict state that cannot refuse aid, is rife with trial-and-error donor experiments and their unintended results, including bad governance—a major impediment to rational economic growth. Massive intervention by the UN in the early 1990s did help to end the Cambodian civil war and to prepare for more representative rule. Yet the country’s social indicators, the integrity of its political institutions, and its ability to manage its own development soon deteriorated. Based on a comparison of how more and less aid-dependent sectors have performed, Prof. Ear will highlight the complicity of foreign assistance in helping to degrade Cambodia’s political economy. Copies of his just-published book, Aid Dependence in Cambodia, will be available for sale. The book intertwines events in 1990s and 2000s Cambodia with the story of his own family’s life (and death) under the Khmer Rouge, escape to Vietnam in 1976, asylum in France in 1978, and immigration to America in 1985.

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In our current era, the advent of digital technologies and accelerating globalization is driving ever-faster commoditization of firms and products.  With rapidly improving Information and Communications Technology (ICT) tools, manufacturing is decomposed with finer granularity, and corporate functions can be outsourced and offshored more than ever before.  Services can be unbundled into activities that can be taken apart, reconfigured, and transformed with the application of algorithms.  Overall, firms are experiencing accelerating shifts in the sweet-spot for markets and business models in their search for sustainable advantage.

As firms struggle to adjust in this global, digital world, governments are also under pressure to examine their options to retain value in their national contexts; wealthy nations face the challenge of how to remain wealthy.

Japan is no exception, and from this vantage it is worth reconsidering the potential role that industrial policy can play in its growth strategy.  We will proceed in three sections, each of which builds from our previous research (indicated below the title), towards a set of recommendations for thinking about industrial policy in this digital, global era.  Each point contributes something new to Japan’s discourse about a new growth strategy.

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Japan Spotlight
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Kenji E. Kushida
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PRC-ROK Summit Underscores Shared Interests and Common Concerns
 
 
Stanford, California
 
South Korean President Park Geun-hye’s visit to China this week attests to the magnitude and importance of geostrategic changes in Northeast Asia.  Just a few years ago, such a visit might have been widely interpreted as a sign of tension in the U.S.-ROK relationship and an attempt by Beijing to undermine the alliance.  Now it is viewed, correctly, as a natural and necessary meeting between leaders with many shared interests and common concerns, above all about the behavior and intentions of the DPRK.
 
When Presidents Park and Xi Jinping meet, each will have met recently with President Obama.  Neither will have met with Kim Jong Un since assuming their current positions.  The symbolism of this difference reflects the reality that Park, Xi, and Obama have far more shared interests than any of them has with Kim or his regime.  Indeed, key objectives of all three summits include strengthening bilateral ties and preserving peace in the world’s most dynamic region.
 
Much of the Park-Xi agenda will be devoted to economic and trade issues and opportunities, and to other bilateral and global challenges.  But both leaders recognize that North Korean actions pose the greatest threat to regional peace and the continued prosperity of their own nations.  Their discussions should, and will, devote much time and attention to what each can do, individually, jointly, and with the United States, to persuade Pyongyang to change its dangerous and counterproductive behavior.
 
After testing three nuclear devices, Pyongyang is now openly threatening the United States with a pre-emptive nuclear attack and has engaged in nuclear proliferation with a number of countries. While Pyongyang says its nuclear program is directed only against the United States, many South Koreans believe that the North’s possession of nuclear devices emboldened it to launch two deadly conventional attacks on the South in 2010. What more might Pyongyang do, they fear, if it continues on its current path?
 
North Korea has developed nuclear weapons and delivery systems because it feels threatened from all sides and judges that, unlike the South, it has no reliable ally.  But the real threat to the regime comes from within, not from without. Its misguided policies impoverish its people and prevent the DPRK from following a path of reform and opening to the outside world that has brought stability and prosperity to all of its neighbors, a path that Chinese leaders have urged on Pyongyang for over two decades. 
 
Pyongyang’s leaders seem to have deluded themselves into believing that nuclear weapons will ensure both their security and economic prosperity—even though neither Washington nor Seoul had or has any intention to attack the North, and Pyongyang has long had the functional equivalent of weapons of mass destruction in its thousands of artillery tubes pointed at Seoul. They mistakenly think that Washington will eventually tire of resisting and accept the North as a nuclear weapons state, but no American president will establish diplomatic relations and support removing sanctions on North Korea until it verifiably abandons nuclear weapons.
 
In recent weeks, North Korea has called for bilateral talks with both the United States and South Korea. While it characterized those offers as "unconditional," its own statements made it clear that it regards any talks as being premised on its being and remaining a nuclear weapons state, a condition it knows neither Washington nor Seoul can accept.
 
Before Pyongyang moves farther down a path that threatens peace and security while, ironically, achieving none of its own goals, Park, Xi, Obama, and other regional leaders must seek to persuade Kim to discard failed policies in favor of proven alternatives. At the same time, they must find ways to contain the danger his regime will pose to the region and global nonproliferation efforts until he has an epiphany.
 
President Park said this week that the upcoming Korea-China summit “comes at a more important juncture than at any other time in terms of the situation on the Korean Peninsula.”  Without question, President Park’s summit in Beijing could well be one of the most consequential global diplomatic events of the year.
 
Thomas Fingar served as the U.S. deputy director of national intelligence for analysis and chairman of the National Intelligence Council; Gi-Wook Shin is director of Stanford University’s Shorenstein Asia-Pacific Research Center; and David Straub is a former director of Korean affairs at the U.S. State Department.
 
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The Europe Center's 2-day multidisciplinary dialogue on migration -- the subject of great and growing consequence in the contemporary world. Conference participants from a wide range of theoretical, case-study, and comparative approaches will address the phenomenon of population movement and the experience of migration in its various qualities.

The agenda for this conference is below.

Co-sponsored by the University of Vienna, the Walter H. Shorenstein Asia-Pacific Research Center, and the Center for International Security and Cooperation


 

Bechtel Conference Center

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Beyond North Korea takes a unique, multi-view approach to understanding traditional and non-traditional challenges to South Korea’s security, says a review in the latest edition of Pacific Affairs.
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A thermoelectric power plant in Seoul, November 2007. Energy and the environment are non-traditional security issues explored in Beyond North Korea. | Flickr / Doo Ho Kim
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Takeo Hoshi
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Prime Minister Shinzo Abe's plan for revitalizing the Japanese economy appears to offer something for everyone. Takeo Hoshi argues that before Mr. Abe makes any more announcements, he needs to focus his efforts on a few key priorities.
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Kokkai-gijido, Japanese Diet Building, Tokyo, Japan 2006 | Flickr user Henry Stradford
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