Abstract

Conviction is widespread and increasing in both the United States and China—as well as many other countries—that the U.S.–China relationship is becoming less stable and more dangerous. We do not agree. Relations between Beijing and Washington in 2013 are more extensive, more varied, more interdependent, and more important to one another as well as to the global system than at any time in the past. But suspicion and mutual distrust persist and may have intensified. Yet, despite dramatic changes in the international system and the need to manage fleeting as well as persistent problems, the United States and China have maintained strategic stability for four decades. The relationship is less fragile and volatile than many assert, with strategic stability the result of multiple factors that reinforce one another and limit the deleterious effects of developments threatening specific “pillars” that undergird the relationship. Complacency and failure to address misperceptions and mistrust, however, will have unfortunate consequences for both sides.

This paper examines how diversely organized capitalist societies evolve by analyzing the transformation of Japan’s financial system since the 1990s. The banking, securities and insurance, as well as the postal financial institutions changed significantly, but are hardly converging to Anglo-American or ‘liberal market’ models. The authors contend that Japan’s new financial system is best characterized as syncretic, with new, traditional and hybrid forms of practices, organizations and norms coexisting. Syncretism in industry was driven by a distinctive pattern of interest group politics we call syncretization. Strong political leadership, facing serious electoral threats, shifted the policy logic from gradual incremental reforms following traditional interest group dynamics, to rapid reforms that excluded the traditionally powerful interest groups most affected by these reforms. We support the notion that diverse industry outcomes can be complementary to broader political economic reforms that take Japan away from its traditional model, part of a broader ‘convergence towards diversity.’

In an International Economy article, Daniel C. Sneider explores the troubling history of China-Japan tension. He concludes that China and Japan have every reason to pull back from
the brink of conflict—and most importantly, the United States serves a crucial role in reminding both nations of the need for peace and stability in this vital region. But the economics of the global supply chain cannot wipe away the cumulative effect of the “poisoned well” of a history of hostility. Japanese Premier Abe may wish to put the past aside and be, as he says, “forward looking.” But a failure to address the past is likely to lead to repeating it.

The Ninth Korea-U.S. West Coast Strategic Forum was held at the Lotte Hotel in Seoul on November 13, 2012, hosted by the Sejong Institute. The Ninth Forum’s three sessions focused on the implications of major leadership changes in the United States, South and North Korea, and China. Established in 2006 by Stanford University’s Shorenstein Asia-Pacific Research Center (Shorenstein APARC) and now convening semi-annually alternating between Stanford and Seoul, the Forum brings together distinguished South Korean (Republic of Korea, or ROK) and American scholars, experts, and former military and civilian officials to discuss North Korea, the U.S.-ROK alliance, and regional dynamics in Northeast Asia. Operating as a closed workshop under the Chatham House Rule of individual confidentiality, the Forum allows participants to engage in candid, in-depth discussion of current issues of vital national interest to both countries.

The eighth session of the Korea-U.S. West Coast Strategic Forum was held at Stanford University on June 1, 2012. Established in 2006 and now convening semiannually alternately in Stanford and Seoul, the Forum brings together a distinguished group of South Korean (Republic of Korea, or ROK) and American scholars, experts, and former military and
government officials to discuss North Korea, the U.S.-ROK alliance, and regional dynamics in Northeast Asia. Stanford University’s Walter H. Shorenstein Asia-Pacific Research Center is co-organizer of the Forum in association with its partner, the Sejong Institute of Korea. The Forum operates as a closed workshop under the Chatham House Rule of individual confidentiality, allowing participants to engage in frank, in-depth discussion of current and emerging issues of importance and interest to both countries.

The Sejong Institute of Korea hosted the seventh session of the Korea-U.S. West Coast Strategic Forum at the Lotte Hotel in Seoul on December 13, 2011. Established in 2006 by Stanford University’s Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC), the Forum brings together distinguished South Korean (Republic of Korea, or ROK) and American scholars, experts, and former military and civilian officials to discuss North Korea, the U.S.-ROK alliance, and regional dynamics in Northeast Asia.

Since the third session, the Sejong Institute has been Shorenstein APARC’s Korean counterpart in organizing and hosting the Forum. Meetings are held semi-annually, alternating between Stanford University and Seoul. Operating as a closed workshop under the Chatham House Rule of individual confidentiality, the Forum allows participants to engage in candid, in-depth discussion of current issues of vital national interest to both countries.

China has enjoyed a higher growth rate for a longer period than any other nation to date, but a new consensus is emerging that China is now facing a crucial turning point. This volume is unprecedented in bringing together leading economists from China and the rest of the world to analyse the sources of economic growth, examine its changing conditions for future development, and suggest desirable policy and institutional reforms. Chapters address a wide range of issues, covering not only macro and micro economic mechanisms, but also various aspects of human resource development, environmental protection, and political impact on the economy. The contributors include F. Allen, C.Bai, D. Bloom, F. Cai, R. Freeman, D. Jorgenson, J. Lou, D. H. Perkins, C. Xu, among others.

Shorenstein APARC overviews provide detailed information about the Center's mission, history, faculty, financial support, organizational structure, projects, and programs.

These working papers on the South Korean economy are the product of an annual conference series on Korean affairs hosted by Stanford University's Korean Studies Program (KSP), and made possible by the generous support of the Koret Foundation. KSP's 2009–2010 Koret Fellow, Byongwon Bahk, a former vice finance minister and chief economic adviser to Korean president Lee Myung-bak, played a leading role in organizing the 2010 conference, authored a major paper, and co-edited this volume.

From Byongwon Bahk's preface:

The editors believe that the study of the South Korean economy holds, or should hold, interest not only for Koreans but also for Americans and the international community as a whole. Korea has become a major player in the global economy, ranking thirteenth in GDP and seventh in exports among the world's nearly 200 countries. This should no longer come as much of a surprise to consumers across the globe who use Korean cell phones, drive Korean cars, and, increasingly, enjoy Korean pop music and movies.

The Korean economy is also important as a leading model of development. In only two generations and despite national division and the devastation of civil war, South Korea has transformed itself from a largely agricultural economy to a world leader in manufacturing, which in turn facilitated its emergence as a dynamic democracy. The Korean experience holds many lessons for countries throughout the world as they also struggle to modernize in a highly competitive, globalized economy.

Korea's success in navigating the turmoil caused by the global financial crisis and recession of 2008–2009 is yet another reason for studying its economy. Despite its economy being an astounding 85 percent dependent on international trade, Korea has been among the world's leaders in recovering from the crisis. Korea owes that success in part to the very hard lessons it learned from the Asian financial crisis of 1997–1998.

The five chapters selected for this compendium focus on some of the timeliest and most important issues involving the Korean economy.

Papers included in this volume:

1. "The Changing Global and Korean Economies" by Taeho Bark
2. "An Odyssey of the Korean Financial System and the September 2008 Financial Shock" by Thomas F. Cargill
3. "South Korea’s Official Development Assistance Policy Under Lee Myung-bak: Humanitarian or National Interest?" by Eun Mee Kim and Ji Hyun Kim
4. "Policy Recommendations for the Korean Economy" by Byongwon Bahk
5. "Economic Globalization and Expatriate Labor in Korea" by Gi-Wook Shin and Joon Nak Choi

New product and service development is the lifeblood of any enterprise. Beyond the obvious need for organizations to innovate in order to compete, embedded in any new product development (NPD) program are knowledge, technological expertise, and the social networks that convert these capabilities into marketable offerings. Recent research has focused on the NPD as dynamic and iterative, as opposed to linear. The pressure to reduce costs is forcing many companies to outsource operations. On the one hand, outsourcing may create gaps in the product development value chain; on the other, it exposes product teams to new ideas and expands the "community of practice." How will this trend affect NPD in the long run?

This volume showcases the research of teams from the Grenoble Management School’s Learning and Innovation in Networks and Communities Lab, the European Commission’s MATRI project, and Stanford University's Walter H. Shorenstein Asia-Pacific Research Center, among others, to explore the dynamics of NPD in today’s global environment. Presenting case studies from such industries as semiconductors, biotechnology, and information technology, and drawing from a variety of theoretical perspectives, including technology and knowledge management, sociology, economic geography, and organizational behavior, the authors highlight critical success and failure factors in NPD.