Japan has been actively pursuing internationalization of its higher education, and recruiting foreign students has been a major part of this endeavor. In 1983, Japan announced its plan to recruit 100,000 foreign students by the year 2000, and in 2008 instituted a plan to recruit 300,000 foreign students by 2020. Subsequent government-led projects such as the Global 30 (2009-2014) and the Top Global University (2014-2023) projects have also stipulated international student recruitment as a major requirement.

As a result, the number of foreign students in Japanese universities has increased significantly from 10,428 in 1983 to 139,185 in 2014. Likewise, foreign faculty numbers have grown from just 418 (0.8% of total faculty) in 1994 to 6,034 (6.8%) in 2014. Although the figures are still relatively low compared with those in Europe and North America, they bring a potentially powerful force for social change to a country marked by high ethnic homogeneity.

In particular, the influx of foreign students and faculty to Japanese universities creates more culturally diverse campuses, often cited as a desirable result of and a key motive for pursuing internationalization. In the U.S. and Europe, such changes have led to significant discursive and programmatic efforts to create a culture of respect for diversity and inclusion. For example, Europe has, despite its critics, consistently articulated the value of "interculturality," diversity, and respect for cultural differences as a broader discourse for European higher education.

However, this is not the case with Japan and most other Asian nations. One major reason is that Japanese universities primarily attract foreign students as a means to particular ends, such as enhancing university prestige, creating "education hubs," filling the gap in the declining college student population and improving international higher education rankings. As a result, Japanese campuses have become much more diverse than in the past. However, appreciation of the intrinsic educational value of a culturally diverse student and faculty body has not been embraced.

Our study shows a noticeable disjuncture between structural, educational and interpersonal levels of diversity. That is, Japanese universities have accepted more and more students of varying racial and ethnic backgrounds (structural diversity), but the curriculum still offers limited opportunities for students to think more deeply about assumptions concerning race, ethnicity and other individual/group differences (educational diversity).

However, despite the politeness of the Japanese, many of the respondents indicated that making friends with Japanese students is difficult, with some pointing this out to be "the hardest part about being in Japan." One foreign student seemed puzzled: "Making real friends is hard. But I don't know why." One South Korean student we interviewed provided a clue: "People here are very individualistic and very independent, I think. In my laboratory, I will be the one who will approach my lab mates, especially the Japanese. They are very helpful but I have to be the one who starts the conversation."

The Japanese government and universities have worked closely to attract foreign students but due to the lack of interpersonal interaction between Japanese and foreign students, Japan is missing out on crucial opportunities in its higher education internationalization efforts.

First, international students gain many opportunities to interact with each other and learn intercultural skills for global citizenship while Japanese students much less so. As one foreign student said, "It's a very diverse environment because we all come from different countries. We can communicate different ways of thinking and share different ideas." Yet, most Japanese students are hesitant to interact with foreign students, missing the chance to learn intercultural skills. As the number of young Japanese going abroad to study has been on the decline in recent years (82,945 in 2004 to 60,138 in 2012), the contribution of foreign students to global education in Japanese colleges will be all the more important.

Second, diversity is instrumental in promoting innovation, and Japan should take advantage of the diversity that foreign students bring to its society. Much research demonstrates the positive effects of diversity on various academic and social outcomes (ability to form out-group friendship networks, increased cultural awareness, acquiring global citizenship skills, improving the campus climate, innovation, etc.). Facilitating diversity and recognizing their long-term effects for innovation and development should be a major goal of higher education in Japan.

Finally, foreign students can be valuable social capital for Japan, especially playing the role of transnational bridges between Japan and their home countries. Many come to Japan to learn about Japanese society and economy, with plans to become a bridge between Japan and their home countries after graduation. However, due to the lack of interpersonal interaction with Japanese students, foreign students often end up interacting primarily among themselves. Thus, they are also likely to bridge among themselves, rather than with Japanese, and that is a loss, given that Japan has invested so much in attracting foreign students.

Japan wants to make its top universities "super global," but they should first realize that this requires more than simply recruiting foreigners. What is most urgent is producing "global citizens" with inter-cultural skills and that can be achieved through the creation of a campus environment and culture that appreciates and respects diversity. It should also better appreciate the value of foreign students as transnational bridges with Japan.

To achieve such goals, Japanese universities need to establish institutional frameworks or programs to promote interaction between Japanese and foreign students. For example, they should offer more courses that both Japanese and foreign students can take together. Rather than just focusing on teaching Japanese languages and cultures to foreign students, Japanese students should be encouraged to take more courses in English and also those on other cultures and societies, ideally together with foreign students. These courses can instill values of cultural diversity in higher education in Japan. Japanese universities also need to ensure that structural segregation, either between programs, courses, dormitories and campuses, isn't an obstacle for promoting greater interaction between foreign and local students.

Our focus group interviews with Japanese students show that foreign and Japanese students misunderstand each other to a great extent. Foreign students are disappointed that not many Japanese are willing to approach them, but Japanese students are afraid to inconvenience their foreign visitors with their "poor" English. Foreign students are tired from guessing what their Japanese counterparts really feel and think, or their honne, but Japanese students think it is impolite to be too frank and direct even with other Japanese, let alone towards foreign students. To reduce these and other misgivings and gaps in cultural understanding, Japanese universities need to put in place more cross-cultural programs and opportunities for both sides to come into natural contact.

In short, internationalization efforts by Japanese universities should not stop at recruiting foreigners to their campuses. Rather, fostering a tolerant, inclusive university culture where foreigners are considered full, valued members should be considered an important step toward making Japanese universities truly international.

Stanford professor Gi-Wook Shin and Yonsei University professor Rennie J. Moon lead the research project, Diversity and Tolerance in Korea and Asia. This Nikkei Asian Review article was originally carried on July 16 and reposted with permission.

Masahiko Aoki, a Stanford economist who forged new ways of thinking about organizations, institutions and East Asian economies, died in Palo Alto on July 15. He was 77, and recently had been hospitalized for lung disease.

Aoki was a founder of comparative institutional analysis, which explores issues, perspectives and models of institutions within the economy. He studied economic systems, corporate governance and East Asian economies, and developed the "theory of the firm" to compare organizational structures in the corporate world.

Aoki was the Henri and Tomoye Takahashi Professor of Japanese Studies and Professor of Economics, emeritus, and senior fellow at the Stanford Institute of Economic Policy Research and the Freeman Spogli Institute for International Studies. He came to Stanford in 1967 as an assistant professor, and also had appointments at Harvard University and at Kyoto University in Japan. Aoki retired to emeritus status at Stanford in 2005.

Scholar, institution builder

Aoki's colleague, Stanford economist Takeo Hoshi, described him as a prolific and dedicated scholar. "Even at the hospital, he worked on revising his most recent paper that examines institutional development in China and Japan from the late 19th century to the early 20th century," said Hoshi, the Henri and Tomoye Takahashi senior fellow at Stanford's Freeman Spogli Institute for International Studies.

Hoshi noted, "Masa was the first scholar to apply rigorous theoretical tools in modern economics to study of the Japanese economy." This led Aoki to develop, along with his Stanford colleagues, the framework behind comparative institutional analysis, which can be applied to any economic system, he added.

For Hoshi, Aoki was the "biggest reason why I decided to focus on the study of the Japanese economy in my career almost 30 years ago, and why I moved to Stanford a couple of years ago to be the director of the Japan Program at Asia-Pacific Research Center."

Aoki was the inaugural director of the Japanese Studies Program at the Walter H. Shorenstein Asia-Pacific Research Center (APARC) when it was re-established in 2011.

John Shoven, the director of the Stanford Institute for Economic and Policy Research, said Aoki was both an accomplished scholar and institution builder.

"He is widely respected all over the world, and was able to span the worlds of economic theory and applied economic policy. We have lost both a friend and one of the world's leading economists," Shoven said.

Aoki's passing represents "a loss to economics, to Stanford and to me personally," said Stanford economist Kenneth J. Arrow, 1972 winner of the Nobel Prize in economic sciences.

"His most important contributions were to the analysis and understanding of organizational forms in economic life. Aoki particularly studied the contrasting forms of economic organization in the United States and Japanese economies. His work was informed by a deep understanding of economic theory," said Arrow, the Joan Kenney Professor of Economics and Professor of Operations Research, emeritus.

Leadership roles

In his 2001 work, Toward a Comparative Institutional Analysis, Aoki developed a new approach to analyze how institutions evolve, why institutional structures are diverse across economies, and what factors lead to institutional change or inflexibility.

Aoki's most recent book Corporations in Evolving Diversity: Cognition, Governance, and Institutions, was published in 2010.

Aoki was born in Nagoya, Aichi Prefecture, in 1938. He graduated from the University of Tokyo with bachelor's and master's degrees in economics, in 1962 and 1964, respectively, and a doctoral degree in economics from the University of Minnesota in 1967. In addition to his Stanford career, he held visiting positions at academic institutions in China, Germany, Japan, Sweden and the United Kingdom.

Aoki was president of the International Economic Association from 2008 to 2011, and served as president of the Japanese Economic Association. He was awarded the Japan Academy Prize in 1990 and the sixth International Schumpeter Prize in 1998.

He was the founding editor of the Journal of the Japanese and International Economies, and also founded the Research Institute of Economy, Trade and Industry, and the Virtual Center for Advanced Studies in Institution at the Tokyo Foundation. He was involved in the establishment of the Center for Industrial Development and Environmental Governance at Tsinghua University.

Aoki is survived by his wife, Reiko, of Stanford, and two daughters, Maki, of Boston, and Kyoko, and granddaughter Yuma, of the San Francisco Bay Area.

Clifton Parker is a writer for the Stanford News Service.

The Washington Post's Anna Fifield reviewed Crossing Heaven's Border (Shorenstein APARC, 2015), a book by author and journalist Hark Joon Lee. The book details the challenges facing North Korean defectors -- their perilous escapes, the repressive regime that they seek to flee from, and for some, what life looks like on the other side.

"Lee’s book is compelling because it offers a fresh perspective on the puzzle that is North Korea. He writes about the challenges he faced in reporting on this story and the ethical questions he encountered, and the toll it took on him as a person," Fifield writes.

Sensationalist stories about North Korea often swirl in news headlines, but Lee chronicles their hardships as a firsthand witness who embedded with defectors from 2007 to 2011. 

Lee, reporting for the Korean newspaper Chosun Ilbo, initially published the stories as articles, and later as a documentary on the Public Broadcasting Service in 2009. Lee's account focuses on the lives of ordinary North Koreans.

"He writes about the tenderness he sees between a middle-aged couple from different social backgrounds who fled so they could be together; Soo-ryun, who had a difficult escape but found love and had a baby, only to be struck down by stomach cancer; pretty Young-mi, who dreamed of going to the United States but then found she couldn’t even understand the English that South Koreans use," Fifield writes.

The review and a Q&A with Lee is available on the Washington Post website.

Joon Nak Choi will be the 2015-16 Koret Fellow in the Korea Program at Stanford University’s Walter H. Shorenstein Asia-Pacific Research Center (APARC), effective Jan. 1, 2016.

A sociologist by training, Choi is an assistant professor at Hong Kong University of Science and Technology. His research and teaching areas include economic development, social networks, organizational theory, and global and transnational sociology, within the Korean context.

Choi, a Stanford graduate, has worked jointly with Stanford professor Gi-Wook Shin to analyze the transnational bridges linking Asia and the United States. The research project explores how economic development links to foreign skilled workers and diaspora communities.

Most recently, Choi coauthored Global Talent: Skilled Labor as Social Capital in Korea with Shin, who is also the director of the Korea Program. From 2010-11, Choi developed the manuscript while he was a postdoctoral fellow at Shorenstein APARC.

Mark Granovetter, a professor and chair of Stanford’s sociology department, praised Choi for his work in academia.

“Joon Nak’s dissertation on social influences on hedge fund managers’ success broke important ground in our understanding of financial markets. His recent book Global Talent sheds critical new light on the challenges of Korea and other economies facing high-level labor shortages, and the potential of foreign workers to meet them. As the 2015-16 Koret Fellow, he will bring his considerable talents to bear on the study of Korean society,” Granovetter said.

During his fellowship, Choi will study the challenges of diversity in South Korea and teach a class for Stanford students. Choi’s research will buttress efforts to understand the shifting social and economic patterns in Korea, a now democratic nation seeking to join the ranks of the world’s most advanced countries.

Supported by the Koret Foundation, the fellowship brings leading professionals to Stanford to conduct research on contemporary Korean affairs with the broad aim of strengthening ties between the United States and Korea. The fellowship has expanded its focus to include social, cultural and educational issues in Korea, and aims to identify young promising scholars working on these areas.

“It will be my pleasure and honor to spend the next year at Shorenstein APARC, and have the opportunity to engage in the vibrant research community there," Choi said.

Choi holds a bachelor’s degree in economics, international relations and urban studies from Brown University, and a master’s degree and doctorate in sociology from Stanford University.

The United States and European countries can take steps to avoid making the same economic mistakes that Japan committed during the latter's "lost decade," a Stanford economist wrote in a new paper.

The study, published in the IMF Economic Review, describes the reasons Japan was not able to pull out of its long recession in the 1990s, offering some lessons for U.S. and European leaders in the wake of the 2007-09 meltdown.

In particular, the delay in bank recapitalization and the lack of structural reforms in the economic sphere kept Japan from realizing a full recovery, wrote Takeo Hoshi, the Henri and Tomoye Takahashi senior fellow at Stanford's Freeman Spogli Institute for International Studies.

"Bank recapitalization" refers to a governmental reorganization of failing banks, often involving the use of public money to keep them solvent. "Structural reforms" describes how a government might overhaul its economic structures to increase business competition – such as deregulation to cut costs for firms.

The shortcomings in these two policy areas "retarded Japan's recovery from the crisis and were responsible for its stagnant post-crisis growth," said Hoshi, whose co-author was Anil K. Kashyap, an economics professor at the University of Chicago Booth School of Business.

Risky bank lending

Japan's "lost decade" originally referred to the 1990s, though the country has still not regained the economic power it enjoyed in the 1970s and 1980s. Some say Japan has actually experienced two lost decades if the 2000s are counted as well.

Faced with a huge financial crisis at the dawn of its lost decade, Japan had to navigate challenges that other advanced economies had not confronted since the Great Depression, Hoshi and Kashyap wrote.

However, government leaders made mistakes, Hoshi said. One was failure to rehabilitate the banks and another was to misunderstand the nature of the problems afflicting the Japanese economy. For example, much like the United States in 2007-09, the Japanese banks had made many dubious loans to risky customers.

"Instead of recognizing that major structural adjustments were needed, much of the policy response was calibrated under the assumption that Japan faced a simple cyclical problem that could be addressed with indiscriminate fiscal stimulus," wrote Hoshi, the director of the Japan Program at the Walter H. Shorenstein Asia-Pacific Research Center.

For example, on the demand side, monetary policy was not as expansionary as it could have been, he said. Deflation persisted for a long time. And fiscal stimulus packages – such as tax cuts – were inconsistent. Meanwhile, much of Japan's fiscal spending took the form of public works projects that had low productivity.

As for structural reforms, the Japanese government lacked a sense of urgency. For example, even in the reform-minded administration of former Prime Minister Junichiro Koizumi, only eight of the proposed 35 reform initiatives would have directly boosted growth. Of the others, 16 might have indirectly supported growth and 11 would have had no effect on growth, Hoshi said.

Drastic change needed

Unfortunately, some European nations seem to be following Japan's lead, Hoshi said.

"In France, Italy and Spain, bank recapitalization has been delayed and the structural reforms have been slow. Without drastic changes, they are likely to follow Japan's path to long economic stagnation," Hoshi and Kashyap wrote.

The problems that held back Japan seem to be less serious in the U.S., Hoshi said: "Employment protection is low in the United States and the labor market shows high mobility. The regulatory advantage for incumbent firms is smaller than in Europe or Japan and starting new business is relatively easy."

As the researchers noted, the United States and Germany are in a bit better economic shape, partly due to the fact that they did undertake structural reforms sooner rather than later. The U.S. was able to recapitalize its banks more quickly, for example.

Still, five years after the failure of the Lehman Brothers investment bank left the world's financial markets in chaos, the U.S. and Europe are not yet back to what had looked normal before the crisis, according to the research. For instance, employment levels have not reached the levels seen before the 2007-09 crash.

"The U.S. recovery has been tepid despite a number of extraordinary macroeconomic policies (at least in the traditional sense). This suggests that the U.S. economy also has problems, but they are just different from those in Japan and in Europe," Hoshi said.

In the years leading up to the financial crisis, the researchers wrote, U.S. growth was fueled by a consumption boom from rapid housing price increases and rising debt levels.

"In a broad sense, the U.S. economy before the crisis was similar to the Japanese or Spanish economies," noted Hoshi, adding that in Japan, the speculative investment boom in the late 1980s masked structural problems.

Clifton Parker is a writer for the Stanford News Service.

The United Nations has thus far fulfilled its charter to prevent a third world war, but with 60 million refugees, continued bloodshed with unresolved civil conflicts and terrorism spreading like cancer, the world's leading peacekeeping organization must spearhead global action, U.N. Secretary-General Ban Ki-moon said Friday at Stanford on the 70th anniversary of the international organization.

Ban, the U.N.'s eighth secretary-general, did not rest on any laurels during his speech at a public event sponsored by the Walter H. Shorenstein Asia-Pacific Research Center (APARC). "I humbly accept criticism that the U.N. is not doing enough," he said. 

However, the situation could have been worse if not for the United Nations, he continued. "Without peacekeepers, or without the U.N.'s continued humanitarian assistance and advocacy of human rights, I'm afraid to tell you that this world would have been poorer, more dangerous and even bloodier without the United Nations."

Ban's visit to Stanford – his second to the university in less than three years – was part of a trip to the Bay Area to commemorate the signing of the U.N. charter. In 1945, representatives from 50 nations gathered in San Francisco to create the United Nations – an international organization aimed at saving future generations from the "scourge of war."

Today, the United Nations has grown to 193 member nations. Its challenges – from climate change and poverty to civil wars and terrorism – have never been greater, Ban said.

"This is a critical year; 2015 is a year of global action," he said. "The U.N. cannot do it alone. We need strong solidarity among government, business communities and civil societies, from each and every citizen."

The fact that so many young people around the globe are drawn to violent narratives is worrisome, Ban said. "Violent terrorism is spreading like cancer around the world."

The rise in terrorist activities stems from "a failure of leadership," he said. That's why the United Nations needs to develop a comprehensive plan of action to address extremism, he maintained.

The U.N.'s 70th anniversary coincidentally fell on a momentous day of tragedy and celebration around the world. Dozens were killed when terrorists launched horrific attacks across three continents – in France, Tunisia and Kuwait – fueling anger, sadness and fear of more violence.

But in the United States, celebrations rang out in response to a landmark U.S. Supreme Court ruling that legalizes same-sex marriages nationwide.

Ban, who has long advocated for equality and last year pushed the United Nations to recognize same-sex marriages of its staff, drew a round of applause when he heralded the court ruling as "a great step forward for human rights."

The June 26 event was co-sponsored by Shorenstein APARC and the Freeman Spogli Institute for International Studies at Stanford University, with promotional co-sponsors Asia Society, Asia Foundation and the World Affairs Council of Northern California. 

May Wong is a freelance writer for the Stanford News Service.

Coverage and related multimedia links:

Remarks at Stanford University by Ban Ki-moon (U.N. News Centre, 6/26/15)

Photos of Ban Ki-moon at Stanford University (U.N. Photo, 6/26/15)

At Stanford University, Ban says U.N. ready to build a better future for all (U.N. News Centre, 6/27/2015)

U.N. Secretary-General Ban Ki-moon welcomes growing engagement of India, China (NDTV, 6/27/2015)

U.N. Secretary-General Ban Ki-moon speaks at Stanford, celebrates U.N.'s 70th anniversary (Stanford Daily, 6/29/15)

Hoover archival photographs featured at lecture delivered by U.N. Secretary-General Ban Ki-moon (Hoover Institution, 6/29/2015)