APARC's China Program recently hosted Center Fellow Thomas Fingar for the webinar "Was America’s China Policy a Foolish Failure? The Logic and Achievements of Engagement." In this talk, Fingar examines the longtime U.S. strategy of engagement with China as well as the potential shift toward a strategy of decoupling. "Much recent commentary on U.S. relations with China claims that the policy of 'Engagement' was a foolish and failed attempt to transform the People’s Republic into an American style democracy that instead created an authoritarian rival," he says. "This narrative mocks the policies of eight U.S. administrations to justify calls for 'Decoupling' and 'Containment 2.0.'” Fingar argues that the policy of Engagement has been fruitful and that Decoupling is not only inadvisable but also unattainable. Watch:

In 2008, the U.S. National Intelligence Council (NIC) published the fourth installment in its effort to identify “megatrends” likely to shape world events a decade or more into the future. Shorenstein APARC Fellow and China expert Thomas Fingar, the then chairman of the NIC, oversaw that report, Global Trends 2025. The unclassified report uses scenarios to illustrate some of the ways in which the factors driving world events – from climate change to demographic decline to changing geopolitical powers – may interact to generate challenges and opportunities for future decisionmakers. One of these scenarios is the emergence of a global pandemic that bears a chilling resemblance to COVID-19.

We sat down with Fingar for an online conversation about the NIC report and its pandemic scenario, the government action it spurred, the United States’ failed initial response to the COVID-19 outbreak, and the implications of the current crisis for U.S.-China relations. Watch:

Twelve years after its publication, the NIC’s "Potential Emergence of a Global Pandemic" scenario (p. 75) has proven to be woefully accurate:

“The emergence of a novel, highly transmissible, and virulent human respiratory illness for which there are no adequate countermeasures could initiate a global pandemic. If a pandemic disease emerges by 2025, […] it probably will first occur in an area marked by high population density and close association between humans and animals, such as many areas of China and Southeast Asia […] Slow public health response would delay the realization that a highly transmissible pathogen had emerged […] Despite limits imposed on international travel, travelers with mild symptoms or who were asymptomatic could carry the disease to other continents. Waves of new cases would occur every few months. The absence of an effective vaccine and near-universal lack of immunity would render populations vulnerable to infection.”

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It was not a prediction, recalls Fingar, but rather an attempt to urge policymakers to think “beyond tomorrow,” past the end of their administration, and to stimulate strategic thinking about how to reinforce positive trends and change or ameliorate negative ones. If the report and its global pandemic scenario are precise, he notes, it is because the NIC’s effort involved the best specialists within the U.S. intelligence community and engaged numerous and varied groups of non-U.S. Government experts.

Yet the United States has been unprepared for the COVID-19 pandemic and the crisis is now worsening U.S.-China tensions. To address the crisis, however, argues Fingar, both countries must cooperate in the international fora. “Let that be the way that builds towards a better bilateral relationship.”

The Stanford Center at Peking University (SCPKU), the Center on Democracy, Development and the Rule of Law (CDDRL), and the APARC China Program jointly hosted a workshop on China’s Belt and Road Initiative (BRI) in early March. The workshop, held on March 2 and 3, welcomed researchers from around the world with expertise in the Initiative. Unfortunately, because of the rapidly developing health emergency related to the coronavirus, participants from not only China, but also Japan, were prevented from attending. As described by Professor Jean Oi, founding director of SCPKU and the China Program, and Professor Francis Fukuyama, director of CDDRL and the Ford Dorsey Master's in International Policy, who co-chaired the workshop, the meeting aimed to provide a global perspective on the BRI, consolidate knowledge on this opaque topic, and determine the best method and resources for future research.  

The workshop began with presentations from several of the invited guests. Dr. Atif Ansar from the University of Oxford’s Saïd Business School kicked off the first day by describing not only the tremendous opportunity that the BRI presents to developing economies, but also the serious pitfalls that often accompany colossal infrastructure projects. Pointing out the poor returns on investment of mega infrastructure projects, Ansar examined the frequest cost and schedule overruns, random disasters, and environmental degradation that outweigh the minimal benefits that they generally yield. China’s own track record from domestic infrastructure projects does little to mitigate fear of these risks, Ansar claimed. In response, he urged professional management of BRI investments, institutional reforms, and intensified deployment of technology in BRI projects. Dr. Ansar was followed by Dr. Xue Gong of the S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore. Dr. Gong’s analysis centered on the extent to which China’s geopolitical motivations influenced its outward foreign direct investments (OFDI). Although her research was still in the early stages, her empirical analysis of China’s OFDI inflows into fifty BRI recipient countries from 2007-2018 nevertheless revealed that geopolitical factors often outweigh economic factors when it comes to China’s OFDI destinations.

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Professor Curtis J. Milhaupt and Scholar-in-Residence Jeffrey Ball, both at Stanford Law School, followed with individual presentations on the role of State-Owned Enterprises (SOEs) in the BRI and the emissions impact of the BRI on climate change, respectively. Professor Milhaupt  characterized Chinese SOEs as both geopolitical and commercial actors, simultaneously charged with implementing Party policies and attaining corporate profits. Chinese SOEs are major undertakers of significant overseas BRI projects, acting not only as builders but also as investors, partners, and operators. This situation, Milhaupt asserted, carries significant risks for SOEs because these megaprojects often provide dismal returns, have high default rates, and can trigger political backlash in their localities. Milhaupt highlighted the importance of gathering firm-level data on businesses actually engaged in BRI projects to better infer geostrategic, financial, or other motivations. Jeffrey Ball turned the discussion to carbon emissions from BRI projects and presented preliminary findings from his four-country case studies. He concluded that, on aggregate, the emissions impact of the BRI is still “more brown than green.” Twenty-eight percent of global carbon emissions may be accounted for by BRI projects, Ball asserted, underscoring the importance of the BRI to the future of global climate change.

The day concluded with presentations by  Michael Bennon, Managing Director at the Stanford Global Projects Center, and Professor David M. Lampton, Oksenberg-Rohlen Fellow at the Freeman Spogli Institute for International Studies. Bennon first presented findings from two empirical case studies of BRI projects and then went on to describe how the BRI is now practically the “only game in town” for infrastructure funding for developing countries. Lengthy environmental review processes at Western multilateral banks have turned the World Bank, for example, from a lending bank into a “knowledge bank,” he argued. He also highlighted that, in general, economic returns on BRI projects for China are very poor, even though recipient countries may accrue macroeconomic benefits from these projects. Finally, Professor Lampton turned the discussion back to Southeast Asia, where China is currently undertaking massive cross-border high-speed rail projects through eight ASEAN countries. He described how each host country had varying capacity to negotiate against its giant neighbor, and how the sequential implementation of these cross-border rail projects also had varying impacts on the negotiating positions of these host countries. BRI played out differently in each country, in other words, eliciting different reactions, push-backs and negotiated terms.

The second day of the workshop was dedicated to working toward a collaborative approach to future BRI research. The group discussed the key gaps in the existing research, including how to know what China’s true intentions are, how to measure those intentions, who the main players and their interests in both China and the host countries are, and even what the BRI is, exactly. Some cautioned that high-profile projects may not be representative of the whole. Participants brainstormed about existing and future sources of data, and stressed the importance of diversifying studies and seeking empirical evidence.

Living and studying all over East Asia, some of Hannah Kim’s most favorite activities were to meet and talk to diverse people from different backgrounds. Those conversations sparked her interest in how public opinion and perceptions of democracy differ across societies — a question that turned into the focus of her doctoral dissertation, which she completed last year at the University of California, Irvine.

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We sat down with Hannah to talk about her current work and her plans for future projects.

Q: As you’ve been here at APARC researching your book, what kinds of relationships have you found between the middle classes of East Asia and their perceptions of a democratic society?

Middle-class groups in many East Asian countries are significantly different than those in other regions because they are newer and smaller. They also tend to be much more dependent on the state, and this state dependency has led to fundamentally different views of democracy than we see in other places.

Modernization theory — which is one of the most prominent theories in comparative politics — contends that higher levels of economic growth lead to a rise of a middle class. This middle class then becomes a driving force for democracy. In East Asian countries, however, state-led economic growth played a central role in the creation and development of middle-class groups, which fostered a dependent and mutually supportive relationship between middle-class groups and the state. This suggests that middle-class groups may prefer a stronger role of the state and be less likely to support liberal democracy relative to other groups.

Q: What research findings surprised you about the relationship between the middle class and democracy?

There have been a number of unexpected results. For one, middle-class East Asians are more likely to support good governance ahead of freedom and liberty, which is often reversed among middle-class groups in Western democracies. I’ve found that many East Asian middle-class citizens view democracy more illiberally and prefer a political system that has a mix of democratic and autocratic properties — a hybrid regime — rather than a liberal democracy.

For example, the most recent wave of the World Values Survey (2010-14) shows that 62% of Taiwanese respondents, 31% of Chinese respondents, 29% of Japanese respondents, and 49% of South Korean respondents stated that it is “Very good” or “Fairly good” to have a strong leader who does not have to bother with parliament and elections. This indicates a culture of implicit support for an authoritarian-like leader. Recent studies also show that there is a negative correlation between the middle class and support for democracy in China.

Q: You have also been doing work that looks at democratization and gender in East Asia. How do gender, gender roles, and traditional culture impact the progress and perception of democratization?

Even though there are three full-fledged democracies in East Asia – namely, Japan, South Korea, and Taiwan – their citizens’ views on gender equality remain far from liberal. A majority of respondents to surveys in those democracies support the ideas that men should have more employment and education opportunities than women, and that men make better political and business leaders than women. This may be in part due to the historically patriarchal culture that continues to legitimize these views. However, in my study, I suggest that culturally democratic citizens are more likely to break away from these traditional patriarchal norms and challenge gendered practices within these societies. Increasing democratic citizenship, therefore, may enhance support for gender equality and other liberal values.

Q: What pressing challenges do you see facing Asia’s democratic societies?

The last ten years have been described as a decade of decline for liberal democracies worldwide and public opinion data further shows that support for democracy is rapidly declining. East Asian democracies, many of which democratized during the so-called second and third waves of that trend in the late twentieth century, are no exception to this democratic recession. While there are many institutional limitations, the biggest challenge for East Asian democracies may come from authoritarian legacies that encourage middle-class citizens to support traditional values that often go against liberal democracy. While East Asian democracies may not necessarily evolve towards autocracy, it may be a while before the middle class and the general public in East Asian countries fully support liberal democratic values and help democracies overcome this democratic recession.

Q: What’s next on your research agenda?

After my fellowship with APARC concludes, I will be moving to Omaha, Nebraska, where I’ll be working as an assistant professor of political science at the University of Nebraska. I’m scheduled to teach Asian politics there this coming fall, which I am really looking forward to. My immediate research goal is to continue working on my book, but I would also like to start pursuing research on gender and political behavior in South Korea.

Using a dynamic microsimulation model, a research team, including APARC Deputy Director and Asia Health Policy Program Director Karen Eggleston, shows that there are differentially positive health gains of smoking reduction among subgroups of smokers in South Korea, Singapore, and the United States.

Tobacco use is responsible for the death of approximately eight million people worldwide, estimates the World Health Organization, and countries are increasingly making tobacco control a priority. Indeed the relationship between smoking and the burden of chronic diseases such as cancer, lung disease, and heart disease, and, in turn, premature mortality, is well documented. Yet little is known about the health effects of smoking interventions among subgroups of smokers.

Do interventions targeted at heavy smokers relative to light smokers lead to disproportionately larger improvements in life expectancy and prevalence of chronic diseases? And how do these effects vary across populations? In today’s rapidly aging world, it is crucial to understand the potential health gains resulting from interventions to reduce smoking, a leading preventable risk factor for healthy aging.

That’s why a research team, including APARC Deputy Director and Asia Health Policy Program Director Karen Eggleston as well as Stanford Health Policy faculty member Jay Bhattacharya, set out to examine the health effects of smoking reduction. To do so, the team simulated an elimination of smoking among subgroups of smokers in South Korea, Singapore, and the United States.

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The team’s findings, discussed in a new paper published by the journal Health Economics, show that smoking reduction can achieve significant improvements in lifetime health as measured by survival while also reducing the prevalence of major chronic diseases, though the effects are heterogeneous. Whereas interventions in both subgroups and in all three countries led to an increased life expectancy and decreased prevalence of chronic diseases, the life-extension benefits were greatest – 2.5 to 3.7 years – for those who would otherwise have been heavy smokers, compared with gains of 0.2 to 1.5 years among light smokers.

The team developed a dynamic microsimulation model to estimate the health gains of reducing smoking among heavy smokers and light smokers. Microsimulation models are powerful tools for assessing the value of health promotion: they model individual health trajectories while accounting for competing risks, thus providing valuable information about the impact of interventions and how they may interact with the changing demographics and socioeconomic profile of a population to determine future health. The team’s study applied microsimulation models tailored to the demographic and epidemiological context in the three countries, then compared the gains in survival and reduction in chronic disease prevalence from a given reduction in smoking and how these impacts vary depending on initial smoking intensity.

The team’s findings indicate that there are differentially positive health effects from smoking reduction. The life‐year gain among heavy smokers quitting well exceeds that of light smokers quitting in each country, but the magnitudes differ substantially: 11.2 times for South Korea, 6.8 times for Singapore, and 1.7 times for the United States. The lower life expectancy among Americans is related to the greater extent in which they suffer from risk factors, such as obesity, relative to the Asian counterparts in the study.

The findings illustrate how smoking interventions may have significant economic and social benefits, especially for life extension, that vary across countries. They are particularly important for aging societies that are concerned about the sustainability of their health insurance systems in the face of increasing burden of chronic disease.