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Denise Masumoto
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From major financial organizations to the acoustics of Bing Concert Hall – Kenji Yanada has a wide range of interests, which he has been able to actively pursue here at Stanford. He is a fellow in the Corporate Affiliates Program at the Shorenstein Asia-Pacific Research Center, visiting for a year from Japan’s Ministry of Finance.

Kenji Yanada is pictured at the concert with his wife Tetsuko and Denise Masumoto, Corporate Affiliates Program manager.

Prior to joining Shorenstein APARC, Yanada worked for nearly 30 years in the banking and financial industry. Most recently, he was responsible for supervising financial institutions in Japan’s Financial Services Agency, working to identify and overcome global risk.

As a government official seeking to improve monitoring of the international financial system, Yanada came to Stanford to engage with people from various organizations and countries who inspire an exchange of new ideas and may help inform his approach.

Working with faculty advisor Takeo Hoshi, Yanada has focused his research on the “Heightening of Banking Regulations and Banking Supervision in the U.S.” As financial institutions become more interconnected, he has found that is it ever more important to require a combination of both regulation and monitoring of the financial situation among nations.

“Being a fellow in the Corporate Affiliates Program has allowed me to discuss these issues with various experts and given me the chance to view things from different angles. With a broader perspective, I hope to help stimulate change and to make a contribution to maintain the stability of the financial system in Japan,” said Yanada. 

Yanada said he appreciates interacting with open-minded people, learning different perspectives, and especially, enjoying California’s calm weather.  Earlier this year, he participated in a workshop at the Stanford d.school. This experience taught him that even if an idea seems out of reach, by working together and sharing knowledge, anything is possible.  

Yanada has also continued his passion for singing. This winter, he became a member of the Stanford Symphonic Chorus. Yanada twice performed Giuseppe Verdi’s Messa Da Requiem at Bing Concert Hall and Memorial Church at Stanford. He is very grateful to the warm-hearted people who supported him throughout this incredible experience. 

With one quarter remaining, Yanada continues to work on his research and to prepare for his final presentation in May 2014. In between his research, auditing classes and interviewing experts in the field, he hopes to create even more memorable experiences, including another performance with the Stanford Symphonic Chorus this spring. 

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Asked to summarize his biography and career, Donald K. Emmerson notes the legacy of an itinerant childhood: his curiosity about the world and his relish of difference, variety and surprise. A well-respected Southeast Asia scholar at Stanford since 1999, he admits to a contrarian streak and corresponding regard for Socratic discourse. His publications in 2014 include essays on epistemology, one forthcoming in Pacific Affairs, the other in Producing Indonesia: The State of the Field of Indonesian Studies.

Emmerson is a senior fellow emeritus at the Freeman Spogli Institute for International Studies (FSI), an affiliated faculty member of the Center on Democracy, Development and the Rule of Law, an affiliated scholar in the Abbasi Program in Islamic Studies, and director of the Southeast Asia Program at the Shorenstein Asia-Pacific Research Center. Recently he spoke with Shorenstein APARC about his life and career within and beyond academe.

Your father was a U.S. Foreign Service Officer. Did that background affect your professional life?

Indeed it did. Thanks to my dad’s career, I grew up all over the world. We changed countries every two years. I was born in Japan, spent most of my childhood in Peru, the USSR, Pakistan, India and Lebanon, lived for various lengths of time in France, Nigeria, Southern Rhodesia (now Zimbabwe) and the Netherlands, and traveled extensively in other countries. Constantly changing places fostered an appetite for novelty and surprise. Rotating through different cultures, languages, and schools bred empathy and curiosity. The vulnerability and ignorance of a newly arrived stranger gave rise to the pleasure of asking questions and, later, questioning the answers. Now I encourage my students to enjoy and learn from their own encounters with what is unfamiliar, in homework and fieldwork alike. 

Were you always focused on Southeast Asia? 

No. I had visited Southeast Asia earlier, but a fortuitous failure in grad school play a key role in my decision to concentrate on Southeast Asia. At Yale I planned a dissertation on African nationalism. I applied for fieldwork support to every funding source I could think of, but all of the envelopes I received in reply were thin. Fortunately, I had already developed an interest in Indonesia, and was offered last-minute funding from Yale to begin learning Indonesian. Two years of fieldwork in Jakarta yielded a dissertation that became my first book, Indonesia’s Elite: Political Culture and Cultural Politics. I sometimes think I should reimburse the African Studies Council for covering my tuition at Yale – doubtless among the worst investments they ever made. 

Indonesia stimulated my curiosity in several directions. Living in an archipelago led me to maritime studies and to writing on the rivalries in the South China Sea. Fieldwork among Madurese fishermen inspired Rethinking Artisanal Fisheries Development: Western Concepts, Asian Experiences. Experiences with Islam in Indonesia and Malaysia channeled my earlier impressions of Muslim societies into scholarship and motivated a debate with an anthropologist in the book Islamism: Contested Perspectives on Political Islam

What led you to Stanford?

In the early 1980s, I took two years of leave from the University of Wisconsin-Madison to become a visiting scholar at Stanford, and later I returned to The Farm for shorter periods. At Stanford I enjoyed gaining fresh perspectives from colleagues in the wider contexts of East Asia and the Asia-Pacific region. In 1999, I accepted an appointment as a senior fellow in FSI to start and run a program on Southeast Asia at Stanford with initial support from the Luce Foundation.

As a fellow, most of your time is focused on research, but you also proctor a fellowship program and have led student trips overseas. How have you found the experience advising younger scholars?

In 2006, I took a talented and motivated group of Stanford undergrads to Singapore for a Bing Overseas Seminar. I turned them loose to conduct original field research in the city-state, including focusing on sensitive topics such as Singapore’s use of laws and courts to punish political opposition. Despite the critical nature of some of their findings, a selection was published in a student journal at the National University of Singapore (NUS). NUS then sent a contingent of its own students to Stanford for a research seminar that I was pleased to host. I encouraged the NUS students to break out of the Stanford “bubble” and include in their projects not only the accomplishments of Silicon Valley but its problems as well, including those evident in East Palo Alto.

That exchange also helped lay the groundwork for an endowment whereby NUS and Stanford annually and jointly select a deserving applicant to receive the Lee Kong China NUS-Stanford Distinguished Fellowship on Contemporary Southeast Asia. The 2014 recipient is Lee Jones, a scholar from the University of London who will write on regional efforts to combat non-traditional security threats such as air pollution, money laundering and pandemic disease.

Where does the American “pivot to Asia” now stand, and how does it inform your work? 

Events in Iran, Iraq, Afghanistan, Syria and now in Crimea as well, have pulled American attention away from Southeast Asia. Yet the reasons for priority interest in the region have not gone away. East Asia remains the planet’s most consequential zone of economic growth. No other region is more directly exposed to the potentially clashing interests and actions of the world’s major states – China, Japan, India and the United States. The eleven countries of Southeast Asia – 630 million people – could become a concourse for peaceful trans-Pacific cooperation, or the locus of a new Sino-American cold war. It is in that hopeful yet risky context that I am presently researching China’s relations with Southeast Asia, especially regarding the South China Sea, and taking part in exchanges between Stanford scholars and our counterparts in Southeast Asia and China. 

Tell us something we don’t know about you.

Okay. Here are three instructive failures I experienced in 1999, the year I joined the Stanford faculty. I was evacuated from East Timor, along with other international observers, to escape massive violence by pro-Indonesian vigilantes bent on punishing the population for voting for independence. The press pass around my neck failed to protect me from the tear gas used to disperse demonstrators at that year’s meeting of the World Trade Organization – the “Battle of Seattle.” And in North Carolina in semifinal competition at the 1999 National Poetry Slam, performing as Mel Koronelos, I went down to well-deserved defeat at the hands of a terrific black rapper named DC Renegade, whose skit included the imaginary machine-gunning of Mel himself, who enjoyed toppling backward to complete the scene. 

The Faculty Spotlight Q&A series highlights a different faculty member at Shorenstein APARC each month giving a personal look at his or her teaching approaches and outlook on related topics and upcoming activities.

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Takeo Hoshi, a senior fellow at FSI in residence at Shorenstein APARC, analyzes Japan’s fiscal condition and develops future tax and budget-tightening alternatives in a new journal article. He argues Japan’s situation is not sustainable, suggesting fiscal reform is necessary in order to maintain current living standards and public services.
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Recent public opinion polls in China and Japan expose a “striking degree of hostility,” highlighting a clash in narratives between the two countries. Phillip Lipscy says in an op-ed in AlJazeera America that Japan’s conservatives are “misguided in seeking to reinvigorate their country by revising history,” and instead should rally the country “around dreams of the future.”
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In a March 22 interview with the Seoul Shinmun newspaper, KSP associate director David Straub discussed the U.S. role in bringing together South Korean President Park Geun-hye and Japanese Prime Minister Abe in a trilateral summit with President Obama to address the North Korea problem.

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U.S. President Barack Obama holds a tri-lateral meeting with President Park Geun-hye of the South Korea (L) and Prime Minister Shinzo Abe of Japan (R) after the Nuclear Security Summit in The Hague March 25, 2014.
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In this session of the Shorenstein APARC Corporate Affiliate Visiting Fellows Research Presentations, the following will be presented:

Guangmu Liu"International Strategy of Drilling Enterprise of China National Petroleum Corporation"

Keiichi Uruga, "Industrial Policy Under the Default of Japanese Government Bond"

Tun Wang"The Financial Market Trading Business in U.S. Banks"

Kenji Yanada"Heightening of Banking Regulations and Banking Supervision"

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Corporate Affiliate Visiting Fellow, 2013-14
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Guangmu Liu is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2013-14.  He has worked at BoHai Drilling Company (BHDC), a subsidiary company of China National Petroleum Company (CNPC) for 22 years.  His positions included the vice manager of the second drilling company and general manager of the number one drilling company, and most recently, he was responsible for the overseas market.  Currently, he serves as the assistant president of BHDC.  Liu received his bachelor's degree from the University of Geology of Chengdu and his master's degree in the oil and gas field from JiangHan Petroleum University.

Guangmu Liu PetroChina Speaker
Keiichi Uruga Ministry of Economy, Trade & Industry, Japan Speaker
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Tun Wang is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2013-14.  Wang has worked at the Industrial and Commercial Bank of China (ICBC) for 17 years.  Currently, he is the deputy head of the Global Market Department in the head office in Beijing.  He received his bachelor's degree in Electronics and IT Systems from Ocean University of China and his master's degree in Finance from the Graduate School of People's Bank of China. His work experience and research activities focus on financial market trading business.

Tun Wang Industrial and Commercial Bank of China Speaker
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Kenji Yanada is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2013-14.  Prior to joining Shorenstein APARC, he started his career in 1984 as a banker for Fuji Bank (currently Mizuho Bank).  After 20 years of experience as a banker, Yanada served as deputy director at the Government of Japan's Financial Services Agency (FSA), where he was in charge of supervising banks and analyzing for financial institutions.  Yanada graduated from Keio University with a bachelor's degree in economics.

Kenji Yanada Ministry of Finance, Japan Speaker
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Japan has the highest debt to GDP ratio among advanced countries, and many studies find that the current fiscal regime of Japan is not sustainable. Yet, the Japanese government bond continues to enjoy low and stable interest rates. The most plausible explanation for such an apparent anomaly is that the bonds are predominantly held by the Japanese residents, who are willing to absorb increasing amount of Japanese Government Bonds (JGB) without requiring high yields. Even if the Japanese residents continue to invest their new saving into the government bonds, however, Japan's fiscal situation is not sustainable, which this paper shows through simulations under various scenarios. In all of the scenarios that assume the fiscal policy stance of the Japanese government does not change in the future, we find that the amount of government debt will exceed the private sector financial assets available for the government debt purchase in the next 10 years or so. The paper also shows that sufficiently large tax increases and/or expenditure cuts in the future would put the government debt on a sustainable path. Thus, if the market believes that Japan will embark on such fiscal consolidation in the next 10 years, at most, the low JGB yields are justifiable. If and when the expectation changes, however, a fiscal crisis can be triggered even before the government debt hits the ceiling of the private sector financial assets.

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The US-Japan alliance is the longest, most stable, and most indispensable alliance in the modern history of East Asia.  It has served as the foundation for the region's security structure for well over a half-century.  However, with China's emergence as a rising economic and military power, and given territorial disputes involving China, Japan, and South Korea, and with escalating nationalistic rhetoric and fundamental disagreements over historical interpretations of the Pacific War, the United States and Japan are now facing worrisome tensions and strains that could undermine the solidarity of the US-Japan alliance.  Is the time-tested US-Japan alliance capable of managing both the shifts in the regional balance of power, and the threat of conflict over disputed territories, and the rising thermometer of nationalistic sentiments?   

Ambassador Ryozo Kato, former Ambassador of Japan to the United States from 2001 - 08, the longest tenure of any Japanese Ambassador to the United States, and former Commissioner of Nippon Professional Baseball from 2008 - 2013, has had a long and distinguished career in the Ministry of Foreign Affairs of the Japanese Government. A graduate of Tokyo University Faculty of Law and Yale Law School, he served his country in Australia, Egypt, and the United States, in addition to multiple global assignments within the Ministry in Tokyo.

Positions which Ambassador Kato served in the United States include the Third Secretary in the Embassy (1967–1969), Minister in the Embassy (1987–1990), and Consul-General in San Francisco (1992–1994). He returned to Japan to serve as the Director-General of the Asian Affairs Bureau (1995–1997) and the Deputy-General of the Foreign Policy Bureau (1997–1999). After serving as the Deputy Minister for Foreign Affairs (1999–2001), he was appointed the Ambassador of Japan to the United States of America from 2001 to 2008. He has been recognized and respected on both sides of the Pacific for his outstanding understanding of the issues and his clarity in direction to resolve them.

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Ryozo Kato former Ambassador of Japan to the United States Speaker
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