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Karen Eggleston
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Can social, economic, and policy changes turn a period of growing old-age dependency into one of positive opportunity and growth in China? Qiong Zhang and Asia Health Policy Program director Karen Eggleston explore this challenging question in a recent China Brief article. They look back into several decades of China's history and also consider the current demographic picture of one-child families, gender imbalance, declining fertility rates, and a healthy and prosperous aging population.

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China is now predominantly a country with one-child families.
Stefan Lins
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More than six decades after the end of World War II, the Japanese government has yet to return an estimated ¥278 million worth of unpaid financial assets owed to Asian victims of forced mobilization for the war effort. During the Allied Occupation of Japan, American authorities directed Japanese officials to deposit these assets in the Bank of Japan for eventual restitution, setting up a custody account in 1946 and a foreign creditor’s account in 1949. However, the outbreak of the Korean War destroyed any chance of restitution, as the U.S. preoccupation over the cold war conflict effectively froze the unpaid assets that still remain in the Bank of Japan. Clarifying the historical record of American involvement in managing these accounts can contribute towards a U.S.-mediated effort to reach regional reconciliation between Japan and its neighbors in Northeast Asia.

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The Journal of Northeast Asian History
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Matthew Augustine
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This paper adopts a unified approach to an understanding of the development processes of the East Asian economies, Chinese, Japanese and South Korean, in terms of common five phases starting with Malthusian equilibria and extended to forthcoming post-demographic transitions characterized by the shrinkage of the working-age group share in the population. Notwithstanding of the basic commonality, however, there are also marked differences among the East Asian economies in the timing of turning points, durations, and substantive forms of the phases. The paper claims that those differences need to be co-explained by accompanying variations in institutional trajectories. It identifies the Malthusian origins of contrasting political-economic and social-norm characteristics in Chinese and Japanese institutional arrangements and discusses their transformations over successive phases. By delineating institutional characteristics of China and Japan from a game-theoretic perspective, it implicitly challenges prevailing views that contrast the East and the West in such general terms as kinship vs. the third party enforcement of contracts, Confucianism vs. Protestantism, collectivism vs. individualism, authoritarianism vs. liberal democracy, and the like. These dichotomies are too simplistic for explaining the uniqueness, commonality and variations of institutional arrangements in East Asia and their impacts on development processes of respective economies.

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Masahiko Aoki
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This article examines the foreign policy views of the Democratic Party of Japan (DPJ), from the party’s founding through its first year in power.

Main Argument

In 2009 the DPJ came to power in Japan, ending a half-century of conservative rule, with the hope of reshaping the post–Cold War order by rebalancing Japanese policy with a greater emphasis on Asia, inspired by a “new Asianism.” Instead, the party’s first year in office was marked by foreign policy tensions— first with the U.S. over bases in Okinawa, followed by clashes with China in the Senkaku Islands. The DPJ has moved painfully along the learning curve from opposition politics to the realities of governance. On both sides of the Pacific, policymakers now believe the rocky transition has led to a restoration of the postwar consensus, particularly regarding the U.S.-Japan security relationship. But it would be wrong to conclude that DPJ policies, shaped during the party’s formative years by key leaders who remain largely in place, have been simply thrown aside. The new Asianism, which should not be understood as a “pro- China” shift but rather as an effort to manage the rise of China, remains a core identity of the DPJ.

Policy Implications

  • There is a real danger that relations between Japan and the U.S. could slide again into a morass. Avoiding that outcome requires a more serious effort to understand the underlying foreign policy identity of the DPJ and dispel illusions about the nature of change in Japan.
  • Rather than seeing the new Asianism as only a threat, policymakers should view it as an opportunity to jointly, and in concert with South Korea, reshape the security order in Northeast Asia.
  • The DPJ’s interest in an East Asian community potentially challenges China for leadership of future regional structures. The party’s focus on Asia, including ties with countries such as India, Vietnam, South Korea, and Australia, could create a security structure in Asia that can cope with the rise of China’s power.
  • The mechanism and basis for dialogue is weaker than ever in the U.S.- Japan alliance. The relationships built up over decades of rule by the Liberal Democratic Party need to be revitalized to adapt to a new era in Japanese politics.
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The executive summary from the sixth Korea-U.S. West Coast Strategic Forum, held June 2011 at the Walter H. Shorenstein Asia-Pacific Research Center, is now available.

When the semiannual Korea-U.S. West Coast Strategic Forum convened in Seoul in late 2010, North Korea had just attacked South Korea’s Yeonpyeong Island and revealed to American experts its work on a nuclear enrichment facility. These events capped a year that also witnessed the alleged sinking by North Korea of the South Korean naval vessel Cheonan and telling signs of succession preparations underway in North Korea. There have been no major incidents in recent months, but these events and the uncertainty they engendered weigh heavily in the minds of Korea observers and officials in South Korea and the United States.

Views on North Korea’s intentions and domestic political situation are mixed, as are voices on the appropriate U.S. and South Korean response to the events of 2010. These issues fit within a greater discussion of the U.S.-South Korea alliance and the Northeast Asia region wherein China plays a major economic and political role. The most recent Forum, held June 2011 at the Walter. H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC), provided an arena for informed, policy-oriented discussion of major peninsular and regional issues impacting South Korea and the United States.

Twenty subject experts and former senior officials from the United States and South Korea gathered at Stanford University on June 8 for an exchange of views. Amidst a diversity of opinions, collectively the participants expressed a wish for regional stability and the continued need for a strong U.S.-South Korea alliance in order to achieve it. The full executive report of this sixth session of the Forum is now available online, and includes discussion of:

  • The current state of North Korea’s nuclear program and possible scenarios for reducing the risk of proliferation
  • North Korea’s 2010 military actions and increasingly strong rhetoric toward South Korea since, especially in relation to its domestic political situation and the impending succession
  • China’s response to North Korea last year and the complex relationship between the two countries, including Kim Jong Il’s frequent recent visits to China
  • Northeast Asian regional cooperation with a focus on the South Korean-Chinese-Japanese leaders’ summit
  • The factor of U.S., South Korean, and Chinese domestic politics in shaping policy toward North Korea, and the upcoming U.S. and South Korean elections
  • The U.S. security role on the Korean Peninsula and in greater Northeast Asia

The Korea-U.S. West Coast Strategic Forum was established in 2006 by Shorenstein APARC to serve as an ongoing forum for the exchange of views on issues of significance to the U.S.-South Korea alliance. Co-sponsored with the Sejong Institute, a leading South Korean think tank, the Forum alternates between Stanford and Seoul. Summaries and agendas from past Forums are available on the Shorenstein APARC website.

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Dr. Susan Shirk, University of California San Diego
Heather Ahn
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In September, Joon-woo Park, a former senior diplomat from Korea, will join the Korean Studies Program (KSP) at Stanford University’s Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) as the program’s 2011–2012 Koret Fellow.

Park brings over thirty years of foreign policy experience to Stanford, including a deep understanding of the U.S.-Korea relationship, bilateral relations, and major Northeast Asian regional issues. In view of Korea’s increasingly important presence as a global economic and political leader, Park will explore foreign policy strategies for furthering this presence. In addition, he will consider possibilities for increased U.S.-Korea collaboration in their China relations and prospects for East Asian regional integration based on the European Union (EU) model. He will also teach a Center for East Asian Studies course during the winter quarter, entitled Korea's Foreign Policy in Transition.

Park first served overseas in the mid 1980s at the Korean embassy in Washington, DC, during which time he studied at the prestigious Paul H. Nitze School of Advanced International Studies (SAIS) at the Johns Hopkins University. He played a critical role in strengthening Korea’s foreign relations over the years, serving in numerous key posts, including that of ambassador to the EU and Singapore, director-general of the Asian and Pacific Affairs Bureau of the Ministry of Foreign Affairs and Trade (MOFAT), and presidential advisor on foreign affairs. Park worked closely for over twenty years with Ban Ki-moon, the former South Korean diplomat who is now the secretary-general of the United Nations.

In 2010, while serving as ambassador to the EU, Park signed the EU-South Korea Free Trade Agreement (FTA) in Brussels. That same year he also completed the Framework Agreement, strengthening EU-South Korea collaboration on significant global issues, such as human rights, the non-proliferation of nuclear weapons, and climate change. Park’s experience with such major bilateral agreements comes as the proposed Korea-U.S. FTA is nearing ratification.

Park worked for seven years at the Korean embassies in Tokyo and Beijing, gaining significant in-the-field expertise with Northeast Asian regional issues. During his tenure as director-general of MOFAT’s Asian and Pacific Affairs Bureau, he handled sensitive, longstanding issues relating to regional history, such as the depiction of historical events in Japanese textbooks and the treatment of the history of the Goguryeo kingdom in China’s Northeast Project. Such issues of history and memory are among Shorenstein APARC’s current key areas of research.

In addition to his studies at SAIS, Park holds undergraduate and graduate degrees in law, both from Seoul National University. He also served as a Visiting Fellow at Keio University in 1990.

“With South Korea playing an ever larger role not only in East Asia but also globally, we could not be more pleased to have Ambassador Park join us,” says KSP director Gi-Wook Shin. “He is one of his country’s most experienced and capable diplomats, and his presence at Shorenstein APARC will allow us to put a sharper forcus on Korea’s role in world affairs.”

The Koret Fellowship was established in 2008 through the generosity of the Koret Foundation to promote intellectual diversity and breadth in KSP, bringing leading professionals in Asia and the United States to Stanford to study U.S.-Korea relations. The fellows conduct their own research on the bilateral relationship, with an emphasis on contemporary relations, with the broad aim of fostering greater understanding and closer ties between the two countries.

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Joon-woo Park, 2011-2012 Koret Fellow
Courtesy Joon-woo Park
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Since news of the March 11 Great Tohoku Earthquake broke, the Walter H. Shorenstein Asia Pacific Research Center, which has deep, longstanding ties to Japan, has closely followed and responded to this ongoing situation.

“We are still trying to absorb the magnitude and meaning of an earthquake that dwarfed anything seen in Japan—a country that is known for seismic activity—for probably more than a millennium,” said Daniel C. Sneider, associate director for research at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC), while moderating an April 26 seminar co-sponsored by the School of Earth Sciences and the Freeman Spogli Institute for International Studies (FSI).

It is too soon to know the full domestic and global impact of the March 11 Great Tohoku Earthquake and its ensuing tsunami and nuclear accident. Japan is grappling to aid victims, to resolve the danger at the Fukushima nuclear complex, and to move forward with rebuilding amidst political debates and disrupted systems. The global supply chain suffered setbacks of unknown scale, and the disaster-readiness of the world’s other earthquake-prone coastal areas have come under scrutiny. Since news of the earthquake broke, Shorenstein APARC, which has deep, longstanding ties to Japan, has closely followed and responded to this ongoing situation.

During a March 21 CISAC event about the nuclear crisis, Shorenstein APARC director emeritus Daniel I. Okimoto predicted that Japan would weather the blow to its economy and emerge with a “new sense of national mission.” The next week, Michio Harada, Deputy Counsel General at San Francisco’s Consulate General of Japan, joined a Shorenstein APARC discussion before an overflowing audience of concerned students and interested public on the future of Japan’s energy, economy, and politics. Participants agreed that the disaster could have long-term government and policy impacts and that resolving the nuclear situation was the most immediate concern. Despite the challenges, they predicted that Japan would ultimately recover.

The Nuclear Crisis in Japan Seminar (video)
March 21, 2011

During an April 22–23 conference organized by the center’s Stanford Project on Japanese Entrepreneurship (STAJE), a panel of Japan scholars discussed the implications of the disaster for business and research trends. Takeo Hoshi of the University of California, San Diego (UCSD) suggested that the post-disaster redistribution of human capital could potentially accelerate Japan's long-term growth. UCSD scholar and STAJE Academic Advisory Group member Ulrike Schaede offered a detailed analysis of the sometimes hidden but vital place of Japanese firms in the global supply chain and the impact of the earthquake on that role.

Masahiko Aoki, an FSI senior fellow affiliated with Shorenstein APARC, presented at the April 26 seminar moderated by Sneider, the second in a two-day series about the domestic and global impacts of the earthquake. He offered insights into social, economic, and institutional aspects of the March events, noting the element of human error involved in the Fukushima accident. Aoki suggested that the situation presented an opportunity for significant institutional reform in Japan, including a reorganization of the country’s nuclear energy system.

Great Tohoku, Japan Disaster Symposium (video)
April 26, 2011

Above all, Shorenstein APARC believes that Japan will recover, and its connection to its friends, colleagues, and affiliates there remains an important center priority. In addition to frequent telephone and e-mail communication, the center will reconnect in person with a large number of its Japan affiliates in September during the annual Stanford Kyoto Trans-Asian Dialogue (DISCONTINUED).

Media commentary

“Japan earthquake update” (audio)
March 14, 2011
KQED Forum discussion featuring Daniel I. Okimoto

“Quake in Japan shouldn’t hurt U.S. economy” (video)
March 14, 2011
KTVU interview with Robert Eberhart

“Are Japanese news media asking tough questions about nuclear crisis?” (text)
March 16, 2011
About.com article featuring commentary by Daniel C. Sneider

“After the quake: Implications for Japan's political future” (text)
March 18, 2011
National Bureau for Asian Research interview with Daniel C. Sneider

“Ambassador from Silicon Valley negotiates the storm in Japan”
(text no longer available)
March 20, 2011
San Jose Mercury News article with commentary by Daniel C. Sneider

“Japan will rebound, nuclear energy won't diminish, Stanford specialists say” (text)
March 22, 2011
Stanford Report article featuring Daniel I. Okimoto

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Nippon Steel's facility damaged by the March 11 earthquake and tsunami, is seen at a port in Kamaishi. Such damage has impacted the entire global supply chain.
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Even though the last of the remaining aged survivors of the Second World War who fought and suffered through its horrors are now dying out, interpretations of what happened remain politically and morally contested. It is now an old story that West (but not East) Germany admitted the criminal nature of the Nazi regime, apologized, and incorporated recognition of what occurred into its school curriculum. Officially, Japan never has unambiguously done so and Japanese remain deeply divided over their wartime historical record, including its colonial rule in Asia.  

But the story is much more complicated than that because most of the West European countries occupied by Germany during the war only gradually and belatedly admitted that their many collaborators played a crucial role in helping the Germans carry out the Holocaust and fight their war. This was even more the case in East Europe, where many are still evasive about the widespread cooperation with the Nazis that occurred during those years. Poland had to be shocked by Jan Gross’s path-breaking book, Neighbors, before starting to come to grips with the reality of its anti-Semitism, and in many other parts of the region that has not really begun to take place, even now. And in East Asia, the successful channeling of nationalist passions against Japan by the Koreans and Chinese has allowed them to evade the records of their own numerous collaborators.

The importance of World War II memories goes well beyond arguments about guilt or innocence, or concerns about official obscurantism in school textbooks and public avoidance, even denial of the relevance of the topic. The reality is that people have their own version of what happened passed on in family lore, while leaders’ interpretations of their past continue to shape present policy choices. 

There has been much valuable scholarship on how both Europe and East Asia have approached issues related to World War II, but relatively little that directly compares the two areas. By bringing together a small group of the best analysts of the contentious twentieth century in both Europe and East Asia, we hope to deepen the comparative scholarship of how they have shaped their historical memory of the wartime past and how that legacy continues to shape current history in both regions. Each panel focuses on a key question and pairs specialists from Asian and European studies to address that same question.

This conference draws upon the three-year Divided Memories and Reconciliation project of the Walter H. Shorenstein Asia-Pacific Research Center. The papers presented here will be published as an edited volume by a major university press.

Oksenberg Conference Room

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During a talk on May 13, Dr. Robert Kneller, a visiting professor at the Stanford Medical School, examined how national systems of industry-university cooperation impact innovation by comparing the Japanese system with that of the United States. Dr. Kneller has spent 13 years as a professor with the Research Center for Advanced Science and Technology, a major science and engineering research center at the University of Tokyo.

His talk showed how the Japanese system favors exclusive transfer of academic discoveries to established companies. It also examined other factors affecting science and engineering entrepreneurship in Japan. The talk referenced recent research showing that, at least in pharmaceuticals, new companies are more likely than old to pioneer the early development of novel technologies, especially those arising in universities. Japan's experience is relevant to current debates in America related to university management of intellectual property, entrepreneurship by faculty and students, appropriate ways to encourage industry-university collaboration, and the importance of peer review in allocating government university research funding.

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The purpose of this report is to explain the causes of Japan's economic stagnation and identify policy choices that might help restore growth.

The focus is intentionally on longer-term issues, rather than the immediate challenges that are associated with the fallout from the global recession.

It starts its analysis using the neoclassical growth model to describe the post-war Japanese economy. The report also reviews three sets of policy choices that Japan made after the growth slowdown that contributed to economic stagnation. It concludes with a review of several of the major reforms undertaken by the Koizumi administration.

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National Institute for Research Advancement
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Takeo Hoshi
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