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Edmund J. Malesky will argue that openness to foreign investment can have differential effects on corruption, even within the same country and under the same domestic institutions over time. Rather than interpreting bribes solely as a coercive “tax” imposed on business activities, he allows for the possibility that firms may themselves be complicit in using bribes to enter protected sectors or gain access to lucrative procurement contracts.  The propensity to bribe across sectors should vary with expected profitability related to investment restrictions. Thus, the linkage of foreign investment to corruption should increase dramatically as firms seek to enter restricted and uncompetitive sectors that offer higher rents. Malesky demonstrates this effect using a nationally representative survey of 10,000 foreign and domestic businesses in Vietnam. He also shows how the impact of domestic reforms and economic openness is affected by policies that restrict competition by limiting entry into a given sector.

Edmund Malesky is an associate professor of political science at the Graduate School of International Relations and Pacific Studies at the University of California, San Diego. He has published in leading political science and economic journals, including the American Political Science Review and the Journal of Politics, and has been awarded the Harvard Academy Fellowship and Gabriel Almond Award for best dissertation in comparative politics. Malesky serves as the lead researcher for the Vietnam Provincial Competitiveness Index and Cambodian Business Environment Scorecard.

For more information please see the event web page.

Graham Stuart Lounge

Edmund J. Malesky Associate Professor, Graduate School of International Relations and Pacific Studies Speaker the University of California, San Diego
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The 11th Congress of the Communist Party of Vietnam was significant in several respects. It placed diplomacy in the forefront of Vietnam’s efforts to maintain peace, stability, and national security, including naming more diplomats as full members of the Central Standing Committee. For the first time, the Party officially identified protecting national interest as the top priority of Vietnam’s foreign policy. The Party continued to push for broader horizons in policymaking to facilitate Vietnam’s integration in the larger world. The Party also agreed that Vietnam should anchor itself to ASEAN and promote its relations with China and the United States. Prof. Tuan will discuss these and other aspects and implications of Vietnam’s foreign policy.

Ta Minh Tuan is a member of Vietnam’s Council for Security Cooperation in the Asia Pacific (CSCAP Vietnam), CSCAP’s Study Group on Countering the Proliferation of Weapons of Mass Destruction in the Asia Pacific, and Pacific Forum CSIS’s Young Leaders Program. He has been a visiting fellow at the Brookings Institution and the University of South Carolina. His degrees are from the Polish Academy of Sciences’s Institute of Political Studies (PhD), Mahatma Gandhi University’s School of International Relations (MA), and the Hanoi University of Foreign Studies (BA).

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Ta Minh Tuan Associate Professor of Political Science and Head, Office for Research Project Management Speaker Diplomatic Academy of Vietnam, Hanoi
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The Asia Pacific Observatory (APO) on Health Systems and Policies was established in June 2011. It is a collaborative partnership of interested governments, international agencies, foundations, civil society, and the research community. Modeled on the European Observatory of the same name, the APO has as its main function the collection and analysis of information and research evidence on health care systems, policies, and reforms, with the aim of making this knowledge widely available and easily accessible throughout the Asia Pacific Region; it will also draw cross-country lessons and disseminate these in formats that can be directly used for policymaking.

This presentation will trace the history underlying the creation of the Observatory and indicate its objectives, organizational structure, and proposed modes of operation. It will describe the challenges of attempting to bring a wide range of stakeholders together in support of a regional collaborative research effort. It will also touch on ways that research entities located outside the Asia Pacific region might interact with the APO.

L. Richard Meyers was employed by the World Bank for two decades managing teams that carried out World Bank health sector projects and analytical work in a number of countries in East Asia. He directed a team that produced the first comprehensive health sector review for Vietnam, as well as the first Vietnam National Health Survey.  He also led a team that produced the most comprehensive and empirically-based external analysis to date of the rural health sector in China. More recently he has worked with the European Health Observatory, the Asian Development Bank, the World Bank, the WHO Western Pacific and South Asia regional offices, and other stakeholders to facilitate the creation of the Asia Pacific Observatory.

Philippines Conference Room

L. Richard Meyers Consultant Speaker World Bank
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Why do some countries in the developing world achieve growth with equity, while others do not? If democracy is the supposed panacea for the developing world, why have Southeast Asian democracies had such uneven results? In exploring these questions, political scientist Erik Martinez Kuhonta argues that the realization of equitable development hinges heavily on strong institutions, particularly institutionalized political parties and cohesive interventionist states, and on moderate policy and ideology.

"This boldly comparative book will be widely read, widely assigned, and widely debated in the field. There are few comparable works out there. Kuhonta's book should be required reading for those interested in development, political institutions, state building, social welfare policies, and Southeast Asia."

—Allen Hicken, University of Michigan

The Institutional Imperative is framed as a structured and focused comparative-historical analysis of the politics of inequality in Malaysia and Thailand, but also includes comparisons with the Philippines and Vietnam. It shows how Malaysia and Vietnam have had the requisite institutional capacity and power to advance equitable development, while Thailand and the Philippines, because of weaker institutions, have not achieved the same levels of success. At its core, the book makes a forceful claim for the need for institutional power and institutional capacity to alleviate structural inequalities.

This book is part of a the Studies of the Walter H. Shorenstein Asia-Pacific Research Center series at Stanford University Press.

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Japan leads, chased closely by South Korea, with China, on a vastly larger scale, not far behind. Not as mercantilist development states nor as threats to America's high-tech industry, but rather as the world’s most rapidly aging societies.  

A wave of unprecedented demographic change is sweeping across East Asia, the forefront of a phenomenon of longer life expectancy and declining birthrates that together yield a striking rate of aging. Japan already confronts a shrinking population. Korea is graying even more quickly. And although China is projected to grow for another couple of decades, demographic change races against economic development. Could China become the first country to grow old before growing rich? In Southeast Asia, Singapore also is confronting a declining birthrate and an aging society. Increasingly, Asia’s aging countries look to its younger societies, such as Vietnam, Indonesia, and India, as sources of migrant labor and even wives. Those countries in turn face different demographic challenges, such as how to educate their youth for global competition.

The third Stanford Kyoto Trans-Asian Dialogue will focus on demographic change in the region and its implications across a wide range of areas, including economies, societies, and security. Asia’s experience offers both lessons and warnings for North America and Europe, which are facing similar problems. Questions to be addressed include:

  • What are the inter-relationships between population aging and key macroeconomic variables such as economic growth, savings rates, and public and private intergenerational transfers?
  • How and why do policy responses to population aging differ in Japan, South Korea, and across different regions of China?
  • What are the effects of demographic change on national institutions such as employment practices, pension and welfare systems, and financial systems?
  • What policies can or should be pursued to influence future outcomes?
  • How will demographic change affect security in the Asia-Pacific region?
  • How have patterns of migration impacted society and culture in East Asia, in comparative perspective?
  • How will demographic change influence the movement of people across the region and the prevalence of multicultural families?
  • What lessons can Asia, the United States, and Europe learn from each other to improve the policy response to population aging?

The Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) established the Stanford Kyoto Trans-Asian Dialogue in 2009 to facilitate conversation about current Asia-Pacific issues with far-reaching global implications. Scholars from Stanford University and various Asian countries start each session of the two-day event with stimulating, brief presentations, which are followed by engaging, off-the-record discussion. Each Dialogue closes with a public symposium and reception, and a final report is published on the Shorenstein APARC website.

Previous Dialogues have brought together a diverse range of experts and opinion leaders from Japan, South Korea, China, Vietnam, Thailand, Indonesia, Singapore, India, Australia, and the United States. The first Dialogue examined the global environmental and economic impacts of energy usage in Asia and the United States. It also explored the challenges posed by competition for resources and the possibilities for cooperating to develop sustainable forms of energy and better consumption practices. Last year’s Dialogue considered the question of building an East Asian Community similar in concept to the European Union. Participants discussed existing organizations, such as ASEAN and APEC, and the economic, policy, and security implications of creating an integrated East Asia regional structure.

The annual Stanford Kyoto Trans-Asian Dialogue is made possible through the generosity of the City of Kyoto, the Freeman Spogli Institute for International Studies at Stanford University, and Yumi and Yasunori Kaneko.

Kyoto International Community House Event Hall
2-1 Torii-cho, Awataguchi,
Sakyo-ku Kyoto, 606-8536
JAPAN

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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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China eyes natural resource deposits in the South China Sea to meet its significant energy needs, creating friction between itself, the countries in the region, and the United States, which could be called upon to mediate. Southeast Asia Forum director Donald K. Emmerson and former Shorenstein Fellow John Ciorciari consider the economic and diplomatic aspects of China’s sovereignty claims in a recent flare-up of this ongoing dispute.
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A row of wind turbines in the Philippines faces the South China Sea -- a striking contrast to the race for underwater natural resources.
Paolo Dala
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Economic development is a dynamic process in East and Southeast Asia, and one that is inextricably tied to policy.

Two new groundbreaking political economy publications are now available from the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC), and a third is forthcoming in August.

Going Private in China: The Politics of Corporate Restructuring and System Reform, addresses many key reform questions faced over the past two decades by China, as well as by Japan and South Korea. Edited by Stanford China Program director Jean C. Oi, this volume demonstrates the commonalities between three seemingly disparate political economies. In addition, it sheds important new light on China's corporate restructuring and also offers new perspectives on how we think about the process of institutional change.

In Spending Without Taxation: FILP and the Politics of Public Finance in Japan, former Shorenstein Fellow Gene Park demonstrates how the Japanese government established and mobilized the Fiscal Investment Loan Program (FILP), which drew on postal savings, public pensions, and other funds to pay for its priorities and reduce demands on the budget. Referring to FILP as a "distinctive postwar political bargain," he posits that it has had lasting political and economic effects. Park's book not only provides a close examination of FILP, but it also resolves key debates in Japanese politics and demonstrates that governments can finance their activities through financial mechanisms to allocate credit and investment.

The Institutional Imperative: The Politics of Equitable Development in Southeast Asia, by former Shorenstein Fellow Erik Kuhonta, argues that the realization of equitable development hinges heavily on strong institutions and on moderate policy and ideology. He does so by exploring how Malaysia and Vietnam have had the requisite institutional capacity and power to advance equitable development, while Thailand and the Philippines, because of weaker institutions, have not achieved the same levels of success.

More detailed descriptions about these insightful volumes, as well as reviews and purchasing information, are available in the publications section of the Shorenstein APARC website.

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Today is the last day of the Year of the Tiger in Vietnam. Tomorrow is the Year of the Cat (while in China it is Year of the Rabbit).

There was so much talk about Vietnam being an Asian Tiger in the past. Now, there is a growing concern about the country getting into the "middle-income trap." There is a real risk that the country might turn out to be just a cat and not a tiger.

The Party is aware of that threat and is struggling to find the right path to accelerated prosperity for the people while maintaining political monopoly.

This talk will be from the perspective of a man on the ground and will try to separate the smoke from the fire and find the heat.

Mr. Kien Duk Trung Pham is currently the Chairman of Red Bricks Group, a private investment firm. He is the founder of the Vietnam Foundation and the Vice Chairman of the VietNamNet Media Group, the leading multi-channel media company in Vietnam. Prior to VietNamNet he was the founding executive director of the Vietnam Education Foundation.

In business, Mr. Pham was a market development executive in Fortune 500 companies as well as an entrepreneur in technology and consulting startups. In government, he served in the executive branch under Presidents Reagan and Bush, as well as in the U.S. Senate. He has established nonprofit foundations to assist college students, orphans, and the handicapped in Vietnam. Mr. Pham is publicly recognized for his leadership and management abilities.

Mr. Pham is active in international affairs. In 1986, he was chosen a Young Leader by the American Council on Germany, and in 1992 a U.S.-Japan Leadership Fellow by the Japan Society. In 1993, he was elected as a term-member of the Council on Foreign Relations and a participant in the American Assembly. Mr. Pham was the founder and chairman of the Vietnam Forum Foundation, a U.S. nonprofit organization that provides college scholarships, schools, and orphanage support in Vietnam. He was also a Board member of the Vietnam Assistance for the Handicapped, a leading humanitarian program to help war victims. In 1996, Mr. Pham was a recipient of the "Never Fear, Never Quit" Award.

Mr. Pham grew up in Saigon, Vietnam. In 1977, at the age of 19, he led his family on a high sea escape and came to the United States where they settled in Colorado. Mr. Pham became a factory worker, learned English, and later attended college on scholarship. He received a BS in marketing and international business from the University of Colorado at Boulder, and won a scholarship to study in England. His graduate degrees, earned concurrently at Stanford University, include an MBA in international and organizational management, an MA in international economics, and a special diploma in public policy management. In 1990, Stanford University named Mr. Pham among of the "Most Outstanding Alumni" in the school's 100 years of history. Mr. Pham is former White House Fellow and a recipient an honorary JD degree from Pfeiffer University.

Daniel and Nancy Okimoto Conference Room

Pham Duc Trung Kien Executive Chairman Speaker Red Bricks Group (RBG)
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Numerous countries have transitioned away from state socialism since the fall of Communism in the Soviet Union and its satellite states two decades ago. At the core of this phenomenon, suggests Andrew G. Walder, is “a radical change in the definition, enforcement, and allocation of various rights over property.” In the chapter “Transitions from State Socialism: A Property Rights Perspective” (The Sociology of Economic Life, 2011), Walder examines property rights changes within the context of the transition from state socialism in Hungary, China, and Vietnam.

Published by Westview Press in January 2011, The Sociology of Economic Life was edited by sociology professors Mark Granovetter of Stanford University and Richard Swedberg of Cornell University.

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