This paper examines the impact of government guaranteed small business loans on regional growth. I construct a metro-level panel of the Small Business Administration's guaranteed loans and examine economic growth between 1993 and 2002, across 316 metro areas in the US. A simple OLS regression finds a significant positive relationship between small business loans and regional growth. However, first-difference and instrumental variable regressions that mitigate endogeneity find no significant employment or income growth effects from small business loans. At least from an efficiency perspective, there seems to be no net gains to the regional economy from guaranteed small business loans.
When U.S. Vice President Michael Pence recently met with Japanese Prime Minister Shinzo Abe in Tokyo ahead of the Pyeongchang Winter Olympics, he declared that “The United States-Japan alliance is the cornerstone of peace, prosperity, and freedom in the Indo-Pacific.” Examining U.S.-Japan security relations is a priority of Stanford’s U.S.-Asia Security Initiative (USASI) at the Shorenstein Asia-Pacific Research Center. Just days prior to the Vice President’s remarks, USASI and the Sasakawa Peace Foundation (SPF) co-hosted the 2018 the U.S.-Japan Security and Defense Dialogue Series, where a key theme was coordination and cooperation in the long-standing U.S.-Japan security relationship.
Held in Tokyo from January 31 through February 2, this workshop convened senior Japanese and American policymakers, military leaders, scholars, and regional experts to discuss Japan's security strategy and the alliance between Japan and the United States. It is part of a dialogue series that deepens a discourse on contemporary Asia-Pacific security issues, while building bridges between American and Asian academics, government and military officials, and other defense and security policy specialists. Over the course of three days, core participants held frank discussions with scholars, government officials, and military leaders from both countries about the status of the U.S.-Japan security alliance given the present array of challenges in the region; met in private with key members of the Japanese government and the United States Embassy; and also engaged in candid conversations with military leaders that analyzed Japanese and American combined military planning and operations.
“This year’s workshop was the second meeting of the US-Japan Security and Defense Dialogue Series,” said USASI Director, Ambassador Karl Eikenberry. “It continues to be an excellent venue for the exchange of views between government and military officials, academics, and those with policy experience on U.S.-Japan security relations.”
Workshop Co-Host, Lieutenant General Noboru Yamaguchi, Japanese Ground Self Defense Force (Retired) and Special Advisor to the Sasakawa Peace Foundation, commented: "The issues we discussed were timely and important as the security environment surrounding the alliance is serious and cooperation among Japan, the United States, the Republic of Korea, and other partners, while improving, has a long way to go."
Solidifying the U.S. Alliance with Japan
(From left to right: General Vincent Brooks, Commander, UNC/CFC/USFK; Ambassador David Shear; Ambassador Michael Armacost; and Workshop Co-Hosts Ambassador Karl Eikenberry and Lieutenant General, (Retired) Noboru Yamaguchi)
(From left to right: General Vincent Brooks, Commander, UNC/CFC/USFK; Ambassador David Shear; Ambassador Michael Armacost; and Workshop Co-Hosts Ambassador Karl Eikenberry and Lieutenant General, (Retired) Noboru Yamaguchi)
Day One of the dialogue saw participants engage in a series of frank discussions on many of the challenges facing the U.S.-Japan security alliance, including American and Japanese assessments of security trends in East Asia; training, operations, and strategic planning between the U.S. and Japan armed forces; and security cooperation and instability on the Korean Peninsula.
“The Workshop is an unique opportunity for participants to share their views on political, economic, and security developments in the Indo-Pacific area,” reflected Ambassador Eikenberry. “It provides a way for the United States and Japan to explore ways to achieve the shared goal of maintaining peace and prosperity in the region.”
Visits with U.S. Mission and Japan Foreign Minister
Highlights for Day Two included a meeting between core dialogue participants and key officials at the U.S. Embassy in Japan, including Ambassador William Hagerty. The day ended with a consultation with Japan Foreign Minister Taro Kono. APARC faculty and affiliates at that meeting included Ambassador Eikenberry, Ambassador Michael Armacost, USASI Associate Director Dr. Belinda Yeomans, and visiting scholar Dan Sneider.
“The diversity of the participants made the dialogue especially interesting,” said Ambassador Armacost. “The presentations and comments were both thoughtful and practical.” The frank and open dialogue about the operation of the U.S.-Japan security alliance, noted Sneider, covered topics ranging “from the broad strategic level to the nitty gritty issues of alliance coordination and cooperation. Both Japanese and American participants have found this to be refreshing and revealing.”
Fleet Activities Yokosuka
(Meeting with Commander of the Japanese Self-Defense Fleet, Vice Admiral Kazuki Yamashita)
(Meeting with Commander of the Japanese Self-Defense Fleet, Vice Admiral Kazuki Yamashita)
The 2018 U.S.-Japan Security and Defense Dialogue Series closed with a group of the U.S. and Japanese participants visiting United States Fleet Activities Yokosuka. There, they met with the Commander of the U.S. 7th Fleet, Vice Admiral Phil Sawyer, and had a working lunch aboard USS Chancellorsville. They subsequently toured the Memorial Ship Mikasa (famous for serving as Admiral Togo’s flagship during the Russo-Japanese War) and met with the Commander of the Self-Defense Fleet, Vice Admiral Suzuki Yamashita at his headquarters. The conversations throughout the day focused on the importance of the alliance and the challenges of conducting combined U.S.-Japanese naval and joint operations.
Chatham House Rule applied to the dialogue, but a workshop report with no direct attribution or remarks will soon be made available to the public.
June 2018 Update: the 2018 workshop report is now published. Read it now.
The U.S.-Asia Security Initiative is part of Stanford University’s Walter H. Shorenstein Asia-Pacific Research Center (APARC). Led by former U.S. Ambassador and Lieutenant General (Retired) Karl Eikenberry, USASI seeks to further research, education, and policy relevant dialogues at Stanford University on contemporary Asia-Pacific security issues.
Hero Image
(Seated at table, from left to right: Japan Foreign Minister Taro Kono, Ambassador Michael Armacost, Ambassador Karl Eikenberry, and Ambassador David Shear)
“I don't think [young South Koreans] necessarily want reunification,” APARC director Gi-Wook Shin tells an audience during the World Affairs panel, “Responding to North Korea: South Korea’s Olympic Olive Branch and US Cyber Warfare Options." Joined by Ambassador Kathleen Stephens, the two spoke with World Affars CEO Jane Wales about many of the issues facing the Korean peninsula as it prepares for the start of the Pyeongchang Winter Olympics
Lee Jong-Seok served as vice-secretary of South Korea’s National Security Council and as its unification minister under the Roh Moo-Hyun administration (2003–08). After Roh’s tragic death in 2009, Lee resolved to present a record of the so-called participatory government’s achievements and failures in the realm of unification, foreign affairs, and national security.
Peace on a Knife’s Edge is the translation of Lee’s 2014 account of Roh’s efforts to bring peace to the Korean Peninsula in the face of opposition at home from conservative forces and abroad from the Bush administration’s hard stances of “tailored containment” and its declaration of the North as part of the “axis of evil.” Lee’s narrative will give American readers rare insights into critical moments of Roh’s incumbency, including the tumultuous Six-Party Talks; the delicate process of negotiating the relocation and reduction of United States Forces Korea; Roh’s pursuit of South Korea’s “autonomous defense”; conflicts with Japan over history issues; and the North’s first nuclear weapons test.
In October 2017, twenty-two scholars from eight countries attended a workshop titled “ASEAN @ 50, Southeast Asia @ Risk: What should be done?” The workshop was designed to facilitate a frank and creative discussion of policy recommendations, with the intention of providing the resulting proposals to ASEAN member states and other regional powers. Following two days of discussion and debate, the attendees produced a series of specific policy recommendations (SPRs).
Four sets of Southeast Asia-related topics were covered during the workshop: regional security, regional infrastructure, regional economy, and improving ASEAN. The attending scholars—which included Director of the U.S.-Asia Security Initiative Karl Eikenberry and Director of the Southeast Asia Program Donald Emmerson—submitted 24 SPRs for discussion.
Over two-and-a-half days, the group evaluated each SPR for its effectiveness, significance, specificity, and feasibility. The intention was to produce specific proposals addressing some of the main challenges facing Southeast Asia. So as to encourage openness in the dialogue, the workshop was held under the Chatham House Rule.
The Southeast Asia Program and the U.S.-Asia Security Initiative in the Walter H. Shorenstein Asia-Pacific Research Center prepared this program and final publication in cooperation with multiple partners. Their final recommendations have been included in the 20-page report which is now available online.
In October 2017, twenty-two scholars from eight countries attended a workshop titled “ASEAN @ 50, Southeast Asia @ Risk: What should be done?” The workshop was designed to facilitate a frank and creative discussion of policy recommendations, with the intention of providing the resulting proposals to ASEAN member states and other regional powers. Following two days of discussion and debate, the attendees produced a series of specific policy recommendations (SPRs).
Four sets of Southeast Asia-related topics were covered during the workshop: regional security, regional infrastructure, regional economy, and improving ASEAN. The attending scholars—which included Director of the U.S.-Asia Security Initiative Karl Eikenberry and Director of the Southeast Asia Program Donald Emmerson—submitted 24 SPRs for discussion.
Over two-and-a-half days, the group evaluated each SPR for its effectiveness, significance, specificity, and feasibility. The intention was to produce specific proposals addressing some of the main challenges facing Southeast Asia. So as to encourage openness in the dialogue, the workshop was held under the Chatham House Rule.
The Southeast Asia Program and the U.S.-Asia Security Initiative in the Walter H. Shorenstein Asia-Pacific Research Center prepared this program and final publication in cooperation with multiple partners. Their final recommendations have been included in the 20-page report which is now available online.
Former U.S. ambassador to South Korea Kathleen Stephens spoke on the "PBS News Hour" about the first high-level talks between North Korea and South Korea in more than two years. The two nations agreed to hold future military talks aimed at easing border tensions and the North pledged to send a delegation to the Olympic Games next month.
Stephens called it a good first step and an “all-too-rare positive development” on the peninsula. The decrease in potential for disruptions to next month’s games could—according to Stephens-be seen as the first deliverable by South Korea’s new president, Moon Jae-In, on a promise to reengage with the North.
Ambassador Stephens said it was not surprising that denuclearization did not come up during Tuesday’s talks, noting North Korea’s position that the issue is one to be dealt with the United States. Ambassador Stephens speculated that once the Olympics closed, the peninsula might experience a period of reduced tensions along with confidence building. However, she believes that come the spring there would still remain important questions about military exercises as well as nuclear weapons.
Asked about news reports of discussions within the Trump administration on the possibility of targeted strikes against North Korean military sites, Ambassador Stephens described it as a very risky strategy, adding that the discussions alone could prove unnerving in South Korea as well as North Korea.
In advance of talks between North Korea and South Korea, APARC’s Daniel Sneider says the most immediate threat on the peninsula actually comes from the latter.
In a piece for The Hill, Sneider writes that by embracing North Korea’s offer for dialogue, South Korean President Moon Jae-in—who seeks a peaceful Olympic Games, good relations with China, and reduced tensions with the North—risks diminishing America’s presence in the region.
The challenge for the U.S. administration, accordng to Sneider, is to afford South Korea freedom to explore opportunities for dialogue, while ensuring that such freedom does not result in driving the United States off the peninsula.
Commenting on President Trump's twelve-day trip to Asia, FSI senior fellow and director of the Southeast Asia Program at Shorenstein Asia-Pacific Research Center Donald K. Emmerson noted that Trump "failed . . . to significantly alter the calculus brings to bear on North Korea."
Trump's approach to foreign policy, one based on forming personal relationships, might have caused him to get the mistaken idea "that he had made a real impact and everybody was getting along," Emmerson suggested.
Emmerson likewise questioned any substantial trade-related results coming out of the trip, saying that many touted achievements were either "already on the table" or were non-binding memoranda of understanding.
That said, Emmerson stressed that if in time President Trump were to realize the dearth of interest in bilateral trade deals, and that the "U.S. is making China great again," he could shift U.S. policy.
Former U.S. ambassador to South Korea Kathleen Stephens spoke on "Bloomberg Daybreak: Asia" about President Trump's Asia trip on the eve of his arrival in China.
Stephens noted that in canceling a trip to the DMZ--more or less a presidential tradition on visits to Korea--Trump did the "right thing" by instead focusing on the "must-do" on this first trip of reassuring South Koreans on the U.S. commitment to its alliance with the Republic of Korea.
Both North Korean and Trump administration rhetoric seems to have cooled off in recent days; Stephens noted that Trump seems to have "gotten the message" about the importance of the relationship with South Korea and the level of nervousness in the country.
Ambassador Stephens commented on the feasibility of beginning talks with North Korea and what additional pressure might be required to get the North to the table. She noted that if denuclearizing were a precondition for talks, they wouldn't happen.
She speculated on what President Trump might ask the Chinese to do to up the pressure on North Korea, for example, cutting off oil exports. She also suggested that when it comes to talking about trade, the emphasis might be on announcing deals and Trump might act as "salesman-in-chief."
(From left to right: General Vincent Brooks, Commander, UNC/CFC/USFK; Ambassador David Shear; Ambassador Michael Armacost; and Workshop Co-Hosts Ambassador Karl Eikenberry and Lieutenant General, (Retired) Noboru Yamaguchi)
(Meeting with Commander of the Japanese Self-Defense Fleet, Vice Admiral Kazuki Yamashita)
