International Relations

FSI researchers strive to understand how countries relate to one another, and what policies are needed to achieve global stability and prosperity. International relations experts focus on the challenging U.S.-Russian relationship, the alliance between the U.S. and Japan and the limitations of America’s counterinsurgency strategy in Afghanistan.

Foreign aid is also examined by scholars trying to understand whether money earmarked for health improvements reaches those who need it most. And FSI’s Walter H. Shorenstein Asia-Pacific Research Center has published on the need for strong South Korean leadership in dealing with its northern neighbor.

FSI researchers also look at the citizens who drive international relations, studying the effects of migration and how borders shape people’s lives. Meanwhile FSI students are very much involved in this area, working with the United Nations in Ethiopia to rethink refugee communities.

Trade is also a key component of international relations, with FSI approaching the topic from a slew of angles and states. The economy of trade is rife for study, with an APARC event on the implications of more open trade policies in Japan, and FSI researchers making sense of who would benefit from a free trade zone between the European Union and the United States.

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Congressman Weldon represents the Seventh Congressional District of Pennsylvania. He is in his tenth term and is the most senior Republican in the Pennsylvania delegation. He is a senior member of the House Armed Services Committee and a leading House supporter of a national missile defense program. The Congressman has worked to strengthen the dialogue between the US and North Korea for the past three years. He has worked closely with Ambassador Han of North Korea as well as former Secretary Powell and Ambassador Pritchard to urge both sides to continue their participation in the six-party talks.

General Cha achieved the rank of Lieutenant General in the Army of the Republic of Korea. He has had a distinguished career, serving both in the public and the private sector, including as policy advisor to the Ministry of Unification, director general of the Policy Planning Bureau and deputy minster for Policy, and as an assistant professor in international relations. He has a B.A. in political science from Seoul National University, a B.S. in mechanical engineering from the Korea Military Academy, and a Ph.D. in political science from the University of Paris. He is the author of several books and articles on Korean security issues, published in both Korean and English.

Bechtel Conference Center

Congressman Curt Weldon United States House of Representatives
General Young Koo Cha Senior Executive Advisor Pantech Co., Ltd.
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Since the 1980s, simultaneous trends in Taiwan toward globalization and localization have contributed to people's construction of a past promoting local solidarity. Such rewriting of Taiwanese consciousness has relied heavily on a "rediscovery" of cultural traditions corresponding to Pingpu identity. (Pingpu identity is debated as an indigenous or a mestizo identity and used to claim that Taiwan is not Chinese.) Professor Pans examination of the development of Pingpu identity over the past ten years focuses on the 1996 event "We are All Pingpu" and uses both ethnographic and historical materials to analyze the role of Pingpu identity in rewriting Taiwanese conscious-ness.

Dr. Pan's research addresses the following questions: Who are the Pingpu? Why do some Taiwanese choose to be identified as Pingu while others do not? What is the significance of Pingpu identity for present-day Taiwanese consciousness? How has Pingpu identity been constructed? How and why do people rewrite the past when an identity is being created?

This is the final seminar in the Taiwan Seminar Series hosted by Shorenstein APARC.

Okimoto Conference Room

Inghai Pan Institute of Ethnology, Academia Sinica, Taipei,Taiwan
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Among the different types of capital resources, venture capital as practiced in Silicon Valley is broadly acknowledged as being an important constituent of a high technology, entrepreneurial habitat. In the past two decades, policy makers from different regions have learned much from its experience.

The IT industry attributes its success partly to venture capital investments in early, risky, stages. Looking ahead, other industries will emerge in the knowledge economy. Within Taiwan and Mainland China, information related industries still dominate investment, yet in Silicon Valley emerging industries including biotechnology, medical instruments and nanotechnology have recently been attracting as much venture capital as the IT industry.

Today, venture capitalists from Silicon Valley and Taiwan are probing what they perceive as growing investment opportunities in Mainland China, On the other hand, the immaturity of its private equity market and the undeveloped state of exit mechanisms there is causing venture capitalists to hesitate to made large investments. Currently, Taiwan's venture capital faces low price-earnings ratios in its 1,400 publicly listed companies. This has contributed to a decline in VC investment. The Taiwan government expects to further liberalize the financing environment to bolster it as a regional center for domestic and international corporations.

This conference will address the influence of the system of capital on regional innovation and entrepreneurship in the United States, Taiwan, and Mainland China. The focus will be on the venture capital industry, corporate venturing and other institutions of capital related to regional industrial development.

Here are some questions to be addressed in this conference:

  • What is the pattern of venture capital investing in high-tech start-ups in the Greater China Area?
  • What are the trends in this industry?
  • How, specifically, does venture capital promote innovation and entrepreneurship?
  • What are the similarities among independent venture capital funds, corporate venture funds, angel funds, and commercial bank involvements?

Conference Organization

Conference Chairman

  • Dr. Chintay Shih, Dean of College of Technology Management, National Tsing Hua University, and Special Advisor, Industrial Technology Research Institute

Co-chairmen

  • Dr. Paul Wang, Chairman, Taiwan Venture Capital Association
  • Dr. Henry Rowen, Co-director, SPRIE
  • Dr. William Miller, Co-director, SPRIE

Executive Director

  • Dr. Sean Wang, Director General of Industrial Economics and Knowledge Center in Industrial Technology Research Institute

Conference Secretariat

  • Industrial Economics and Knowledge Center, Industrial Technology Research Institute (IEK/ITRI)

Conference Organizing Secretariat

  • ITRI: Yi-Ling Wei, Peter Lai, Frank Lin, Shu-Chen Huang
  • TVCA: Teresa Yang, Michael Chen, Riva Su
  • SPRIE: Marguerite Gong Hancock (Stanford)/Martin Kenney (UC Davis)

Auditorium, The Grand Hotel,
1 Chung Shan N. Road, Sec. 4, Taipei, Taiwan

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As part of a new initiative on Greater China, SPRIE has selected two outstanding young scholars as the inaugural SPRIE Fellows at Stanford for research and writing on Greater China and its role in the global knowledge economy. Xiaohong (Iris) Quan and Doug Fuller, from the University of California, Berkeley and MIT, respectively, will join the SPRIE research team for the 2005-2006 academic year.

The primary focus of the program is the intersection of innovation and entrepreneurship and underlying contemporary political, economic, technological, and/or business factors in Greater China (including Taiwan, Mainland China, Singapore). Topics of particular interest include, but are not limited to, university-industry linkages, globalization of R&D, venture capital industry development, networks and flows of managerial and technical leaders, and leading high technology clusters in Greater China. Industries of ongoing research at SPRIE include semiconductors, wireless, and software.

SPRIE Fellows at Stanford will be in residence for at least three academic quarters, beginning in fall 2005. Fellows take part in Center activities, including research forums, seminars, and workshops throughout the academic year, and will present their research findings in SPRIE seminars. They will also participate as members of SPRIE's team in its public and invitation-only seminars and workshops with academic, business, and government leaders. Fellows will also participate in the publication programs of SPRIE and APARC.

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The Association of Southeast Asian Nations (ASEAN) has long been based on the principle of national sovereignty, including a norm against interference by one member state in another's domestic affairs. But some members would like to set aside the prohibition in cases such as Myanmar, whose military junta continues to repress Aung San Suu Kyi and her National League for Democracy to the detriment of ASEAN's image in the West. Opposed to this view are the group's newest, poorer, more continental, and politically more closed members: Cambodia, Laos, Vietnam, and of course Myanmar itself. They want ASEAN to uphold national sovereignty and reaffirm non-interference. The prospect of Myanmar assuming the chair of ASEAN in 2006-2007 makes this controversery even more acute. Is ASEAN splitting up? Will a compromise be reached? And with what implications for the nature and future of ASEAN and its conservative faction?

Carlyle A. Thayer is the 2004-2005 C. V. Starr Distinguished Visiting Professor at the Johns Hopkins School of Advanced International Studies in Washington DC. He has written and lectured widely on Southeast Asian affairs. He has held positions at the Asia-Pacific Center for Security Studies (in Hawaii) and the Australian Defence College. His degrees are from the Australian National University (PhD), Yale University (MA), and Brown University (BA).

This is the 10th seminar of the 2004-2005 academic year hosted by the Southeast Asia Forum.

Okimoto Conference Room

Carlyle A. Thayer Professor of Politics Australian Defence Force Academy
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Heather Ahn
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It is with great pleasure that I announce that Professor Gi-Wook Shin will assume the directorship of the Shorenstein Asia-Pacific Research Center commencing September 1, 2005. Gi-Wook is well qualified to assume this role and to provide APARC with the same kind of leadership he has brought to the Korean Studies Program.

When Professor Shin left UCLA four years ago to come to Stanford, he left the largest Korean studies program in the nation. It must have been quite a gamble for him to come here since there was little by way of Korean studies at Stanford. With true entrepreneurial spirit, Professor Shin has built an impressive and dynamic Korean studies program at SIIS. It hosts luncheon seminars, workshops, and conferences, and has sponsored many Korean scholars, government officials, and business leaders who spend time at Stanford as visiting scholars. It also supports an active research program spearheaded by two postdoctoral research fellows and two Pantech professional fellows. Stanford is steadily becoming a world-class center for contemporary Korean studies.

I have great confidence that Gi-Wook will continue his outstanding work in his new role as the director of Shorenstein APARC. Gi-Wook's strong leadership will prove invaluable in the years to come as the Institute grows and as the International Initiative unfolds. Please join me in congratulating and supporting Gi-Wook in his new role.

Best regards,

Coit. D. Blacker, Director, Stanford Institute for International Studies

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The offshoring of service provision is rapidly becoming the next stage in globalization. As in any new emerging trend, there are new business and investment opportunities emerging. However, remarkably little is known about the scope of the phenomenon and what is happening in the leading corporations and the new business models entrepreneurs are introducing.

On June 17, 2005, Stanford University's Asia-Pacific Research Center is organizing a one-day seminar partially sponsored by the Alfred P. Sloan Foundation and others on the globalization of services. The presentations will be made by international and U.S. industry leaders and entrepreneurs describing their offshore service activities and leading academic researchers studying offshoring.

The conference will (1) Compare outsourcing locally and globally, examining differences that arise from differences in skills, institutions, regulations, technologies, process and coordination requirements, (2) Take a global view of the value-chain, examining the quantity and quality of skills in service delivery, migration and process management, verticals, and the impact on ownership structures and complexity of work done. (3) Examine the roles of cross-border participants: venture capital, product developers, etc..

Speakers will include representatives of established outsourcers from India, Mexico, Pakistan, the Philippines and the U.S., established multinationals that offshore work to their own subsidiaries, startups and niche firms that do cross-border work, providers of the supporting infrastructure banks, venture capitalists, law firms, etc. Academicians from Oxford University, Stanford University, the University of California and other academic bodies will also participate.

Case studies and academic papers on outsourcing/offshoring to be presented at the conference:

  1. Trade Finance (DSL)
  2. UK HR industry (Oxford University)
  3. Software and chip design (Tensilica)
  4. Software application services (TCS)
  5. Back-office finance & accounts (Agilent)
  6. Call Center/Multiple Services Firms (TRG, PLDT, I-OneSource, IT United)
  7. HR development for US firms undertaking Indian operations (Globalex)
  8. Legal aspects of establishing Indian operations (Thakker and Thakker)
  9. Network management (GTL)
  10. Enterprise software as a service (Ketera)
  11. HR and value-addition (Stanford University/UC Davis)
  12. Applying process and technology for value-addition (Gecis)
  13. Managing inhouse work (IBM Daksh)
  14. Transitioning outsourcing from the US to India (e4e)

Bechtel Conference Center

No longer in residence.

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R_Dossani_headshot.jpg PhD

Rafiq Dossani was a senior research scholar at Stanford University's Shorenstein Asia-Pacific Research Center (Shorenstein APARC) and erstwhile director of the Stanford Center for South Asia. His research interests include South Asian security, government, higher education, technology, and business.  

Dossani’s most recent book is Knowledge Perspectives of New Product Development, co-edited with D. Assimakopoulos and E. Carayannis, published in 2011 by Springer. His earlier books include Does South Asia Exist?, published in 2010 by Shorenstein APARC; India Arriving, published in 2007 by AMACOM Books/American Management Association (reprinted in India in 2008 by McGraw-Hill, and in China in 2009 by Oriental Publishing House); Prospects for Peace in South Asia, co-edited with Henry Rowen, published in 2005 by Stanford University Press; and Telecommunications Reform in India, published in 2002 by Greenwood Press. One book is under preparation: Higher Education in the BRIC Countries, co-authored with Martin Carnoy and others, to be published in 2012.

Dossani currently chairs FOCUS USA, a non-profit organization that supports emergency relief in the developing world. Between 2004 and 2010, he was a trustee of Hidden Villa, a non-profit educational organization in the Bay Area. He also serves on the board of the Industry Studies Association, and is chair of the Industry Studies Association Annual Conference for 2010–12.

Earlier, Dossani worked for the Robert Fleming Investment Banking group, first as CEO of its India operations and later as head of its San Francisco operations. He also previously served as the chairman and CEO of a stockbroking firm on the OTCEI stock exchange in India, as the deputy editor of Business India Weekly, and as a professor of finance at Pennsylvania State University.

Dossani holds a BA in economics from St. Stephen's College, New Delhi, India; an MBA from the Indian Institute of Management, Calcutta, India; and a PhD in finance from Northwestern University.

Senior Research Scholar
Executive Director, South Asia Initiative
Rafiq Dossani Speaker
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Donald K. Emmerson
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When the 9.0-magnitude earthquake and resulting tsunami struck Asia and East Africa on December 26, Indonesia took a devastating hit. More than 100,000 people died and another 500,000 were left homeless, with some experts predicting that the final death toll may rise above 250,000. Aceh province on the northern tip of the island of Sumatra, where the Free Aceh Movement rebel forces have been fighting against the Indonesian Defense Forces for almost 30 years, was at the center of the destruction. Donald Emmerson, a senior fellow at the Stanford Institute for International Studies and director of its Southeast Asia Forum, is an Indonesia specialist who has been traveling to Aceh since the late 1960s. He's finishing a book entitled What is Indonesia? Identity, Calamity, Democracy.

STANFORD: What do we need to know about Aceh province?

That it's a wonderful place, that the people have a tradition of hospitality, and that they share with you what they have. It's very sad that it has been subject to so much violence and conflict for so many years.

What's been happening in recent times?

Since May 2003, Aceh has been virtually off-limits to foreigners. The [military] reasoning is that it's for security reasons, but there's always been a suspicion that it's also because bad things -- horrible things, killings and so forth -- are done in the dark, and they don't want people to watch. Certainly the human rights community has had great difficulty getting access to Aceh.

What could happen as a result of some 1,000 representatives of aid organizations being on the ground there?

The opening of Aceh to foreign and domestic humanitarian aid workers has the potential to introduce elements that can serve as a check on human rights abuses. Obviously, the time for mourning is not over. But if we can insert a silver lining in this very dark cloud, it might be that the devastation of the tsunami opens up an opportunity to rebuild much of Aceh, and that it will require cooperation among all Acehnese. I am cautiously optimistic about the opening that this catastrophe represents for trying to lessen the man-made pain of the Acehnese people.

What might a rebuilt Aceh look like?

The plan is to take villages that were destroyed, and maybe even the town of Meulaboh on the west coast, which was the worst hit, and move them inland a certain number of kilometers. Then, construct mangrove swamps as barriers against a repetition of the tsunami, and also to protect the soil from erosion and generate the possibility of brackish-water fishing for the livelihoods of the people. This is a massive effort that is going to last for years and years. Authorities have estimated that the rebuilding costs in Aceh could run to $2.2 billion.

Fishing villages would no longer exist on the coast?

I spent nine months in fishing villages in East Java, and I found that the relationship of the populations on the coast to the ocean is not necessarily what one would expect. They are not happy bathers on the beach, fishing is an extremely dangerous operation, and the ocean is considered a wild place.

Many fishing communities are overfishing the source. I wrote a long report for the Ministry of Agriculture's fisheries office, arguing that what Indonesia ought to do was take the money the government was spending to supply nylon fishing nets and higher horsepower outboard motors, and spend it on wives who were involved in craft commodities. The women have commercial skills, and getting microcredit programs for women to set up shops and expand is the future.

How will religion figure in that future?

Aceh is known in Indonesia as "the front porch of Mecca." The Acehnese are almost entirely Muslim. While there's a tendency among Americans to presume that [a Muslim nation] must be fanatic, Indonesia remains an overwhelmingly moderate society. There is a poignant photo, which hasn't been circulated in the U.S. press, of a sign at a depot for humanitarian relief supplies. It reads, "If you try to steal this material, you will be responsible to Allah."

The following is supplemental material that did not appear in the print edition of STANFORD.

What was the overall impact of the tsunami in Indonesia?

I think it's important to keep in mind that each of the affected countries was affected in a somewhat different way. In Sri Lanka, an estimated 70 percent of the coastline of the entire island was affected, so the economic consequences there are going to be more severe than the damage that was done to Indonesia. If you go down the west coast of Sumatra, you will see damage, but the main damage was overwhelmingly concentrated in a single province, Aceh, which represents less than 2 percent of the total population of Indonesia. Aceh got a double-barrel assault -- from the earthquake and the tsunami. The death toll was horrid, with a huge loss of life, but it was concentrated on the coasts.

How does Aceh's history set it apart from the rest of Indonesia?

The first record we have of an Islamic sultanate in what is now Indonesia is a stone carving dated 1297, on the north coast of Aceh. Aceh was closest to the Middle East, and there were Muslim traders who would go short distances, pause, sell, buy and reload. Long-distance Arab-Malay trade finally got to Indonesia, and the logical landfall was Ache.

Then there were tremendous and unequal casualties in the war against the Dutch, who recruited Ambonese troops to fight a colonial war in Aceh in the 19th century. There's a photograph of Dutch troops standing on the dead bodies of Acehese rebels. The Acehnese war lasted a long time, and it was one of the last parts of the archipelago to be fully brought into the colonial orbit.

Aceh has been for some time under a state of military emergency, and an estimated 13,000 have died as a result of the [rebel] war since 1976. But the tsunami has changed all that. Looking at it from a political science point of view, if we don't begin trying to analyze the situation, I'm not sure we can make it better down the road.

What needs to happen?

In a time of crisis what you need is efficiency and effectiveness, and you need somebody to stand up and say, "This is the way things are going to be." But the governor of Aceh is, by all accounts, exceedingly corrupt. He is in Jakarta now, in detention, awaiting trial on corruption charges. So you don't even have an active, sitting provincial government leader to take charge.

The number of members of the provincial administration who died in the tsunami is quite high, and the central government has had to send up 300 replacements from Jakarta. The administration of Aceh has essentially been completely taken over by the central government. This is potentially unhelpful, depending on how sensitive and effective the central government is and how corrupt the atmosphere is within which masses of foreign aid are moving.

The somewhat optimistic scenario is that now Aceh is even more dependent on the central government than it was before, with the need to rebuild substantial portions of its coastline. So a leader of the [freedom] movement [might] look down the road and say, "It's unrealistic for us at this point, with this incredible body blow to our economy, to expect that we can now somehow take over Aceh. We are more dependent than we were before on the central government."

And, conversely, in Jakarta there might be the thinking that since Aceh now so obviously needs support within the republic, "We are in a stronger position, and therefore we can afford to be generous, and to extend concessions, short of independence, that will take advantage of this." The bottom line is that two enemies who were at each other's throats now face a third enemy -- nature.

Are there other voices that should be heard in Aceh?

One of the difficulties of having negotiations between the Acehnese Freedom Movement and the central government is that it tends to exclude other Acehnese views, which is one reason why negotiations that took place previously were not successful. Acehnese society is pretty diverse, and the Acehnese Freedom Movement does not represent all Acehnese, not to mention the Javanese and Indonesians who have migrated into the province, who are university students and [members of] religious communities.

The conflict has lasted for 30 years in its present form, and it has created such enmities that there is no particular mood to compromise. The government has no incentive to reach out, and the Acehnese Freedom Movement remains intransigent. In the long run, those who disagree with a so-called freedom movement are in the shadows and their views tend not to be reported. My hope is that as these voices are allowed to take part in determining the future of Aceh and its political leadership, the polarization will decrease and there will emerge a kind of more moderate center, in favor of autonomy and full rights.

In the 1990s, the United States cut military assistance programs to Indonesia. Is the relationship between the two countries improving?

SBY -- Susilo Bambang Yudhoyono -- is a former military man, but he's identified as relatively clean, and associated with a somewhat more reform-minded element within the military. More than any previous president of Indonesia, he has had exposure to the United States. Certainly this is an opportunity for an improved relationship between Indonesia and the U.S.

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In 2004, SPRIE launched the three-year Greater China Networks (GCN) research program. Its goal is two-fold. First, the GCN seeks to advance understanding of the systems of innovation and entrepreneurship that drive Greater China's ascendance in high technology. Second, it will study the nature and impacts of the region's integration into the global knowledge economy. The research agenda includes a focus on activities or institutions that underpin systems of innovation and entrepreneurship, especially for the new generation of ascending high tech regions in Greater China. These include university-industry linkages, globalization of R&D, venture capital, new firm formation and development, and flows of technology and business leaders.

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Soyoung Kwon
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APARC's 2004-2005 Shorenstein Fellow, Soyoung Kwon, discusses Europe's new perspective on Pyongyang.

PALO ALTO, Calif. -- The European Union is increasingly showing a new independent stance on foreign-policy issues as the logic of its industrial and economic integration plays out in the international arena.

Already the EU has taken a distinct and independent approach to both the Israel-Palestinian conflict and the nuclear crisis in Iran. Now it has broken ranks over the Korean Peninsula, fed up and concerned with the failure to resolve the ongoing crisis over North Korea's development of nuclear arms.

Reflecting this new stance, the European Parliament this week passed a comprehensive resolution on the Nonproliferation Treaty (NPT) and nuclear arms in North Korea and Iran:

  • It urges the resumption of the supply of heavy fuel oil (HFO) to North Korea in exchange for a verified freeze of the Yongbyong heavy-water reactor, which is capable of producing weapons-grade plutonium, to avoid a further deterioration in the situation. At the same time it is calling for the European Council and Commission to offer to pay for these HFO supplies.
  • It urges the Council of Ministers to reconsider paying 4 million Euros of the suspension costs for KEDO (the Korea Energy Development Organization) to South Korea to ensure the continued existence of an organization that could play a key role in delivering energy supplies during a settlement process.
  • It demands that the Commission and Council request EU participation in future six-party talks, making it clear that the EU will in the future adopt a "no say, no pay" principle in respect to the Korean Peninsula. Having already placed more than $650 million worth of humanitarian and development aid into the North, it is no longer willing to be seen merely as a cash cow. This view was backed in the debate by the Luxembourg presidency and follows a line initially enunciated by Javier Solana's representatives last month in the Parliament's Foreign Affairs Committee.
  • It urges North Korea to rejoin the NPT, return to the six-party talks and allow the resumption of negotiations.

The EP cannot substantiate U.S. allegations that North Korea has an HEU (highly enriched uranium) program or that North Korea provided HEU to Libya. It has called for its Foreign Affairs Committee to hold a public hearing to evaluate the evidence. "Once bitten, twice shy" is the consequence of U.S. claims that Iraq possessed weapons of mass destruction.

The world order is changing; the EU -- like China -- is emerging as a significant global power economically with the euro challenging the dollar as the global currency (even prior to the latest enlargement from 15 to 25 member states, the EU's economy was bigger than that of the United States). Speaking at Stanford University earlier this month, former U.S. foreign policy adviser Zbigniew Brzezinski pointed out that the EU, U.S., China, Japan and India will be the major powers in the new emerging global order. Since the new Asia will have three out of the five major players, he stressed the importance of engaging with it.

How will those already in play respond? Some may claim that statements by North Korea welcoming the EU's involvement and participation are merely polite, inoffensive small talk that cannot be taken seriously. Yet there have been a spate of pro-EU articles appearing in Rodong Sinmun, the daily newspaper of the Central Committee of the Korean Workers Party, since 2001.

Of 128 EU-related articles between 2001 and 2004, a majority praised Europe's independent counter-U.S. stance, emphasized its increasing economic power and influence, and heralded its autonomous regional integration. Rodong Sinmun portrays the EU as the only superpower that can check and balance U.S. hegemony and America's unilateral exercise of military power.

North Korea's perception of the EU is well reflected in articles such as: "EU becomes new challenge to U.S. unilateralism"; "Escalating frictions (disagreements) between Europe and U.S."; "European economy (euro) dominating that of the U.S."; "Europe strongly opposing unilateral power play of U.S.," and so forth.

Concurrently, North Korea has pursued active engagement with the EU by establishing diplomatic relations with 24 of the 25 EU member states (the exception being France). It is not necessary to read between the lines to recognize North Korea's genuine commitment to engagement with the EU based on its perception of the EU's emerging role on the world stage.

The Republic of Korea has publicly welcomed the prospect of EU involvement, while China wishes to go further and engage in bilateral discussions with the EU on its new policy toward the North. Russia will follow the majority. The problem is with Japan and the U.S.

In Japan, opinion is split by hardliners in the Liberal Democratic Party who view problems with North Korea as a convenient excuse to justify the abandonment of the Peace Constitution. They don't want a quick solution until crisis has catalyzed the transformation of Japan into what advocates call a "normal" country.

The U.S. expects an EU financial commitment, but not EU participation. The neocons believe that EU participation would change the balance of forces within the talks inexorably toward critical engagement rather than confrontation.

The question is whether the EU's offer will point the U.S. into a corner or trigger a breakthrough. Will U.S. fundamentalists outmaneuver the realists who favor a diplomatic rather than military solution? Only time will tell.

Glyn Ford, a Labour Party member of the European Parliament (representing South West England), belongs to the EP's Korean Peninsula Delegation. Soyoung Kwon is a postdoctoral fellow at Stanford University's Asia-Pacific Research Center.

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