Stanford University

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.

Remembering Y2K: The Impact Today

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Rafiq Dossani
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Y2K was shorthand for the potentially disastrous failure of computer systems at the turn of the millennium. The problem: Many old software systems might read "00" as 1900--not 2000--a glitch that could lead to a cascade of errors and malfunctions. Year two thousand came, and nothing happened--well, not much anyway. A credit card mistake here. A satellite blackout there. But no lives lost. No global economic catastrophe. Monday, January 3 was just another workday. Yet with the benefit of hindsight the economic impact of Y2K on America was far greater than the $100 billion-plus government and business spent on fixing the computer glitch. Chris Farrell reports.

Chris Farrell: Remember the dot-com boom of the 1990s? It seemed as if every entrepreneur with a good idea and a PC could challenge established companies for customers. Brick-and-mortar companies jumped on the e-commerce bandwagon. The demand for digital workers soared. Long-time computer professionals hopped from job to job, pulling down more money with every employer. Newly minted college graduates juggled multiple job offers. But when the Y2K problem emerged in the latter part of the '90s business and government quickly realized there still weren't enough IT workers on hand to find and repair the computer glitch. The quick fix? Hire computer professionals overseas. And that temporary solution permanently changed the global economy.

Paul Saffo: Y2K was huge in getting the ball rolling on offshoring.

Farrell: Paul Saffo is director of the Institute for the Future, a high-tech think tank in Silicon Valley.

Saffo: But once they went overseas, they discovered it's not just a matter of cost. These programmers overseas are often better than the best you can get in the United States.

Farrell: Ireland, the Philippines, and Israel were among the more popular destinations for offshoring Y2K programming fixes. But India became the offshore capital. It had plenty of high-tech companies staffed with well-educated English speaking digital workers. Thanks to India's steep import barriers in the 1980s, no one could afford new computer systems. So Indian tech workers were the world's leading experts in the older software languages that needed upgrading. Suhas Patil is chairman emeritus of semiconductor maker Cirrus Logic.

Suhas Patil: And they were listening to their customers and what their needs were, and as the recognition came that systems had to be upgraded to not have the problem based on the Y2K issues, that's how they got their break.

Farrell: And made the most of the opportunity. AnnaLee Saxenian is Dean of the School of Information Management and Systems at the University of California, Berkeley.

AnnaLee Saxenian: I think the importance of Y2K was overwhelmingly about establishing Indian companies' reputation among US customers and helping begin a set of customer supplier relationships that have simply taken off in the last four years.

Farrell: Of course, Y2K contracts ended in 2000. Yet many Indian companies took advantage of their now sterling programming reputations to negotiate for more sophisticated work. Research. Software development. Accounting services. Long-distance medical advice. Rafiq Dossani is a senior research scholar at Stanford University.

Rafiq Dossani: India is now growing at 70-80 per cent a year in offshored services ... services which are maintaining an accounting system, maintaining an HR system, doing claims processing, that's growing easily at 70 per cent, maybe even higher.

Farrell: Offshore also came onshore during Y2K. The town of Mountain View lies at the heart of California's Silicon Valley. Housed in one of the many nondescript low-rise office buildings that crowd the region's business avenues is the Indus Entrepreneur, or TIE. It is a networking base for the Indian high-tech Diaspora.

Shankar Muniyappa: Y2K was a big opening as early as 98.

Farrell: Shankar Muniyappa is director of information systems for TIE. He came to America for Y2K-and stayed.

Muniyappa: Myself and many of us believe still believe this is the place where you need to be if you want to be middle of innovation.

Farrell: Some 30,000 Indian IT professionals now live and work in the Valley. Rafiq Dossani of Stanford University:

Dossani: At least 25 per cent of the start ups have Indian employees at fairly senior levels working for them. And ... there's a whole infrastructure therefore being built around them because it's a substantial number now, so you see shopping malls you see business services and so on catering to this particular immigrant community.

Farrell: That community is adding vitality to the American economy. Still, many American high-tech workers are threatened by the offshoring of white collar jobs. The numbers are murky, but according to Mark Zandi of Economy.com 370,000 non-manufacturing jobs moved overseas over the past fours years-with most of the information technology jobs going to India. Salaries are down too. Still, the big factor behind the loss of 1.5 million jobs lost since Y2K is improved business efficiency or productivity - not offshoring. And Y2K also played an important role in boosting business efficiency.

Economists initially looked at Y2K as a productivity killer.

Imagine a town threatened by a rising river. Every able-bodied person in town is put to work stacking sandbags. It's necessary work to save the town - but it's unproductive work. Nothing gets built. No food gets grown.

With the Y2K bug, programmers, chief information officers, project managers, and other digital workers were getting paid to do unproductive work - stacking sandbags of silicon. No innovative investments. No new productivity enhancing software.

But economists were wrong. Y2K wasn't a flood. Instead, think of it as clearing a path choked with underbrush. Once the trail is open, it is much easier to zip from point A to point B. Y2K gave companies an excuse to clean up their software and hardware underbrush - a critical factor in today's improved business productivity. Paul Saffo:

Saffo: A lot of companies said well, gosh, if we're going to have to spend all this money to fix our software let's also see what else we can do at the same time, so it was an invitation to replace a whole bunch of stuff. ... So it forced people to ask hard questions about how they were using things and in the best instances people really did become more efficient.

Farrell: The result? Companies used the new systems they installed to cut costs and work smarter - and hire fewer workers.

[Voice of Leonard Nimoy: "Do you have hard copies of all your important documents ... such as bank statements."]

That's Leonard Nimoy, Mr. Spock from Star Trek. He's narrating the Y2K Family Survival Guide video - one of thousands of products peddled by prophets of doom. Y2K did bring home how reliant we all are on computers. Many of us still don't back up critical data at home. The same isn't true for business and government. Many learned from Y2K just how vulnerable information systems are to a malicious attack or unforeseen disaster. Case in point: Y2K actually helped some businesses survive 9/11.

[News broadcast of President George W. Bush: "I've directed the full resources of intelligence and law enforcement communities to find those responsible and bring them to justice."]

The attack on the World Trade Center stopped trading on the New York Stock Exchange. Against the odds, that citadel of capitalism opened six days later.

John Koskinen: The reason the markets, securities markets, were able to open the Monday after the Tuesday of 9-11 was they still had the test scripts that had been developed in 1998 and 99.

Farrell: John Koskinen credits preparations for Y2K. He was President Clinton's Y2K czar.

Koskinen: ... they were able to in effect take all of those Y2K scripts and make sure that all the transactions with all of the major players would close. Without that they never would have been able to do it in the time frame with the confidence they had.

Farrell: A record 2.4 billion shares traded on the New York Stock Exchange the day it reopened.

Y2K was a unique economic event. Earlier jolts to the economy, like the 1973 oil price hike and the 2001 attack of 9/11, were shocks. But the Year 2000 arrived right on schedule. The surprise was how little immediate impact the much-feared transition had on the economy. Yet we're still living and working with the economic impact of Y2K five years later.

For Marketplace and American RadioWorks, I'm Chris Farrell.

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What Do the Blind-sided See? Reapproaching Regionalism in Southeast Asia

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The late Michael Leifer's association with an insecurity-focused realist approach to international affairs and his work on Southeast Asian regionalism inspire this question: How have the Asian financial crisis and the "war on terror" affected the plausibility of insecurity-concerned realism compared with other ways of approaching regionalism in Southeast Asia?

Five general approaches (and featured themes) are presented: realism (insecurity), culturalism (identity), rationalism (interests), liberalism (institutions) and constructivism (ideas). By and large this sequence runs ontologically from the most to the least foundationalist perspective, and chronologically from the earliest to the newest fashion in the American study of international relations since the Second World War.

The Asian financial crisis and the "war on terror" have, on balance, vindicated the extremes -- realism on the one hand, constructivism on the other -- while modestly enhancing the plausibility of culturalism and challenging the comparative intellectual advantages of rationalism and liberalism. But this result implies scholarly polarization less than it suggests a diverse repertoire of assumptions and priorities that are neither hermetically compartmentalized nor mutually exclusive.

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The Pacific Review
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Donald K. Emmerson
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Indian Federalism and the Conduct of Foreign Policy in Border States: State Participation and Central Accommodation

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The role of subnational units (states, provinces, cantons, Lander) in international affairs is a growing subject in the literature on federalist affairs. Scholars of political science have traditionally seen the conduct of foreign policy as the exclusive domain of the national government. This would seem an especially apt observation about India's federalist system. The Indian constitution has given the center particularly strong powers -- so strong, in fact, that some have described it as "quasi federal" because of the lack of autonomy it affords to the states. Yet, there is an increasing consensus that the states have not been shy of foreign policy advocacy. Some have argued that the era of coalition governance has increased such advocacy and, potentially, influence, especially in the context of globalization and economic reform and liberalization.

This paper considers the role of Indian border states in the conduct of foreign policy toward their transnational neighbors and asks whether coalition governance results in more power generally or to some state actors more than others. In particular, we explore whether the effectiveness of a state's foreign policy advocacy depends on that state's position in the coalition. Effectiveness may also be influenced by the type of advocacy -- on ethnic issues, for example, as opposed to economic ones -- and by constitutional limits.

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Shorenstein APARC
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Rafiq Dossani

America and the New Asia

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Zbigniew Brzezinski has had a distinguished career in government and academia. From 1977 to 1981 he was the National Security Advisor to President Jimmy Carter. In 1981 he was awarded the Presidential Medal of Freedom for his role in the normalization of U.S.-Chinese relations and for his contributions to the human rights and national security policies of the United States. He is currently the Robert E. Osgood Professor of American Foreign Policy at the Paul Nitze School of Advanced International Studies, Johns Hopkins University, Washington, D.C.

The Oksenberg Lecture honors the legacy of Professor Michel Oksenberg (1938-2001) longtime member of Shorenstein APARC, senior fellow at the Stanford Institute for International Studies, and an authority on China. Professor Oksenberg was consistently outspoken about the need for the United States to engage with Asia in a more considered manner. In tribute, the Oksenberg Lecture recognizes distinguished individuals who have helped to advance understanding between the United States and the nations of the Asia-Pacific.

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The Honorable Zbigniew Brzezinski Former National Security Adviser and Professor, American Foreign Policy Johns Hopkins University
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Walter H. Shorenstein Forum for Asia Pacific Studies
Oksenberg Conference

Industry and academic R&D leaders consider the globalization of R&D in Asia in SPRIE-sponsored panel

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In light of the rise of Asia in research and development (R&D) and the challenge it poses on American supremacy, SPRIE invited industry and academic R&D leaders for a panel discussion entitled "The Globalization of R&D" on February 10, 2005. The panel included Dr. John Seely Brown, visiting scholar, Annenberg Center, USC; Dr. Kris Halvorsen, vice president and director, Solutions and Services Research Center, Hewlett-Packard; and Dr. Yoshio Nishi, director of research at the Center for Integrated Systems, director of Stanford Nanofabrication Facility, National Nanotechnology Infrastructure Network. Participants discussed a wide array of issues, including the economic rationale for new models of R&D, national/regional comparative advantage in R&D, and the coordination of global R&D.

The Economic Rationale for New Models of R&D

Dr. Nishi highlighted the economic rationale behind the quest for new models of R&D. While back in the early 1990s, a $200 million investment in R&D would grant a semiconductor company a one-year lead in technology, by the early 2000s, a one-year lag would transpire with the same investment level. Such an escalation of R&D cost points to the mounting importance of the efficiency of R&D--or as Dr. Nishi put it, the importance of generating "the right technology at the right time for the right cost." The economic forces will not only alter how R&D activities are organized and distributed within and across firms, markets, regions, and countries but also influence the breadth and depth of knowledge searches. For example, R&D alliance might become a viable and lucrative scheme for cost/risk sharing in R&D. The search for non-silicon-based devices might rise in importance as silicon fabrication reaches its limits. By the same token, the division of innovative labor across nations/regions might deepen to further exploit respective comparative advantages.

Regional Comparative Advantage in R&D

One strand of development is the globalization of R&D, which necessitates comparative advantages across regions. Dr. Brown maintained, "I'm moving my analysis from individual firms to [regional] 'niches.' What I see happening is that thousands of [regional] niches are developing all over the place. What's interesting is how dynamic these niches are in building their unique capabilities." The availability of innovative talents, for example, varies significantly across regions. Invoking "the law of large numbers," Dr. Brown pointed out that given its enormous population size, Asia could produce a large number of engineers, even if they are only a tiny fraction of the total population. Currently, the U.S. produces 50,000 engineers every year; the number is 500,000 for Asia--and it is rapidly growing. Meanwhile, more and more immigrant talents choose to return to their home countries after receiving higher education and some work experience in the U.S. Few U.S. companies can afford to ignore such alarming trends. "We need to move with the market for talent," commented Dr. Halvorsen who overseas HP's global R&D activities. Take HP's R&D effort in Bangalore, India as an example. The effort had a humble start in the mid-1980s. Yet, within ten years, the number of local technical staff grew to 3,000. Today, the number is approaching 10,000.

Market-specific demand also pushes R&D to relocate. As Dr. Halvorsen put it, "when success depends on [geographical] closeness, … you need to do design in close loop with the rest of the activities." Furthermore, overseas R&D might well find its way back into the U.S. As explained by Dr. Brown, "The rise of the middle class in China and India at 1/10 of the price point [of the U.S.]" could spur innovations at 1/10 of the price point. Innovations taking place in China or India might be totally unheard of in the U.S. and eventually finds its way into the U.S. market.

The Coordination of Global R&D

While the globalization of R&D brings many promises, it also poses acute challenges to firms that need to coordinate R&D efforts across national boundaries. As Professor William Miller pointed out, "Increase in R&D cost forces specialization. Then you have to put together an assembly of specialists. The problem is that they are everywhere. Therefore, being able to pull them together becomes the differentiator." The story of Li & Fung serves as a perfect example. Li & Fung is a global leader in the apparel business. In 2002, the company contracted with 7,500 factories in 37 countries and generated a revenue of $5 billion. In an industry with thin margins of a few percent, the company continues to uphold a return-on-equity of 30-50%. Yet, Li & Fung owns no factories. Its competitive advantage lies entirely in its expertise in assessing and orchestrating the unique capabilities of each of the 7,500 suppliers. As Dr. Brown summed up, "Making money will depend less on what you own than on what you can mobilize--[i.e. the ability to] orchestrate."

In a parallel argument, Dr. Halvorsen proposed the new model of "meta-national" R&D. Different from the traditional multinational setup, where R&D is orchestrated from the center and diffused to the peripheral, in a meta-national setup, innovation for different parts of the system are consciously placed in different parts of the world. Advances are made in parallel and feedbacks flow bi-directionally.

An even more decentralized model was advanced by Dr. Brown. Dubbed a "swarm ecosystem," such a system is characterized by one (or more) assemblers and hyper-competition among a constellation of component suppliers. The assembler merely provides the focal model with no detailed design, and leaves it to the component suppliers to compete for coming up with the best fit. In this model, the assembler does not orchestrate the development process from top-down; rather, progress is made from the bottom-up. Yet, at the end of the day, only the fittest component suppliers survive and the result is a highly efficient and competitive system that best exploits its own niches.

Other Issues

Panelists and the audience also engaged in lively discussions about intellectual property rights, organizational learning, institutional innovations, the role of public policy, and the impact of culture on innovation. The globalization of R&D--particularly rising competencies in Greater China and their network of relations to Silicon Valley and their worldwide implications--is a new priority area of research for SPRIE.

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U.S. Policy toward the Korean Peninsula

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This program is co-sponsored by The Institute of Foreign Affairs and National Security (IFANS) and Stanford Institute for International Studies (SIIS).

It will be held in Seoul, Korea to discuss U.S. Foreign Policy Toward Korean Peninsula. Coit Blacker, Director of SIIS, William Perry, Senior Fellow of SIIS, Gi-Wook Shin, Director of Korean Studies Program and Dan Okimoto, Director Emeritus, Shorenstein APARC will be presenting in this timely conference.

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Ruby Hall Guest House
The Shilla Hotel
Seoul, Korea

Coit D. Blacker Speaker
William J. Perry Speaker

Gi-Wook Shin

Shorenstein APARC
Encina Hall E301
616 Jane Stanford Way
Stanford, CA 94305-6055
(650) 724-8480 (650) 723-6530
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Senior Fellow at the Freeman Spogli Institute for International Studies
Professor of Sociology
William J. Perry Professor of Contemporary Korea
Professor, by Courtesy, of East Asian Languages & Cultures
Gi-Wook Shin_0.jpg PhD

Gi-Wook Shin is the William J. Perry Professor of Contemporary Korea in the Department of Sociology, senior fellow at the Freeman Spogli Institute for International Studies, and the founding director of the Korea Program at the Walter H. Shorenstein Asia-Pacific Research Center (APARC) since 2001, all at Stanford University. In May 2024, Shin also launched the Taiwan Program at APARC. He served as director of APARC for two decades (2005-2025). As a historical-comparative and political sociologist, his research has concentrated on social movements, nationalism, development, democracy, migration, and international relations.

In Summer 2023, Shin launched the Stanford Next Asia Policy Lab (SNAPL), which is a new research initiative committed to addressing emergent social, cultural, economic, and political challenges in Asia. Across four research themes– “Talent Flows and Development,” “Nationalism and Racism,” “U.S.-Asia Relations,” and “Democratic Crisis and Reform”–the lab brings scholars and students to produce interdisciplinary, problem-oriented, policy-relevant, and comparative studies and publications. Shin’s latest book, The Four Talent Giants, a comparative study of talent strategies of Japan, Australia, China, and India to be published by Stanford University Press in the summer of 2025, is an outcome of SNAPL.

Shin is also the author/editor of twenty-seven books and numerous articles. His books include The Four Talent Giants: National Strategies for Human Resource Development Across Japan, Australia, China, and India (2025); Korean Democracy in Crisis: The Threat of Illiberalism, Populism, and Polarization (2022); The North Korean Conundrum: Balancing Human Rights and Nuclear Security (2021); Superficial Korea (2017); Divergent Memories: Opinion Leaders and the Asia-Pacific War (2016); Global Talent: Skilled Labor as Social Capital in Korea (2015); Criminality, Collaboration, and Reconciliation: Europe and Asia Confronts the Memory of World War II (2014); New Challenges for Maturing Democracies in Korea and Taiwan (2014); History Textbooks and the Wars in Asia: Divided Memories (2011); South Korean Social Movements: From Democracy to Civil Society (2011); One Alliance, Two Lenses: U.S.-Korea Relations in a New Era (2010); Cross Currents: Regionalism and Nationalism in Northeast Asia (2007);  and Ethnic Nationalism in Korea: Genealogy, Politics, and Legacy (2006). Due to the wide popularity of his publications, many have been translated and distributed to Korean audiences. His articles have appeared in academic and policy journals, including American Journal of Sociology, World Development, Comparative Studies in Society and History, Political Science Quarterly, Journal of Asian Studies, Comparative Education, International Sociology, Nations and Nationalism, Pacific Affairs, Asian Survey, Journal of Democracy, and Foreign Affairs.

Shin is not only the recipient of numerous grants and fellowships, but also continues to actively raise funds for Korean/Asian studies at Stanford. He gives frequent lectures and seminars on topics ranging from Korean nationalism and politics to Korea's foreign relations, historical reconciliation in Northeast Asia, and talent strategies. He serves on councils and advisory boards in the United States and South Korea and promotes policy dialogue between the two allies. He regularly writes op-eds and gives interviews to the media in both Korean and English.

Before joining Stanford in 2001, Shin taught at the University of Iowa (1991-94) and the University of California, Los Angeles (1994-2001). After receiving his BA from Yonsei University in Korea, he was awarded his MA and PhD from the University of Washington in 1991.

Stanford Next Asia Policy Lab (SNAPL)

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Shin's Reflections on Korea

A monthly column in the Korean magazine Sindonga
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Director of the Korea Program and the Taiwan Program, Shorenstein Asia-Pacific Research Center
Director of Stanford Next Asia Policy Lab, APARC
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Daniel I. Okimoto

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Professor of Political Science, Emeritus
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A specialist on the political economy of Japan, Daniel Okimoto is a senior fellow emeritus of FSI, director emeritus of Shorenstein APARC, and a professor of political science emeritus at Stanford University. His fields of research include comparative political economy, Japanese politics, U.S.-Japan relations, high technology, economic interdependence in Asia, and international security.

During his 25-year tenure at Stanford, Okimoto served as a research fellow at the Hoover Institution and the Northeast Asia-United States Forum on International Policy, the predecessor organization to Shorenstein APARC, within CISAC. He also taught at the Aspen Institute for Humanistic Studies, the Stockholm School of Economics, and the Stanford Center in Berlin.

Okimoto co-founded Shorenstein APARC. He was the vice chairman of the Japan Committee of the National Research Council at the National Academy of Sciences, and of the Advisory Council of the Department of Politics at Princeton University. He received his BA in history from Princeton University, MA in East Asian studies from Harvard University, and PhD in political science from the University of Michigan.

He is the author of numerous books and articles, including Between MITI and the Market: Japanese Industrial Policy for High Technology; co-editor, with Takashi Inoguchi, of The Political Economy of Japan: International Context; and co-author, with Thomas P. Rohlen, of A United States Policy for the Changing Realities of East Asia: Toward a New Consensus.

Director Emeritus, Shorenstein APARC
FSI Senior Fellow, Emeritus
Daniel I. Okimoto Speaker
Tae-Kyu Han Chancellor Moderator IFANS
Seo-hang Lee Dean of Research Moderator IFANS
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Korea Program

Grappling with North Korea and Its Nuclear Diplomacy: Reflections on How Policy is Made and Why It Doesn't Always Succeed

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Charles Kartman has served since May 2001 as the Executive Director of KEDO, an international consortium established in 1995 to manage a $4.6 billion energy project in the Democratic People's Republic of Korea. Prior to that he was U.S. Special Envoy for the Korean Peace Talks and concurrently served as U.S. Representative to and Chairman of KEDO's Executive Board, until retiring from the Department of State in April 2001. From June 1996, Ambassador Kartman was Principal Deputy Assistant Secretary of State for East Asian and Pacific Affairs. He was Acting Assistant Secretary for much of 1997. He had previously served as Deputy Chief of Mission at the U.S. Embassy in Seoul, Director for Korean Affairs at the Department of State in Washington, and Political Counselor in Seoul.

Ambassador Kartman is recognized for his expertise on Northeast Asia, having earlier specialized on Japanese affairs, working as a political officer in the Embassy in Tokyo, Consul General in Sapporo, and twice in the office of Japanese Affairs at the Department of State. Ambassador Kartman also held a variety of other positions focused on Asia: in the Department on politico-military Affairs; for the Under Secretary for Political Affairs; and on loan to the Congress.

Mr. Kartman joined the State Department in 1975, after completion of a graduate program at Georgetown University. In his 26-year career, he received the Department's highest honors: a multiple winner of the Department's Superior Honor Award, the James Clement Dunn Award for outstanding service, the Secretary's Distinguished Honor Award, and the Secretary's Distinguished Service Award. He is married to Mary Kartman, a fellow graduate of Knox College in Galesburg, Illinois. They have two daughters.

A buffet lunch will be available to those who RSVP by Tuesday, February 22 to Debbie Warren at dawarren@stanford.edu or at 650-723-2408.

This seminar is part of the North Korea Seminar Series hosted by the Walter Shorenstein Forum.

Philippines Conference Room

Charles Kartman Executive Director Korean Peninsula Energy Development Organization (KEDO)
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