In conversation with Shorenstein APARC, Yong Lee, the SK Center Fellow, discusses his initial draw to architecture and urbanism, and the nexus of public policy and economics. Lee highlights some of his recent research activities focused on international sanctions on North Korea and educational policy as it relates to migration and housing patterns in South Korea. 

Your background is quite multifaceted, including years working in architecture and a master’s of public policy in addition to a doctorate in economics. How do all of these areas fit together to inform your research?

It took a while for me to figure out what I wanted to pursue as a career. As a high school student in Korea I had to choose a track that focused on either the physical sciences or the humanities/social sciences. At that age, it’s hard to know what you want to be. Simply because my father was an engineer, I chose the physical sciences track. When it was time to apply for college (one actually had to determine a major when applying for college back then), I became interested in international relations and wanted to become a diplomat. But given my training in the hard sciences and the fact that one had to choose a major when applying, I had to decide on a science or engineering major. After browsing through the library a few architecture books caught my eye, and I opted for architectural engineering as my major. 

I truly enjoyed my six years of architectural training but after working for an architectural firm for several years in Seoul, I realized I was more interested in the abstract ideas of architecture and urbanism and less of the actual design process that goes on in an architectural firm. I searched for my next career, became interested in urban and development policy, and pursued a master’s of public policy at Duke University. However, then I realized that economics would allow me to rigorously analyze the policy questions I was interested in. Fortunately, Brown University accepted me as a Ph.D. student and I eventually became an economist. It was through this search process, that I developed an interdisciplinary interest in policy relevant questions. My personal choices constrained by education policy, comparatively experiencing Korea’s transition while living between Korea and the United States each decade since the 1980s, and my interest in architecture and cities have shaped my research interest in economic development and growth with a focus on education, firms and cities.  And now being at FSI, I can immerse myself in international studies, something I had wanted to pursue all along. By joining Stanford, I think I finally discovered what I had wanted to do.

One of your research streams looks at the effects of sanctions on domestic populations, looking at the case study of North Korea. How did you derive data about the closed-off regime? What are your key findings?

Research on North Korea is challenging because of the dearth of data. I had been interested in how sanctions impact the domestic population, but to examine this question one would need regional level data within in North Korea. I decided to use the satellite night-lights data, which in recent years has been used as an alternative means to measure economic activity. I found that sanctions actually increase urban-rural inequality. An additional sanctions index increases the urban-rural luminosity gap by about 1 percent. However, if I focus on the more central urban areas the gap increases to about 2.6 percent. Since urban areas are more than ten times brighter than rural areas, the results imply that the gap further increases by 1 to 2.6 percent with additional sanctions.  Furthermore, I find that the urban areas actually get brighter while the rural areas get darker.

Another of your research focuses on the impact of 1970s education policy in South Korea on intergenerational mobility and migration. Can you explain this phenomenon? Does the case of South Korea relate to reform experiences in other countries?

Students in South Korea traditionally had to take an entrance exam to enter high schools. After the exam, high schools would choose students based on the exam scores. Given the variation in school quality, a hierarchy of high schools had existed and students who performed well would enter the top tier high schools. This system was heavily criticized since wealthier families could tutor children to prepare for the entrance exam. Eventually in the mid-1970s, the South Korean government abolished the exam-based system and moved to a school district based system where students would attend high schools based on residential location. By moving away from an exam system to a district system, policymakers hoped that educational opportunities would alleviate the persistence of inequality. However, what I find is that, to the contrary, the district system generated substantial sorting of households by income. Now wealthier households could simply move to districts and cities with the prestigious high schools. Given that the purchase of housing is purely determined by income, school quality became even more segregated by income and actually exacerbated the persistence of inequality across generations. This transition is now happening in several Chinese cities and in the United States – the sorting across school districts by educational outcome has created highly segregated towns. The Korea experiment allowed me to examine not just an equilibrium outcome, but also the transition when the policy changed.

In the coming year, you’ll be teaching courses related to the economies of East Asia. Can you provide an outlook on this?

I’ll be teaching an International Policy Studies course titled, “Economic Growth, Development, and Challenges of East Asia,” in the spring. The course will focus on China, Japan, and Korea, but also draw on Southeast Asian countries, when relevant. I will cover the rapid economic growth in recent decades and development policies pursued. However, I will also cover the current major economic challenges these countries face, some of which are rising income inequality, entrepreneurship, and an aging workforce. I hope to add to our rich set of courses by providing an economics and empirical viewpoint.

Tell us something we don’t know about you.

I sometimes split my sleep. That is, I go to bed to sleep for a few hours and then wake up in the middle of the dark, do some reading or work, and then sleep for one or two hours before I start my morning routine. It started during my high school years and it has stuck with me for quite a while now. Don’t worry, though. I sleep fine most of the time. I just sometimes enjoy the dead of the night.

The rise of China as a global and regional power has created areas where the interests of China and the United States overlap in competition, the senior U.S. military commander in the Pacific told a Stanford audience. But Admiral Samuel Locklear III, the commander of U.S. Pacific Command (USPACOM), rejected the traditional realpolitik argument, which predicts inevitable confrontation between the United States, a status quo power, and China, a rising power.

“Historians will say this will lead to conflict,” Locklear said, during an address at the Walter H. Shorenstein Asia-Pacific Research Center last Friday. “I don’t believe it has to.”

The United States and China have a “mutual skepticism of each other,” the Pacific Commander acknowledged, but he characterized the relationship as “collaborative, generally.”

He said the dangers of direct military confrontation between the two powers is low, but warned against Chinese tendencies to perceive the United States as engaged in an effort to ‘contain’ the expansion of China’s influence. Instead, Locklear urged China to work with the United States to build new security and economic structures in the region.

Economic interdependence between the countries makes it impossible for the two countries to avoid working together, he told the seminar, co-sponsored by the Center for International Security and Cooperation and the Freeman Spogli Institute for International Studies at Stanford University.

He said that China has also benefited from the security environment that the United States has helped shape and maintain in the region.

Locklear reminded the audience of the central importance of the vast area under his command, which stretches from the Indian subcontinent across the vast Pacific Ocean. More than nine out of 10 of the largest ports in the world are in the Asia-Pacific region, and over 70 percent of global trade passes through its waters. The U.S. rebalance to Asia, a policy pursued by the Obama administration as early as year 2009, largely happened because of the economic and political importance of that area.

The mutual interest in economic prosperity depends, however, on a stable security environment. Washington has an interest in maintaining the structure of security that has ensured peace for the last few decades. Beijing seeks to change the status quo, to build a regional system that reflects its growth as a power.

Locklear called on China to work with the United States and other nations in the region, such as Japan and Australia, as well as the countries of Southeast Asia, to take the current “patchwork quilt” of bilateral and multilateral alliances and build a basis to maintain economic interdependence and security. He pointed to the U.S.-led effort to form a Trans-Pacific Partnership as a 12-nation economic structure, which could eventually include China.

“We want China to be a net security contributor,” he said, “And my sense is that both the United States and the nations on the periphery of China are willing to allow China to do that – but with circumstances.” He said conditions for the United States included open access to shared domains in sea, air, space and cyberspace.

The Pacific Commander cautioned against the danger, however, of unintended conflict, fueled by territorial disputes and Chinese assertiveness that worries its neighbors. Locklear stressed the need for more dialogue, including among the militaries in the region, an effort that the U.S. Pacific Command is currently carrying out.

“There’s a trust deficit in Asia among the nations, as it relates in particular to China,” he said.

Relations have been so icy that the top political leaders of Japan and China didn’t meet for nearly two years, only breaking the divide for a 20-minute meeting at the Asia-Pacific Economic Summit (APEC) in Beijing last month.

Refusing to engage at the highest level has made it difficult for countries to work on solutions to shared problems. The region now sees a confluence of old and new challenges that could threaten global stability if ill-managed, said Locklear, who has led the U.S. military command in the Pacific since 2012.                 

For decades, China and Japan have been at odds about sovereignty claims over islands in the East China Sea. In the past, during the time of Deng Xiaoping’s rule in China, the two countries agreed to, as Deng reportedly put it, ‘kick the issue into the tall grass’ for future generations to deal with it. These disputes have resurfaced in recent years, threatening to trigger armed conflict between the air and naval forces of the two countries.

Locklear said he believed that China and Japan would avoid inadvertent escalation, thanks to improved communications and tight command and control over their forces. But he also warned  that at least seven nations have conflicting claims in the South China Sea, which could easily escalate into direct conflict.

These situations, paired with an upsurge in Chinese military spending and the growing belief that the United States is a declining power, raise doubts about China’s intentions in the region. China’s Asian neighbors increasingly question the intensions of the world’s most populous nation, and second largest economy.

“Is it a return to the old days where you had basic tributary states? Is that the model that China is looking for? Or is it a 21^st century model?”

Locklear said China and other nations in the Asia-Pacific, as well as the United States, need to work harder to form shared views and consensus, particularly among those who “own the guns.”

Dialogue and interactions among the militaries are crucial, especially those who are called upon to make quick decisions during a possible flashpoint, for instance an accidental clash of boats or planes.

“Trust really does fall in many ways to military leaders to get it right and to lead, to some degree, the politicians and the diplomats,” he said. Locklear spoke of a tangible example of collaboration in the Rim of the Pacific Exercise, also known as RIMPAC, hosted by USPACOM. Twenty-two countries participate in the world’s largest maritime warfare exercise in Hawaii, which this year included naval forces from China.

“Does it fix those friction points? No, it doesn’t.” But, Locklear concluded, “We hope that this kind of thing opens the door for future interaction.”

The audio file and transcript from the event can be accessed by clicking here. 

In March 2011, an earthquake and tsunami hit the eastern coast of Japan and caused one of the worst nuclear meltdowns ever seen. In the lead-up to that week, U.S. officials there were bracing themselves for a media firestorm following a controversial Wikileaks release, Japan’s new foreign minister was ushered into office, and an apology statement was delivered on behalf of the United States in Okinawa, explained the top U.S. diplomat who was posted there at the time.

“And that, was just a microcosm of all kinds of things going on during my tenure there,” said John Roos, who served as the U.S. ambassador to Japan from 2009 to 2013.

Speaking at Stanford, Ambassador Roos offered views on his tenure as ambassador at a seminar led by the Japan Program at the Walter H. Shorenstein Asia-Pacific Research Center (APARC). The diplomatic posting, underpinned by the strong U.S.-Japan alliance, proved an essential role for coordination of U.S. aid when the disaster struck.

Roos spoke in conversation with Ambassador Michael Armacost, his counterpart who served in the same position from 1989 to 1993, who is now a distinguished fellow at Shorenstein APARC.

“By far, [it was] the biggest crisis I had to deal with in my career,” said Roos, who has years of experience in business and law, and is now the CEO of the Roos Group.

Roos said he first took steps to open lines of communication between local staff, and the Japanese and U.S. military commands there. He went with his team on a dozen trips across the country. Fact-finding missions were necessary to assess the situation, as much as they were symbolic in showing a commitment to the people of Japan, he said.

Asked about his background, Roos said his academic training was valuable throughout his career. He is a graduate of Stanford University and Stanford Law School.

Leaders tasked to coordinate response crisis efforts, especially those concerned with nuclear issues, are often across many intergovernmental organizations and in turn, lead to a conflicting set of opinions. He said his ability to navigate tough situations harkens back to his training at Stanford, which emphasized building consensus and thinking critically.

Later, Armacost also underscored the role of people – who’s involved and their individual personalities – and their influence on policy decisions.

“Personal relationships are so important,” Roos said, “they drive everything.”

People-to-people connections were a similar theme mirrored in Roos’ perspectives on the future of the Japanese economy and the country’s relations with neighboring countries. As ambassador, Roos started the Tomodachi Initiative, an educational exchange program linking young leaders from the United States and Japan.

Following the crisis, in 2012, Japan ushered in Prime Minister Shinzo Abe and the Liberal Democratic Party (LDP) became the ruling majority party. One facet of Abe’s vision includes a stimulus package, commonly referred to as ‘Abenomics,’ intended to restore the country’s economy after more than a decade of slow growth.

Roos said most Japanese have a tepid attitude toward Abe’s policy ever since implementation of the final round of policies which are intensely focused on structural reforms. The reforms are necessary to restart growth, he said, but the average citizen will likely feel an impact due to a paring down of resources across public services.

But, entrepreneurism provides a credible direction for the country’s economic revival, and could help carve out a defined role for Japan in the global marketplace.  

In Japan, “there is incredible innovation going on,” he said. Individuals and universities are producing a myriad of cutting-edge technologies, and the ecosystem to support this is growing, but not yet fully adopted.

He said a key driver behind Silicon Valley’s success is the spirit of entrepreneurism widely shared there. People actively take risks, exchange ideas, and most importantly, embrace failure.

Roos said he carried that message with him wherever he went in Japan, often referencing the example of Mr. Abe who came back for a second term as prime minister. “That’s the culture of Silicon Valley, and that’s the culture that we want to promote in Japan.”

Asia-Pacific leaders recently met in Beijing at the annual APEC summit, and after two days of discussion, concluded with some significant pledges and remarkable moments. President Xi Jinping of China and Prime Minister Shinzo Abe of Japan held a landmark meeting, and the United States and China discussed two agreements that are both symbolic, and lay groundwork for regional progress, say Stanford scholars.

High-level intergovernmental meetings are often more theatre than substance, but this year the 21-member Asia-Pacific Economic Cooperation, the oldest trans-Pacific regional organization, delivered important messages and may spur actions by member governments.

“Any summit is a ‘hurry up, get this done’ motivator,” says Thomas Fingar, the Oksenberg-Rohlen Distinguished Fellow at the Freeman Spogli Institute for International Studies. “The head of state goes to the meeting – and generally speaking – he doesn’t want to arrive and say ‘my guys were asleep for the last year.’”

Fingar says the APEC summit prodded countries to work on “deliverables,” particularly the goals and projects on the agenda from previous meetings. He recently returned from Beijing, and shared his perspectives with students in the Asia-Pacific Scholars Program.

Writing for the East Asia Forum, Donald Emmerson, director of the Southeast Asia Program at the Walter H. Shorenstein Asia-Pacific Research Center, said many of the commitments declared at the APEC summit, and at the subsequent meetings of the G20 in Australia and the Association of Southeast Asian Nations in Myanmar, will have implications for global governance, particularly as China holds a more influential role in the region.

APEC countries account for over 40 percent of the world’s population and nearly half of global trade – and true to form, the grand vision of the summit is to advance regional economic integration.

Yet, “the ancillary things – things that went on in the margins – are in many ways more important,” Fingar says, referring to areas outside of the summit’s obvious focus, and what’s discussed on the sidelines of the public talks.

Image

Key outcomes from the 2014 gathering include:

• The leaders of Japan and China met for the first time since coming into office, afterward acknowledging that the two countries have “disagreements” in their official statements. Of the Xi-Abe meeting, Fingar says, “it helps clear the way for lower level bureaucrats to go to work on real issues."

• The United States and China announced a proposal to extend visas for students and businesspeople on both sides. While the immediate effects would be helpful, the change is symbolically superior. “You don’t give 5-10 year visas to adversaries,” he says, it shows that “‘we’re in [the relationship] for the long-term.’”

• China proposed the development of a new “Silk Road,” pledging $40 billion in resources toward infrastructure projects shared with South and Central Asian neighbors. “It’s tying the region together and creating economy-of-scale possibilities for other countries,” he says. “A real win-win situation.”

• The United States and China, the world’s two largest energy consumers, announced bilateral plans to cut carbon emissions over the next two decades. “It’s significant because those two countries must be the ones to lead the world in this area. Unless we are seen to be in basic agreement, others will hold back.”

• China codified the Asian Infrastructure Investment Bank (AIIB), a global financial institution intended as an alternative to institutions like the World Bank. “China has been frustrated with its role in existing international institutions,” Fingar says, explaining a likely motivation behind the AIIB’s creation.

Emmerson said the outcomes of the APEC summit from the U.S.-China standpoint were better than expected, speaking to McClatchy News. The visa and climate deals, as well as their commitment to lowering global tariffs on IT products, will lessen chances of conflict between the two countries. 

However, the summit did leave some areas unsolved. One of the most important is the Trans-Pacific Partnership (TPP), a trade pact proposed by the United States that includes 11 others countries in the region, but does not yet include China.

Leaders “made positive noises” coming out of the TPP discussions, Fingar says, but nothing was passed. The gravity and complexity of trade-related issues, especially agriculture and intellectual property, is likely to blame for slow action.

The city of Cupertino, California, is only about 15km from Stanford University, where I teach and live. It is home to the headquarters of Apple, a global leader in the computer and smartphone industries. It is also home to many Indian and Chinese engineers who are essential to Silicon Valley's technological innovation. One can easily find a variety of Asian restaurants and shops along the palm tree-lined streets -- an interesting Californian scene with a distinctly Asian flavor.

Many Asians -- businesspeople, officials and experts -- visit Silicon Valley hoping to unlock its secrets, to learn why it is such a hotbed of innovation. One known "secret" here, often overlooked by Asian visitors, is the importance of cultural diversity. More than half of the area's startups, including Intel, Yahoo, eBay and Google, were established by immigrants, and these companies owe much of their success to the contributions of Chinese and Indian engineers. Cultural diversity can be found throughout the schools, stores and streets, as well as the enterprises, there.

In Israel, too

The circumstances are quite similar in Israel, another economy known for technological innovation. Following the collapse of the Soviet Union in the early 1990s, Israel admitted about 850,000 immigrants. More than 40 percent of the new arrivals were college professors, scientists and engineers, many of whom had abundant experience in research and development. These people played a critical role in promoting economic development and scientific and technological innovation in Israel. Many languages besides Hebrew can be heard on the streets of Tel Aviv, one of the country's largest cities.

It is no accident that Silicon Valley and Israel have become global high-tech centers. They opened their doors to a wide range of talented immigrants. Above all, an atypical sociocultural ecosystem -- a culture that respects and promotes the value of diversity -- is alive in both places.

In the United States, diversity is a key criterion in college admissions and faculty recruitment. Although "affirmative action" has disappeared in many parts of the country, diversity has come to play a key role in American university policies. Most American colleges, including Stanford, have a "diversity office" to promote diversity among students, faculty and staff. At Stanford, white students constitute less than 40 percent of the student body, and almost a quarter of the faculty come from minority groups. Similarly, only five of the 16 staff members at our Shorenstein Asia-Pacific Research Center are Caucasian, with the rest from ethnic and national minorities.

 The same can be said of leading American corporations, many of which have institutionalized "diversity management" to capitalize on the range of individual differences and talents to increase organizational effectiveness. Of course, basic knowledge and skills are prerequisites. But Americans seem to firmly believe that having a variety of backgrounds and experiences can help hatch new ideas and innovative technologies. Perhaps this is why they say that culture accounts for 90 percent of the innovation in products from Silicon Valley, with technology claiming only 10 percent.

The power of diversity

Scott E. Page, professor of complex systems, political science and economics at the University of Michigan, shows in his book "The Difference" how "the power of diversity creates better groups, firms, schools, and societies." In his view, collections of people with diverse perspectives and heuristics outperform collections of people who rely on homogeneous ones, and the key to optimizing efficiency in a group is diversity. In this work, Page pays particular attention to the importance of "identity diversity," that is, differences in race, ethnicity, gender, social status and the like.

To be sure, Asian countries such as Japan and South Korea are different from settler societies such as the U.S. With the influx of foreigners, however, even such ethnically homogeneous Asian societies are becoming multiethnic. In addition to unskilled labor and foreign brides, the number of overseas students and professors is rising at Japanese and South Korean universities, while Japanese and South Korean companies are actively hiring foreign professionals. Both countries are opening their doors to foreigners, though in limited numbers, and have made multiculturalism a key policy objective.

Still, they fall far short of recognizing the value of diversity. While Japanese and South Korean institutes of higher learning have been trying to attract more foreign students, they have been doing so mainly to make up for the declining student population at home and because university ranking agencies use the ratio of foreign students and professors as a key yardstick for measuring internationalization. The approaches of these two countries to multiculturalism are also largely focused on assimilating foreigners into their own cultures and systems. People from abroad are seldom accepted as "permanent" members of their societies or regarded as valuable assets. Japan and South Korea may have become multiethnic, but they are not multicultural.

One of the biggest challenges facing foreign residents in Japan and South Korea is the lack of understanding of their religious and cultural beliefs. Indian engineers working in South Korea complain of the poor acceptance of Indians by the local population, and of an especially poor understanding of their religion and culture. Foreign professors teaching at Japanese universities tell me they live as "foreigners," never accepted into the "inner" circles. It is unlikely that these talented people would like to work long term for universities and enterprises that are unable to embrace differences in skin color and culture. Under these circumstances, even if some foreign professionals happen to be hired, they may not be able to realize the full potential of their abilities, let alone bring about innovation.

All these people with different ethnic and national backgrounds should no longer be regarded simply as "temporary" residents to fill particular needs. Rather, by promoting the cultural diversity of Japanese and South Korean society, they should be viewed as important assets and potential sources of innovation. It is an urgent but difficult task to institutionalize the value of diversity in societies long accustomed to the notion of a single-race nation.

Born on campuses

A country's global competitiveness can hardly be improved if its society is reluctant to respect differences and understand other groups. Universities, in particular, should help their students experience diversity through the regular curriculum and extracurricular activities. Foreign students can serve as excellent resources for promoting diversity. Universities are ideal settings for various groups of students to meet, generate new ideas and interact with one another. It is no accident that many of the innovative ideas associated with Microsoft, Yahoo, Google and Facebook were all born on American university campuses, where diversity is embraced.

Empirical research should be carried out to examine how cultural diversity can bring about technological innovation in Japanese and South Korean society. Based on such studies, governments and private enterprises should take into account diversity in personnel hiring, training, management and evaluation. These same institutions should also systematically work to create and support an organizational culture that values diversity.

Could those Indian and Chinese engineers working in Silicon Valley have brought about the same kind of technological innovation if they had remained in their own countries? Could they accomplish the same feat in Japan and South Korea? How can Asian countries create the kind of ecosystem necessary for promoting a flexible culture of accommodating a broad spectrum of talents? We first need to reflect deeply on these questions before trying to emulate the success of Silicon Valley.

Shin recently coauthored the paper, "Embracing Diversity in Higher Education: Comparing Discourses in the U.S., Europe, and Asia" with Yonsei University Professor Rennie J. Moon. It is one outcome of their research project, Diversity and Tolerance in Korea and Asia. This Nikkei Asian Review article was originally carried on Nov. 20 and reposted with permission.

Recently, North Korea suddenly released the two remaining Americans it was holding – Kennth Bae and Matthew Todd Miller. The news made headlines internationally, and the drama of it was heightened because the United States’ top spy flew into Pyongyang and secured their release. Not surprisingly, the event raised many questions and is prompting a great deal speculation. Why did North Korea release the Americans? Why choose the U.S. Director of National Intelligence James R. Clapper to receive the handover? And, especially, what are the implications for the troubling situation on the Korean Peninsula?

David Straub, associate director of the Korea Program at Stanford University's Walter H. Shorenstein Asia-Pacific Research Center, has had direct experience with similar situations. In 2009, he accompanied former U.S. President Bill Clinton on a mission to Pyongyang to bring home two incarcerated American journalists, Laura Ling and Euna Lee. As the State Department’s Korean affairs deputy director (1996-98) and director (2002-04), he was involved in efforts to obtain the release of a number of other Americans held in North Korea. Here, Straub offers his analysis of the recent event.

Kenneth Bae was sentenced to 15 years in prison and had already been held nearly two years when he was released on Saturday, while Matthew Todd Miller was arrested in April of this year and subsequently sentenced to six years in prison. Why did you think North Korea suddenly returned them?

The surprise is not that they were released. The North Koreans have returned every American they have held during the past few decades. While some Americans have been arrested for reasons that the North Koreans themselves might have thought valid, such as the charge that Bae was seeking to bring down the regime by his Christian proselytization, in every case the North Koreans treated the Americans as pawns. In fact, in the case of these two Americans and of Jeffrey Fowle, the third incarcerated American who was released last month, the U.S. government actually publicly used the word “pawns” for the first time to describe the way Pyongyang was using them. While that risked angering the North Koreans and delaying the releases, it reflected increasing American frustration at the North Korean practice of holding American citizens hostage to force the U.S. government to send senior figures to be seen as pleading for their release. North Korea intended to release Bae all along—after it got as much as it could of what it wanted.

But why did Pyongyang release the Americans at this particular time?

The reasons for that remain unclear. Many observers have speculated that the North Koreans wanted to ease U.S. and U.N. criticism of their human rights situation. The U.N. General Assembly will soon consider a measure, based on a damning U.N. investigative report, to hold top North Korean officials accountable for crimes against humanity due to the way they treat their own people. Others have speculated that the North Koreans wanted to release the Americans before the Asia-Pacific Economic Cooperation (APEC) summit this week in Beijing, to make it easier for Chinese President Xi Jinping to press President Obama to agree to return to the Chinese-led Six Party Talks on the North Korean nuclear issue. Both of these are plausible but they are speculation –only North Korean leaders really know.

But there is also an American angle to the timing. All along, the North Koreans have been demanding that the United States send a very senior current U.S. official to receive the release of incarcerated Americans. In the past, these roles have been performed by both very senior former U.S. officials, such as Presidents Carter and Clinton, and current but relatively low-ranking American officials, such as Ambassador Robert King, the United States’ special envoy for North Korean human rights issues. Almost from the start in this case, the U.S. was prepared to send Ambassador King but the North Koreans rejected him as being too junior. Instead, the North Koreans demanded a very senior sitting U.S. official come; they stuck with that demand and ultimately were successful. After a long process of negotiations and signaling, the two sides very recently agreed that National Intelligence Director Clapper would be appropriate. U.S. officials have publicly suggested that they were the ones who nominated Clapper. They say that the choice of this non-diplomat was intended to underline to all concerned that the sole purpose was to obtain the release of the remaining Americans. I am convinced that that was in fact the case. The U.S. government is naturally loath to talk substance with the North Koreans in a situation such as this when it is in fact acting under duress.

Then why didn’t the United States send Director Clapper sooner?

The United States does not want to encourage the North Korean leaders to think that they can coerce the United States by taking American citizens hostages. That might only result in more such hostage-taking. U.S. officials thus held firm for a long time and decided to send Mr. Clapper only when they concluded there was no better way to obtain the release of our citizens. U.S. officials have suggested that the North Koreans sent a signal a few weeks ago that triggered this particular decision, but exactly what was behind this exact timing remains to be disclosed.

Does the dispatch of someone as senior as Clapper increase the likelihood of more hostage-taking?

Unfortunately, it may. From a North Korean perspective, they got their basic demand—for a very senior sitting official—and it was the Americans who blinked. They also got a letter from President Obama to North Korean leader Kim Jong Un, even if it was only “brief” and just certified that Clapper was his envoy for the purpose of retrieving the Americans. The North Koreans claim that President Obama “earnestly apologized”; the U.S. government has flatly denied making any apology. I’m sure U.S. officials weighed the concern about encouraging the North Koreans in further misbehavior against their desire to return Bae and Miller. Bae in particular had been held longer than any other American so far and he has a number of health issues. In response to the recent spate of hostage-taking, last year the State Department, for the first time, strongly warned Americans against all travel to North Korea. After the release of Bae and Miller, U.S. officials reiterated that warning.

You said that the North Koreans do this to force senior Americans to be seen as pleading for the release of incarcerated Americans. Do the North Koreans really go to so much trouble only for that?

Some observers say that the North Koreans do this because the United States refuses to talk and negotiate with them and that this is their desperate effort to try to negotiate and seek better relations with the United States. I’m afraid that is very much wishful thinking. The United States and North Korea actually communicate directly through North Korean diplomats assigned to U.N. headquarters in New York, as a North Korean ambassador there recently confirmed in an interview with Voice of America. The United States is also prepared to negotiate with North Korea, but only if it credibly signals that it is willing to negotiate an end to its nuclear weapons program. North Korea’s current stated position is that it is ready to return “unconditionally” to the Six Party Talks, but that is transparently cynical. The North Koreans have already created conditions, by using the Six Party Talks as a cover to achieve a nuclear weapons breakthrough. The North Korean now seriously say that they will not give up nuclear weapons until the United States gives up its own. Under such conditions, it would be a farce for the United States to agree to a resumption of Six Party Talks.

After accompanying President Clinton to North Korea in 2009, including sitting in on his meeting with its previous ruler, Kim Jong Il, I was even more puzzled as to why the North Koreans would go to so much trouble to force senior Americans to come to retrieve incarcerated American citizens. After much reflection, my working hypothesis is that the North Koreans must get great psychological satisfaction from forcing the U.S. government to bend to their will, even if they get nothing substantive in return—even if, in fact, they only increase the American disinclination to deal with them otherwise. In some cases, such as President Clinton’s visit, they also propagandize the event to their own people. So far, they have not yet reported to their people on Clapper’s visit. It will be interesting to see if they do.

A couple of quick final questions: do you think, as some media have suggested, that the Chinese government or private citizens played a role as intermediaries in the release of the Americans? And do you give any credence to some South Korean commentators’ belief that the timing of the release was related to the American mid-term elections?

It’s amazing to see all the people who come out of the woodwork after such an event, claiming to have played a role. Even Dennis Rodman is now saying he helped by sending a letter to Kim Jong Un. I know that many private citizens talked with North Korea officials about these cases and I would imagine that the Chinese government also urged Pyongyang to do the right thing, but I am confident that it was talks American and North Korean officials held that resulted in the release. As for speculation about the timing being connected to the American elections, that’s a common misperception in South Korea and probably North Korea as well. As any American knows, the idea that obtaining the release of these Americans from North Korea would somehow help the Democrats in the election is of course ludicrous.

David Straub also spoke with Radio Free Asia about the release of the American prisoners from North Korea. He says the release has nothing to do with North Korea's nuclear initiative, saying that issue must be addressed on its own merits. The article is in the Korean language and can be accessed by clicking here.

On 10 Nov. 2014 a summit of the Asia-Pacific Economic Cooperation (APEC) forum will convene in Beijing, followed in rapid succession by the East Asia Summit in Naypyidaw and the G20 in Brisbane.

Much of what will be said and done at these events will implicate the tectonics of nascent global governance set in motion by China’s campaign for greater influence in Asia.

At the APEC summit, Chinese president Xi Jinping will stress the need for massive spending on infrastructure in Asia. He will tout China’s sponsorship of a Beijing-based Asian Infrastructure Investment Bank (AIIB) that would operate outside of, and potentially compete with, the American-led World Bank and the Japanese-led Asian Development Bank (ABD).

Many will welcome the AIIB as evidence of China’s willingness to assume responsibility for public goods in a rebalanced post-Cold War world whose needs exceed the resources of existing global institutions. But will ‘public’ goods benefit the public if their terms are not made public? In 2014 China ranked 68th of 68 donors in the Aid Transparency Index compared with the 5th-place ADB and the 7th-place World Bank. Given the commercial importance of cyberspace, it is also concerning that China is the worst violator of the rights of internet users in the latest Freedom House ranking of 60 countries on that variable.

In the ADB as of 2013, Tokyo held respective 16 and 13 per cent shares of subscribed capital and voting power. Understandably, at the AIIB’s inception, Beijing’s shares will be far larger. But how soon and by how much will China allow its initial dominance to be diluted by other contributing members? Concerns over Beijing’s intentions may already underlie the wait-and-see attitudes of Tokyo, Seoul, and Canberra as to whether to join the new bank.

Another alternative to international lending by traditional sources is the New Development Bank (NDB) recently innovated by the BRICS. Headquartered in Shanghai, it will be led first by an Indian.

In the formal sessions of APEC, lip service will be paid to its hopes for free and open trade and investment worldwide by 2020. But in the corridors delegates will debate whether China’s AIIB and the BRICS’s NDB will further ‘responsible stakeholding’ and shared governance by emerging states in a global economy no longer centred on the West. Some may fear that Xi wants to use these new institutions to tie Asia more tightly and deferentially to Beijing in a web of ‘Silk Roads’ that will disproportionally serve Chinese interests.

China’s ambitions will also be questioned at the East Asia Summit in Myanmar, especially regarding the South China Sea (SCS). China will again be asked to clarify its generously self-serving U-shaped line: Does Beijing really want to possess or control nearly all of that body of water? Southeast Asians will again urge China to implement the Document on Conduct (DOC) in the South China Sea that it signed with all ten members of ASEAN in 2002. China will again be implored to accept a future Code of Conduct (COC) regulating state behaviour in the SCS. But Beijing will likely continue to delay and demur, while ASEAN’s historic centrality to Asian region-formation continues to diminish.

It is symbolic of ASEAN’s plight that the group has been too divided to express more than ‘serious concern’ over ‘developments’ in the SCS — untethered abstractions that leave China happily uncharged. In ASEAN’s field of vision, the COC has become an entrenched mirage. Calls for a code are repetitively embedded in ASEAN’s communiqués because it is one of the few things the members can agree should happen. Thanks to Chinese foot-dragging, however, the goal keeps receding and Beijing keeps doing whatever it wants to in the SCS.

Chinese activity now includes a unilateral land-reclaiming and construction work at the specks that China already controls — actions that violate the spirit if not the letter of the DOC.

Some US$5.3 trillion in goods are shipped annually across the SCS, including US$1.2 trillion to or from the United States. China has unilaterally declared and begun to enforce a monopoly on fishing in more than half of the SCS. If multilaterally negotiated limitations are being flouted or forestalled in this key regional instance, how much confidence can one have that Xi will cooperate in Asia on behalf of a rules-based order at the global level?

None of this means denying the overdue need to restructure existing institutions to accommodate the voices and priorities of rising powers. But time is running out. Convincingly dire warnings in the just-released UN report on climate change render existential the need for concerted global action. Nationalism and nationalistic regionalism — by Beijing, Moscow or Washington — must not derail progress toward the constructive rebalancing and sharing of global governance. Shifting power to emerging actors should facilitate not frustrate that process. The twenty-fifth anniversary of the fall of one wall in Berlin should not be spent building another in Asia.

This article was originally carried by the East Asia Forum on Nov. 7 and reposted with permission.