Energy

This image is having trouble loading!FSI researchers examine the role of energy sources from regulatory, economic and societal angles. The Program on Energy and Sustainable Development (PESD) investigates how the production and consumption of energy affect human welfare and environmental quality. Professors assess natural gas and coal markets, as well as the smart energy grid and how to create effective climate policy in an imperfect world. This includes how state-owned enterprises – like oil companies – affect energy markets around the world. Regulatory barriers are examined for understanding obstacles to lowering carbon in energy services. Realistic cap and trade policies in California are studied, as is the creation of a giant coal market in China.

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George Krompacky
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"The Shape of Things to Come," a conference presented by the Stanford Program on Regions of Innovation and Entrepreneurship on January 17-18, 2008, featured keynotes by John Hagel, co-author of The Only Sustainable Edge and Co-Chairman of the Deloitte Center for Edge Innovation, and Dr. Henry Chesbrough, Executive Director of the Center for Open Innovation at the Haas School of Business at UC Berkeley and author of Open Innovation.

The keynotes bookended Thursday's forum, "New Patterns and Paradigms in Global Innovation Networks," and were a prelude to Friday's academic workshop, "A Global Perspective on Regional Innovation Indicators." Hagel's talk focused on the need for a more explicit taxonomy of innovative collaboration and discussed the "huge need to define pragmatic migration paths"--routes that the average manager and company can take to reach the opportunities that normally are only accessible to cutting-edge companies.

The forum closed with a presentation by Dr. Henry Chesbrough, who provided an overview on the globalization of innovation in the Chinese semiconductor industry, which he sees as split into a "globally oriented, globally competitive" industry segment and a domestically-oriented segment with "backward technologies" and lacking access to capital. The question, he explained, is how China will shift its resources, now entrenched in the latter, to the former, competitive segment.

Chesbrough finished with a discussion of intellectual property rights (IPR) in China, looking at flows of knowledge and current IPR challenges; he mentioned some surprising developments--the rise of businesses to "promote the legal exchange of IP" and the growth of a domestic constituency for stronger IPR--and discussed future implications for IPR in China.

In between the keynotes, the forum featured sessions on innovation in internet services in China, the role of venture capital as a network builder, and discussions on two rapidly moving industries: cleantech and thin film transistor LCD displays.

Conference materials, including presentations and audio files, will be made available on the SPRIE website.

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We are pleased to bring you the third article of the academic year in our series of Shorenstein APARC Dispatches. This month's piece comes from Dr. Phillip Lipscy, FSI Center Fellow and Assistant Professor, Political Science. Lipscy joined Shorenstein APARC in fall 2007 and his research interests focus on international relations and political economy, particularly as they relate to Japan and East Asia. He has been a Shorenstein APARC affiliate since his undergraduate years, when he studied under Professor Emeritus Danial Okimoto. He attended Harvard University for his doctoral studies.

Since the end of World War II, East Asia has often been characterized as a region with weak international organizations. There has been no regional integration project comparable to the European Union (EU). Cooperation on a wide variety of issues has tended to be ad hoc rather than institutionalized. Regional organizations, such as the Association of Southeast Asian Nations (ASEAN), have generally been weak or limited in scope, with some notable exceptions such as the Asian Development Bank.

However, in recent years, there are indications that the pattern of institutionalization in Asia is shifting. Since the end of the Cold War, regional cooperative arrangements have emerged and grown. With the addition of China, Japan, and South Korea, a revitalized ASEAN+3 is becoming a locus of economic cooperation. Many observers believe the Six Party Talks could be institutionalized to manage a broader set of security issues beyond North Korea. The Chiang Mai Initiative, a multilateral currency swap arrangement, might eventually develop into a monetary fund. Bilateral trade agreements are proliferating and could ultimately produce a regional free trade zone.

Under the right circumstances, regionalism can complement the broader global order. However, to a significant extent, recent regional initiatives reflect an underlying dissatisfaction with the global institutional architecture. The Chiang Mai Initiative emerged after the Asian financial crisis, from a widespread sense that the International Monetary Fund (IMF) underrepresented Asian interests and therefore imposed overly harsh conditionality on the affected states. Paralysis at the Doha Round negotiations of the World Trade Organization (WTO) has facilitated the rapid expansion of bilateral trade initiatives. The North Korean nuclear problem is precisely the sort of collective security issue the United Nations (UN) Security Council was envisioned to deal with, but the rigidity of both Security Council membership and its decision-making procedures has rendered this impractical.

Historically, international organizations have often exhibited path dependence, or a resistance to change. For example, the permanent members of the UN Security Council still remain the victorious powers of World War II. The distribution of voting shares in the IMF and World Bank has consistently overrepresented inception members such as Canada, France, and the United Kingdom, at the expense of both the defeated powers of World War II and newly independent and developing states. The Organization for Economic Cooperation and Development (OECD) remains a predominantly European institution despite the rapid growth of Asia. Across a wide range of international organizations, Asian nationals continue to be underrepresented among employees, and in some cases leading positions are allocated to Western nationals by convention, as in the IMF and World Bank.

However, as Asia continues its rapid growth, the active involvement of Asian states in the global order will become paramount. Including India, broader East Asia encompasses more than half of the world's population. The region already accounts for about one-third of global oil consumption and CO2 emissions, and this is only likely to grow in the future. By 2020, in purchasing power parity terms, regional GDP will likely exceed that of the United States and the EU combined. Over the course of the twenty-first century, Asia's economic and geopolitical weight in the world will, in all likelihood, come to rival that of Europe in the nineteenth century. With Asia's dramatic rise, Asian problems will become increasingly indistinguishable from global problems.

Thus, a critical question in the coming decades will be whether the contemporary international organizational architecture will be able to smoothly incorporate the rising states of broader East Asia. Sweeping geopolitical shifts have often created instability in the international system -- the waning of Pax Britannica in the early twentieth century precipitated two world wars and a global depression, as the world lacked a geopolitical and economic stabilizing force in times of crisis. If universalistic institutions such as the UN, IMF, and WTO are seen as unresponsive to Asian concerns, two potentially destabilizing outcomes are likely. First, Asian regional cooperation may further intensify. For example, a full-fledged Asian Monetary Fund that acts independently of the IMF could be formed, or an Asian Free Trade Area established. Such institutions have the potential to undermine existing international organizations such as the IMF and WTO. Eventually, Asian institutions may supersede existing global institutions, but only after contestation and needless replication. A second destabilizing outcome could be that Asian states disengage from the U.S.-backed international order without developing strong regional institutions. This might create a situation akin to U.S. nonparticipation in the League of Nations in the interwar years. Without active involvement of some of the most important players, international organizations will become less effective at facilitating cooperation and resolving major disputes. International relations will become more anarchic and cooperation more ad hoc.

The rise of Asia will likely provide the first major stress test for the global organizational architecture that the United States has constructed and underpinned since the end of World War II. Of course, there are also some grounds for optimism. Among other things, China and Vietnam have joined the WTO, ongoing IMF quota revisions have produced ad hoc increases to South Korea and China, and Asian nationals increasingly play important roles in major international organizations -- e.g. UN Secretary General Ban Ki-moon and former UN High Commissioner for Refugees Sadako Ogata. It is paramount that concerns about Asian representation and interests in universalistic international organizations be addressed so that the rise of Asia contributes to -- rather than undermines -- the stability of the international order.

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For the past sixty years, most analysts have assumed that Japan's security policies would reinforce American interests in Asia. The political and military profile of Asia is changing rapidly, however. Korea's nuclear program, China's rise, and the relative decline of US power have commanded strategic review in Tokyo just as they have in Washington. What is the next step for Japan's security policy? Will confluence with U.S. interests--and the alliance--survive intact? Will it be transformed? Will Japan become more autonomous?

Richard J. Samuels is Ford International Professor of Political Science and director of the Center for International Studies. He is also the founding director of the MIT Japan Program. In 2001 he became chairman of the Japan-US Friendship Commission, an independent federal grant-making agency that supports Japanese studies and policy-oriented research in the United States. In 2005 he was elected a member of the American Academy of Arts and Sciences.

Professor Samuels served as head of the MIT Department of Political Science between 1992-1997 and as vice-chairman of the Committee on Japan of the National Research Council until 1996. Grants from the Fulbright Commission, the Abe Fellowship Fund, the National Science Foundation, and the Smith Richardson Foundation have supported nine years of field research in Japan.

Dr. Samuels' recent book, Securing Japan, was published in 2007 by Cornell University Press.

His previous books include Machiavelli's Children: Leaders and Their Legacies in Italy and Japan, a comparative political and economic history of political leadership in Italy and Japan, "Rich Nation, Strong Army": National Security and the Technological Transformation of Japan, The Business of the Japanese State: Energy Markets in Comparative and Historical Perspective, and Politics of Regional Policy in Japan.

His articles have appeared in International Organization, Foreign Affairs, International Security, The Journal of Modern Italian Studies, The Journal of Japanese Studies, Daedalus, The Washington Quarterly, and other scholarly journals.

Dr. Samuels received his PhD from the Massachusetts Institute of Technology in 1980.

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Richard Samuels Ford International Professor of Political Science and Director of the Center for International Studies Speaker Massachusetts Institute of Technology
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Patterns and paradigms for innovation are fundamentally changing--they are becoming more global, multidisciplinary, collaborative and complex. At the same time, innovation is extending far beyond disruptive technologies which lead to new products. Increasingly, innovation is being found in services, processes, business models and policies. At the center of these changes are global innovation networks.

The Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) is bringing together thinkers, investigators and practitioners from the U.S., Asia and Europe for a two-day international, cross-disciplinary discussion and debate on the understanding of innovation networks.

You are invited to attend the first day of this conference, a forum entitled, "The Shape of Things to Come: New Patterns and Paradigms in Global Innovation Networks." It will take place at the Arrillaga Alumni Center at Stanford University on Thursday, January 17.

The event will feature two keynote speakers:

John Hagel, Co-Chairman of the Deloitte Center for Strategy and Technology, co-author of The Only Sustainable Edge: Why Business Strategy Depends on Productive Friction and Dynamic Specialization (with John Seely Brown)

Dr. Henry Chesbrough, Executive Director of the Center for Open Innovation, Haas School of Business, University of California at Berkeley and author of Open Innovation: The New Imperative for Creating and Profiting from Technology.

Planned forum sessions include:

"Shifting Innovation Networks in China" with a focus on Internet services;

"Venture Capital as Network Builder," how venture capital enables innovation networks;

"Perspectives on Rapidly Moving Technologies," like cleantech and flat panels.

A continental breakfast and lunch will be served, and the day will conclude with a networking reception.

» Presentations/Papers from the event

Frances C. Arrillaga Alumni Center

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Some people said North Korea would not survive the end of the USSR and dissolution of the Soviet bloc. Some people said Kim Jong Il's likely tenure could be measured in months. Some people said that North Korea was on the verge of collapse in 1997; some people, in fact, proclaimed that the economy had already collapsed.

What sorts of myths and misperceptions do we entertain and perpetuate that make it difficult for us to deal with North Korea coherently?

Robert Carlin is a 2007 Pantech Fellow at Shorenstein Asia-Pacific Research Center and has been a visiting fellow at the Center for International Security and Cooperation at Stanford University since 2005. After receiving an A.M degree from Harvard University's East Asian Regional Studies program, he joined the Central Intelligence Agency in 1971. From 1974 to 1988, he was a senior North Korea media analyst in the Foreign Broadcast Information Service (FBIS), where he received the director of the CIA's Exceptional Analyst Award. From 1989 to 2002, he was the chief of the Northeast Asia Division in the State Department's Bureau of Intelligence and Research. Concurrently, from 1993 to 2002, Mr. Carlin served as senior policy advisor to the U.S. special envoy for talks with North Korea, taking part in every significant set of U.S.-DPRK negotiations of which there were many--during those years. He was on the delegation accompanying Secretary of State Madeline Albright to Pyongyang in October 2000. From 2003 to 2005, Mr. Carlin was senior political advisor to the executive director of the Korean Peninsula Energy Development Organization (KEDO), leading numerous KEDO negotiating teams to the DPRK. Altogether, he has made 25 trips to North Korea.

Much of Mr. Carlin's analysis on North Korea from his years at FBIS has been declassified and is available either in the "Trends in Communist Propaganda" or "Trends in Communist Media". Over the years, he has written chapters for several books on the Korean issue including, most recently, "Talk to Me, Later," appearing in North Korea: 2005 and Beyond. In 2006, he co-authored an IISS Adelphi paper "North Korean Reform: Politics, Economics and Security." His essay on negotiating with North Korea will appear in Korea 2007 - Politics, Economy, Society. Over his career, Mr. Carlin has lectured at the Harry S. Truman Presidential Library, the State Department's Foreign Service Institute, foreign ministries and intelligence organizations abroad, and numerous universities.

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Robert Carlin Pantech Fellow Speaker Shorenstein APARC
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We are pleased to bring you the second article of the academic year in our series of Shorenstein APARC Dispatches. This month's piece comes from Daniel Sneider, associate director for research. Sneider was a 2005-06 Pantech Fellow at the center, and the former foreign affairs columnist of the San Jose Mercury News. His twice-weekly column on foreign affairs, international issues, and national security from a West Coast perspective, was syndicated nationally on the Knight Ridder Tribune wire service, reaching about 400 newspapers in North America.

For most of the postwar period, Japan has been a paragon of political stability among industrial democracies. Since the formation of the conservative Liberal Democratic Party (LDP) in 1955, Japan has enjoyed remarkable political continuity. With the exception of less than a year of opposition government in the early 1990s, the LDP has ruled Japan for more than half a century.

This past summer, following the July elections for the Upper House of Japan's parliament (the Diet), Japan entered a new era of political uncertainty. The opposition Democratic Party of Japan (DPJ) won control of the Upper House in a stunning defeat for the LDP. For the first time, control of the Diet is split--the ruling coalition of the LDP and the Komeito Party still control the lower house that determines the formation of the government. Passage of basic legislation now gives rise to intense political battles. There is widespread anticipation that the LDP will be forced to carry out early elections for the lower house next spring, opening the door to the possibility that the opposition could come to power in Japan.

The election results surprised many observers, who were blinded by the LDP's massive victory in the 2005 lower house elections, under the leadership of then-Prime Minister Junichiro Koizumi. Koizumi had called a snap election around the issue of reforming the postal savings system, but that success was an aberration from a long-term trend of declining support for the LDP that grew during the 1990s. Increasingly, Japanese saw the party as a hostage to special interests and their allies in the bureaucracy who have used the budget to fund wasteful pork barrel projects--Japan's own "bridges to nowhere"--particularly in rural areas. Younger urban and suburban voters who favor deregulation and reform had come to see the LDP as an obstacle to needed change.

Koizumi, who came to power as prime minister in 2001, single-handedly reversed this downward trend of support. He developed a strong personal following, an appeal that came in large part from positioning himself as a maverick reformer who ran against his own party and against the opposition in equal measure. His five years in office were a testament to his charisma and ability to rise above the system that brought him to power.

Unfortunately for the LDP, this appeal does not seem to extend beyond Koizumi. After leaving office in 2006, he was replaced by Shinzo Abe, an LDP conservative who typified the party's long history of rule, in that he is the grandson of a former prime minister and the son of a former cabinet minister. Abe's policy agenda largely ignored the concerns of Japanese voters about the failing social welfare system and the impact of global competition, and instead favored conservative themes such as "patriotic" education and the revision of the postwar American-imposed constitution.

Voters decisively repudiated Abe, his agenda, and his party in the Upper House vote. The opposition DPJ, led by the wily former LDP leader Ichiro Ozawa, emphasized economic reform, as well as relief for those in rural and urban Japan who are falling behind. The DPJ's election manifesto focused on pension reforms--bolstered by a scandal of tens of millions of lost pension records--price supports for farmers, subsidies for families with children, and a crackdown on wasteful government spending.

The election result triggered Abe's resignation and in September 2007, he was replaced by his LDP rival Yasuo Fukuda. The new premier has managed, temporarily, to halt the massive slide in the government's support. Ozawa's mistakes have helped in this task. The DPJ, mainly for reasons of the legislative calendar, chose a foreign and security policy issue--the reauthorization of Japan's naval mission in the Indian Ocean in support of the U.S.-led "war on terrorism"--as the first test of strength. The DPJ has opposed this mission, arguing that Japan should not deploy forces overseas except in support of United Nations authorized operations.

This water was further muddied when Ozawa emerged from a series of meetings with Fukuda to announce his support for a deal on the maritime mission, tied to the formation of a "grand coalition" to govern Japan. The coalition proposal was reportedly offered by Fukuda and seemed to acknowledge the LDP's weakness. Ozawa's willingness to embrace this deal puzzled most observers and his own party repudiated him. Over the span of a few days, Ozawa resigned his party leadership and then agreed to come back to the post after issuing a public apology for his actions. Polls show that Ozawa suffered a significant loss of support from a public that is increasingly eager for change. But Fukuda is also very vulnerable. Among other things, the LDP is now stung with a growing scandal over questionable deals with defense contractors.

The Japanese Diet and political scene are now poised for months of battles over a range of policy issues, most of them related to domestic policy and the budget, rather than foreign policy. The DPJ, with a chastened Ozawa back at the helm, is apparently ready to use its control of the Upper House to challenge the ruling party coalition. Political uncertainty is now likely to be a dominant feature of Japanese life for months, if not years, to come.

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There is no consensus as to what outsiders can or should do in response to the dire situation inside Burma (Myanmar). At least that was the impression left by a vigorous discussion at a standing-room-only event convened by SEAF on October 18, 2007 on "Burma's Crisis: What Should Outsiders Do?"

Reviewing the protests that broke out in Burma in August 2007, swelled into mass demonstrations for democracy, and were brutally repressed by the junta in September-October, Maureen Aung-Thwin, who heads the Open Society Institute's Burma Project, argued for targeted sanctions. In her view, for example, cutting the flow of tourists to Burma would be less effective than spotlighting China's ties to the junta in the run-up to the 2008 Beijing Olympics, when Chinese leaders would be especially sensitive to embarrassment. But if positive change could be achieved through engagement, that too would be worth trying, in her estimation.

Zarni, an author, activist, and visiting research fellow at Oxford University, differed from Aung-Thwin in recommending constructive and coordinated engagement. And whereas she thought that the political situation inside Burma, if it were to change at all, could change rapidly, Zarni argued that "gradual change is the only solution." Yet just as Aung-Thwin welcomed engagement, if that could promote democracy, protect human rights, and reduce the suffering of Burmese, so was Zarni amenable to sanctions if they could effectively serve such ends.

The willingness of both speakers to entertain a range of options reflected the difficulty of inducing change in Burma from the outside, and the corresponding inclination to be eclectic about options. One speaker from the floor went so far as to suggest that only physical intervention from the outside could end the repression. But of all the proposals suggested, that one appeared to be by far the least realistic.

Several speakers urged that China, India, and/or the Association of Southeast Asian Nations (ASEAN) be persuaded to put pressure the regime. But there was little faith in the room that Burma's immediate neighbors would sacrifice their economic interests, including access to Burma's natural gas, for the sake of promoting political reform. The sense of pessimism prevailing in the room prompted one person in the audience to suggest later that all one could hope to do was extend humanitarian aid to the Burmese people and wait for political reforms that might never arrive.

Suharto's authoritarian "New Order" regime in Indonesia unraveled quickly in 1998. Aung-Thwin recalled a conversation she had had that year with an expert on Indonesia. He had told her he expected the New Order to last a long time. Three weeks later, Suharto resigned.

Aung-Thwin offered this anecdote by way of suggesting that events in Burma, too, could someday catch observers by surprise. Also surprising, in view of this discussion, would be the effectiveness of any external action, on the full spectrum from sanctions to engagement, to induce the democratization of Burma.

The Asia Society Northern California and the Center for Southeast Asian Studies at the University of California-Berkeley co-sponsored this event with Stanford's SEAF. Of course none of the three is responsible for the opinions expressed on the panel or during the Q and A.

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Former Thomas Rohlen Center Fellow at the Freeman Spogli Institute for International Studies
Former Assistant Professor of Political Science
phillip_lipscy_2018.jpg PhD

Phillip Y. Lipscy was the Thomas Rohlen Center Fellow at the Freeman Spogli Institute for International Studies and Assistant Professor of Political Science at Stanford University until August 2019. His fields of research include international and comparative political economy, international security, and the politics of East Asia, particularly Japan.

Lipscy’s book from Cambridge University Press, Renegotiating the World Order: Institutional Change in International Relations, examines how countries seek greater international influence by reforming or creating international organizations. His research addresses a wide range of substantive topics such as international cooperation, the politics of energy, the politics of financial crises, the use of secrecy in international policy making, and the effect of domestic politics on trade. He has also published extensively on Japanese politics and foreign policy.

Lipscy obtained his PhD in political science at Harvard University. He received his MA in international policy studies and BA in economics and political science at Stanford University. Lipscy has been affiliated with the Reischauer Institute of Japanese Studies and Weatherhead Center for International Affairs at Harvard University, the Institute of Social Science at the University of Tokyo, the Institute for Global and International Studies at George Washington University, the RAND Corporation, and the Institute for International Policy Studies.

For additional information such as C.V., publications, and working papers, please visit Phillip Lipscy's homepage.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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The opportunity to engage Kim Jong-il, the leader of the Democratic Peoples Republic of Korea (DPRK), in serious dialogue is inherently attractive. A face-to-face meeting with Kim has the potential to break through a fog of misperception and mistrust.

Given the nature of the DPRK system, the key decisions can only be made at the very top of the pyramid of power. One summit encounter is therefore potentially more valuable then scores of ministerial meetings or talks among senior officials.

These opportunities have unfortunately been extremely rare. Despite some 35 years of intermittent dialogue going back to the South-North talks held in 1972, this would mark only the second time the top leaders of divided Korea have met each other.

The hope for momentum created by the historic meeting of President Kim Dae-jung with Kim Jong-il in Pyongyang in June 2000 swiftly dissipated, disappointing many Koreans.

This may appear to be the right moment to restore the impetus to the North-South summitry. Since the 2000 summit, the process of engagement between the Koreas has deepened dramatically, ranging from extended contacts among officials to the flow of tourists, at least from the South to the North, across the border.

Economic exchanges are widespread, from the Gaeseong industrial park to a growing trade in goods. And the six-party talks to reach an agreement to dismantle the DPRK's nuclear program are at least moving forward, in large part due to the resumption of direct diplomatic negotiations between Pyongyang and Washington.

There are serious reasons, however, to question whether this is the right time for a second inter-Korean summit.

First and foremost, President Roh Moo-hyun is, in every sense of the word, a lame duck. When the summit was scheduled to take place, it was less than three months until the presidential election.

The election campaign is unusually uncertain, with the ruling party and its allies still in the process of selecting their nominee. Polls indicate that a change in leadership --bringing the opposition Grand National Party to power -- is very possible.

While he remains in office, President Roh has every right to exercise his authority and leadership. But given the political uncertainties, and the vital nature of inter-Korean relations, it would seem imperative to secure bipartisan support not only for the summit but also for the policy outcome.

For any gains to be meaningful, there should be some assurance that these policies will continue in place whomever succeeds as president.

Without that broad support, charges that the summit meeting is motivated more by domestic political considerations gain credence.

Even worse, Pyongyang's decision to agree to hold the summit may also be a crude attempt on its part to try to influence the ROK election in favor of the progressive camp. Even if these charges are not true, they undermine the value that this summit may have to shape a long-term future for the peninsula.

The timing of the summit is also problematic because the nuclear negotiations with the DPRK have reached a very delicate moment.

The temporary halt to the operation of the nuclear reactor at Yongbyon and the reintroduction of international inspectors was an important gesture.

But the DPRK has not yet clearly decided to irreversibly disable its nuclear facilities and fully disclose its nuclear programs and arsenals.

The Roh administration claims this summit will reinforce this negotiation. But it also has declared that the nuclear issue will not be on the summit agenda. In the absence of a dismantlement deal, this summit may only serve to recognize the DPRK's claim to the status of a nuclear power.

But all of these problems of timing take a back seat, in my view, to the location of the inter-Korean summit. Kim Jong-il committed himself, in the 2000 joint declaration, to a return visit to Seoul. This was not a trivial matter -- it was perhaps the most difficult issue in the talks, as Kim Dae-jung said upon return to Seoul.

Everyone understands the historic significance of a visit by Kim to Seoul. It would finally signal the DPRK's acceptance of the legitimacy of the ROK and its leadership and the abandonment of its historic aim to force unification under its banner.

The DPRK leadership would be compelled to show its own people images of their leader in the glittering streets of Seoul. That visit alone could go much farther than any peace declaration, any agreement on boundaries, any military confidence-building measures, or any economic investment deals, toward bringing a permanent peace to the Korean Peninsula.

If this summit had occurred in the right place, then the issues of timing would be incidental. No one could object to a breakthrough of that magnitude. Unfortunately, Kim Jong-il was not pressed to live up to his commitment. If this meeting achieves anything, it should make it clear that the next summit will only be held in Seoul.

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