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The rising sophistication of offshored service work is as dramatic as the continued speed with which offshoring is growing. The work now ranges from data entry and software services to datamining and R&D. The corporate strategies for offshoring services are increasingly complex as they combine international divisions of labor with both outsourced and internal provision. Not only have offshore service provision subsidiaries expanded, but also just as importantly, large developed nation outsourcing firms are rapidly expanding their offshore delivery capabilities.

The increasing cadre of outsourcing firms from developing nations, particularly India, but also Mexico, China and other countries in Asia, are shifting the terms of competition. They are dramatically improving their capabilities and are now capable of undertaking projects that are large in scale and sophistication.

The offshoring of service activities is no longer the province of only large firms as Silicon Valley firms and a myriad of smaller professional services firms are tapping offshore work delivery opportunities. This is leading to nothing less than a global reorganization of where and how non-manufacturing work is being done.

This conference, partially supported by the Alfred P. Sloan Foundation, brings together corporate leaders and university faculty to elucidate the complexities of global service provision and discuss the trends, the strategic issues, and policy implications. The conference will: (1) Compare outsourcing locally and globally, examining differences that arise from differences in skills, institutions, regulation, technologies, process and coordination requirements, (2) Take a global view of the value-chain, examining the quantity and quality of skills in-service delivery, migration and process management, verticals, and the impact on ownership structures and complexity of work done. (3) Examine roles of cross-border participants: venture capital, product developers, etc.

Global Services magazine, a division of CMP Technology has generously offered to be our media partner.

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Despite its threat of severe consequences, the Bush administration has little leverage to use on North Korea to keep it from testing a long-range missile and few ways to punish the nuclear-armed nation if it proceeds. Daniel C. Sneider, associate director for research at Shorenstein APARC, comments.

WASHINGTON - Despite its threat of severe consequences, the Bush administration has little leverage to use on North Korea to keep it from testing a long-range missile and few ways to punish the nuclear-armed nation if it proceeds.

The United States has no diplomatic or economic ties with North Korea, the rudimentary U.S. missile-defense system is untested in real-world conditions and Pyongyang is regarded as having a right to test missiles, making any American attack to forestall a launch an act of war with potentially explosive consequences.

"The United States could try to shoot down the rocket, but good luck,'' said Wonhyuk Lim of the Brookings Institution, a policy-research organization in Washington.

The dearth of options illustrates the limits of the administration's pre-emption strategy and its need to rely on the cooperation of others -- especially given the strains on the U.S. military from Iraq and Afghanistan -- to contain threats.

Washington hopes that the world's only Stalinist regime will heed demands by the United States, South Korea, Japan, Russia and China to uphold a self-imposed 1999 moratorium on missile tests and rejoin talks on curbing its nuclear program in return for security guarantees and economic and political benefits.

At the same time, the administration is reviewing its options should the Kim Jong Il regime test-fire what U.S. officials describe as a multi-stage Taepodong-2 missile, thought to be capable of reaching Alaska.

"The launch of a missile would be a provocation,'' Assistant Secretary of Defense Peter Rodman said Thursday during a House Armed Services Committee hearing. "If such a launch took place, we would seek to impose some cost on North Korea.''

Rodman declined to say what Washington would do. Experts said that even the imposition of sanctions by the United States would be largely symbolic.

They think that North Korea would not have readied the missile for flight unless it had decided it could live with the consequences.

"It probably means they are not worried about the American reaction,'' said Daniel C. Sneider of Stanford University's Shorenstein Asia-Pacific Research Center. "There is nothing that the United States can do to them.''

The United States has no diplomatic relations or financial assistance it can threaten to cut, and it suspended contributions to international food aid for North Korea last year.

The administration has moved against Pyongyang by trying to halt its missile sales to other countries, its alleged international narcotics trafficking, and its alleged counterfeiting of U.S. currency, cigarettes and over-the-counter drugs.

Under American pressure, banking regulators in February froze North Korean accounts at the Banco Delta Asia, a Macao bank that the U.S. Treasury Department accused of laundering North Korea's ill-gotten gains.

Other banks, anxious to avoid American scrutiny, reportedly have curtailed business with North Korea.

David L. Asher, a former Treasury Department official who oversaw the crackdown on North Korea's alleged illicit dealings, said the United States could respond to a test with an intensified campaign against Pyongyang's alleged international criminal activities that would hurt the ruling elite.

"Do not underestimate the impact of the financial pressure we could put on them,'' said Asher, a scholar with the Institute for Defense Analyses, a policy-research organization.

Washington is counting on Japan, which also is threatened by Pyongyang's nuclear arms and missile programs, to react to a launch by closing ports to North Korean ships and shutting off remittances by ethnic Koreans to relatives in North Korea. But those measures are expected to have limited impact.

A North Korean missile test in 1998 prompted Japan to boost missile-defense cooperation with the United States, and experts said a new launch probably would prompt Washington and Tokyo to forge even closer military ties.

The only nations that could tighten the screws significantly are China and South Korea, North Korea's main foreign trading partners and aid donors.

But while Seoul and Beijing would be outraged, because a missile test would effectively kill hopes of restarting talks on containing North Korea's nuclear arms program, they are unlikely to take any step that could rock Pyongyang.

Both are anxious to avoid destabilizing their neighbor of 26 million people. China doesn't want to be overwhelmed by North Korean refugees, and South Korea would be unable to bear the economic and social costs of sudden reunification.

They also fear that Kim's government could lash out with its million-member army against the South, igniting a conflict that would drag in the United States and devastate the Asian-Pacific economy.

"China and South Korea fear instability more than they fear a nuclear North Korea,'' said Marcus Noland, an expert at the Economic Policy Institute.

Moreover, Beijing probably would be unwilling to jeopardize the budding commercial ties it has been pursuing with North Korea.

"China opposes sanctions on North Korea because it believes they would lead to instability, would not dislodge the regime but would damage the nascent process of market reforms and harm the most vulnerable,'' said a February report by the International Crisis Group, a conflict-prevention organization.

South Korea has been pursuing a policy of economic engagement and political exchanges with North Korea.

The United States has been consulting with members of the U.N. Security Council on a response to a North Korean test. But North Korea has the right under international law to test-fire missiles, making it tough for the United States to win more than words of chastisement of North Korea from the council.

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The Walter H. Shorenstein Asia-Pacific Research Center is happy to announce that Daniel Sneider has accepted the position of associate director for research. For the past year (2005-06), he has been a Pantech Fellow at the Center and involved in many Center projects and events.

Sneider has had a long career as a foreign correspondent and worked most recently as the foreign affairs columnist of the San Jose Mercury News. His column on foreign affairs, looking at international issues and national security from a West Coast perspective, is syndicated nationally on the Knight Ridder Tribune wire service, reaching about 400 newspapers in North America. He previously served as national/foreign editor of the San Jose Mercury News.

From 1990-94, Sneider was the Moscow bureau chief of the Christian Science Monitor, covering the end of Soviet Communism and the collapse of the Soviet Union. From 1985-90, he was Tokyo correspondent for the Monitor, covering Japan and Korea. He has worked in India covering South and Southeast Asia, covered the United Nations, and extensively covered defense and national security affairs.

Sneider's responsibilities as associate director for research will fall into two main categories: research management and program development. He will work closely with the Center's director and faculty to design and manage research projects. With the Center director, he will represent the Center in its interactions within the Freeman Spogli Institute and the University, and will serve as a liaison with specialists from the fields of academia, policy, and business. Sneider will also oversee the publication of Center research findings. He will also provide substantive support for the varied lecture and seminar series the Center hosts each year.

"He joins us at a critical time," says Center director, Gi-Wook Shin, "and I have no doubt that his contribution will give a tremendous boost to our research projects, particularly those that are policy-oriented."

Sneider will also be conducting his own research, which includes finishing his book on Cold War diplomatic history of the United States' alliances with Japan and Korea, and continue to write commentary on current policy issues in the Asia-Pacific region and on U.S. foreign policy.

Sneider will start in this position on July 1, after he has completed his Pantech Fellowship responsibilities.

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The Oksenberg Lecture, held annually, honors the legacy of Professor Michel Oksenberg (1938-2001). A senior fellow at Shorenstein APARC and the Freeman Spogli Institute for International Studies, Professor Oksenberg served as a key member of the National Security Council when the United States normalized relations with China, and consistently urged that the United States 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. This year's lecturer is Brent Scowcroft.

Brent Scowcroft served as the National Security Advisor to both Presidents Gerald Ford and George H.W. Bush. From 1982 to 1989, he was vice chairman of Kissinger Associates, Inc., an international consulting firm. In this capacity, he advised and assisted a wide range of U.S. and foreign corporate leaders on global joint venture opportunities, strategic planning, and risk assessment.

Dr. Scowcroft's twenty-nine-year military career began with graduation from West Point and concluded at the rank of Lieutenant General following service as the Deputy National Security Advisor. His Air Force service included professor of Russian History at West Point; head of the Political Science Department at the Air Force Academy; special assistant to the Director of the Joint Chiefs of Staff; and military assistant to President Nixon.

Out of uniform, he continued in a public policy capacity by serving on the President's Advisory Committee on Arms Control and the Commission on Strategic Forces. He was also one of the key members of the President's Special Review Board, also known as the Tower Commission. The Tower Commission, appointed by President Ronald Reagan in 1986, produced a report that was highly critical of the Reagan Administration and of the National Security Council's dealings with both Iran and the Nicaraguan Contras.

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Brent Scowcroft Former National Security Adviser to Presidents Gerald Ford and George H.W. Bush Speaker
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Iran has climbed to No. 1 on the Washington crisis hit parade. The question of how to stop Iran's nuclear program has unleashed a torrent of punditry. Advocates of diplomacy and a military strike spar on television and in op-ed pages.

Iran's nuclear ambitions deserve our attention. But even by the most alarmist estimates, Iran is years away from being able to build a nuclear warhead.

Meanwhile, over in Northeast Asia, North Korea now has enough fissile material for five to seven weapons and is quietly churning out enough plutonium to build at least one warhead a year, according to rough intelligence estimates. More ominously, work is moving ahead on a new reactor that could potentially produce enough separated plutonium for up to 10 weapons a year.

Somehow this danger prompts no sense of urgency in Washington. After a promising breakthrough last September, the six-party talks to halt the program have lapsed into a stalemate that is close to total collapse.

The Bush administration seems unconcerned. Diplomacy has ground to a halt. The North Koreans refuse to return to the six-party talks. The White House has barred its chief negotiator from talking directly with them, despite Pyongyang's desire to meet and the urging of our six-party partners.

Administration officials have recently floated a report that they are considering a new initiative to negotiate a peace treaty with North Korea. This is a smoke-screen to conceal an empty North Korea policy. According to administration officials, the peace treaty idea has been kicking around for months without going anywhere. South Korean officials tell me that they have been waiting, so far in vain, for any serious detailed discussion of this proposal.

It is the president himself who opposes direct negotiations with Pyongyang, over anything, including a peace treaty. He sees direct talks with North Korea or Iran as an act of weakness. "Somehow,'' he said last month, "the world ends up turning the tables on us.''

In reality, the administration is content to pursue a strategy of going after North Korean counterfeit currency and production of amphetamines and cigarettes, hoping to cut off the flow of funds from these activities. According to administration officials, Under Secretary of State Robert Joseph, the driving force behind this policy, gleefully talks about ``turning out the lights'' in Pyongyang.

Administration officials claim they are drying up slush funds that North Korean dictator Kim Jong Il uses to buy the loyalty of his subordinates. Some even suggest this could trigger a coup against Kim, with the Chinese pulling the strings.

But American intelligence experts who monitor North Korea closely see little evidence to support the conclusion that North Korea is being brought to its knees. Even if the measures are drawing blood, it is self-delusional to believe that this will bring down a regime that has already proven it is willing to starve its own population to stay in power.

The administration seems intent as well on pressing China and South Korea to curb their trade and investment with the North. The administration's special envoy on human rights in North Korea, Jay Lefkowitz, seems to spend most of his time attacking the South for setting up an industrial park in Kaesong in the North. He portrays it as exploiting slave labor. The South Koreans defend it as a vehicle to bring capitalism into the communist North.

The Bush administration's combination of attempted coercion and diplomatic freeze has only two visible effects so far.

First, it lends credence to North Korean claims that the United States, contrary to the joint statement issued last September, is still intent on overthrowing their regime.

Second, it undermines gains made by allowing chief envoy Christopher Hill to hold direct talks with his North Korean counterparts. That demonstrated a flexibility and confidence that disarmed critics, particularly in South Korea, and isolated the North. It strengthened coordination with China and South Korea, the two players with the most leverage over the North.

Now officials in both those capitals again question American readiness to seriously negotiate. Beijing and Seoul are even more convinced that pushing market reforms is the only route to bring the North to give up its nuclear option. Next month former South Korean President Kim Dae Jung will revisit his historic summit with the North Korean leader in 2000.

This growing gap with our allies and partners is deadly. Even if we wanted to opt for coercion, the United States can't do so alone. For that reason, it is urgent that the United States regains the diplomatic upper hand.

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Yunxiang Yan is a professor of anthropology and co-director of the Center for Chinese Studies at University of California, Los Angeles. He is the author of The Flow of Gifts: Reciprocity and Social Networks in a Chinese Village (Stanford University Press, 1996) and Private Life under Socialism: Love, Intimacy, and Family Change in a Chinese Village, 1949-1999 (Stanford University Press, 2003). His current research interests include the rise of the individual and the impact of cultural globalization in urban China.

This seminar is part of the Taiwan/China Seminar Series hosted by Melissa Brown, Assistant Professor, Anthropological Sciences, Stanford University.

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Yunxiang Yan Professor of Anthropology Speaker University of California - Los Angeles
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About the series: The year 2005 marked the 60th anniversary of the end of Pacific War and Japan's unconditional surrender. Post-war Japan has embraced a new constitution that renounced war as a right of the nation and for the past six decades pursued economic growth under democratic government. Ironically, the years leading to this anniversary were filled with various disputes over territorial and historical issues with China and Korea and questions from neighboring countries whether Japanese society is shifting towards the right. Triggered by Prime Minister Koizumi's official visits to Yasukuni Shrine, which enshrines "A" class war criminals, anti-Japan sentiment is widely spreading among its neighboring countries, accompanied by strong nationalism, and is posing a potential threat to the political stability of the region.

This colloquium series will focus on Japan's relationship with China and Korea and the historical controversies that are central to their deteriorating political relationship. The series speakers will address the following questions: What are the historical roots of these controversies? How did post-war Japanese foreign policy effect and was effected by Japan's handling of its militaristic past? What is the nature of domestic politics of these three countries that politicizes these historical issues and influences their responses to one another?

Each of the speakers in this series has been asked to address a specific aspect of Japan's relations. Professor Kimura will address the post-war political relationship between Japan and Korea.

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Kan Kimura Professor, Graduate School of International Cooperation Studies Speaker Kobe University
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About the speaker: Achin Vanaik, fellow and board member of the Transnational Institute in Amsterdam is one of the most important analysts of contemporary Indian politics. The author of The Painful Transition: Bourgeois Democracy in India (1990), The Furies of Indian Communalism: Religion, Modernity and Secularization (1997) and Globalization and South Asia (2004.)

Vanaik has served on the board of directors of GreenPeace (India), and as an assistant editor for The Times of India. He writes regularly for the Economic and Political Weekly, The Times and The Telegraph and has written extensively on the nuclear question in south Asia.

Dr. Vanaik's lecture is co-sponsored with the Department of Cultural and Social Anthropology at Stanford University.

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Achin Vanaik Professor of International Relations and Global Politics, Political Science Department Speaker Delhi University
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About the series: The year 2005 marked the 60th anniversary of the end of Pacific War and Japan's unconditional surrender. Post-war Japan has embraced a new constitution that renounced war as a right of the nation and for the past six decades pursued economic growth under democratic government. Ironically, the years leading to this anniversary were filled with various disputes over territorial and historical issues with China and Korea and questions from neighboring countries whether Japanese society is shifting towards the right. Triggered by Prime Minister Koizumi's official visits to Yasukuni Shrine, which enshrines "A" class war criminals, anti-Japan sentiment is widely spreading among its neighboring countries, accompanied by strong nationalism, and is posing a potential threat to the political stability of the region.

This colloquium series will focus on Japan's relationship with China and Korea and the historical controversies that are central to their deteriorating political relationship. The series speakers will address the following questions: What are the historical roots of these controversies? How did post-war Japanese foreign policy effect and was effected by Japan's handling of its militaristic past? What is the nature of domestic politics of these three countries that politicizes these historical issues and influences their responses to one another?

Each of the speakers in this series has been asked to address a specific aspect of Japan's relations. Professor Iokibe will address Japan's Post-War foreign policy under the pressures of the domestic agenda.

Makoto Iokibe, Professor of History in the Department of Law at Kobe University, is a specialist in Japanese diplomatic history and U.S.-Japan relations. Dr. Iokibe has also taught at Hiroshima University and was a Visiting Fellow at Harvard University and an academic visitor at the London School of Economics. He was a member of the Prime Minister's Commission on "Japan's Goals in the 21st Century," which submitted its report in January 2000. He is the author of several award-winning books, including Japan and the Changing World Order; The Occupation Era: The Prime Ministers and Rebuilding of Postwar Japan, 1945-1952; and Diplomatic History of Postwar Japan, 1945-1999. He received his BA, MA and PhD in Law from Kyoto University.

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Makoto Iokibe Professor of History, Deparment of Law Speaker Kobe University, Japan
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