Stanford University

International Development

FSI researchers consider international development from a variety of angles. They analyze ideas such as how public action and good governance are cornerstones of economic prosperity in Mexico and how investments in high school education will improve China’s economy.

They are looking at novel technological interventions to improve rural livelihoods, like the development implications of solar power-generated crop growing in Northern Benin.

FSI academics also assess which political processes yield better access to public services, particularly in developing countries. With a focus on health care, researchers have studied the political incentives to embrace UNICEF’s child survival efforts and how a well-run anti-alcohol policy in Russia affected mortality rates.

FSI’s work on international development also includes training the next generation of leaders through pre- and post-doctoral fellowships as well as the Draper Hills Summer Fellows Program.

Stanford China Program inaugural event

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Please join us on Thursday, November 1 for the launch of the Stanford China Program, a new program of the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). With China at the forefront of so many contemporary issues, from economic growth to international security, scholars at Shorenstein APARC have developed the China Program in response to the increasing need to explore and explain dynamic changes taking place in China today. The Stanford China Program is composed of scholars who do their research on the ground, in the villages, company boardrooms and government institutions of China.

Our inaugural event, co-sponsored with the Center for East Asian Studies, illustrates the catalytic role that the Stanford China Program intends to play. The panel discussion "Growing Pains: Tensions and Opportunity in China's Transformation" will go beyond the headlines trumpeting China's spectacular growth. We will discuss the difficult questions facing China, about whether and how such a rapidly transforming nation will be able to manage the tensions that accompany growth at such a pace. Issues from growing income disparity to environmental damage and widening gaps between rural and urban China are forces that are tearing at the social fabric of China. Are these the signs of a system in crisis or, as the event title suggests, the necessary pains associated with growth?

These questions occupy not only scholars, but also policy makers and business leaders alike. The panelists will discuss a range of tensions and opportunities in contemporary China such as markets, governance, environment and social inequality. The panelists include:

  • Melanie Manion, Professor of Public Affairs and Political Science at the University of Wisconsin-Madison, a specialist on issues of political governance in China.
  • Leonardo Ortolano, UPS Foundation Professor of Civil Engineering in Urban and Regional Planning at Stanford, who will speak on environmental issues.
  • Scott Rozelle, FSI Helen F. Farnsworth Senior Fellow at Shorenstein APARC and a leading expert on rural China.
  • Andrew G. Walder, Denise O'Leary and Kent Thiry Professor of Sociology at Stanford and Director Emeritus of Shorenstein APARC will moderate the panel discussion.

The event is scheduled to take place from 5:30 - 7:00 PM, Thursday November 1 in the Bechtel Conference Center, Encina Hall, 616 Serra Street. A light reception will follow the panel discussion. Full details can be found at the link below.

I look forward to welcoming you to this inaugural event and to future activities of the Stanford China Program at Shorenstein APARC.

Sincerely,

Jean C. Oi
William Haas Professor in Chinese Politics
Professor of Political Science
Senior Fellow, Freeman Spogli Institute for International Studies
Director, Stanford China Program

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The Global Outlook: How Much Depends on Asia?

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Robert Ward is the director of the global forecasting team. In this role he oversees the Economist Intelligence Unit's global forecast and in cooperation with country specialists, also analyzes key global economic trends. He is also the Economist Intelligence Unit's chief automotive analyst and plays a leading role in shaping the company's global automotive forecasts. Previously, Ward was a senior member of the Economist Intelligence Unit's Asia team with special responsibility for Japan and the Koreas..

Ward lived in Japan, working at the Japan Bond Research Institute (now Japan Rating and Investment Information), Japan's largest bond rating agency.

He is a fluent speaker of Japanese and regularly contributes to international and Japanese media on regional and global issues. He also appears frequently on the BBC, CNN, CNBC and other broadcast media. Ward holds a bachelors and masters degree from Cambridge University.

Dr. Ward's lecture is cosponsored with the Stanford Center for International Development and the Stanford Institute for Economic Policy Research .

Landau Economics Building
Lucas Conference Room
Serra Street at Galvez
Stanford University Campus

Robert Ward director, Global Forecasting Speaker The Economist Intelligence Unit
Seminars

Shorenstein APARC's Senior Research Scholar, Rafiq Dossani, invited to participate in an online debate on indian outsourcing

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Rafiq Dossani
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Shorenstein APARC's Senior Research Scholar, Rafiq Dossani, invited to participate in an online debate on indian outsourcing.

Pro: Not as Tempting

by Sabrina Siddiqui, intern, BusinessWeek, and a senior at the Medill School of Journalism at Northwestern University.

There is no doubt that over the last decade, India fortified its rule over the shared services and outsourcing (SSO) sector. Access to low-wage yet skilled workers allowed local global technology services giants Infosys (INFY), Tata Consultancy Services (TACSF), and Wipro (WIT) to employ tens of thousands of Indians to do work for such multinational corporate clients as Bank of America (BAC), Microsoft (MSFT), and Ericsson (ERIC).

But a recent study by Frost & Sullivan consolidates the idea that India's outsourcing has already peaked, and there are a number of factors to blame:

The Rupee Riddle. Earlier this year, the Indian rupee appreciated 8.4% against the U.S. dollar and touched 41.14 to the dollar, its highest rate in nine years. A significant reason for concern for the outsourcing sector, the upward value of the rupee continues to put a squeeze on earnings. By April, 2007, it had cut margins by about 2.5 percentage points.

Cost (In)Efficiency. Companies looking to outsource have long seen India as their most cost-efficient vehicle. But with wage inflation running 15% to 25% per year, India can no longer use the siren song of its labor being the cheapest. Competitors like China can offer their services at a lower cost, while firms like Infosys are stuck recruiting from outside the country, because the comparable Indian staff is growing too expensive.

That Age-Old Infrastructure. As much as the economy continues to boom, how long can it sustain its position when IT operations spend considerably on backup systems to fight regular blackouts? And the 300,000 engineering students who graduate each year may be short of the level needed to support modernization of infrastructure and industry growth. (Not to mention that the peculiarly accented "Doug Smith" on the computer help desk is a little too hard for U.S. callers to comprehend.)

So if you assume you're being rerouted by tech support to a call center in Bangalore, guess again. It seems India's grasp on the SSO market is at long-term risk, and it just so happens that your call might be answered by someone in Shanghai.

Con: Plenty of Spice Left

by Rafiq Dossani, Stanford University and Martin Kenney, University of California, Davis

Notwithstanding the occasional news stories about companies returning work earlier offshored to India, the logic behind offshoring and its financial impact (both on outsourcing firms operating in India and their American clients) remains intact. First, the logic: A fresh engineer costs $8,000, including benefits, on average in Bangalore. Even a "Google-quality", presumably equivalent to the best Google can hire anywhere (in fact, Google offers its India recruits the option of working in Silicon Valley if they so desire) costs $30,000. These wages are much lower than in the U.S. and will remain that way for at least a decadeespecially if the ambitious graduation targets of Indian education policymakers are realized.

Of course, there are problems in doing work long distance: Coordinating the work of global teams is costlier than coordinating such work locally. The intellectual property issues could be important. But offshoring is now tried and tested enough, and large corporations are deeply committed to it.

By 2010, many large multinational corporations like IBM (IBM) will have their largest workforces in India. This is creating a relatively rich ecosystem in a number of Indian cities, especially Bangalore.

Already, for a number of these firms, their Indian operations are being declared global centers of excellence, whose value goes well beyond just cost savings. Undoubtedly, some smaller firms have faced high initial costs, but even they, particularly the technology firms of Silicon Valley, have committed to Indian operations. Firms such as Infinera (INFNO) and HelloSoft have substantial Indian operations that are critical to their success. For them to retreat would require a major reorientation of their business strategy.

The appreciating rupee will, like rising wages, affect offshoring decisions. However, the Indian system integrators such as TCS, Infosys, and Wipro, which are also being squeezed by costs, have experienced profits rising at about 35% a year for the past decade and enjoy margins in excess of 20%. This provides ample room to absorb rising costs.

There can be little doubt that the Indian ecosystem is maturing. However, the growth of offshoring to India has not peaked.

Reprinted by permission from BusinessWeek.

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Democratic or Demagogic? "People Power" Reconsidered -- in the Philippines and Elsewhere

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Unarmed mass uprisings, celebrated as "people power" revolutions, have ended authoritarian regimes in various countries. But have these movements ushered in polities that fulfilled democratic expectations? The record is disappointing, and especially so in the Philippines after the ouster of President Ferdinand Marcos. Why? Much of the answer lies in the ability of elites to ride, hijack, and redirect the trajectories of "people power" movements. Such elites take advantage of the tension between the regular politics of stable institutions and the irregular politics of extraordinary moments. The large mobilizations associated with "people power" cannot be sustained for long periods. The masses will soon delegate power to, and rely on, their leaders, who will represent them as the polity settles down to the business of normal--institutional--politics. The very minute the new regime is inaugurated, it ceases to be revolutionary and starts to be conservative. It has a country to run, and state power to defend and consolidate, for its enemies are not likely to have given up. The institutional technology of popular rule has yet to be developed beyond grand first principles and banal motherhood statements. The supposedly revolutionary leaders of the new regime lapse into using the already well known methods of minority or elite rule. But recourse to such stratagems may in time trigger the formation of new "people power" movements against these self-entrenched incumbents--prolonging the cycle and preventing the conversion of contingent power into legitimate authority.

Amado Mendoza's current research is on the political economy of organized crime and anti-state violence in the Philippines. His many writings on that country include a book-in-progress on tax reform and two edited volumes, Debts of Dishonor (1992) and From Crisis to Crisis: A History of BOP [Balance of Payments] Crises in the Philippines (1987). He has been a visiting scholar at Tufts University, the Jean Monnet Institute, the University of Turku (Finland), and the Amsterdam Insti¬tute for International Relations. In addition to pursuing his academic career, he has worked as a business journalist, a merchant banker, a stockbroker, and on development issues for an NGO.

Daniel and Nancy Okimoto Conference Room

Amado M. Mendoza, Jr Associate Professor in Political Science and International Studies Speaker University of the Philippines
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Not What It Seems: Muslim Governance in Malaysia Today

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Tectonic shifts have underscored the gradual Islamization of mainstream politics in contemporary Malaysia. This is so despite popular media representations of the country as an epitome of moderate and progressive Muslim governance -- a portrayal regularly belied by the actions of its leaders as well. Recently, these shifts have been expressed in heated debates over apostasy, religious freedom, and constitutional rights. Insofar as the media have acknowledged Islamization, they have attributed it to the Islamist opposition party (PAS). Prof. Liow will show, however, that the ruling party (UMNO) has proven no less strident in expressing its own Islamist predilections, with significant implications for the dynamics of UMNO-PAS relations and, beyond them, the country's political future.

Joseph Chinyong Liow is head of research at S. Rajaratnam School of International

Studies, Nanyang Technological University, Singapore. His books include Muslim

Resistance in Southern Thailand and Southern Philippines: Religion, Ideology, and Politics (2006); The Politics of Indonesia-Malaysia Relations: One Kin, Two Nations (2005); and (as co-editor) Order and Security in Southeast Asia (Routledge 2006). He is associate editor of Asian Security, and guest-edited "Internal Conflicts in Southeast Asia: The Nature, Legitimacy and Changing Role of the State," a special issue of that journal (2007). He has published numerous articles on Malaysian politics and the conflict in Southern Thailand. His PhD is from the London School of Economics and Political Science.

Daniel and Nancy Okimoto Conference Room

Joseph Chinyong Liow Associate Professor Speaker S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore
Seminars

The Third Annual Globalization of Services Conference

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The Third Annual Globalization of Services Conference will explore the following questions:

  1. The changing geography of system integrators: The incumbent system integrators (SIs) are building up their developing nation service provision capability through acquisitions and internal expansion. The thrust of their expansion is to add capacity quickly. Can they manage it effectively? At a slower pace, the Indian SIs are doing the same in developed and developing nations: adding low cost workforces in developing countries, buying relationships in developed countries. Can they manage it effectively. Will growth rates and margins converge; if not, why not? What are some of the interesting differences between firm strategies?
  2. The changing business models of system integrators: The Indian system integrators appear to be driving a new, metric-based quality model that is driving price compression. Is this strong enough to provide a permanent advantage? IBM and others are responding with a combination of superior technology, client relationships and domain expertise, drawing upon their established strengths while also expanding in India and other low-cost developing countries. Are we witnessing a convergence to a common business model? Is there a European perspective? Is it different and does it make a difference?
  3. Product firms' globalization strategies (separate sessions on established and new firms): The IT product firms have to balance several additional factors that service firms like the SIs do not face when they globalize; among them, intellectual property protection, business development, managing innovation, research team coordination and marketing. How is this working, and what business models are they experimenting with? What are the differences between an established firm versus a startup?

All participants will receive a copy of Dr. Dossani's newest book India Arriving: How this Economic Powerhouse is Redefining Global Business. Details of this can be found through the link below. Provided through the generosity of Arada Systems.

Details about the previous two events can be found at:

Globalization of Services

The Second Annual Globalization of Services Conference

Conference Sponsors:

Download pdf

Bechtel Conference Center

Conferences
South Asia Initiative
Globalization of Services Conference

Min Zhu seminar and SEN launch kick off SPRIE's fall quarter

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SPRIE kicked off the fall quarter with two special events: first was a seminar on October 9 presented by Min Zhu, co-founder of WebEx, who spoke on "Beyond Beijing and High Tech: Chinese Entrepreneurship on the Edge." Min discussed the entrepreneurship scene in China and suggested that Silicon Valley venture capitalists investing there may be heading for trouble. John Boudreau covered the talk in the "Tech Notebook" section of the San Jose Mercury News.

Then, on October 10, Martin Eberhard, Tesla Motors' Co-Founder and President of Technology, spoke at the launch of the Stanford Entrepreneurship Network (SEN), a federation of organizations, including SPRIE, that focus on entrepreneurship acrosss the Stanford campus. Eberhard spoke of taking Tesla from the beginning stages of a start-up and formulated six lessons he learned from the experience. For more information about the SEN, visit the Stanford Entrepreneurship Network.

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Phillip Lipscy

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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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