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.

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The era of globalization saw China emerge as the world's manufacturing titan. However, the "made in China" model—with its reliance on cheap labor and thin profits—has begun to wane. Beginning in the 2000s, the Chinese state shifted from attracting foreign investment to promoting the technological competitiveness of domestic firms. This shift caused tensions between winners and losers, leading local bureaucrats to compete for resources in government budget, funding, and tax breaks. While bureaucrats successfully built coalitions to motivate businesses to upgrade in some cities, in others, vested interests within the government deprived businesses of developmental resources and left them in a desperate race to the bottom.

In Manipulating Globalization, Ling Chen argues that the roots of coalitional variation lie in the type of foreign firms with which local governments forged alliances. Cities that initially attracted large global firms with a significant share of exports were more likely to experience manipulation from vested interests down the road compared to those that attracted smaller foreign firms. The book develops the argument with in-depth interviews and tests it with quantitative data across hundreds of Chinese cities and thousands of firms. Chen advances a new theory of economic policies in authoritarian regimes and informs debates about the nature of Chinese capitalism. Her findings shed light on state-led development and coalition formation in other emerging economies that comprise the new "globalized" generation.
 

About the Author

Ling Chen is an assistant professor in the School of Advanced International Studies at Johns Hopkins University. During the 2013-14 academic year, she was a Shorenstein Postdoctoral Fellow at Shorenstein APARC.
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Stanford University Press
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978-1-503604-7-97
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On May 24, Shorenstein APARC hosted the final three research presentations by this year’s Corporate Affiliate Visiting Fellows. What had been months in preparation was at last over; any indications of nervousness or anxiety now gave way to jubilant smiles and celebratory thumbs-ups for cameras. The journey that began for many nearly a year ago had come to a successful end.

Established in 1982, the Corporate Affiliates Program introduces personnel of Asian organizations that have become APARC corporate affiliates to American life and institutions. Over the span of a year, Corporate Affiliate Visiting Fellows have the opportunity to immerse in daily interaction with specialists, students, and scholars from Stanford and abroad. In turn, the practical experience and international perspectives that Visiting Fellows bring with them enrich and inform intellectual exchange at both Shorenstein APARC and Stanford at large. 

The 2017-2018 Visiting Fellows came to APARC from 14 different organizations including government agencies, state-owned enterprises, and private sector industry corporations from four countries: China, India, Japan, and Korea.

 

Academic Engagement

Group Photo 2The Corporate Affiliates Program is ideal for mid-career professionals looking to expand their knowledge and international experience. Visiting Fellows participate in a structured, yet individualized year of academic exploration. Elements of the program include creating individual research projects, auditing classes, attending exclusive seminars, and visiting local companies and institutions.

Following summer intensives and orientation, Visiting Fellows embark on their nine-month research projects under the guidance of an APARC faculty advisor. Fellows are matched with an advisor based on the research project subject and/or their professional background and region of employment.

“The best thing about this program is that I have one entire year to focus and to manage my own time,” observed a previous Visiting Fellow.

The months of thorough research culminate in a paper and its public presentation. Fellows present their research findings before an audience of APARC faculty and researchers, Stanford community members, and their “fellow Fellows.” Over the course of five days in May, audiences heard presentations on a wide variety of subjects ranging from the impact of U.S. Supreme Court decisions on the AI Industry to regulatory requirements for bio-similar products, and from the role of large industries in Urban Air Transport to the benefits of shifting a government’s focus from economic growth to people’s happiness.

Presentations were well received by APARC faculty, though not before standing up to the rigorous follow-up questions from a highly engaged audience.

 

University Enrichment

For Corporate Affiliates, the year was not exclusively about their research. Fellows found ample opportunities to take advantage of non-academic pursuits, both on-campus and in the greater Bay Area.

Group Photo 3One way to further encourage exploration was a team-based activity designed by the program. Fellows were broken up into groups of five, each tasked with coordinating an excursion to take the rest on. Facilitated trips included a hike to Stanford’s famous radio telescope (“the Dish”), an exploration of the Berkeley neighborhood and its local industries, and a visit to NASA’s Ames Research Center at Moffett Field.

Stanford Jazz OrchestraIn addition to their professional experiences, Fellows also enriched the Center and university community through their personal pursuits. Takahito Inoshita, for example, brought his musical talent to Stanford along with an extensive experience in engineering. While researching how cities could identify policy needs via natural language data, he also performed with the Stanford Jazz Orchestra as lead trombonist at a November performance at Stanford’s Bing Concert Hall.

Next year’s Visiting Fellows are scheduled to begin arriving in mid-June, and include personnel from government, SOEs and private industries, but also the military and non-profit sector as well. For now, however, the Center is still saying goodbye to the 2017-2018 Fellows as they leave to join a distinguished, ever-growing alumni network of government and private sector professionals throughout Asia.

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In the 1990s, rural youth from poor counties in China had limited access to college. After mass college expansion started in 1998, however, it was unclear whether rural youth from poor counties would gain greater access. The aim of this paper is to examine the gap in college and elite college access between rural youth from poor counties and other students after expansion. We estimate the gaps in access by using data on all students who took the college entrance exam in 2003. Our results show that gaps in access remained high even after expansion. Rural youth from poor counties were seven and 11 times less likely to access any college and elite Project 211 colleges than urban youth, respectively. Much larger gaps existed for disadvantaged subgroups (female or ethnic minority) of rural youth from poor counties. We also find that the gaps in college access were mainly driven by rural–urban differences rather than differences between poor and non-poor counties within rural or urban areas.

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The China Quarterly
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Scott Rozelle
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This study describes the current teacher training system in China, including the prevalence of teacher training, the types of training, training content and the ways that training is delivered. The paper presents subjective evaluations of training for principals and teachers using four diverse datasets. The results show that the National Teacher Training Project (NTTP) deviates from offi cial policy objectives in several respects. The subjects of training programs and training content are not fully compliant with policy objectives. In addition, training opportunities are offered to a smaller proportion of rural teachers than urban teachers. It is found that the proportion of teachers and principals satisfied with the NTTP is lower than that for other types of training. Therefore, measures should be taken to increase training opportunities for rural teachers and to ensure the quality of training for all teachers.his study describes the current teacher training system in China, including the
prevalence of teacher training, the types of training, training content and the ways that
training is delivered. The paper presents subjective evaluations of training for principals
and teachers using four diverse datasets. The results show that the National Teacher
Training Project (NTTP) deviates from offi cial policy objectives in several respects. The
subjects of training programs and training content are not fully compliant with policy
objectives. In addition, training opportunities are offered to a smaller proportion of rural
teachers than urban teachers. It is found that the proportion of teachers and principals
satisfied with the NTTP is lower than that for other types of training. Therefore,
measures should be taken to increase training opportunities for rural teachers and to
ensure the quality of training for all teachers
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China & World Economy
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On May 4, 2018, Asian Infrastructure Investment Bank (AIIB) President Jin Liqun delivered a talk titled “The AIIB After Two Years” to a Stanford audience of faculty, students, and community members. The event was sponsored by the China Program at the Shorenstein Asia-Pacific Research Center.

President Jin addressed the challenges of establishing the AIIB and shed light on the organization’s future goals. Following prepared remarks, President Jin conversed with moderator Thomas Fingar, before opening the floor to questions from the audience.

A recording of the event is now available online .

Read a full account of the event in The Stanford Daily News.

Read a transcript of President Jin's speech is available below.

 

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AIIB President Jin Liqun
AIIB Presdent Jin Liqun addresses audience | Rod Searcy
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Chairman of the American Institute in Taiwan’s Board of Trustees James Moriarty visited Shorenstein APARC on May 3rd for a seminar titled “The United States and Taiwan: An Enduring Friendship.” The former United States ambassador spoke about historical, contemporary and future U.S.-Taiwan relations and addressed the challenges and merits of democratic systems.

A recording of the event is avilabe below. A transcript of the proceedings is availabe below.

Read a full account of the event in The Stanford Daily News.

 

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Ambassador Moriarty at APARC
From left to Right: Kharis Templeman, Ambassador James Moriarty, Ambassador Karl Eikenberry | Thom Holme
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Japan is known to have an exceptionally low level of inward foreign direct investment (FDI). The promotion of inward FDI is one of the policy goals of Abenomics structural reforms. This present paper studies the accumulation of Japan's inward FDI stock during the first 3 years of Abenomics (2012–2015), and finds no evidence that Japan's inward FDI stock increased more than the trend before Abenomics started would have predicted. A comparison of the main policies for promoting inward FDI that have been implemented to the real and perceived impediments to inward FDI reveals that it may be advisable to shift the emphasis of the policy to address more regulatory and administrative issues and to reduce the cost of doing business in Japan.

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Asian Economic Policy Review
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Takeo Hoshi
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1
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Using a unique dataset on all major corporate restructuring events in Japan between 1981 and 2010, we assess changes in the role of the main bank in guiding corporate turarounds, and the economic consequences of these changes for distressed firms. We identify firms in distress among all listed firms based on accounting data, and we separately identify firms undergoing corporate restructuring based on a newspaper search for the Japanese term “saiken”. Even though the ratio of distressed firms has not declined, the incidence of saiken restructuring by such firms has become less frequent after the 1990s, indicating a decline in the governance and rescue role of the main bank. When firms undergo saiken, they adopt real adjustments in terms of labor, assets and finance. While the intensity of these adjustments has also declined over time, saiken firms make more significant adjustments than distressed firms that do not undergo restructuring. The role of saiken was an important part of corporate renewal in Japan, and it has declined. In line with existing research, these findings underscore changes in Japanese corporate governance, in particular regarding the decline of the monitoring and restructuring function of the main bank.

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Journal of the Japanese and International Economies
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Takeo Hoshi
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47
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The event is jointly sponsored by the Japan Program at the Shorenstein Asia-Pacific Research Center and the Japan Foundation Center for Global Partnership.

 

Japan is one of the world’s most prominent military space powers around. With the inescapable ambiguity of dual-use, Japan has acquired its impressive capabilities in full view of a pacifist public and under constitutional constraints. At this stage, as the country races to keep abreast of the latest space technology trends, its national security trajectories are openly and officially sanctioned in both law and policy. These realities are not well understood by Japan’s allies or rivals, which limits our appreciation about where Japan is headed in its own national interest in the region, the world, and beyond.  

 

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Saadia M. Pekkanen works on outer space security, law, and policy. Her regional expertise is in the international relations of Japan/Asia. She earned Master’s degrees from Columbia University and Yale Law School, and a doctorate from Harvard University in political science. She holds the Job and Gertrud Tamaki Professorship at the University of Washington (UW). She has published a half-dozen books on space technology and geopolitics, and is working now on The Age of Newspace. She serves as Co-Chair of the U.S. Japan Space Forum, directs both the Space Security Initiative (SSI) and the project on Emerging Frontiers in Space at UW, and is the founding co-director of the Space Policy and Research Center (SPARC) at UW. She is passionate about contributing to the educational ecosystem for fostering the space sector through bridge-the-gap activities, and is a member of the Washington State Space Coalition (WSSC). She is also a contributor for Forbes on the space industry (https://www.forbes.com/sites/saadiampekkanen/#5897783f7d3f).

Saadia Pekkanen, Professor, University of Washington
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The event is jointly sponsored by the Japan Program at the Shorenstein Asia-Pacific Research Center and the Japan Foundation Center for Global Partnership.
 
 
Since Frey and Osborne showed that 47% of US job would be substituted by AI, the penetration of AI into labor markets has been discussed in every country. In Japan, Benjamin David estimates 55% of jobs will vanish by the introduction of AI. However, these estimates are based only on the technological upper bound. We have to condifer of the economic mechanism behind it, especially the specificity of Japanese labor markets. In this seminar, I will summrize the characteristics of Japanese labor markets from the view point of task distribution, which reflects the technological aspect of them. Then, comparing with US data, I will discuss the role of economic institutions/circumstances and the future direction.
 
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Ryo Kambayashi is a Professor at Institute of Economic Research, Hitotsubashi University in Japan.  His field of research include labor economics, Japanese economy, economic history, and law and economics.  Based on the methodology of standard labor economics, Kambayashi's research interest is centered on the empirical investigations on the economic mechanism of current Japanese labor markets. Through several papers on wage and employment, he has found that the current transition of Japanese labor markets since 1990s has two aspects; that is, the changing part where so called non-standard workers have rapidly increased and the unchanged part where so called Japanese Employment System remains firmly. This disparity in labor markets does not come from the legal assignment surrounding the labor markets but from a spontaneous evolution, just because the Japanese Labor Law has strongly respected the mutual agreement between workers and employer which can officially create exemptions from legal regulations. Then, I am expanding my research agenda into the associations of labor markets with other parts of Japanese economy, such as trade, productivity, self-employment, to understand the whole of Japanese society. I am also gradually expanding the research into historical developments of institutions to find the evidence of spontaneous evolution of labor market institutions, e.g. the network of public employment agency was constructed by absorbing those of private agencies.  Kambayashi holds a PhD, an MA, and a BA in economics, all from University of Tokyo. 
Ryo Kambayashi, Professor, Institute of Economic Research, Hitotsubashi University
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