Business
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Financial reform is one of the key priorities identified at the Third Plenum in November while state-owned enterprises got little mention.  But will financial reform possibly lead to a fundamental reform of state-owned companies?

Nicholas R. Lardy, Anthony M. Solomon Senior Fellow, joined the Peterson Institute for International Economics in March 2003. Previously, he was a senior fellow in the Foreign Policy Studies Program from 1995 until 2003. Before Brookings, he served at the University of Washington, where he was the director of the Henry M. Jackson School of International Studies from 1991 to 1995. From 1997 through the spring of 2000, he was also the Frederick Frank Adjunct Professor of International Trade and Finance at the Yale University School of Management. He is an expert on Asia, especially the Chinese economy.

Lardy is a member of the Council on Foreign Relations and is a member of the editorial boards of the China Quarterly, Journal of Asian Business,China Review, and China Economic Review. He received his BA from the University of Wisconsin in 1968 and his PhD from the University of Michigan in 1975, both in economics.

This event is co-sponsored with CEAS and is part of the China under Xi Jinping series.

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Nicholas R. Lardy Anthony M. Solomon Senior Fellow Speaker Peterson Institute for International Economics
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A year has passed since the Japanese government embarked on the new economic policy package called “Abenomics” with three “arrows”: aggressive monetary easing, flexible fiscal policy, and a growth strategy. The package is designed to bring the Japanese economy out of 20 years of stagnation and 15 years of deflation, and put it on a sustainable growth path. How effective has the policy package been during the first year of the Abe administration?  Will it succeed in bringing sustainable growth to Japan?  Professor Takatoshi Ito, a prominent expert on the Japanese economy, tackles these questions.

Takatoshi Ito, Professor at Faculty of Economics and Dean of Graduate School of Public
Policy, University of Tokyo, has taught extensively both in the United States and Japan,
including at University of Minnesota, Hitotsubashi University, and Harvard University.
He held visiting professor positions at Harvard University (1986-87 and 1992-94), Stanford
University (as National Fellow; 1984-85); Columbia Business School (fall semester, 2009),
and Tun Ismail Ali Chair Professor at University of Malaya (summer semester, 2008). His
public sector experiences include Senior Advisor in the Research Department, IMF
(1994-97); Deputy Vice Minister for International Affaires at Ministry of Finance
(1999-2001); and a member of the Prime Minister’s Council of Economic and Fiscal
Policy (2006-08). He is an author of many books including The Japanese Economy (MIT
Press), The Political Economy of the Japanese Monetary Policy (MIT Press), and
Financial Policy and Central Banking in Japan (MIT Press), and more than 50
refereed academic journal articles on international finance and the Japanese economy,
including ones in American Economic Review and Econometrica. He has distinguished
academic and research appointments such as President of the Japanese Economic
Association in 2004; Fellow of Econometric Society, since 1992; Research Associate at
National Bureau of Economic Research since 1985; and Faculty Fellow, Centre for
Economic Policy Research, since 2006. His research interest includes capital flows and
currency crises, microstructures of the foreign exchange rates, and inflation targeting. He
contributes frequently op-ed columns and articles to Financial Times, Nihon Keizai Shinbun,
Mainichi Shinbun, and Toyo Keizai Weekly.

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Takatoshi Ito Speaker University of Tokyo
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Stanford-Sasakawa Peace Foundation New Channels Dialogue 2014

Energy Challenge and Opportunities for the United States and Japan

 

February 13, 2014

Bechtel Conference Center, Encina Hall, Stanford University

Sponsored and Organized by Sasakawa Peace Foundation (SPF) and Shorenstein Asia-Pacific Research Center (S-APARC) in Association with U.S.-Japan Council

 

Japan Studies Program at Shorenstein APARC, Stanford University has launched a three-year project from 2013 to create new channels of dialogue between experts and leaders of younger generations from the United States, mostly from the West Coast, and Japan under a name of "New Channels: Reinvigorating U.S.-Japan Relations," with the goal of reinvigorating the bilateral relationship through the dialogue on 21st century challenges faced by both nations, with a grant received from the Sasakawa Peace Foundation.

The dialogue would be structured to examine the new challenges of the 21st century, in particular, economic growth and employment creation; innovation and entrepreneurship; energy; and East Asian regionalism, including regional security issues, with the aim of developing mutual understanding and constructing a new relationship for cooperation in dealing with 21st century challenges through the dialogue between scholars, entrepreneurs, and policy makers from the two countries. We are hoping that this multi-year initiative will generate a network of trans-Pacific expertise as a vital supplement to existing avenue of communications.

Given the recent dramatic changes in energy environments in both countries, such as shale gas developments in the U.S, and after Fukushima challenges in Japan, this year, as an inaugural year, we will be examining energy issues. Panel discussions open to the public, with the title of "Energy Challenges and Opportunities for the U.S. and Japan," will be held on February 13th, followed by a dialogue among invited participants on 14th, at Stanford University with the participation of policy makers, business leaders, scholars, and experts from both countries.

In the panel discussions we will examine following issues:

  1. Discovery of shale gas deposits in various parts of the world has drastically changed the geopolitics of energy.
  2. New technologies for energy production have been creating various challenges to the existing system of energy supply.
  3. As emerging economies grow rapidly, they will demand increasing amount of energy. They face a challenge of creating a sustainable and secure energy supply system.
  4. After the Fukushima Daiichi nuclear disaster, the call for enhancing safety of nuclear power plants has intensified. While public’s trust in nuclear technology wanes, increasing number of nuclear power plants are built in emerging countries. Nuclear energy policy has become politically contentious.
  5. Use of information technology, such as smart grid, is likely to change the ways energy is supplied and distributed.
  6. The world has not found an effective international framework for slowing the global warming and securing reliable energy supply to support economic growth.

We are very pleased that we were able to invite quite impressive participants, policy makers, business leaders, scholars and experts from the two countries, who would appear as panelists in the panel discussions on February 13th.

We expect that through this panel discussion we would be able to define the challenges we are facing, indicate the pathways we should proceed to, and identify the areas for cooperation.

On the following day, February 14th, we will have the dialogue closed to the public discussing issues and possible cooperation between the U.S. and Japan on energy among invited participants.

We hope to publish a summary of conference presentations and the dialogue discussion after the conference.

Bechtel Conference Center

Conferences

Shorenstein APARC
Stanford University
Encina Hall, Room E301
Stanford, CA 94305-6055

(650) 725-8659 (650) 723-6530
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Corporate Affiliate Visiting Fellow
jong_soo_paek.jpg MBA

Jong Soo Paek is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2014.  Paek has been working at Samsung Motors, Samsung Corporations, and Samsung Electronics since 1997 in various teams such as Marketing Strategy and Strategy Planning.  Most recently, he was Senior Manager in Corporate Strategy Offices and was responsible for public relations and communications.  Prior to joining the Corporate Strategy Office, he was the manager responsible for strategy planning.  Paek majored in Business Administration and received his bachelor's and master's degree from Seoul National University.

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This volume collects 22 articles by Masahiko Aoki, selected from writings published over the course of his 45-year academic career. These fascinating essays cover a range of issues, including mechanism design, comparative governance, corporate governance, institutions and institutional change, but are tied together by a focus on East Asia and a comparative institutional framework.

Specific topics include the early stages of mechanism design theory, comparative analysis of vertical, horizontal and modular industrial coordination and its applications, cooperative game-theoretic approaches to the diversity of corporate government structure, the endogenous nature of institutions, and comparative and historical analysis of institutions in Japan, China and Korea.

Students, professors and scholars with an interest in comparative institutional studies and East Asian studies will find this book a useful and illuminating resource.

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Books
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Edward Elgar Pub
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Masahiko Aoki
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978 1 78254 839 3
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This paper contributes to the discussion of how Public Private Interplay (PPI) can be used to foster Next Generation Access (NGA) buildouts in Europe by introducing the experience of Japan. Japan, which succeeded in both promoting nationwide network buildouts and fostering competitive dynamics that led to the world's fastest and cheapest broadband services and deploying them nationwide. The process entailed deregulation, which unleashed new entrepreneurial private actors, and re-regulation that protected them from incumbent carriers. The resulting market dynamics lowered Digital Subscriber Line (DSL) prices, influencing the market price for Fiber-To-The-Home (FTTH), for which the government had heavily subsidized carriers. Central government initiatives, combined with local incentives, led to an almost 100% broadband accessibility within a few years. However, Japan quickly discovered that taking advantage of the broadband environment to produce innovation, productivity growth, and economic dynamism, was far more difficult than facilitating its creation. It discovered regulatory barriers for the use of Information and Communications Technology (ICT) in various areas of the economy. Like Europe, Japan was not home to the ICT lead-user enterprises and industries that drove the ICT revolution, producing innovation and productivity gains. Moreover, the advent of US-centered cloud computing services potentially decreases the minimum bandwidth requirement to access global-scale computing power. The development of wireless technologies far cheaper than Japan's nationwide FTTH also merits serious consideration for European policy discussions.

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Communications & Strategies
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Kenji E. Kushida
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The Year of the Horse will run (so to speak) from 31 January 2014 to 18 February 2015.  Many domestic, regional, and global issues will occupy the attention of Southeast Asian leaders and societies and their counterparts in the US, China, and Japan among other countries.  In conversation with SEAF director Don Emmerson, Ernie Bower will highlight the most important of these policy issues and their implications.  Possible topics may include the repercussions of Chinese muscle-flexing over the East and South China Sea, political strife in Thailand, quinquennial elections in Indonesia, and Myanmar's leadership of ASEAN including the plan to declare an ASEAN Community in 2015. 
 
Ernest Z. Bower is one of America's leading experts on Southeast Asia, founding president and CEO of the business advisory firm BowerGroupAsia, a former president of the US-ASEAN Business Council, and a policy adviser to many private- and public-sector organizations in the US interested in Southeast Asia.  
 

Daniel and Nancy Okimoto Conference Room

Ernest Z. Bower Senior Adviser and Sumitro Chair for Southeast Asian Studies Speaker Center for Strategic and International Studies, Washington, DC
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Korea is one of the leading countries in technology-driven global markets for semiconductors, HDTVs, and mobile phones; and in shipbuilding industry, but Korea has already faced challenges in its global markets.

Dr. Dongwook Lee, 2013 Visiting Scholar in Korean Studies, will discuss Korea's industrial convergence policies that would help Park administration achieve its national agenda, a creative economy.

Dr. Lee is Director General at the Ministry of Trade, Industry and Energy in Korea, and has served as a government official for the past twenty-two years. He led and took part in developing industrial convergence policies and laws. Dr. Lee holds a BA in business administration from Yonsei University, an MA in public administration from Seoul National University, and a PhD in economics from Konkuk University, in Korea. 

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Dongwook Lee 2013 Visiting Scholar, Shorenstein APARC Speaker
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Historically, in Japan, out-of-court corporate restructurings have played a significant role in disciplining managers in the near-absence of hostile takeover activity and shareholder activism. This paper analyzes management turnover in a large sample of Japanese firms that underwent restructurings between 1981 and 2010. I find that restructurings that happen in later stages of financial distress, and those that are not initiated by the firm itself, are more likely to involve management turnover, as are restructurings in which the firm's main business operations are left intact. Furthermore, in restructurings after the reforms around the year 2000, management turnover is more likely to occur if the local potential managerial labor market is substantial. After controlling for firm characteristics and the firm's initial financial condition, it does not appear that management turnover is associated with an improvement in post-restructuring operating performance--in fact, the effect is significantly negative by estimates that address the non-random nature of management turnover. However, for restructurings led by equity funds, management turnover is associated with a more successful turnaround of the firm's performance. These results suggest that equity funds possess the ability to locate and recruit talented outside managers in a thin market for experienced managers.

 

Michael Furchtgott is an economist interested in corporate finance and governance. His current research investigates Japanese corporate restructurings and the behavior of firms and lenders when financial distress arises.

Furchtgott has completed his PhD in economics at the University of California, San Diego, where his research on corporate financial restatements has demonstrated that firms frequently circumvent laws designed to protect investors.

He holds a BA in economics and mathematics from Columbia University.

Daniel and Nancy Okimoto Conference Room

Shorenstein APARC
Encina Hall C331
616 Serra Street
Stanford, CA 94304-6055

(650) 724-9747 (650) 723-6530
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Shorenstein Postdoctoral Fellow in Contemporary Asia
FURGHOTT,_Michael_3x4.jpg PhD

Michael Furchtgott is an economist interested in corporate finance and governance. His current research investigates Japanese corporate restructurings and the behavior of firms and lenders when financial distress arises.

Furchtgott has completed his PhD in economics at the University of California, San Diego, where his research on corporate financial restatements has demonstrated that firms frequently circumvent laws designed to protect investors.

He holds a BA in economics and mathematics from Columbia University.

Michael Furchtgott Postdoctoral Fellow in Contemporary Asia Speaker Shorenstein APARC
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