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Corporate Affiliate Visiting Fellow
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Osamu Kishiyama is a corporate affiliate visiting fellow at Shorenstein APARC for 2006-07. Prior to joining Shorenstein APARC, he has been with Sumitomo Corporation for nine years. He currently serves as senior staff in the net business department, which is responsible for incubating, developing, and investing in the business-to-consumer (B2C) and business-to-business (B2B) sectors of the e-marketing and media contents business areas. Kishiyama completed his undergraduate study at Hokkaido University in Hokkaido where he majored in economics, with a focus on accounting.

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Against the backdrop of export-led growth of some economies -- most notably China and India -- human development issues in Asia tend to be overlooked. The 2006 report Trade on Human Terms, produced by the United Nations Development Programme, finds that trade has contributed to further increasing the inequality both between and within countries. In addition, it warns that many of the region's open economies, particularly the East Asian success stories, are creating far fewer jobs, especially for youth and women, and experiencing "jobless growth." Many of the developing countries in the Asia-Pacific are now net importers of agricultural products; food security has thus become an emerging issue.

While Asia and the Pacific have embraced globalization, the regions poor are being left behind and will be so without determined action by governments. The report recommends that those countries adopt bold new policies that harness trade and economic growth, suggesting an "eight-point agenda" that includes investing for competitiveness; adopting strategic trade policies; restoring a focus on agriculture; combating jobless growth; and others.

Dr. Hafiz A. Pasha will discuss the findings and recommendations of this ground-breaking and thoughtful report which can be viewed at:

Asia - Pacific Human Development Report 2006

Dr. Hafiz A. Pasha is UN assistant secretary-general and UNDP assistant administrator and director of the Regional Bureau for Asia and the Pacific. He has served as the commerce and trade minister, minister for finance and economic affairs, deputy chairman of the Planning Commission, and education minister in three government administrations in Pakistan.

Prior to his government work, Dr. Pasha was the vice chancellor/president of the University of Karachi and dean and director of the Institute of Business Administration in Karachi, Pakistan.

Dr. Pasha has published extensively in the fields of trade, public finance, social development, and poverty reduction. He has an M.A. from Cambridge University and a Ph.D. from Stanford University.

Pasha was recently awarded the Congressional Medal of Achievement by the Philippines Congress in recognition of his work on poverty reduction, achievement of the Millennium Development Goals (MDGs) by the Asia-Pacific countries and his role in leading UNDP's response to the 2004 tsunami tragedy.

Philippines Conference Room

Hafiz A. Pasha UN Assistant Secretary General and Director of the Regional Bureau for Asia and the Pacific Speaker The United Nations Development Programme
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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.

Conference Agenda
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Bechtel Conference Center

Conferences

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

(650) 725-0121 (650) 723-6530
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SPRIE Visiting Scholar
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Bou-Wen Lin is Professor of Institute of Technology Management at National Tsing Hua University, Taiwan. He gained his doctorate in Management of Technology in 1998 from Rensselaer Polytechnic Institute, Troy, New York. He is a teacher and writer in the fields of international technology transfer, new product development, real options, and strategic management of technology.

Lin is author of articles in several journals including IEEE Transactions on Engineering Management, Journal of Business Research, R&D Management, International Journal of Human Resources Management, and Technological Forecasting and Social Change. His current research interests include technology valuation, interfirm collaboration, knowledge management in manufacturing firms, and new venture management.

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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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SPRIE benefits from the experience and knowledge of its Advisory Board, and one member of the Board and his company were recently the focus of a Newsweek article called "Shanghai Starts Up," a look at how some Chinese software firms are fighting to "jack up outsourcing to a new level."

Steven Levy looked at Liu's company Augmentum, a rapidly expanding three-year-old software start-up whose programmers are working on projects that go beyond the traditionally "low- and medium-level programming" tasks that have usually been outsourced to China.

The article, which originally appeared in Newsweek's June 12, 2006 issue, examined the challenges that face Chinese software companies as they attempt to tap into their workers' creativity and innovation to tackle the most advanced programming projects at--as Liu puts it--"a third of the price it would cost our customers to do [it] in-house."

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George Krompacky
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On May 20-21, 2006, the Stanford Project on Regions of Innovation and Entrepreneurship (SPRIE) and the China Institute for Science and Technology Policy (CISTP) of Tsinghua University co-sponsored an international workshop in Beijing on "Greater China's Innovative Capacity: Progress and Challenges."

The workshop, held in collaboration with the Zhongguancun Science Park and the Industrial Technology Research Institute (ITRI), was hosted on the campus of Tsinghua University. Participation by more than 70 academics, industry leaders and government policy makers reflected many of the ongoing partnerships SPRIE holds with institutions, individuals and organizations around the world.

The nine workshop sessions and more than twenty paper presentations provided rich opportunities for engaging discussion and knowledge sharing. The output of this workshop will lead to the publishing of selected proceedings in the near future.

Theme and Topics

The workshop addressed how the innovative capacities in Greater China are evolving. What are the most significant areas of progress and challenge? Scholars and business leaders from the U.S., Europe and Asia were brought together to discuss new research and current practice of key aspects of Greater China's innovative capacity: inputs, processes, outputs, institution, government policies, business models and management strategies.

More specifically, the workshop focused on:

  • information and communications technologies
  • innovation across the value chain from R&D to business processes and models
  • development within and linkages among key regions and players in mainland China, Taiwan, Singapore and Silicon Valley
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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 flow of risk capital in India has increased substantially since 2000, an outcome that was significantly influenced by targeted reforms since 1999. A key problem, however, remains: over 90 percent of the money is invested in late-stage initiatives by mature firms. Even the remainder mostly finances new firms replicating proven business ideas. As a result, very few innovative startups are funded. This will have a negative ripple effect on the quality of late stage opportunities in later years.

The objective of this study is to identify causes and recommend improvements.

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The South Asia Initiative, Shorenstein APARC, and The Indus Entrepreneurs (TiE)
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Rafiq Dossani
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