Governance

FSI's research on the origins, character and consequences of government institutions spans continents and academic disciplines. The institute’s senior fellows and their colleagues across Stanford examine the principles of public administration and implementation. Their work focuses on how maternal health care is delivered in rural China, how public action can create wealth and eliminate poverty, and why U.S. immigration reform keeps stalling. 

FSI’s work includes comparative studies of how institutions help resolve policy and societal issues. Scholars aim to clearly define and make sense of the rule of law, examining how it is invoked and applied around the world. 

FSI researchers also investigate government services – trying to understand and measure how they work, whom they serve and how good they are. They assess energy services aimed at helping the poorest people around the world and explore public opinion on torture policies. The Children in Crisis project addresses how child health interventions interact with political reform. Specific research on governance, organizations and security capitalizes on FSI's longstanding interests and looks at how governance and organizational issues affect a nation’s ability to address security and international cooperation.

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Indonesia, Philippines and Thailand are plagued by corruption. Why? What have their governments done to curb the phenomenon? How effective or ineffective have their efforts been, and why? In the course of addressing these questions, Professor Quah will argue for anti-corruption measures that are comprehensive in nature and backed by political will. He will also conclude that Thailand appears to have had greater success in stemming corruption than either the Philippines or Indonesia. In explaining that difference, he will highlight, among other factors, the reform constitution that Thailand adopted in 1997.

Jon Quah is co-editor of the Asian Journal of Political Science and presently a visiting scholar at the Shorenstein Asia-Pacific Research Center. In 1992-98 he chaired the Department of Political Science at the National University of Singapore. He has held visiting positions at Stanford University and Harvard University, among other institutions. Relevant publications include Curbing Corruption in Asia: A Comparative Study of Six Countries (2003); "Causes and Consequences of Corruption in Southeast Asia," Asian Journal of Public Administration (2003); and "Democratization and Political Corruption in the Philippines and South Korea," Crime, Law and Social Change(2004). His advisory positions have included being lead consultant for a UN Anti-Corruption Mission to Mongolia.

Philippines Conference Room

Jon Quah Professor of Political Science Speaker National University of Singapore
Seminars
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On 26 December 2004, an earthquake and tsunami struck Aceh in the Indonesian archipelago, killing an estimated 130,000 people. The catastrophe was a catalyst for the Free Aceh Movement (GAM) and the Indonesian government to come together in Helsinki to seek an end to the nationalist/separatist conflict that had wracked the territory since the 1970s. GAM agreed to drop its demand for outright independence in exchange for a high level of genuine autonomy, while the Indonesian government made various concessions, including allowing the creation of local political parties in Aceh. Jakarta wanted to end a costly, debilitating, and seemingly endless conflict; encourage needed foreign investment in the oil and gas sector; and bring the military in Aceh under civilian control. GAM, in turn, realized that the war was unwinnable; the Acehnese people had suffered enough; and many of GAM's aims could be achieved by democratic means in Indonesia's reforming political system.

Based on his unique experience as an advisor to GAM during the 2005 talks, Prof. Kingsbury will outline the peace process, explain how agreement was achieved, and comment on Aceh's future inside Indonesia.

Damien Kingsbury is director of the Masters Program in International and Community Development at Deakin University. His many publications include The Politics of Indonesia (3rd ed., 2005); South-East Asia: A Political Profile (2nd ed., 2005); and Power Politics and the Indonesian Military (2003). He has a Ph.D. and an M.A. from Monash University and an M.S. from Columbia University. He is presently writing a book on political development.

Professor Kingsbury's talk is co-sponsored with the Center for Southeast Asian Studies at the University of California - Berkeley

Daniel I. Okimoto Conference Room

Damien Kingsbury Director of the Masters in International Community and Development Program Speaker Deakin University, Australia
Seminars
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Professor Park will address the changes that have occurred in the Chinese labor market over the past quarter century, focusing on the extent to which labor market reforms have successfully created a well-functioning market for labor with a high degree of labor mobility. Like other rapidly growing developing countries, China has experienced rapid structural change featuring a steady flow of labor from agriculture to industry, and from rural areas to urban areas. As a transition economy, China has shifted gradually from planned allocation of labor in state-sector jobs to a more open labor market. Although the large magnitudes of these changes are impressive, reform of the labor market has been halting, uneven, and difficult, with much additional reform still required. Prof. Park will look at several dimensions of the Chinese labor market: labor allocation, wage setting, regional differences, and ownership sectors. He will conclude by discussing the key policy challenges that lie ahead.

Albert Park is Associate Professor of Economics and Faculty Associate of the Center for Chinese Studies at the University of Michigan. He is also a research affiliate at the Population Studies Center and chairs the faculty steering committee for Michigan's China Data Center. Dr. Park has been a visiting professor and researcher at Harvard University and Peking University, as well as other research institutions in China and Taiwan, and has served as a consultant for the World Bank on several projects analyzing economic development issues in China, including the Bank's current China Poverty Assessment project. Dr. Park earned a Ph.D. in applied economics from the Food Research Institute and Department of Economics at Stanford University in 1996. His research interests include economic development, economic transition, labor, applied microeconomics, and the Chinese economy. He is involved in numerous collaborative research activities in China, including several large survey projects to study labor market developments in urban areas, and rural education, health, and labor outcomes. He has published over thirty journal articles and chapters in edited volumes, and is the coeditor of a forthcoming volume titled Education and Reform in China. At Michigan, he teaches a graduate course on the microeconomics of development and an undergraduate course on the Chinese economy.

This series is co-sponsored with the Center for East Asian Studies at Stanford University.

Philippines Conference Room

Albert Park Associate Professor of Economics Speaker University of Michigan
Seminars
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Based on recent work in Guangzhou, Xiamen, Taipei, and Hong Kong, this talk will address the relationship of NGO's to political transformation. It will focus in particular on three problems: the relation between state and society under various Chinese regimes, the relation between official and unoffical organizations, and problems of scaling up civil society organizations.

Taiwan/China Seminar Series

Philippines Conference Room

Robert Weller Professor of Anthropology Speaker Boston University
Seminars
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The profile of foreign domestic workers in Hong Kong has changed in significant ways since Hong Kong's reunification with the People's Republic of China in 1997, the Asian financial crisis of the late 1990s, and the SARS outbreak of 2003. Several changes have also appears, the most striking of which is the influx of about 90,000 Indonesian domestic workers and the relative decrease in the number of Filipinas. Another change is the tenor and scope of the workers' activism.

Drawing from recent migrant worker protests (including the anti-WTO protests of December 2005,) Dr. Constable considers the increasingly global and transnational aspects of foreign domestic worker activism and the increased breadth of their networks and affiliations, as well as the implications of such activism in relation to newly generated and displaced meanings of citizenship and human rights within and beyond the context of the self-ascribed "Asian World City" of Hong Kong.

Nicole Constable received her MA and PhD degrees from the University of California at Berkeley in 1989. She is a sociocultural anthropologist whose interests include the anthropology of work; ethnicity, nationalism, and history; gender, migration, and transnationalism; folklore; and ethnographic writing and power.

Her geographical areas of specialization are Hong Kong, China and the Philippines. She has conducted fieldwork in Hong Kong on constructions of Hakka Chinese Christian identity and on resistance and discipline among Filipina domestic workers.

Her current research involves Chinese and Filipino immigrants to the U.S. and U.S.-Asian correspondence marriages.

Philippines Conference Room

Nicole Constable Professor, Department of Anthropology Speaker University of Pittsburgh
Seminars
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Pre-emption used to be the watchword of Bush foreign policy. The world's sole superpower would not hesitate to wield force against an imminent threat to its security. The old doctrines of the Cold War era -- of containment and deterrence of a potential enemy -- were disdained as weakness.

Now, facing the most serious national security challenge since the end of the Cold War -- the nuclear weapons programs of Iran and North Korea -- the administration is reaching back to those oldies but goodies.

The determination of Iran and North Korea to develop nuclear weapons has so far been largely unchecked by this administration. The North Koreans, since breaking out of the freeze agreed to during the Clinton administration, have been steadily producing plutonium, and presumably warheads. The Iranians, after the election of hard-line President Mahmoud Ahmadinejad, reversed their deal to suspend uranium-enrichment activities, the crucial step toward nuclear weapons.

Diplomatic negotiations in both cases have produced little movement. But a military strike on their nuclear facilities is almost inconceivable. The danger of potentially horrendous retaliation and the sapping of American will and resources in Iraq have almost killed that option.

"As shaky as a policy of containment is, it is certainly preferable to confrontation, 'rollback,' or 'regime change' through military force,'' wrote conservative national security expert Thomas Donnelly in a recent analysis. "Containment is, in fact, regime change by tolerable means, and the solution to the problems of Iran and North Korea lie in an indirect approach.''

While we try to contain a nuclear Iran and North Korea, suggested Donnelly, we should surround Iran with movements for democratic change in Iraq and Afghanistan. North Korea, he believes, will be changed through Chinese influence.

Donnelly cautions that there may be circumstances when containment proves even more risky than intervention -- say if Iran tries to slip nuclear materials to Islamist terrorists. Iran is less stable than the Soviet Union, though it is worth remembering that the first 15 years of the Cold War brought us to the brink of nuclear war once and close to it several times.

For the administration, this is a stealth policy shift. That is no surprise. It flows directly from the mess in Iraq, a mistake the administration can never really acknowledge.

For those who once touted American global domination, it is still hard to face the reality that containment is impossible without allies and partners. By ourselves, we cannot press those regimes by cutting off their access to investment and advanced technology.

The administration is rightly moving to take Iran to the United Nations Security Council to seek a mandate to enforce the demands of the International Atomic Energy Agency. North Korea is undoubtedly watching this carefully.

China and Russia, who have veto power in the Security Council, are reluctantly going along. But they still resist any move to impose economic sanctions against Iran. Nor are the Europeans, Japanese and others who depend on oil and gas from Iran eager to halt their investment and trade.

Similarly in the case of North Korea, the Chinese and South Koreans are not prepared to cut the flow of economic aid and investment into the otherwise isolated North Korean state. This is less a case of economic interests than a fear that sanctions will escalate to greater confrontation, even war.

"The strategic challenge the Bush administration faced was to convince the rest of the world that Iran is more dangerous than the United States,'' says nuclear proliferation expert George Perkovich. "They finally did it -- and it took Ahmadinejad to do it,'' referring to the inflammatory rhetoric, including threats to "wipe Israel off the map,'' issued by the Iranian leader.

The administration made some headway down the same path with North Korea by engaging in direct talks with that regime this past fall, dispelling the image that the United States was unwilling to negotiate. But that progress has been undermined recently because hard-liners inside the Bush administration pulled the plug on such talks.

Managing an effective containment partnership will be a huge challenge. And there is still tremendous resistance inside the administration to engaging and negotiating -- and compromising -- with the enemy. But that was always a part of making containment succeed, even at the height of the Cold War.

Containment is no silver bullet. It is merely, as Donnelly puts it, "the least bad alternative, but not by a lot, and not under all circumstances.'' And right now, it is the only game in town.

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In this paper we set out to accomplish three objectives. First, we wanted to track and describe the way the fiscal reforms have been implemented in China's townships. Second, we have tried to identify the effect that the fiscal reforms have had on the fiscal health of the township. This objective was pursued in three contexts: the effect on the average township; the effect on townships in different provinces; and the effect on townships in poor and rich townships. Finally, we sought to assess the impact that the fiscal reforms had on village fiscal health and farmer satisfaction.

Although farmers certainly have expressed their support for tax and fee reduction through a variety of media, our results show that the fiscal reforms are far more complicated and complex than tax reduction policies. They include a large set of policies that have sought to reassign expenditures, realign responsibilities (for control over resources that flow from county to town and town to county), reduce the importance of extrabudgetary and self raised funds, and increase investment into the public goods infrastructure in rural areas. When assessing the broad impact of these policies on township fiscal health, we find the average township has not fared well. Although county to town transfers have risen, the targeted transfers to offset the decline due to the tax and fee reduction policies do not nearly cover the losses of fiscal resources in the system as a whole. In addition, many policies are putting increasing control in the hands of the county financial office. through changes such as increasing requirement to hand up town to county transfers and expenditure reassignments (even though the fiscal resources come out of the township's budget). Hence, overall the fiscal condition of township's operating budget has clearly deteriorated between 2000 and 2004.

The bright side of the fiscal reforms has come in the area of capital budget management and flows of fiscal resources into new infrastructure investment. Between 2000 and 2004 there has been a veritable explosion of investment into the rural economy, mostly in roads, but also into irrigation, drinking water and to a lesser degree into clinics. The investments have risen largely due to the rising allocation by upper level governments. While we show that the rising investment from any source increases farmer satisfaction, there are some concerns with the new effort to improve rural infrastructure. First, in many places (and especially in Jiangsu and other richer townships) as investments from above have risen requirements for matching funds apparently have led to an increase in township debt. Second, the increasing reliance investment from above also has a drawback. While any investment from any source is shown to increase the satisfaction of farmers, ceteris paribus, when the investments come from above, they appear to reduce farmer satisfaction. Apparently, when villages are less involved with the project selection, design and implementation, the projects leave farmers less satisfied.

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Report to the World Bank, Fiscal Reform and the Role of the Township
Authors
Scott Rozelle
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Since the mid-1990s, China, Japan, and Korea have come under severe pressure to restructure and reform their economic systems. Indeed, across East Asia, governments are attempting to address their structural problems with a variety of reform programs. It is still too early to declare the triumph of financial globalization, and East Asian financial and corporate systems continue to fall short of global standards in structure and performance. Yet now that the reform process has been under way for more than five years, old models have been discarded and new patterns are emerging.

This book identifies and accounts for empirical regularities across East Asian countries and sectors, which previous studies have left largely unexplained. In general, the distinguished contributors to this collection conclude that the interaction between financial globalization and domestic politics is the key to unlocking the reform process. In particular, the authors address issues important to the study of East Asian political economies—their receptivity to financial globalization, their financial integration, the convergence or divergence of their economic institutions, and the impact that their institutional transformations will have on national competitive advantage and the global economic system.

This title is out of print. Download PDFs below.

  1. Front matter/ Financial Globalization and East Asian Capitalism: An Overview (Jongryn Mo and Daniel I. Okimoto)
  2. The Politics of Reform in Japanese Finance: Assessing the Relative Influence of Foreign Investors (Jennifer Amyx)
  3. Policymaking in the Era of Financial Globalization: The Battle for Japanese Corporate Reforms, 1996–2002 (Yves Tiberghien)
  4. Turning a Crisis into an Opportunity: The Political Economy of Korea’s Financial Sector Reform (Wonhyuk Lim and Joon-Ho Hahm)
  5. East Asian Capital Flows: Political Networks, Liberalization, and Crises (A. Maria Toyoda)
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Financial Globalization and East Asian Capitalism

Authors
Daniel I. Okimoto
Book Publisher
Shorenstein APARC
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Ten years ago, in the summer of 1995, it was fashionable in Washington and Seoul to predict the imminent collapse of North Korea's political and economic systems, and even the state itself. While clearly an errant forecast, it is easy to see why pundits and analysts thought as they did. Kim Il-Sung had died. Kim's son and successor, Kim Jong-Il, was failing to lead just as the country suffered a massive agricultural failure. A nuclear-weapons dispute with the United States had forced a costly full-scale mobilization of the country's million-man army. It was likewise clear that North Korea's industry had shut down; night imagery of the peninsula showed, quite literally, that the lights were out in North Korea.

Ten years on, this volume aims to rectify misconceptions and increase collective understanding about North Korea. It is intended to present a snapshot of what is happening in North Korea now -- economically, politically, and socially. To be sure, much of the country remains in shadow, and there is much we still do not know. Moreover, issues of North Korean nonproliferation are so often binary that compromise becomes difficult, if not impossible.

The distinguished contributors -- specialists in politics, economics, human rights, and security -- advocate a subtler, more multidimensional approach to the North Korea problem. Offering cautionary perspective on this poorly understood place, they highlight recent positive developments and suggest solutions to seemingly intractable problems. Most attest that economics, commerce, and integration -- all arenas in which slow progress is being made -- may be the most powerful forces for change on the Korean peninsula. This timely book encourages thoughtful, pragmatic discussion about North Korea and seeks to light the road ahead, for the Korean Peninsula and beyond.

(This book is now out of print. You may download the full text here.)

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Philip Yun
Gi-Wook Shin
Book Publisher
Shorenstein APARc
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"One Nation under God?" is a chapter in Religion and Religiosity in the Philippines and Indonesia: Essays on State, Society, and Public Creeds, edited by Theodore Friend and published by the Center for Transatlantic Relations, SAIS.

This comparative exploration looks at religion and politics in the social dynamics of Southeast Asia's two most populous nations. The Philippines and Indonesia are treated as one vast "Phil-Indo" archipelago. Eight leading scholars contribute interwoven and contending essays. The authors find that while neither country promotes a state religion, both lack partitions between church and state. Social dynamics of faith in each elude constitutional restrictions. In the Philippines, a Spanish tradition of an ecclesiastical state exists in tension with a Jeffersonian notion of separation of realms. In Indonesia, pre-Islamic concepts of a god-king fuse state and society, as modern initiatives surge from the premise of a prevailing Islamic community. Official religiosity pervades Indonesian national life, while Filipinos act out their private religiosity en masse, trying to overcome deficiencies in state and church. The book includes 38 photographs, in color and black and white, with commentaries that further illustrate the themes of each chapter.

Other contributors include Azyumardi Azra (University Islam Negeri, Indonesia), Jose M. Cruz (Ateneo de Manila University, The Philippines), Theodore Friend (Foreign Policy Research Institute), Robert W. Hefner (Institute for the Study of Economic Culture, Boston University), Vicente Leuterio Rafael (University of Washington), Jose Eliseao Rocamora (Institute for Popular Democracy, The Philippines), and David Joel Steinberg (Long Island University).

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History, Faith, and Identity in Indonesia

Authors
Donald K. Emmerson
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