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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Hate propaganda has been a feature of politics in India, Indonesia, and other Asian democracies long before the recent surge in interest in so-called “fake news” and intolerant populism in the West. This presentation dissects the political strategy of “hate spin,” which includes not only the use of hate speech or incitement, but also the creative manufacture of righteous indignation and popular mobilization framed as responses to victimhood. Examples include the “love jihad” conspiracy theory in India and blasphemy allegations in Indonesia, which have been used to devastating effect by religious nationalists. Existing religious-offense laws have backfired, while incitement laws, though necessary, are systemically incapable of dealing with hate propagandists’ highly sophisticated and distributed disinformation campaigns.  The speaker's book on this topic, Hate Spin, will be available for sale at his talk.

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Cherian George is a professor of media studies at Hong Kong Baptist University. He is the author of Hate Spin: The Manufacture of Religious Offense and its Threat to Democracy (2016), which was named on Publishers Weekly’s list of the 100 best books of 2016. Prof. George’s PhD is from Stanford University’s Department of Communication (2003). He was previously a journalist with The Straits Times in his native Singapore. His latest book on Singapore is the self-published Singapore, Incomplete: Reflections on a First World Nation’s Arrested Political Development (2017).

Cherian George Professor of Media Studies, Hong Kong Baptist University
Seminars
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Modern-day markets do not arise spontaneously or evolve naturally. Rather they are crafted by individuals, firms, and most of all, by governments. Thus "marketcraft" represents a core function of government comparable to statecraft and requires considerable artistry to govern markets effectively. Just as real-world statecraft can be masterful or muddled, so it is with marketcraft. 

In his new book, Steven Vogel builds his argument upon the recognition that all markets are crafted then systematically explores the implications for analysis and policy. In modern societies, there is no such thing as a free market. Markets are institutions, and contemporary markets are all heavily regulated. The "free market revolution" that began in the 1980s did not see a deregulation of markets, but rather a re-regulation. Vogel looks at a wide range of policy issues to support this concept, focusing in particular on the US and Japan. He examines how the US, the "freest" market economy, is actually among the most heavily regulated advanced economies, while Japan's effort to liberalize its economy counterintuitively expanded the government's role in practice. 

Marketcraft demonstrates that market institutions need government to function, and in increasingly complex economies, governance itself must feature equally complex policy tools if it is to meet the task. In our era-and despite what anti-government ideologues contend-governmental officials, regardless of party affiliation, should be trained in marketcraft just as much as in statecraft.

SPEAKER

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Steven K. Vogel, Il Han New Professor of Asian Studies and a Professor of Political Science at the University of California, Berkeley

BIO

Steven K. Vogel is the Il Han New Professor of Asian Studies and a Professor of Political Science at the University of California, Berkeley. He specializes in the political economy of the advanced industrialized nations, especially Japan. He recently completed a book, entitled Marketcraft: How Governments Make Markets Work (Oxford, 2018), which argues that markets do not arise spontaneously but rather are crafted by individuals, firms, and most of all by governments.  Thus “marketcraft” represents a core function of government comparable to statecraft.  The book systematically reviews the implications of this argument, critiquing prevalent schools of thought and presenting lessons for policy.  Vogel is also the author of Japan Remodeled: How Government and Industry Are Reforming Japanese Capitalism (Cornell, 2006) and co-editor (with Naazneen Barma) of The Political Economy Reader: Markets as Institutions (Routledge, 2008). His first book, Freer Markets, More Rules: Regulatory Reform in Advanced Industrial Countries  (Cornell, 1996), won the Masayoshi Ohira Memorial Prize. He edited his mother’s book, Suzanne Hall Vogel, The Japanese Family in Transition: From the Professional Housewife Ideal to the Dilemmas of Choice(Rowman & Littlefield, 2013), and a volume on U.S.-Japan Relations in a Changing World(Brookings, 2002).  He won the Northern California Association of Phi Beta Kappa Teaching Excellence Award in 2002, and the UC Berkeley Faculty Award for Outstanding Mentorship of Graduate Student Instructors in 2005.  He has been a columnist for Newsweek-Japan and the Asahi Shimbun, and he has written extensively for the popular press.  He has worked as a reporter for the Japan Times in Tokyo and as a freelance journalist in France. He has taught previously at the University of California, Irvine and Harvard University. He has a B.A. from Princeton University and a Ph.D. in Political Science from the University of California, Berkeley.

Steven K. Vogel, Il Han New Professor of Asian Studies and a Professor of Political Science at the University of California, Berkeley
Seminars
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No longer "estranged democracies," relations between the United States and India have been on a steady upward trajectory in recent years, though at times have fallen short of the lofty expectations set by others.  As we look ahead, the significance of a true U.S.-India security and economic partnership is just now coming into focus, and it is clear the potential is enormous.  Indeed, the positive ripple effects of a convergence between the world's two largest democracies would reverberate across Asia.  This opportunity, however, comes amid uncertain times in Asia.  China's march for primacy continues. Dangers from nuclear proliferation and rogue regimes loom large. The fractionalization of states and humanitarian crises are all too common.  We must then ask – what role can the United States and India play together to promote peace and stability, uphold and reinforce the post-World War II order, and shape and build new institutions across Asia and beyond? These are some of the questions Ambassador Verma will tackle in his remarks, while also providing historical context on the issues that have limited U.S.-India ties to-date. He will also provide insight on the future trajectory of the relationship, looking at how the United States and India -- two non-allies -- can work together to promote peace, economic growth, and democratic values during these uncertain times.

 

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Richard Verma is Vice Chairman and Partner at The Asia Group.  He previously served as the U.S. Ambassador to India from 2014 to 2017, where he led one of the largest U.S. diplomatic missions and championed historic progress in bilateral cooperation on defense, trade, and clean energy. Ambassador Verma also oversaw an unprecedented nine meetings between President Obama and Prime Minister Modi – leading to over 100 new initiatives and more than 40 government-to-government dialogues.

Ambassador Verma was previously the Assistant Secretary of State for Legislative Affairs, and also served for many years as the Senior National Security Advisor to the Senate Majority Leader.  He was a member of the WMD and Terrorism Commission and a co-author of their landmark report, “World at Risk.” He is a veteran of the U.S. Air Force, and his military decorations include the Meritorious Service Medal and Air Force Commendation Medal.

In addition to his role at The Asia Group, Ambassador Verma is a Centennial Fellow at Georgetown University’s Walsh School of Foreign Service, and he co-chairs the Center for American Progress’ U.S.-India Task Force.  Ambassador Verma is the recipient of the State Department’s Distinguished Service Award, the Council on Foreign Relations International Affairs Fellowship, and was ranked by India Abroad as one of the 50 most influential Indian Americans. He holds degrees from the Georgetown University Law Center (LLM), American University’s Washington College of Law (JD), and Lehigh University (BS).

This colloquia is co-sponsored with the Stanford Center for South Asia

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Richard Verma Vice Chair and Partner, The Asia Group, Former U.S. Ambassador to India (2014-2017)
Seminars
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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
Seminars
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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
Seminars
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For directions to the Jen-Hsun Huang Engineering Center, please click here.


The Asian Infrastructure Investment Bank (AIIB) commenced operations on January 16, 2016. The Bank has approved 24 projects totaling US$4.26 billion to date, and its approved membership totals 84 with 64 members having completed all membership requirements and 20 prospective members in the process of finalizing their membership.
 
President Jin Liqun will give his assessment of the bank’s first two years – its accomplishments and challenges – and the future direction of the Asian Infrastructure Investment Bank. What is the potential impact of AIIB’s financing for regional infrastructure, trade connectivity and economic relations? How can multilateral institutions and various stakeholders best address the US$26 trillion infrastructure gap (from 2016 to 2030) in Asia? How is the AIIB distinguishing itself from other multilateral development banks like the World Bank and the Asian Development Bank? What is the AIIB’s commitment and contributions toward global economic governance and best international practices?


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Jin Liqun
Jin Liqun is the inaugural President and Chair of the Board of Directors of the Asian Infrastructure Investment Bank (AIIB). Before being elected as the Bank’s first president, he served as Secretary-General of the Multilateral Interim Secretariat (MIS) tasked with establishing AIIB. Immediately prior to assuming the role of Secretary-General of the MIS, he was Chair of China International Capital Corporation Limited, China’s first joint-venture investment bank. From 2008 to 2013, he served as Chair of the Supervisory Board, China Investment Corporation. From 2009 to 2012, he served as Deputy Chair then subsequently as Chair of the International Forum of Sovereign Wealth Funds. From 2003 to 2008, Jin was Vice President, and then Ranking Vice President, of the Asian Development Bank (ADB), in charge of programs for South, Central and West Asia and private sector operations. He joined the Ministry of Finance in 1980, where he served as Director General and Assistant Minister before becoming Vice Minister in 1998. He was also a Member of the State Monetary Policy Committee. Earlier in his career, he served as Alternate Executive Director for China at the World Bank and at the Global Environment Facility as well as Alternate Governor for China at ADB. Jin holds a master’s degree in English Literature from Beijing Institute of Foreign Languages (now Beijing Foreign Studies University). He was also a Hubert Humphrey Fellow in the Economics Graduate Program at Boston University from 1987 to 1988. Jin is a national of the People’s Republic of China.


 

Mackenzie Room

Jen-Hsun Huang Engineering Building, 3rd Floor

475 Via Ortega, Stanford, CA 94305

Jin Liqun <i>President and Chair, Asian Infrastructure Investment Bank</i>
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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.

 

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Through previously unexamined data from Japan, Professor Robert Dekle presents results from a preliminary study shoing the impact of robotics on Japanese labor between 1980 and 2012.

Robert Dekle is a Professor at the Department of Economics, University of Southern California. His field of research include international finance, open-economy and development, macroeconomics and the economies of Japan and East Asia.    He obtained his Ph.D in economics at Yale University and B.A in economics at the University of California, Berkeley. 

Robert Dekle, Professor of Economics, University of Southern California
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This paper examines the impact of government guaranteed small business loans on regional growth. I construct a metro-level panel of the Small Business Administration's guaranteed loans and examine economic growth between 1993 and 2002, across 316 metro areas in the US. A simple OLS regression finds a significant positive relationship between small business loans and regional growth. However, first-difference and instrumental variable regressions that mitigate endogeneity find no significant employment or income growth effects from small business loans. At least from an efficiency perspective, there seems to be no net gains to the regional economy from guaranteed small business loans.

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This paper examines how the spatial distribution of economic activity evolved within North Korea during a period of economic sanctions. Countries have used economic sanctions to isolate North Korea from the benefits of international trade and finance. China, however, has not imposed the sanctions, and consequentially has offset the trade restrictions imposed by other countries. I hypothesize three channels by which North Korea could have responded in this context: regional favoritism by the ruling elites, reallocation of commerce that reflects the trade diversion to China, and import substitution. Using nighttime lights from North Korea, I find that the capital city, trade hubs near China, and manufacturing cities become relatively brighter when sanctions increase. However, production shifts away from capital-intensive goods, potentially deterring industrial development. The results imply that despite the intention to target the ruling elites, sanctions may increase regional inequality at a cost to the already marginalized hinterlands.

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When U.S. Vice President Michael Pence recently met with Japanese Prime Minister Shinzo Abe in Tokyo ahead of the Pyeongchang Winter Olympics, he declared that “The United States-Japan alliance is the cornerstone of peace, prosperity, and freedom in the Indo-Pacific.” Examining U.S.-Japan security relations is a priority of Stanford’s U.S.-Asia Security Initiative (USASI) at the Shorenstein Asia-Pacific Research Center. Just days prior to the Vice President’s remarks, USASI and the Sasakawa Peace Foundation (SPF) co-hosted the 2018 the U.S.-Japan Security and Defense Dialogue Series, where a key theme was coordination and cooperation in the long-standing U.S.-Japan security relationship.

Held in Tokyo from January 31 through February 2, this workshop convened senior Japanese and American policymakers, military leaders, scholars, and regional experts to discuss Japan's security strategy and the alliance between Japan and the United States. It is part of a dialogue series that deepens a discourse on contemporary Asia-Pacific security issues, while building bridges between American and Asian academics, government and military officials, and other defense and security policy specialists. Over the course of three days, core participants held frank discussions with scholars, government officials, and military leaders from both countries about the status of the U.S.-Japan security alliance given the present array of challenges in the region; met in private with key members of the Japanese government and the United States Embassy; and also engaged in candid conversations with military leaders that analyzed Japanese and American combined military planning and operations.

“This year’s workshop was the second meeting of the US-Japan Security and Defense Dialogue Series,” said USASI Director, Ambassador Karl Eikenberry. “It continues to be an excellent venue for the exchange of views between government and military officials, academics, and those with policy experience on U.S.-Japan security relations.”

Workshop Co-Host, Lieutenant General Noboru Yamaguchi, Japanese Ground Self Defense Force (Retired) and Special Advisor to the Sasakawa Peace Foundation, commented: "The issues we discussed were timely and important as the security environment surrounding the alliance is serious and cooperation among Japan, the United States, the Republic of Korea, and other partners, while improving, has a long way to go."

Solidifying the U.S. Alliance with Japan

General Vincent Brooks, Commander, UNC/CFC/USFK; Ambassador David Shear; Ambassador Michael Armacost; and Workshop Co-Hosts Ambassador Karl Eikenberry and Lieutenant General, (Retired) Noboru Yamaguchi (From left to right: General Vincent Brooks, Commander, UNC/CFC/USFK; Ambassador David Shear; Ambassador Michael Armacost; and Workshop Co-Hosts Ambassador Karl Eikenberry and Lieutenant General, (Retired) Noboru Yamaguchi)

(From left to right: General Vincent Brooks, Commander, UNC/CFC/USFK; Ambassador David Shear; Ambassador Michael Armacost; and Workshop Co-Hosts Ambassador Karl Eikenberry and Lieutenant General, (Retired) Noboru Yamaguchi)

Day One of the dialogue saw participants engage in a series of frank discussions on many of the challenges facing the U.S.-Japan security alliance, including American and Japanese assessments of security trends in East Asia; training, operations, and strategic planning between the U.S. and Japan armed forces; and security cooperation and instability on the Korean Peninsula.

“The Workshop is an unique opportunity for participants to share their views on political, economic, and security developments in the Indo-Pacific area,” reflected Ambassador Eikenberry. “It provides a way for the United States and Japan to explore ways to achieve the shared goal of maintaining peace and prosperity in the region.”

Visits with U.S. Mission and Japan Foreign Minister

Highlights for Day Two included a meeting between core dialogue participants and key officials at the U.S. Embassy in Japan, including Ambassador William Hagerty. The day ended with a consultation with Japan Foreign Minister Taro Kono. APARC faculty and affiliates at that meeting included Ambassador Eikenberry, Ambassador Michael Armacost, USASI Associate Director Dr. Belinda Yeomans, and visiting scholar Dan Sneider.

“The diversity of the participants made the dialogue especially interesting,” said Ambassador Armacost. “The presentations and comments were both thoughtful and practical.” The frank and open dialogue about the operation of the U.S.-Japan security alliance, noted Sneider, covered topics ranging “from the broad strategic level to the nitty gritty issues of alliance coordination and cooperation. Both Japanese and American participants have found this to be refreshing and revealing.”

Fleet Activities Yokosuka

Commander of the Japanese Self-Defense Fleet, Vice Admiral Kazuki Yamashita (Meeting with Commander of the Japanese Self-Defense Fleet, Vice Admiral Kazuki Yamashita)

(Meeting with Commander of the Japanese Self-Defense Fleet, Vice Admiral Kazuki Yamashita)

 

The 2018 U.S.-Japan Security and Defense Dialogue Series closed with a group of the U.S. and Japanese participants visiting United States Fleet Activities Yokosuka. There, they met with the Commander of the U.S. 7th Fleet, Vice Admiral Phil Sawyer, and had a working lunch aboard USS Chancellorsville. They subsequently toured the Memorial Ship Mikasa (famous for serving as Admiral Togo’s flagship during the Russo-Japanese War) and met with the Commander of the Self-Defense Fleet, Vice Admiral Suzuki Yamashita at his headquarters. The conversations throughout the day focused on the importance of the alliance and the challenges of conducting combined U.S.-Japanese naval and joint operations.

Chatham House Rule applied to the dialogue, but a workshop report with no direct attribution or remarks will soon be made available to the public.

June 2018 Update: the 2018 workshop report is now published. Read it now.

A Japanese version of the workshop report is also available.

The report from the inaugural U.S.-Japan Security workshop of May 2016 is also available. 

The U.S.-Asia Security Initiative is part of Stanford University’s Walter H. Shorenstein Asia-Pacific Research Center (APARC). Led by former U.S. Ambassador and Lieutenant General (Retired) Karl Eikenberry, USASI seeks to further research, education, and policy relevant dialogues at Stanford University on contemporary Asia-Pacific security issues.

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Japan Foreign Minister Taro Kono, Ambassador Michael Armacost, Ambassador Karl Eikenberry, and Ambassador David Shear
(Seated at table, from left to right: Japan Foreign Minister Taro Kono, Ambassador Michael Armacost, Ambassador Karl Eikenberry, and Ambassador David Shear)
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