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Perceptions of security risks in Northeast Asia are increasingly being shaped by the rise of China and Japan's more recent efforts to become a more "normal" nation. The momentum behind both developments is being felt acutely in the relationship between the United States and South Korea. While many argue that the stage is being set for an inevitable conflict, Thomas Fingar, the Oksenberg-Rohlen Distinguished Fellow at the Freeman Spogli Institute for International Studies, argues that what is happening in China and Japan provides an opportunity for greater multilateral cooperation.

 


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Lisa Griswold
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Stanford researchers have introduced a major new study on North Korea policy at a hearing at the South Korean National Assembly. Entitled “Tailored Engagement,” the report concludes that South Korea is the only country today that may be both willing and able to try a new approach toward the worsening North Korea problem.

“There is considerable urgency for Seoul to act,” according to the report released by the Korea Program at the Walter H. Shorenstein Asia-Pacific Research Center (APARC) in the Freeman Spogli Institute for International Studies, which comes in response to increasing tensions and heightened nationalism in Northeast Asia.

“Only the Republic of Korea has both the need and the potential influence to change this dangerous trajectory on the Korean Peninsula.”

Published by Gi-Wook Shin, the director of Shorenstein APARC; David Straub, the associate director of the Korea Program; and Joyce Lee, the research associate for the Korea Program, the report is the culmination of more than a year of intensive research activities at Stanford University, including three international conferences focused on Northeast Asia’s security and political situation.

During the past year, North Korea continued to develop nuclear weapons and North-South Korean relations worsened, while increasing U.S.-China strategic mistrust has made it less likely that those two countries can cooperate to change North Korea's behavior.

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On Sept. 15, the authors presented the report at a public hearing of the Special Committee on Inter-Korean Relations, Exchange and Cooperation of the South Korean National Assembly in Seoul. They are also scheduled to discuss the study at the Brookings Institution in Washington D.C. on September 29.

“I was very impressed by the concern that the Korean Congressmen showed about the current situation on the Korean Peninsula and by their interest in our reasoning and recommendations,” Shin said. “Almost all of the Committee’s 18 members attended, and engaged in a lively exchange of views during the three-hour-long hearing.”

In their report, Shin, Straub and Lee propose a process that involves a series of increased exchanges with North Korea. This would be applied in a principled, systematic way, based largely on expanding a domestic consensus in South Korea that treats South Korean engagement of the North as necessary for improving the situation on the peninsula, not as incompatible with maintaining pressure on Pyongyang to abandon its pursuit of nuclear weapons.

The report lays out four main steps that South Korea can implement to reduce the risk of regional conflict, while also creating a foundation for peaceful unification with North Korea.

  • Focus on the pursuit of mutual interests and benefits rather than on symbolism and appeals to national sentiment.
  • Apply market principles and international standards in economic activities.
  • Collaborate with other countries and third-party companies in both economic and people-to-people projects.
  • Be pragmatic and flexible in pursuing engagement at both the state-to-state and grassroots levels in complementary ways. 
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South Korea is well suited to engage the North because of their shared history, and its status as a major middle-power status has also increased its sway with both China and the United States.

No longer a “shrimp among whales,” South Korea has transformed since democratization, leaving that modest proverb behind and gaining an influential role in the region.

Now the country has an opportunity to begin to bridge the gap with North Korea, but first, it must create an internal structure that supports engagement.

In implementation

The North Korea problem is complex and wrapped in a varied history of engagement efforts by South Korea and other countries. Lessons of success and failure from past administrations provide important insight, the report says.

“The main impediment to South Korea’s assuming a greater international leadership role on the Korean question is not a lack of national power,” the report states, “but a lack of domestic political consensus about how to deal with North Korea and the consequent inconsistency in ROK policy across administrations.”

The South Korean government changes executive leadership every five years, and with it, there has been great inconsistency between conservative and progressive policies. The current administration that assumed office in 2013, led by President Park Geun-hye, pursues a North Korea policy of trustpolitik, wherein the government aims to build trust through a step-by-step process.

According to the report, the tailored engagement approach can inform and build on President Park’s policy. Three main actions can be taken by South Korea’s administration to implement productive engagement, the report states:

  • Reorganize the Korean government itself to facilitate a more coordinated formulation and implementation of North Korea policy.
  • Achieve much more consensus within South Korea on how to deal with North Korea.
  • Seek to win support of the major powers, especially the United States and China for its approach to North Korea.

Developing trust is essential to de-escalate tension between the Koreas. Without progress in confidence-building, the two countries can hardly collaborate on even straightforward projects, such as expanding the existing Kaesong Industrial Complex, a bi-lateral industrial park located just north of the North-South border.

Solving more basic issues and participating in joint initiatives can help pave the way toward inter-Korean reconciliation during President Park’s administration, and the next.

“Reconciliation and convergence would improve many aspects of the situation on the Korean Peninsula, including eventually facilitating North Korea’s abandonment of its nuclear weapons program and the achievement of unification,” the reports says.

Asia Economy Daily wrote an article (in the Korean language) about the research team's presentation. A version of this article was also carried as a news release by the Stanford News Service. NK News, a news oufit focused on North Korea-related news, also wrote an article (in the English language) and can be found on NKNews.org. The Voice of America covered the presentation by Shin and Straub at the Brookings Institution. The article, written in Korean, can be accessed on the Voice of America online.

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Participants tie ribbons for peace at the Imjingpak pavilion near the demilitarized zone separating the two Koreas in 2011.
Reuters/Jo Yong Hak
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"Tailored Engagement" is a result of research and an earlier report by faculty members and researchers at the Walter H. Shorenstein Asia-Pacific Research Center (APARC) at Stanford University. The authors, Gi-Wook Shin, the director the Shorenstein APARC; David Straub, the associate director of the Korea Program; and Joyce Lee, the research associate for the Korea Program, write that they "hope this study will serve as a useful reference for leaders and citizens of the Republic of Korea as well as contribute to the global discussion about how to ensure peace, security and prosperity in Northeast Asia."

 

Contents:

  • Introduction

  • Policy Parameters of Major Players

  • President Park's North Korea Policy

  • The Policy Context

  • Toward Tailored Engagement

  • Engaging North Korea

 

A summary of the report is also available in Korean.

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Michelle Obama promoted study abroad programs during a speech at the Stanford Center at Peking University in Beijing on Saturday, then encouraged Stanford and local high school students sitting in Palo Alto to be "citizen diplomats" during a high-tech videoconference.

In her remarks before the conversation with students, the first lady said that study abroad is a "vital part of our foreign policy."

"Study abroad is about shaping the future of your countries and the world we all share," she said.

Studying in a different country gives students the chance to immerse themselves in another culture, she said.

"That's how you realize that we all have a stake in each other's success – that cures discovered here in Beijing could save lives in America," she said. "That clean energy technologies from Silicon Valley in California could improve the environment here in China; that the architecture of an ancient temple in Xi'an could inspire the design of new buildings in Dallas or Detroit."

Obama spoke before an audience of 170 students, scholars, and alumni at the Stanford Center at Peking University (SCPKU) in Beijing – her only scheduled public appearance during a trip to China with her daughters.

"Two great universities, two great countries. The symbolism behind this event is truly remarkable," said Xinkai Mao, MBA '14. "My wife went to PKU and I go to Stanford. What a connection!"

Mao attended the event with Stanford Graduate School of Business classmate Paul Chen, MBA '14. Both lead a China study trip for fellow students starting Sunday.

Max Baucus, Washington's ambassador to Beijing, and a graduate of Stanford and the university's law school, reinforced Obama's message of personal learning and diplomacy, recounting his own exchange studies in France.

"I am standing here because of my experience at a study abroad program," he said.

Thirty-five years after the normalization of relations with China, the U.S. is supporting more American students in China than in any other country in the world.

"We're sending high school, college and graduate students here to study Chinese," Obama said. "We're inviting teachers from China to teach Mandarin in American schools. We're providing free online advising for students in China who want to study in the U.S. and the U.S. China Fulbright program is still going strong with more than 3,000 alumni."

The largest group of foreign students enrolled at Stanford today are Chinese – 860 students, up from about 600 two years ago.

"You can't learn what the First Lady is talking about only through books," said Chien Lee, BSMS '75, MBA '79, a former Stanford trustee and SCPKU's lead donor. "You have to have an in-person experience. That's what helps you appreciate the subtleties and differences. The center provides a place for people to have that exchange."

Milestone for SCPKU

The first lady's visit came the day after the second anniversary of SCPKU's opening. The center made Stanford the first American university to construct a building for its own use on a major Chinese university campus. 

Obama's conversation with students sitting at Stanford's campus showcased the "highly immersive classrooms" at SCPKU and the Graduate School of Business. The rooms are identical, and use high-definition video technology to give participants in both locations the feeling that they are in the same room. The rooms will be used to conduct seminars between scholars at Stanford and PKU, and will also be used by the business school to expand the reach of its faculty.

Michelle Obama with Stanford students at the Stanford Center at Peking University in Beijing.

Michelle Obama with Stanford students at the Stanford Center at Peking University in Beijing.
Photo Credit: Stanford University

The classroom features a curved wall of video screens and allows seamless conversation and real-time data sharing with participants on different continents.

"Through the wonders of modern technology, our world is more connected than ever before," Obama said. "Ideas can cross oceans with the click of a button. You don't need to get on a plane to be a citizen diplomat. If you have an Internet connection in your home, school or library, within seconds you can be transported anywhere in the world and meet people on every continent."

Sitting in the immersive classroom at SCPKU, Obama encouraged students to use all the resources at their disposal to become well-informed global citizens and decision makers, and to enrich the relationship between the U.S. and China.  

"The creation of a global citizen is a critical mission of the great universities in modern times," said alumnus David Chao, MBA '93, who manages a global venture capital firm and attended Obama's speech.  "When you have a global citizen with empathy, someone pushing the nuclear button is highly unlikely. It's especially relevant, when you see what's going on in Ukraine right now with people refusing to talk."

From neurology to energy and art

Stanford and Peking University have a long and growing collaboration that began with scholarly exchanges in the 1970s and student exchanges thereafter. 

In remarks welcoming the first lady, Mariano-Florentino Cuéllar, the Stanley Morrison Professor of Law at Stanford Law School and Director of Stanford's Freeman Spogli Institute for International Studies, spoke of SCPKU's mission and its relationship to China's elite Peking University, also known as Beida.

"Stanford scholars – like their counterparts at Beida – are constantly seeking a deeper appreciation of different societies and their histories," Cuéllar said. "That leads to stronger relationships –geographically, politically and culturally. We are striving for a world that is ever more capable of transcending its differences. Stanford's special relationship with Beida is a shining example of these ideals."

Nine Stanford teaching and research programs, including the School of Medicine's Asian Liver Center, the Bing Overseas Studies Program, and the Graduate School of Business, have located operations at SCPKU. Seventeen faculty fellows from departments as diverse as neurology, art, bioengineering and music, have conducted research at the center. SCPKU has also hosted 32 workshops or seminars on topics as varied as "Leveraging PCs to Advance Learning in China's Rural Schools," "Energy in China," and "New Urban Formations: Comparative Urbanization."

The first cohort of 20 Stanford undergraduates to study at the center will arrive for their 10-week program March 31. The center already has been home to a meeting of U.S.-China officials discussing North Korea's nuclear program and a conference of electrical engineers reviewing Technology Standardization. China 2.0, a forum on venture capital and entrepreneurship organized by the Graduate School of Business, will be held at the center April 11.

The future

Looking ahead, SCPKU aspires to tackle intellectual questions that address not just the political economy and culture of China, but also the challenges that arise as China engages other parts of the world in trade. China's geopolitical interests and actions in Latin America, Africa, South Asia and Southeast Asia are all important questions that Stanford faculty want to address. "The center can and should be a research destination for Stanford faculty whose work touches on China but is not necessarily solely focused on the country or region," said Jean Oi, professor of political science, director of SCPKU, and a driving force behind the center's creation.

As SCPKU activity and scholarship continues to evolve, technology also will allow its intellectual content to reach a wider audience beyond the Beijing campus.

Barbara Buell is the communications director for Stanford's Graduate School of Business.

 

 

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Ambassador Bosworth looks back on a career spanning five decades and foreign service assignments in Panama, Madrid, Paris, Tunis, Manila, Seoul and Washington.  Drawing on his involvement in issues ranging from control of the Panama Canal to the Arab oil embargo, North Korea's nuclear weapons program, the Asian financial crisis, the end of the Marcos regime in the Philippines, and how to deal with the opportunities and challenges of the rise of China, Bosworth tries to identify some basic principles and guidelines for the conduct of American foreign policy and relates stories about his personal experiences with leaders foreign and domestic.

Stephen W. Bosworth is a Senior Fellow at The Belfer Center for Science and International Affairs at the John F. Kennedy School of Government, Harvard University.  He is also the Chairman of the U.S.-Korea Institute at the Johns Hopkins University Paul H. Nitze School of Advanced International Studies (SAIS).  From 2001-2013, he served as Dean of The Fletcher School of Law and Diplomacy at Tufts University, where he now serves as Dean Emeritus.  He has also served as the United States Ambassador to the Republic of Korea from 1997-2001.

From 1995-1997, Mr. Bosworth was the Executive Director of the Korean Peninsula Energy Development Organization [KEDO], an inter-governmental organization established by the United States, the Republic of Korea, and Japan to deal with North Korea.  Before joining KEDO, he served seven years as President of the United States Japan Foundation, a private American grant-making institution.  He also taught International Relations at Columbia University’s School of International and Public Affairs from 1990 to 1994.  In 1993, he was the Sol Linowitz Visiting Professor at Hamilton College.  He has co-authored several studies on public policy issues for the Carnegie Endowment and the Century Fund, and, in 2006, he co-authored a book entitled Chasing the Sun, Rethinking East Asian Policy.

A public reception will follow the seminar in the Encina Hall Lobby.

Bechtel Conference Center

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Payne Distinguished Lecturer, Shorenstein Asia-Pacific Research Center, Freeman Spogli Institute for International Studies
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Stephen W. Bosworth was a Payne Distinguished Lecturer at the Walter H. Shorenstein Asia-Pacific Research Center in Freeman Spogli Institute for International Studies. He was a Senior Fellow at The Belfer Center for Science and International Affairs at the John F. Kennedy School of Government, Harvard University. He was also the Chairman of the U.S.-Korea Institute at the Johns Hopkins University Paul H. Nitze School of Advanced International Studies (SAIS). From 2001-2013, he served as Dean of The Fletcher School of Law and Diplomacy at Tufts University, where he then served as Dean Emeritus. He also served as the United States Ambassador to the Republic of Korea from 1997-2001.

From 1995-1997, Bosworth was the Executive Director of the Korean Peninsula Energy Development Organization [KEDO], an inter-governmental organization established by the United States, the Republic of Korea, and Japan to deal with North Korea. Before joining KEDO, he served seven years as President of the United States Japan Foundation, a private American grant-making institution. He also taught International Relations at Columbia University’s School of International and Public Affairs from 1990 to 1994. In 1993, he was the Sol Linowitz Visiting Professor at Hamilton College. He co-authored several studies on public policy issues for the Carnegie Endowment and the Century Fund, and, in 2006, he co-authored a book entitled Chasing the Sun, Rethinking East Asian Policy

Ambassador Bosworth had an extensive career in the United States Foreign Service, including service as Ambassador to Tunisia from 1979-1981 and Ambassador to the Philippines from 1984-1987. He served in a number of senior positions in the Department of State, including Director of Policy Planning, Principal Deputy Assistant Secretary of State for Inter-American Affairs, and Deputy Assistant Secretary for Economic Affairs. Most recently, from March 2009 through October 2011, he served as U.S. Special Representative for North Korea Policy for the Obama Administration. 

He was the recipient of many awards, including the American Academy of Diplomacy’s Diplomat of the Year Award in 1987, the Department of State’s Distinguished Service Award in 1976 and again in 1986, and the Department of Energy’s Distinguished Service Award in 1979. In 2005, the Government of Japan presented him with the Order of the Rising Sun, Gold and Silver Star. 

Bosworth was a graduate of Dartmouth College where he was a member of the Board of Trustees from 1992 to 2002 and served as Board Chair from 1996 to 2000. He was married to the former Christine Holmes; they have two daughters and two sons.

Stephen W. Bosworth Payne Distinguished Lecturer, Shorenstein Asia-Pacific Research Center, Freeman Spogli Institute for International Studies Speaker Stanford University
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Payne Distinguished Lecturer, Shorenstein Asia-Pacific Research Center, Freeman Spogli Institute for International Studies
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Stephen W. Bosworth was a Payne Distinguished Lecturer at the Walter H. Shorenstein Asia-Pacific Research Center in Freeman Spogli Institute for International Studies. He was a Senior Fellow at The Belfer Center for Science and International Affairs at the John F. Kennedy School of Government, Harvard University. He was also the Chairman of the U.S.-Korea Institute at the Johns Hopkins University Paul H. Nitze School of Advanced International Studies (SAIS). From 2001-2013, he served as Dean of The Fletcher School of Law and Diplomacy at Tufts University, where he then served as Dean Emeritus. He also served as the United States Ambassador to the Republic of Korea from 1997-2001.

From 1995-1997, Bosworth was the Executive Director of the Korean Peninsula Energy Development Organization [KEDO], an inter-governmental organization established by the United States, the Republic of Korea, and Japan to deal with North Korea. Before joining KEDO, he served seven years as President of the United States Japan Foundation, a private American grant-making institution. He also taught International Relations at Columbia University’s School of International and Public Affairs from 1990 to 1994. In 1993, he was the Sol Linowitz Visiting Professor at Hamilton College. He co-authored several studies on public policy issues for the Carnegie Endowment and the Century Fund, and, in 2006, he co-authored a book entitled Chasing the Sun, Rethinking East Asian Policy

Ambassador Bosworth had an extensive career in the United States Foreign Service, including service as Ambassador to Tunisia from 1979-1981 and Ambassador to the Philippines from 1984-1987. He served in a number of senior positions in the Department of State, including Director of Policy Planning, Principal Deputy Assistant Secretary of State for Inter-American Affairs, and Deputy Assistant Secretary for Economic Affairs. Most recently, from March 2009 through October 2011, he served as U.S. Special Representative for North Korea Policy for the Obama Administration. 

He was the recipient of many awards, including the American Academy of Diplomacy’s Diplomat of the Year Award in 1987, the Department of State’s Distinguished Service Award in 1976 and again in 1986, and the Department of Energy’s Distinguished Service Award in 1979. In 2005, the Government of Japan presented him with the Order of the Rising Sun, Gold and Silver Star. 

Bosworth was a graduate of Dartmouth College where he was a member of the Board of Trustees from 1992 to 2002 and served as Board Chair from 1996 to 2000. He was married to the former Christine Holmes; they have two daughters and two sons.

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This paper discusses economic impacts and policy challenges related to implementing Basel III, the new international standard of banking regulation, in the United States, Japan, and the European Union. The G20 leaders endorsed Basel III in late 2010 and currently national regulators are translating it into their national laws and regulations. A key issue is whether regulators can persuade their national legislatures and industries of the merits of Basel III. This paper compares and analyzes the economic cost-benefits of Basel III under the different regulatory environments of these countries, including the size of the banking sector in financial intermediation, the size of bank assets relative to GDP, additional capital that banks need to raise, the methods banks use to raise capital ratio, and cross-border bank activities.

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Lisa Griswold served as the Communications and Outreach Coordinator at the Shorenstein Asia-Pacific Research Center between 2013 and 2017.

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