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Asia’s economies have been hard hit by the current global financial crisis, despite in most cases enjoying strong macroeconomic fundamentals and stable financial systems.  Early hopes were that the region might be “decoupled” from the Western world’s financial woes and even able to lend the West a hand through high growth and the investment of large foreign exchange reserves.  But that optimism has been dashed by slumping exports, plunging commodity prices, and capital outflows.  The region’s most open, advanced and globally-integrated economies—Hong Kong, Singapore, and Taiwan—are already in severe recession, with Japan, Korea and Malaysia not far behind, and dramatic slowdowns are underway in China, India, Indonesia, Thailand and Vietnam.  What role did Asian countries play in the genesis of the global crisis, and why have they been so severely impacted?  How is their recovery likely to be shaped by market developments and institutional changes in the West, and in Asia itself in response to the crisis?  Will the region’s embrace of accelerated globalization and marketization following the 1997-98 Asian financial crisis now be retarded or reversed?

Linda Lim is a leading authority on Asian economies, Asian business, and the impacts of the current global financial crisis on Asia, and she has published widely on these topics. Her current research is on the ASEAN countries’ growing economic linkages with China.

Forthcoming in 2009 are Globalizing State, Disappearing Nation: The Impact of Foreign Participation in the Singapore Economy (with Lee Soo Ann) and Rethinking Singapore’s Economic Growth Model. She serves on the executive committees of the Center for Chinese Studies and the Center for International Business Education at the University of Michigan, where formerly she headed the Center for Southeast Asian Studies. Before coming to Michigan, she taught economic development and political economy at Swarthmore. A native of Singapore, she obtained her degrees in economics from Cambridge (BA), Yale (MA), and Michigan (PhD).

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Linda Yuen-Ching Lim Professor of Strategy, Stephen M. Ross School of Business Speaker University of Michigan
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The U.S. financial crisis has spread around the globe. Financial globalization means that most countries and regions are not immune to the contagious effects of a financial crisis that originates in one country.

East Asian countries had already experienced the contagious effects of a financial crisis in 1997. That year, a financial crisis that broke out in Thailand and Indonesia reached Malaysia and then South Korea. Each of these countries reacted differently to the crisis. South Korea, Indonesia, and Thailand accepted International Monetary Fund (IMF) conditionalities that required neoliberal economic restructuring in return for emergency loans, while Malaysia rejected the IMF offer and instead encouraged the inflow of speculative financial capital, while reforming the banking and financial system. In the aftermath of the East Asian financial crisis, regional economic, financial and security cooperation were discussed among East Asian countries. These efforts resulted in the Chiang Mai Initiative, the Bond Initiative, the East Asian Summit, the Shanghai Cooperation Organization, and the Six Party Talks.

Thus, regionalism in East Asia was revived in response to external shocks, such as global financial volatility, endogenous opportunities such as East Asian market compatibility (Pempel, 2008), endogenous security threats such as the North Korean nuclear development, and exogenous opportunities such as "bringing in the U.S." (Pempel, 2008).

Nonetheless, East Asian regionalism is still at a low level of institutionalization compared to Europe. East Asian regionalism is still basically "bottom-up, corporate (market)-driven regionalism" (Pempel, 2005). 

I will discuss the obstacles and the opportunities that Northeast Asian countries are facing since the end of the Cold War and the advent of globalization.

Hyug Baeg Im is Professor at the Department of Political Science and International Relations, Korea University, Seoul, South Korea. He is Dean at the Graduate School of Policy Studies and Director at Institute for Peace Studies. He received B.A. in political science from Seoul National University, M.A. and Ph.D. in political science from the University of Chicago. He was visiting professor at Georgetown University (1995-1996), Duke University (1997), Stanford University (2002-2003) and visiting fellow at International Forum for Democratic Studies, National Endowment for Democracy, Washington DC (1995-1996). He served as a presidential adviser of both Kim Dae Jung and Roh Moo Hyun presidency. His current research focuses on the impact of IT revolution and globalization on Korean democracy. His publications include “The Rise of Bureaucratic Authoritarianism in South Korea,” World Politics, Vol. 34, No. 2 (1987), “South Korean Democratic Consolidation in Comparative Perspective” in Consolidating Democracy in South Korea (Lynne Rienner, 2000) and “’Crony Capitalism’ in South Korea, Thailand, and Taiwan: Myth and Reality,” (co-authored with Kim, Byung Kook) Journal of East Asian Studies, Vol. 1, No. 1 (2001), “Faltering Democratic Consolidation in South Korea: Democracy at the End of Three Kims Era” Democratization, Vol. 11, No. 5(2004), “Christian Churches and Democratization in South Korea” in Tun-jen Cheng and Deborah A. Brown (eds.), Religious Organizations and Democratization: Comparative Case Studies in Contemporary Asia (M.E. Sharpe, 2006) and “The US Role in Korean Democracy and Security since Cold War Era,” International Relations of the Asia Pacific, Vol. 6, No.2 (2006).

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HYUG BAEG IM Department of Political Science and International Relations Speaker Korea University
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Madhu Kishwar is Senior Fellow at the Centre for the Study of Developing Societies (CSDS) in Delhi; founder-president of Manushi Sangathan, an organization committed to strengthening democratic rights and women's rights in India; and founder editor of Manushi - A Journal About Women and Society, which has been published continuously since 1978. Her work on issues relating to "Laws, Liberty and Livelihoods" is aimed at evolving a pro-poor agenda of economic reforms in India. Kishwar, the author of numerous books and articles, has lectured extensively in India and abroad, and received many awards for her work. Her two most recent books are Zealous Reformers, Deadly Laws, New Delhi, Sage Publications, 2008; and Deepening Democracy: Challenges of Governance and Globalization in India, New Delhi, Oxford University Press, 2005.

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Madhu Kishwar Senior Fellow Speaker The Center for the Study of Developing Societies (CSDS) in Delhi, co-sponsored by the Stanford Center for South Asia
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Beginning this fall, I have initiated a Program on Global Justice at FSI. We are just getting started, so it strikes me as a good time to explain the fundamental ideas.

I am a philosopher by training and sensibility, and as a philosopher, I take my orientation from Immanuel Kant. Kant said that philosophy addresses three basic questions: What can we know? What should we do? And what may we hope for?

The question about hope is the most important. Philosophy is not about what will be, but about what could be: It is an exploration of possibilities guided by the hope that our world can be made more just by our common efforts.

In our world, 1 billion people are destitute. They live on less than a dollar a day. They are not imprisoned in destitution because of their crimes; they are imprisoned in destitution despite their innocence.

Another 1.5 billion people live only slightly better, on $1–2 a day. They are able to meet their basic needs, but they lack fundamental goods. They, too, are not in poverty because of their crimes. They are in poverty despite their innocence.

That is how 40 percent of our world lives now.

For some of the poor and destitute, things are improving. But the extraordinary global distance between wealthy and poor is growing. The richest 5 percent in the world make 114 times as much as the bottom 5 percent; 1 percent of the world’s people make as much as the poorest 57 percent. So the gap grows and many are left behind. That is morally unacceptable.

The problem of global injustice is not only economic. Billions of people are deprived of basic human rights.

And new forms of global governance, through organizations like the World Trade Organization (WTO), are making decisions with large consequences for human welfare. Whether their decisions are good or bad, they remain largely unaccountable. That, too, is unacceptable.

Some people say that we should not worry so much because there is no such thing as global justice. Some of these skeptics say that justice is an issue only inside a state. Until there is a global state, they say, there is no global justice.

Other skeptics are communitarians. They say that justice only makes sense among people who share a culture. They say that our diverse global society lacks the common culture needed to sustain a commitment to justice.

These statist and communitarian views are misguided in a world of globalization.

Economically, globalization has made the global economy a substantial presence in the economic lives of virtually everyone in the world.

Politically, there are new forms of governance that operate outside the state. These new forms are especially important in the arena of economic regulation, but also have a role in areas of security, labor and product standards, the environment, and human rights. So we have new forms of global politics, with important consequences for human well-being.

Moreover, these new settings of global governance are the focus of an emerging global civil society of movements and nongovernmental organizations. In areas ranging from human rights, to labor standards, to environmental protection these groups contest the activities of states and global rule-making bodies.

The skeptical views may have made sense in a world with more national economic independence, less governance beyond the state, and more self-contained national communities. But that is not our world.

What, then, does the project of global justice mean? In general, it has three elements.

First, we need to ensure the protection of human rights, and we need a generous understanding of the scope of human rights. Human rights are about torture and arbitrary imprisonment, but also about health, education, and political participation. The point of human rights is not simply to protect against threats, but to ensure social membership, to ensure that all people count for something.

Second, new global rule-making bodies operating beyond the state raise questions of justice. These bodies, like the WTO, make rules with important consequences for human welfare. Global justice is about ensuring that governance by such bodies is accountable, that people who are affected are represented, that rulemaking is transparent. When an organization makes policies with large consequences for human welfare, it needs to be held accountable through a fair process.

Third, global justice is about ensuring that everyone has access to the basic goods—food, health care, education, clean water, shelter—required for a decent human life and that when the global economy is moving forward, no one is left behind.

These three elements of global justice all start from the idea that each person matters. In short, global justice is about inclusion: about making sure that no one is left out.

Some people will say that global justice is a nice idea, but that it has no real practical importance. They say that globalization leaves no room for political choices, that it requires every country to follow the same path. We must reject this false assertion of necessity.

Some people say that the right choice for global justice is to increase levels of foreign assistance; some people say that the right choice is to provide credit for poor farmers; some people say that right choice is to empower poor women; some people say that right choice is to reduce disgusting levels of overconsumption and agricultural subsidies in rich countries; some people say that the right choice is to promote a more vibrant civil society so that people can become agents in creating their history rather than its victims and supplicants.

Many things are possible. And once we accept that global justice is a fundamental imperative, and that political choices are possible, then we come back to the political tasks in more developed countries. Many citizens in the advanced economies now experience globalization as a threat. Many fear that a better life for billions who are now destitute may mean a worse life for them.

So global justice is not simply an abstract moral imperative. Global justice is connected to greater justice at home. If we leave everything to the market at home, if we don’t fight for social insurance, education and health, employment and income, then we can be sure of an economic nationalist resurgence with all of its terrible consequences. So the political project of global justice requires a political project of a more just society at home.

This unity of justice—this unity of the national and the global: That is our answer to Kant’s question. That is what we may hope for. That is what we should strive to achieve.

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FSI’s program on global justice (PGJ), now finishing its first year, explores issues at the intersection between political values and the realities of global politics. The aim is to build conversations and research programs that integrate normative ideas—toleration, fairness, accountability, obligations, rights, representation, and the common good—into discussions about fundamental issues of global politics, including human rights, global governance, and access to such basic goods as food, shelter, clean water, education, and health care. PGJ begins from the premise that addressing these morally consequential issues will require a mix of normative reflection and attention to the best current thinking in the social sciences.

In PGJ’s first year of operation, we had several visiting fellows. Adam Hosein and Helena de Bres, both dissertation fellows from MIT, spent the year researching and writing dissertations in political philosophy on issues about global distributive justice. Larry Simon, a professor at Brandeis University’s Heller School, director of Heller School’s Sustainable International Development Programs, and associate dean of academic planning, spent the winter and spring quarters working on a book on the relevance of the work of Paulo Freire to today’s poor.

Next year we will scale up the fellowship program. Helena DeBres will stay on as a postdoctoral fellow, continuing her research on utilitarian approaches to global poverty and fair distribution. She will be joined by Avia Pasternak, an Oxford PhD writing on issues about citizens’ responsibility in wealthy democracies to address issues of injustice elsewhere. Brad McHose, a UCLA PhD, and Kirsten Oleson, a recent PhD from Stanford’s IPER program, will also be affiliated with PGJ. Thorsten Theil will be a predoctoral fellow in the fall, writing on deliberative democracy and postnational politics. And Charles Beitz, a distinguished political theorist from Princeton whose Political Theory and International Relations (1979) remains the basis for much contemporary discussion of global justice, will be visiting in the winter and spring, working on a project on human rights.

Our principal activity for this past year was a regular workshop (coordinated with Stanford’s Humanities Center) covering a wide range of themes, from corporate social responsibility to the philosophical foundations of global justice, with participation from graduate students, research fellows, and faculty from political science, philosophy, economics, education, law, literature, and anthropology. In one of the liveliest sessions, Abhijit Banerjee, MIT economist and director of MIT’s Poverty Action Lab, presented his research and reflections on the strategy of using randomized field experiments to assess aid projects in developing countries. In a seminar jointly sponsored with CDDRL, Banerjee, a self-described aid optimist, expressed doubts about contemporary understanding of the determinants of economic growth and emphasized the importance of project-specific assistance and evaluation.

Richard Locke, a political scientist from MIT’s Sloan School, presented a paper based on his research at Nike and other lead firms in global supply chains that use corporate codes of conduct in their relations with suppliers. The principal finding of Locke’s research is that such codes have not been very successful in improving compensation, working conditions, or freedom of association for workers in firms that supply products to lead firms.

Amherst political theorist Uday Mehta presented a paper contrasting ideas about peace and non-violence to a seminar jointly sponsored with CISAC. Tracing the idea of a principled commitment to non-violence to Gandhi, Mehta suggested there are important costs to that principle (perhaps it requires devaluing justice), but that there are also costs to emphasizing peace as an alternative to principled non-violence: in particular, that the more conditional commitment to non-violence may end up being very permissive about the use of force.

Stanford economist Seema Jayachandran presented research on strategies for dealing with problems of odious debt. And we had workshops on the foundations of global justice with political theorists Michael Blake, Adam Hosein, Jennifer Rubenstein, and Sebastiano Maffetone; on citizenship and immigration with legal theorist Ayelet Schachar and anthropologist John Bowen; on human rights with Chip Pitts, a human rights lawyer; and on the World Bank with Sameer Dossani, a Washington political activist.

Next year, PGJ will initiate—in conjunction with Locke and his colleagues at MIT—a project called Just Supply Chains. The premise of the project is that the globalization of production is redefining employment relations and generating the need for fundamental changes in the basic institutions governing the economy. Corporations, unions, NGOs, national governments, and even international labor, trade, and financial organizations are all searching for new ways to adjust to the new international order and ensure that workers in global supply chains have decent levels of compensation, healthy and safe workplaces, and rights of association.

The project will explore three broad strategies for achieving these goals. First, it will address corporate codes of conduct and monitoring mechanisms to enforce these codes. Today, monitoring for compliance with “private voluntary codes of conduct” is one of the principal ways both global corporations and labor rights NGOs seek to promote “fair” labor standards in global supply chains. Likewise, a number of multi-stakeholder initiatives (MSIs) have banded together to promote a more collaborative/coordinated approach to improved labor standards. (The Joint Initiative for Workers Rights and Corporate Accountability in Turkey and the MFA Forum Project in Bangladesh are two of the best known examples.) But these initiatives, like the corporate codes, have produced very mixed results.

Second, much has been written about pro-labor administrative reforms by national governments (e.g., Dominican Republic, Argentina, Cambodia, and Brazil). But very little is known about whether these efforts are successful and, if they are, how to diffuse their success to other countries struggling with many of the same issues.

Third, there is speculation about how efforts at the ILO and WTO, joining labor standards to trade rules, might produce global improvements in compensation, work, and rights of association.

To explore these issues, the Just Supply Chains project will start next year with a series of workshops, bringing together “practitioners” engaged in these institutional experiments and scholars studying global supply chains, corporate responsibility, regulatory strategies, and normative ideas about global justice. We will examine what is already known about the conditions under which new arrangements and strategies can succeed in promoting fair wages and work hours, decent working conditions, and basic rights, including the right to organize collectively. The larger aim will be to define a research agenda animated by ideals of global justice, informed by understanding of current circumstances and social possibilities, and aimed at improving both our understanding and global well-being.

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Projects to enhance health security and child survival in Africa with improvements in water and sanitation, examine why poor business-management practices persist in India, study the relationship of legal courts to politics and human rights, and understand why the Middle East has lagged in economic progress were recent recipients of grants totaling just under $1 million from Stanford's Presidential Fund for Innovation in International Studies.

"These projects have great potential to advance academic knowledge, social capital and human development around the world, and to create a healthier, more promising future for hundreds of millions of people," President John Hennessy said. "When we launched The Stanford Challenge, we committed to marshal university resources to address the great challenges of the 21st century in human health, the environment and international affairs, and it is gratifying to see the response from our remarkable faculty."

The 2008 projects and their principal investigators follow:

Enhancing Health Security Through Infrastructure and Behavioral Intervention: Water, Sanitation and Child Survival in Africa. Alexandria Boehm and Jenna Davis, Civil and Environmental Engineering; Abby King, Health Research and Policy and Medicine; Gary Schoolnik, Medicine and Microbiology and Immunology. The project seeks to improve the health and well-being of the 1.2 billion people in low-income countries who lack access to clean water and the 2.6 billion who lack access to sanitation services, with a focus on mortality reduction in children. It will be carried out in sub-Saharan Africa, where the toll of water- and sanitation-related illness on health is severe, and will investigate the extent to which information and education about water and sanitation at the household level motivates behavior changes that result in reduced morbidity. Results will inform international efforts to design and implement effective water supply and sanitation interventions for more than 400 million Africans currently lacking access.

Why Are Indian Firms Poorly Managed? A Survey and Randomized Field Intervention. Nicholas Bloom and Aprajit Mahajan, Economics; Thomas C. Heller and Erik Jensen, Law School; John Roberts, Graduate School of Business. The biggest single reduction in poverty in the history of mankind was achieved by the industrialization of China since 1978, which lifted almost 500 million people out of poverty. India has not experienced this level of poverty reduction because its manufacturing firms have not achieved the productivity gains seen in China. Recent evidence suggests one key factor is the poor management practices adopted by Indian firms. This project examines why poor management practices persist in India and are much more common there. It focuses in particular on evaluating the relative importance of informational, legal and development barriers. The project will undertake a field survey of Indian firms to evaluate their knowledge of modern management techniques and a field intervention aimed at upgrading management practices in a randomized sample of Indian firms, comparing their progress to a control group of untouched firms.

Courts, Politics and Human Rights. Joshua Cohen, Philosophy, Political Science, and Law School; Terry L. Karl, Political Science; Jenny S. Martinez, Law School; Helen Stacy, Law School. This project examines the role of courts as the centerpiece of strategies for promoting human rights by asking if courts should be a preferred human rights venue or if there are other more accessible and effective ways to secure human rights. It addresses three broad themes: the interplay between national, regional and international courts in the protection of human rights; the role of governments and nongovernmental organizations in influencing legal proceedings; and how courts construct historical truth and shape public opinion, memory, attitudes and discourse about human-rights abuses. The multidisciplinary project will span countries, regions, issue areas and historical timeframes to ask what reasonably can be expected from international, regional and domestic courts in safeguarding human rights.

The Middle East and the World Economy. Matthew Harding, Economics; Lisa Blaydes, Political Science. This project examines why the Middle East has lagged in economic progress compared to much of the developing world and the implications of this underdevelopment for two overarching trends in Middle Eastern politics today: authoritarian government and Islamic fundamentalism. The researchers also will examine how political instability originating in the Middle East has affected world oil prices and world markets by constructing economic models of the world economy. The project seeks broadly to understand the macro- and microeconomic determinants of Islamic fundamentalism and authoritarian rule, and the extent to which these two outcomes have affected the stability and prosperity of the world economy. It measures global factors resulting from increased globalization and quantifies their impact on the development of economies in the Middle East.

The $3 million Presidential Fund for Innovation in International Studies was first established in 2005 by the Office of the President and the Stanford International Initiative to support new cross-campus, interdisciplinary research and teaching among Stanford's seven schools on three overarching global challenges: pursuing peace and security, reforming and improving governance at all levels of society, and advancing human well-being.

The first $1 million in interdisciplinary grants was awarded in February 2006; the second round of grants was awarded in February 2007.

"In all three rounds of funding, it has been heartening to see the imaginative and innovative ways that Stanford faculty are combining intellectual forces across disciplines to tackle some of the most pressing and persistent problems of our day," said Coit D. Blacker, chair of the International Initiative Executive Committee and director of Stanford's Freeman Spogli Institute for International Studies. "It is especially gratifying to see the younger faculty competing for these grants, eager to generate new knowledge and new solutions and help train a new generation of leaders."

Priority in funding has been given to teams of faculty who do not typically work together, who represent multiple disciplines and who address issues falling broadly within the three central research areas of the Stanford International Initiative. Projects are to be based on collaborative research and teaching involving faculty from two or more disciplines and, where possible, from two or more of the university's seven schools.

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Full video of the Google.org course on poverty and development that Program on Global Justice Director Joshua Cohen moderated from September to November 2007 is now available online at YouTube.com.

The 10-week course, which focused on understanding poverty and development at the global, national, local, and personal levels, was the first of three courses on Google.org's main areas of philanthropic activity--Global Development, Global Health, and Climate Change.

The course on global poverty and development met once a week from Sep. 12 to Nov. 14, 2007 at Google headquarters. Each two-hour session featured guest speakers on development-related issues such as education and health, equitable financial markets, globalization, and population mobility. On Oct. 3, Rosamond L. Naylor, director of the Center on Food Security and the Environment (FSE) at FSI Stanford, co-taught a session on productive agriculture for the 21st century with Frank Rijsberman, Google.org director of water and climate adaptation issues.

Google.org is the philanthropic arm of Google and the umbrella for its commitment to devote employee time and one percent of Google's profits and equity toward philanthropy.

Course videos
9/12: Overture and Overview on Global Development
(Part 1)
9/12: Overture and Overview on Global Development
(Part 2)

 9/19: Poverty at the Personal Level
(Part 1)
9/19: Poverty at the Personal Level
(Part 2)

9/26: Education and Health, Equity and Gender10/3: Productive Agriculture for the 21st Century
10/17: Globalization10/24: Population Mobility: Immigration and Urbanization
10/31: Economic Growth11/7: Mapping the Major Organizations Engaged in Development
11/14: Think Globally, Act Googley 

 

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In September Google.org launched the first of three courses on its main areas of philanthropic activity--Global Development, Global Health, and Climate Change. Joshua Cohen, director of the Program on Global Justice (PGJ) at FSI Stanford and professor of political science, philosophy, and law, is moderating the 10-week course, which focuses on understanding poverty and development at the global, national, local, and personal levels.

"Google has an extraordinary collection of creative employees," says Cohen. "This course on global poverty aims to enlist their energetic creativity in addressing one of our most commanding moral challenges."

The course on global poverty and development meets once a week at a Google headquarters. Each two-hour session features guest speakers on development-related issues such as education and health, equitable financial markets, globalization, and population mobility. On October 3, Rosamond L. Naylor, director of the Center on Food Security and the Environment (FSE) at FSI Stanford, co-taught a session on productive agriculture for the 21st century with Frank Rijsberman, Google.org director of water and climate adaptation issues.

Cohen opens each session, synthesizing points from previous weeks, and then moderates the hour-long discussion between guest speakers and Google employees that follows the speaker presentations. The 200-person capacity of the room is superseded by participation from employees at more than 20 remote locations. On October 3, Google.org Executive Director Larry Brilliant joined the discussion as well.

In a related collaboration, Cohen may also be leading a small-group seminar, "Global Poverty 2.0," at Stanford for Google employees as well as graduate students and colleagues. Global Poverty 2.0 is expected to meet on Friday afternoons and draw on readings from history, sociology, political science, economics, and philosophy. Students would be required to make one presentation and also to submit a 3,000-word project proposal for dealing with some aspect of the large problem of global poverty.

Google.org is the philanthropic arm of Google and the umbrella for its commitment to devote employee time and one percent of Google's profits and equity toward philanthropy.

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Branko Milanovic is lead economist in the World Bank research group and visiting professor at the School for Advanced International Studies at Johns Hopkins University. Previously, he was a World Bank country economist for Poland and a research fellow at the Institute of Economic Sciences in Belgrade, Yugoslavia. He received his Ph.D. in Economics in 1987 from Belgrade University.

Milanovic is an expert in economies in transition, income distribution, and globalization.

Recent publications include: Worlds Apart: Measuring International and Global Inequality (Princeton, 2005); Income and Influence: Social Policy and Emerging Economies, with Ethan Kapstein (Russell Sage, 2002); Inequality and Poverty During the Transition From Market Economy (World Bank, 1998).

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