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For the last decade, China has been at the forefront of pushing for regional economic integration, e.g. ASEAN-China FTA, Hong Kong-China CEPA, and China-Taiwan ECFA. Could this process culminate into a movement toward a European Union-style economic bloc? What are the implications of this development for US economic welfare? US unions have long viewed the cheap goods from China as harmful to US workers; and some US economists have recently blamed the cheap credit from China for the 2008 implosion of the US financial system. The present escalation of Chinese and US rhetoric on the exchange rate is worryingly akin to the mutual pawing on the ground before the great leap forward at each other. What is the sensible solution? There is no sign that the impasse over the Doha Round of trade negotiations would be resolved in the medium-term.  It is very surprising that China has adopted a near hands-off approach on this issue because it has been the biggest beneficiary of the open multilateral trading system. Has China's failure to help strengthen the WTO framework emboldened protectionism, much to its own detriment and the world's? In this seminar, Professor Woo will examine China's strategy of external economic engagement, including the recently signed ECFA between Beijing and Taipei. Woo argues that part (and only part) of the reason why China does not already have a coherent strategy could be that its present governance institutions create disincentives to move quickly to embrace such a strategy.  

 

Wing Thye Woo is Professor of Economics at U.C. Davis, Yangtze River Scholar at the Central University of Finance and Economics in Beijing, Director of the East Asia Program within The Earth Institute at Columbia University, and Nonresident Senior Fellow at the Brookings Institution. He received an M.A. in Economics from Yale University, and an M.A. and a Ph.D. in Economics from Harvard University. He has advised the U.S. Treasury Department, the IMF, World Bank, and the United Nations. Professor Woo has published extensively, and his current research focuses on the economic issues of East Asia, international financial architecture, comparative economic growth, state enterprise restructuring, fiscal management, and exchange rate economics.

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Wing Thye Woo Professor of Economics Speaker University of California at Davis
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In mid-September, honors students from the Interschool Honors Programs convened by FSI's Center on Democracy, Development, and the Rule of Law and the Center for International Security and Cooperation traveled to Washington, D.C., with their faculty advisors for senior-level meetings and policy briefings. They met with senior U.S. government officials from the White House, State Department, Homeland Security, and the intelligence community, with representatives of international organizations such as the World Bank, and NGOs, think tanks and other policy forums engaged in international affairs.

CDDRL Policy Briefings

Led by CDDRL Director and FSI Senior Fellow Larry Diamond, Deputy Director and FSI Senior Fellow Kathryn Stoner, and FSI's %people5%, CDDRL students engaged in policy discussions with the National Endowment for Democracy, USAID, the World Bank, the National Security Council, the Center for International Private Enterprise, the Inter-American Dialogue and the Millennium Challenge Corporation.  Sessions were held at the Open Society Institute founded by George Soros and the Community of Democracies.  Students met at the U.S. State Department with Policy Planning staff and the Under Secretary for Economic, Energy and Agricultural Affairs for frank discussions of U.S. policy priorities, the Quadrennial Diplomacy and Development Review and the transformative effects that emerging economic powers, such as China, India and Brazil are exerting on trade, credit, investment, innovation and governance of major and political and economic institutions.

During these sessions, CDDRL students delved into efforts to advance and secure democracy, economic development, good governance, rule of law, corruption control, civil society, and a free media. In the current environment, marked by repression in many countries, multi-pronged efforts to help ensure that the pluralistic institutions of a vibrant civil society are allowed to prosper took on  particular importance.  Another key issue was the role of information technologies, in building and supporting democracy, by creating a robust network of activists and promoting collective action.

“It was eye-opening to see the diverse mechanisms through which one can effect positive social change. I learned that it is possible to successfully bridge the two worlds of policy and academe. The meetings made me think about the many different routes to a possible career in the dynamic world of Washington politics.”
 Kamil Dada ’11, CDDRL

"A key objective of the Washington trip is to expose these talented students to the challenges of policy formulation, implementation, and assessment, as they prepare to write their honors theses this academic year," said Kathryn Stoner-Weiss. For some students, it was a first exposure to the policy process in Washington. Others had interned in policy positions in the nation's capital and overseas, and used their opportunities in September to report back on findings of their previous work, renew contacts and glean new insight and information on evolving issues.

"The discussions we held with senior officials were full, frank, and often, off-the-record to give the students a firsthand opportunity to engage in candid exchange on major issues and to pose probing questions," said Larry Diamond, CDDRL Director. "The players, issues, and dilemmas that arise in the policy process are not always evident from the outside."

CISAC: Focus on Security Issues

The students in CISAC's Interschool Honors Program in International Security Studies-led in Washington by Martha Crenshaw, FSI Senior Fellow and professor (by courtesy) in the Political Science Department; Lynn Eden, Senior Research Scholar and CISAC Associate Director for Research; and teaching assistant Michael Sulmeyer, a CISAC pre-doctoral fellow and third-year Stanford law student-focused on major national and international security issues, including nuclear weapons policy like the new START Treaty to reduce nuclear arms and the Nuclear Posture Review, and counter-terrorism issues such as intelligence gathering and regional analysis. CISAC students first met with four veteran national security reporters at The New York Times, and later with members of the intelligence community, including the Director of the National Counterterrorism Center, Michael Leiter, and the Chairman of the National Intelligence Council, Christopher Kojm.

“This was my first visit to Washington, and I could not have asked for a more comprehensive or enjoyable introduction to the nation’s capital. The broad array of institutions and people we experienced was a salient reminder of just how diverse this country truly is.” Devin Banerjee ’11, CISAC

Students also met with Paul Stockton, Assistant Secretary of Defense for Homeland Defense and Americas' Security Affairs. Prior to his government service, Stockton had been a scholar at CISAC and had taught CISAC honors students for three years. CISAC students met with Antony Blinken, who serves as National Security Adviser to Vice President Biden. The students also were exposed to research and publication think-tanks like the Brookings Institution, RAND Corporation, the Center for a New American Security and the New America Foundation. At the end of CISAC's first week in the capital, the students met a dozen Washington-based alumni of the program over dinner, where alumni provided valuable research resources and job advice to their younger counterparts.

"The Washington component of CISAC's honors program provides an invaluable opportunity for our students to learn how the policy-making process works, explore the complexities of international security, and test their preliminary ideas about the topic they have chosen for their honors thesis," said Martha Crenshaw. "In turn, the officials we meet invariably wish to spend longer with our students, some even rearranging their schedules (or trying!) to continue a fascinating and candid conversation."

Highlight: The National Security Council

A major highlight of this year's trip, for both the CISAC and the CDDRL students, was a policy discussion at the National Security Council with two leading Stanford political scientists and foreign policy experts serving in the Obama administration. Political Science Professor Michael A. McFaul, former director of CDDRL and deputy director of FSI, is now Senior Director for Russia on the National Security Council and the president's top advisor on Russia, and Assistant Professor Jeremy M. Weinstein, an affiliated CISAC and CDDRL faculty member, serves as Director for Democracy on the National Security Staff.  Students engaged in a lively discussion of U.S. foreign policy priorities, U.S.-Russian relations, democracy, human rights and economic development.

"Our honors students are fortunate to have the chance to engage in high-level policy discussions, especially with Stanford faculty members serving in Washington," said Coit D. Blacker, Director of the Freeman Spogli Institute for International Studies, who directs the CISAC honors program with Martha Crenshaw and who, under President Clinton, served as special assistant to the President and  Senior Director for Russian, Ukrainian, and Eurasian Affairs on the National Security Council. "Direct exposure to the policymaking process, with all its promise and pitfalls, will make them better scholars and future thought leaders."

"I was struck by the innovative ways in which certain agencies approach democracy promotion," said CDDRL honors student Ayeesha Lalji '11. "I think the struggle is often in packaging programs in the right way so that an impervious nation becomes more open to a vital component of social, political, or economic development."

"The discussions with prominent policy thinkers and current and former senior officials made a deep impression on our students," said Larry Diamond, CDDRL Director.  "These young people--who will go on themselves to be leaders in these fields-- got a vivid sense of how the policy process really works, and why service in government and public affairs is, despite the frequent frustrations, an exciting and noble mission."

"CISAC's ten days in Washington provide our students exceptional access to practitioners of various types and at all levels of the policy world, as well as inside knowledge of today's critical issues," said Martha Crenshaw. "The experience also establishes a solid foundation for a year-long intellectual experience in a weekly research seminar devoted to producing a thesis that makes an original contribution to the field of international security."

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Simeon Nichter is a Postdoctoral Fellow at the Center on Democracy, Development and the Rule of Law at Stanford University. He also serves as a non-resident Postdoctoral Fellow at the Center for Global Development. Nichter holds a PhD in Political Science from UC Berkeley, an MPA in International Development from the Harvard Kennedy School, and a BA in Economics from Carleton College.

Simeon's ongoing research explores the political voice of poor and marginalized populations in emerging democracies, with central reference to Latin America. He examines how politicians offer material benefits to the poor in exchange for political support, and investigates how individuals' vote choices affect subsequent access to services. His research has been funded by fellowships from the National Science Foundation, Jacob K. Javits Program, and other sources. He has recently published articles in the American Political Science Review, Comparative Political Studies, Review of Economics and Statistics, and World Development.

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Simeon Nichter Visiting Scholar 2010-2011 Speaker CDDRL
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Steve Radelet is Senior Advisor for Development in the Office of the Secretary of State. From 2002 to 2010 he was a Senior Fellow at the Center for Global Development, where his work focused on economic growth, poverty reduction, foreign aid, debt, and trade. He served as an economic advisor to the Government of Liberia from 2005-2009, and was founding co-chair of the Modernizing Foreign Assistance Network. He was Deputy Assistant Secretary of the Treasury for Africa, the Middle East, and Asia from 2000 to 2002. From 1990 to 2000, he was on the faculty of Harvard University, where he was a fellow at the Harvard Institute for International Development (HIID) and a lecturer on economics and public policy.  He is the author of Emerging Africa: How 17 Countries are Leading the Way and Challenging Foreign Aid: A Policymaker's Guide to the Millennium Challenge Account, and co-author of Economics of Development, a leading undergraduate textbook. He served as resident advisor to the Ministry of Finance in Indonesia (1991-95) and The Gambia (1986-88), and was a Peace Corps Volunteer in Western Samoa.

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Steven Radelet Senior Advisor on Development Speaker The office of Secretary of State
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Brian Levy currently is Head of the Bank's Governance and Anti-Corruption Secretariat in the World Bank - from where co-ordinates implementation of the Bank Group's GAC strategy. He is the author of Governance Reform: Bridging Monitoring and Action (World Bank, 2007), which builds on his 2006 work on governance monitoring featured in the 2006 Global Monitoring Report, Mutual Accountability: Aid, Trade and Governance . He worked in the World Bank's Africa Vice Presidency from 1991 to 2003 on the challenges of strengthening the institutional underpinnings of African development, for the last four years as sector manager of the Africa Public Sector Reform and Capacity Building Unit. He was a member of the core team which produced the World Bank's 1997 World Development Report, The State in a Changing World.  He has published numerous books and articles on the interactions between public institutions, the private sector and development in Africa, East Asia, and elsewhere, most recently editing (jointly with Sahr Kpundeh) the volume, Building State Capacity in Africa (World Bank Institute, 2004) Prior to joining the Bank he was assistant professor in development economics at Williams College in Williamstown, Massachusetts. He completed his Ph.D in economics at Harvard University in 1983.

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Brian Levy Adviser, Public Sector Governance Speaker The World Bank
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Hon. Beatrice Kiraso, MPA is Deputy Secretary General in charge of Political Federation of the East African Community, the regional intergovernmental organisation of Kenya, Tanzania, Rwanda and Burundi with its headquarters in Arusha, Tanzania. Prior to her appointment in 2006, Hon. Kiraso was a Member of Parliament of the Uganda National Assembly for two terms from 1996-2005. During her tenure, she was Chairperson of the Budget Committee (2001-2005), Chairperson of the Committee on Finance, Planning and Economic Development (1988-2001) and participated in the review of Uganda’s Poverty Eradication Action Plan.

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Beatrice Kiraso Deputy Secretary General in charge of Political Federation of the East African Community Speaker
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The Muslims of South Asia made the transition to modern economic life more slowly than the region’s Hindus. In the first half of the twentieth century, they were relatively less likely to use large-scale and long-living economic organizations, and less likely to serve on corporate boards. Providing evidence, this paper also explores the institutional roots of the difference in communal trajectories. Whereas Hindu inheritance practices favored capital accumulation within families and the preservation of family fortunes across generations, the Islamic inheritance system, which the British helped to enforce, tended to fragment family wealth. The family trusts (waqfs) that Muslims used to preserve assets across generations hindered capital pooling among families, and they were ill-suited to profit-seeking business. Whereas Hindus generally pooled capital within durable joint family enterprises, Muslims tended to use ephemeral Islamic partnerships. Hindu family businesses facilitated the transition to modern corporate life by imparting skills useful in large and durable organizations.

Timur Kuran is Professor of Economics and Political Science, and Gorter Family Professor of Islamic Studies at Duke University. His research focuses on social change, including the evolution of preferences and institutions. He has just completed a book, The Long Divergence (Princeton University Press, forthcoming 2010), on the role that Islam played in the economic rise of the Middle East and, subsequently, in the institutional stagnation that accompanied the region's slip into a state of underdevelopment. Some of the archival work on which this book was based will be published, also in 2010, as a ten-volume bi-lingual set entitled Kadı Sicilleri. Among Kuran's earlier publications are Private Truths,(Harvard University Press, Işığında 17. Yüzyıl İstanbul'unda Ekonomik Yaşam / Economic Life in Seventeenth-Century Istanbul, as Reflected in Court Registers Public Lies: The Social Consequences of Preference Falsification 1995) and Islam and Mammon: The Economic Predicaments of Islamism (Princeton University Press, 2004), each translated into several languages, including Turkish.

Link to paper:  http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1656038

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Timur Kuran Professor of Economics and Political Science Speaker Duke University
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Philip Keefer is a Lead Research Economist in the Development Research Group of the World Bank. Since receiving his PhD in Economics from Washington University at St. Louis, he has worked continuously on the interaction of institutions, political economy and economic development. His research has included investigations of the impact of insecure property rights on economic growth; the effect of political credibility on the policy choices of governments; and the sources of political credibility in democracies and autocracies. It has appeared in journals that span economics and political science, ranging from the Quarterly Journal of Economics to the American Review of Political Science, and has been influenced by his work in a wide range of countries, including Bangladesh, Brazil, the Dominican Republic, Indonesia, México, Perú, Pakistan and the Philippines.

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Philip Keefer Lead Research Economist Speaker World Bank
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