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Virtually all human societies were once organized tribally, yet over time most developed new political institutions which included a central state that could keep the peace and uniform laws that applied to all citizens. Some went on to create governments that were accountable to their citizens. We take these institutions for granted, but they are absent or are unable to perform in many of today's developing countries-with often disastrous consequences for the rest of the world.

In The Origins of Political Order, Francis Fukuyama, author of the bestselling The End of History and the Last Man, provides a sweeping account of how today's basic political institutions developed. The first of a major two-volume work begins with politics among our primate ancestors and follows the story through the emergence of tribal societies, the growth of the first modern state in China, the beginning of a rule of law in India and the Middle East, and the development of political accountability in Europe up until the eve of the French Revolution.

Drawing on a vast body of knowledge-history, evolutionary biology, archaeology, and economics-Fukuyama has produced a brilliant, provocative work that offers fresh insights on the origins of democratic societies and raises essential questions about the nature of politics.

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Francis Fukuyama
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Europe dominated the 19th century. The 20th century saw the rise of the United States. Will the 21st century be "the Chinese Century"? Using a series of Harvard Business School Cases, this lecture will explore production, consumption, and education for China's new middle class, and think about China's future, in the light of its past.

William C. Kirby is T. M. Chang Professor of China Studies at Harvard University and Spangler Family Professor of Business Administration at the Harvard Business School. He is a Harvard University Distinguished Service Professor. He serves as Director of the Fairbank Center for Chinese Studies and Chairman of the Harvard China Fund.

A historian of modern China, Professor Kirby's work examines China's business, economic, and political development in an international context. He has written on the evolution of modern Chinese business (state-owned and private); Chinese corporate law and company structure; the history of freedom in China; the international socialist economy of the 1950s; relations across the Taiwan Strait; and China's relations with Europe and America. His current projects include case studies of contemporary Chinese businesses and a comparative study of higher education in China, Europe, and the United States.

This talk is co-sponsored with the Center for East Asian Studies (CEAS).

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William C. Kirby T. M. Chang Professor of China Studies at Harvard University and Spangler Family Professor of Business Administration Speaker Harvard Business School
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Lyushun Shen earned his doctorate in International Relations from the University of Pennsylvania. He started his career at the School of Law, University of Maryland before deciding to become a professional diplomat.  He has enjoyed a distinguished career serving Taiwan in its overseas missions in America and Europe, including in Washington D.C., Kansas City, Geneva and Brussels.  Prior to his current appointment he was Taiwan’s representative to the European Union. His publications include:  “The Republic of China’s Perspective on the US Omnibus Trade and Competitiveness Act of 1988” (The Chinese Yearbook of International Law and Affairs, 1989), The Issue of US Arms Sales and Peking’s Policy toward Taiwan (Taipei, 1986), “Is Peking’s Claim over Taiwan Internationally Recognized?” Monograph Series of the Asia and World Forum (Taipei, 1984), “The Washington-Peking Controversy over US Arms Sales to Taiwan: Diplomacy of Ambiguity and Escalation” (The Chinese Yearbook of International Law and Affairs, 1982), and “The Taiwan Issue in Peking’s Foreign Policy during the 1970’s, A Systematic Review” (The Chinese Yearbook of International Law and Affairs, 1981).

In this special event, Vice Foreign Minister Shen will reflect on the century-long relationship between the Republic of China and the United States, and address the future prospects and challenges of this relationship. 

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Lyushun Shen Vice Foreign Minister Speaker Ministry of Foreign Affairs, Republic of China (Taiwan)
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Please join the Program on Human Rights at the Center on Democracy, Development, and the Rule of Law, in welcoming Kenneth Roth, Executive Director of Human Rights Watch for a special event on the topic of President Obama's human rights record. Mr. Roth will speak about the US response to human rights abuses around the world, including recent uprisings in the Middle East and North Africa.

The event will be chaired by Professor David Abernethy, Professor Emeritus in the Stanford department of Political Science.  

How is Obama doing on human rights?
Executive Director Kenneth Roth will assess the Obama Administration's human rights record. How has the president done in addressing the uprisings in the Middle East and North Africa? How has he performed on legacy issues, such as Guantanamo and torture? How has he handled competing national interests in places like China? Has his greater emphasis on multilateral diplomacy, especially at the United Nations, helped or hurt the promotion of human rights? 

Kenneth Roth is the executive director of Human Rights Watch, one of the world's leading international human rights organizations, which operates in more than 80 countries. Prior to joining Human Rights Watch in 1987, Roth served as a federal prosecutor in New York and for the Iran-Contra investigation in Washington. A graduate of Yale Law School and Brown University, Roth has conducted numerous human rights investigations and missions around the world. He has written extensively on a wide range of human rights abuses, devoting special attention to issues of international justice, counterterrorism, the foreign policies of the major powers, and the work of the United Nations.

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Kenneth Roth Executive Director Speaker Human Rights Watch
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Larry Diamond
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Each president of the United States enters office thinking he will be able to define the agenda and set the course of America's relations with the rest of the world. And, almost invariably, each confronts crises that are thrust upon him-wars, revolutions, genocides, and deadly confrontations. Neither Woodrow Wilson nor FDR imagined having to plunge America into world war. Truman had to act quickly, and with little preparation, to confront the menace of Soviet expansion at war's end. JFK, for all his readiness to "bear any burden" in the struggle for freedom, did not expect his struggle to contain Soviet imperial ambitions would come so close to the brink of nuclear annihilation. Nixon was tested by a surprise war in the Middle East. Carter's presidency was consumed by the Shah's unraveling and the Iranian revolution. George H.W. Bush rose to the challenge of communism's collapse and Saddam Hussein's invasion of Kuwait. Clinton squandered the opportunity to stop a genocide in Rwanda and waited tragically too long before stopping one in Bosnia. George W. Bush mobilized the country to strike back after September 11, but, in the view of many, he put most of his chips in the wrong war.

In the eye of the historical storm, and in the absence of a challenge as immediate and overpowering as September 11, Pearl Harbor, or the Nazis' march across Europe, it is risky to identify any set of world events as game-changing. Yet that is what many analysts, including myself, believe the Arab revolutions of 2011 are. And a surprising number of specialists-including hard-eyed realists like Fareed Zakaria-have seized upon the crisis in Libya as a defining moment not just for the United States in the region but for the foreign policy presidency of Barack Obama as well.

To date, one could say that Obama has had a surprisingly good run for a foreign policy neophyte. He has revived the momentum for arms control with a new START treaty with Russia, while pressing the issue of human rights within Russia. He has managed the meteoric rise of China decently, while improving relations with India. He has not cut and run from Iraq-as most Republicans were convinced he would. And he has ramped up but at least set limits to our involvement in Afghanistan. As the Arab revolutions have gathered momentum, he has increasingly positioned the United States on the side of democratic change. His statements and actions have not gone as far as democracy promotion advocates (like myself) would have preferred, but they have overridden cautionary warnings of the foreign policy establishment in the State Department, the Pentagon, think tanks, and so on. Without Obama's artful choreography of public statements and private messages and pressures, Hosni Mubarak might still be in power today.

All of this, however, may appear in time only a prelude to the fateful choice that Obama will soon have to make-and, one fears, is already making by default in a tragically wrong way-in Libya. Why is Libya-with its six million people and its significant but still modest share of global oil exports-so important? Why must the fight against Muammar Qaddafi-a crazy and vicious dictator, but by now, in his capacity for global mischief, a largely defanged one-be our fight?

When presidents are tested by crisis, the world draws their measure, and the impressions formed can have big consequences down the road. After watching Jimmy Carter's weak and vacillating posture on Iran, the Soviets figured he'd sit on the sidelines if they invaded and swallowed Afghanistan. They misjudged, but Afghanistan and the world are still paying the price for that misperception. In the face of mixed messages and a long, cynical game of balance-of-power, Saddam too, misjudged that he could get away with swallowing up Kuwait in 1991. When the United States did not prepare for war as naked aggression swept across Asia and Europe, the Japanese thought a quick strike could disable and knock out the slumbering American giant across the Pacific. When Slobodan Milosevic and his Bosnian Serb allies launched their war of "ethnic cleansing," while "the West"-which is always to say, first and foremost, the United States-wrung its hands, many tens of thousands of innocent people were murdered and raped before President Bill Clinton finally found the resolve to mix air power and diplomacy to bring the genocidal violence to a halt.

If Muammar Qaddafi succeeds in crushing the Libyan revolt, as he is well on his way to doing, the U.S. foreign policy establishment will heave a sad sigh of regret and say, in essence, "That's the nasty business of world politics." In other words: nasty, but not our business. And so: not their blood on our hands. But, when we have encouraged them to stand up for their freedom, and when they have asked for our very limited help, it becomes our business. On February 23, President Obama said: "The United States ... strongly supports the universal rights of the Libyan people. That includes the rights of peaceful assembly, free speech, and the ability of the Libyan people to determine their own destiny. These are human rights. They are not negotiable. ... And they cannot be denied through violence or suppression." Yet denying them through murderous violence and merciless suppression-with a massacre of semi-genocidal proportions likely waiting as the end game in Benghazi-is exactly what Qaddafi is in the process of doing.

Barack Obama has bluntly declared that Qaddafi must go. The Libyan resistance, based in Benghazi, has appealed urgently for the imposition of a no-fly zone. Incredibly, the Arab League has endorsed the call, as has the Gulf Cooperation Council. France has recognized the rebel provisional government based in Benghazi as Libya's legitimate government-while Obama studies this all. Can anyone remember a time when France and the Arab League were ahead of the United States on a question of defending freedom fighters?

There is much more that can be done beyond imposing a no-fly zone. No one in their right mind is calling for putting American boots on the ground in Libya. But we can jam Qaddafi's communications. We can, and urgently should, get humanitarian supplies and communications equipment, including satellite modems for connection to the Internet, to the rebels in Benghazi, where they can be supplied by sea. And we should find a way to get them arms as well. Benghazi is not a minor desert town. It is Libya's second largest city, a major industrial and commercial hub, and a significant port. Through it, a revolt can be supplied. If Benghazi falls to Qaddafi, it will fall hard and bloodily, and the thud will be heard throughout the world.

Time may be running out. As the Los Angeles Times reported yesterday, "All that stands between Kadafi and rebel headquarters in Benghazi are disorganized volunteers and army defectors spread thinly along the coastal highway." They have passion and courage, but they lack weaponry, strategy, and training. Like so many rebel movements, they need time to pull these all together. Time is what a no-fly zone and an emergency supply line can buy them.

Libya's rebels are pleading for our help. "Where is America?" asked one of them, quoted in the L.A. Times, who was manning a checkpoint in Port Brega. "All they do is talk, talk, talk. They need to get rid of these planes killing Libyan people." The "they" he was referring to was the Americans, beginning with their leader-one would hope, still the leader of the "free world"-President Obama.

Many prudent reasons have been offered for doing nothing. It is not our fight. They might lose anyway. We don't know who these rebels really are. We have too many other commitments. And so on. The cautions sound reasonable, except that we have heard them all before. Think Mostar and Srebrenica. And we had a lot of commitments in World War II as well, when we could have and should have bombed the industrial infrastructure of the Holocaust. As for the possibility that the rebels might lose-a prospect that is a possibility if we aid them and a near certainty if we do not-which would be the greater ignominy: To have given Libya's rebels the support they asked for while they failed, or to have stood by and done absolutely nothing except talk while they were mowed down in the face of meek American protests that the Qaddafi's violence is "unacceptable"?

Oh yes. There is also the danger that China will veto a U.N. Security Council Resolution calling for a no-fly zone. Part of us should hope they do. Let the rising superpower-more cynical than the reigning one ever was-feel the first hot flash of hatred by Arabs feeling betrayed. Go ahead, make our day.

Presidents do not get elected to make easy decisions, and they certainly never become great doing so. They do not get credit just because they go along with what the diplomatic and military establishments tell them are the "wise and prudent" thing to do. This is not Hungary in 1956. There is no one standing behind Qaddafi-not the Soviet Union then, not the Arab League now, not even the entirety of his own army. That is why he must recruit mercenaries to save him. Qaddafi is the kind of neighborhood bully that Slobodan Milosevic was. And he must be met by the same kind of principled power. For America to do less than that now-less than the minimum that the Libyan rebels and the Arab neighbors are requesting-would be to shrink into global vacillation and ultimately irrelevance. If Barack Obama cannot face down a modest thug who is hated by most of his own people and by every neighboring government, who can he confront anywhere?

For the United States-and for Barack Obama-there is much more at stake in Libya than the fate of one more Arab state, or even the entire region. And the clock is ticking.

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On February 25 and 26, the Center on Democracy, Development, and the Rule of Law at Stanford University, in partnership with the Canadian Department of Foreign Affairs and International Trade, hosted a symposium titled, "Addressing the Accountability Gap in Statebuilding: The Case of Afghanistan." This event brought together leading experts, government officials, diplomats, practitioners, and academics to examine the problems of accountability, corruption, and election fraud that have risen in the wake of international statebuilding efforts in Afghanistan.

This unique forum allowed participants-both Afghan actors and members of the international community- who are heavily involved in building the institutions of the Afghan state, to participate in an honest exchange with their peers to surface challenges and generate recommendations to improve the practice of statebuilding moving forward. 

Panels were designed around the following questions: how to establish accountability in statebuilding, address electoral fraud evidenced in 2009 and 2010, manage powerbrokers who monopolize informal governance networks, coordinate anti-corruption efforts, and develop a political strategy for Afghanistan's future. What surfaced throughout these presentations and discussion was the issue of the "double compact" in Afghanistan-the failure of Afghans to self-govern and the failure of the international community to construct the institutions of a functioning state.

Participants proposed a new framework for governance that adopts a more participatory approach with the international community, Afghan government, and the public as equal partners in statebuilding endeavors. While challenges emerged there were also a number of key recommendations and strategies proposed  that can be pioneered by this influential group of policymakers and practitioners to ease the transition of responsibility to the Afghan government in 2014.  

The keynote address was delivered by former Afghan Minster of Finance and 2009 presidential candidate Dr. Ashraf Ghani, to an audience of more than 100 students and members of the local community. Dr. Ghani provided an honest and pragmatic account of the parallel and conflicting systems driven by the international community, which have given rise to systemic failure and corruption in Afghanistan.

"We are dealing with a crooked playing field," Dr. Ghani said recognizing that both the Afghan and international community were jointly responsible for this outcome. "When the field itself is crooked the nature of reform and change that we must initiate are very different. "

Dr. Ghani spent considerable time discussing the outsourcing of development to Washington-based firms that manage million dollar contracts and outsource technical work to foreign technocrats. This in Dr. Ghani's opinion does little to strengthen the internal capacities of the state, provide training opportunities to Afghans or allocate resources effectively to the general public.

Dr. Ghani stressed the importance of speaking honestly about these dysfunctions in the development system, "We need to start talking truth to each other if we are going to deal with this phenomenon. This double failure now is the genesis of the present."

Dr. Ghani channeled the sentiments of the Afghan public into the room by emphasizing the uncertainty that defines their lives. "Today it is the sense of injustice that drives conflict," Dr. Ghani said. "The level of conflict is driven by injustice. What Afghans yearn for is normalcy-the sense that the lives of our children and grandchildren will be better and what my generation endured will not be repeated."

The level of conflict is driven by injustice. What Afghans yearn for is normalcy-the sense that the lives of our children and grandchildren will be better and what my generation endured will  not be repeated.                    -Dr. Ashraf Ghani 

 Looking forward, Dr. Ghani advised that accountability mechanisms and feedback loops must be implemented to ensure that the necessary auditing and accounting mechanisms are in place to control corruption and ensure transparency. In addition, he called for one coherent system of rules that must be developed and agreed upon to govern development and prevent parallel systems from circumventing these rules. Finally, he advised adopting national programs that model the success of the National Solidarity Program, which reduced child mortality rates by 16%.

Dr. Ghani commented on the unique position that Afghanistan occupies at the crossroads of Asia, in the middle of "four huge hubs of change," China, India, Russia, and the Gulf. "A new regional era has to be created, if France and Germany could overcome hundreds of years of conflict we must create another sense of opportunity."

Dr. Ghani concluded by placing the hope and responsibility for Afghanistan's future in the hands of its younger generation, "We must talk about the generation compact in Afghanistan, our sons and daughters-both literal and figurative-are the source of growth and the source of dynamism...The women of Afghanistan, the youth of Afghanistan, and the poor of Afghanistan are the three numerical majorities that have been reduced to political and economic minority. Without investing in women, investing in youth and tackling the challenge of poverty, we are not going to have stability."

At the end of the two day symposium, participants collectively called for a comprehensive political strategy to facilitate the peaceful and legal transfer of power in 2014, which marks the end of President Karzai's term in office. With this important milestone in the near future, the international community remains committed to working with their Afghan counterparts to introduce political reform measures that will strengthen accountability mechanisms between the Afghan state and society. 

As Dr. Ghani eloquently stated at the end of his presentation, "We have to have an agenda of the future, we must engage in writing the history of the future."

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This two-day international forum at Stanford University brought together experts from academia, government, and industry to analyze leading cases of current institutional models for innovation in smart and green industries. Cases included multi-company collaborations, public-private partnerships, and government-funded consortia. To enable more focus and comparative analysis, sectors selected for focus included the built environment and intelligent transportation.

FORUM Speakers & DISCUSSANTS (listed in alphabetical order)

  • Rohit T. Aggarwala, Special Advisor to the Chair, C40 Cities Climate Leadership Group
  • Alan Beebe, Managing Director, China Greentech Initiative
  • Sven Beiker, Executive Director, Center for Automotive Research at Stanford (CARS)
  • Ann Bordetsky, North America Market Development, Better Place
  • Dennis Bracy, cEO, US-China Clean Energy Forum
  • Curtis R. Carlson, President and CEO, SRI International
  • Jaching Chou, Senior Transportation Analyst, Institute of Transportation
  • Stephen J. Eglash, Executive Director, Energy and Environment Affiliates Program, Stanford University
  • Henry Etzkowitz, President of Triple Helix Association; Senior Researcher, Human Sciences and Technology Advanced Research Institute (H-STAR), Stanford University; Visiting Professor at University of Edinburgh Business School
  • Gordon Feller, Director of Urban Innovation, Cisco Systems
  • TJ Glauthier, President, TJG Energy Associates, LLC
  • Russell Hancock, President & Chief Executive Officer, Joint Venture: Silicon Valley Network
  • Ted Howes, Business for Social Responsibility
  • Asim Hussain, Director of Product Marketing, Bloom Energy
  • Paul Chao-Chia Huang, Deputy General Director, Service Systems Technology Center, Industrial Technology Research Institute, Taiwan
  • Kristina M. Johnson, Former Under Secretary of Energy, U.S. Department of Energy
  • Jeffrey Heller, President, Heller Manus Architects
  • Allan King, Senior Manager, Institute for Information Industry, Taiwan
  • Michael Marlaire, Director, NASA Research Park
  • David Nieh, General Manager, Shui On Land Limited
  • Jon Sandelin, Senior Associate Emeritus, Office of Technology and Licensing, Stanford University
  • Gerald Sanders, CEO & Chairman, SkyTran
  • Tim Schweikert, President & CEO, China Region for GE Technology Infrastructure, GE
  • Jonathan Thorpe, Senior Vice President, Gale International
  • Kung Wang, Professor, China University of Technology
  • Sean Wang, President, ITRI International Inc.
  • Jonathan Woetzel, Director, McKinsey & Co; Co-Chair, Urban China Initiative

Questions for presentations and discussion included:

  • What roles are public-private partnerships and other forms of collaboration playing to advance innovations in smart green industries, such as in the built environment or intelligent transportation?
  • What innovations - not only in technologies and products but also in processes, models and platforms - are leading the way?
  • What results are emerging from living labs, leading cities, or other outstanding examples of public-private partnerships around the world?
  • How do results stack up against economic, energy and social metrics, e.g. economic productivity, quality of life, energy impact, financial payback, user response, etc.?
  • What are implications for business strategies?
  • What government policies are effectively nurturing advancement in these areas?

Outcomes will include policy recommendations as well as highlights to be included in a book published by SPRIE at Stanford.

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Francis Fukuyama
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Over the course of three short months, popular uprisings have toppled regimes in Tunisia and Egypt, sparked a civil war in Libya and created unrest in other parts of the Middle East. They also have raised a question in many people's minds: Are all authoritarian regimes now threatened by this new democratic wave? In particular, is China, a rising superpower, vulnerable to these forces?  

The Communist government in Beijing is clearly worried. It has limited news coverage of the recent uprisings and has clamped down on democratic activists and foreign reporters, acting pre-emptively against anonymous calls on the Internet for China to have its own "Jasmine Revolution." A recent front-page editorial in the Beijing Daily, an organ of the city's party committee, declared that most people in the Middle East were unhappy with the protests in their countries, which were a "self-delusional ruckus" orchestrated by a small minority. For his part, President Hu Jintao has urged the strengthening of what has been dubbed the "Great Firewall"-the sophisticated apparatus of censorship and surveillance that the regime uses to control access to the Internet.

No social scientist or intelligence analyst predicted the specific timing or spread of the Arab uprising-the fact that it would start in Tunisia, of all places, that it would be triggered by an event like the self-immolation of a vegetable seller, or that protests would force the mighty Egyptian army to abandon Hosni Mubarak. Over the past generation, Arab societies have appeared stolidly stable. Why they suddenly exploded in 2011 is something that can be understood only in retrospect, if at all.

But this doesn't mean that we can't think about social revolutions in a more structured way. Even unpredictable things take place in a certain context, and the present-day situations of China and the Middle East are radically different. Most of the evidence suggests that China is pretty safe from the democratic wave sweeping other parts of the world-at least for now.

Perhaps the most relevant thinker for understanding the Middle East today and China tomorrow is the late Samuel Huntington-not the Huntington of "The Clash of Civilizations," who argued that there were fundamental incompatibilities between Islam and democracy, but the Huntington whose classic book "Political Order in Changing Societies," first published in 1968, laid out his theory of the development "gap."

Observing the high levels of political instability plaguing countries in the developing world during the 1950s and '60s, Mr. Huntington noted that increasing levels of economic and social development often led to coups, revolutions and military takeovers. This could be explained, he argued, by a gap between the newly mobilized, educated and economically empowered people and their existing political system-that is, between their hopes for political participation and institutions that gave them little or no voice. Attacks against the existing political order, he noted, are seldom driven by the poorest of the poor in such a society; they tend to be led, instead, by rising middle classes who are frustrated by the lack of political and economic opportunity.

All of these observations would seem to apply to Tunisia and Egypt. Both countries have made substantial social progress in recent decades. The Human Development Indices compiled by the United Nations (a composite measure of health, education and income) increased by 28% for Egypt and 30% for Tunisia between 1990 and 2010. The number of people going to school has grown substantially; Tunisia especially has produced large numbers of college graduates. And indeed, the protests in Tunisia and Egypt were led in the first instance by educated, tech-savvy middle-class young people, who expressed to anyone who would listen their frustrations with societies in which they were not allowed to express their views, hold leaders accountable for corruption and incompetence, or get a job without political connections.

Mr. Huntington stressed the destabilizing power of new social groups seeking political participation. People used to be mobilized by newspapers and radio; today they are spurred to action by cell phones, Facebook and Twitter, which allow them to share their grievances about the existing system and to learn about the possibilities of the larger world. This change in the Middle East has been incredibly rapid, and it has trumped, for now, old verities about the supposed passivity of Arab culture and the resistance of Islam to modernization.

But do these remarkable developments tell us anything about the possibility for future instability in China?

It is certainly true that the dry tinder of social discontent is just as present in China as in the Middle East. The incident that triggered the Tunisian uprising was the self-immolation of Mohamed Bouazizi, who had his vegetable cart repeatedly confiscated by the authorities and who was slapped and insulted by the police when he went to complain. This issue dogs all regimes that have neither the rule of law nor public accountability: The authorities routinely fail to respect the dignity of ordinary citizens and run roughshod over their rights. There is no culture in which this sort of behavior is not strongly resented.

This is a huge problem throughout China. A recent report from Jiao Tong University found that there were 72 "major" incidents of social unrest in China in 2010, up 20% over the previous year. Most outside observers would argue that this understates the real number of cases by perhaps a couple of orders of magnitude. Such incidents are hard to count because they often occur in rural areas where reporting is strictly controlled by the Chinese authorities.

The most typical case of outraged dignity in contemporary China is a local government that works in collusion with a private developer to take away the land of peasants or poor workers to make way for a glittery new project, or a company that dumps pollutants into a town's water supply and gets away with it because the local party boss stands to profit personally. Though corruption in China does not reach the predatory levels of certain African or Middle Eastern countries, it is nonetheless pervasive. People see and resent the privileged lives of the nation's elite and their children. The movie "Avatar" was a big hit in China in part because so many ordinary Chinese identified with the indigenous people it portrayed whose land was being stolen by a giant, faceless corporation.

There is, moreover, a huge and growing problem of inequality in China. The gains from China's remarkable growth have gone disproportionately to the country's coastal regions, leaving many rural areas far behind. China's Gini index-a standard measure of income inequality across a society-has increased to almost Latin American levels over the past generation. By comparison, Egypt and Tunisia have a much more equal income distribution.

According to Mr. Huntington, however, revolutions are made not by the poor but by upwardly mobile middle-class people who find their aspirations stymied, and there are lots of them in China. Depending on how you define it, China's middle class may outnumber the whole population of the United States. Like the middle-class people of Tunisia and Egypt, those in China have no opportunities for political participation. But unlike their Middle Eastern counterparts, they have benefited from a dramatically improving economy and a government that has focused like a laser beam on creating employment for exactly this group.

To the extent that we can gauge Chinese public opinion through surveys like Asia Barometer, a very large majority of Chinese feel that their lives have gotten better economically in recent years. A majority of Chinese also believe that democracy is the best form of government, but in a curious twist, they think that China is already democratic and profess to be satisfied with this state of affairs. This translates into a relatively low degree of support for any short-term transition to genuine liberal democracy.

Indeed, there is some reason to believe that the middle class in China may fear multiparty democracy in the short run, because it would unleash huge demands for redistribution precisely from those who have been left behind. Prosperous Chinese see the recent populist polarization of politics in Thailand as a warning of what democracy may bring.

The fact is that authoritarianism in China is of a far higher quality than in the Middle East. Though not formally accountable to its people through elections, the Chinese government keeps careful track of popular discontents and often responds through appeasement rather than repression. Beijing is forthright, for example, in acknowledging the country's growing income disparities and for the past few years has sought to mitigate the problem by shifting new investments to the poor interior of the country. When flagrant cases of corruption or abuse appear, like melamine-tainted baby formula or the shoddy school construction revealed by the Sichuan earthquake, the government holds local officials brutally accountable-sometimes by executing them.

Another notable feature of Chinese government is self-enforced leadership turnover. Arab leaders like Tunisia's Zine al-Abidine Ben Ali, Egypt's Mr. Mubarak and Libya's Col. Moammar Gadhafi never knew when to quit, hanging on 23, 30 and 41 years, respectively. Since Mao, the Chinese leadership has rigidly adhered to terms of about a decade. Mr. Hu, the current president, is scheduled to step down in 2012, when he is likely to be replaced by Vice President Xi Jinping. Leadership turnover means that there is more policy innovation, in sharp contrast to countries like Tunisia and Egypt, which have been stuck for decades in the rut of crony capitalism.

The Chinese government is also more clever and ruthless in its approach to repression. Sensing a clear threat, the authorities never let Western social media spread in the first place. Facebook and Twitter are banned, and content on websites and on China-based social media is screened by an army of censors. It is possible, of course, for word of government misdeeds to get out in the time between its first posting by a micro-blogger and its removal by a censor, but this cat-and-mouse game makes it hard for a unified social space to emerge.

A final critical way in which China's situation differs from that of the Middle East lies in the nature of its military. The fate of authoritarian regimes facing popular protests ultimately depends on the cohesiveness and loyalty of its military, police and intelligence organizations. The Tunisian army failed to back Mr. Ben Ali early on; after some waffling, the Egyptian army decided it would not fire on protesters and pushed Mr. Mubarak out of power.

In China, the People's Liberation Army is a huge and increasingly autonomous organization with strong economic interests that give it a stake in the status quo. As in the Tiananmen uprising in 1989, it has plenty of loyal units around the country that it could bring into Beijing or Shanghai, and they would not hesitate to fire on demonstrators. The PLA also regards itself as the custodian of Chinese nationalism. It has developed an alternative narrative of 20th-century history that places itself at the center of events like the defeat of Japan in the Pacific war and the rise of a modern China. It is very unlikely that the PLA would switch sides and support a democratic uprising.

The bottom line is that China will not catch the Middle Eastern contagion anytime soon. But it could easily face problems down the road. China has not experienced a major recession or economic setback since it set out on its course of economic reform in 1978. If the country's current property bubble bursts and tens of millions of people are thrown out of work, the government's legitimacy, which rests on its management of the economy, would be seriously undermined.

Moreover, Mr. Huntington's scenario of rising but unfulfilled expectations among the middle class may still play out. Though there is a labor shortage among low-skill workers in China today, there is a glut of the college educated. Every year into the future, China will graduate more than seven million people from its universities, up from fewer than a million in 1998, and many of them are struggling to find work suitable to their self-perceived status. Several million unemployed college graduates are far more dangerous to a modernizing regime than hundreds of millions of poor peasants.

There is also what the Chinese themselves call the "bad emperor" problem. China's historical achievement over the centuries has been the creation of high-quality centralized bureaucratic government. When authoritarian rulers are competent and reasonably responsible, things can go very well. Indeed, such decision-making is often more efficient than in a democracy. But there is no guarantee that the system will always produce good rulers, and in the absence of the rule of law and electoral checks on executive power, there is no way to get rid of a bad emperor. The last bad emperor, commonly (if quietly) acknowledged as such, was Mao. We can't know what future tyrant, or corrupt kleptocrat, may be waiting in the wings in China's future.

The truth is that, much as we might theorize about the causes of social revolution, human societies are far too complex, and change too rapidly, for any simple theory to provide a reliable guide. Any number of observers dismissed the power of the "Arab street" to bring about political change, based on their deep knowledge of the Middle East, and they were right every year-up until 2011.

The hardest thing for any political observer to predict is the moral element. All social revolutions are driven by intense anger over injured dignity, an anger that is sometimes crystallized by a single incident or image that mobilizes previously disorganized individuals and binds them into a community. We can quote statistics on education or job growth, or dig into our knowledge of a society's history and culture, and yet completely miss the way that social consciousness is swiftly evolving through a myriad of text messages, shared videos or simple conversations.

The central moral imponderable with regard to China is the middle class, which up to now has seemed content to trade political freedom for rising incomes and stability. But at some point this trade-off is likely to fail; the regime will find itself unable to deliver the goods, or the insult to the dignity of the Chinese people will become too great to tolerate. We shouldn't pretend that we can predict when this tipping point will occur, but its eventual arrival, as Samuel Huntington might have suggested, is bound up with the very logic of modernization itself.

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Dr. Brian Chen's research has examined the tradeoffs between moral hazard and efficiencies in the integration of physician and non-physician medical services in the presence of asymmetric information. He has looked at a policy intervention in Taiwan that prohibited self-referrals of patients to physician-owned pharmacies unless the physician group integrated pharmacy services into the clinic by hiring an onsite pharmacist. He found that the policy reduced drug expenditures by close to thirty percent among physicians that did not have an onsite pharmacist. However, these physicians responded by increasing the overprovision of diagnostic services not covered by the policy, thereby reducing the effectiveness of the policy. Forty-five percent of the clinics that did not have an onsite pharmacist prior to the policy hired one subsequent to the implementation of the policy. Overall, after integration, the policy applied to only seventeen percent of clinics, and only reduced average discretionary expenditures by about two-point-five percent. Chen's research also shows that despite the reduction in drug utilization, patients treated at clinics without an onsite pharmacist did not have greater observable adverse health events than patients treated at integrated clinics. His results show that moral hazard costs of self-referral incentives are large, that the “safe harbor” exemption severely reduces the effectiveness of the policy, and that the exemption explains much of the recent integration of ancillary services into physician offices.

Dr. Brian Chen recently completed his Ph.D. in business administration in the Business and Public Policy Group at the Haas School of Business, University of California at Berkeley. He received a Juris Doctor from Stanford Law School in 1997, and graduated summa cum laude from Harvard College in 1992.

Daniel and Nancy Okimoto Conference Room

Brian Chen 2011 AHPP/CEAS Visiting Scholar Speaker Stanford University
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