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In today's global economy, access to resources around the world has never been easier. The high tech industry has always been in the forefront of globalization in lowering costs, acquiring talent as well as serving markets. For instance, Asian countries have long been known for their vast manufacturing bases for western high tech industry.

In recent years, thanks to Y2K, India has become the leader in software outsourcing. China, given its expanding economy as well as its open market direction, has rapidly become the emerging location for multi-national semiconductor companies to outsource their product development amidst China's own burgeoning integrated circuit (IC) industry. Mr. Lee has first-hand experience in building and managing an IC product development center in Shanghai, China. He will discuss the challenges of operating a R&D organization in an environment of different languages and cultures. He will also share his vision of the future of the IC industry in China.

Mr. Lee is Group Vice President and general manager of Timing Solutions Products at Integrated Device Technology, Inc.(IDT), a public semiconductor company of $650 million annual sales, focusing on valued-added solutions for communication, consumer and computing markets. He has been with IDT for the last 22 years and has served various management roles. In 2001, he architected the acquisition of Newave Semiconductor Corporation in China and established the Shanghai Product Development Center for IDT. Before joining IDT in 1984, Mr. Lee spent 5 years at Intel Corporation as a technologist for the early development of flash memory technology. Mr. Lee earned his B.S. degree in Electrical Engineering from National Taiwan University in 1975 and M.S. degree from Case Western Reserve University in 1979.

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Jimmy Lee Group Vice President & General Manager of Timing Solutions Products Speaker Integrated Device Technology, Inc.
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A background paper is available.

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Visiting Scholar 2005 -2006
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He is at CDDRL as a Humboldt Fellow.

Christoph Zuercher CDDRL Visiting Scholar, Associate Professor Speaker Free University Berlin
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China's software industry is at an inflexion point. For the past decade, China has been in the shadow of India's spectacular success in the IT outsourcing industry. While changes are underway, many challenges remain. However, it is possible to build software development teams in China, collaborating with teams in the United States, to be as good as software development teams anywhere in the world.

Dr. Liu will discuss his experience as Chairman and CEO of Augmentum, a value-added software development services company that has grown in two years to more than 450 people worldwide, 90% of them at Augmentum's development facility in Shanghai. Sixty percent of Augmentum's work is high-value added such as total products and solutions, from architecture to system integration test. All their customers are in North America -- many of them leaders in their respective industries.

Leonard Liu has spent 30 years in the systems industry, with a track record of developing innovative computing technologies into successful businesses. Most recently, he served as president of ASE Group, a leading provider of IC test and packaging services, having held roles as Chairman and CEO of Walker Interactive Systems, COO of Cadence Design Systems, and President of Acer Group. He was an early champion of outsourcing to India and China at Cadence and Walker. Dr. Liu began his career at IBM where he was responsible for the creation and implementation of SQL and the management of CICS, SNA and AIX, eventually overseeing the worldwide Database and Language lines-of-business. He received his undergraduate degree from Taiwan University and his Ph.D. from Princeton University.

Part of SPRIE's Greater China and the Globalization of R&D seminar series

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Leonard Liu Chairman and CEO, Augmentum, former executive at Cadence, Acer Group & IBM Speaker
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In his first term in office, President George W. Bush established and nurtured a close personal relationship with Russian President Vladimir V. Putin. Early on, Bushs overtures toward his counterpart in the Kremlin produced beneficial results for the presidents policies. President Bush succeeded in persuading Putin to acquiesce in the abrogation of the Anti-Ballistic Missile Treaty, a revision of the Cold War arms-control regime that Bush deemed necessary for his security agenda. After the attacks of September 11, Putin sided publicly and unequivocally with the United States in the war on terror, providing material and intelligence assistance to the American military intervention in Afghanistan and not hindering the deployment of American troops in Central Asia. Since then, Russian and American officials claim that the two countries have continued to share intelligence in fighting cooperatively the global war on terror.

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Policy Review
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Michael A. McFaul
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Alex Thier
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In a recent op ed, CDDRL's J. Alexander Thier discusses Afghanistan's landmark September 2005 elections. He notes, however, that while this is an encouraging sign, Afghanistan is far from out of the woods in terms of establishing itself as a stable state.

Afghanistan held its landmark legislative elections this Sunday. Almost exactly four years after 9/11, and the invasion that followed, Afghanistan will have, for the first time in its history, a democratically elected constitutional government. That is something remarkable, and cause to celebrate - but only in the way that one cheers hopefully during a tough game at halftime.

Everything we know about democracy promotion and post-conflict reconstruction tells us that Afghanistan is far from out of the woods. Even after significant international intervention, many failed states remain unstable, or relapse into conflict and chaos. Remember Haiti? The United States invaded in 1994 and oversaw reconstruction and elections in 1995 and 2000, as international forces slowly withdrew. By 2004, U.S. and United Nations Forces were dispatched to the troubled island again. Haiti is not an outlier. World Bank studies show that countries coming out of civil war are forty percent likely to return to war within five years. It took one horrific hurricane to turn New Orleans to chaos. Imagine the effects of 25 years of war.

One of the main reasons failing countries continue to fail is economic. Economic recovery after war provides one of the best measures of the likelihood of long-term stability. International assistance can play a key role in jump-starting the economy and paying for basic government services, but it can take a generation to return to pre-war standards of living. The problem is that donor countries tend to be most generous in the first few years of the crisis - when local capacity to do something with those funds is limited. And just when the government starts to get on its feet - usually around the four-year mark - the assistance dries up.

The Afghan economy has seen remarkable growth rates over the last four years, but that is only half good. There is a truly free market now in Afghanistan - free from the rule of law. Much of the growth has come from the booming opium trade and other smuggling operations. While a strong economy is necessary to rebuild state and society, a criminal economy will necessarily destroy them both.

Politically, Afghanistan is getting its first taste of real elections - but it is far from being a stable democracy. There were more than 5,000 candidates in the legislative elections this Sunday, violence was relatively low, and turnout decent - all signs that political participation is blossoming. But nobody knows who will run the new parliament, or how it will function. It has no building and no staff. The only other parliament in Afghanistan's history, from 1965 to 1973, is widely blamed for increasing the polarization that led to civil war there. Since armed warlords still dominate many parts of the country, they will undoubtedly be strongly represented in the new legislature. As we have seen in places like Liberia and Serbia, post-conflict elections can produce quite undemocratic leaders.

What does this mean for Afghanistan? First, it means that the next four years will be as important there as the last four. Afghanistan's leaders, elected and otherwise, must put the cause of their nation before their factional, ethnic and venal interests. For our part, the United States and its allies must continue to support Afghanistan, financially and militarily, until it gets out of the danger zone. That means the same level of support for at least another four years.

Second, it means we have to shift our mentality there from short term to long term. If the United States has one overarching goal, it must be to build a legitimate Afghan state that is strong enough to survive and competent enough to deliver results. The Afghan police and legal system remain in shambles. Afghanistan's school system was rated the worst in the world last year by the United Nations Development Program. More international support needs to go to education, training a capable Afghan government, and supporting the rule of law.

Finally, it means something a little more intangible: continued political attention. If Afghanistan falls off the policy agenda in Washington, London and Berlin, the dangers that lurk there will prosper. Lagging reconstruction is already creating support for the ongoing Taliban insurgency. An unchecked opium trade keeps warlord armies well fed.

On this anniversary, we must remember the true cause of those grim attacks four years ago: Bin Laden and Al Qaeda had free reign of a failed state in chaos. We may not be able to find bin Laden, but we know where Afghanistan is located.

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In today's increasingly interconnected world, weak and failed states pose an acute risk to U.S. and global security. Indeed, they present one of the most important foreign policy challenges of the contemporary era. States are most vulnerable to collapse in the time immediately before, during, and after conflict. When chaos prevails, terrorism, narcotics trade, weapons proliferation, and other forms of organized crime can flourish. Left in dire straits, subject to depredation, and denied access to basic services, people become susceptible to the exhortations of demagogues and hatemongers. It was in such circumstances that in 2001 one of the poorest countries in the world, Afghanistan, became the base for the deadliest attack ever on the U.S. homeland, graphically and tragically illustrating that the problems of other countries often do not affect them alone.

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Foreign Affairs
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Stephen D. Krasner
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Professor Esther Duflo, co-founder of the Poverty Action Lab at the Massachusetts Institute of Technology, will speak as part of the CDDRL project on Women and Development. Her talk will focus on her research into women in Indian politics.

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Esther Duflo Professor of Economics MIT
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Since the September 11 attacks, a number of U.S. and European strategists have stepped forward to call for a fundamental paradigm shift in how the United States and Europe engage the broader Middle East - that wide swath of the globe, predominantly Muslim and overwhelmingly authoritarian, stretching from Morocco to Afghanistan. The West, they have argued, must abandon the chimera of stability offered by an autocratic status quo and instead put the weight of Western influence on the side of positive democratic change. Washington and Brussels must join forces in a partnership with reformers in the region to promote democratic transformation and human development as an antidote to those radical ideologies and terrorist groups that seek to destroy Western society and values.

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The Washington Quarterly
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Michael A. McFaul
Larry Diamond
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An intensive global search is on for the "rule of law," the holy grail of good governance, which has led to a dramatic increase in judicial reform activities in developing countries. Very little attention, however, has been paid to the widening gap between theory and practice, or to the ongoing disconnect between stated project goals and actual funded activities. Beyond Common Knowledge examines the standard methods of legal and judicial reform. Taking stock of international experience in legal and judicial reform in Latin America, Europe, India, and China, this volume answers key questions in the judicial reform debate: What are the common assumptions about the role of the courts in improving economic growth and democratic politics? Do we expect too much from the formal legal system? Is investing in judicial reform projects a good strategy for getting at the problems of governance that beset many developing countries? If not, what are we missing?

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Stanford University Press
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Erik Jensen
Thomas C. Heller
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Marina S. Ottaway specializes in democracy and post-conflict reconstruction issues. She is a Senior Associate of the Carnegie Endowment for International Peace in the Democracy and Rule of Law Project, a research endeavor that analyzes the state of democracy around the world and the efforts by the United States and other countries to promote democracy. Her new book, Democracy Challenged, a comparative study of semiauthoritarian regimes in Africa, the Caucasus, Latin America, and the Middle East, was published in January 2003. Her current works focus on political transformation in the Middle East and reconstruction in Iraq and Afghanistan.

She is also a lecturer in African Studies at the Nitze School for Advanced International Studies at Johns Hopkins University. Ottaway carried out research in Africa and in the Middle East and taught at the University of Addis Ababa, the University of Zambia, the American University in Cairo, and the University of the Witwatersrand in South Africa.

She received her undergraduate educatin at University of Pavia, Italy and her Ph.D. from Columbia University. Ottaway's selected Publications include, Democracy Challenged: The Rise of Semi-Authoritarianism (Carnegie, 2003); Funding Virtue: Civil Society Aid and Democracy Promotion, edited with Thomas Carothers (Carnegie, 2000); Africa's New Leaders: Democracy or State Reconstruction? (Carnegie, 1999)

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Marina Ottaway Senior Associate Carnegie Endowment for International Peace
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