Institutions and Organizations
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We provide a simple framework relating cultural distance, genetic distance and differences in income per capita. We estimate the model empirically by regressing current income differences between pairs of countries on measures of geographical and genetic distance ("coancestor coefficients"). We find a significant effect of genetic distance on income differences, while geographical distance (i.e., geodesic distance between major cities) is negative and insignificant when genetic distance is controlled for. Differences in latitude across countries help explain income differences even when genetic distance is controlled for, which is consistent with Jared Diamond's hypothesis regarding a Eurasian advantage in development. We uncover similar patterns of coefficients for differences in human capital, institutions, population growth, and investment rates. Finally, we estimate the structural effects of differences in institutions, human capital, population growth, and investment rates on differences in income per capita using our set of geographic and genetic distances as instruments. Overall, our findings support the view that environmental and cultural barriers play an important role in the diffusion of innovations and development across countries.

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CDDRL Working Papers
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Proponents of foreign-led state building or shared sovereignty arrangements have exaggerated the ability of powerful states to foster institutions in developing countries. The empirical record, from successful outcomes in Germany and Japan to dismal failures across the global South, shows foreign forces are heavily constrained by antecedent local capacity. The societies alleged to be most in need of strong institutions have proven the least tractable for foreign administration. Rather than transmitting new modes of organization, would-be state builders have relied upon existing structures for governance. This dependence on the very context that was intended for change shows that foreign state builders wield very little infrastructural power. They are consistently unable to implement political decisions through the subject population. Contrary to recent arguments that sustained effort and area expertise can enable success, external state building has foundered despite such investments. Understanding why foreign-led state building continues to fail is crucial for redirecting intervention where it can be more effective. Advocates of humanitarian assistance should consider the merits of smaller, regenerative projects that can respond better to uncertainty and avoid the perils of large-scale political engineering.

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CDDRL Working Papers
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Jason M. Brownlee
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On May 18 a roundtable organized jointly by CDDRL and CREEES and chaired by SIIS Senior Fellow Gail W. Lapidus brought together visiting scholars Temuri Yakobashvili from Georgia, Volodymyr Kulyk from Ukraine, Uladzimir Rouda from Belarus, and Wall Street Journal reporter Steve LeVine to examine the dramatic wave of democratic revolutions and protest movements which have transformed the geopolitics of the post-Soviet region over the past 2 years.

The participants argued that although the "Rose Revolution"in Georgia in October 2003, the Ukrainian "Orange Revolution" of November-December 2004, and the more recent regime change in Kyrgyzstan were all precipitated by popular protest against fraudulent elections, they expressed a deeper dissatisfaction with the widespread corruption and failures of the three governments, combined with the emergence of an increasingly mature and organized political opposition. While international organizations and actors played a supportive role in delegitimizing electoral fraud and nurturing civil society, domestic factors were the decisive ones in bringing about peaceful regime change.

The panelists also concurred that the "easy"revolts were now over. They predicted that future upheavals in the region were inevitable, but were far less likely to go smoothly. In Belarus, although popular hostility to a tyrannical political regime is growing, inspired by the successful example of neighboring Ukraine and the attraction of Europe, the absence of a united and organized opposition remains a major barrier. In Uzbekistan, the repressive regime of President Karimov has demonstrated its willingness to resort to violence to put down opposition, and to forestall international criticism by stigmatizing opponents as Islamist terrorists.

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In the coming years, few if any countries will more preoccupy the foreign policy attention of the United States than Iran. The United States has long lacked a viable and coherent policy toward Iran. Perhaps for the first time since the fall of the Shah's regime in 1979, the United States seems determined to try to forge one. The United States must move swiftly to chart a bold, new course that addresses all three of America's principal national interests with Iran. Our policy should seek to halt the development of an Iranian nuclear bomb, to end the regime's support of terrorist groups, and to help the democratic movement in Iran. Each of these goals is vital, but they are also intertwined. Compared to autocracies, democracies are more transparent about their foreign policy intentions and their military capabilities. Only when we have a government in Iran that is truly accountable to its people and to the rule of law will we be able to achieve a permanent and verifiable halt to that country's pursuit of nuclear weapons and its support of international terrorism.

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Hoover Institution Press
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Michael A. McFaul
Larry Diamond
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Among the different types of capital resources, venture capital as practiced in Silicon Valley is broadly acknowledged as being an important constituent of a high technology, entrepreneurial habitat. In the past two decades, policy makers from different regions have learned much from its experience.

The IT industry attributes its success partly to venture capital investments in early, risky, stages. Looking ahead, other industries will emerge in the knowledge economy. Within Taiwan and Mainland China, information related industries still dominate investment, yet in Silicon Valley emerging industries including biotechnology, medical instruments and nanotechnology have recently been attracting as much venture capital as the IT industry.

Today, venture capitalists from Silicon Valley and Taiwan are probing what they perceive as growing investment opportunities in Mainland China, On the other hand, the immaturity of its private equity market and the undeveloped state of exit mechanisms there is causing venture capitalists to hesitate to made large investments. Currently, Taiwan's venture capital faces low price-earnings ratios in its 1,400 publicly listed companies. This has contributed to a decline in VC investment. The Taiwan government expects to further liberalize the financing environment to bolster it as a regional center for domestic and international corporations.

This conference will address the influence of the system of capital on regional innovation and entrepreneurship in the United States, Taiwan, and Mainland China. The focus will be on the venture capital industry, corporate venturing and other institutions of capital related to regional industrial development.

Here are some questions to be addressed in this conference:

  • What is the pattern of venture capital investing in high-tech start-ups in the Greater China Area?
  • What are the trends in this industry?
  • How, specifically, does venture capital promote innovation and entrepreneurship?
  • What are the similarities among independent venture capital funds, corporate venture funds, angel funds, and commercial bank involvements?

Conference Organization

Conference Chairman

  • Dr. Chintay Shih, Dean of College of Technology Management, National Tsing Hua University, and Special Advisor, Industrial Technology Research Institute

Co-chairmen

  • Dr. Paul Wang, Chairman, Taiwan Venture Capital Association
  • Dr. Henry Rowen, Co-director, SPRIE
  • Dr. William Miller, Co-director, SPRIE

Executive Director

  • Dr. Sean Wang, Director General of Industrial Economics and Knowledge Center in Industrial Technology Research Institute

Conference Secretariat

  • Industrial Economics and Knowledge Center, Industrial Technology Research Institute (IEK/ITRI)

Conference Organizing Secretariat

  • ITRI: Yi-Ling Wei, Peter Lai, Frank Lin, Shu-Chen Huang
  • TVCA: Teresa Yang, Michael Chen, Riva Su
  • SPRIE: Marguerite Gong Hancock (Stanford)/Martin Kenney (UC Davis)

Auditorium, The Grand Hotel,
1 Chung Shan N. Road, Sec. 4, Taipei, Taiwan

Conferences
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Scott Horton is a leading authority on international law regarding torture. He led an American Bar Association investigation into standards of treatment for detainees which was published in April 2004. He was a consultant for those representing Guantanamo Bay detainees, advising them on the legal implications of officially sanctioned torture. He contributed to the recent book, "The Torture Papers: the Road to Abu Ghraib."

An attorney and human rights defender, Scott represented Andrei Sakharov, Elena Bonner and other leaders of the human rights movement in the formerly communist world for more than twenty years. He is a member of the Council on Foreign Relations and an advisor to its Center on Preventive Action, the president of the International League for Human Rights, chair of the New York City Bar's Committee on International Law, and an adjunct professor at Columbia University Law School. He has appeared as a commentator on international law issues on BBC's Panorama, ABC's 20/20 and Nightline, the CBS Evening News, NBC Dateline, CNN's Paula Zahn Show, PBS's NOW with Bill Moyers and as a frequent guest on the Newshour with Jim Lehrer.

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Scott Horton Partner Patterson, Belknap, Webb & Tyler.
Conferences
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Eugene Mazo is a post-doctoral fellow and research scholar at CDDRL, a John M. Olin fellow in law and economics at Stanford Law School, and a fellow of the Stanford Center on Conflict and Negotiation (SCCN). Educated as both a lawyer and a political scientist, he specializes in the fields of law and democracy, law and development, and law and globalization. His work has appeared in scholarly journals and in popular media outlets such as the International Herald Tribune, the San Jose Mercury News, and the Washington Post.

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Eugene Mazo Post Doctoral Fellow CDDRL
Seminars
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Professor Mark Granovetter, Chair of the Department of Sociology at Stanford University will speak on his current research on corruption within the context of his project on the social construction of economic institutions, to be published by Harvard University Press.

Granovetter received his PhD in Sociology from Harvard University and his A.B from Princeton University. He joined the faculty at Stanford in 1995, after being a member of the faculty at Northwestern University. In 1996 he received a Doctor of Philosophy honoris causa, from Stockholm University; he has been elected to the Johns Hopkins University Society of Scholars. He is a leading scholar in the area of economic sociology.

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Mark Granovetter Joan Butler Ford Professor and Dept. Chair, Dept. of Sociology Stanford University
Seminars
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Dr. Hilton Root, an academic and policy specialist in international political economy and development joined the Faculty of Pitzer, a member of Claremont Colleges, as Freeman Fellow from June 2003 to June 2005. Before joining, he served the current administration as US Executive Director Designate of the Asian Development Bank, and as senior advisor on development finance to the Department of the Treasury. Dr. Root was Director and Senior Fellow of Global Studies at the Milken Institute and was a Senior Research Fellow and Director of the Initiative on Economic Growth and Democracy at the Hoover Institution. His areas of expertise are international economics, economic development and policy reform, and Asian affairs.

As a policy expert, Dr. Root advises the Asian Development Bank, the IMF, the World Bank, the UNDP, the OECD, the US State Department, the US Treasury Department and USAID. He has completed projects in 23 countries. The analytical framework he contributed to the World Bank's Asian Miracle study, 1993, was part of the effort to put institutions on the development agenda. While at the ADB as chief advisor on governance, he was the principal author of the ADB's Board-approved governance policy. He presided over a committee on governance indicators at the OECD and initiated the restructuring of the Sri Lanka civil service as an advisor to President Chandrika Bandaranaike Kumaratunga. He was one of the principal contributors to the design of the Millenium Challenge Account of the Bush administration.

As an academic, he has taught at the University of Michigan, California Institute of Technology, the University of Pennsylvania and Stanford University. Dr. Root has written and lectured extensively, publishing six books and more than 100 articles. He is a frequent contributor to the Wall Street Journal Asia, the International Herald Tribune, Los Angeles Times and the Washington Post. He has published and presented in both the English and the French languages and has been translated into many languages including Chinese, Korean and Japanese.

He has been awarded honors for The Key to the East Asian Miracle: Making Shared Growth Credible (with J. Edgardo Campos), which won the 1997 Charles H. Levine Award for best book of the year by the International Political Science Association. The Social Sciences History Association awarded him the 1995 best book prize of its Economic History Section for The Fountain of Privilege: Political Foundations of Markets in Old Regime France and England. From the American Historical Association he received the Chester Higby Prize, 1986, for the best article among those published during the previous two years. He is on the board of a number of organizations and journals including the Open Society Institute, Center for Public Integrity and Review of Pacific Basin Markets and Policies. Dr. Root received his doctorate from the University of Michigan in 1983.

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Hilton Root Professor or Economics Claremont Colleges, Claremont, CA
Seminars
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Avner Greif, noted Stanford Economic historian, will speak on his current research. Avner Greif received his Ph.D. from Northwestern University and his B.A. from Tel Aviv University. His research interests include European economic history, the historical development of economic institutions, their interrelations with political, social and cultural factors and their impact on economic growth. His current research focuses on institutional development and economic growth in pre-modern Europe, as well as coercion and markets.

Greif's recent publications include "A Theory of Endogenous Institutional Change," (with David Laitin) American Political Science Review, 2004; "Cultural Beliefs and the Organization of Society: Historical and Theoretical Reflection on Collectivist and Individualist Societies," The Journal of Political Economy, (October 1994); and "Coordination, Commitment and Enforcement: The Case of the Merchant Gild" (with Paul Milgrom and Barry Weingast), The Journal of Political Economy, (August 1994).

Avner Greif is a faculty associate at CDDRL.

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Department of Economics
Stanford University
Stanford, CA 94305-6072

(650) 725-8936 (650) 725-5702
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Senior Fellow at the Freeman Spogli Institute, Emeritus
Bowman Family Endowed Professor in the Humanities and Sciences
avner_greif.jpg PhD

Avner Greif is Professor of Economics and Bowman Family Endowed Professor in Humanities and Sciences at Stanford. His research interests include European economic history: the historical development of economic institutions, their interrelations with political, social and cultural factors and their impact on economic growth. Some of his publications are: Institutions and the Path to the Modern Economy: Lessons from Medieval Trade, Cambridge University Press (March 2006); Impersonal Exchange without Impartial Law: The Community Responsibility System, Chicago Journal of International Law (2004); How Do Self-enforcing Institutions Endogenously Change? Institutional Reinforcement and Quasi-Parameters (with David Laitin), the American Political Science Review (2003); Analytic Narratives, Oxford University Press, 1998. Avner Greif received his Ph. D. in economics from Northwestern University, and his B.A. in economics and history - from Tel Aviv University.

Affiliated faculty at the Center on Democracy, Development, and the Rule of Law
Avner Greif The Bowman Family Endowed Professor in Humanities and Sciences and Professor, by courtesy of History, and Senior Fellow, by courtesy at SIEPR Speaker
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