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.

Armed only with law textbooks, six Stanford law students and faculty advisor and senior research scholar Erik Jensen landed in Kabul, Afghanistan on Feb. 6 on a mission that would last six days.

The group made up Stanford's Afghanistan Legal Education Project (ALEP), a student-led law school project funded by the U.S. State Department that creates textbooks on Afghanistan's legal system specifically for the instruction of Afghani students.

Stanford students in the Afghanistan Legal Education Project (ALEP) meet with Supreme Court Chief Justice Abdul Salam Azimi during their six-day visit to Kabul. (Courtesy of Daniel Lewis)

Working with the American University of Afghanistan (AUAF), the project is creating a new generation of lawyers to shape Afghanistan's future.

Since it was founded in 2007 by Stanford law alums Alexander Benard J.D. '08 and Eli Sugarman J.D. '09, the project has published four textbooks. These include an introductory text to the laws of Afghanistan and textbooks on commercial, criminal and international law. Students are currently writing a textbook on constitutional law.

"The whole project is indigenously oriented," Jensen said. "The textbooks are written in response to needs and demands of Afghan students, and we try to contextualize our work as much as we can to the politics, economics and social order in Afghanistan."

The purpose of the recent trip to Kabul was to explore the future and progress of the project. Students attended classes that are currently taught using ALEP textbooks, got feedback from Afghani students and professors and interacted with administrators at the AUAF to see where the project is headed.

"Sitting in on the classes and meeting with the students was for us a priority, because that's the best way we can get feedback on our books and make the project better," said Daniel Lewis LAW '12 and ALEP co-executive director.

After meeting with the president of AUAF, the group agreed that the ultimate goal for the project is to build a complete law school curriculum.

"The time frame is uncertain, but we're expanding really quickly," Lewis said.

In addition to rolling out the new textbook, ALEP plans to introduce new classes in the fall on Islamic law and the informal justice system in Afghanistan, taught by a collaborating Afghan professor and an affiliated postdoctoral fellow. Workshops on practical skills such as negotiation and writing are also on the horizon, as well as translations of the books into Dari and Pashto.

The group met other notable Afghan and American officials, including the dean at the Kabul University School of Law, university professors from the most populated provinces and Ambassador Hans Klemm, coordinating director of rule of law and law enforcement at the Embassy of the United States in Kabul.

"All the high officials we met with were extraordinarily supportive of the project," Jensen said.

"We'd gone over there expecting it wouldn't really be easy getting our books out there [past AUAF], or that there would be some hostility," Lewis said. "But that really wasn't the case. The feedback was that they were excited to have another resource that was new and updated."

Other universities are not the only other audiences attracted to the project's textbooks, which are available publicly, and for free, online.

"Over the past year or so, people have been downloading them [the books] and using them, some of which we know about and some of which we don't," said Rose Ehler LAW ‘12, another ALEP co-executive director.

The U.S. military has also used the textbooks to familiarize officers with Afghani law. According to Jensen, retired Gen. Stanley McChrystal was "very familiar" with the textbooks.

The Afghan Ministry of Justice, leading judges and legal academics have also expressed interest in the project, according to Lewis.

"It was fascinating to be [in Kabul] as Stanford law students talking to these really important people in Afghanistan...in a knowledgeable way," Lewis said.

But strengthening the AUAF law school and spreading legal education are only the beginning of ALEP's goals.

"The development of the rule of law is historical process. It takes time; there are fits and starts," Jenson said.

"The problem is when you are at Afghanistan's level of development, it will go through years and years of fits and starts...and as society goes through these episodes, it will need a new cadre of leaders to lead to positive episodes," he added.

ALEP seeks to contribute to the formation of these future leaders, not only in the legal profession but also in the country as a whole. By using analytical methods to teach students critical thinking, they hope to bridge the gap between American style legal education and the Afghan reality.

"They [the Afghan students] will see opportunities that we can't see from Stanford, but they can see on the ground in Afghanistan," Jensen said, describing the project as one that is about imagining alternatives so as to prevent oppression.

The law students' person-to-person contact with the Afghani students made it clear that this project extends far beyond what can be seen on paper.

"The passion that we all saw in the students in Afghanistan just increased our passion for the project at Stanford...the heart and soul of the Stanford group is derived from the heart and soul of the Afghan students."

"Everybody on the trip came away saying, ‘Wow, we're actually doing something that's useful here,'" Lewis said.

The trip left the group optimistic about the project's future.

"Student demand is high; we've been successful at retaining some of the best faculty, and we hope that that the [AUAF] law school becomes a center of educational excellence," Jensen said.

Despite the fact that ALEP is no longer the "sole source" of Afghan law textbooks, Jensen is confident about the books' prospects.

"I look forward to the marketplace of competition...I think our books will show themselves to be the best."

On February 24, the Program on Liberation Technology at the Center on Democracy, Development, and the Rule of Law (CDDRL) hosted a conference entitled Blogs and Bullets: Social Media and the Struggle for Social Change, in partnership with the United States Institute of Peace (USIP) and George Washington University's Institute for Public Diplomacy and Global Communication (GW). This event was a high-impact gathering of scholars, academics, and representatives from the Silicon Valley tech community, to examine a very timely subject--how social media is being used to advance political change in developing democracies.

Participants from Google, Facebook, the Berkman Center for Internet and Society at Harvard, eBay, and YouTube, among others, commented on how recent events in the Arab world have affected their work and the role Web 2.0 tools and mobile phones played to facilitate these citizen-based movements. The Blogs and Bullets research project was launched in 2010 to examine new media through an analytic framework to better understand its impact on contentious politics-whether positive or negative. This event was a rare opportunity to bring both the public and private sectors together to discuss this topic during a daylong closed door session, providing the ideal forum for cross sector collaborations to emerge.

While there was a broad consensus around the effectiveness of social media tools to advance political change, participants were encouraged to look beyond the anecdotal evidence available to employ a more rigorous and methodical approach to impact evaluation. They discussed the challenges involved in studying the affects of social media on contentious politics-from the research design to the scarcity of available data. Many participants used social media throughout the course of the meeting to communicate key findings and discussion points on Twitter and Facebook, opening up the discourse beyond the conference room.

The workshop culminated in a public session that drew over 150 participants eager to learn more from those working on the "frontlines of social media." Panelists included; Marc Lynch from GW, Clay Shirky of New York University (NYU), Olivia Ma of YouTube, Larry Diamond from Stanford University, and was moderated by Sheldon Himelfarb of USIP.

Marc Lynch, Director of Middle East Studies at GW and also know by his pseudonym, Abu Aardvark, for his popular blog on Foreign Policy's website, opened the panel by reflecting on the broader pattern of Arab politics in the 2000s and how surprised the academic community was by the uprising in Egypt, "They (young activists) succeeded at a time when all experts believed we were in a period of authoritarian retrenchment."

Lynch credited previous failed social movements for laying the groundwork for the January 25 revolution, which was catalyzed by the events in neighboring Tunisia. The use of social media had an enormous impact on Arab societies where mainstream media is so heavily censored.  Lynch described the cascading effect of these web 2.0 platforms, which sent video, audio, personal testimonies, and on the ground sources, directly to an international audience. However, Lynch cautioned against crediting just social media, "It is a huge mistake to think this is just about social media, al-Jazeera was absolutely critical."     

Himefarb introduced Olivia Ma, News Manager at YouTube, a Google owned video sharing site, by mentioning a study conducted by the Berkman Center of Harvard University, which found YouTube the most frequented website in the Arabic language blogosphere. YouTube has been an important platform for protestors who are documenting events on the ground across the Arab world and posting video content on YouTube to reach an international audience and raise awareness. This phenomenon is described by Ma as, "The democratization of media because the barrier to broadcasting has dropped allowing everyone the ability to document and bear witness to events".

Ma described a typical day for the news team at YouTube, which involves culling through all the recent video content covering events in any corner of the world to identify the trends, buzzing topics, and "hot videos." Popular videos are often identified by searching through Facebook and Twitter to identify those that are most often shared or 'liked' by users, something Ma identified as the "complex eco-system between all the social networks." While, many of the protest videos are quite graphic in nature, YouTube has classified these videos for educational and documentary purposes, allowing them to keep as much content on the site as possible.

Clay Shirky, Professor of New Media at NYU, provided an historic account of how IT has been used by both insurgents and autocrats in each revolution since the fall of communism. Shirky explained that, "New media tools have been powerful for insurgent movements but they must be built on a need for larger change in the public sphere. (Clay Shirky)New media tools have been powerful for insurgent movements but they must be built on a need for larger change in the public sphere."

Shirky believes the Egyptian revolution was successful because it was built on the foundation and learning from prior movements in Egypt, beginning with Kefaya in 2005, to the April 6 movement in 2008, and most recently with Iran's Green Movement.

Failed uprising have occurred in places, such as Sudan, because there were no established networks of trust and shallow social capital. Shirky described the power of social media to shift mindsets by drawing on a domestic example-in 2006 the American public would not have believed it was possible to elect an African American president until an Obama speech was broadcast on YouTube, outside of the mainstream media, changing the public's perception.

CDDRL Director Larry Diamond who oversees the Program on Liberation Technology, reflected on the first time he met young Egyptian bloggers and leaders of the youth movement, "The energy and freshness of the perspectives along with the agenda and content discussed amongst these young people was striking to the point of disarming." Diamond described the Egyptian youth movement and events in Tahrir Square as possessing a "Jeffersonian quality of the value of the individual and suspicion of authority."

Diamond emphasized the importance of the window onto the world that the Internet provides, which propels the individual from a passive observer to an active contributor. While, Diamond recognized the importance of ICT he also cited its limitations, "It (ICT) will bring down an authoritarian regime but not everyone can build political parties." Diamond continued by suggesting that ICT's are useful tools for emerging political parties to widen the arena for constitutional deliberation, set new rules of the game, and create a "freer and fairer deliberation space."

Surveying cyberspace that evening, it was exciting to follow all the discussion and dialogue across the various social media platforms describing the impact and value of this event in advancing ideas and partnerships. While, Blogs and Bullets was pivotal in moving the research agenda forward, it was clear that the story does not end here. More work needs to be done to collectively examine the impact of this emerging field beyond what we read in our daily Twitter feed.

To learn more about the USIP Blogs and Bullets initiation, please click here

To learn more about the CDDRL Program on Liberation Technology, please click here

The Program on Arab Reform and Democracy at the Center on Democracy, Development, and the Rule of Law (CDDRL) at Stanford University, the Safadi Foundation USA (SFUSA), and the Center on International Private Enterprise (CIPE), announce an open call for papers on behalf of the Safadi-Stanford Initiative for Policy Innovation (SSIPI).

SSIPI seeks policy-focused papers that provide clear and concise recommendations to the Lebanese authorities, the international donor community, and other regional groups. The objective of SSIPI is to promote new analysis on Lebanon. Qualified applicants have the academic freedom to choose a paper topic of their choice within the realm of economic development and entrepreneurship. Papers should include recommendations that address the linkages between economic development and institution building, security and civil peace, and other governance related issues. In addition, papers should reflect a deep understanding of the role of institutions and whether accelerated, more balanced economic growth, social and fiscal reforms, a particular process of economic development or new developing areas of entrepreneurialism, if any, could help in reducing the negative influences posed by confessionalism in the economy. 

Abstracts should be submitted according to the guidelines below. Upon review of the abstracts by an independent reviewing committee, a select group of scholars will be chosen to submit their full paper and compete for the title of Safadi scholar of the Year. SSIPI will offer the Safadi Scholar of the Year the opportunity to develop a piece of research at CDDRL, led by Larry Diamond, as well as meet with strategic policy makers in Washington, DC. In addition, the scholar will have the chance to present their research at a policy conference in Washington, DC.

Requirements:

Deadline for one-page abstracts is March 31, 2011. Abstracts should be emailed to SSIPI.2011.Submissions@gmail.com.  Please note "Abstract Submission" in subject of email. The selection committee warrants applicants from academia, the public and private sectors, and NGOs, either from Lebanon or abroad, who are working on economic development and entrepreneurship in Lebanon. Qualified candidates should hold a graduate degree from an accredited university.  For more info please visit: Safadi-Stanford Initiative for Policy Innovation

On February 22, Professor Alison Renteln of the University of Southern California spoke during the seventh installment of the Sanela Diana Jenkins Speaker Series hosted by the Program on Human Rights at the Stanford Center on Democracy, Development, and the Rule of Law. During her lecture entitled, "The Right to Culture as a Human Right: Law in a Multicultural World," Renteln challenged the universality of human rights, a claim previously debated by prior series' speakers.

Assessing the "monocultural paradigm of human rights," Renteln argued in favor of what she termed the human right to practice and enjoy one's culture. She maintained that legal systems must protect this fundamental human right by allowing defendants to employ a "cultural defense" and to voice relevant cultural motivations during court proceedings. She cited three main instances in which such a cultural defense has been used: to lessen the sentence in criminal cases, to be granted exemption from a policy, or to receive additional compensation when an abuse disproportionately affects a person because of cultural considerations.

Renteln presented recent court cases in both Canada and the United States brought against members of the Sikh faith. A central tenet of the Sikh faith is to wear the kirpan, a dagger that must constantly be carried on the person of all Sikhs. Renteln contested that in these cases, the courts must respect the cultural meaning of the kirpan, symbol of non-violence or ahimsa, and grant Sikhs the right to uphold their cultural tradition. With this example, Renteln demonstrated how courts must "make room for culture" in the evidence presented during the case.

Renteln concluded with a discussion on the hierarchy of cultural rights and other forms of human rights. For example, she questioned whether the Amish's right to practice their culture superseded the right of all Amish children to be educated. In her consideration of more questionable and often heatedly debated practices, she proposed that no cultural practice that inflicts "irreparable harm" on individuals should be allowed or supported. However, she admitted that defining practices which violate this standard can often be difficult.

A group of leading American and Japanese venture capitalists, entrepreneurs, academic experts, government officials, and leaders in business and related fields joined the "U.S. - Japan Dialogue to Promote Innovation, Entrepreneurship and Job Creation" symposium, organized by the Stanford Project on Japanese Entrepreneurship (STAJE), the largest U.S.-Japan event held at Stanford in many years, on February 23, 2011.

Representatives from both governments opened the event by underscoring the economic and strategic reasons for closer U.S.-Japan cooperation in promoting innovation and entrepreneurship. U.S. Ambassador to Japan John V. Roos emphasized how an economically vibrant Japan is critical to the security of the United States, and how it creates opportunities for U.S. trade, investment, and job creation. Moreover, innovation and collaboration are vital to addressing critical global issues, such as climate change. Under Secretary of State Robert D. Hormats noted how innovation and entrepreneurship, often involving young firms bringing new technology to market, are fundamental to ensuring sustainable growth and inclusive prosperity, both at home and across the globe. For Japan, Teruhiko Mashiko, a Ranking Member of the Diet's Committee on Economy and Industry and a former Senior Vice Minister of Economy, Trade, and Industry, highlighted the potential for greater employment, development of green technology, and the circulation of human and other resources through innovation and entrepreneurship.

Several speakers pointed to ways government and the private sector can foster the creation of entrepreneurial ventures with a global outlook. Professor William F. Miller, co-director of the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE), focused attention on the need to support the full entrepreneurial habitat—including an active angel investor and venture community, entrepreneurial education, passionate entrepreneurs, and business services (legal, consulting, financial) that understand the needs of start-up companies. Additionally, several speakers suggested that mid-career hiring by large Japanese firms and greater willingness on their part to grow by acquisition would increase labor mobility and expand opportunities for entrepreneurial ventures. They expressed concern that, at present, a public offering of shares is practically the only option for startup firms to exit the venture stage in Japan. Others highlighted how greater English-language proficiency and changes in immigration law could expand the linkages between Japan and the global community of entrepreneurs and venture capitalists.

Larry W. Sonsini, Chairman of Wilson Sonsini Goodrich & Rosati, reflected on the waves of innovation that Silicon Valley has generated, both in terms of new technologies coming to market as well as the maturing of technology already out. Defining Silicon Valley as a culture rather than a place, he outlined the ingredients in the recipe for its success: an entrepreneurial culture, with such features as mobility of talent, diversity, and acceptance of failure as a type of learning; ready access to capital; sources of technology and technologists, particularly from universities and large forward-looking corporations; government support; developed laws and accounting systems; availability of exit options for ventures; and an infrastructure of lawyers, accountants, bankers, and consultants. He also offered his thoughts on key trends that will influence the position and direction of emerging technology companies, including: globalization, regulatory changes, development of capital markets, education, and the rule of law.

In the closing remarks of the day-long symposium, Robert Eberhart, a SPRIE researcher and the leader of the SPRIE-STAJE project, summarized the three potential roles for governments to play in promoting innovation and entrepreneurship: to establish rules to ensure fair dealing and access to the market; to rewrite (i.e., reform) the rules of a market thereby ensuring firms will address it in new ways; and to stimulate demand for advanced technology by purchasing it for its own reasons, thereby creating new opportunities for entrepreneurial technology ventures.

The American version of capitalism is no longer dominant around the world, writes FSI's Francis Fukuyama, the Olivier Nomellini Senior Fellow resident at the Center on Democracy, Development, and the Rule of Law, and Nancy Birdsall, President of the Center for Global Development, in the March/April issue of Foreign Affairs. In the next decade, they say, developing countries are likely to continue to trade the flexibility and efficiency associated with the free-market model for domestic policies meant to ensure greater resilience in the face of competitive pressures and global economic trauma.