10,000 Shovels: China's Urbanization and Economic Development
Return to Southeast Asia, Lame Duck President Finding a Quiet Pond
The 14th Informal APEC Economic Leaders' Meeting concluded on Nov. 19, 2006, and the participants had their photo taken in colorful Vietnamese traditional costumes called ao dai. Still in the shadow of the congressional election failure, President George W. Bush, realizing that a stable Asia is very important for the U.S. geostrategy, took advantage of the occasion to enhance the prestige of the United States. Just as American experts said, the Bush administration has probably become a lame duck now, but even a healthy duck needs to find a quiet pond.
"APEC's uniquely trans-Pacific character is an important political reason for U.S. to strengthen the group," Donald Emmerson, director of the Southeast Asia Forum of Shorenstein APARC at Stanford University, explained. "While APEC has lagged, East Asian regionalism has boomed. That has been good for East Asia. But U.S. and East Asian interests alike could be hurt if the Pacific Ocean ends up being split between rival Chinese and American spheres of influence."
However, the U.S. effort to save the Doha Round of trade talks with the Asia-Pacific Free Trade Agreement has yielded little. The Doha Round aimed to remove trade barriers in the world but was suspended due to some countries' agriculture protection policies. Washington had wanted to model the Doha Round upon the Asia-Pacific Free Trade Agreement. But U.S. officials never expected that there would be so many differences among the Asia-Pacific leaders, and that the economic development of Pacific Rim countries differ in thousands of ways. Despite the fact that the Hanoi Statement reiterated that supporting the Doha Round was APEC's priority, no material progress has been made.
"The U.S. is urging a last ditch effort to restart the talks through APEC," Professor Charles Morrison, president of the East-West Center located in Hawaii, says. "Whether or not APEC can do more than make a rhetorical statement of support is unsure. I feel that the APEC economies should agree to prepare new offers within a short period of time -- three weeks, for example -- to challenge the Europeans, Brazilians, Indians and others."
United States Steps Out to "Please" ASEAN
Seventeen years after its establishment, APEC now plays a decisive role in the international political arena. It has 40 percent of the world's population, 48 percent of the world trade volume and 56 percent of the world GDP. Since 1989, the economy in this region has grown by 26 percent, compared to only 8 percent economic growth rate in the rest of the world. With the double advantage of economic strength and rapid growth, China, being one of APEC's main economies and its "engine," has fully taken the limelight. On the other hand, the United States has been weighed down with countering terrorism in the Middle East.
"China has done very well in enhancing its relations with Southeast Asia in recent years," Sheldon Simon, professor of the Program in Southeast Asian Studies at Arizona State University, points out. "China has not only established a free trade forum for China and ASEAN countries, but also helped and influenced the area with its economy and culture. But I think that the United States has realized the importance of this area and come back to fasten its friendly relationship with the region."
The United States coming back to Southeast Asia and repairing its relations with the ASEAN countries is partly activated by China's increasing influence in the area.
"The naissance and growth of some democratic countries in Southeast Asia has received sympathetic response of democratic values from Washington," said Simon. "With the traditional friendly relations between the area and the United States, these countries value their friendship with the United States sometimes more than the trust in their neighboring countries. Geopolitics is also very important factor. The Asia-Pacific area is a very important to the world economy and the U.S. power structure. Therefore, the United States will not easily give it up."
Another motive for the United States to foster closer relations in the area is the common interest of countering terrorism. There are still some terrorist groups in Indonesia, the Philippines and southern Thailand.
"President Bush has a perfect attendance record at APEC meetings (Clinton missed two of them), which says that he does take APEC seriously and believes Asia is important to U.S. interests," Ralph Cossa, president of the Pacific Forum Center for Strategic and International Studies, said in an interview with the Washington Observer Weekly.
Besides attending the APEC summit meetings annually, Washington has recently activated several plans to "please" the ASEAN countries, including setting up a ministerial dialogue system with them and a platform for maintaining contact at the deputy finance minister level, even increased exchanges at the deputy defense secretary level.
The extent of U.S. efforts to foster cordial relations with Southeast Asian countries can also be seen in the increasingly friendly U.S.-Vietnamese economic and trade relations. The Bush administration is not only supporting Vietnam to enter the WTO, but has even proposed giving Vietnam Permanent Normal Trade Relations (PNTR) status.
"The reason that Bush failed to bring the gift of PNTR status to the APEC Hanoi summit is that the Congress dominated by the Republicans was lacking efficiency and could not pass the proposal in time," Simon explained. "But I think that it will be passed as soon as possible in the next month or by the Democrats who begin to dominate the Congress from next January."
Simon and Cossa both admit that Burma is an unharmonious element in U.S. relations with ASEAN. The Burmese dictatorial military government is really the most typical negative example of democracy for the United States. But ASEAN countries are reluctant to see Burma "punished" by the United States for ideological reasons. So Burma has become a sensitive issue in U.S.-ASEAN relations.
"This is a good way for him to interact with ASEAN since Myanmar is not there and this issue does not have to be addressed," said Cossa.
Simon, an expert of Southeast Asia affairs, points out ASEAN countries should be happy about the advantage they have with China and the United States vying for their attention. Being able to juggle the two big powers, Southeast Asia has gained many practical interests and financial aid for its economy, trade, security, culture and education.
"In a short period, there will not be any serious interest conflicts in the triangle balance of China, the United States and ASEAN," Simon told the Washington Observer Weekly. "ASEAN countries' only worry, if there is any, is an accidental spark in the U.S.-China military interaction in Southeast Asia such as the confrontation across the Taiwan Straits."
Turning the Asia-Pacific into a "Gigantic Enterprise?"
"The United States wants to demonstrate its continuing interest in the Asia-Pacific region. It is urging for a study of an Asia Pacific free trade area and support for an APEC business card, and both shifts of approach, illustrate its interest in and support for the APEC process," said Morrison.
An important subject for the APEC Hanoi summit is the "active discussion" of establishing an APEC free trade region. Former U.S. President Bill Clinton proposed for the first time in 1993 the setting up of such an economic zone. Before Bush's visit, Deputy U.S. Trade Representative Karan Bhatia suggested that establishing an APEC free trade zone would be a subject worth serious discussion. But his proposal did not receive a warm response from the host. The Vietnamese Deputy Foreign Minister Le Cong Phung stressed that establishing a free trade zone is a long-term objective and will not affect progress of negotiations with the WTO or other bilateral trade agreements.
"Regarding the study of the Asia Pacific free trade area, a number of economies were skeptical because it would be such a large undertaking," said Morrison. A similar plan was once axed in an APEC ministerial statement and the leaders attending this summit do not seem to have much interest in it.
Simon explained Bush's thinking on the subject: "Washington reiterated its intention to establish an Asia-Pacific free trade zone in order to save the precarious WTO Doha Round. Breaking the tariff barriers in the Asia-Pacific region will help continue to press relevant countries to concede in granting agricultural tax subsidies and hopefully open the door to the Doha Round."
The five-year Doha Round was suspended in July this year because six major WTO members -- the United States, the European Union, Japan, Australia, Brazil and India -- failed to reach agreement on market access for agricultural and non-agricultural products. Given the situation, the organizer said that the informal APEC economic leaders' meeting would provide a "good opportunity" to help restore the Doha Round talks. However, the Hanoi summit joint declaration just vaguely indicated that APEC will pursue further integration on issues such as energy in 2007. It would be extremely optimistic to expect that APEC will be able to remove all the tariff barriers in the region before 2010. Although the area produces 50 percent of the world's economic value, the styles and stages of economic development, the cultural backgrounds and political systems of the countries in the region vary a great deal, making it very difficult for these Asian countries to eliminate all these discrepancies and become fully integrated.
"Out of different worries, many Southeast Asian countries are actually not interested in the proposal though they do not speak out. Or we may say that it's not time yet now to change the Asia-Pacific region into a gigantic enterprise," Simon told Washington Observer Weekly.
Quite apart from who concedes what in return for what concession over the APEC free trade mechanism, the question arises: What geographical scope should a regional trade arrangement have? Who should be a party to the agreement and who should not?
There would appear to be three different ideas on the table: (a) the APEC-wide free trade area that the United States proposed at the recent summit in Hanoi; (b) the East Asia Summit-wide framework that Japan reportedly favors, which would include ASEAN + 6 (China, Japan, South Korea, India, New Zealand, Australia) but not the United States; and (c) the ASEAN Plus Three (China, Japan, South Korea) context that China seems to prefer, in which the exact positions of Tokyo and Beijing are not entirely clear.
"Without discussing the merits or demerits of each of these arrangements, suffice it to note that since ASEAN is common to all of them, the net effect of these alternative ideas is to strengthen the negotiating position of ASEAN," said Emmerson. "Then again, ASEAN will not necessarily be unified as to its preference for the three proposals. It will be interesting to look for the positions to be taken by individual ASEAN countries and for their collective effort to arrive at a single negotiating position, e.g., in the run-up to the ASEAN summit and the second the East Asia Summit in the Philippines next month."
Cossa has hope for 2007. "The U.S. in particular would like to see APEC moving faster, and will look ahead to next year, with Australia in the chair, for some real progress."
American Public Doesn't Share Washington's Interest in Southeast Asia
The prospect of economic and strategic cooperation brought about by APEC made for a lively week in Southeast Asia. But it stirred little response in the United States. According to the interviewed experts of Southeast affairs, the American public is still haunted by the situation in Iraq and the mid-term election. Even the U.S. media framed the event as Bush's first visit to a foreign country since the Republicans were defeated in the mid-term election.
"Because of the Congressional election, President Bush will want to show leadership rather than simply respond to the new Congress. Both Doha and the nuclear proliferation issue are examples," said Morrison.
Cossa holds a different view: "I don't think the elections will have any major impact on what Bush does or how he does it during this trip. Iraq is his legacy. What he does in Asia can make things better or worse at the margins but will likely be overshadowed by Iraq."
Simon echoed the sentiment. "On one hand, the Republican Party's defeat in the election cannot directly influence Bush's trip to Asia. On the other hand, Bush's economic achievements in the Southeast region will not add to his political record. In Asia, only the North Korea issue may sway the public opinion in the United States."
Yan Li, Washington Observer weekly - Issue No. 201, November 22, 2006
Reprinted by Permission February 12, 2007.
Japan and East Asia: Building a Community with Diverging Interests
Prior to joining the Japan Center for International Exchange as a senior fellow, Hitoshi Tanaka was deputy minister for foreign affairs of Japan where he was the architect of Prime Minister Koizumi's North Korea policy. Tanaka was also instrumental in arranging the Prime Minister's visit to Pyongyang in 2002.
Mr. Tanaka's career has been spent in public service, working in both government and now in academia. His government service includes serving as director-general of both the Asian and Oceanian Affairs Bureau from 2001 to 2002 and the Economic Affairs Bureau from 2000 to 2001. Tanaka served as consul-general in San Francisco from 1998 to 2000.
Before being posted to San Francisco, he served in Washington, D.C. as the deputy director general of the North American Affairs Bureau and in London at the Japanese Embassy where he was the director for policy coordination of the Foreign Policy Bureau and a research associate at the IISS. He has been a visiting professor at the Graduate School of Public Policy, University of Tokyo, since April 2006.
He has a B.A. in law from Kyoto University and B.A./M.A. in PPE from Oxford University. Mr. Tanaka has contributed many articles to publications including GAIKO Forum, Bungei Shunju, Gendai, and various newspapers. His latest publication is Kokka to gaiko [The Nation and Diplomacy] (2005).
Daniel and Nancy Okimoto Conference Room
Global Entrepreneurship: Stanford Trailblazers in China
Up-and-coming Stanford entrepreneurs must think and act globally. Critical resources, markets and opportunities are around the world, including the dynamic hotbed of China. Come meet trailblazers breaking ground in China. Hear how they got started, challenges they are wrestling with right now, their outlook for entrepreneurs in China, and their best advice. Then, take the opportunity to meet in break out groups with each leader for informal discussion, followed by a Chinese appetizers and networking.
This event, co-sponsored by the Asia-Pacific Student Entrepreneurship Society (ASES), is open to students, the Stanford community and the general public and is part of Entrepreneurship Week at Stanford University. Full details on panelists are below.
Throughout the week of February 24 - March 3, communities around the country will be celebrating EntrepreneurshipWeek USA, as designated by the U.S. House of Representatives, and Stanford will be no exception. In fact, the national organizers will be launching the national program from Stanford on February 24 during the opening ceremony. The theme of the week is "What is Your Big Idea?"
Stanford University has big plans for the week. Events hosted by entrepreneurship groups across campus will enable you to network with entrepreneurial students, venture capitalists (VCs), entrepreneurs and others; hear thought leaders, and share stimulating ideas. All events are free and most are open to the public.
You can see the entire Entrepreneurship Week agenda at eweek.stanford.edu, including information about the Innovation Challenge for student teams.
Featured panelists for "Global Entrepreneurship: Stanford Trailblazers in China":
- Jack Hong: Principal and Founder of SN38, an incubation fund focusing on social-networking startups in China and the US. Prior to SN38, Hong was VP of Information Technologies at SINA Corporation (NASDAQ:SINA), heading SINA's enterprise IS infrastructure development in Beijing. Hong co-founded the Chinese-language portal SINANET.com in 1995 with fellow students while a PhD candidate at Stanford, and held the title of CTO until it merged with Beijing SRS International to form SINA in 1999.
- Derek Ling: A serial entrepreneur with strong corporate background focused primarily in the IT and Internet industries. Ling is the founder and CEO of Tianji.com, the leading social networking service for professionals in China. Prior to starting up Tianji.com, Ling held senior management positions at Motorola, Apple Computer (Director of Business Development for Greater China) and SINA.com (Vice President); in 1999 he co-founded the Beijing-based startup Qzone.com, a youth entertainment community in China revolving around homepage and music.
- Min Zhu: Co-Founder of WebEx Communications, Inc., a NASDAQ-listed company with 2006 revenues over $400 million; after co-founding the company in 1996 he served as President and CTO before being named "Chief WebEx" in 2004; Zhu is a Venture Partner in New Enterprise Associates (NEA), a leading venture capital firm. He serves on a number of Silicon Valley boards and is an advisor for the San Jose Municipal Government. In 2005 he founded Cybernaut, a Hangzhou-based company that aims to create a platform to support real-time multimedia communication applications and services.
Bechtel Conference Center
A Parsimonious Critique of Some Elegant Theories of Democratization: Reading Acemoglu & Robinson from Singapore and Beyond
David Yang is a pre-doctoral fellow in CDDRL's Democracy in Taiwan program. He is finishing a cross-country comparative study entitled The Social Basis of the Third Wave: Class, Development, and the Making of the Democratic State in East Asia. He looks in particular at late authoritarian Taiwan and contemporary Singapore. Mr. Yang is interested in the social basis of pro-democratic opposition movements and the political implications of various developmental strategies - corporatist versus pluralist, for example. Before entering the doctoral program at Princeton, David Yang completed an MBA in Economics and International Business at NYU, and a B.Sc. in Computer Science at Brown.
Encina Ground Floor Conference Room
David D. Yang
N/A
David is our inaugural, and hopefully annual, fellow in CDDRL's new Democracy in Taiwan program. He is finishing a cross-country comparative study entitled The Social Basis of the Third Wave: Class, Development, and the Making of the Democratic State in East Asia. He looks in particular at late authoritarian Taiwan and contemporary Singapore. David is interested in the social basis of pro-democratic opposition movements and the political implications of various developmental strategies - corporatist versus pluralist, for example. David has been advised on his thesis by Lynne White, and Atul Kohli at Princeton, as well as Andy Nathan and Sheri Berman at Columbia and Barnard respectively. Before entering the doctoral program at Princeton, David completed an MBA in Economics and International Business at NYU, and a BSc in Computer Science at Brown.
Local Government in South Africa
Barak Hoffman recently defended his doctoral dissertation at UCLA. His dissertation focused on identifying the determinants of political accountability at the local level in sub-Saharan Africa, using Tanzania and Zambia as cases, where he did extensive fieldwork as a Fulbright Scholar. At CDDRL, he intends to expand the focus to include Ghana, Kenya, South Africa and Uganda to also take into account cases where ethnic tensions are potential sources of instability. Barak Hoffman completed his BA at Brandeis, majoring in Economics, and has an MA in Economics from the Broad School of Management at Michigan State.
Encina Ground Floor Conference Room
Barak D. Hoffman
Center for Democracy and Civil Society
Georgetown University
3240 Prospect Street, NW
Washington, D.C. 20007
Barak has just defended and filed his dissertation at UCSD. His dissertation focused on identifying the determinants of political accountability at the local level in sub-Saharan Africa, using Tanzania and Zambia as cases, where he did extensive fieldwork as a Fulbright Scholar. At CDDRL, he intends to expand the focus to include Ghana, Kenya, South Africa and Uganda to also take into account cases where ethnic tensions are potential sources of instability. His advisors at UCSD were Stephan Haggard, Matt McCubbins and Clark Gibson. Barak completed his BA at Brandeis, majoring in Economics, and has an MA in Economics from the Broad School of Management at Michigan State.
Rebel Recruitment in Civil Wars
The speaker, Macartan Humphreys, is an assistant professor of political science at Columbia University and a visiting professor at CISAC. He is a research scholar at the Center for Globalization and Sustainable Development at the Earth Institute at Columbia and a member of the Millennium Development goals project poverty task force, where he works on conflict and development issues. Overall his research is on African political economy and formal political theory. His dissertation on the politics of factions developed game theoretic models of conflict and cooperation between internally divided groups. More recent research focuses on rebellions in West Africa, where he has undertaken field research in the Casamance, Mali, and Sierra Leone. Ongoing research now includes experimental work on ethnic politics, econometric work on natural resource conflicts, game theoretic work on ethnic politics and large N survey work of ex-combatants in Sierra Leone. Humphreys' work is motivated by concerns over the linkages between politics, conflict and human development. He received his PhD in government from Harvard in 2003 and his MPhil in economics from Oxford in 2000.
The respondent, David Patel, is a 2006-2007 predoctoral fellow at CDDRL (fall quarter) and CISAC (winter and spring quarters). He is completing a dissertation looking at questions of religious organization and collective action in the Middle East, with a theoretical focus on the relationship of organization and information in particular. Empirically, his study looks at Islamic institutions and their role in political action in a wide range of settings including 7th century garrison cities of the early Islamic empire, through the U.S.-led occupation of Iraq. Patel has spent a great deal of time in the Middle East over the last several years, including extended visits to Yemen, Morocco, Jordan, and Iraq, where he spent seven months in Basra conducting research beginning in the fall of 2003. He works with David Laitin, Jim Fearon, and Avner Greif at Stanford. In fall 2007 he will join the faculty at Cornell University as an assistant professor of political science.
Reuben W. Hills Conference Room