Migration and Citizenship (Society)

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Visiting Student Researcher at The Europe Center, 2016-2017
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Jaakko Meriläinen is a Visiting Student Researcher from the Institute for International Economic Studies at Stockholm University, Sweden. His primary area of research is Political Economics with empirical emphasis, and he is also interested in Economic and Political History as well as immigration-related questions. Jaakko's current research concerns political careers, economic consequences of political representation, historical development of voting behavior and historical impacts of time saving technologies on women's labor force and political participation.

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Gi-Wook Shin
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Japan and South Korea face serious demographic crises. Japan has the oldest population in the world and South Korea is one of the most rapidly aging. Together they top the list in terms of proportion of elderly by 2050, with 40.1% and 35.9% respectively being 65 and over, according to a U.S. Census Bureau forecast. Both nations are seeing shrinking working-age populations, with their birthrates among the lowest in the world. This puts them at great risk as they struggle to find new engines of economic growth.

Some experts argue that Japan and South Korea should encourage immigration. The former head of Tokyo's Immigration Bureau, Hidenori Sakanaka, said that "we need an immigration revolution to bring in 10 million people in the next 50 years, otherwise the Japanese economy will collapse." Jongryn Mo, a professor at Yonsei University in Seoul has written a book, "Strong Immigration Nation," urging a similar policy for South Korea.

Is migration the answer?

Japan and South Korea are already supplementing their shrinking workforce with foreign labor, mostly unskilled migrant workers from China and Southeast Asia doing jobs that locals shun.

But it is time to attract more skilled workers. In Japan, only 18.4% of foreign workers were technicians or professionals in 2015, while the figure in Korea is just 7.8% this year. Skilled foreign workers can fill many jobs from staffing hospitals to working as technicians in middle-tier companies and software engineers in large ones.

The challenge, however, is that both countries remain exclusionary, closed societies despite a substantial rise in the numbers of foreigners. Politicians fear losing votes from workers worried about foreigners taking their jobs.

According to a recent report by the French business school INSEAD, Japan and South Korea are ranked 53rd and 61st, respectively in their level of tolerance for immigrants. Most foreign skilled workers have little intention to settle down in Japan or South Korea on a permanent basis, although unskilled ones might be more willing to stay.

Maria, a Guatemalan professional, decided to leave South Korea after working for six years in the overseas marketing department of a large Korean corporation. "Some Koreans complain that foreigners leave after a few years, but we leave because we're never included in the first place. Korean companies pay a lot to bring foreigners here. And then they don't even ask these people about their opinion."

Srey, a Cambodian student studying in Japan, said, "The Japanese are very helpful and very friendly, but at the same time they look at me as a 'gaijin' no matter how good I am at Japanese or able to speak to them. I am not planning to work in Japan."

Bridging strategy

South Korea and Japan need to find a more creative strategy in utilizing foreign talent. In particular, they should pay close attention to their transnational networks rather than pushing for permanent migration. Not only should both countries focus on the knowledge and skills of foreign labor talent, but also the social networks they can possess.

This calls for a particular type of social capital: transnational bridging. A person who has social ties in more than one place can serve as a bridge between those different places. Such bridging can be performed within a city or a country or across borders, but the latter is becoming more important with globalization. By bridging distant networks, people can connect disparate cultures, build trust and facilitate cross-national cooperation that are essential in business transactions. Many Indian and Chinese entrepreneurs and engineers working in Silicon Valley are active in transnational bridging with their home country.

Transnational bridging can be a good new strategy for South Korea and Japan in attracting foreign skilled labor since they can offer valuable experiences and networks as advanced economies, if not permanent places to live. They can help foreign talent to build social ties while studying and working and encourage them to serve as a bridge between South Korea and Japan and their next destination once they leave in what could be called "brain linkage."

They can still contribute to South Korea or Japan even after they depart. Maria said she was willing to do business involving both South Korea and her home country. Srey is also eager to do business with Japan after graduating, even though he will not work in the country.

South Korea and Japan should adopt a policy of "Study-Work-Bridge" rather than the "Study-Work-Migration" pathway commonly encouraged by settler societies. This new policy framework would establish programs providing systematic networking opportunities for skilled foreigners while in Japan or South Korea. It would upgrade the quality of campus life for foreign students and work environments for foreign professionals so they leave with positive experiences.

Most importantly, it would provide institutional support to help maintain transnational networks between foreigners and South Koreans and Japanese.

In Japan, a Study-Work framework has already begun to take shape. Among foreign students seeking employment in Japan in 2013, approximately 24% found jobs. According to the country's ministry of justice, 10,696 of 11,698 foreign students are successful in applying for a change of visa status after graduating from college. This is very encouraging. Still, foreign students feel that Japanese companies are reluctant to embrace their full potential and largely expect them to assimilate, often leading them to stay in Japan only for a short time.

In South Korea, with a shorter history of foreign student intake, a Study-Work framework has yet to emerge. While 64.3% of South Korean companies say they need and want to hire foreign students, only a very small portion of foreign students work in South Korean companies after graduation, perhaps as low as 1%. South Korea's immigration laws for foreign students have eased slightly in recent years, but there is an urgent need to develop solid, institutionalized support for responding to the substantial demand by foreign students who wish to find employment after their studies.

Challenges ahead

Both countries are moving in the right direction, but until they are ready to embrace a more comprehensive migration policy down the road, they should develop the "bridging" component of a Study-Work-Bridge framework as an interim strategy. That means considering how foreign skilled labor can contribute to their economies even if they stay only temporarily.

This non-migration-bridging concept can be also appealing to foreign workers who like to move on after gaining valuable experiences and networks. By activating the social networks they have left behind, foreigners can later become powerful "transnational bridges." With economic globalization, such linkages will be all the more important.

Research shows that science and engineering majors may have more to contribute as human capital, but business and social science majors are more inclined to play a bridging role. Universities and corporations should establish diversity offices, as seen in the U.S. and elsewhere, to promote a culture of tolerance and non-discrimination.

The challenges associated with aging, depopulation and a shrinking workforce are expected to intensify in the coming years. Yet foreign talent is readily at hand for both countries. They need to look no further than the skilled foreigners who already have connections with South Korea or Japan either through schooling or employment and to continue to cultivate such connections through a Study-Work-Bridge approach.


Gi-Wook Shin is director of the Walter H. Shorenstein Asia-Pacific Research Center at Stanford University and co-author of Global Talent: Skilled Labor as Social Capital in Korea. Rennie J. Moon is an associate professor at the Underwood International College at Yonsei University in Seoul.

This article was originally carried by Nikkei Asian Review on Aug. 31 and reposted with permission.

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South Korea is facing a number of challenges. Not unlike other advanced economies in Asia, the country is confronted with a declining working-age population, reduction in birth rates, and risk of long-term stagnation.

A team of Stanford researchers at Stanford’s Shorenstein Asia-Pacific Research Center (APARC), in collaboration with other scholars from around the world, is increasingly thinking about those challenges and is working on a number of research initiatives that explore potential solutions in leveraging benefits from globalization.

The researchers propose that Korea can extract value from two major movements of people – outflows of its own population (diaspora) and inflows of foreigners (immigrants and visitors), all of whom hold the capacity to build social capital – a network of people who have established trust and in turn spread ideas and resources across borders.

Engaging diaspora

Emigration is traditionally viewed as a loss of human capital – ‘brain drain’ – movement of skills out of one country and into another, but Stanford professor Gi-Wook Shin and Koret Fellow Joon Nak Choi support an alternative view of outward flows of citizens.

Shin and Choi suggest that people who leave their countries of origin but never return can still provide value to their home country through ‘brain linkage,’ which advocates that there is economic opportunity in cross-national connections despite a lack of physical presence. This concept is a focus of their research which was recently published in the book Global Talent: Skilled Labor and Mobility in Korea.

“What we’re trying to do is to extend the thinking – to not just look at potential losses of having your people go abroad but also the potential gains,” Choi said. “Previous studies have found that if you have more of these relationships or ‘brain linkages,’ you have more trade and more flow of innovations between countries.”

People who stay in a host country become participants in the local economy and often conduct influential activities such as starting companies, providing advice and sitting on boards of directors, Choi said, and these transactions enact flows of resources from home country to host country and vice versa.

Choi, who outside of his fellowship is an assistant professor at Hong Kong University of Science and Technology, said that this way of thinking pulls away from a zero-sum view of the world and instead sees it as “more globalized, cosmopolitan and diffuse.”

He leads a research project with Shin focused on global talent and cultural movement in East Asia, and over the past quarter, taught a graduate seminar on the Korean development model.

“Cross-national ties are harder to establish than those that are geographically close, but they provide invaluable means of sharing information and brokering cooperation that may otherwise be impossible on other levels,” said Shin, who is also the director of Shorenstein APARC. “In many ways, social ties can be a good strategy to gain a competitive edge. This is an area we endeavor to better understand through our research efforts on Korea.”

Shin has described his own identity of being a part of the very system they are studying. He grew up in Korea, arrived in the United States as a graduate student and has since stayed for three decades and frequently engages the academic and policy communities in Korea.

One cross-national initiative that he recently started is a collaborative study between scholars at Shorenstein APARC and Kyung Hee University in Seoul. The two-year study evaluates the social capital impact of a master’s degree program at the Korean university that trains select government officials from developing countries.


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An international cohort including many researchers from Stanford’s Shorenstein Asia-Pacific Research Center have been conducting group interviews with international students at Korean and Japanese universities to better understand their motivations to stay or go following their completion of a degree or non-degree program at Korean universities. Their initial results reveal that gaps in cross-cultural understanding and opportunities cause feelings of disassociation, but recent internationalization efforts are helping to address those gaps and support innovation, knowledge sharing and local economic growth. An op-ed on the topic authored by Stanford professor Gi-Wook Shin and Yonsei University associate professor Rennie Moon can be viewed here. Credit: Flickr/SUNY – Korea/crop and brightness applied


Harnessing foreign skilled labor

Globalization has also led to migration of people to regions that lack an adequate supply of skilled workers in their labor force. This new infusion of people is an opportunity to bridge the gap, according to the researchers.

“In order to be successful, countries need a large talented labor pool to invest in,” said Yong Suk Lee, the SK Center Fellow in the Freeman Spogli Institute for International Studies and affiliate of the Korea Program. “Innovation is not something like a technology ladder which has a more obvious and strategic trajectory, it’s more about investing in people and taking risks on their ideas.”

Korea currently has a shortage of ‘global talent’ – individuals who hold skills valuable in the international marketplace. Yet, Korea is well positioned to reduce the shortage.

The country produces a vast amount of skilled college graduates. Nearly 70 percent of Koreans between the age of 25 and 34 have the equivalent of a bachelor’s degree. Korea has the highest percentage of young adults with a tertiary education among Organisation for Economic Co-operation and Development (OECD) countries. Another study found that the foreign student population in Korea has risen by 13 percent in the past five years.

Universities are moving to “internationalize” in seeking to both recruit faculty and students from abroad and to retain them as skilled workers in the domestic labor force. A new book published by Shorenstein APARC Internationalizing Higher Education in Korea: Challenges and Opportunities in Comparative Perspective assesses efforts by institutions in Korea, China, Japan, Singapore and the United States through nine separately authored chapters.

 

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Shin and Yonsei University associate professor Rennie Moon, who served as book editors and chapter authors, found that Korea has on average more outbound students (students who leave Korea to study elsewhere) than inbound students (international students who come to Korea to study). The figure above compares five countries and finds that Korea and China are more outbound-driven while Singapore, Japan and the United States are more inbound-driven.

“For most national and private universities in Korea, internationalization is more inbound-oriented—attracting foreign students, especially from China and Southeast Asia,” said Yeon-Cheon Oh, president of Ulsan University and former Koret Fellow at Shorenstein APARC who co-edited Internationalizing Higher Education in Korea. “In many ways, it’s about filling up students numbers. There needs to be a balance in inbound and outbound student numbers in order for internationalization to have an optimal effect.”

International students that do come to Korea are on average not staying long after graduation, though. The researchers identify reasons being difficulty in adapting to the local culture, inability to attain dual citizenship, language barriers, and low wages in comparison to that of native Koreans; in short – it is not easy to assimilate fully.

These and other barriers facing foreigners in Korea are a focus of a broader research project led by Shin and Moon that aims to propose functional steps for policymakers striving to internationalize their countries and to shift the discourse on diversity.

Developing a narrative

The Korean government has expanded efforts to recruit foreign students to study at Korean universities – many of which now rank in the top 200 worldwide – but addressing education promotion is only one area.

“The challenge is to propose a pathway that rallies around a general narrative,” Lee said, citing a need for internationalization to be coordinated across immigration policy, labor standards, and social safety nets.

An international group of experts in Korean affairs gathered at Stanford earlier this year at the Koret Workshop to address the challenge of creating a cohesive narrative, focused on Korea as the case study. The Koret Foundation of San Francisco funds the workshop and fellowship in its mission to support scholarly solutions to community problems and to create societal and policy change in the Bay Area and beyond.


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The Koret Workshop brings together an international panel of experts on Korean affairs at Stanford. From 2015-2016, the workshops focused on higher education, globalization and innovation in Korea. Above, Michelle Hsieh (far right) speaks during a question and answer session following her presentation on Korean and Taiwanese small and medium enterprises, next to her is former U.S. Ambassador to the Republic of Korea Kathleen Stephens, Stanford consulting professor Richard Dasher, former U.S. foreign affairs official David Straub, and Korea University professor Myeong Hyeon Cho.


The interdisciplinary nature of the workshop was an important aspect, according to Lee, and Michelle Hsieh, one of 27 participants of the conference that covered a range of areas from entrepreneurship to export promotion policies in Korea.

“The workshop demonstrated how internationalization of higher education – and academic research in general – can be achieved by constructing cross-cutting ties,” said Hsieh, who was a postdoctoral fellow at Shorenstein APARC from 2006-07 and is now an associate research fellow at Academia Sinica in Taiwan.

“Participating in the workshop made me realize I really miss the lively and rigorous discussions at Shorenstein APARC, where researchers are interdisciplinary with diverse backgrounds yet focused on a common research interest,” Hsieh said. “I think debate and discussion in that kind of setting can illuminate a completely different take.”

The workshop will result in a book that features multiple areas and policy directions for Korea’s development. The lessons included are also envisioned to apply to other emerging countries facing similar trends of demographic change and economic slowdown. Shorenstein APARC expects to publish the book next year.

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The United Kingdom's vote to leave the European Union this summer promises to fundamentally alter the political and economic future of the UK and the rest of the European Union. Stanford faculty Nick Bloom and Christophe Crombez will lead a discussion about the future of the UK's relationship with Europe and Brexit's most important political and economic consequences.

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Nicholas (Nick) Bloom is the William Eberle Professor of Economics at Stanford University, a Senior Fellow of SIEPR, and the Co-Director of the Productivity, Innovation and Entrepreneurship program at the National Bureau of Economic Research. His research focuses on management practices and uncertainty. He previously worked at the UK Treasury and McKinsey & Company.

Nick is a Fellow of the American Academy of Arts and Sciences, and the recipient of the Alfred Sloan Fellowship, the Bernacer Prize, the European Investment Bank Prize, the Frisch Medal, the Kauffman Medal and a National Science Foundation Career Award. He has a BA from Cambridge, an MPhil from Oxford, and a PhD from University College London.

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Christophe Crombez is a political economist who specializes in European Union politics and business-government relations in Europe. His research focuses on EU institutions and their impact on policies, EU institutional reform, party politics, and parliamentary government. Crombez is Senior Research Scholar at The Europe Center at the Freeman Spogli Institute for International Studies at Stanford University (since 1999). He teaches Introduction to European Studies and The Future of the EU in Stanford’s International Relations Program. Furthermore, he is Professor of Political Economy at KU Leuven in Belgium (since 1994). His teaching responsibilities in Leuven include Political Business Strategy and Applied Game Theory. Crombez obtained a B.A. in Applied Economics from KU Leuven in 1989, and a Ph.D. in Business, Political Economics, from Stanford University in 1994.

 

Nicholas Bloom William Eberle Professor of Economics; Senior Fellow, SIEPR; Co-Director of the Productivity, Innovation and Entrepreneurship Program, NBER Panelist Department of Economics

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Christophe Crombez is a political economist who specializes in European Union (EU) politics and business-government relations in Europe. His research focuses on EU institutions and their impact on policies, EU institutional reform, lobbying, party politics, and parliamentary government.

Crombez is Senior Research Scholar at The Europe Center at the Freeman Spogli Institute for International Studies at Stanford University (since 1999). He teaches Introduction to European Studies and The Future of the EU in Stanford’s International Relations Program, and is responsible for the Minor in European Studies and the Undergraduate Internship Program in Europe.

Furthermore, Crombez is Professor of Political Economy at the Faculty of Economics and Business at KU Leuven in Belgium (since 1994). His teaching responsibilities in Leuven include Political Business Strategy and Applied Game Theory. He is Vice-Chair for Research at the Department for Managerial Economics, Strategy and Innovation.

Crombez has also held visiting positions at the following universities and research institutes: the Istituto Italiano di Scienze Umane, in Florence, Italy, in Spring 2008; the Department of Political Science at the University of Florence, Italy, in Spring 2004; the Department of Political Science at the University of Michigan, in Winter 2003; the Kellogg Graduate School of Management at Northwestern University, Illinois, in Spring 1998; the Department of Political Science at the University of Illinois at Urbana-Champaign in Summer 1998; the European University Institute in Florence, Italy, in Spring 1997; the University of Antwerp, Belgium, in Spring 1996; and Leti University in St. Petersburg, Russia, in Fall 1995.

Crombez obtained a B.A. in Applied Economics, Finance, from KU Leuven in 1989, and a Ph.D. in Business, Political Economics, from Stanford University in 1994.

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All things Korean – economics, culture, politics – are the subject of an educational conference on campus this week.

The fifth annual Hana-Stanford Conference on Korea for U.S. Secondary School Teachers takes place July 25 to 27 in Paul Brest Hall. The meeting brings together American teachers and educators from Korea for discussions on how Korean history, economics, North Korea, foreign policy and culture are covered in American schools.

From lectures to curriculum workshops and classroom resources, the attendees will deep-dive into conversations, information and resources made available by the Stanford Program on International and Cross-Cultural Education (SPICE) and the Korea Program, which hosts the event.

Gi-Wook Shin, director of Stanford’s Walter Shorenstein Asia-Pacific Research Center, said that Korea is a country often overlooked or understudied in U.S. secondary schools.

“The Hana-Stanford Conference provides an excellent opportunity for U.S. secondary school teachers to learn about Korea and return to their classrooms better equipped with teaching materials and knowledge about Korea, as well as with the confidence and motivation to incorporate what they have learned from the conference into their curricula,” he said.

Shin said that exposing more American students to Korea “nurtures in students more balanced and complete perspectives on the world.” Korea, after all, he noted, is an important U.S. ally.

Discussions will cover an array of topics, including Korea’s major historical themes; World War II memories in northeast Asia; English education in Korea; Korea’s relationship with the U.S.; Korean literature; and the lives of Korean teenagers and young people. Scheduled speakers include Yong Suk Lee, the SK Center Fellow at Stanford’s Freeman Spogli Institute for International Studies, and Kathleen Stephens, a former U.S. ambassador to South Korea.

Such conversations are important, as how one teaches history shapes contemporary society. Gary Mukai, director of SPICE, said that one of the curriculum units demonstrated at the conference each year is “Divided Memories: Examining History Textbooks.”

“The unit introduces the notion that school textbooks provide an opportunity for a society to record or endorse the ‘correct’ version of history and to build a shared memory of history among its populace,” Mukai said.

He noted that American and Korean teachers’ examination of textbook entries about the Korean War from U.S., Japanese, Korean, Taiwanese and Chinese textbooks challenged their assumptions and perspectives about the war.

Also, during the conference, the Sejong Korean Scholars Program, a distance-learning program on Korea sponsored by SPICE, will honor American high school students and give them the opportunity to present research essays.

Clifton Parker is a writer for the Stanford News Service. This article has been updated to reflect a different speaker and additional program sponsor.

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Students in conversation at the Hana-Stanford Conference on Korea for U.S. Secondary School Teachers. The conference, now in its fifth year, brings together an international group of teachers and students in cross-cultural exchange.
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Japanese Prime Minister Shinzo Abe and his Liberal Democratic Party won by a landslide in the national election for the upper house of parliament on July 10. Writing for Toyo Keizai, Shorenstein APARC Associate Director for Research Daniel Sneider said American policymakers hope the Prime Minister will use the fresh mandate to kick-start stalled economic reforms and to move ahead on implementation of Japan’s new security legislation. Read the article here.

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Japanese Prime Minister and ruling Liberal Democratic Party leader Shinzo Abe places a red paper rosette on an LDP candidate's name to indicate an election victory at the party's headquarters, Tokyo, July 10, 2016.
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**This event has been cancelled**

 
With the backdrop of the Brexit vote in the UK, Nick Clegg will explore the factors behind the rise of the politics of identity, populism and nationalism in the UK, the US and around the world. Drawing on his personal experiences in politics and government, and unique insights on the European debate, he asks how liberals and those who believe in the politics of reason and moderation can rise to the new economic and social challenges of the 21st century.
 
 

[[{"fid":"223705","view_mode":"crop_870xauto","fields":{"format":"crop_870xauto","field_file_image_description[und][0][value]":"Image of Nick Clegg, MP ","field_file_image_alt_text[und][0][value]":"Image of Nick Clegg, MP ","field_file_image_title_text[und][0][value]":"Image of Nick Clegg, MP ","field_credit[und][0][value]":"","field_caption[und][0][value]":"","field_related_image_aspect[und][0][value]":"","thumbnails":"crop_870xauto"},"type":"media","attributes":{"alt":"Image of Nick Clegg, MP ","title":"Image of Nick Clegg, MP ","width":"870","style":"width: 150px; height: 197px; float: left; margin-right: 15px; margin-top: 8px;","class":"media-element file-crop-870xauto"}}]]Nick Clegg MP is a Liberal Democrat politician who served as Deputy Prime Minister in Britain’s first post war Coalition Government from 2010 to 2015 and as Leader of the Liberal Democrats from 2007 to 2015. He is the Member of Parliament for Sheffield Hallam, where he was first elected in 2005, and was previously a Member of the European Parliament.

Nick Clegg led his party into Government for the first time in its modern history in a coalition with the Conservatives. As Deputy Prime Minister, Nick Clegg occupied the second highest office in the country at a time when the United Kingdom was recovering from a deep recession following the banking crisis of 2008. Despite the hugely controversial decisions needed to restore stability to the public finances, Nick Clegg successfully maintained his party’s support for a full five-year term of office.

During that time, he was at the heart of decisions surrounding the conflict in Libya, new anti-terrorism measures, the referenda on electoral reform and Scottish independence, and extensive reforms to the education, health and pensions systems. He was particularly associated with landmark changes to the funding of schools, early years education and the treatment of mental health within the NHS. During the coalition years he also established himself as the highest profile pro-European voice in British politics and is well known and respected in capitals across the continent.

He remains an outspoken advocate of civil liberties and centre ground politics, of radical measures to boost social mobility, and of an internationalist approach to world affairs. Following the UK referendum on EU membership in June 2016, Nick has returned to the Liberal Democrat front bench as the party’s European Union spokesperson in order to hold the Government to account over its plans for Brexit.

 
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The cover image of "Internationalizing Higher Education," which shows abstract students carrying books, moving in different directions.

Student mobility in Asia has reached unprecedented levels. Inbound and outbound student mobility creates opportunities for Asian societies but also challenges, such as growing diversity and brain drain. This book examines these and other related, timely issues for the case of South Korea, a major player in the internationalization of higher education in Asia, and draws on the comparative experiences of other key players in the Asia-Pacific region—Japan, China, Singapore, and the United States. By doing so, it offers critical perspectives on the internationalization of Korean higher education as well as innovative, policy-relevant solutions for Asian countries undergoing similar challenges.  It will be a valuable addition to the growing literature on comparative and international education in Asia and can aid university administrators and policymakers striving to internationalize their higher education systems to meet new challenges.

Desk, examination, or review copies can be requested through Stanford University Press.

 
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Challenges and Opportunities in Comparative Perspective

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A British exit from the European Union would slow economic growth, reduce Europe's impact in world politics, and strengthen regimes such as Russia's that prefer a weaker, less united Europe, Stanford expert Christophe Crombez says.

The United Kingdom would lose more than it would gain if it left the European Union, a Stanford scholar said.

So would other European nations, and the real winners would be countries that seek to divide European unity, said Christophe Crombez, a consulting professor in Stanford’s Europe Center in the Freeman Spogli Institute for International Studies.

Britain is holding a referendum on June 23 to decide whether the country should leave or remain in the European Union.

“It would bring but an illusion of sovereignty,” said Crombez, who studies European Union politics, parliamentary systems, political economy and economic analysis of political institutions. He is an economist from Belgium.

The Stanford News Service recently interviewed Crombez on the upcoming vote, known as “Brexit.”

What is Brexit?

The term Brexit refers to the United Kingdom’s withdrawal from the European Union. Article 50 of the Treaty on European Union allows member states to withdraw.

What are the arguments for and against Brexit?

The campaign for the UK to leave the EU uses the following main arguments: leaving would save UK taxpayers money, since the UK is a net contributor to the EU budget; the UK would no longer have to comply with EU laws it does not want, whereas currently it can be outvoted in EU institutions and forced to adopt laws it opposes; and it would allow the UK to better control migration, whereas EU citizens are currently free to move and work throughout the EU.

These three arguments can easily be refuted, however. The UK does indeed contribute to the EU budget, but the benefits it derives from being part of the EU market far outweigh the budgetary contributions. Moreover, (if Britain were to withdraw) the EU would require the UK to pay into its budget, if it wants to remain part of the EU’s internal market, as it has done with Switzerland and Norway.

Also, about half of UK exports are destined for the EU. If the UK were to leave, it would no doubt want to continue to trade with the EU. UK products would have to conform to EU rules for them to be sold in the EU. UK companies that want to export to the EU would thus continue to comply with EU rules. The difference would be that the UK would no longer be involved in setting those EU rules. Post-Brexit, the rules would thus be less to the UK’s liking than prior to it, and UK companies would comply to these less advantageous rules.

Finally, the EU would impose requirements on immigration and free movement of people on the UK in exchange for free trade with the EU, as it has with other countries in similar situations, such as Norway and Switzerland. Moreover, member states may no longer feel inclined to stop refugees from moving on to the UK if the UK were to leave, which may lead to higher rather than lower immigration.

In addition to these arguments, the Britain Stronger in Europe campaign (which supports the UK remaining in the EU) argues that Britain carries more weight in world politics as part of the EU than on its own, in trade negotiations as well as on security issues, and that a united Europe is better at dealing with (Russian President Vladimir) Putin and other authoritarian rulers, terrorist threats and international crime.

What do you think is the best decision for the United Kingdom to make on this vote?

I see no advantages to leaving the EU. It would bring but an illusion of sovereignty – consider the points above. The vote would have a negative impact on growth in the UK and the rest of the EU and, in fact, the world, and it would weaken the UK, the EU and the West in world politics.

What happens economically to Britain if the country leaves the European Union?

Trade and hence gross domestic product would be negatively affected, especially in the short term. Uncertainty would reduce investment and trade. The UK and the EU would be consumed with the negotiations on the break-up for years. This would prevent both the UK and EU from tackling more important economic and security issues. In the long term, the economy would readjust, but the result would be suboptimal.

What happens to the EU if Britain leaves?

The EU is less dependent on trade with the UK than vice versa. There would be an economic impact, but it would be less substantial. The effect would be more significant for a few countries that trade more with the UK, such as Ireland, Belgium and the Netherlands.

Brexit would, however, deliver a major blow to the idea of European unification. It would weaken the EU impact in world politics and strengthen such rulers as Putin and (Turkish President Recep Tayyip) Erdogan in their dealings with the EU.

Could a British exit open up a Pandora’s Box of other EU countries exiting or spark other regional independence movements, like  Catalonia?

That is quite possible. A number of other countries may want to hold referendums on the EU. Moreover, Brexit is likely to lead to a break-up of the UK. Scotland would likely hold another referendum and decide to leave the UK in order to stay in the EU. The same may be true for Northern Ireland in the long run. Scottish secession may then give other EU regions, such as Catalonia, further incentives to secede.

 
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Event Recap: German Minister of Defense Ursula von der Leyen Visits Stanford

Ursula von der LeyenUrsula von der Leyen, Minister of Defense, Federal Republic of Germany

In her March visit to Stanford University, Ursula von der Leyen, Minister of Defense for the Federal Republic of Germany, spoke to members of the Stanford community about the consequences of current international security challenges for Germany and for Europe. In recent months, some in Germany have advocated border closures as a solution to the ongoing migration crisis. Von der Leyen was highly critical of such measures because they necessitate closing intra-European Union borders thereby limiting the freedom of movement within the European Union, something she heralds as one of the greatest achievements of European integration.

As an alternative to the simplistic border closure approach, von der Leyen advocated a more nuanced approach, consisting of four broad steps. First, she said that the EU member states must clarify the meaning of “asylum,” and that those wishing to migrate to Germany or some other European country but who are not fleeing persecution must go through the regular migration process. Second, she stated that in order to maintain border-free travel across the Schengen area, the member states must reinforce external borders in an effort to combat human smuggling, human trafficking, and organized crime. The third step in von der Leyen’s approach was to enhance multilateral cooperation. She highlighted increased NATO naval patrols in the Mediterranean, the EU-NATO-Turkey summit meeting, and commitment to raising funds to feed and shelter refugees as examples of such cooperation. Finally, she said that Europe and its allies must deal with the root causes of the refugee flows by bringing peace and stability to both Iraq and Syria and by stopping ISIS. Doing so, she argued, will require military means, at least initially, and also requires increased coordination among the many disparate actors currently involved in the conflict. In order to successfully deal with the ongoing crisis, she argued, people must have a viable future in their own countries.

A medical doctor by training, von der Leyen spoke fondly of the time that she and her family spent at Stanford in the nineties. She became a member of the Christian Democratic Union (CDU) in 1990 and became active in politics shortly after returning to Germany from Stanford. Since that time, she has served at the local, lander, and federal levels of government and was first appointed to the cabinet in 2005. Prior to her 2013 appointment as Minister of Defense, von der Leyen served as the Minister of Family Affairs and Youth (2005-2009) and as the Minister of Labour and Social Affairs (2009-2013).


The Europe Center Undergraduate Internship Program in Europe

Please join us in congratulating the students selected to participate in The Europe Center’s summer 2016 Undergraduate Internship Program in Europe:

The Alliance of Liberals and Democrats for Europe (ALDE) 
Christine Cavallo
Joshua Petersen

Bruegel
Nafia Chowdhury 
Max Morales 
Andrea Villarreal

The Centre for European Policy Studies (CEPS)
Amanda Jaffe

The International Center for Defense and Security (ICDS)
Caitlyn Littlepage
Sarah Manney

For more information about The Europe Center’s Undergraduate Internship Program in Europe, please visit our website.


Featured Faculty Research: Ken Scheve

We would like to introduce you to some of The Europe Center’s faculty affiliates and the projects on which they are working. Our featured faculty member this month is Ken Scheve, who is a Professor of Political Science and Director of The Europe Center.

Taxing the RichKen earned his Ph.D. from Harvard University in 2000 and joined the faculty at Stanford University in 2012. Ken's research interests are in the fields of international and comparative political economy and comparative political behavior with particular interest in the behavioral foundations of the politics of economic policymaking. An example of this research is his recent book, Taxing the Rich: A History of Fiscal Fairness in the United States and Europe, which he co-authored with David Stasavage of New York University. In this book, Scheve and Stasavage tackle a subject of considerable political conflict: taxes on the richest members of society. There has been a great deal of debate about what government should do in this area, but we know far less about the reasons why some governments actually do tax the rich and others do not. Scheve and Stasavage address this question by examining income, inheritance, and other taxes from 1800 to the present in a set of twenty countries.

The core argument of the book is that countries tax the rich when the public thinks the state has failed to treat citizens as equals and in so doing has privileged the rich. Scheve and Stasavage begin with the premise that debates about taxation revolve around self-interest (no one likes paying taxes), economic efficiency, and fairness. They argue that fairness considerations center on what it means for the state to treat citizens as equals in income tax policy. Historically, they demonstrate that there are three main fairness arguments that have been used for or against taxing the rich. Equal Treatment arguments claim that everyone should be taxed at the same rate just like everyone has one vote. Ability to Pay arguments contend that states should tax the rich at higher rates because they can better afford to pay when compared with everyone else. Compensatory arguments suggest that it is fair to tax the rich at higher rates when it compensates for unequal treatment by the state in some other policy area. They argue that over the last two centuries compensatory arguments have been the most powerful arguments in favor of taxing the rich.

Examining the history of income taxation, Scheve and Stasavage find that compensatory arguments were important in the early development of income tax systems in the 19th century when it was argued that income taxes on the rich were necessary to compensate for heavy indirect taxes that fell disproportionately on the poor and middle class. But the most significant compensatory arguments over the last two centuries have been arguments to raise taxes on the rich to preserve equal sacrifice in wars of mass mobilization. These conflicts, particularly World War I and World War II, led states to raise large armies, often through conscription, and citizens and politicians alike adopted compensatory fairness arguments to justify higher taxes on income and wealth. Mass war mobilization led governments of both left and right to tax the rich.

Scheve and Stasavage show that governments have neither taxed the rich just because inequality is high, nor have they done so simply because the poor and middle classes outnumber the rich when it comes to voting. The main occasion when governments have moved to tax the rich is during times of mass mobilization for war, especially in democracies in which the norm of treating citizens as equals is held more strongly. They demonstrate that the real watershed for taxing the rich for many countries came in 1914. The era of the two world wars and their aftermath was one in which governments taxed the rich at rates that would have previously seemed unimaginable.

Throughout the book, Scheve and Stasavage show that when countries shift from peace to war, or the reverse, there has also been a big shift in the type of fairness arguments made in favor of taxing the rich. During times of peace, debates about whether it is fair to tax the rich center on competing equal treatment and ability to pay arguments. During times of war, supporters of taxing the rich have also been able to make compensatory arguments. If the poor and middle classes are doing the fighting, then the rich should be asked to pay more for the war effort. If some with wealth benefit from war profits, then this creates another compensatory argument for taxing the rich. These compensatory arguments had the biggest impact in democracies that are founded on the idea that citizens should be treated as equals. The fact that war had a much bigger impact on taxes on the rich in democracies than in autocracies also suggests that the rich weren’t being taxed out of simple necessity. It was because war determined what types of fairness arguments could be made.

The findings in Taxing the Rich have implications for the future of income taxation: Don’t expect high and rising inequality to necessarily lead to a return to the high top tax rates of the post-war era. What really matters is what people believe about how inequality is generated in the first place. If it is clear that inequality has risen because the government has failed to treat citizens as equals in the first place, then there is room for convincing compensatory arguments. Today, in an era where military technology favors more limited forms of warfare — drones rather than boots on the ground — the wartime compensatory arguments of old are no longer available. Absent new compensatory arguments, Scheve and Stasavage expect some to argue for taxing the rich based on ability to pay, but this probably won’t suffice to produce radically higher tax rates. More politically plausible reforms include those that involve increasing taxes on the rich by appealing to the logic of equal treatment to remove deductions, exemptions, and cases of special treatment. For more information about this research, please visit the book's website.

Publication Details: Scheve, Kenneth F., and David Stasavage. 2016. Taxing the Rich: A History of Fiscal Fairness in the United States and Europe. Princeton, NJ and New York, NY: Princeton University Press and the Russell Sage Foundation.


Featured Graduate Student Research: Melissa Kagen

We would like to introduce you to some of the graduate students that we support and the projects on which they are working. Our featured graduate student this month is Melissa Kagen (German Studies). Melissa is a Ph.D. candidate in the Department of German Studies at Stanford University. Prior to beginning her doctoral studies at Stanford, Melissa earned an MA in Humanities from the University of Chicago and a BA in Literary Arts from Brown University.

Melissa KagenMelissa's research interests include nineteenth and twentieth century German and Austrian opera and fiction, Jewish studies, and performance studies, as well as digital humanities. In her dissertation, Melissa examines the concept of "Wandering" - an important theme since Wagner's work - in modernist German opera. She considers the distinctive conceptions of German and Jewish wanderers in four operas written by German-speaking Jews prior to World War II. These operas include Der Ferne Klang (1912) by Franz Schreker, Die Tote Stadt (1920) by Erich Wolfgang, Moses und Aron (1933) by Arnold Schoenberg, and The Eternal Road (1937) by Kurt Weill. Supported by The Europe Center, Melissa conducted research in Germany and Austria during summer 2015. During this time, she traveled to libraries and archives to access works related to her dissertation research. A highlight of her research trip was seeing a performance of Der Ferne Klang in Manheim. Because this opera is rarely performed and is not available on DVD, this was the first time Melissa had ever seen a performance of Der Ferne Klang. Another crucial outcome of her archival work was the realization that in Die Tote Stadt, the protagonist himself does not wander, but rather the spaces wander around him. This realization was crucial to her novel discussion of this work. Melissa will be presenting her completed project in May and graduating in June. She hopes to return to Europe this summer to work on a related project.

For more information about The Europe Center's Graduate Student Grant program, please visit our website.


Stanford Student Sarah Flamm Participates in Model WTO

Model WTOModel WTO Participants at the University of St. Gallen

In April Stanford University student Sarah Flamm traveled to Switzerland to participate in the 19th annual Model World Trade Organization program. Here is Sarah’s description of her experience:

I had the pleasure of representing the delegation of the United States at the 19th annual Model World Trade Organization (WTO) this April. With the generous support of SIEPR and The Europe Center at the Freeman Spogli Institute, I traveled to Switzerland to join 60 graduate and undergraduate students from different parts of the world to deliberate over the Government Procurement Agreement (GPA). The simulation took place at the University of St. Gallen and the WTO headquarters in Geneva. Over the course of an intense week, we delegates negotiated and drafted amendments to the GPA to reflect changing national and international priorities and values.

Government procurement refers to purchases of goods and services made by government agencies with public money for public purposes. This topic is more interesting and polemical than one might initially suspect. Federal procurement represents a huge market ($530 billion in the United States), making its impact quite consequential. The goal of the GPA is to facilitate and to open trade opportunities and to ensure that governments follow the principles of non-discrimination, transparency, and procedural fairness in procurement. It is one of the few agreements where the United States has allowed itself to be subject to international arbitration, favoring the benefits of market access. Government procurement is also symbolically important as it reflects how nations choose to spend their money and whom they decide to support.

I represented the delegation of the United States, along with four others students from Belgium, Switzerland, China, and Hong Kong. We were each assigned to represent the United States on different committees, which included Green Procurement, Anti-corruption, African Participation, Small and Medium Enterprises (SMEs), and Social Issues. I served on the Social Issues Committee, which addressed priorities in government procurement as they relate to labor standards, minority rights and discrimination, among others. On the Social Committee I had two main negotiation goals: 1) insert the term "social issues" into the GPA text in order to empower governments to explicitly take social responsibility into account when awarding government contracts, and 2) define "social issues" to mean meeting minimum labor standards, notably to comply with two International Labour Organization conventions - Convention 105 on the Abolition of Forced Labour and Convention 182 on the Worst Forms of Child Labour. Over the course of six moderated negotiation rounds, we discussed these as well as priorities raised by other countries. The negotiations varied from meticulous arguments over text, to practical discussions on how to create allowances for developing countries that currently rely on child and cheap labor, making them presently unable to meet the requirements of developed countries in order to compete for contracts.

Amidst negotiations, our delegation consulted with David Bisbee, who is the Attaché at the U.S. Mission to the WTO. He advised on negotiations and strategy, and upon conclusion of the negotiations we met with him in person at the U.S. embassy in Geneva. It was interesting to represent a country that is not very enthusiastic about multilateral bodies such as the WTO. In reality, the United States would likely have abstained from voting to include the Social Issues language that we had promoted because of the fear that it would open the door to discrimination. At the end of the week, we met with lawyers from the WTO Secretariat in Geneva who gave us detailed feedback on the new GPA text we had created. This provided an opportunity to better understand whether our results were realistic and how they compared to real negotiation outcomes. We also learned about the procedure for ratification of the amended document.

Simulations like Model WTO differ from reality in that country representatives are often more willing to compromise than they would in reality, but this also allowed for an expanded policy space for our countries to come up with workable solutions. This experience has piqued my interest in one day representing the labor and trade priorities of the United States on the global stage.


The Europe Center Sponsored Events

April 28, 2016 
12:00PM - 1:30PM 
Pauline Schnapper, Université Paris 3 Sorbonne Nouvelle 
Is Britain Going to Leave the EU? The Referendum Campaign and the Crisis of British Democracy 
CISAC Central Conference Room, Encina Hall 
RSVP by 5:00PM April 25, 2016.

Save the Date: April 28-29, 2016 
9:00AM - 5:00PM 
Conference: Networks of European Enlightenment 
Levinthal Hall, Stanford Humanities Center 
This conference is co-sponsored by The Europe Center, the French Cultural Workshop, the Stanford Humanities Center, and the Division of Literatures, Cultures, and Languages.

Save the Date: April 29-30, 2016 
Symposium: Adjudicating Across Borders: Contemporary Challenges in International Adoption 
Stanford Law School Room 290 
RSVP required. 
This conference is co-sponsored by The Europe Center

May 9, 2016 
11:30AM - 1:00PM 
Monica Martinez-Bravo, Centro de Estudios Monetarios y Financieros (CEMFI), Madrid 
Workshop Title TBD 
Room 400 (Graham Stuart Lounge), Encina Hall West 
No RSVP required. 
This seminar is part of the Comparative Politics Workshop in the Department of Political Science and is co-sponsored by The Europe Center.

European Security Initiative Events

Save the Date: April 28, 2016 
4:15PM - 5:45PM 
John Bass, United States Ambassador to Turkey

Save the Date: May 3, 2016 
Steve Sestanovich, Professor of International Diplomacy at Columbia University

 

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