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This seminar is jointly hosted by the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) and Greater China Business Club (GCBC) at Stanford Graduate School of Business.

About the seminar

There is often much discussion about the current Chinese economic environment and how it impacts global economic growth. However, to gauge the true impact of China on the world economy, one should look at what will happen over the long term as the country gets closer to the United States in economic strength and maturity. This talk looked at the current trends in the Chinese political and economic arena, the long-term prospects for Chinese economic growth, and how these trends would impact the global economic order. Examples from the technology and internet industry were used to demonstrate this effect and how China would shape global industries.

About the speaker

Chris joined McKinsey & Company’s Asia leadership team in 2011 as a senior advisor in
technology. He leads engagements for clients in the technology, telecommunications and
semiconductor industries and is taking a leadership role in advanced technology areas both in Asia and globally. Previous to McKinsey, Chris was the General Manager of Intel China,
directly responsible for the overall region’s multi-billion dollar P&L. Chris managed Intel
China’s business operations, its technical and development operations, its strategic programs with enterprise, Internet & government customers, and owned the mobile, server, phone, embedded and consumer electronics product lines. Chris also managed Intel’s Olympics Program. During his 3-year tenure ending in 2010, overall revenue increased by over 80%.

Formerly, Chris was Chief of Staff to Intel Executive Vice President Sean Maloney, assisting
Mr. Maloney in leading Intel’s $15 billion mobile PC business as well as its $45 billion global
Sales & Marketing Group. Chris led Intel’s wireless business unit as well as various business
development, sales, marketing and product management teams at Intel. Chris was previously a private equity investor at The Blackstone Group in New York City. He served as a consultant for Bain & Company in South Africa and led the Board of Directors for Decortech, a privatelyheld technology company.

During a six months sabbatical in 2010, Chris led a major charity program in China and was a visiting professor of strategy at the MIT-Fudan University MBA program in Shanghai. Chris’s academic and policy works have been published by Stanford University; in Opportunity ’08 by the Brookings Institution; and in the Strategic Management of Technology and Innovation textbook by Clayton Christensen and Robert Burgelman. Chris has served as a senior fellow at Tsinghua University and was the author of the ‘Asia Diary’ column for Forbes Online. Chris is a member of the Council on Foreign Relations, a member of the National Committee on US-China Relations, and an Advisory Board Member for the Seva Foundation.

Chris received an MBA from Stanford Business School (2001), where he was an Arjay Miller
scholar; a Masters of Arts in Political Science from Stanford University (2001); and a Bachelors of Science in Economics, summa cum laude, from the Wharton School at the University of Pennsylvania (1996).

Chris was born in Washington, D.C., spent his entire childhood in rural Colorado, lived as an
expatriate in France and South Africa, and currently lives with his wife Xiaomin in China.

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Two Stanford graduates with close ties to FSI’s centers have been named 2012 Rhodes Scholars. A third was selected as a Mitchell Scholar.

Anand Habib was a graduate of the 2011 CISAC honors program in international security studies and a 2010 Dachs undergraduate intern. Habib and Katherine Niehaus – who is now a research assistant for a CHP/PCOR project evaluating whether HIV medication increases the risk of cardiovascular disease – will study at the University of Oxford in England under the Rhodes program. 

Philippe de Koning, who will study in Ireland as a Mitchell fellow, wrote a manuscript about Japan’s defense and financial crisis with Shorenstein APARC faculty member Phillip Lipscy. Lipscy, a political scientist, was de Koning’s advisor through his undergraduate career and also advised him on his senior thesis. De Koning was also a 2010 CISAC honors student.

More about the scholars:

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Anand R. Habib, 22, of Houston, Texas, is a 2011 graduate of Stanford, where he earned a bachelor's degree in biology, with honors in international security studies. He plans to pursue a master's degree in public policy and in medical anthropology at Oxford.

Habib is working on community health programs at St. Joseph's Clinic in Thomassique, Haiti, under a one-year global health fellowship awarded by Medical Missionaries. The nonprofit organization is a volunteer group of more than 200 doctors, nurses, dentists, and others who work to improve the health of the poor in the United States and throughout the world.

In 2011, he won a Deans' Award for Academic Accomplishment, which honors extraordinary undergraduate students for "exceptional, tangible" intellectual achievements. One of the professors who nominated him for the award described him as a "superb critical thinker" whose work is characterized by "creative genius" and "mature insights," adding that he "exemplifies exactly the kind of deeply informed, pragmatic and caring leadership that the world needs and Stanford enables."

As a Stanford student, Habib worked on behalf of politically and medically disenfranchised people in India, Mexico and Guatemala. His field research internship in Guatemala’s indigenous region during summer 2010 was carried out under the supervision of Paul Wise, professor of pediatrics and FSI senior fellow, as part of FSI’s Dachs mentored undergraduate research program.  On campus, he turned the Stanford tradition of the annual Dance Marathon into a vehicle dedicated to addressing the HIV/AIDS pandemic by engaging not only Stanford students but also local communities and corporations, raising more than $100,000. His exceptional work was recognized by his participation in the Clinton Global Initiative University Conference in April, 2011.

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Katherine "Kate" Niehaus, 23, of Columbia, S.C., earned a bachelor's degree in biomechanical engineering in 2010 and a master's degree in bioengineering in 2011 – both at  Stanford. Her class and research work focused on biomechanics and her interests lie in its applications to high technology entrepreneurship.

She plans to pursue a doctorate of philosophy in systems approaches to biomedical science at Oxford.

At Stanford, Niehaus captained Stanford's varsity track and cross country teams, won the Pac-10 5,000 meters, and won Academic-All American status. She also served as a mentor and tutor for students in low-income families.

Working with faculty in the Center for Health Policy, Kate led a project to evaluate how well newer HIV antiretroviral drugs work compared with older drugs.  Her work was among the first to evaluate comprehensively all of the trials of new drugs in treatment of experienced patients, and showed that these drugs have substantial benefits.

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Philippe de Koning, 22, of Paris, France, earned a bachelor's degree in international relations at Stanford in 2010. He plans to pursue a master's degree in international security and conflict resolution at Dublin City University.

He is a Herbert Scoville Jr. Peace Fellow at the Nuclear Threat Initiative in Washington, D.C. The nongovernmental organization works to prevent nuclear, chemical, and biological threats from materializing. De Koning is researching nuclear materials security and the U.S.-China dialogue on nuclear issues.

De Koning, who earlier was awarded a Fulbright Scholarship, spent the 2010-2011 academic year at Hiroshima University in Japan. He examined various components of Japanese security policy, with emphasis on current evolution of Japanese Self-Defense Forces, policies on nuclear issues and approaches toward peacekeeping.

In 2009, he was a member of the Stanford delegation to the United Nations Climate Change Conference in Copenhagen.

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Congratulations to Philippe de Koning, recipient of the George J. Mitchell Scholarship. De Koning, 22, of Paris, France, earned a bachelor's degree in international relations at Stanford in 2010, and was a Class of 2010 graduate of the CISAC Honors program.

Recipients of the award pursue a year of post-graduate study at universities on the island of Ireland in the academic year 2012-2013. De Koning plans to pursue a master's degree in international security and conflict resolution at Dublin City University.

Currently, he is a Herbert Scoville Jr. Peace Fellow at the Nuclear Threat Initiative in Washington, D.C. The nongovernmental organization, which is run by former U.S. Sen. Sam Nunn, works to prevent nuclear, chemical, and biological threats from materializing. De Koning is researching nuclear materials security and the U.S-China dialogue on nuclear issues.

De Koning, who earlier was awarded a Fulbright Scholarship, spent the 2010-2011 academic year at Hiroshima University in Japan. He examined various components of Japanese security policy, with emphasis on current evolution of Japanese Self-Defense Forces, policies on nuclear issues and approaches toward peacekeeping.

In 2009, he was a member of the Stanford delegation to the United Nations Climate Change Conference in Copenhagen.

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Philippe de Koning
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AMERICAN ACADEMY

OF ARTS & SCIENCES

Cordially invites you to the 1979th Stated Meeting


The Future of the Military

Wednesday, December 7, 2011

6:00 p.m. Program ~ Reception to follow

Karl Eikenberry

Former U.S. Ambassador to Afghanistan and U.S. Army Lt. General (ret.)

Payne Distinguished Lecturer, Freeman Spogli Institute for 
International Studies at Stanford University

David M. Kennedy

Donald J. McLachlan Professor of History, Emeritus, Stanford University

William J. Perry

Michael and Barbara Berberian Professor; Codirector of the Preventive Defense Project;
Senior Fellow, Freeman Spogli Institute for International Studies, Stanford University

James Sheehan

Dickason Professor in the Humanities; 
Professor of Modern European History, Emeritus, Stanford University

Introduction

John Hennessy

President, Stanford University

Stanford Faculty Club 
439 Lagunita Drive

Please RSVP by December 1.

Register online at https://www.amacad.org/events/cEventRegForm.aspx?id=80
For questions, contact Audrey Blanchette: 617-576-5032 or mevents@amacad.org

Karl Eikenberry Panelist
David M. Kennedy Panelist
William J. Perry Panelist

Building 200, Room 209
Stanford University
Stanford, CA 94305-2024

(650) 723-9569 (650) 725-0597
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Dickason Professor in the Humanities, Emeritus
Professor of History, Emeritus
Senior Fellow at the Freeman Spogli Institute for International Studies, by courtesy
sheehan.jpg MA, PhD

James Sheehan is the Dickason Professor in the Humanities at Stanford, a professor of history, and an FSI senior fellow by courtesy. He is an expert on the history of modern Europe. He has written widely on the history of Germany, including four books and many articles. His most recent book on Germany is Museums in the German Art World: From the End of the Old Regime to the Rise of Modernism (Oxford Press, 2000). He has recently written a new book about war and the European state in the 20th century, Where Have All the Soldiers Gone? addressing the transformation of Europe's states from military to cilivian actors, interested primarily in economic growth, prosperity, and security. His other recent publications are chapters on "Democracy" and "Political History," which appear in the International Encyclopedia of the Social and Behavioral Sciences (2002), and a chapter on "Germany," which appears in The Encyclopedia of the Enlightenment (Oxford University Press, 2002).

Sheehan is a member of the American Academy of Arts and Sciences and the American Philosophical Society. He has many won many grants and awards, including the Officer's Cross of the German Order of Merit. In 2004 he was elected president of the American Historical Association. He received a BA from Stanford (1958) and an MA and PhD from the University of California at Berkeley (1959, 1964).

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This past Thursday, on the 10th of November 2011, former U.N. Secretary-General, Kofi Annan delivered a speech at Stanford University on the occasion of the launch of the Freeman Spogli Institute for International Studies' Center on Food Security and the Environment. Citing UN estimates, more precisely the UNFPA State of the World Population 2011 report, he highlighted that the world population had recently reached seven billion and growing. Advancements in healthcare and technology have increased our life expectancy, affording 'man' the ability to escape a life that is, in Hobbesian parlance, "poor, nasty, brutish, and short." Yet this apparent human success story eclipses the "shameful failure" of the international community to address an indiscernible fact: that in the contemporary technological age, an astonishing number of people in the world go hungry each day. The marriage of a globalized economy and scientific innovation was supposed to - at least in theory - increase and spread wealth and resources to enhance the human condition. And yet today - talks of unfettered markets and the financial crisis aside -, we lay witness to close to one billion people around the world who lack food security (both chronic and transitory). Citing numbers from the World Bank, Annan stated that rapidly rising food prices since 2010 have "pushed an additional 70 million people into extreme poverty". Adding to these disturbing figures is the fact that one of the world's most ravenous culprits of infanticide is no other than hunger, which claims the young lives of 17,000 children every day.

Dwindling incentives to farm and increasing pressures on farmers are not helping the food insecurity crisis. Frequently, companies who contract local farmers to produce cash crops for export do not employ "strategic agricultural planning" or take into account the impact their policies and modus operandi may have on local farming communities and their immediate (food) needs. Artificially low prices for agricultural goods force farmers from their land and discourage investment in the sector, Annan warns. Agricultural subsidies in the US and Europe against farm produce injected into the market by farmers from developing countries have also added to the problem. Agricultural subsidies in Europe in particular have had a devastating impact on farmers from other parts of the world - mostly in Asia and Africa - who simply cannot compete with the existing market conditions and the low price tags attached to their goods. This phenomenon is most acute in Africa where a significant segment of the population lives modestly by working the land and these subsidies are choking the lifeline that feeds their families. To bring home the point of the sheer imbalance between the conditions of Western farmers and the 'rest', Annan stated that with a fraction of the funds generated by a reduction of subsidies, one "can fly every European cow around the world first class and still have money left over". Without a more balanced approach to international trade policy making, subsidies will continue to be a factor in food insecurity.

And it gets worse. The 'Four Horsemen of the Apocalypse' of our times - (i) an ever emerging global water crisis, (ii) land misuse and degradation, (iii) climate change, and (iv) kleptocratic governance - have combined to aggravate an already dire international food insecurity predicament. The hard truth is that without countering the forward gallop of these ills, food insecurity cannot be adequately addressed.

The facts on the ground and projections into the future do not paint a promising picture. Food prices are expected to rise by 50 percent by the year 2050, Annan warns, and this at a time when the world will be home to two billion more inhabitants. In 40 years from now, there simply isn't enough food to nourish and satisfy the world's population.

The growing world food crisis also stifles development. It is the cyclical brutality of poverty that keeps the hungry down. Without the means or access to proper and adequate nutrition, the impoverished who are always the first victims of food insecurity invariably suffer from poor health, in turn resulting in low productivity. This vicious cycle traps the less privileged to a seemingly inescapable downward spiral.

During the course of his poignant remarks, Annan stated that without addressing food insecurity "the result will be mass migration, growing food shortages, loss of social cohesion and even political instability". He is correct on all counts.

The fact is that a world which 'cultivates' and then neglects the hungry is a dangerous and volatile world. Since time immemorial, dramatic human migrations have had a direct correlation with changes in climate, habitat and resource scarcity. Survival instincts are engrained in our genetic make-up. When the most basic and fundamental necessities of life are sparse and hard to come by, our natural inclination is to look for 'greener pastures'. An unaddressed and lingering food insecurity crisis will mean the world will witness significant and rapid migration trends in the 21st century (a phenomenon very much in motion today). The injection of mass flows of people into other foreign populations will cause friction and conflict induced by integration challenges, both social and economic (surmountable, but conflicts no less).

Moreover, the desperation and unmet basic needs of the underprivileged can translate into open outbursts of conflict and violence. Tranquility and social harmony are virtues enjoyed by countries that can provide for their people. Leaving the growing food insecurity dilemma unaddressed will be to invite inevitable political instability and violence in countries and fragile regions of the world grappling with high poverty rates and concomitant food insecurity challenges. More often than not, history has shown a positive nexus between hunger and social upheaval (it bears noting that La Grande Révolution of 1789-99 was preceded by slogans of "Du pain, du pain!"). Further, it does not take too much of a forethought to recognize that it is precisely in environments of destitute and despondency where autocratic rule can easily take root and grow to inflict further suffering.

Food insecurity can also lead to wars, but similarly wars contribute to food insecurity by destroying both the land and the ability to cultivate the land. Conflict represents formidable barriers to the access and availability of otherwise usable land (countries like Somalia, Sudan, Burundi, Ethiopia and Liberia come to mind).

To be sure, "[w]ithout food, people have only three options: they riot, they emigrate or they die" (borrowed from the often cited words of Josette Sheeran, the Executive Director of the UN World Food Program).

How are we to tackle this grave problem in a realistic and effective manner? Annan rightly tells us that the "[l]ack of a collective vision is irresponsible". Implicit in Annan's remarks is also a lack of leadership to effectively tackle and untie the Gordian Knot of food insecurity. The nature and colossal character of food insecurity demands action and cooperation on a global scale. Climate change and its negative impact on the environment - e.g. diminishing arable lands, water resources, recurring drought -, one of the accelerators of food insecurity, requires robust and committed international agreement and action to reduce the emission of greenhouse gases. Strict adherence and compliance with the Kyoto Protocol and the Copenhagen Accord are a must in this regard. With strategic agricultural planning, knowledge transfer and investment, uncultivated arable lands - abundant in many parts of the world, including in Africa - can become productive and bear fruit, reducing in turn the hunger crisis. Efforts to implement more balanced international trade policies which make farming viable across continents as well as efforts to eradicate corruption (by promoting good governance) are also part and parcel of the fight against hunger. So are innovative ways of thinking about establishing, say rapid response mechanisms to preempt and effectively counter famine and other food emergencies by bolstering the capacities of relevant existing international and regional organizations. We could also reduce the threat of hunger by doing more than just pay lip-serve to the UN Millennium Development Goals (MDGs) and uphold our commitments to the MDGs through sustained funding and support.

The UN and other multilateral bodies and pacts are tools we have created to work collaboratively - as best as human frailties permit - to confront global challenges and ills that threaten the social fabric of human society (whether they be food insecurity, dearth in development, war and the crimes that emanate from aggression which threaten peace and security, inter alia). Our capacity to reason, innovate, communicate and cooperate is hence an indispensible tool in our struggle to keep the peace, to protect our fundamental human rights and to satisfy our most basic needs for survival. It's time to put these faculties to work in confronting the world's food security challenges.

It is only fitting to conclude these brief remarks by quoting from the man and the lecture that inspired them. "If we pool our efforts and resources we can finally break the back of this problem", stated Annan in his call for action to defeat food insecurity. If there's a will, history tells us, change is within grasp, no matter how daunting the task. It only takes the trinity of courage, commitment and leadership.

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The Fall 2011 Europe Center distinguished “Europe Now” speaker, Robert Harrison is a research affiliate at the Center.  At Stanford University, Harrison is the Rosina Pierotti Professor of Italian Literature.  A profound thinker on medieval Italian literature, Harrison has also established himself as one of our preeminent analysts of western culture, and its preocupation through literature, religion, and mythology in the interchange of secular and sacred realms.

Professor Harrison's publications are as prodigious as they are influential.  In his first book, The Body of Beatrice (1988; editions in English and Japanese) Harrison writes of medieval Italian lyric poetry, with special emphasis on Dante's early work La Vita Nuova.  This was followed by Forests: The Shadow of Civilization, (1992; editions in English, French, Italian, German,  Japanese, and Korean), in which he deals with the multiple and complex ways in which the Western imagination has symbolized, represented, and conceived of forests, primarily in literature, religion, and mythology.  Rome, la Pluie: A Quoi Bon Littérature? (1994; editions in French, Italian, and German) takes the creative form of dialogues between two characters and deals with various topics such as art restoration, the vocation of literature, and the place of the dead in contemporary society.  His next book, Dominion of the Dead Dominion of the Dead, (2003; editions in German, French, and Italian) focuses on the relations the living maintain with the dead in diverse secular realms.  Professor Harrison's most recent book is Gardens: An Essay on the Human Condition (2008; editions in English and French).

Known widely among students and the engaged public, Robert Harrison has hosted the lively and meaningful literary talk show on Stanford KZSU radio called "Entitled Opinions". The show features wonderful hour-long conversation with a variety of scholars, writers, and scientists.  To be a student of Professor Harrison is to be mentored by one of the world’s preeminent scholars who also embodies the ideal of his humanist subjects.   To be chosen for Robert Harrison’s radio interview is to be engaged in the rich experience of making the humanities matter to our world’s deepest concerns.  In his spare time, Robert Harrison is also lead guitarist for the cerebral rock band Glass Wave.

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CREEES/FSI conference on the 20th anniversary
of the fall of the Soviet Union

WELCOME
9:30-10:00 am

Panel 1: CAUSES
10:00-11:30 am

"Post-WWII USSR: Crushed in a Daily Life Competition"
Stephen Kotkin
Rosengarten Professor of Modern and Contemporary History, Professor of International Affairs, Princeton University; W. Glenn Campbell and Rita Ricardo-Campbell National Fellow, 2010-11, the Hoover Institution

"The August Coup and the End of the Soviet Union"
John Dunlop
Senior Fellow Emeritus, the Hoover Institution

Discussant:
Amir Weiner
Associate Professor of History, Stanford University


Panel 2: COURSES
1:15-2:45pm

"The Moscow Putsch Twenty Years Later: Thoughts of a Participant Observer"
Gregory Freidin
Professor of Slavic Languages and Literatures, Stanford University

"Russia's Twists and Turns in Comparative Perspective"
Timothy Colton
Morris and Anna Felding Professor of Government and Russian Studies, Harvard University

Discussant:
Fyodor Lukyanov
Editor-in-Chief, Russia in Global Affairs


Panel 3: CONSEQUENCES
3:15-4:45pm

"Strategic Stability: Then and Now"
David Holloway
Raymond A. Spruance Professor of International History, Professor of Political Science, and Senior Fellow, Freeman Spogli Institute for International Studies, Stanford University

"Social Consequences and Legacies of the Old System and the Transition"
Kathryn Stoner-Weiss
Senior Fellow, Freeman Spogli Institute for International Studies; Deputy Director, Center for Democracy, Development, and the Rule of Law, Stanford University

Discussant:
Norman Naimark
Robert & Florence McDonnell Professor of East European Studies, Stanford University

KEYNOTE
5:00 pm
 

"The Soviet Collapse Under the Telescope or the Microscope? How to Think About Disjunctive Historical Change"
Mark Beissinger
Professor of Politics, Princeton University

Oksenberg Conference Room

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Fyodor Lukyanov is editor-in-chief of the journal Russia in Global Affairs, published in Russian and English with the participation of Foreign Affairs magazine. He has an extensive background in different Russian and international media, in which he worked from 1990 to 2002 as a commentator on international affairs.

Lukyanov now widely contributes to various media in the US, Europe and China. His monthly "Geopolitics" column appears in the Russian edition of Forbes magazine. He is a member of the Presidium of the Council on Foreign and Defense Policy, an independent organization providing foreign policy expertise and also a member of the Presidential Council on Human Rights and Civic Society Institutions.

http://creees.stanford.edu/events/DallinLectures.html

Oksenberg Conference Room

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Silvio Berlusconi has been a force in Italian politics during the past two decades. As the country’s prime minister and richest man, the media mogul managed to slip through sex scandals and criminal charges only to be forced out of office by Europe’s debt crisis.

As a new government led by economist Mario Monti takes place, Ronald Spogli talks about Berlusconi’s fall, what’s next for Italy and whether the United States should get involved in the eurozone’s tailspin. Spogli, who served as the U.S. ambassador to Italy from 2005 to 2009, is a Stanford trustee and major benefactor to the university’s Freeman Spogli Institute for International Studies.

What will Italy’s government look like under Mario Monti, and how will it trim the country’s $2.5 trillion debt?

Monti is an economist by training and has been president of Bocconi University, Italy’s most prestigious business school. He was the European Commissioner and that position earned him international influence and experience. So here’s somebody who has economic savvy, institutional gravitas, and the ability to be perceived as above politics.

The new government is expected to carry out the stability program enacted immediately before Berlusconi’s resignation on Saturday.  This law contemplates asset sales to reduce debt, among other measures.  The idea of a wealth tax has been floated in Italy – which by most measures is the richest country on the continent – as a way to immediately and significantly pay down the nation’s debt. 

The Monti government is likely to consider this and other options to reduce the country’s indebtedness.  However, it will have to gain parliamentary approval for any new laws. And depending on the nature of the bill proposed, passage of legislation could prove problematic.

How did Berlusconi manage to survive sex scandals and corruption charges, only to be brought down by Italy’s financial crisis?

I think he survived because for most Italians, his personal life was less relevant than his actions and promises as a politician who could do good things for Italy.

He came into power in 1994, and his ability to dominate Italian politics for nearly two decades has been the main story. He came in with an expectation that as Italy’s richest man and as a successful businessman, he would help jumpstart a country that had begun to stall economically. The notion was that after stagnation had begun to creep in, Silvio Berlusconi was the person to break the logjam and move Italy forward.

But for the last 20 years, Italy has had half the economic growth rate of Europe. That’s the biggest issue against Berlusconi. But nobody is 100 percent convinced that he’s really gone for good. He has an amazing ability to resurrect himself. He’s proven that throughout his political career.

How does Italy’s debt burden fit in to the rest of Europe’s economic woes?

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In terms of the sheer magnitude of the problem, the Italian circumstance dwarfs Greece’s situation and the ability of the initiatives meant to deal with other countries’ crises. The issue is whether the new Italian government will be able to calm the bond markets.

Restoring credibility is absolutely vital. The fundamental concern is that there’s no offered solution to an Italian debt problem. There is no bailout being contemplated that’s big enough to be able to deal with the issue, unlike Greece.

The euro crisis has claimed the political lives of prime ministers in Greece, Spain and Italy. Can we expect more high-profile political casualties?

It’s interesting how the markets – in such a short period of time – have forced a political change that the internal Italian political system has been unable to achieve for quite some time. It’s difficult to speculate as to whether those forces will move to more counties. But it certainly wasn’t contemplated that they’d have this impact on Italy, so its fair to say that nothing is completely off the table.

In the United States, candidates vying for the Republican nomination in next year’s election say America shouldn’t get involved in Europe’s financial mess. Is that the right attitude?

Europe is extremely important to the United States. Not just for economic reasons, but for political reasons. This is a European problem to solve. On the other hand, if it gets to the point where it continues to have a very damaging impact on the world’s capital markets, I think the resolve to keep it as an isolated problem may fade.

Beyond the narrowly defined economic impact of the crisis, we have many issues of global security that we cannot effectively deal with without the help of Europeans. If they’re going to go into a pronounced period of economic contraction, that’s going to heavily impact their ability to be a great partner for us.  Italy is a perfect example of this concern. We counted on its help in the Balkans, Afghanistan, Iraq and Lebanon. Those are expensive missions, and if the country doesn’t grow its economy, it’s harder for them to be a great American ally.  Italy’s economic situation extends to our basic international security interests.

Italy's economic crisis is the subject of a Nov. 18 presentation given by Roland Benedikter, a scholar at FSI's Europe Center. 

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Italy is the 8th biggest national economy in the world and the 3rd biggest in the Euro zone after Germany and France. Although it holds the third-largest gold reserves in the world, enjoys a high living standard with comparatively low private debts and is technologically innovative, as for example the recent takeover of parts of the U.S. car industry during the financial crisis 2008-11 underscored, it is currently considered to be the most vulnerable national economy threatened by the European debt crisis because of its huge public debt which reached 118% of the GDP in 2011. Although Italy is considered as "too big to fail" because it could hardly be saved by the European rescue funding programme with a GDP of more than 2.1 trillion Euro, there are fears that a further loss of trust by the international money markets could trigger an unprecedented crisis. Interest rates payed for Italian public debt rose to record numbers in fall 2011 due to the downgrading by leading rating agencies since summer 2011. The seminar gives a concise overview over the current state of affairs in Italy, including its debt and economic crises, and discusses their potential interweavement with the social crisis the country is undergoing in the view of international observers. In the age of media democracy, contextual political factors like social and cultural psychology, public appearances and symbolic events are increasingly impacting Italian politics and economics in ambivalent ways.

A podcast of this talk will soon be made available.

Reuben W. Hills Conference Room

Roland Benedikter Speaker
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