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Chi Zhang
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Energy Policy, one of the world's leading journals on issues related to energy economics and politics, has published an article by PESD researchers Chi Zhang, Michael May, and Thomas Heller this March documenting how changing incentives for power producers in three provinces have affected the types of plants built and operated, and the implications of those changes for emissions of carbon dioxide and other pollutants.

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The offshoring of service provision is rapidly becoming the next stage in globalization. As in any new emerging trend, there are new business and investment opportunities emerging. However, remarkably little is known about the scope of the phenomenon and what is happening in the leading corporations and the new business models entrepreneurs are introducing.

On June 17, 2005, Stanford University's Asia-Pacific Research Center is organizing a one-day seminar partially sponsored by the Alfred P. Sloan Foundation and others on the globalization of services. The presentations will be made by international and U.S. industry leaders and entrepreneurs describing their offshore service activities and leading academic researchers studying offshoring.

The conference will (1) Compare outsourcing locally and globally, examining differences that arise from differences in skills, institutions, regulations, technologies, process and coordination requirements, (2) Take a global view of the value-chain, examining the quantity and quality of skills in service delivery, migration and process management, verticals, and the impact on ownership structures and complexity of work done. (3) Examine the roles of cross-border participants: venture capital, product developers, etc..

Speakers will include representatives of established outsourcers from India, Mexico, Pakistan, the Philippines and the U.S., established multinationals that offshore work to their own subsidiaries, startups and niche firms that do cross-border work, providers of the supporting infrastructure banks, venture capitalists, law firms, etc. Academicians from Oxford University, Stanford University, the University of California and other academic bodies will also participate.

Case studies and academic papers on outsourcing/offshoring to be presented at the conference:

  1. Trade Finance (DSL)
  2. UK HR industry (Oxford University)
  3. Software and chip design (Tensilica)
  4. Software application services (TCS)
  5. Back-office finance & accounts (Agilent)
  6. Call Center/Multiple Services Firms (TRG, PLDT, I-OneSource, IT United)
  7. HR development for US firms undertaking Indian operations (Globalex)
  8. Legal aspects of establishing Indian operations (Thakker and Thakker)
  9. Network management (GTL)
  10. Enterprise software as a service (Ketera)
  11. HR and value-addition (Stanford University/UC Davis)
  12. Applying process and technology for value-addition (Gecis)
  13. Managing inhouse work (IBM Daksh)
  14. Transitioning outsourcing from the US to India (e4e)

Bechtel Conference Center

No longer in residence.

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R_Dossani_headshot.jpg PhD

Rafiq Dossani was a senior research scholar at Stanford University's Shorenstein Asia-Pacific Research Center (Shorenstein APARC) and erstwhile director of the Stanford Center for South Asia. His research interests include South Asian security, government, higher education, technology, and business.  

Dossani’s most recent book is Knowledge Perspectives of New Product Development, co-edited with D. Assimakopoulos and E. Carayannis, published in 2011 by Springer. His earlier books include Does South Asia Exist?, published in 2010 by Shorenstein APARC; India Arriving, published in 2007 by AMACOM Books/American Management Association (reprinted in India in 2008 by McGraw-Hill, and in China in 2009 by Oriental Publishing House); Prospects for Peace in South Asia, co-edited with Henry Rowen, published in 2005 by Stanford University Press; and Telecommunications Reform in India, published in 2002 by Greenwood Press. One book is under preparation: Higher Education in the BRIC Countries, co-authored with Martin Carnoy and others, to be published in 2012.

Dossani currently chairs FOCUS USA, a non-profit organization that supports emergency relief in the developing world. Between 2004 and 2010, he was a trustee of Hidden Villa, a non-profit educational organization in the Bay Area. He also serves on the board of the Industry Studies Association, and is chair of the Industry Studies Association Annual Conference for 2010–12.

Earlier, Dossani worked for the Robert Fleming Investment Banking group, first as CEO of its India operations and later as head of its San Francisco operations. He also previously served as the chairman and CEO of a stockbroking firm on the OTCEI stock exchange in India, as the deputy editor of Business India Weekly, and as a professor of finance at Pennsylvania State University.

Dossani holds a BA in economics from St. Stephen's College, New Delhi, India; an MBA from the Indian Institute of Management, Calcutta, India; and a PhD in finance from Northwestern University.

Senior Research Scholar
Executive Director, South Asia Initiative
Rafiq Dossani Speaker
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Rebecca J. Elias
Chi Zhang
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On March 18th, PESD co-hosted a workshop in Beijing, China, at the Chinese Academy of Social Sciences, that examined the success of the Chinese rural electrification program. Then on the 21st, PESD co-hosted a workshop at Tsinghua University on the introduction of natural gas in three Chinese cities: Beijing, Shanghai, and Guangdong. Please follow the links below to download the meeting agenda and presentations.

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The Energy Security Initiative (ESI) is a proposal to increase the benefits offered to countries in good standing with their NPT Obligations, to compensate for all the new supply restrictions and intrusive safeguards requirements imposed on them. The NPT Balance between benefits to signatories and impositions made on them has eroded through more restrictive interpretations of the NPT. The recently implemented Additional Protocol, the Proliferation Security Initiative (PSI) and the proposals to deny nuclear fuel cycle facilities to countries not yet operating them on the one hand, and the limited supply of low cost nuclear energy available to developing countries on the other hand, demonstrate the need to re-constitute the balance implied in the NPT. It is, in fact, in the self interest of the developed countries, to be able to offer an expanded menu of additional energy benefits to countries whose current scope of available benefits has shrank, while the costs of complying with all new restrictions imposed and proposed has increased. This is the purpose of the ESI, which represents a reinterpretation and expansion of a part of Article IV of the NPT.

This presentation includes a detailed description of what ESI could offer under a new reading of article IV; which countries could qualify as beneficiaries of such program, how much might the total program cost, and how to fund it. A special case dealing with small national enrichment plants in countries such as Iran or Brazil is also considered.

Chaim Braun is a vice president of Altos Management Partners, Inc., and a CISAC science fellow and affiliate. He is a member of the Near-Term Deployment and the Economic Cross-Cut Working Groups of the Department of Energy (DOE) Generation IV Roadmap study. He conducted several nuclear economics-related studies for the DOE Nuclear Energy Office, the Energy Information Administration, the Electric Power Research Institute, the Nuclear Energy Institute, Non-Proliferation Trust International, and others. Braun has worked as a member of Bechtel Power Corporation's Nuclear Management Group, and led studies on power plant performance and economics used to support maintenance services. Braun has worked on a study of safeguarding the Agreed Framework in North Korea, he was the co-leader of a NATO Study of Terrorist Threats to Nuclear Power Plants, led CISAC's Summer Study on Terrorist Threats to Research Reactors, and most recently co-authored an article with CISAC Co-Director Chris Chyba on nuclear proliferation rings. His research project this year is entitled "The Energy Security Initiative and a Nuclear Fuel Cycle Center: Two Enhancement Options for the Current Non-Proliferation Regime."

Reuben W. Hills Conference Room, East 207, Encina Hall

Chaim Braun
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In December 1997, Kim Dae-jung, longtime opposition leader and survivor of multiple assassination attempts, imprisonment, exile and political persecution, was elected the eighth president of the Republic of Korea, marking the first transition of power from the ruling to the opposition party in Korea's modern history. President Kim was immediately faced with an unprecedented financial crisis and strained relations with North Korea. He devoted himself to economic recovery and reform, pulling Korea back from the brink of bankruptcy. In February 1998, he announced his intentions to pursue what he called the "sunshine policy" with North Korea in hopes of encouraging greater discussion and cooperation with Seoul's northern neighbor. In December 2000, the Norwegian Nobel Committee, in recognition of his "extraordinary and lifelong works for democracy and human rights in South Korea and East Asia in general, and for peace and reconciliation with North Korea in particular," awarded the him the Nobel Peace Prize.

On his first visit to the United States since leaving the presidency, his Excellency Kim Dae-jung, former President of the Republic of Korea and Nobel Peace Prize Laureate, delivered a major lecture on inter-Korean relations and the future of the Korean peninsula. The lecture, which took place at Stanford on April 27, was sponsored by APARC's Walter H. Shorenstein Forum and the Asia Society.

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Please join the Walter H. Shorenstein Forum at the Asia-Pacific Research Center and the Asia Foundation for an evening with His Excellency Kim Dae-jung, Former President of the Republic of Korea and Nobel Peace Prize Laureate.

In December 1997, Kim Dae-jung, longtime opposition leader and survivor of multiple assassination attempts, imprisonment, exile and political persecution, was elected the eighth president of the Republic of Korea, marking the first transition of power from the ruling to the opposition party in Korea's modern history. President Kim was immediately faced with an unprecedented financial crisis and strained relations with North Korea. He devoted himself to economic recovery and reform, pulling Korea back from the brink of bankruptcy. In February 1998, he announced his intentions to pursue what he called the "sunshine policy" with North Korea in hopes of encouraging greater discussion and cooperation with Seoul's northern neighbor. In December 2000, the Norwegian Nobel Committee, in recognition of his "extraordinary and lifelong works for democracy and human rights in South Korea and East Asia in general, and for peace and reconciliation with North Korea in particular," awarded the him the Nobel Peace Prize.

On his first visit to the United States since leaving the presidency, Kim Dae-jung will address the challenges for the Republic of Korea in its continued engagement with North Korea and future of the Korean Peninsula.

Stanford Faculty Club
439 Lagunita Drive
Stanford, CA

His Excellency Kim Dae-jung Former President of the Republic of Korea and Nobel Peace Prize Recipient Speaker
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Senior fellow and contributing author, %people1%, comments in <i>Nature</i> on the release of the Millennium Ecosystem Assessment--a four year endeavour that explores the link between human well-being, the status of ecosystems and their sustainable use.

How can ecosystems provide sustainable services to benefit society?

Four years in the making, the Millennium Ecosystem Assessment (see Nature 417, 112-113; 2002) is released this week (starting 30 March). This gigantic endeavour explores the link between human well-being, the status of ecosystems and their sustainable use.

What has this assessment taught us about developing our planet, and will it, or should it, be continued? To answer the first part of this question, the assessment is an invaluable record of where we stand now, and why. But for it to be useful, the answer to the second part of the question must be 'yes'. We need to take a consistent approach to measuring the status and trends of the world's ecosystems. To take one example, the Convention on Biological Diversity has set the target of reducing the rate of global loss of biodiversity by 2010. But the data to evaluate whether this goal is being met are not readily available, as biological diversity is more than just an enumeration of species present or absent - it includes parameters such as the populations of species and the ecosystems in which they reside. In addition, biodiversity is just one of the many aspects of change in ecosystems and their related functions assessed in the Millennium Ecosystem Assessment. Only from a periodic audit of the state of our natural resource base can we determine if we are indeed approaching sustainability.

At present, there are no formal plans to repeat the Millennium Assessment. There should be, and we hope that the informal discussions among the current sponsors will bear fruit from the seeds sown by the many smaller, ongoing sub-global assessments that were stimulated by the assessment.

Achievements and goals

The Millennium Ecosystem Assessment took a new pathway of evaluating the status of the Earth's human support systems. Rather than the standard environmental audit, the new assessment places audits of numbers of organisms and so on into the context of how ecosystem changes have affected human well-being, and how they may do so in the foreseeable future. It had to find a link between the status of biotic systems and the status of individuals in various societies in the world to estimate the capacity of ecosystems to provide services that benefit society. Many of these links are obvious, but others have not been appreciated, nor have all these linkages been quantified. In essence, we had to make a large leap from the current styles of evaluations of status and trends in ecosystems to an entirely different approach - an ecosystems services database related to how ecosystems and societies operate, and how they interrelate.

Current status of ecosystems

Human societies have made marked progress in increasing provisioning services, such as crops and livestock, to meet the demand of a growing population (see Box 1). Food is more abundant and cheaper than in the past. Despite these dramatic accomplishments, there are still more than 850 million undernourished people, and some advances in production are at the cost of other services essential for human well-being, such as ocean fisheries, wood for fuel, genetic resources and - perhaps the most important - fresh water. It is the poor in many nations that are most directly dependent on services from ecosystems, and the degradation of these systems can exacerbate their poverty. Millions of people face the reality of the declining availability of cheap protein from local fisheries, inadequate water for sanitation or live on degraded landscapes.

There are a number of issues that cloud the goal of sustaining a high level of provisioning services. The use of fertilizer in agriculture has greatly increased to meet food demand, but at the cost of polluting off-site unmanaged ecosystems, such as groundwater, rivers and coastal fisheries. In many regions, water for irrigation is being pumped from groundwater and in some cases from fossil sources. Rivers are dammed and diverted for irrigation, altering ecosystems that depend on this water - causing the loss of many of the services they provided.

Further, we are diminishing crucial 'regulating' services responsible for climate, erosion, air- and water-quality control, as well as for the regulation of pests and natural hazards. We are losing these services due to massive land-surface conversion, atmosphere alteration, eutrophication, overharvesting and the impact of invasive species. The Millennium Assessment concluded that 60% of the ecosystem services evaluated were either being degraded or being used unsustainably.

As an example, cultivated systems (areas where at least 30% of the landscape is in croplands, confined livestock production or freshwater aquaculture) now cover a quarter of the Earth's surface, partly by conversion of temperate grasslands, Mediterranean-climate forests and many tropical ecosystem types. Forests have essentially disappeared from 25 countries, with 9.4 million hectares being lost annually from the Earth's surface. Historically important fisheries have collapsed or are overfished, one third of the mangrove forests for which there are historical data have been lost, as have 20% of the coral reefs, with a further 20% degraded. Nearly 40% of the rivers of the world have been fragmented. Species and populations of species are being lost at unprecedented rates, while at the same time the global biota is becoming homogenized owing to the introductions of alien species to new regions. These examples represent major losses of pieces of the biosphere machinery, which have a serious impact on the delivery of ecosystem-regulating services - impacts such as greater prevalence of infectious diseases in disrupted ecosystems, adverse effects on local climates by ecosystem modification, and the loss of flood protection (as in the recent tsunami in Indonesia).

What we can do

The drivers of change in ecosystems and their services will continue in direction and intensity. So how can these trends be reversed to achieve sustainability and to relieve the negative impacts of the loss of services to society, particularly to the disadvantaged? New pathways and approaches can and must be taken. But these are major initiatives, which will mean profound changes in the way global society operates. As learned in the Millennium Assessment, favourable responses need to take place at all levels, from the local to the global. Global mechanisms do not necessarily solve local problems, yet are an important part of the overall solution. At the same time, local players and solutions can feed into regional and global approaches. The players at these different levels address different decision-makers, who can collectively put in place the major changes that are needed for ecosystem sustainability.

The Millennium Assessment examines the merits of options for mechanisms and policies, to accomplish the goal of maintaining and enhancing the delivery of ecosystem services to society. Some of these require major reorganization in the way we do business. At present, our organizational structures address separately the issues of a single resource, such as agriculture, fisheries or the environment. There is little interaction within and between each issue, and much less again with trade and the treasury bodies. The lesson of the Millennium Assessment is that all these resource issues are interrelated: action on one issue has consequences for another. It is crucial to address how to minimize the trade-offs (biodiversity or clean water for agricultural yield), either on-site or by managing landscapes. One important example of how this process can work is the EU system of directives for nitrate accounting on landscapes.

Some institutional innovations are moving towards more integrated views of issues and responses to them. For example, Britain has a government department for Environment, Food and Rural Affairs. These are all closely interrelated domains, but in other countries are often handled by competing agencies. Elsewhere, interagency groups are evolving to address central issues such as climate change, but their effectiveness is hampered by competitiveness and politics. We need new kinds of institutions in better positions to achieve sustainability of ecosystems that provide for human well-being.

We must also try to improve the economics. Although provisioning services are enmeshed in the local (and increasingly global) marketplace, regulating services are not. We must accelerate our ability to value ecosystem-regulating services at the national level, as well as the ecosystem services that provide crucial cultural amenities, and ensure that these values are considered in decision-making.

Some progress is being made. Costa Rica has established a system of conservation payments, under which contracts are brokered between international and domestic 'buyers' and local 'sellers' of sequestered carbon, biodiversity, watershed services and scenic beauty. On a global scale, the Ecosystem Marketplace consortium is beginning to track transactions, pricing trends and buyers' requests on the carbon, water and biodiversity markets. It is predicted that the global carbon market will reach US$44 billion by 2010.

We need to eliminate the subsidies that promote the excessive use of ecosystem services and evaluate more carefully the trade incentives that damage ecosystem services. We must work harder to educate the public on the strong links between sustainable ecosystems and the lives of humans. The role of new technologies in more efficient use of natural resources is crucial and needs more incentives.

There is plenty that can and needs to be done to deal with the crisis that has already enveloped us. The path is open for scientists to quantify, to a much greater extent, the way in which the operation of ecosystems is directly linked to human well-being, and hence model the course of human activities on future outcomes of the delivery of these services. The Millennium Assessment is certainly providing a strong stimulus for such studies.

Millennium Assessment

Acknowledgements. We thank the scientists, reviewers and members of the review board who provided input to the Millennium Ecosystem Assessment, and the sponsors of this work.

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