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To illustrate the worst-case scenario for China in the near future, Scott Rozelle pulls up a picture from Mexico. It's a completely barren manufacturing warehouse, abandoned after wages in Mexico rose to more than four dollars per hour.

Following its manufacturing moment in the 1980s, Mexico has been struggling to create jobs in part because 40 percent of its workers lack a high school education, the Stanford University Professor of Economics said.

Contrast this to South Korea, where almost the entire workforce has attained a high school degree. After manufacturing jobs left South Korea in the 1980s, he said, well-educated workers were able to upgrade to technical jobs like chip manufacturing and computer assembly.

The question for China is: South Korea or Mexico? Rozelle said.

With rising labor costs, China is under pressure to upgrade from low-cost manufacturing to high-tech production. But it's still an open question as to whether China's labor force will have the education levels to take on these new roles, or if the jobs will move elsewhere as they did from Mexico in the last few decades.

The odds are stacked against China. In some parts of the country, China's labor force more resembles Mexico's than South Korea's, with about 40 percent of workers in the poorest rural areas (China's 592 "nationally-designated poor counties," as deemed by China's anti-poverty authorities) lacking a high school education, Rozelle said.

Furthermore, the financial hurdles to attaining higher education are the highest in the world, illustrated most recently by a series of studies conducted by the Rural Education Action Project (REAP)—an umbrella group that includes Rozelle's Stanford University, Tsinghua University, the Chinese Academy of Sciences, Peking University and the Xi'an-based Northwest University.

In one REAP study of 62 nations, China claimed the highest tuition price for public rural high schools: $160 per student per semester, not including costs like housing and everyday living expenses. This is nearly three times the world's second-highest tuition in Indonesia, which also fully subsidizes the education costs of children under the poverty line.

It's also a stark contrast to the fact that the vast majority of nations—93 percent of those studied—fully subsidize education, including places like Brazil, India and Kenya.

The high costs of education will become even more problematic, Rozelle said, once China's economy begins to restructure towards higher-value production. If the skill levels of the labor force cannot keep up, China will be caught in a middle-income trap, he said, possibly leading to high unemployment and social strife—not unlike what is plaguing Mexico now, he said.

Even a small subsidy could push thousands of students into high school. In REAP's most recent study, Rozelle and his colleagues took 250 junior high classes in Shaaxi Province and selected the two poorest students from each, providing one with a 1,500 to 2,500 yuan subsidy. The survey revealed that 51 percent of students who had received the subsidy were admitted to high school in the fall of 2010, while only 38 percent without the subsidy enrolled.

To some degree, the Chinese government has recognized the importance of limiting the costs of education. In 2009, officials enacted a policy to reduce high school tuition costs, providing 20 percent of students in central regions and 30 percent in the China's western parts with scholarships ranging between 1,000 and 3,300 yuan annually.

But the policy has proved somewhat illusory: In its 2011 survey of more than 3,000 students in Shaanxi Province, REAP discovered that less than five percent of the targeted students had actually received the subsidies.

In advance of the Pacific Energy Summit that will take place in Hanoi, Vietnam on March 20-22, PESD associate director Mark Thurber spoke with Jacqueline Koch of the National Bureau of Asian Research about the pivotal role of coal in Asia’s power generation mix and what “clean coal” means in the Asian context.

The 2012 SPICE catalog is now available.  SPICE developed five new curriculum units in 2011.

Nuclear Tipping Point: A Teacher's Guide

The documentary Nuclear Tipping Point tells the story of how four Cold War-era leaders—former Secretary of State George Shultz, former Secretary of Defense Bill Perry, former Secretary of State Henry Kissinger, and former Senator Sam Nunn—came together to address the threat of nuclear power falling into the wrong hands. Produced by the Nuclear Threat Initiative (NTI), the film is narrated by actor Michael Douglas and earned wide media attention when it came out in 2010. 

Now, through a partnership between SPICE and NTI, the film is accompanied by a new teacher’s guide for classroom use of the documentary. The guide underscores the importance of teaching for critical literacy and addresses specific connections to the National Standards for History in the Schools. Student activities include multiple choice quizzes, persuasive writing and analysis, and ideas for creative projects. 

China in Transition: Economic Development, Migration, and Education

China in Transition introduces students to modern China as a case study of economic development. What are the characteristics of the development process, and why does it occur? How is development experienced by the people who live through it, and how are their lives impacted? How do traditional cultural values—such as China’s emphasis on education—contribute to and/or evolve as a result of modernization? Students examine these questions and others as they investigate the roles that migration, urbanization, wealth, poverty, and education play in a country in transition.

Legacies of the Vietnam War

The 20-year war in Vietnam was a prolonged and devastating conflict. In its aftermath, South Vietnamese civilians fled from the Communist takeover on perilous boat journeys that led to the formation of diasporic communities. Others faced lengthy detention in post-war re-education camps. This unit aims to help students learn and appreciate these and other important legacies that have shaped Vietnam and the world at large.

Angel Island: The Chinese-American Experience

Angel Island: The Chinese-American Experience is a graphic novel that tells the story of Chinese immigrants detained at Angel Island Immigration Station in San Francisco Bay between 1910 and 1940. It offers a stark contrast to the more celebrated stories of European immigrants arriving at Ellis Island on the East Coast and poses important questions about U.S. immigration policy, both past and present.

An Introduction to Ukraine

As the second-largest country in Europe, Ukraine has always stood at a crossroads of cultural influences. It is a key part of Europe–and the management of its relationships with other countries (in particular, Russia) is key to the future of the whole of eastern Europe. This unit seeks to provide high school teachers and students with a broad introduction to Ukrainian history with activities that touch upon Ukrainian culture.

Since opening its doors to the world in 1978, China has pursued a sometimes erratic but reasonably steady course leading to increasing global economic and political interaction. Its interests now extend from Pyongyang to New York and Sydney to Riyadh. U.S. President Barack Obama’s announcement of a new “pivot” toward Asia, recent events on the Korean Peninsula, and China’s upcoming leadership transition provide additional reasons to seek greater understanding of China’s goals and interactions with other nations.

Thomas Fingar, Stanford’s Oksenberg-Rohlen Distinguished Fellow, is leading a new multiphase Shorenstein Asia-Pacific Research Center (Shorenstein APARC) initiative to explore the nuances and complexity of China’s foreign relations and domestic issues. The China and the World research project aims to contextualize and better understand China’s regional and global interactions, both from the perspective of China itself and from that of other countries. Beginning with Northeast Asia, the project will analyze China’s relations region-by-region throughout the world, and will involve experts from Stanford, China, and the regions studied. It kicks off with a Shorenstein APARC-organized workshop held Mar. 19 and 20 at the new Stanford Center at Peking University.

Fingar discusses the development of China’s foreign relations since 1978, and describes the project and workshop’s background.

In the three decades since Deng Xiaoping enacted his 1978 Open Door reforms, what have been the main trends in China’s global engagement?

The general trend since 1978 has been for China to become increasingly active and engaged in a growing number of places around the world. There have been a number of phases to this.

The “honeymoon period” of U.S.-China relations (1979–1989) was a period of essentially no competition to China’s interaction within the U.S.-led world economic system. China concentrated on the OECD countries—especially the United States, Japan, and Western Europe—that had money to invest and willingness to trade.

After the 1989 Tiananmen Square Incident, China’s international options became more constrained as its relations with the developed world plateaued. It began to reach out to the places that would deal with it: Southeast Asia and particularly Africa. This was in part diplomatically motivated, and in part a search for new markets for the low-end goods it was beginning to produce. It was also the beginning of its search for energy.

Around 2000, China transitioned from building a more modern economy towards being one—beginning the era of its “rise.” China’s demand for resources went up, as did its capacity to supply more markets and its ability to invest more of its growing foreign exchange earnings. It became globally active, proclaiming that it had a new, less exploitative model than what the United States and Europe offered.

What Northeast Asia issues do you think China will focus on this year, especially as it plans for a major leadership transition?

North Korea’s stability and China’s growing investments in the DPRK. Beijing is acutely interested in whether Kim Jong Un will prove a viable leader and whether the regime will be able to manage its new challenges. China is concerned about possible North Korean provocations that might trigger responses by South Korea and/or the United States, putting at risk the peaceful regional and international situation China needs for its political and economic development.

The second issue is answering the question: what does the U.S. pivot toward Asia mean? What does it mean in terms of security, economics, and relations with Japan and Korea? China is the largest trading partner for each of these countries. They value it as a market, and as a source of resources. Yet they also worry about being excessively dependent on China. They appear not to have worried about this quite so much when their dependence on the U.S. market was comparable.

Two full workshop sessions will be devoted to Japan and South Korea, both countries with close U.S. ties. What are the most important factors with regard to China’s rise for these two countries? What about for Southeast Asia?

One of the reasons for our upcoming Beijing workshop is to develop a general template of questions we can ask for each region. We want to avoid focusing the questions too narrowly on Northeast Asia.

For Japan and Korea, one factor has to do with economic opportunities and with their own vulnerabilities. The other has to do with the security challenges of China’s rise, and the uncertainty of its military aspirations. Japan and Korea do not want to be drawn into U.S.-led activities, but they still value the United States for protection. They are concerned about managing the decoupling of economic and security dependence, about no longer being dependent on the same country for both.

Many regional issues are interrelated, such as maritime territorial claims and naval expansion. China is an economic player in Southeast Asia, and the Philippines and Thailand have an alliance with the United States. Indonesia is a rising county in Southeast Asia, and India is an outside player in the region. The U.S. 7th Fleet currently defends the shipping lanes to Northeast Asia that go through Southeast Asia, which probably is not the long-term solution.  

Russia played an important role in shaping the political ideology in the early days of the People’s Republic of China, and the politics of both countries—especially Russia—have changed so much. What is their relationship like now?

Correct and limited. The West imposed a military hardware embargo on China after Tiananmen, so Russia is a limited alternative for that, and it is also a source of energy and other resources. It is fair to say China has something close to disdain for Russia, for what it sees as political confusion and economic mismanagement. The idea of a strategic triangle—using Russia to balance U.S. influence—is something China sees as unviable.

As you move forward with this project, what is the ultimate goal?

The goal is to understand the dynamics of interaction—to understand the bigger picture. Other countries have objectives and concerns with regard to China, while China has objectives and concerns of its own. It is about identifying things such as where they see the same and different kinds of opportunities; what concerns they have about third country interests or involvement; and how they evaluate the success of policies to date.  

On January 24, Madeline Rees, former U.N. high commissioner for human rights in Bosnia and secretary general for the Women’s International League for Peace and Freedom, spoke at the second installment of the Sanela Diana Jenkins International Speaker Series. Rees, has been working with the CDDRL Program on Human Rights to promote research on human trafficking, posed an interesting question: can extraterritorial jurisdiction — the legal ability of a government to exercise authority beyond its borders — be a tool for improving accountability for human rights abuse during peacekeeping operations?

Rees was referring to a situation that she experienced in Bosnia where peacekeepers reportedly abused, tortured and actively trafficked women and girls. She noted, however, that there have been similar situations and accusations of sexual exploitation and abuse, including sex trafficking, in U.N. missions ranging from Cambodia to Haiti to Congo since the 1990s. Rees argued that these abuses and the involvement of peacekeepers in human trafficking in particular, result from a combination of factors, which include:

• The perception of immunity (based on UN peacekeepers status)
• Impunity that results from the lack of specific legislation and enforcement mechanisms
• Lack of formal training
• Peer pressure
• Patriarchic militarized model of peacekeeping

There has been some slow progress. Rees recalled that when she first brought up the issue of human trafficking to the U.N., laughter was a common response. Her struggle, portrayed in part in the recent film The Whistleblower, has enabled an open discussion within the U.N. In 2007, the U.N. created the Department of Field Support and made some structural changes, but these reforms have not yet addressed the heart of the problem. In part, Rees believes, this is because the U.N. has lacked the political will to hold peacekeepers accountable for their actions.

Riding around on the back of a motorcycle in 2009, Jeremy Menchik snapped photos of hundreds of Indonesian campaign posters. That number has now grown to over 5000 images, which Menchik and Colm Fox have painstakingly coded and analyzed to better understand the politics of identity in Indonesia. The initial results of their research reveal similarities between the United States and Indonesia, and shed light on the transitional democracies of the Arab Spring.

Menchik is a 2011–12 Shorenstein Fellow at Stanford University, and will take up a position as an assistant professor in international relations at Boston University in 2013.

Fox is a doctoral student at the George Washington University’s Department of Political Science.

How important is political identity in Indonesia? Why?

Indonesia is the largest Muslim-majority country in the world, and one of the most diverse. But what we found was that rather than being unique, Indonesian politicians behave remarkably similar to American politicians in using a variety of regional, religious, and ethnic identity symbols to court voters.

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What is an important factor in determining a candidate’s use of identity symbols?

What we found is that the election rules matter, a lot. Candidates are far more likely to use religious and ethnic symbols in a plurality (“winner-take-all”) system like the United States than in a proportional representation system (PR) like Indonesia. This is an important finding, because tinkering with election rules is one of the tools that international relations practitioners can use to reduce ethnic and sectarian violence. And what we are saying is that it works. Changing election rules can change the types and levels of identities that are politicized. And that is an important lesson for conflict resolution.

What are some of the most surprising results to come out of your research?

The first is how badly the dominant explanations for identity politics—modernization theory and secularization theory—fared when they were tested on a large dataset. We are at an interesting juncture in time, where our theories of religion and politics have not caught up with the way the world works.

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During last year’s Arab Spring, the ideal of democracy was celebrated throughout the world. How might your research shed light on understanding the complexities of these transitioning democracies?

Well this research has clear implications for the Arab Spring, particularly for understanding the future of Egypt. Just because religious parties like the Muslim Brotherhood or the Salafist Nour party come into office does not mean that democracy is doomed, or that religious minorities are going to suffer. As long as secular Muslims, Christians, liberals, and other groups have a stake in elections, we are likely to see cross-ethnic and cross-religious coalitions emerge. This is a very good thing. One obvious difference, however, is that we did not see a lot of overt military participation in politics in Indonesia after 1999. The military was largely absent. And that is one way that Egypt is very different from Indonesia. If there is a big threat to democracy in Egypt, it is not coming from the politicization of identity—it is coming from the suppression of the people's voice by the military.

The Asia Pacific Observatory of Health Systems and Policies (APO) is a new regional initiative to promote evidence-based health policymaking in the Asia-Pacific region. The Observatory represents a unique partnership of governments, development agencies, and the research community working together to support policymakers to develop health systems that are equitable, efficient, responsive, and transparent.

At the Steering Committee meeting in Bangkok in late January, the appointed members of the APO Research Advisory Group met for the first time, including Karen Eggleston, director of Stanford’s Asia Health Policy Program.

The APO has prepared two Health Systems in Transition reports providing in-depth profiles of the health systems of the Philippines and Fiji. Additional country health system profiles and policy briefs will be published in 2012. The research and analysis generated by the Observatory is considered as a public good and is freely available at the APO website.