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REAP Co-Director Scott Rozelle recently spoke at a Lung Yingtai Cultural Foundation (龍應台文化基金會) event about China and the middle income trap. Using the contrasting experiences of South Korea and Mexico as a guide, Rozelle provided a glimpse into the economic ramifications of allowing the gap between rural and urban education in China to grow wider. Read the CommonWealth Magazine article in Chinese here.

Universities in China have been urged to enroll more students from rural areas in a major effort to close the gap between rural and urban higher education. The Chinese government announced at a State Council Standing Committee meeting on May 15th, the decision to increase the quota of students from poor rural areas attending key universities from 10,000 to 30,000 this year. The Rural Education Action Program has submitted official policy briefs to the State Council in support of this and other long-term policies to improve the education level of rural students, and continues to partner with policymakers across China to close the rural-urban education gap. Read more about the announcement on the Pheonix New Media website in Chinese here.

Jack Ma, the founder of Alibaba Group,made his last public speech before stepping down as CEO at an event co-hosted by Alibaba Group and the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) of the Graduate School of Business at Stanford University on May 4. Dr. Jian Wang, the company’s chief technology officer, was also a featured speaker at the event, which was put on in partnership with the Greater China Business Club of the Stanford Graduate School of Business.

“No Silicon Valley, No Alibaba”

Ma began his talk by acknowledging how his Silicon Valley days encouraged him to pursue a career as an internet entrepreneur: “The street lights in Silicon Valley and the late night conversations in restaurants energized me.” Inspired by the tech boom, Ma returned to his hometown of Hangzhou to follow his dream in the mid-1990s.

At first Ma faced lots of skepticism, as people did not believe that e-commerce would be successful in China where a credit system had not been developed so consumers didn’t have access to the credit cards that made conducting transactions online so easy in the U.S. Despite the initial setbacks, Ma built Alibaba into one of the largest internet companies in China.

“No Money, No Technology, and No Plan”

These are the three reasons that Ma offered for Alibaba’s success. When he first arrived in Hangzhou, Ma was an English teacher with limited wealth and resources, but he had a vision of creating a company that would “make it easy to do business anywhere in the world.” He and his cash-strapped team thought carefully about the most innovative and cost-effective ways to build the business of their dreams.

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Ma stated that “he doesn’t make plans,” explaining Alibaba's constant readiness to adapt to technological advances. Since Alibaba’s inception, Ma always encouraged his employees to embrace change. Ma advised business students not to stick to their business plans, as the world is fast changing and effective global leaders must know how to manage the fast turnover of technology and the turn of events.

China in the Next 30 Years

China will experience tremendous changes in the next 30 years. The Chinese economy will transition from the selling to the world to selling to a major domestic consumer market. Technology will play an even more important role as it continues to touch almost every aspect of people’s lives. Additionally, mobile will potentially become a bigger market than PCs in China. The next wave of mobile penetration will come from the second and third-tier cities that have relatively low computer penetration rates.

“But change creates opportunities for ordinary people like you and me,” noted Ma. The significant changes in China will offer young people opportunities to shine as technology has leveled the playing field.

Once in your life, try something. Work hard at something. Try to change. Nothing bad can happen.
    -- Jack Ma, Founder & Executive Chairman, Alibaba GroupIt is against this transformative context that Alibaba will continue to stay true to its original mission— making doing businesses easy anywhere in the world, Ma stated. For example, Alibaba’s SME-loans business aims to finance private enterprises that historically faced difficulties raising capital. Alibaba cloud computing service (AliCloud) is another example of the company’s products that will influence China’s digitization, according to CTO Jian Wang. AliCloud has already made contributions to the broadcasts of 2012 London Olympics and the official digital catalogue of drugs in China, Wang noted.

“In the industrial age, winning was determined by size and depth; in the information and technology era, it is ruled by innovation and individualism,” Ma argued.

As Ma concluded his talk, he shared his final insights with the assembled Stanford students and Silicon Valley professionals: “Once in your life, try something. Work hard at something. Try to change. Nothing bad can happen.”

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Dr. Jian Wang, Alibaba’s CTO and the first keynote speaker, opened his speech with a discussion of Alibaba’s technology. Alibaba Group currently operates one of China’s largest online marketplaces, a payment network, and is also producing a mobile OS. Due to its scale, the company faces challenges few others do: Alibaba has processed over 100 million transactions and nearly 60% of the internet’s fraudulent websites have been discovered through the company’s tools. Alibaba also maintains a cloud computing service. What makes Dr. Wang most excited, however, is Aliloans—the company’s foray into finance. “The smallest loan made has been one yuan,” he announced excitedly, “and we do it on credit!” This is a big step in a country where it has traditionally been difficult for ordinary people to secure a loan.

After Dr. Wang’s speech, Founder and CEO Jack Ma took to the stage to discuss Alibaba from a less technical perspective. “Why did we survive the internet bubble and grow to become the company we are today?” he asked the audience. His answer: “Because first, we didn’t have money; second, I don’t understand technology; and finally, I never planned.” Elaborating on his management style, he explained that a lack of money forced the company to be scrappy in its early days; because he couldn’t understand technology, Mr. Ma wasn’t prone to micromanaging his engineers; and finally, because he never confined himself to business plans, Mr. Ma was able to take advantage of unforeseen changes. As he put it, a business plan for a website in 1999 that connected Chinese manufacturers with Western buyers would never have included starting China’s equivalent to eBay or creating a financial-services unit.

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Dr. Jian Wang, Alibaba Group's CTO, spoke at the event.

“We live in an epic era, both the best of times and the worst of times,” he commented. “In order to change the world, one needs an idea and the ability to execute on it; but execution isn’t enough, and competition is harsh. Success comes from living at the right time, having good friends, and luck.” Responding to the question of how to build a good company culture, he responded that there’s no such thing as a “good” culture; only a culture that fits certain kinds of people. “It’s like the relationship between a husband and wife.” That said, he mentioned his belief that Alibaba is different from other big-name technology companies because of an emphasis on learning. Alibaba doesn’t necessarily hire the best and brightest, but those most willing to learn about things outside their area of expertise.

In the week after securing a US $8 billion loan and announcing a US $586 million investment in Sina Weibo, Mr. Ma came across as relaxed and optimistic. Though he claimed to be “too old for the internet” and will step down from his role as CEO shortly, Mr. Ma ended his speech by inviting the audience to consider working in China, even if it’s not at Alibaba, and most importantly, to “enjoy life and be healthy.”

Comparative, policy-oriented research aimed at improving health care and the overall quality of life across the Asia-Pacific region is at the heart of AHPP’s mission and activities. As a research program within a world-class university, focusing exclusively on comparative health policy in Asia, it is unique. AHPP aims to provide evidence for addressing key health policy challenges in the Asia-Pacific, from links between poverty and ill health, to improving “value for money” and defining appropriate government and market roles in health systems. The program brings researchers to Stanford for on-site collaboration, and creates opportunities for Stanford students to conduct research in and about Asia.

The study of comparative health policy at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) dates back almost a quarter century, with its roots in the Comparative Health Care Policy Research Project inaugurated in 1990. Starting with pioneering research on health economics in Japan, the program has expanded since then to encompass research on health policy and demographic change throughout the region, albeit with a continuing focus on East Asia in comparative perspective.

Collaborative initiatives and global researchers

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AHPP is also analyzing evidence on health service delivery and financing in the Asia-Pacific region, such as the impact of expanding insurance coverage, reforming provider payment incentives, and contracting with the private sector. In addition, the program is conducting a comparative analysis of the historical development of health care institutions — like physician drug dispensing and recent reforms to separate prescribing from dispensing. AHPP also sponsors collaborative initiatives to address critical global health issues, including tobacco control, promotion of child health, and control of infectious diseases.

Preparing future health care policy experts

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In addition to numerous peer-reviewed journal articles, recent AHPP publications include Aging Asia: The Economic and Social Implications of Rapid Demographic Change in China, Japan, and South Korea and Prescribing Cultures and Pharmaceutical Policy in the Asia-Pacific. AHPP also runs its own working paper series that is open to scholars and health policy experts around the world.

Annual workshops and engaging seminars

Each year, AHPP assembles some of the world’s greatest health policy minds at Stanford to examine focused topics at conferences and workshops, resulting in special issues of journals, edited volumes, and ongoing collaborative research. In this thirtieth anniversary year of Shorenstein APARC, director Karen Eggleston organized a conference on “Economic Aspects of Population Aging in China and India,” co-sponsored by several related research programs at Harvard University.

In addition, AHPP organizes numerous public seminars throughout the academic year. Recent topics have included the battle against HIV/AIDS in Cambodia; immunizations and child health in Bangladesh; population aging in Japan; Vietnam’s health policy challenges; tobacco control in China; air pollution in South Asia; private health insurance in South Korea; and many other important health policy-related issues.

For almost two decades, the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) produced outstanding work in Korean affairs but lacked a separate program for Korean studies; by the turn of the millennium, however, it was clear that more attention and resources needed to be devoted to Korea. Between 1960 and 1990, capitalist South Korea had risen from the devastation of the Korean War to produce an economic “miracle on the Han River,” followed soon by full democratization. In the process, it became a global model of development. Meanwhile, North Korea was pursuing nuclear weapons and long-range missiles while maintaining one of the world’s last Stalinist systems, even outlasting the Soviet Union itself despite a devastating famine in the mid-1990s, and the regime’s threats presented a major concern to policymakers. Together, the two Korean states with radically different systems, competing for hegemony on the divided Korean Peninsula, constituted an unparalleled “natural experiment” for social scientists.

Since 2001 when Gi-Wook Shin was invited to found a program within Shorenstein APARC, the Stanford Korean Studies Program (KSP) has developed into a world-renowned center offering impactful programs addressing current, policy-relevant issues and events. KSP sponsors conferences and workshops that bring together leading Korea scholars and policymakers for meaningful dialogue. Special events afford the general public the opportunity to engage with distinguished practitioners as well as emerging scholars. KSP also supports fellowships, collaborates with a broad range of visiting scholars, publishes award-winning books and reports, and offers commentary to leading media.

Amassing talent to create a premier program

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From its one-person beginning a decade ago, KSP now has faculty members in sociology, history, and literature, with two more appointments pending. In addition, KSP has two full-time staff members and a research assistant. A Korean language lecturer and a Korean Studies librarian support program activities. KSP taps into the rich array of Stanford-based faculty and senior fellows who conduct policy-related research on Korea within FSI-affiliated centers and programs, and at the neighboring Hoover Institution.

KSP has sponsored collaborative research projects on a range of Korea-related subjects. The South Korean National Assembly Project considered the generational change under way in South Korea’s government and its political and ideological implications, specifically how such changes affect Assembly votes—and Korean policy—on major issues. Other projects focus on mass media and U.S.-Korea relations, including the ROK-U.S. West Coast Strategic Forum, the Korean experience of historical injustice and reconciliation, and a book series on Korean democratization sponsored by the Academy of Korean Studies. Findings from such groundbreaking projects are regularly presented at KSP seminars and conferences, and published as books and journal articles.

A next generation of scholars

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Each year, KSP offers outstanding opportunities for fellowships and visiting scholars from Korea and elsewhere. With generous fellowship support from the Pantech Group and the Koret Foundation, KSP has hosted over 100 alumni, including two former South Korean foreign ministers, former senior officials from the United States, South Korea, and China, and leading Korea scholars and experts. These visiting scholars participate intensively in KSP research, educational, and outreach programs, and continue their association with the program after leaving Stanford through an active alumni association.

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John Everard, former British ambassador to Pyongyang and a Pantech Fellow, speaks on North Korea at the annual Koret Conference, part of the 2011 celebration of Stanford KSP’s tenth anniversary. (Credit: Rod Searcey)

Students from Seoul’s Hana Academy perform traditional Korean music for participants of the Hana-Stanford Conference on Korea. (Credit: Rod Searcey)

In 2007, in recognition of the importance of developing a program devoted to the study of contemporary China, the Stanford China Program (SCP) was established within the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC), which for decades had already been the home for extensive research on China at Stanford University; within a few short years, SCP has become an integral part of the Center, establishing a reputation as one of the top research programs in the country focusing on contemporary China, especially political economy.

Conducting cutting-edge research and training the next generation of scholars

SCP faculty are doing cutting-edge research on a wide range of challenges facing China: fiscal shortfalls and local governance, property rights reform and corporate restructuring, social inequality and mobility, food security, markets, education and poverty alleviation, environmental pollution and public health, and political participation and popular protests. SCP research is a vital part of Shorenstein APARC’s publishing program, and has resulted in several acclaimed edited volumes. The program has also played an integral role in bringing top visiting scholars from China and the United States to Stanford for a valuable cross-pollination of research and knowledge on China.

While primarily a research entity, SCP recognizes the critical importance of training new generations of Stanford students for broader and deeper interactions with China. Bringing together both research and teaching, the SCP-pioneered China Social Science Workshop has become an in-house forum for faculty and their doctoral students, as well as invited outside scholars, to present work in progress. It has fostered critical analysis and feedback essential to turn research into high-quality publications.

Other ongoing SCP academic workshops and conferences promote intellectual exchange with leading scholars within the United States and from China; the program also provides opportunities to educate broader audiences through public lectures on timely topics, such as the recent “China Under New Management” series in the wake of China’s once-in-a-decade leadership change following the 18th Party Congress.

Apart from its regular quarterly seminar series, SCP has also played a vital role in the Oksenberg Lecture, held annually to honor the legacy of Professor Michel Oksenberg. A senior fellow at Shorenstein APARC and the Freeman Spogli Institute for International Studies (FSI), and a key member of the National Security Council when the United States normalized relations with China, Oksenberg consistently urged that the United States engage with Asia in a more considered manner. In tribute, the Oksenberg Lecture recognizes distinguished individuals who have helped to advance understanding between the United States and the nations of the Asia-Pacific. Recent Oksenberg Lectures have illuminated key issues, such as the modernization of China’s military, constraints on China’s foreign policy, and areas of friction in U.S.-China relations.

Establishing the Stanford Center at Peking University

Aside from making great strides in building China studies at Stanford, SCP has played a special role in the university’s globalization efforts. Shortly after SCP was founded, director Jean Oi, with the help of Andrew Walder and strong support from FSI director Chip Blacker and dean of research Ann Arvin, started to work on creating Stanford’s first university-wide center abroad—in Beijing.

In March 2012 the Stanford Center at Peking University (SCPKU) officially opened, housed in a historic courtyard compound in the middle of Peking University, on the former site of an imperial palace. Oi concurrently serves as the Lee Shau Kee Director of SCPKU. Stanford is the only university to have a standalone center in a top Chinese university, with SCPKU serving as a unique platform for all of its seven schools, one that enables all Stanford faculty—not just those affiliated with SCP—to do cutting-edge research on a wide range of topics. Shorenstein APARC is a core program at SCPKU, with a dedicated office, and with SCP has already held a number of conferences and meetings at SCPKU since its opening. Ever cognizant of its academic mission, SCP is proud to have played a role in creating a home away from home for Stanford students to have a hands-on understanding of what China is—the kind of training you cannot get from reading a book.