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Larry Diamond
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In a new piece published on the Foreign Affairs website, CDDRL Director Larry Diamond argues that the Arab Spring is witnessing a thawing and freezing across the region as anti-democratic forces threaten nascent democratic transformations.

The decades-long political winter in the Arab world seemed to be thawing early this year as mass protests toppled Tunisian President Zine el-Abidine Ben Ali in January and Egyptian President Hosni Mubarak in February. It appeared as though one rotten Arab dictatorship after another might fall during the so-called Arab Spring. Analogies were quickly conjured to 1989, when another frozen political space, Eastern Europe, saw one dictatorship after another collapse. A similar wave of democratic transitions in the Arab world was finally possible to imagine, particularly given the extent to which previous transformations had been regional in scope: Portugal, Spain, and Greece all democratized in the mid-1970s; much of Latin America did shortly thereafter; Korea and Taiwan quickly followed the Philippines’ political opening in 1986; and then a wave of change in sub-Saharan Africa began in 1990. All of those were part of the transformative “third wave” of global democratization. In March, many scholars and activists reasonably imagined that a “fourth wave” had begun. 

Two months later, however, a late spring freeze has seemingly hit some areas of the region. And it could be a protracted one. Certainly, each previous regional wave of democratic change had to contend with authoritarian hard-liners, opposition divisions, and divergent national trends. But most of the Arab political openings are closing faster and more harshly than happened in other regions -- save for the former Soviet Union, where most new democratic regimes quickly drifted back toward autocracy.

If Tunisia still provides grounds for cautious optimism, the Egyptian situation is already deeply worrying. Its senior officer corps, which currently controls the government, does not want to facilitate a genuine democratic transition. It will try to prevent it by generating conditions on the ground that discredit democracy and make Egyptians (and U.S. policymakers) beg for a strong hand again. The ruling officers have turned a blind eye to mounting religious and sectarian strife (and an alarming explosion in crime). The military has spent enormous effort arresting thousands of peaceful protesters in Tahrir Square and trying them in military tribunals over the last two months. (In April, one such detainee, a blogger named Maikel Nabil, was sentenced to three years in prison for “insulting the military establishment.”) Yet it claims that it cannot rein in rising insecurity. Many Egyptians see this as part of the military’s grand design to undermine democracy before it takes hold.

The parliamentary elections slated for September are unlikely to help: New political forces have no chance of being able to build competitive party and campaign structures in time. The Muslim Brotherhood, which initially said it would only contest a third of the parliamentary seats, has now announced its intention to contest half of all seats, forming a new political party (Freedom and Justice) for the purpose. If the electoral system retains its highly majoritarian nature, it might well win a thumping majority of the seats it contests (perhaps 40 percent in all), with most of the rest going to local power brokers and former stalwarts of the Mubarak-era ruling party, the National Democratic Party.

Both theory and political experience teach that regimes with spent legitimacy do not last, and the legitimacy of the Libyan, Syrian, and Yemeni dictators is utterly depleted.

Elsewhere in the region, Bahrain’s minority Sunni monarchy opted to crush peaceful protests and arrest and torture many of those with whom it might have negotiated some future power-sharing deal. With active Iranian support and a bizarre degree of American and Israeli acceptance, Syrian President Bashar al-Assad unleashed a slow-motion massacre that could go on for weeks or even months. In Yemen, the government is paralyzed, food prices are rising, and the country is drifting. Having seen the fate of Mubarak, Yemeni President Ali Abdullah Saleh is playing for time, but his legitimacy is irretrievably drained, and he lacks the ability to mobilize repressive force on the scale of Assad’s.

Of course, not every country in the region has been affected by the apparent freeze and some could still avoid it. Jordan and Morocco are not yet in crisis but could be soon. Both countries face the same conditions that brought down seemingly secure autocracies in Tunisia and Egypt -- mounting frustration with corruption, joblessness, social injustice, and closed political systems. Not yet facing mass protests, Jordan’s King Abdullah is in a position to lead a measured process of democratic reform from above to revise electoral laws, rein in corruption, and grant considerably more freedom. Yet there is little sign that he has the vision or political self-confidence to modernize his country in this way.

Morocco’s King Mohammed VI is still domestically revered and internationally cited as a reformer, but he is even weaker and more feckless than Abdullah. He has been unwilling to rein in the deeply venal interests that surround the monarchy, or ease the country’s extraordinary concentration of wealth and business ownership. Instead, his security forces, narrow circle of royal friends, and oligopolistic business cronies fend off demands for accountability and reform, further isolate the king, and aggravate the political storm that is gathering beneath a comparatively calm surface.

For now, both monarchies are treading familiar water: launching committees to study political reform but never moving toward real political change. This game cannot last forever. As a former Jordanian official recently commented to me privately: “Everyone is expecting serious changes to the way the king rules the country, and if these changes don’t happen, the system will be in trouble. The king can’t keep talking about reform without implementing it.”

Scholars of the Arab world had been arguing for years that the region’s various repressive regimes (not least Saudi Arabia’s Al Saud dynasty, which keeps several thousand princes on the take) would either pursue democratic reform, or rot internally until they were overthrown. Ultimately, the options remain the same for the regimes that have avoided revolution this year. Those who have reasserted authoritarianism will find only temporary reprieve. Both theory and political experience teach that regimes with spent legitimacy do not last, and the legitimacy of the Libyan, Syrian, and Yemeni dictators is utterly depleted. They will surely be overthrown if not now, then in coming years. The Jordanian and Moroccan monarchies, however, could still survive if they spend what remains of their political legitimacy on democratic reform. In other words, even if the Arab spring comes in fits and starts, it will eventually bring fundamental political change. But whether democracy is the end result depends in part on how events unfold and how regimes and international actors engage the opposition forces.

Short of the wars that have periodically broken out in the region, the United States has never faced a more urgent set of opportunities and challenges there: real prospects for democratic development exist alongside the very real risks of Islamist ascension, political chaos, and humanitarian disaster. Countries across the Arab world differ widely in their political structures and social conditions, and the United States cannot pursue a one-size-fits-all strategy. But there are a few basic principles that it should apply everywhere. As it has generally and in a number of specific cases, the Obama administration must explicitly and consistently denounce all violent repression of peaceful protest. And it should enhance the credibility of those words by tying them to consequences. For example, in Libya, the United States identified and froze the overseas assets of top officials who were responsible for brutality. Additionally, it imposed travel bans on them and their family members, and asked Europe to do the same. In the past few days, the Obama administration has also moved to freeze the personal assets of Assad and other top Syrian officials. In extreme cases -- Libya is one, and Syria has now become another -- the United States can press the United Nations Security Council to refer individuals to the International Criminal Court for crimes against humanity.

When Arab governments turn arms against peaceful protesters, the United States and Europe should stop supplying them with weapons. Western countries have been selling (or giving) regimes, such as Saleh’s in Yemen, the tools of repression, including tear gas, ammunition, sniper rifles, close-assault weapons, and rockets and tanks. Although Saleh may have been a valuable asset in the fight against terrorism at one time, he has become a liability. By ending such trade, the United States would firmly send the message to the leaders of Bahrain (another recipient) and Yemen that if they are going to violently assault and arbitrarily arrest peaceful demonstrators for democracy, they are at least not going to continue doing so with U.S. guns.

For now, there is an urgent need for mediation to break the impasse between rulers and their oppositions and to find ways to ease the region’s remaining dictators out of power. Recognizing the need for an active UN role during the Arab uprising, UN Secretary-General Ban Ki-moon has begun to dispatch experienced and talented UN staff to engage in dialogue with different groups in Yemen and elsewhere. These diplomats can help develop possible political accommodations with the protesters. The United States should encourage the UN to try to mediate these conflicts, reconcile deeply divided forces within political oppositions, and help governments pave the way for credible elections. Because it is more neutral, the UN is the international actor best suited to mediate as well as convene experts on institutional design and help supply technical support for drafting constitutions.

American diplomats will have their own role to play: They can channel financial and programmatic support and provide another venue for different actors to meet and discuss differences. They should also speak out for human rights, civil society, and the democratic process. Such expressions of moral and practical support have made a significant difference in transitional situations in other countries, such as Chile, the Philippines, Poland, and South Africa. The Arab world has its own distinct sensitivities, but the ongoing uprisings present an unusual opportunity for U.S. ambassadors to join with representatives of other democracies to lean on Arab autocrats and aid Arab democrats.

The United States should help Arab democrats get the training and financial assistance they need to survive while urging them to cooperate with one another. This does not just mean more grants to civil society organizations. There is, of course, a need for such funding, but too much U.S. money thrown at these groups will discredit them as “American pawns” or promote corruption. Aid should be pooled among multiple donors, provide core (rather than project-related) funding for organizations with a proven track record of advancing democratic change, and must be carefully monitored to ensure that it is being used effectively.Western countries have been selling (or giving) regimes, such as Saleh’s in Yemen, the tools of repression, including tear gas, ammunition, sniper rifles, close-assault weapons, and rockets and tanks.

Finally, given its enormous demographic weight and political influence in the Arab world, as Egypt goes, so will go the region. Engaging Egypt will prove vital to any larger strategy of fostering democratic change in the Arab world. Beyond aid and vigilant monitoring of the political process, the United States must deliver a clear message to the Egyptian military that it will not support a deliberate sabotage of the democratic process, and that a reversion to authoritarianism would have serious consequences for the U.S.-Egyptian bilateral relationship, including for future flows of U.S. military aid. The United States cannot allow the Egyptian military to play the cynical double game that the Pakistani military has, or Egypt may become another Pakistan in two senses: an overbearing military may hide behind the façade of democracy to run the country, and the military may consort with our friends one day and our enemies -- radical Islamists within Egypt and Hamas outside it -- the next, to show it cannot be taken for granted.

This period of change in the Arab world will not be short or neatly circumscribed. Not a continuous thaw or freeze, the coming years will see cycles -- ups and downs in a protracted struggle to define the future political shape of the Arab world. The stakes for the United States are enormous. And the need for steady principles, clear understanding, and long-term strategic thinking has never been more pressing.

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Platts Coal Trader International
Vol. 11, Issue 67, Pages 5-6

Australia faces serious challenges over the next 20 years in maintaining its hard-won place as a leading coal exporting country and capturing new market share, according to a research paper published by Stanford University's Program on Energy and Sustainable Development April 5.

Following earlier papers on China, Indonesia and South Africa's coal industries, the latest PESD paper, entitled Australia's Black Coal Industry: Past Achievements and Future Challenges, has been written by coal industry expert Bart Lucarelli.

The paper sketches the development of Australia's export coal industry, from its shaky start in the aftermath of the Second World War amid a glut of cheap oil, to the "phenomenal success story" of today.  The renaissance of Australia's coal industry was assisted by the discovery of vast deposits of high-quality coking coal and thermal coal in Queensland's Bowen Basin and the

Hunter Valley of New South Wales respectively, along with new mining technologies and the economic expansions of Japan, South Korea and Taiwan, Lucarelli said.

During the Australian coal industry's competitive phase - 1987 to 2003 - export coal prices were relatively stable, but the growth rate of Australia's coal industry slowed as Indonesia became a significant coal exporter.  Since 2003, Australia's coal industry has been in a "volatile price phase," as export coking and thermal coal prices have soared to record highs with the entry of China and latterly India into the international seaborne market, while weather events have affected supplies from coal exporting countries.

Looking to the next 20 years, Lucarelli forecasts serious challenges to the preeminence of Australia's export coal industry in the shape of infrastructure constraints, regulatory risks and under-investment in railways and ports by government-owned companies.  "The most pressing and immediate technical challenge to the black coal industry of Australia is the shortage of rail and port infrastructure to support its further growth," said Lucarelli in the research paper.

‘Chronic infrastructure shortages' Governments in Queensland and New South Wales have proposed projects for expanding their rail and port networks to support a significant increase in Australian coal exports, which are forecast to grow to 540 million mt by 2020 from 240 million mt in 2010.  "Part of the reason that chronic infrastructure shortages are likely to persist has to do with the type of technology being implemented - large rail and fixed land port systems," Lucarelli explained.  Large port and rail projects are required for economies of scale, but involve long lead times, high upfront costs and complex regulatory clearances. 

"A second reason for the chronic shortage of infrastructure has been the reliance on state-owned entities to make the necessary investments in the rail and port systems," Lucarelli said. Government-owned rail and port companies tend to be less nimble and entrepreneurial in their decision-making than the private sector, though some port and rail companies have been privatized recently - most notably Queenslandbased rail company QR National and the port of Brisbane.  Regulatory uncertainty stemming from the Australian government's stop-start policy on curbing carbon emissions and its proposed Mineral Resource Rent Tax on coal-mining profits are additional factors clouding the expansion of Australia's coal industry.  "Potential coal mining projects most at risk due to regulatory uncertainty are the massive new steam coal projects planned for the Galilee, Gunnedah and Surat basins," Lucarelli said.  Illustrating the potential for expansion within Australia's coal industry, Lucarelli said that if only two of the advancedstage projects in the Surat Basin in Queensland started production on schedule, they could add 110 million mt/year of thermal coal exports by 2015.  This is almost as much thermal coal as Australia exported for the whole of 2008, at 115 million mt. 

 

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Australia coal train Lars Plougmann Flickr scenery Lars Plougmann/Flickr
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Europe dominated the 19th century. The 20th century saw the rise of the United States. Will the 21st century be "the Chinese Century"? Using a series of Harvard Business School Cases, this lecture will explore production, consumption, and education for China's new middle class, and think about China's future, in the light of its past.

William C. Kirby is T. M. Chang Professor of China Studies at Harvard University and Spangler Family Professor of Business Administration at the Harvard Business School. He is a Harvard University Distinguished Service Professor. He serves as Director of the Fairbank Center for Chinese Studies and Chairman of the Harvard China Fund.

A historian of modern China, Professor Kirby's work examines China's business, economic, and political development in an international context. He has written on the evolution of modern Chinese business (state-owned and private); Chinese corporate law and company structure; the history of freedom in China; the international socialist economy of the 1950s; relations across the Taiwan Strait; and China's relations with Europe and America. His current projects include case studies of contemporary Chinese businesses and a comparative study of higher education in China, Europe, and the United States.

This talk is co-sponsored with the Center for East Asian Studies (CEAS).

Philippines Conference Room

William C. Kirby T. M. Chang Professor of China Studies at Harvard University and Spangler Family Professor of Business Administration Speaker Harvard Business School
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Lyushun Shen earned his doctorate in International Relations from the University of Pennsylvania. He started his career at the School of Law, University of Maryland before deciding to become a professional diplomat.  He has enjoyed a distinguished career serving Taiwan in its overseas missions in America and Europe, including in Washington D.C., Kansas City, Geneva and Brussels.  Prior to his current appointment he was Taiwan’s representative to the European Union. His publications include:  “The Republic of China’s Perspective on the US Omnibus Trade and Competitiveness Act of 1988” (The Chinese Yearbook of International Law and Affairs, 1989), The Issue of US Arms Sales and Peking’s Policy toward Taiwan (Taipei, 1986), “Is Peking’s Claim over Taiwan Internationally Recognized?” Monograph Series of the Asia and World Forum (Taipei, 1984), “The Washington-Peking Controversy over US Arms Sales to Taiwan: Diplomacy of Ambiguity and Escalation” (The Chinese Yearbook of International Law and Affairs, 1982), and “The Taiwan Issue in Peking’s Foreign Policy during the 1970’s, A Systematic Review” (The Chinese Yearbook of International Law and Affairs, 1981).

In this special event, Vice Foreign Minister Shen will reflect on the century-long relationship between the Republic of China and the United States, and address the future prospects and challenges of this relationship. 

Bechtel Conference Center

Lyushun Shen Vice Foreign Minister Speaker Ministry of Foreign Affairs, Republic of China (Taiwan)
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This two-day international forum at Stanford University brought together experts from academia, government, and industry to analyze leading cases of current institutional models for innovation in smart and green industries. Cases included multi-company collaborations, public-private partnerships, and government-funded consortia. To enable more focus and comparative analysis, sectors selected for focus included the built environment and intelligent transportation.

FORUM Speakers & DISCUSSANTS (listed in alphabetical order)

  • Rohit T. Aggarwala, Special Advisor to the Chair, C40 Cities Climate Leadership Group
  • Alan Beebe, Managing Director, China Greentech Initiative
  • Sven Beiker, Executive Director, Center for Automotive Research at Stanford (CARS)
  • Ann Bordetsky, North America Market Development, Better Place
  • Dennis Bracy, cEO, US-China Clean Energy Forum
  • Curtis R. Carlson, President and CEO, SRI International
  • Jaching Chou, Senior Transportation Analyst, Institute of Transportation
  • Stephen J. Eglash, Executive Director, Energy and Environment Affiliates Program, Stanford University
  • Henry Etzkowitz, President of Triple Helix Association; Senior Researcher, Human Sciences and Technology Advanced Research Institute (H-STAR), Stanford University; Visiting Professor at University of Edinburgh Business School
  • Gordon Feller, Director of Urban Innovation, Cisco Systems
  • TJ Glauthier, President, TJG Energy Associates, LLC
  • Russell Hancock, President & Chief Executive Officer, Joint Venture: Silicon Valley Network
  • Ted Howes, Business for Social Responsibility
  • Asim Hussain, Director of Product Marketing, Bloom Energy
  • Paul Chao-Chia Huang, Deputy General Director, Service Systems Technology Center, Industrial Technology Research Institute, Taiwan
  • Kristina M. Johnson, Former Under Secretary of Energy, U.S. Department of Energy
  • Jeffrey Heller, President, Heller Manus Architects
  • Allan King, Senior Manager, Institute for Information Industry, Taiwan
  • Michael Marlaire, Director, NASA Research Park
  • David Nieh, General Manager, Shui On Land Limited
  • Jon Sandelin, Senior Associate Emeritus, Office of Technology and Licensing, Stanford University
  • Gerald Sanders, CEO & Chairman, SkyTran
  • Tim Schweikert, President & CEO, China Region for GE Technology Infrastructure, GE
  • Jonathan Thorpe, Senior Vice President, Gale International
  • Kung Wang, Professor, China University of Technology
  • Sean Wang, President, ITRI International Inc.
  • Jonathan Woetzel, Director, McKinsey & Co; Co-Chair, Urban China Initiative

Questions for presentations and discussion included:

  • What roles are public-private partnerships and other forms of collaboration playing to advance innovations in smart green industries, such as in the built environment or intelligent transportation?
  • What innovations - not only in technologies and products but also in processes, models and platforms - are leading the way?
  • What results are emerging from living labs, leading cities, or other outstanding examples of public-private partnerships around the world?
  • How do results stack up against economic, energy and social metrics, e.g. economic productivity, quality of life, energy impact, financial payback, user response, etc.?
  • What are implications for business strategies?
  • What government policies are effectively nurturing advancement in these areas?

Outcomes will include policy recommendations as well as highlights to be included in a book published by SPRIE at Stanford.

Workshops
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Dr. Brian Chen's research has examined the tradeoffs between moral hazard and efficiencies in the integration of physician and non-physician medical services in the presence of asymmetric information. He has looked at a policy intervention in Taiwan that prohibited self-referrals of patients to physician-owned pharmacies unless the physician group integrated pharmacy services into the clinic by hiring an onsite pharmacist. He found that the policy reduced drug expenditures by close to thirty percent among physicians that did not have an onsite pharmacist. However, these physicians responded by increasing the overprovision of diagnostic services not covered by the policy, thereby reducing the effectiveness of the policy. Forty-five percent of the clinics that did not have an onsite pharmacist prior to the policy hired one subsequent to the implementation of the policy. Overall, after integration, the policy applied to only seventeen percent of clinics, and only reduced average discretionary expenditures by about two-point-five percent. Chen's research also shows that despite the reduction in drug utilization, patients treated at clinics without an onsite pharmacist did not have greater observable adverse health events than patients treated at integrated clinics. His results show that moral hazard costs of self-referral incentives are large, that the “safe harbor” exemption severely reduces the effectiveness of the policy, and that the exemption explains much of the recent integration of ancillary services into physician offices.

Dr. Brian Chen recently completed his Ph.D. in business administration in the Business and Public Policy Group at the Haas School of Business, University of California at Berkeley. He received a Juris Doctor from Stanford Law School in 1997, and graduated summa cum laude from Harvard College in 1992.

Daniel and Nancy Okimoto Conference Room

Shorenstein APARC
Stanford University
Encina Hall, Room E-301
Stanford, CA 94305-6055

(650) 736-0771 (650) 723-6530
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2011 AHPP/CEAS Visiting Scholar
IMG_5703.JPG JD, PhD

Dr. Brian Chen is currently a visiting scholar with the Asia Health Policy Program and Center for East Asian Studies at Stanford University. He was recently Shorenstein Asia-Pacific Research Center's 2009-2010 postdoctoral fellow in Comparative Health Policy. As a visiting scholar, Dr. Chen will conduct collaborative research about health of the elderly and chronic disease in China.

As an applied economist, Chen’s research focuses on the impact of incentives in health care organizations on provider and patient behavior. For his dissertation, Chen empirically examined how vertical integration and prohibition against self-referrals affected physician prescribing behavior. His job market paper was selected for presentation at the American Law and Economics Association’s Annual Meeting, the Academy of Management, the Canadian Law and Economics Association, the Conference on Empirical Legal Studies, and the First Annual Conference on Empirical Health Law and Policy at Georgetown Law Center in 2009.  The paper was also nominated for best paper based on a dissertation at the Academy of Management.

Chen comes to the Shorenstein Asia-Pacific Research Center not only with a multidisciplinary law and economics background, but also with an international perspective from having lived and worked in Taiwan, Japan, and France. He has a particularly intimate knowledge of the Taiwanese health care system from his experience as an assistant to the hospital administrator at a medical college in Taiwan.

During his past residence as a postdoctoral fellow with the Asia Health Policy Program, Chen conducted empirical research on cost containment policies in Taiwan and Japan and how those policies impacted provider behavior. His work also contributed to the program’s research activities on comparative health systems and health service delivery in the Asia-Pacific, a theme that encompasses the historical evolution of health policies; the role of the private sector and public-private partnerships; payment incentives and their impact on patients and providers; organizational innovation, contracting, and soft budget constraints; and chronic disease management and service coordination for aging populations.

Dr. Brian Chen recently completed his Ph.D. in Business Administration in the Business and Public Policy Group at the Haas School of Business, University of California at Berkeley. He received a Juris Doctor from Stanford Law School in 1997, and graduated summa cum laude from Harvard College in 1992.

Brian Chen 2011 AHPP/CEAS Visiting Scholar Speaker Stanford University
Seminars
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