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Robert Hormats, Under Secretary of State for Economics, Energy, and Agricultural Affairs, gave an S.T. Lee seminar at FSI on March 11, addressing "The Rise of the New Economic Powers: How the United States Can Meet the Challenge." He set the stage by discussing the vast new economic geography.

  • The global economy is now multi-polar, with a number of players in global trade, finance, and technology development, especially China, India and Brazil.  The rising powers, however, still have large numbers of poor people and see their domestic needs and objectives differently than developed nations.
  • Second, the big sovereign risk questions now surround the developed, not the developing economies, and the pressures of the global financial crisis have made them more concerned with domestic recovery, rather than global systemic issues, particularly trade.
  • Third, the Internet and rising importance of services has brought gains as well as perils. Global integration of production and supply chains is efficient, but disruptions are readily transmitted across national borders. As increasing portions of investment are devoted to services and intangibles, rapid dissemination puts intellectual property at risk.

Asking how to develop a new international system, Hormats emphasized that the Group of 20 was designed to foster greater inclusion and dialogue, calling cooperation during the recent financial crisis the "largest multilateral collaborative endeavor since World War II." In an effort to move forward with strategic concerns, rather than immediate deliverables, the U.S. government is fostering a number of dialogues with key partners - including Russia, China, and Brazil. Hormats also cited the need to address issues more efficiently. Noting that large scale negotiations like Copenhagen no longer work, he identified a new focus on building coalitions of the willing and able.

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Global meat production has tripled in the past three decades and could double its present level by 2050, according to a new report on the livestock industry by an international team of scientists and policy experts. The impact of this "livestock revolution" is likely to have significant consequences for human health, the environment and the global economy, the authors conclude.

"The livestock industry is massive and growing," said Harold A. Mooney, co-editor of the two-volume report, Livestock in a Changing Landscape (Island Press). Mooney is a professor of biology, senior fellow at the Woods Institute for the Environment and senior fellow at FSI, by courtesy.

"This is the first time that we've looked at the social, economic, health and environmental impacts of livestock in an integrated way and presented solutions for reducing the detrimental effects of the industry and enhancing its positive attributes," he said.

Among the key findings in the report are:

  • More than 1.7 billion animals are used in livestock production worldwide and occupy more than one-fourth of the Earth's land.
  • Production of animal feed consumes about one-third of total arable land.
  • Livestock production accounts for approximately 40 percent of the global agricultural gross domestic product.
  • The livestock sector, including feed production and transport, is responsible for about 18 percent of all greenhouse gas emissions worldwide. 
Impacts on humanity

Although about 1 billion poor people worldwide derive at least some part of their livelihood from domesticated animals, the rapid growth of commercialized industrial livestock has reduced employment opportunities for many, according to the report. In developing countries, such as India and China, large-scale industrial production has displaced many small, rural producers, who are under additional pressure from health authorities to meet the food safety standards that a globalized marketplace requires.

Beef, poultry, pork and other meat products provide one-third of humanity's protein intake, but the impact on nutrition across the globe is highly variable, according to the report. "Too much animal-based protein is not good for human diets, while too little is a problem for those on a protein-starved diet, as happens in many developing countries," Mooney noted.

While overconsumption of animal-source foods - particularly meat, milk and eggs - has been linked to heart disease and other chronic conditions, these foods remain a vital source of protein and nutrient nutrition throughout the developing world, the report said. The authors cited a recent study of Kenyan children that found a positive association between meat intake and physical growth, cognitive function and school performance.

Human health also is affected by pathogens and harmful substances transmitted by livestock, the authors said. Emerging diseases, such as highly pathogenic avian influenza, are closely linked to changes in the livestock production but are more difficult to trace and combat in the newly globalized marketplace, they said.

Environmental impacts

The livestock sector is a major environmental polluter, the authors said, noting that much of the world's pastureland has been degraded by grazing or feed production, and that many forests have been clear-cut to make way for additional farmland. Feed production also requires intensive use of water, fertilizer, pesticides and fossil fuels, added co-editor Henning Steinfeld of the United Nations Food and Agriculture Organization (FAO).

Animal waste is another serious concern. "Because only a third of the nutrients fed to animals are absorbed, animal waste is a leading factor in the pollution of land and water resources, as observed in case studies in China, India, the United States and Denmark," the authors wrote. Total phosphorous excretions are estimated to be seven to nine times greater than that of humans, with detrimental effects on the environment.

The beef, pork and poultry industries also emit large amounts of carbon dioxide, methane and other greenhouse gases, Steinfeld said, adding that climate-change issues related to livestock remain largely unaddressed. "Without a change in current practices, the intensive increases in projected livestock production systems will double the current environmental burden and will contribute to large-scale ecosystem degradation unless appropriate measures are taken," he said.

Solutions

The report concludes with a review of various options for introducing more environmentally and socially sustainable practices to animal production systems.

"We want to protect those on the margins who are dependent on a handful of livestock for their livelihood," Mooney said. "On the other side, we want people engaged in the livestock industry to look closely at the report and determine what improvements they can make."

One solution is for countries to adopt policies that provide incentives for better management practices that focus on land conservation and more efficient water and fertilizer use, he said.

But calculating the true cost of meat production is a daunting task, Mooney added. Consider the piece of ham on your breakfast plate, and where it came from before landing on your grocery shelf. First, take into account the amount of land used to rear the pig. Then factor in all the land, water and fertilizer used to grow the grain to feed the pig and the associated pollution that results.

Finally, consider that while the ham may have come from Denmark, where there are twice as many pigs as people, the grain to feed the animal was likely grown in Brazil, where rainforests are constantly being cleared to grow more soybeans, a major source of pig feed.

"So much of the problem comes down to the individual consumer," said co-editor Fritz Schneider of the Swiss College of Agriculture (SHL). "People aren't going to stop eating meat, but I am always hopeful that as people learn more, they do change their behavior. If they are informed that they do have choices to help build a more sustainable and equitable world, they can make better choices."

Livestock in a Changing Landscape is a collaboration of the FAO, SHL, Woods Institute for the Environment, International Livestock Research Institute (ILRI), Scientific Committee for Problems of the Environment (SCOPE), Agricultural Research Center for International Development (CIRAD), and Livestock, Environment and Development Initiative (LEAD).

Other editors of the report are Laurie E. Neville (Stanford University), Pierre Gerber (FAO), Jeroen Dijkman (FAO), Shirley Tarawali (ILRI) and Cees de Haan (World Bank). Initial funding for the project was provided by a 2004 Environmental Venture Projects grant from the Woods Institute.

Editor's Note

To obtain a copy of Livestock in a Changing Landscape, contact Angela Osborn at Island Press: (202) 232-7933 (extension 35) or aosborn@islandpress.org.

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In 2008, for the first time a majority of the world's population lived in cities. Rapidly rising standards of living and migration are contributing to an unprecedented worldwide surge in urbanization--in China alone, if trends continue, by 2025 more than 220 cities will each have more than one million inhabitants. The explosive growth of cities around the Pacific has widespread implications for energy use and has led to the demand for cities to become both smart and green.

But while billions of dollars of investments are pouring into urban energy solutions, and around the Pacific "low-carbon cities" and "eco-cities" are moving center stage, there are enormous challenges (and opportunities) facing the effective application of information technologies (IT), other innovative technologies and industrial growth.

The intersection of IT and environmental sustainability on the urban scale will require a complex integration of expertise, tools, and know-how from multiple disciplines--from building design and real estate development, to mobility and water systems, IT hardware and software, and energy providers. Although innovations in strategies and implementation are evolving quickly in pockets of excellence around the globe, early results have been highly uneven. Frameworks for understanding and analysis are still fragmented, innovative design and implementation rapidly changing, and best practices have yet to be defined.

Purpose
Led by SPRIE at Stanford University, this conference aims to gather an elite group of experts, decision makers, and thought leaders from across disciplines and geographical boundaries to focus on smart green cities around the Pacific. Participants will:

  • Pursue a deeper understanding of the complex interactions among the key drivers that impact the extent that cities are green and smart
  • Focus on core challenges of capitalizing on opportunities and overcoming obstacles--technological, economic, behavioral or political
  • Explore what innovations in strategy or practice are leading to positive outcomes, including human livability, financial viability, economic vitality, and environmental sustainability
  • Discuss implications for the evolution of markets and development of industries 
  • Lay the groundwork for future actions, such as industry strategies, research agendas, and policy recommendations

Participants
"Smart Green Cities" will invite a select group of government, business, and academic leaders from the United States and Asia for two days of expert presentations and fruitful discussion at Stanford University. The summit will enable participants to better lead to improved strategy, action, and outcomes for building the next generation of smart green cities.

Agenda
Agenda is preliminary and not all speakers are confirmed. Please download below

 

Sponsors
Many thanks to our sponsors for making this event possible. 

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Stanford Institute for Economic Policy Research (SIEPR)
John A. and Cynthia Fry Gunn Building
366 Galvez Street
Stanford, CA

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About the talk:
Cleantech/Greentech investing has helped the venture capital (VC industry to contract further during the financial crisis. Over the last few years, it has become a significant part of VC investments around the world. In addition, solutions for large local or even global problems ranging from power generation to power efficiency, as well as water and air pollution, new materials, transportation, waste management, etc. are taking center stage even at every government level in most countries around the world. The seminar will focus on the following areas:

  1. Global cleantech/energy investments by asset class
  2. International VC benchmarks of cleantech investments
  3. Deals IRRs & funds IRRs in the United States/Europe   

Dr. Haemmig was part of a World Economic Forum team that produced a report on "Green Investing 2010," downloadable below.

About the speaker:
Dr. Martin Haemmig's venture capital research covers 13 countries in Asia, Europe, Israel, and USA. He lectures and/or performs research at numerous universities across the U.S., Europe, China and India. He has authored books on the globalization of venture capital. He is Senior Advisor on Venture Capital at SPRIE and advises on venture capital for China's Zhongguancun Science Park. Martin Haemmig earned his electronics degree in Switzerland and his MBA and doctorate in California, and worked for almost 20 years in global high-tech companies in Asia, Europe and the U.S. before returning to his academic career. He became Swiss national champion in marketing in 1994.

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Professor Jenny S. Martinez is a leading expert on international courts and tribunals, international human rights, and the laws of war. Her scholarship focuses on the role of courts and tribunals in advancing human rights, ranging from her work on the all-but-forgotten 19th-century international tribunals involved in the suppression of the trans-Atlantic slave trade through her work on contemporary institutions like the International Criminal Court and the role of courts in policing human rights abuses in the "war on terror." An experienced litigator, she argued the 2004 case of Rumsfeld v. Padilla before the U.S. Supreme Court, seeking to clarify the constitutional protections available to post-9/11 "enemy combatants" who are U.S. citizens. Professor Martinez was named to the National Law Journal's list of "Top 40 Lawyers Under 40" and the American Lawyer's "Young Litigators Fab Fifty." She serves on the board of directors for the Open Society Justice Initiative and has served as a consultant on international human rights issues for both Human Rights First and the International Center for Transitional Justice.

Before joining the Stanford faculty in 2003, Professor Martinez was a senior research fellow at Yale University and an attorney at Jenner & Block. She clerked for Justice Stephen Breyer (BA '59) of the U.S. Supreme Court and Judge Guido Calabresi of the U.S. Court of Appeals for the Second Circuit; she was an associate legal officer for Judge Patricia Wald of the United Nations International Criminal Tribunal for the former Yugoslavia.

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Ambassador Stephen W. Bosworth, the U.S. Special Representative for North Korea Policy, spoke March 4 at Shorenstein APARC to members of the Stanford community and invited guests. Bosworth had just returned from a round of consultations the previous week with foreign counterparts in Beijing, Seoul, and Tokyo.

In his off-the-record remarks at Shorenstein APARC, Bosworth reviewed the North Korean nuclear weapons problem since his appointment as Special Representative a year ago. He discussed recent developments, including his own visit to Pyongyang in December 2009, and noted his talks with his Six Party Talks counterparts. The Six Party Talks are hosted by the People's Republic of China, and include the United States, South Korea, Japan, Russia. These talks are aimed at persuading North Korea to abandon its nuclear weapons development in exchange for security guarantees and a lifting of international sanctions.

Ambassador Bosworth is concurrently dean of the Fletcher School of Law and Diplomacy at Tufts University. A former career diplomat, he served as U.S. Ambassador to the Philippines and South Korea. During this visit to Stanford, he also consulted with Stanford policy experts, including George P. Shultz, the Thomas W. and Susan B. Ford Distinguished Fellow at the Hoover Institution; William J. Perry, the Michael and Barbara Berberian Professor at FSI and Engineering; and Shorenstein Distinguished Fellow Michael H. Armacost.

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The extent and existence of "defensive medicine" -- excessive medical care to defend a physician against malpractice claims -- is a perennial subject of both policy and academic debate.  For example, malpractice liability and associated defensive medicine are among the most-cited reasons for escalating health-care spending in the United States.

In this colloquium, Dr. Brian Chen will present results from his research investigating the extent of defensive medicine in Taiwan. He studies the impact of a series of court rulings in Taiwan that increased physicians’ liability risks, and a subsequent amendment to the law that reversed the courts’ rulings, on physicians’ test-ordering behavior and propensity to perform Caesarean sections.  He finds that physicians faced with higher malpractice pressure increased laboratory tests as expected, but unexpectedly reduced Caesarean sections.  (The reduction in Caesarean deliveries may be due to the fact that liability risks were more closely aligned with physicians’ standard of care after the court rulings.) After the law was amended to negate the court decisions, physicians reversed their previous behavior by reducing laboratory tests and increasing Caesarean deliveries.

This pattern of behavior is highly suggestive of the existence of defensive medicine among physicians in Taiwan. In other words, by studying physicians' response to legal changes in Taiwan, we find that greater malpractice liability may, under certain circumstances, prompt physicians to perform more services without necessarily improving patient health.

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.

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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 Shorenstein-Spogli Fellow in Comparative Health Policy Speaker
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