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Michael A. McFaul
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The Center on Democracy, Development, and the Rule of Law (CDDRL) at Stanford University has concluded its second year of Stanford Summer Fellows on Democracy and Development. This year's fellows - 26 outstanding civic, political, and economic leaders from 21 countries in transition - were selected from more than 800 applications.

The summer fellows program brought leaders from important, transitioning countries such as Iraq, Afghanistan, Iran, Pakistan, China, and Russia to Stanford for three weeks (this year, July 31 to August 18). The new summer fellows included presidential advisers, prominent journalists, key figures in human rights and democracy movements, academics, and representatives of international governmental and non-governmental organizations. The fellows participated in morning seminars with leading Stanford faculty, including CDDRL director Michael A. McFaul, Kathryn Stoner, Larry Diamond, Avner Greif, Erik Jensen, and Stanford President Emeritus Gerhard Casper. In the afternoons, fellows attended talks by keynote speakers and led class sessions themselves, sharing insight into how reform progressed (or failed to progress) in their home countries and exchanging ideas for positive change. This year's keynote speakers included Carl Gershman, the president of the National Endowment for Democracy; Joan Blades, co-founder of MoveOn.org; Marc Pomar, president of the International Research and Exchanges Board (IREX); and Judge Pamela Rymer, United States Court of Appeals for the Ninth Circuit.

The Center on Democracy, Development, and the Rule of Law (CDDRL) at Stanford University's Freeman Spogli Institute for International Studies (FSI) seeks to promote innovative and practical research to assist transitioning countries design and implement policies that will foster democracy, promote balanced and sustainable growth, and advance the rule of law. It supports specialized teaching, training, and outreach to assist countries struggling with political, economic, and judicial reform, constitutional design, economic performance and corruption.

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This paper was discussed at the Global Justice workshop on October 20, 2006.

Abstract of Richard Locke's "Beyond Corporate Codes of Conduct: Work Organization and Labor Standards in Two Mexican Garment Factories":

This paper presents a matched pair case study of two factories supplying Nike, the world's largest athletic footwear and apparel company. These two factories have many similarities - both are in Mexico, both are in the apparel industry, both produce more or less the same products for Nike (and other brands) and both are subject to the same code of conduct. On the surface, both factories appear to have similar employment (i.e., recruitment, training, remuneration) practices and they receive comparable scores when audited by Nike's compliance staff. However, actual labor conditions exist between these two factories. What drives these differences in working conditions? What does this imply for traditional systems of monitoring and codes of conduct? Field research conducted at these two factories reveals that beyond the code of conduct and various monitoring efforts aimed at enforcing it, workplace conditions and labor standards are shaped by very different patterns of work organization and human resource management policies.

About the Author

Richard Locke is professor of political science at Massachusetts Institute of Technology (MIT). He is also faculty director of the MIT Sloan Fellows program and co-director of the MIT Italy program. His research focuses on economic development, comparative labor relations, and political economy.

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The seminar is expected to provide a foundation for a new study examining the role of LNG imports for Brazilian natural gas markets centered at the Instituto Economia (IE) at the Federal University of Rio de Janeiro (UFRJ). Meeting attendees included experts from UFRJ, Brazilian state oil and gas company Petrobras, and experts on North American and European natural gas markets. The meeting discussed the operation of the key Atlantic Basin gas markets that will drive the development of future LNG trade, considering the potential role of Brazil in the future market for LNG.

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Mark H. Hayes was recently a Research Fellow with the Program on Energy and Sustainable Development (PESD). He lead PESD's research on global natural gas markets, including studies of the growing trade in liquefied natural gas (LNG) and the future for gas demand growth in China.

Dr. Hayes has developed models to analyze the impact of growing LNG imports on U.S. and European gas markets with special attention to seasonality and the opportunity for arbitrage using LNG ships and regasification capacity. From 2002 to 2005, Dr. Hayes managed the Geopolitics of Natural Gas Project, a study of critical political and financial factors affecting investment in cross-border gas trade projects. The study culminated in an edited book volume published by Cambridge University Press.

Prior to coming to Stanford, Mark worked as a financial analyst at Morgan Stanley in New York City. He was a member of the Global Power and Utilities Group, where he was involved in mergers and acquisitions, financing and corporate restructuring.

In 2006 he completed his Ph.D. in the Interdisciplinary Program on Environment and Resources at Stanford University. After completing his Ph.D. at Stanford, Mark has taken a position at RREEF Infrastructure Investments, San Francisco, CA. Mark also has a B.A. in Geology from Colgate University and an M.A. in International Policy Studies from Stanford. From 1999 to 2002 he served on the Board of Trustees of Colgate University.

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Daniel C. Sneider
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North Korea's response to the United Nations resolution demanding that it suspend its ballistic missile program and resume a moratorium on launches was typically belligerent. But like the multiple launch of seven missiles earlier this month, the North Korean vow to continue to fire off its missiles should not be dismissed as mere political theater.

The missile tests were neither a gesture of defiance nor a desperate bid for negotiations. Nor can they be dismissed as the impulsive act of an irrational leader. It was, as Pyongyang itself so succinctly put it, a "military exercise."

The launches are only the latest evidence of a decadeslong effort by Pyongyang to redress the military balance in its favor. For North Korea, missiles are an attempt to compensate for weakness. The communist state has a large but technologically backward army, lacking the air power to compete with the United States and its South Korean ally. Rockets give it the firepower to back an assault on the South and to hold U.S. forces in Japan, the rear base for Korea, at bay.

The late North Korean leader Kim Il Sung set this goal as far back as 1965 when he established an academy to develop missiles and other modern weaponry.

"If war breaks out, the U.S. and Japan will also be involved," he said. "In order to prevent their involvement, we have to be able to produce rockets which fly as far as Japan."

I encountered one crucial tentacle of Kim's program some 14 years ago, in late October of 1992.

A group of 64 Russian rocket scientists, accompanied by their wives and children, were stopped just as they were about to board a flight to North Korea. The scientists were employees of a super-secret facility in the Urals, the V.P. Makeyev Design Bureau, responsible for the development of the Soviet Union's submarine-launched ballistic missiles.

As the bureau chief for the Christian Science Monitor, I pieced the story together later from Russian press accounts and interviews with the scientists and others. A middleman with apparent official backing had offered the bureau, starving for orders and left adrift by the sudden end of the Cold War, work in North Korea.

Scientists who were making the equivalent of $15 a month jumped at offers of up to $4,000 a month to help a former Soviet ally. In the spring, a group of 10 scientists had gone for an initial foray. The Koreans, one of the scientists told me, initially never directly asked about nuclear warheads or missile designs. They claimed only to be interested in rocket science.

The Russians came home that fall and signed up dozens of their comrades as recruits. But the project was not officially sanctioned, and the KGB held them outside of Moscow for two months while the broker tried to re-negotiate their departure. Russian officials later described the North Koreans' aim, without mentioning them by name, as an attempt to build "combat missile complexes that could carry nuclear weapons."

North Korea began with copies of Soviet short-range Scud missiles and moved on to medium-range "Nodong" missiles, but they lacked the range and accuracy to meet Kim's target. A decade after the airport incident, in 2003, credible reports emerged that the North Koreans were deploying a new, far more accurate missile based on the Soviet SS-N-6, a submarine-launched rocket developed by Makeyev in the 1960s. The Nodong-2, as some labeled it, could reach all U.S. bases in Japan and possibly even to Guam.

In the 1990s, the North Koreans developed a long-range missile, potentially reaching U.S. territory, to lend credence to claims they could deter a pre-emptive strike on their nuclear or missile facilities. Some experts believe the Nodong-2 also functions as the second stage of this missile. American intelligence officials believe an otherwise inexplicable leap in missile technology was thanks to the help of Russian scientists.

Still the self-imposed missile test moratorium that Pyongyang agreed to in 1999 made it difficult to move ahead. Late last year, according to a recent Wall Street Journal story, the North Koreans delivered a dozen Nodong-2 missiles to Iran, a close collaborator on missiles since the 1980s. Unconfirmed reports from Germany say Iran tested the missile in January.

The Nodong-2 may have been tested this month, one of the six short- and medium-range missiles set off in a wave or as a stage of the long-range missile. Data from the launch is not yet conclusive, according to U.S. and South Korean officials. Despite the failure of the long-range attempt, it may be more significant that Pyongyang carried out the first successful launch of a Nodong since 1993 and a nighttime barrage of Scuds and Nodongs.

The display of diplomatic unity at the United Nations may give Pyongyang pause. But the relentless nature of North Korea's pursuit of its ballistic missile strength suggests that this is not a bargaining chip that will be readily traded away.

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Forty students from nine universities across Russia came to Yaroslavl, 150 miles northeast of Moscow, to participate in an arms control exercise led by CISAC director Scott D. Sagan. In a mock U.N. Security Council session, students addressed Iran's nuclear program, to cap off courses they took this year through FSI's Initiative on Distance Learning, funded by Carnegie Corporation of New York.

One day perhaps Marina Agaltsova will join the diplomatic corps at a foreign embassy, or help write policy positions for the Russian government. Coit Blacker hopes that the lessons from her Stanford-sponsored distance-learning course will stick.

Agaltsova was among a group of Russian students brought to the provincial city of Yaroslavl in late May for an academic conference that capped this year's five distance-learning courses offered at nine universities across Russia by the Initiative on Distance Learning at the Freeman Spogli Institute for International Studies.

Through videotaped lectures, web readings and online chat sessions with senior research scholar Kathryn Stoner-Weiss and 14 other Stanford instructors, students in Democracy, Development and Rule of Law explored democratic ideals and practices, studying examples in Latin America, Asia and the former Soviet Union. "The course taught me that there is a black side to the reforms" that followed perestroika in Russia, Agaltsova says. "I learned more about Russian history [in the course] than I had learned in school."

That's the idea, says FSI director Blacker, who wants to re-establish the teaching of critical analysis, lost under decades of Communist rule, in Russian universities. "The social sciences were disemboweled," he says. He wants to develop future generations of diplomats and policy makers whose worldview is shaped "by how they think, not what they're told to think."

This year, to cap off the courses, 40 students came to Yaroslavl to participate in a mock United Nations Security Council session addressing Iran's nuclear program. They traveled from the farthest reaches of the Russian hinterlands, like Amur State University in Blagoveschensk, 4,800 miles from Moscow.

The arms control simulation is a teaching tool developed for the Stanford undergraduate class International Security in a Changing World, taught by Blacker and Scott Sagan, a political science professor and director of the Center for International Security and Cooperation within FSI. Sagan has exported the simulation to several universities in the United States where his former graduate students now teach--UC-Berkeley, Dartmouth, Columbia, Duke--but this was the first one he has conducted overseas.

This year's scenario was the International Atomic Energy Agency's referral of Iran to the U.N. Security Council for failure to fully disclose its nuclear activities. During the simulation, students submitted proposals to their heads of state, played by Blacker, Sagan and Russian faculty members. By the end of the two-day session, delegates had overcome seemingly intractable differences during four intensive sessions led by Stanford third-year law student Matthew Rojansky, acting as U.N. undersecretary-general for legal affairs. The council's resolution gave Iran three months to comply with the IAEA's requests and provided for Iran to obtain nuclear fuel from Russia, with the production and waste disposal to occur on Russian soil under IAEA controls.

After the session closed, students set aside their delegate roles to reflect on what they had learned. Narina Tadevosian, a student from Yakutsk State in far eastern Siberia, said she was surprised at "how strict Russia was" in taking a leading role in the session.

"If only it were so in real life," she added.

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On November 13-14, 2006, the Stanford Project on Regions of Innovation and Entrepreneurship (SPRIE) of Stanford University and the Industrial Technology Research Institute (ITRI) together with the School of Technology Management, National Tsing Hua University, will co-sponsor an invitation-only workshop at Stanford University.

Deadlines and Proposal Submission Guidelines

  • Paper proposals are due by July 31; notification of acceptance will be by Aug. 18; papers are due Oct. 31
  • Papers will be considered for inclusion in the proceedings, which will be published in English by SPRIE.
  • Paper proposals should be 1-2 pages long (single-spaced) and in English; include with your proposal citations of your recent and related publications.
  • Submit your proposal in .pdf format; send via electronic mail with the subject "November workshop proposal" to sprie-stanford@stanford.edu. Be sure your proposal arrives in time for the July 31 deadline or it will likely not be considered!
  • Academic presenters of papers will receive a sum that serves both as an honorarium and as support for travel expenses from the home institution to Stanford. Those whose travel across the Pacific or Atlantic will receive $2,000; those who travel from within the contiguous United States will receive $1,800, and those from the Bay Area will receive $1000; lodging and food will be covered by the organizers. Note that papers with multiple authors only receive one honorarium.
Theme

Leading high tech regions face the challenge of sustaining their competitive position amidst shifts in the global knowledge economy. Their ability to create/re-create their edge depends in large measure on the ability to foster innovation and entrepreneurship--to respond to challenges and opportunities presented by competition and collaboration with rising high tech regions as well as to innovate in technologies, services, processes, strategies and business models. The workshop will concentrate on three topics:

Indicators and Analysis of Regional Innovation and Entrepreneurship

  • What are the core strengths and weaknesses of major high tech regions now facing the challenge of sustainability? How are they evolving? Which indicators best reveal regional attributes and trends and how can we improve the collection of such data?
  • What key factors are determining the development of these regions and how is each region's performance in innovation and/or entrepreneurship?
  • What indicators point to the next stage of development for these regions?
Policies, Strategies, Models
  • How are regions responding to pressing challenges and opportunities? How are regional leaders reinventing strategies, exploring new practices, and developing new models?
  • How effective have government policies (national and local) been in fostering productive high tech regions? What are similarities and differences in these policies across regions/countries?
Global Linkages
  • High tech regions are connected through people, technology and capital, linkages that have become both more important and more complex.
  • How do multinationals, hybrid firms and local firms use linkages of people, technology and capital to enhance their competitive advantage? What new business models have emerged recently?
  • What forces nurture or inhibit these global high tech linkages? What kinds of processes and networks are at play and what is their impact on the vitality and sustainability of regions?

Stauffer Auditorium
Hoover Institution
Stanford University

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Despite its threat of severe consequences, the Bush administration has little leverage to use on North Korea to keep it from testing a long-range missile and few ways to punish the nuclear-armed nation if it proceeds. Daniel C. Sneider, associate director for research at Shorenstein APARC, comments.

WASHINGTON - Despite its threat of severe consequences, the Bush administration has little leverage to use on North Korea to keep it from testing a long-range missile and few ways to punish the nuclear-armed nation if it proceeds.

The United States has no diplomatic or economic ties with North Korea, the rudimentary U.S. missile-defense system is untested in real-world conditions and Pyongyang is regarded as having a right to test missiles, making any American attack to forestall a launch an act of war with potentially explosive consequences.

"The United States could try to shoot down the rocket, but good luck,'' said Wonhyuk Lim of the Brookings Institution, a policy-research organization in Washington.

The dearth of options illustrates the limits of the administration's pre-emption strategy and its need to rely on the cooperation of others -- especially given the strains on the U.S. military from Iraq and Afghanistan -- to contain threats.

Washington hopes that the world's only Stalinist regime will heed demands by the United States, South Korea, Japan, Russia and China to uphold a self-imposed 1999 moratorium on missile tests and rejoin talks on curbing its nuclear program in return for security guarantees and economic and political benefits.

At the same time, the administration is reviewing its options should the Kim Jong Il regime test-fire what U.S. officials describe as a multi-stage Taepodong-2 missile, thought to be capable of reaching Alaska.

"The launch of a missile would be a provocation,'' Assistant Secretary of Defense Peter Rodman said Thursday during a House Armed Services Committee hearing. "If such a launch took place, we would seek to impose some cost on North Korea.''

Rodman declined to say what Washington would do. Experts said that even the imposition of sanctions by the United States would be largely symbolic.

They think that North Korea would not have readied the missile for flight unless it had decided it could live with the consequences.

"It probably means they are not worried about the American reaction,'' said Daniel C. Sneider of Stanford University's Shorenstein Asia-Pacific Research Center. "There is nothing that the United States can do to them.''

The United States has no diplomatic relations or financial assistance it can threaten to cut, and it suspended contributions to international food aid for North Korea last year.

The administration has moved against Pyongyang by trying to halt its missile sales to other countries, its alleged international narcotics trafficking, and its alleged counterfeiting of U.S. currency, cigarettes and over-the-counter drugs.

Under American pressure, banking regulators in February froze North Korean accounts at the Banco Delta Asia, a Macao bank that the U.S. Treasury Department accused of laundering North Korea's ill-gotten gains.

Other banks, anxious to avoid American scrutiny, reportedly have curtailed business with North Korea.

David L. Asher, a former Treasury Department official who oversaw the crackdown on North Korea's alleged illicit dealings, said the United States could respond to a test with an intensified campaign against Pyongyang's alleged international criminal activities that would hurt the ruling elite.

"Do not underestimate the impact of the financial pressure we could put on them,'' said Asher, a scholar with the Institute for Defense Analyses, a policy-research organization.

Washington is counting on Japan, which also is threatened by Pyongyang's nuclear arms and missile programs, to react to a launch by closing ports to North Korean ships and shutting off remittances by ethnic Koreans to relatives in North Korea. But those measures are expected to have limited impact.

A North Korean missile test in 1998 prompted Japan to boost missile-defense cooperation with the United States, and experts said a new launch probably would prompt Washington and Tokyo to forge even closer military ties.

The only nations that could tighten the screws significantly are China and South Korea, North Korea's main foreign trading partners and aid donors.

But while Seoul and Beijing would be outraged, because a missile test would effectively kill hopes of restarting talks on containing North Korea's nuclear arms program, they are unlikely to take any step that could rock Pyongyang.

Both are anxious to avoid destabilizing their neighbor of 26 million people. China doesn't want to be overwhelmed by North Korean refugees, and South Korea would be unable to bear the economic and social costs of sudden reunification.

They also fear that Kim's government could lash out with its million-member army against the South, igniting a conflict that would drag in the United States and devastate the Asian-Pacific economy.

"China and South Korea fear instability more than they fear a nuclear North Korea,'' said Marcus Noland, an expert at the Economic Policy Institute.

Moreover, Beijing probably would be unwilling to jeopardize the budding commercial ties it has been pursuing with North Korea.

"China opposes sanctions on North Korea because it believes they would lead to instability, would not dislodge the regime but would damage the nascent process of market reforms and harm the most vulnerable,'' said a February report by the International Crisis Group, a conflict-prevention organization.

South Korea has been pursuing a policy of economic engagement and political exchanges with North Korea.

The United States has been consulting with members of the U.N. Security Council on a response to a North Korean test. But North Korea has the right under international law to test-fire missiles, making it tough for the United States to win more than words of chastisement of North Korea from the council.

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The anticipated title from Cambridge University Press has been released in hard-cover and is available for purchase. Edited by PESD director, David Victor, Rice professor Amy Jaffe, and PESD fellow Mark Hayes, the book sheds light on the political challenges which may accompany a shift to a natural gas-fed world.

Energy is on the front burner and will stay there, so this book has special value. Read it and learn about the topic of today and tomorrow and tomorrow.

- George P. Shultz, United States Secretary of State, 1982-1989

The coming phase of energy industry development is bringing with it the rapid globalisation of the gas business. Long term take-or-pay contracts, which align supply and demand and which formed the foundation of all successful projects in the past, are coming under pressure from liberalisation. But security of supply still depends on security of demand: this timely and authoritative study demonstrates that, if gas is to

fulfil its enormous promise as an energy source, new ways must be found to establish the confidence of both sides that secure supply will be matched by reliable demand

- Frank Chapman, CEO, BG Group plc

This is a very valuable addition to the global literature on energy issues and energy policy ... Natural Gas and Geopolitics goes deep into the global gas policy issues that affect critical US energy policy, not only looking backward but helping understand what may happen as the global natural gas market develops.

- Bill Richardson, Governor of New Mexico, United States Secretary of Energy, 1998 2001

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