International Relations

FSI researchers strive to understand how countries relate to one another, and what policies are needed to achieve global stability and prosperity. International relations experts focus on the challenging U.S.-Russian relationship, the alliance between the U.S. and Japan and the limitations of America’s counterinsurgency strategy in Afghanistan.

Foreign aid is also examined by scholars trying to understand whether money earmarked for health improvements reaches those who need it most. And FSI’s Walter H. Shorenstein Asia-Pacific Research Center has published on the need for strong South Korean leadership in dealing with its northern neighbor.

FSI researchers also look at the citizens who drive international relations, studying the effects of migration and how borders shape people’s lives. Meanwhile FSI students are very much involved in this area, working with the United Nations in Ethiopia to rethink refugee communities.

Trade is also a key component of international relations, with FSI approaching the topic from a slew of angles and states. The economy of trade is rife for study, with an APARC event on the implications of more open trade policies in Japan, and FSI researchers making sense of who would benefit from a free trade zone between the European Union and the United States.

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The president, surrounded by his Cabinet members and senior national security and foreign policy advisors, appears grim as he declares: “This is certainly the greatest crisis I’ve ever faced as a president.”

He has ordered the deployment of U.S. forces into Syrian territory to protect civilians and establish safe zones. His Cabinet must now determine whether to order a pre-emptive strike against Syrian troops on word from the CIA that the Bashar al-Assad regime appears ready to use chemical and biological weapons stored in underground bunkers east of Damascus.

After a military briefing by the commander of CENTCOM, the president cautions those assembled at the classified briefing: “Remember, history will judge us, in part, by how thoroughly we discuss all the options today.”

With imagined top-secret memorandums from the CIA and the White House – as well as the real-deal Obama Nuclear Posture Review – some 20 Stanford undergraduate and law students dressed in suits and armed with laptops and position papers spend three hours debating the merits of an attack on Syrian forces.

Scott Sagan, a political science professor and senior fellow at the Center for International Security and Cooperation (CISAC), plays Obama in the class co-taught by Allen Weiner, director of the Center on International Conflict and Negotiation at the Law School.

The Ethics and Law of War class presents law and political science students with some of the political, legal and moral consequences of war. For their final simulation, they must stay in character, grill one another as policymakers and world leaders might do behind closed doors – and then defend their final decisions.

“Instead of simply learning abstract just-war theory or international law doctrine, the simulations encourage students to apply what they've learned to real problems,” says Weiner, once a legal adviser at the State Department. “This provides for much deeper awareness of the subject matter and richer appreciation of the nuances and complexities.

   
   
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Scott Sagan as President Obama 

 

Ethics & War

The class grew out of Stanford’s hugely successful, two-year War & Ethics lecture series, which concluded last month. Philosophers, writers, journalists, historians, social scientists, human rights activists and policy makers came together several times a month to grapple with the complex ethical equations of war. Co-sponsored by a dozen centers and departments across campus, the series drew big names and big crowds.

Vietnam War veterans and award winning authors Tobias Wolff – a Stanford English professor – and Tim O’Brien told a sold-out audience that writing about war was both therapeutic and heartbreaking. O’Brien was a Pulitzer Prize finalist for “The Things They Carried,” a harrowing string of stories about a platoon of American soldiers in Vietnam.

How do you write about war? “You do it sentence by sentence, line by line, character by character, even syllable by syllable,’ O’Brien told a mesmerized audience. “You dive into that wreck and try to salvage something.”

Journalist Sebastian Junger spoke at the screening of  “Restrepo,” his documentary about the Afghanistan War. Stanford students and faculty performed in George Packer’s play, “Betrayed,” which illuminated the U.S. abandonment of young Iraqi interpreters who risked their lives for Washington during the Iraq War. For the final event, Debra Satz, a philosophy professor and director of the McCoy Family Center for Ethics in Society, Sagan, and Charles Dunlap, a retired Air Force general who now leads the Center on Law, Ethics and National Security at Duke University, debated the future ethical challenges of war.

Sagan, an expert in nuclear policy and the proliferation of weapons of mass destruction who worked at the Pentagon and was a consultant to the Secretary of Defense, said the lecture series enriched his students by forcing them to pay attention and question the moral and legal underpinnings of the wars in Iraq and Afghanistan.

“I was stretched, intellectually, by this series,” he said. “It encouraged me to read and discuss both fiction and philosophy that raises the same ethical issues – from a very different perspective – that we analyze in political science.”

Back to class

Weiner, as stand-in for Vice President Joe Biden, tells those assembled they must consider that within 24 hours, 6,000 American troops will be in danger. The CIA has a “high degree of confidence” that Assad has ordered the removal of the chemical weapons from the underground bunkers and transport trucks have been spotted at the sights.

“As we head into an election cycle, the difficulties of the decision that we make today will be placed under even greater scrutiny,” Weiner says.

That decision will be to make one of these hard choices:

  • The U.S. military withdraws its troops and avoids a military confrontation, but risks further civilian deaths and the condemnation of Arab Spring allies;
  • Obama orders conventional airstrikes against Syrian troops, which could lead to thousands of inadvertent civilian casualties;
  • Washington takes extraordinary measures and uses nuclear weapons to destroy the underground storage bunkers for its weapons of mass destruction. This last option likely would eliminate any chance of Syrian troops using chemical weapons, but it would open a Pandora’s box for the Nobel Peace Prize president who has pledged to work toward a nuclear-free world.
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         U.S. Army Col. Viet Luong as CENTCOM Commander Gen. James Mattis

The students know Americans are weary of war after the WMD fiasco in Iraq and a decade-long war in Afghanistan, both of which have claimed countless lives and a trillion-plus in taxpayer dollars. Their decision – as Secretary of State Hillary Clinton and Secretary of Defense Leon Panetta, among others – is weighted by the concern that Americans likely won’t re-elect a president who drags them into another costly warm, and by the fear that a successful president cannot let American troops be exposed to deadly chemical attacks.

The mock military briefing by Gen. James Mattis – played by visiting CISAC military fellow, U.S. Army Col. Viet Luong, himself a commander in Afghanistan – lays out the risks and probabilities of casualties under each scenario.

A student asks Luong which military option he would recommend.

The general prevaricates: “I’m a military guy; I tend to lean toward success and then I also consider civilian casualties. But I’m also very concerned about putting my soldiers at risk.”

Clinton, voiced by international policy student Micaela Hellman-Tincher, says she’s concerned about mission creep. “Consider the international implications of us entering into conflict,” she says.

The fake Samantha Power of the National Security Council, played by Ashley Rhoades, urges diplomatic measures and a stand-down from military conflict. “I’m not advocating in any way for inaction,” she says. “There are several diplomatic solutions. We ask that you give us 24 hours to be able to work on these diplomatic options and multilateral diplomacy.”

Such as what? Such as calling on Moscow to mediate or seeking a U.N. envoy.

The legal team from the law school lays out their arguments for why a preventive strike would be illegal under certain conventions; while a pre-emptive strike based on imminent and unavoidable threats of attack might be permissible.

Then Stanford law student Alex Weber – playing Avril Haines, legal advisor to the National Security Council – addresses the elephant in the room: the nuclear option.

“If you use a nuclear weapon, regardless of whether the Syrians use chemical weapons against our troops, you are, as Colin Powell said in the 1991 Gulf War, opening a Pandora’s Box, particularly because Syria has no nuclear weapon,” Weber says. “You are the nuclear nonproliferation president. There is a psychological button that you push that will prompt the media to take the ethical debate to new levels.”

In the end, consensus appears to be growing around an immediate preventive strike against the storage bunkers using conventional forces. The Cabinet knows this could lead to deaths on both sides, but allowing the Syrians to use chemical weapons could lead to even more.

“You can’t cut and run, Mr. President,” insists student Torry Castellano, playing White House Chief of Staff Jacob Lew.

Obama says he will take their advice under advisement and all rise as he leaves the war room.

 

More photos of the student simulation are available at CISAC's Facebook page.

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Stanford seniors Stephen Craig and Clay Ramel have been awarded The Firestone Medal for Excellence in Undergraduate Research and The William J. Perry Prize, respectively, for their theses on German's foreign policy and the global politics of oil.

Both recipients are students of the CISAC's Undergraduate Honors Program in International Security Studies and will graduate next week.

Craig, a political science major, wrote "Tamed Tiger or Restless Beast? German Foreign Policy in the Post-Unification Period."

Ramel, a science, technology, and society major, wrote “Reconsidering the Roots of Crude Coercion: a Policymaking Analysis of `the Oil Weapon.'”

The Firestone Medal recognizes the top 10 percent of all honors theses in social science, science, and engineering. The Perry Prize is awarded to a student for excellence in policy-relevant research in international security studies. 

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This research area explores the national and international land and water laws that govern land tenure and property rights in sub-Saharan African countries, with the aim of understanding how large-scale land investments influence the tenure security, and therefore food security, of local farmers. The World Bank and others have identified a large agro-ecological region of African known as the Guinea Savannah as well-positioned for major agricultural development.

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Stephen Craig: "Tamed Tiger or Restless Beast? German Foreign Policy in the Post-Unification Period"

Clay Ramel: “Reconsidering the Roots of Crude Coercion: a Policymaking Analysis of “the Oil Weapon””

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This report discusses desirable policy directions and options in the aftermath of the Great Tohoku Earthquake. It argues that the importance of Japan’s productivity growth has not been invalidated by the disaster, and suggests that Japan should consider restoration and reconstruction from the earthquake as a great opportunity to reposition its policies.

It identifies concrete steps Japan can take to jump start growth in three broad themes: regulatory reforms (reducing the costs of doing business, stopping protection for zombie firms, deregulation especially in non-manufacturing sectors and growth enhancing special zones); opening-up of the Japanese economy (trade liberalization, reduction of agricultural subsidies and new immigration policy); and macroeconomic policy reforms (fiscal consolidation and monetary expansion to end deflation).

 

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Mark C. Thurber, David R. Hults

National oil companies (NOCs) often behave in strikingly different ways from one another and from private, international oil companies (IOCs). Given that NOCs control about three-quarters of world oil reserves by equity share, their variation in corporate strategy has important implications for the world oil market. The recently released book Oil and Governance: State-owned Enterprises and the World Energy Supply, which we co-edited (along with our colleague, David Victor) and contributed to, explores the variation among NOCs through 15 detailed case studies and several cross-cutting pieces. Building off the research in that book, our aim in this essay is to discuss the differences among NOCs in their approach to risk

As described by Nolan and Thurber in Chapter 4 of our book, the notion of risk encapsulates both the likelihood of a negative outcome (e.g., of drilling a dry hole) and the loss that such an outcome would entail (e.g., the investment in an exploration well). Risks are pervasive in the oil industry because of the enormous sums of money on the line and the significant uncertainty around whether investments will prove successful. In this article we suggest that the goals of the state and its tools of governance may cause an NOC to tend towards one of three types of behavior: risk avoidance, risk taking, or risk management. Each of these three approaches to risk, we find, can be useful or counterproductive for the state depending on the context.

It can be useful for an NOC to avoid risk, as Sonangol has done, if its government is highly dependent on oil revenue, but this approach usually means that it must allow IOCs to shoulder risks if the oil sector is to thrive. Intelligent risk taking by the NOC, on the other hand, can help build domestic technological capability and may be a reasonable approach if the government has less need to maximize hydrocarbon revenue in the short term. Finally, commercial risk management by the NOC may be an appropriate model where the NOC has developed some competitive advantages and its government has few remaining expectations for the NOC apart from revenue generation. There is no “right” or “wrong” approach to risk for NOCs in a general sense. The goal of each government and its NOC should be to make sure that the way the NOC takes, avoids, or manages risk is of benefit to both the country and the NOC itself.

 

Link to article (free trial subscription available) => http://www.worldoil.com/June-2012-Risk-attitudes-shape-national-oil-company-strategies.html

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During the annual China-Japan-Korea summit, held mid-May in Beijing, Premier Wen Jiabao, Prime Minister Yoshihiko Noda, and President Lee Myung-bak announced their intention to begin negotiating a trilateral free trade agreement (FTA).

The news closely followed the implementation of the Korea-U.S. FTA and negotiations over the Trans-Pacific Partnership (TPP) FTA championed by the Obama administration, both taking place in March. It potentially places Japan and Korea on awkward footing as they balance relations with China, an important regional leader, and the United States, an ally of many decades’ standing.

What could this proposed East Asia FTA mean for the United States, for the three countries pursuing it, and for global economics and security?

Joseph L. C. Cheng, a visiting professor at Shorenstein APARC and a professor of international business at the University of Illinois where he also serves as director of the CIC Center for Advanced Study in International Competitiveness, suggests the FTA could have a far greater impact beyond boosting economic growth in East Asia. Possible outcomes range from reducing resources for strengthening the U.S. domestic infrastructure to providing leverage for negotiating with North Korea over its nuclear program.

In a recent interview, Cheng spoke in-depth about the nuances of the trilateral East Asia FTA.

If the proposed China-Japan-Korea FTA is realized, what could the impact be on the U.S. economy and economic policy?

These three countries are currently ranked the second (China), third (Japan), and fifteenth (Korea) largest economies in the world. With a combined population of 1.5 billion, they account for about 20 percent of the world’s GDP and total exports. In 2011, their three-way trade reached $690 billion, and the United States sold them a total of $213.6 billion worth of merchandise (over 14 percent of U.S. total world exports in 2011).

If realized, the proposed FTA could have both negative and positive effects on the U.S. economy. On the negative side:

  • First, cross-border trade and investment would most likely increase among China, Japan, and Korea, but not with the United States. Whether the FTA would result in decreased U.S. trade and investment with these countries and by how much will depend on the range of industries and product categories covered by the FTA and how rigorously it will be enforced. Most of this negative impact from the FTA would be with China. This is because the United States already has an FTA with Korea, and Japan (along with Canada and Mexico) is likely to join the U.S.-led TPP FTA which is currently under negotiation.
  • Second, if the FTA did cover the industries and product categories that disadvantage the United States, small-and-medium sized export firms (SMEs) would be the most negatively affected by the decline in U.S. exports to the three member countries. This is because over 90 percent of U.S. SMEs do not conduct manufacturing overseas (and thus cannot produce and sell in these three countries to benefit from the FTA), and their market access is dependent on the U.S. government’s trade initiatives. The SMEs account for about one-third of total U.S. exports and provide most of the domestic job growth.
  • Third, not only would the three member countries import less from the United States, they would also invest less in the United States (but invest more in one another). When announcing the FTA talks, China’s Premier Wen expressed hope that Japan and Korea will be the primary destination for China’s outward investment. This decline in foreign investment from the three member countries in the United States could have a negative impact on domestic job growth and funding for business expansion and public revitalization projects (e.g., infrastructure replacement and modernization).
  • Fourth, because FTAs disadvantage trade from non-member countries, U.S. multinational corporations (MNCs) could be forced to produce and sell goods from their plants in the three member countries (instead of those in the United States) in order to stay competitive. This would mean moving jobs overseas. Also, because these member countries have bilateral FTAs with many other countries in Asia (e.g., the China-ASEAN FTA introduced in January 2010), U.S. MNCs might find it beneficial to increase production there (China, Japan, and Korea) for export to the region. Again, this would result in transfers of jobs overseas and also reduced investment by U.S. MNCs at home (which could help create jobs and grow the domestic economy).

On the positive side, the proposed FTA could result in fewer imports from the member countries into the United States. This would provide an opportunity for U.S. manufacturers, particularly the SMEs, to increase their domestic production to fill the demand-gap and recapture the market-share that has been lost to imports. If U.S. manufacturers could produce unique, high-quality products at an affordable price, they would be able to not only attract new domestic customers and keep them but also open new export markets in other countries, including China, Japan, and Korea.

As for potential impact on U.S. economic policy, the Obama administration might feel the need to speed up the TPP negotiations (which might require making the final FTA less comprehensive and less rigorous than originally proposed) and put the agreement in place ahead of the proposed China-Japan-Korea FTA. Also, the administration might be pressured by the business community to start FTA talks with China, as has been suggested by Maurice Greenberg, chairman of Starr International Company Inc. and former AIG chief. These FTA talks will take years to conclude and implement. In the meantime, the United States should introduce new economic policies to revitalize the domestic manufacturing sector and help position it for enhanced international competitiveness.


Could there be an impact on the struggling economies of Europe?

The proposed FTA would most likely have a similar impact on Europe, namely decreased trade and investment with the three member countries of China, Japan, and Korea (assuming the agreement included industries and product categories that disadvantage Europe). Because of Europe’s worsening debt crisis, the negative impact there would likely be greater than it would be on the United States. Currently, the European Union (EU) has an FTA with Korea, but not with China or Japan. Also, with the exception of Norway, none of the European countries is in FTA talks with China. Switzerland is the only European country with an FTA with Japan. This is not good news for Europe if it wishes to benefit from increased trade and investment with China, Japan, and Korea.

Is there a potential upside for the global economy?

Most of the expected economic benefits resulting from the proposed FTA will go to the three member countries of China, Japan, and Korea. The Chinese government estimates that the FTA could raise China’s GDP by up to 2.0 percent, Japan by 0.5 percent, and Korea by 3.1 percent. The Korean finance ministry estimates that the FTA could boost the nation’s economic growth by up to 3.0 percent and create as many as 330,000 jobs over a decade. This is consistent with the experience of the introduction of the China-ASEAN FTA in January 2010, which caused trade in the region to increase by about 50 percent in that year.

The expected economic growth in the three member countries (and the Asia-Pacific region) could, in the longer term, lead to increased imports from the United States and other Western countries for goods and services that they cannot produce or do not produce enough of. This might result from increased spending by individual consumers on luxury and unique goods and/or government purchase of advanced technologies for infrastructure projects. The increased imports would certainly help lift the global economy by creating more jobs and generating greater incomes in the exporting countries.

When announcing the proposed FTA in Beijing, the three leaders from the member countries made it a point that they will work together to ease regional disputes and tensions, particularly on the Korean Peninsula. They also expect the FTA to help provide a comprehensive and institutional framework in which a wide range of bilateral and trilateral cooperation would evolve, with the goal of maintaining the Asia-Pacific region as the growth center of the world economy. (Currently over 50 percent of the world’s economic growth is taking place in Asia.) To the extent that this can be accomplished, the proposed FTA will have farther-reaching consequences than being just a regional trade agreement.



What is driving the announcement about the intended FTA at this specific point in time?

It is not clear if the announcement was purposefully timed to meet certain strategic objectives. However, a number of factors and recent developments suggest that the timing is quite beneficial to the member countries.

First, the three countries had been in discussion about the proposed FTA for over ten years prior to the announcement. Two of the three principals, China’s Premier Wen and Korea’s President Lee will be leaving office by year’s end and would certainly like to be remembered as architects of this important treaty by participating in its announcement. 

Second, the deteriorating economic crisis in the EU and the slow recovery of the U.S. economy make it very clear to the three leaders that they need to stimulate internal consumption and investment to maintain economic growth in their respective countries. Announcing the proposed FTA now helps ease concerns about the global economy and signal to international investors that the Asia-Pacific region will remain the center of the world’s economic growth for many years to come.

Third, from China’s standpoint, the recent scandals of Bo Xilai and the blind civil rights activist Chen Guangcheng brought negative attention to the country for the entire month of April. The mid-May announcement of the proposed FTA helps redirect the world’s attention to the economic success of China and its influential role in shaping the future of the global economy.

Finally, the recent threat of a third nuclear test from North Korea might have been another contributing factor to having the announcement made sooner rather than later. China might have thought about the proposed FTA as a message to North Korea that China is now working closely with South Korea and Japan to maintain the Asia-Pacific region as the world’s center of economic growth, and thus any new nuclear provocation from North Korea would be considered an unfriendly act.


What could be the biggest challenges to the ratification of the FTA? Can they be overcome?

Historical animosity and territorial disputes between the three member countries will be the greatest challenges to both the FTA negotiation and its final ratification. Korea has recently suspended the signing of agreements on military cooperation with Japan because of public opposition, particularly from the older generations who have bitter memories of Japan’s colonial rule. Japan and China have long been in dispute over territorial claims in the East China Sea. Both Japan and Korea have also been calling for China to put more pressure on North Korea to stop further nuclear provocations. 

In addition to these historical and political obstacles, there will be opposition from interest groups within each country against the proposed FTA for fear of negative economic consequences. For example, Chinese manufacturers might not want increased imports from Japan and Korea to reduce their market share. Japan currently has a big surplus from trade with Korea; thus Korea might not want to have more imports from Japan. Also, the three member countries are quite unbalanced in terms of the liberalization steps that they have already taken and they also have different visions for their economic future.

It will take great diplomatic skills on the part of the negotiators to overcome these challenges. The FTA talks will be difficult and take many years to produce an agreement. Alternatively, the three member countries might choose to smooth the negotiations by avoiding sensitive issues and making the agreement far less comprehensive and rigorous. This would, however, also make the FTA less economically important and consequential. 

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A cargo ship, originating in Shanghai and piled-high with containers, docks in Savannah, May 2010.
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Special CISAC Seminar 

Stephen Craig

Recipient of The Firestone Medal for Excellence in Undergraduate Research 

Tamed Tiger or Restless Beast? German Foreign Policy in the Post-Unification Period

 

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Clay Ramel

Recipient of The William J. Perry Prize 

Reconsidering the Roots of Crude Coercion: a Policymaking Analysis of “the Oil Weapon”

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Stephen Craig Recipient of The Firestone Medal for Excellence in Undergraduate Research Speaker
Clay Ramel Recipient of The William J. Perry Prize Speaker
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Almost every company is asking the question of survivability – how to balance business needs and growth, while meeting regulatory compliance and mitigating security risks? This question is facing organizations of all sizes, and for some the answer is changing the mission and scope of their IT security initiatives. In this session, Malcolm will discuss Intel’s approach to managing risk with its new “Protect to Enable” information security strategy.


Malcolm Harkins is vice president of the Information Technology Group and chief information security officer (CISO) and general manager of Information Risk and Security. The group is responsible for managing the risk, controls, privacy, security and other related compliance activities for all of Intel Corporation's information assets.


Before becoming Intel's first CISO, Harkins held roles in Finance, Procurement and Operations. He has managed efforts encompassing IT benchmarking and Sarbanes Oxley systems compliance. Joining Intel in 1992, Harkins previously held positions as the profit and loss manager for the Flash Products Group; general manager of Enterprise Capabilities, responsible for the delivery and support of Intel's finance and HR systems; and in an Intel business venture focusing on e-commerce hosting. Harkins previously taught at the CIO institute at the UCLA Anderson School of Business and was an adjunct faculty member at Susquehanna University in Pennsylvania. He received the 'Excellence in the Field of Security' award from the RSA conference as well as an Intel Achievement Award. Harkins received his bachelor's degree in economics from the University of California at Irvine and an MBA in finance and accounting from the University of California at Davis.

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Malcolm Harkins Vice President, Information Technology Group; Chief Information Security Officer; General Manager, Information Risk and Security Speaker Intel Corporation
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