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In the five decades since the end of the Korean War, Korea has developed from an impoverished, agrarian nation with a per capital GDP of less than $50 to the twelfth largest economy in the world and one of the leading global trading nations with an estimated per capita GDP of U.S. $20,165 in 2010. Despite this phenomenal economic achievement, Korea’s financial system lags behind its economic and trading status. According to the World Bank Survey, its  financial system is ranked twenty-sixth in the world. In order for Korea to continue its economic growth and become a global financial center, its financial system needs to be modernized.

This workshop has been organized to bring senior officials from industry, academic institutes, regulatory bodies, and government together to identify and address some of the issues facing Korea’s capital markets. The workshop’s objective is to conclude with a list of specific action items that can be recommended for implementation in order to address the issues that have been identified.

 

This workshop is made possible by the generous support from the Koret Foundation.

Bechtel Conference Center

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1. Eight U.S. presidents have said that the United States wants China to be strong, secure, and prosperous. Do you share that objective and what consequences, positive and negative, has China’s rise had for the United States?

2. What is the best way for the United States to respond to the rise of China, India, Brazil, and other large and rapidly growing countries?

3. Do you consider China a partner or an adversary of the United States -- and what should U.S. policy toward China seek to accomplish?

4. Given the importance of defense industry jobs, especially in Republican-leaning states, is it politically necessary for the U.S. to have an enemy to justify a U.S. military budget larger than the total military budgets of most other nations, many of which are allies of the United States. In other words, do we “need” to depict China as an adversary?

5. Robert Zoelleck, when he was deputy secretary of state, urged China to become a "responsible stakeholder" in the international system.  What did he mean by that and, in your opinion, is China a responsible participant in the international system

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This past Thursday, on the 10th of November 2011, former U.N. Secretary-General, Kofi Annan delivered a speech at Stanford University on the occasion of the launch of the Freeman Spogli Institute for International Studies' Center on Food Security and the Environment. Citing UN estimates, more precisely the UNFPA State of the World Population 2011 report, he highlighted that the world population had recently reached seven billion and growing. Advancements in healthcare and technology have increased our life expectancy, affording 'man' the ability to escape a life that is, in Hobbesian parlance, "poor, nasty, brutish, and short." Yet this apparent human success story eclipses the "shameful failure" of the international community to address an indiscernible fact: that in the contemporary technological age, an astonishing number of people in the world go hungry each day. The marriage of a globalized economy and scientific innovation was supposed to - at least in theory - increase and spread wealth and resources to enhance the human condition. And yet today - talks of unfettered markets and the financial crisis aside -, we lay witness to close to one billion people around the world who lack food security (both chronic and transitory). Citing numbers from the World Bank, Annan stated that rapidly rising food prices since 2010 have "pushed an additional 70 million people into extreme poverty". Adding to these disturbing figures is the fact that one of the world's most ravenous culprits of infanticide is no other than hunger, which claims the young lives of 17,000 children every day.

Dwindling incentives to farm and increasing pressures on farmers are not helping the food insecurity crisis. Frequently, companies who contract local farmers to produce cash crops for export do not employ "strategic agricultural planning" or take into account the impact their policies and modus operandi may have on local farming communities and their immediate (food) needs. Artificially low prices for agricultural goods force farmers from their land and discourage investment in the sector, Annan warns. Agricultural subsidies in the US and Europe against farm produce injected into the market by farmers from developing countries have also added to the problem. Agricultural subsidies in Europe in particular have had a devastating impact on farmers from other parts of the world - mostly in Asia and Africa - who simply cannot compete with the existing market conditions and the low price tags attached to their goods. This phenomenon is most acute in Africa where a significant segment of the population lives modestly by working the land and these subsidies are choking the lifeline that feeds their families. To bring home the point of the sheer imbalance between the conditions of Western farmers and the 'rest', Annan stated that with a fraction of the funds generated by a reduction of subsidies, one "can fly every European cow around the world first class and still have money left over". Without a more balanced approach to international trade policy making, subsidies will continue to be a factor in food insecurity.

And it gets worse. The 'Four Horsemen of the Apocalypse' of our times - (i) an ever emerging global water crisis, (ii) land misuse and degradation, (iii) climate change, and (iv) kleptocratic governance - have combined to aggravate an already dire international food insecurity predicament. The hard truth is that without countering the forward gallop of these ills, food insecurity cannot be adequately addressed.

The facts on the ground and projections into the future do not paint a promising picture. Food prices are expected to rise by 50 percent by the year 2050, Annan warns, and this at a time when the world will be home to two billion more inhabitants. In 40 years from now, there simply isn't enough food to nourish and satisfy the world's population.

The growing world food crisis also stifles development. It is the cyclical brutality of poverty that keeps the hungry down. Without the means or access to proper and adequate nutrition, the impoverished who are always the first victims of food insecurity invariably suffer from poor health, in turn resulting in low productivity. This vicious cycle traps the less privileged to a seemingly inescapable downward spiral.

During the course of his poignant remarks, Annan stated that without addressing food insecurity "the result will be mass migration, growing food shortages, loss of social cohesion and even political instability". He is correct on all counts.

The fact is that a world which 'cultivates' and then neglects the hungry is a dangerous and volatile world. Since time immemorial, dramatic human migrations have had a direct correlation with changes in climate, habitat and resource scarcity. Survival instincts are engrained in our genetic make-up. When the most basic and fundamental necessities of life are sparse and hard to come by, our natural inclination is to look for 'greener pastures'. An unaddressed and lingering food insecurity crisis will mean the world will witness significant and rapid migration trends in the 21st century (a phenomenon very much in motion today). The injection of mass flows of people into other foreign populations will cause friction and conflict induced by integration challenges, both social and economic (surmountable, but conflicts no less).

Moreover, the desperation and unmet basic needs of the underprivileged can translate into open outbursts of conflict and violence. Tranquility and social harmony are virtues enjoyed by countries that can provide for their people. Leaving the growing food insecurity dilemma unaddressed will be to invite inevitable political instability and violence in countries and fragile regions of the world grappling with high poverty rates and concomitant food insecurity challenges. More often than not, history has shown a positive nexus between hunger and social upheaval (it bears noting that La Grande Révolution of 1789-99 was preceded by slogans of "Du pain, du pain!"). Further, it does not take too much of a forethought to recognize that it is precisely in environments of destitute and despondency where autocratic rule can easily take root and grow to inflict further suffering.

Food insecurity can also lead to wars, but similarly wars contribute to food insecurity by destroying both the land and the ability to cultivate the land. Conflict represents formidable barriers to the access and availability of otherwise usable land (countries like Somalia, Sudan, Burundi, Ethiopia and Liberia come to mind).

To be sure, "[w]ithout food, people have only three options: they riot, they emigrate or they die" (borrowed from the often cited words of Josette Sheeran, the Executive Director of the UN World Food Program).

How are we to tackle this grave problem in a realistic and effective manner? Annan rightly tells us that the "[l]ack of a collective vision is irresponsible". Implicit in Annan's remarks is also a lack of leadership to effectively tackle and untie the Gordian Knot of food insecurity. The nature and colossal character of food insecurity demands action and cooperation on a global scale. Climate change and its negative impact on the environment - e.g. diminishing arable lands, water resources, recurring drought -, one of the accelerators of food insecurity, requires robust and committed international agreement and action to reduce the emission of greenhouse gases. Strict adherence and compliance with the Kyoto Protocol and the Copenhagen Accord are a must in this regard. With strategic agricultural planning, knowledge transfer and investment, uncultivated arable lands - abundant in many parts of the world, including in Africa - can become productive and bear fruit, reducing in turn the hunger crisis. Efforts to implement more balanced international trade policies which make farming viable across continents as well as efforts to eradicate corruption (by promoting good governance) are also part and parcel of the fight against hunger. So are innovative ways of thinking about establishing, say rapid response mechanisms to preempt and effectively counter famine and other food emergencies by bolstering the capacities of relevant existing international and regional organizations. We could also reduce the threat of hunger by doing more than just pay lip-serve to the UN Millennium Development Goals (MDGs) and uphold our commitments to the MDGs through sustained funding and support.

The UN and other multilateral bodies and pacts are tools we have created to work collaboratively - as best as human frailties permit - to confront global challenges and ills that threaten the social fabric of human society (whether they be food insecurity, dearth in development, war and the crimes that emanate from aggression which threaten peace and security, inter alia). Our capacity to reason, innovate, communicate and cooperate is hence an indispensible tool in our struggle to keep the peace, to protect our fundamental human rights and to satisfy our most basic needs for survival. It's time to put these faculties to work in confronting the world's food security challenges.

It is only fitting to conclude these brief remarks by quoting from the man and the lecture that inspired them. "If we pool our efforts and resources we can finally break the back of this problem", stated Annan in his call for action to defeat food insecurity. If there's a will, history tells us, change is within grasp, no matter how daunting the task. It only takes the trinity of courage, commitment and leadership.

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Fyodor Lukyanov is editor-in-chief of the journal Russia in Global Affairs, published in Russian and English with the participation of Foreign Affairs magazine. He has an extensive background in different Russian and international media, in which he worked from 1990 to 2002 as a commentator on international affairs.

Lukyanov now widely contributes to various media in the US, Europe and China. His monthly "Geopolitics" column appears in the Russian edition of Forbes magazine. He is a member of the Presidium of the Council on Foreign and Defense Policy, an independent organization providing foreign policy expertise and also a member of the Presidential Council on Human Rights and Civic Society Institutions.

http://creees.stanford.edu/events/DallinLectures.html

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Fyodor Lukyanov Editor-in-Chief Speaker Russia in Global Affairs
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When Siyan Yi was a medical student in Cambodia 12 years ago, he volunteered with a collaborative government-NGO project to provide young women at high risk for HIV/AIDS—the victims of sexual exploitation—with housing, vocational training, medical care, and psychological support. Cambodia at that time had one of Asia’s highest HIV-infection rates.

That rate has dropped by half, thanks to government policy measures, international NGO support, and the efforts of medical professionals like Yi. Cambodia’s government must now find ways to curb HIV infection in new segments of the population, says Yi, who is the Shorenstein Asia-Pacific Research Center’s inaugural Developing Asia Health Policy Fellow. Sustaining funding for the long-term care of HIV-infected individuals also poses a future challenge, he explains, and new health issues associated with development are beginning to crop up.

Cambodia’s first HIV case was detected in 1991 in a blood donor, and the rate of HIV/AIDS increased dramatically throughout the decade. HIV/AIDS hit Thailand slightly earlier, and was spread through the commercial sex trade. The epidemic reached an even greater scale there than it ever did in Cambodia.

Thailand’s government struck back with a 100-percent condom use promotion program, which Cambodia successfully adopted in the late 1990s. Brothels are illegal in Cambodia, but the government worked cooperatively with owners to provide basic HIV/AIDS education to sex workers. These efforts significantly reduced the transmission of HIV.

Since then, a more indirect form of prostitution has sprung up in places such as karaoke halls, massage parlors, restaurants, and even in factories. HIV prevalence remains high among some sentinel groups such as female sex workers, beer promoters, men who have sex with men (MSM), injected-drug users, and migrant workers.

Yi advocates that the government expand the scope of its HIV/AIDS prevention programs to encompass these new at-risk populations. He even suggests that the government consider creating a system of licensed brothels such as previously existed in Hong Kong and Taiwan. “It would provide the government with an easier means of controlling prostitution, and allow it to work with brothel owners to control HIV-infection rates,” states Yi.

HIV increases the risk of contracting or developing symptoms of tuberculosis; a large proportion of Cambodia’s population carries the disease but shows no signs of it. Tuberculosis went largely undetected during the decades of the Khmer Rouge regime, but with the advent of HIV/AIDS it has become more prevalent. Yi has been involved in government-NGO projects to provide tuberculosis screening for HIV patients, including a tuberculosis control project with the Japan International Cooperation Agency.

Tuberculosis screening and HIV treatment advances may greatly prolong the life—and even improve the health—of patients. But heartening as Cambodia’s success against HIV/AIDS has proven in the past decade, the government largely bears the responsibility for funding the expensive treatment and care for the low-income individuals most affected by it. A critical portion of government funding for its HIV/AIDS prevention programs comes from external organizations. 

“I think that the main issue for the government of Cambodia in the battle against HIV and AIDS is financial sustainability,” says Yi, who worries that donor agencies will withdraw support as the HIV-infection rate continues to improve. Prevention is less expensive, he explains, but long-term care is costly to a developing country such as Cambodia.

Yi, however, feels less concerned now about the HIV/AIDS epidemic and speaks hopefully of working to help the government find ways to measure and treat non-communicable diseases associated with economic development, such as diabetes and hypertension. While he is at Stanford, he will collaborate with Asia Health Policy Program researchers to move his work toward solving Cambodia’s new health challenges.

Inaugurated in 2011, the Siyan Yi is designed to bring leading health policy experts from low-income Asian countries to Stanford for three to 12 months. Fellows will work on conceptualizing and launching collaborative research on a topic of importance for health policy in their country. Details about the 2011–12 application will become available during Winter Quarter 2012.

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Local NGO staff teaching sex workers about the risk of HIV/AIDS, Cambodia.
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Catherine Baylin J.D. Candidate, Stanford Law School; PhD Candidate, History Department, Stanford University Commentator
Shiri Krebs J.S.D. Candidate, Program in International Legal Studies, Stanford Law School Speaker
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When Asia’s leaders gather in Honolulu next week for the annual Asia Pacific Economic Cooperation summit, Americans will get a glimpse of the Obama administration’s hyperactive Asia agenda. While America has always been a Pacific nation, the Obama administration is now beginning to match the world’s most populous and economically dynamic region with America’s own brand of energy and leadership.

Before President Barack Obama alights on the tarmac in Honolulu, he will have prepared the way to lead anew in Asia. Among a number of significant “firsts” for our nation in the region are:

  • President Obama in 2009 became the first U.S. president ever to attend a meeting with all 10 leaders of the nations that comprise the Association of South East Asian Nations.
  • The United States in 2010 became the first non-ASEAN country to establish a dedicated Mission to ASEAN in Jakarta.
  • Hillary Clinton was the first secretary of state in a generation to make Asia the destination of her first foreign trip.
  • Secretary Clinton also launched the “Lower Mekong Initiative,” a first-of-its-kind agreement between Cambodia, Laos, Thailand, Vietnam, and the United States to enhance cooperation in the areas of water and forest management, education, and health.

Now, President Obama will arrive in Honolulu to, among other things, attempt to get APEC nations to agree to lower tariffs on renewable energy products. He will also continue to negotiate the so-called Trans-Pacific Partnership, an Obama administration initiative with eight Asian nations, with the objective of shaping a broad-based regional trade pact that would include Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. Look for announcements of Japanese participation and a framework for the TPP agreement to be announced alongside the APEC summit.

After the APEC summit, President Obama will travel to Bali and attend the East Asia Summit, a fairly new 18-nation security forum—becoming the first U.S. president to attend this annual meeting.

All this activity is especially dramatic following eight years of low-key engagement where Asians griped about missed meetings and America’s strategic attention was focused almost exclusively in the Middle East. But most importantly, there is a well-thought out strategy for re-engagement—a strategy based on renewing long-time allies, engaging seriously newly emerging powers with an eye on preserving stability in the Pacific, while building stronger economic ties to boost American trade, job creation, and long-term economic prosperity at home.

Our stalwart ally Japan was rocked by this year’s devastating earthquake and tsunami, and America is assisting in its recovery. Our alliance remains strong, and Japan continues to be an increasingly active U.S. partner in global affairs.

Relations with South Korea are better than they have ever been. The U.S. Congress just passed a historic free trade agreement, opening the South Korean market for a wealth of American goods. Twice in two years the Obama administration (over Chinese objections) deployed the USS George Washington to the Yellow Sea and the Sea of Japan to conduct exercises with South Korea in response to North Korean aggression. Last month, President Obama welcomed President Lee Myung-bak for a state visit, the first in 10 years by a South Korean president.

President Obama will visit Australia next week to announce a deepened military cooperation pact—building once again on a long-standing alliance. This follows on Secretary of State Clinton’s signing last year of the Wellington Declaration, a roadmap for deepening and expanding the bilateral relationship between the United States and New Zealand.

The Obama administration also is engaging more closely with emerging powers.

The administration in 2010 launched the U.S.-India Strategic Dialogue, which has broadened and deepened relations with New Delhi to include issues from cybersecurity and terrorism to negotiations over a bilateral investment treaty and energy cooperation. Obama also launched the U.S.-Indonesia Comprehensive Partnership, including a series of agreements that will help defense and trade relations. The administration is also working carefully behind the scenes with Myanmar’s new leadership to urge liberalization there.

All of this brings us to China. The flurry of Asian activity makes sense in its own right to further U.S. economic, cultural, and strategic interests, but it is also a component of U.S. policy toward China. The Obama administration’s China policy involves increasing America’s ability to compete with China, working with China where fruitful, and pushing back when China’s actions cross the line. While the U.S.-China relationship is never easy, the administration has avoided major crises and managed to sell Taiwan the largest arm sales packages in any two-year period over the past 30 years without a major breach of relations with Beijing.

Indeed, where cooperation is possible, it is underway. A joint clean energy research center with China is now open, more U.S. Food and Drug Administration officials are based in China to monitor the safety of food and drugs coming to the U.S. market. What’s more, the Obama administration has had some significant success working with Beijing on the nuclear activities of North Korea and Iran, though it has followed a one step forward, two steps back pattern.

The U.S. needs to be engaged in Asia to ensure that China’s rise contributes to stability and prosperity in the region. In 2010, for example, when China made a series of aggressive moves related to the South China Sea, Secretary of State Clinton joined with her counterparts from Southeast Asia, including countries close to China such as Vietnam in what has been called a “showdown,” to make clear their desire for a peaceful, multilateral approach to the conflicting territorial claims there. China backed off its more forward actions and most strident rhetoric.

Similarly, the United States is creating incentives for China to conform to international law and standards. That’s why the Obama administration is negotiating the Trans-Pacific Partnership—a trade pact with high standards to join. The idea is build consensus in the region about a coherent set of regulations that might push China in a helpful direction. TPP rules, for example, are likely to prohibit state-owned enterprises from getting government subsidies not available to privately owned companies, an issue on which Washington has been pushing Beijing hard, with only slow progress to show for it.

These sorts of initiatives are not part of a strategy of “containment” of China, which is not possible or desirable. No Asian country would ever sign up to an anti-China alliance—each, in fact, wants to strengthen its relationship with Beijing. But at the same time, they want America to stick close by. Even if containment were possible, America benefits more from a strong, prosperous China than a weak and resentful one.

Can America afford all this Asian engagement? We have to and we will. The coming years will demand strategic choices. The next time you hear someone complaining about U.S. troops leaving Iraq, remind them that the United States is now investing more wisely and more constructively in the most important region of the world.

Nina Hachigian is a Senior Fellow at the Center for American Progress.

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