China possesses vast coal reserves, and coal accounts for 70 percent of the country’s total energy consumption—3 billion tons per year. But China also consumes oil, natural gas, and an increasing amount of renewable energy.

Xuteng Hu, a Corporate Affiliates Visiting Fellow Program alumnus (2007–08), manages energy and materials development projects at PetroChina’s Petrochemical Research Institute in Beijing, where he serves as vice president.

Hu received his master’s and doctorate degrees in chemical engineering from Tsinghua University. 

PetroChina, one of China’s largest energy companies, has recently developed its own biojet fuel. The company is also researching other renewable energy technologies, including biofuel made from plant fiber.

During his year at Stanford University, Hu conducted research on the governance of China’s state-owned enterprises, focusing on energy companies like PetroChina, Sinopec, and China National Offshore Oil Corporation. He also studied strategies for the development and promotion of different forms of energy, ranging from coal to chemicals and oil to natural gas. Jean C. Oi, a political science professor and director of the Stanford China Program, served as Hu’s research advisor.

Since returning to China three years ago, Hu has managed the research and development of synthetic petroleum-based materials, and the construction of major pilot petrochemical plants. Perhaps most exciting of all, the biojet fuel project he led conducted a successful demonstration flight in October.

Of his time at Stanford, Hu says: “My experiences helped me think about corporate governance structure, energy development, and other issues related closely to my work from different perspectives, such as culture and society. It also enhanced my understanding of cultural and business exchanges between China and the West.”

For the past two decades China has been a poster child of successful globalization. But its integration into the world economy and global trends drive and constrain Beijing's ability to manage growing social, economic and political challenges. In a YaleGlobal Online series article, Thomas Fingar looks at the global implications of China’s development challenges.

In Kenya, 11 million people suffer from malnourishment. Twenty percent of children younger than five are underweight, and nearly one in three are below normal height. In a typical day, the average Kenyan consumes barely half as many calories as the average American.

But Kenya – and other underfed countries throughout Sub-Saharan Africa – have more than enough land to grow the food needed for their hungry populations.

The juxtaposition of food deprivation and land abundance boils down to a failure of national agriculture policies, says Thom Jayne, professor of international development at Michigan State University. Governments haven’t helped small farmers acquire rights to uncultivated land or use the land they own more productively, he said.

Speaking earlier this month at a symposium organized by the Center on Food Security and the Environment, Jayne said lifting African farmers out of poverty will require a new development approach.

The focus, he said, should be on increasing smallholder output and putting idle land to work in the hands of the rural poor.

Much of Sub-Saharan Africa’s fertile land, Jayne explained, falls under the ownership of state governments or wealthy investors who leave large tracts of land unplanted.

Meanwhile, population density in many rural areas exceeds the estimated carrying capacity for rainfed agriculture – approximately 500 persons per square kilometer, according to the U.N. Food and Agriculture Organization. Above this density threshold, farm sizes become so small, farming becomes economically unsustainable.

“As farm size shrinks, it’s increasingly difficult to produce a surplus,” Jayne said. “As it’s difficult to produce a surplus, it becomes difficult to finance investments in fertilizer and other inputs that could help you intensify.”

Agricultural development policies, Jayne said, have exacerbated these problems. One Zambian fertilizer subsidy program, for example, delivered support payments to over 50 percent of farms greater than five hectares in size – but only reached 14 percent of farmers whose holdings measured one hectare or smaller.

“This was a poverty reduction program that was targeted to large farms,” Jayne said. “Where’re the allocations to R&D appropriate to one hectare farms, tsetse fly control, vet services, all the things that are going to make that one hectare farm more productive?”

He stressed that investments in small farms could reduce poverty.

“Fifty to seventy percent of the population in these countries is engaged in agriculture,” he said. “There aren’t very many levers to reduce poverty and get growth processes going except to focus on the activities that that fifty to seventy percent are primarily engaged in.”

Smallholder-based growth strategies delivered stunning results in Green Revolution-era India – while large-farm strategies in Latin American countries have largely failed to alleviate rural poverty, he said.

Symposium commentator Byerlee, a rural policy expert and former lead economist for the World Bank, agreed with Jayne. In particular, Byerlee expressed skepticism about the benefit of large land investments by foreign agricultural interests.

“The social impacts aren’t going to be very much,” he said of the large-scale mechanized farming operations favored by foreign investors.

“They don’t create many jobs,” he said. “That’s really what we should be focusing on in terms of poverty reduction – job creation.”

Byerlee also stressed the need to formalize Sub-Saharan Africa’s land tenure systems. Currently, he said, about eighty percent of Africa’s land is titled informally under “customary” rights.

“When you have this population pressure, and on top of that you have commercial pressures coming in from investors, this system is just not going to stand up,” he said. “If you had better functioning land markets, it could reduce the transaction costs for investors, allow smallholders to access land, and provide an exit strategy for people at the bottom end.”

Jayne suggested reforms and new policies should include mechanisms to help small farmers gain access to unused fertile land. He called for comprehensive audits of land resources in Sub-Saharan African nations, a tax on uncultivated arable acreage, and a transparent public auction to distribute idle state lands to small farmers.

Additionally, he said, governments can help by improving infrastructure in remote rural areas and clearing fertile land of pests – such as tsetse flies – that threaten crops and human health.

But whatever particular policies they choose to pursue, Jayne said, African governments cannot afford to ignore the problems associated with inequitable land distribution and low smallholder agricultural productivity and. Failure to implement broad-based, smallholder-focused growth strategies will result in “major missed opportunities to reduce poverty in Sub-Saharan Africa,” he said.

This was the seventh talk in FSE's Global Food Policy and Food Security Symposium Series.

Computers and the networks that connect them are powerful storehouses of information. They're also vulnerable to sabotage, and the data they handle can be stolen, altered or erased. President Obama has called cyberattacks "one of the most serious economic and national security threats our nation faces." 

To help tackle the problem, researchers at Stanford’s Center for International Security and Cooperation are exploring issues in cybersecurity and keeping a close eye on the policy discussions. Earlier this month, CISAC brought together a group of lawmakers and industry leaders from Silicon Valley to discuss new efforts to prevent cyberespionage and related crimes. 

Rep. Mike Rogers (R-Mich.) talked about a bill he’s introduced to safeguard technology. "The intelligence community believes strongly that it's just a matter of time before we have a catastrophic cyberattack," said Rogers, chairman of the House Permanent Select Committee on Intelligence. "We have admired this problem for a very long time and it's time to do something." 

Among the other speakers were Rep. Anna Eshoo (D-Calif.), Intel Chief Executive Officer Paul Otellini, and security experts from Google, Cisco Systems and Oracle. 

After the invitation-only event, CISAC's Mariano-Florentino Cuéllar, Otellini and Rogers discussed the future of the Internet, the scope of the cyberthreat and government's role in defending against it. Excerpts: 

 

There are core questions about where the world is going  

"Cybersecurity problems are real and they’re immediate. And the threats are probably growing and the problems we face require solutions. But it’s just as important to think about where we’re going to be 20 to 30 years from now as it is to deal with the immediate problems. That’s because the choices we make about how to secure cyberspace are going to be choices about what your identity will be online, what powers government will have, what nation states will be able to do to each other, what companies will be able to do when they deal with cyberthreats, how aggressively they will be able to respond on their own -- those are essentially choices about the architecture of the world. So it's useful for us to understand as scholars and as people engaged in policy, that choices about cybersecurity are not just technical. They’re really core questions about where is the world going."

-- Mariano-Florentino Cuéllar, co-director, Center for International Security and Cooperation

 

Preventing electronic pickpockets 

"On the commercial side it's no secret that there's industrial espionage going on through cyberhacking. There are also rogue groups that are not nation states, but people who just want to steal your identity. So the ability to see those attacks coming, to see those profiles coming, and to be able to improve the quality of the computer network and the phone networks and the phones themselves will also allow us to protect our own intellectual property as companies, and protect the identity and potentially the financial assets of our collective customers. When your cell phone is your wallet -- as it will be in the not-too-distant future -- all of a sudden that's like having an electronic pickpocket. An attack is going to compromise everything you have. Beyond that, many large technology firms feel that as good corporate citizens and as good local citizens, we have a responsibility to try and make sure the world's computer networks are not disrupted. If computers aren’t trusted, we don't have much of a business. We are commercially incentivized to make all this stuff so much better."

-- Paul Otellini, chief executive officer, Intel. 

 

We can be a partner with industry 

"Individually, a company gets hacked for espionage purposes -- that's a criminal event. Collectively, it becomes a national security issue because of the sheer volume of intellectual property that would be compromised. You also have the other level: a disruptive cyberattack that shuts down certain capabilities, whether it's financial, in the energy sector or otherwise. We've fought this fight with dot-gov and dot-mil for quite a long time. Dot-com has, too, but they've been a bit on their own. This proposal has the government weighing in and saying, 'Hey, maybe we can be a partner.'"

-- Mike Rogers, chairman of the House Permanent Select Committee on Intelligence. 

After 10 years of rapid growth, China will undergo a major leadership transition later this year. Two recent Shorenstein Asia-Pacific Research Center edited volumes -- Going Private in China and Growing Pains -- put China’s development into context as the country prepares for the next decade of its future.