International Development

FSI researchers consider international development from a variety of angles. They analyze ideas such as how public action and good governance are cornerstones of economic prosperity in Mexico and how investments in high school education will improve China’s economy.

They are looking at novel technological interventions to improve rural livelihoods, like the development implications of solar power-generated crop growing in Northern Benin.

FSI academics also assess which political processes yield better access to public services, particularly in developing countries. With a focus on health care, researchers have studied the political incentives to embrace UNICEF’s child survival efforts and how a well-run anti-alcohol policy in Russia affected mortality rates.

FSI’s work on international development also includes training the next generation of leaders through pre- and post-doctoral fellowships as well as the Draper Hills Summer Fellows Program.

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Daniel C. Sneider
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Shorenstein APARC Pantech Fellow and San Jose Mercury News foreign affairs columnist Daniel C. Sneider, warning that a growing rift between China and Taiwan could inadvertently force a conflict that might drag in the United States, discusses his interview with Kuomintang party chairman Ma Ying-jeou.

The Middle East seems to occupy all the attention of our foreign-policymakers these days. But there are other parts of this globe that are probably more important, and potentially no less dangerous.

One of these is the Taiwan Strait. That narrow passage of water separates China from Taiwan, in Chinese minds a renegade province that must eventually be returned to its control.

The Chinese communist leadership dreads the prospect that Taiwan's democratically elected government might make the island's de facto independence a legal reality. China's heated military buildup in recent years is largely focused on creating the muscle to intimidate Taiwan and to seize the island if that fails.

A war across the Taiwan Strait makes the American top-five list of security dangers. The U.S. commitment to defend Taiwan is ambiguous, but it is not hard to imagine us being drawn into a conflict. And a war in the strait could easily expand to include Japan.

That is why the mayor of Taipei, Taiwan's capital city, got such a rousing welcome last week in Washington. Ma Ying-Jeou, or Mayor Ma as he is popularly known, does not threaten to upset the apple cart of cross-strait relations by pushing Chinese buttons with talk of independence, as the Taiwanese government loves to do.

Sitting down with Ma for breakfast as he made his way home to Taiwan, I could see why he was received with open arms at senior levels of the Bush administration. Ma, the leader of the opposition Kuomintang (KMT) party, is the front-runner in polls to win the 2008 presidential elections. He is articulate, a Harvard Law School graduate with movie-star looks and a reassuring message for Americans.

"We support maintenance of the status quo, which is also U.S. policy,'' he told me.

A KMT-led government would not waver from the "Five Nos,'' a pledge made by President Chen Shui-bian not to take steps toward a declaration of independence. He offers in addition a program of ``Five Dos'' should it return to power.

First, the KMT hopes to resume negotiations with the mainland, based on a 1992 agreement that while there is one China, there are different interpretations of what that means. Second, it will try to reach a peace agreement, lasting from 30 to 50 years. Third, the KMT would expand the already massive economic ties between Taiwan and the mainland into a possible cross-strait common market. Fourth, the KMT would try to create a formula to allow Taiwan to participate in international affairs, including global organizations, short of being an independent state. Last, it would expand cross-strait cultural and education exchanges.

Ma downplays the threat from Beijing these days. "Their goal is no trouble,'' he told me. "They are not interested in unification right now.'' But, he said, the Chinese do worry about "the further drifting away of Taiwan.'' That drift, he fears, could inadvertently force a conflict that might drag in the United States.

That charge is aimed at the government in Taipei. And it is a concern shared by U.S. officials who are visibly unhappy these days with Chen. The warm reception for Ma was intended to send that message to Taipei -- and also to Beijing, ahead of the visit next month of Chinese leader Hu Jintao.

Reassuring as Ma's words may be, there are reasons to be cautious about his message and his prospects.

Taiwanese nationalism may rattle the status quo, but so does China's military buildup. As does the failure of Taiwan to adopt a significant U.S. defense package, offered five years ago, to counter that buildup. The KMT blames the current government for this impasse but the party, which now controls the legislature, has blocked passage of the budget.

Deepening economic ties with China are a market reality, as Taiwan's electronics industry shifts production to low-wage China. But ultimately that could make them another Hong Kong, a satellite of Beijing that must bend to its political will.

Taiwanese are deeply divided. The KMT, the party of mainlanders who fled to the island after the communist victory in 1949, ruled Taiwan for decades as the exiled government of China. But democracy, which came in the 1990s, brought to power native Taiwanese who want to preserve their separate identity.

Ma may prove to be a political leader who plays better in Washington than back home. But if Taiwanese embrace his vision of the status quo at the ballot box, all the better. Ultimately, his mandate must come from Taiwanese, not Americans.

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FUAT KEYMAN is professor of International Relations at Koç University/Istanbul. He did his Ph.D in Carleton University, Canada, and pursued his study as a post-doctoral fellow in Wellesley College and Harvard University. He is the author of several books and articles on globalization, democratic theory and Turkish Politics. Among them are Globalization, State,Identity/Difference: Towards a Critical Social Theory of International Relations (Humanities Press, New Jersey, 1997), Turkey and Radical Democracy (Alfa, Istanbul, 2001) and State Problem in Turkey: Globalization, Nationalism and Democratization (Everest, Istanbul, 2003).

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Fuat Keyman Professor of International Relations Speaker Koc University, Turkey
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David Holloway
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Jeffrey T. Richelson's history of American nuclear intelligence, Spying on the Bomb, is timely, writes CISAC's David Holloway, given the faulty intelligence about nuclear weapons that was used to justify the U.S. invasion of Iraq. In fact the book could have gone further toward analyzing the relationship between the intelligence community and policy makers, Holloway suggests in this New York Times book review.

Before attacking Iraq in March 2003, the United States told the world that Saddam Hussein had reconstituted his nuclear weapons program in defiance of the United Nations. That claim, used to justify the war, was based on assessments provided by the United States intelligence community. But as everyone now knows, those assessments were wrong. So Jeffrey T. Richelson's history of American nuclear intelligence, including our attempts to learn about Iraq's nuclear program, could hardly be more timely.

In "Spying on the Bomb," Richelson, the author of several books on American intelligence, has brought together a huge amount of information about Washington's efforts to track the nuclear weapons projects of other countries. He examines the nuclear projects of Nazi Germany, the Soviet Union, China, France, Israel, India, South Africa, Taiwan, Libya, Pakistan, Iran and North Korea, as well as Iraq. Through interviews and declassified documents as well as secondary works, he sets out briefly what we currently know about those projects and compares that with assessments of the time.

This may sound like heavy going, but Richelson writes with admirable clarity. And along the way he has fascinating stories to tell: about plans to assassinate the German physicist Werner Heisenberg during World War II; about discussions in the Kennedy and Johnson administrations on the possibility of attacking Chinese nuclear installations; about Indian measures to evade the gaze of American reconnaissance satellites; and about the bureaucratic infighting over the estimates on Iraq.

The United States has put an enormous effort into gathering information about the nuclear projects of other countries. After World War II it equipped aircraft with special filters to pick up radioactive debris from nuclear tests for isotopic analysis. It created a network of stations around the world to register the seismic effects of nuclear explosions. Most important, in 1960 it began to launch reconnaissance satellites that could take detailed photographs of nuclear sites in the Soviet Union and China. Richelson occasionally speculates about the role of communications intercepts and of spies, but these appear from his account to have been much less important than the other methods of collecting information.

Through these means the United States has gathered a vast quantity of data, sometimes to surprising effect. Intelligence played a crucial role in the cold war, for instance, by reducing uncertainty about Soviet nuclear forces. Alongside such successes, however, there have been failures. One notable example concerned the first Soviet test, which took place in August 1949, much sooner than the C.I.A. had predicted. Another was the failure to detect Indian preparations for tests in May 1998, even though at an earlier time the United States, with the help of satellite intelligence, had managed to learn about preparations the Indians were making and to head off their tests.

But the most serious failure of all was in Iraq in 2003, because in no other case did the intelligence assessments serve as justification for the use of military force. The information needed for avoiding political surprise is one thing. That needed for preventive war is quite another, if only because of the consequences of making a mistake.

Beyond making the uncontroversial recommendation that "aggressive and inventive intelligence collection and analysis" should continue, Richelson draws no general conclusions. That is a pity, because his rich material points to issues that cry out for further analysis. He suggests in one or two cases that failures sprang from the mind-set of the intelligence community, but he does not elaborate on this point. He has little to say about relations between policy makers and the intelligence community, even though the quality of intelligence and the use made of it depend heavily on that relationship.

His focus is no less narrow in his discussion of foreign nuclear projects. He concentrates on the programs themselves, paying very little attention to their political context. Does that reflect a technological bias in nuclear intelligence? Would, for example, the prewar assessment of Iraqi nuclear capabilities have been more accurate if it had paid more attention to the broader political and economic circumstances of Hussein's regime?

The task of intelligence has become more complex than it was during the cold war. A single dominant nuclear opponent has now been replaced by a number of nuclear states, along with states and stateless terrorists that are aiming to get their hands on nuclear weapons. Meanwhile, the technology needed for producing nuclear weapons has become easier to acquire.

Many critics believe the recent performance of the intelligence community shows it has not responded adequately to this new situation. Richelson does not have much to say on this question; nor does he discuss the likely impact of the current reforms, initiated in response to the Iraq war, on the quality of intelligence. His reticence may imply that he does not think reform is necessary. Still, it is disappointing that he does not draw on his historical survey to discuss whether new approaches are needed for dealing with nuclear threats, and, if so, what those new approaches might be.

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George Krompacky
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On January 11, David Michael of The Boston Consulting Group (BCG) discussed recent research into the globalization strategies of companies from China, India and other rapidly developing economies during SPRIE's kickoff seminar for 2006 and the winter quarter. For full details on this presentation, go to The Globalization Strategy of Companies from China, India and Other Rapidly Developing Economies event page and download the report from The Boston Consulting Group.
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PESD fellow Nadeja Victor presented Global Natural Gas Market and Russian Gas Supply Presentation on March 14 during the "market mechanisms of energy market regulation and ways of improving them" roundtable chaired Anantoliy Yanovskiy, Director, Department of Fuel and Energy Complex, Ministry of Industry and Energy, RF. In the meeting of the Group of Eight energy ministers the following days, the chair's statement was the following:

1. G8 Energy Ministers met in Moscow on 15-16 March 2006 in order to discuss the matters of mutual interest related to global energy security.

2. The reliable energy supply plays a key role in development of worlds economies bearing in mind that the well-being, way and quality of life of people directly depend on access to energy.

3. Ministers are aware that the 21st century is sure to witness a significant increase of the global consumption of energy, primarily by dynamically developing economies. Despite the increased presence of alternative sources in the energy mix, the fossil fuels will remain the basis of the world energy industry for at least the first half of the 21st century.

4. Ministers discussed the challenges to the global energy security, issues related to promotion of market efficiency of the fuel and energy sector. We note that meeting energy security challenges will require reliance on market-oriented approaches aimed at increasing energy supply and stemming growth in demand, while encouraging market-based pricing, competition, energy efficiency, and conservation.

5. Ministers point out the importance of further development and strengthening of dialogue among energy producer, transit and consumer countries, including information exchange on the current situation as well as medium- and long-term plans and programmes of development of their respective energy sectors.

6. Ministers confirm our support for appropriate international initiatives such as the Joint Oil Data Initiative aimed at greater accessibility and transparency of data on reserves, demand and supply, stocks and production capacities.

7. Ministers note that a stable future of the international energy sector requires significant investment in the production, transportation and processing of energy resources. We recognize that to attract investment it is essential for countries to have open and favourable investment regimes including stable and predictable regulations, clear tax laws, and efficient administrative procedures as well as fair and reciprocal access to markets along the energy value chain.

8. Ministers favour the implementation of the Action plan adopted last year by our leaders in Gleneagles which includes a wide range of measures to promote innovations, increase energy efficiency and enhance environmental protection.

9. Ministers proceed from the fact that diversification of the energy portfolio in terms of energy sources, suppliers and consumers as well as delivery methods and routes will reduce energy security risks not only for individual countries but for the entire international community. Joint efforts of the G8 and other countries aimed at wider use of renewable and alternative energies, development and implementation of innovative energy technologies and development of low-carbon energy would contribute substantially to the solution of this strategic task. For those countries that wish, wide-scale development of safe and secure nuclear energy is crucial for long-term environmentally sustainable diversification of energy supply.

10. Ministers agree that continued international cooperation to develop the low carbon technologies of the future will be crucial. Facilitating development and deployment of innovative energy technology solutions will have longer term environmental, economic and energy security benefits and be key to a global sustainable energy future.

11. A significant reduction of the gap in energy supply between developed and undersupplied less-developed countries is a major aspect of global energy security.

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Yun-han Chu is President of the Chiang Ching-Kuo Foundation, Professor of Political Science at National Taiwan University, and Senior Fellow at the Institute for Political Science of the Academia Sinica. He is one of Taiwan's most distinguished and widely quoted political scientists. He is also the author of Crafting Democracy in Taiwan, the lead coordinator of the East Asia Democracy Barometer, and author of numerous articles on Taiwan's democracy, politics, political economy and cross strait relations.

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Yun-han Chu Speaker President of the Chiang Ching-Kuo Foundation, Professor of Political Science at National Taiwan University
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David G. Victor
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Victor's opinion piece supports India's move toward nuclear power as a means of meeting an ever increasing, economically-driven demand for electricity and displacing coal - the most carbon intensive of all fossil fuels-as the primary source of energy. However, care is still needed to tame the risks of proliferation and efforts need to be made to improve India's electricity sector.

Stanford, California - If the deal to supply India with nuclear technologies goes through, future generations may remember it for quite different reasons than the debate over nuclear proliferation.

Nuclear power emits no carbon dioxide, the leading cause of global warming. And India, like most developing countries, has not been anxious to spend money to control its emissions of this and other so- called greenhouse gases.

India is embracing nuclear power for other reasons - because it can help the country solve its chronic failure to supply the electricity needed for a burgeoning economy. But in effect, the deal would marry their interest in power with ours in protecting the planet.

India is growing rapidly. In recent years its economy has swelled at more than 7 percent per year, and many analysts believe it is poised to grow even faster in the coming decade.

The economic growth is feeding a voracious appetite for electricity that India's bankrupt utilities are unable to satisfy. Blackouts are commonplace. Farmers, who account for about two-fifths of all the power consumed, can barely rely on getting power for half of every day. In industrial zones, the lifeblood of India's vibrant economy, unstable power supplies are such trouble that the biggest companies usually build their own power plants.

So most analysts expect that the demand for electricity will rise at about 10 percent a year. (For comparison, U.S. power demand notches up at just 2 percent annually.)

Over the past decade, about one third of India's new power supplies came from natural gas and hydro electricity. Both those sources have been good news for global warming - natural gas is the least carbon- intensive of all the fossil fuels, and most of India's hydroelectric dams probably emit almost no greenhouse gases.

However, the bloom is coming off those greenhouse-friendly roses. New supplies of natural gas cost about twice what Indians are used to paying, and environmental objections are likely to scupper the government's grand plans for new hydro dams.

That leaves coal - the most carbon-intensive of all fossil fuels. Already more than half of India's new power supplies come from coal, and that could grow rapidly.

Traditionally, the coal sector was plagued by inefficiencies. State coal mines were notoriously dangerous and inefficient. Coal-fired plants in western provinces, far from the coal fields and vulnerable to the dysfunctional rail network, often came within days of shutting operations due to lack of coal.

All that is changing. Private and highly efficient coal mines are grabbing growing shares of the coal market. Upgrades to the nation's high-tension power grid is making it feasible to generate electricity with new plants installed right at the coal mines.

These improvements make coal the fuel to beat.

So the deal struck with President George W. Bush matters. At the moment, India has just 3 gigawatts of nuclear plants connected to the grid. Government planners envision that nuclear supply will grow to 30 GW over the next generation, but that will remain a fantasy without access to advanced nuclear technologies and, especially, nuclear fuels - such as those offered under the deal with the Bush administration.

By 2020, even after discounting for the government's normal exuberance in its forecasts, a fresh start for nuclear power could increase nuclear generating capacity nearly ten-fold.

By displacing coal, that would avoid about 130 million tons of carbon dioxide per year (for comparison, the full range of emission cuts planned by the European Union under the Kyoto Protocol will total just 200 million tons per year).

The effort, if successful, would eclipse the scheme under the Kyoto Protocol, known as the Clean Development Mechanism, that was designed to reward developing countries that implement projects to reduce their emissions of greenhouse gases. The largest 100 of these CDM projects, in total, won't reduce emissions as much as a successful effort to help India embrace safe nuclear power.

The benefits in slowing global warming are not enough to make the deal a winner. Care is needed to tame the risks of proliferation, especially those connected from India's system of breeder reactors that make more weapons-capable fuel than they consume. And complementary efforts, led by Indians, are needed to fix the trouble in India's electricity sector that have so far discouraged private investors.

None of this will be easy. There are no silver bullets in cooling the greenhouse.

What is important is that the deal is not just a one-off venture, as the administration's backers, on the defensive, have suggested. It could frame a new approach to technology sharing and managing a more proliferation proof fuel cycle that, in turn, will multiply the benefits of a cooler climate.

Coal-rich China is among the many other countries that would welcome more nuclear power and whose emissions of carbon dioxide are growing fast - even faster than India's.

Quite accidentally, it seems, the Bush administration has stumbled on part of an effective strategy to slow global warming. Now it should marry that clever scheme overseas with an effective plan here at home.

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Studies of China's inequality almost universally report that the gap between urban and rural household incomes in China is large, has increased over time, and contributes substantially to overall inequality. Whether or not concerns about the urban-rural income gap are justified depends, among other things, on the true magnitude of the gap and also on the factors that underlie the gap. Using a new and rich data, this study investigates the size of China's urban-rural income gap, the contribution of that gap to overall inequality, and the factors underlying the gap in 1995 and 2002. The analysis improves on past estimates by adjusting for spatial price differences and including migrants. It also measures the extent to which the urban-rural income gap is due to differences in household and individual characteristics, rather than the advantages of location of residence. Professor Sicular will present the key findings of this research undertaken with colleagues from the Chinese Academy of Social Sciences, University of Goteburg, and Beijing Normal University.

Terry Sicular received her PhD from Yale University in 1983 and has taught at Harvard University, Stanford University. Her publications include Food Price Policy in Asia: A Comparative Study. Ithaca, NY: Cornell University Press, 1989, What Can We Learn from the Chinese Revolution? Homo Oeconomicus (2004), and Moving toward Markets? Labor Allocation in Rural China Journal of Development Economics (2003). She is currently working on The Political Economy of the Chinese Revolution and Rural Labour and Employment in China (with Yaohui Zhao)

This series is co-sponsored with the Center for East Asian Studies at Stanford University.

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Terry Sicular Associate Professor of Economics Speaker University of Western Ontario
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Professor Andrew Mack is the Director of the Human Security Centre at the Liu Institute for Global Issues, University of British Columbia. Prior to establishing the Human Security Centre, he was a Visiting Professor at the Program on Humanitarian Policy at Harvard University (2001) and spent two and a half years as the Director of Strategic Planning in the Executive Office of Secretary-General Kofi Annan at the United Nations (1998-2001).

Professor Mack has held the Chair in International Relations at the Institute of Advanced Study at the Australian National University (1991-1998), was the Director of the ANU's Peace Research Centre (1985-91) and was the ANU's Senior Research Fellow in the Strategic and Defence Studies Centre (1984-85).

He has held research and teaching positions at Flinders University (Adelaide, Australia) the London School of Economics, the Copenhagen Peace Research Institute, the Richardson Institute for Peace and Conflict Research, University of California at Berkeley, Irvine and San Diego, the University of Hawaii, Fudan University in Shanghai and the International University of Japan.

His pre-academic career included six years in the Royal Air Force (engineer and pilot); two and a half years in Antarctica as meteorologist and Deputy Base Commander; a year as a diamond prospector in Sierra Leone and two years with the BBC's World Service producing the current affairs program "The World Today".

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Andrew Mack Director, Human Security Centre Speaker the Liu Institute for Global Issues, University of British Columbia
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