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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Half the world is on the Internet. By the end of June 2015, China recorded a total of 667 million Internet users. Taobao and Tmall, Alibaba Group’s giant e-commerce platforms, posted a record-breaking RMB 91.2 billion on Singles' Day, 2015; and Alibaba Group with its annual sales volume of RMB 3 trillion, has surpassed Walmart to become the world’s largest retail platform. Dr. Ming Zeng, Chief Strategy Officer of Alibaba Group, will first give an insider’s account of how Alibaba was able to scale up its operations from Jack Ma’s humble operations into one of the world’s largest companies. He will further discuss how the Web technology is transforming China’s consumer and production economy.

 

Dr. Ming ZENG currently serves as Executive Vice President of Alibaba Group Holding Limited and Chief Strategy Officer of Alibaba Group. Dr. Zeng is also the founding Dean of Hupan University of Entrepreneurship, an educational institution founded in 2015 by Jack Ma and other business leaders in China. He is a frequent contributor to leading management journals and is the author of Dragons at Your Door: How Chinese Cost Innovation Is Disrupting Global Competition (2007). Dr. Zeng previously served as a faculty member at INSEAD from 1998 to 2002 then helped to found the Cheung Kong Graduate School of Business in Beijing, the first private business school in China. Dr. Zeng obtained his Ph.D. in International Business and Strategy from University of Illinois at Urbana-Champaign in 1998, and his Bachelor's degree in International Economics from Fudan University, China, in 1991.

 

 

Duncan Clark is the Chairman of BDA China, a consultancy he founded in Beijing in 1994 after four years as an investment banker with Morgan Stanley in London and Hong Kong. BDA China is an advisory firm serving investors in China’s technology and consumer sectors, employing over 100 mainland Chinese professionals in Beijing. An early advisor to leading Chinese Internet entrepreneurs, Mr. Clark is also the author of Alibaba: The House that Jack Ma Built (2016), an insider’s look at China’s e-commerce and technology giant and its founder Jack Ma.

 

 

 

This event is off the record.

 

Ming Zeng Chief Strategy Officer, Alibaba Group
Duncan Clark (moderator) Moderator BDA China, Author of Alibaba: The House that Jack Ma Built
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In this session of the Corporate Affiliates Research Presentations, the following will be presented:

Wataru Fukuda, Shizuoka Prefectural Government, "Software Solutions of Tourism Promotion"

In his research, Fukuda investigates the possibilities of expanding the inbound tourism market in Japan, especially in the Shizuoka prefecture, a local area of Japan.  He provides an overview of the online travel industry and how they are expanding their market with new technologies and innovations.  After reviewing how software services for international travelers is currently being used in Japan, he focuses on specific applications with the highest potential to make Shizuoka more accessible and attractive for international travelers.  Additionally, he reviews regulations and obstacles that could prevent these new technologies and innovations from being implemented.  As a result, Fukuda suggests that the suppliers of local tourism provide their services with a holistic utilization of the applications.

 

Catherine Huang, Beijing Shanghe Shiji Investment Company, "How the U.S. Capital Market Helps Enterprises Grow From the Infant State to Mature Businesses"

China is slowing down its pace for development, facing the so-called “middle income trap”.  While the attention to the macroeconomic picture is necessary, it is not sufficient.  Extraordinary monetary policies buy time, but they do not solve the fundamental problem.  The focus needs to be on the structural reforms – the microeconomic entities, to which the capital market acts like a lifeline, will drive future growth.  The productivity, competition and innovation in all sectors – all of which are largely fueled by an efficient, healthy and accessible capital market – ensure a productive supply-side growth.  In her research, Huang explores the culture, participants and regulatory system of the U.S. capital market and tries to figure out what China’s capital market development can learn from this system.

 

Yuichiro Muramatsu, Mitsubishi Electric, "Manufacturing Industry with Big Data Analysis on IoT"

The Internet of Things (IoT) is major technology that connects devices and cloud service.  Cloud service computes device data and returns meaningful results for abnormal detection, performance improvement and prediction.  One key component of IoT is big data analysis.  Japan’s Ministry of Economy, Trade and Industry’s 2015 Whitepaper states that innovation in the manufacturing industry by using IoT and big data analysis is about to launch, but few cases exist in Japan.  Innovative companies like Netflix, Uber and AirBnB are data driven companies and the manufacturing industry is also expected to have smart factories with big data analysis.  In his research, Muramatsu investigates the use of big data analysis on IoT and identifies useful cases of business efficiency and the methodology that supports big data analysis.

 

Fred Yang, MissionCare, "Private Hospitals in Taiwan and the Implications"

In most East Asian countries, including Japan, South Korea and Taiwan, private hospitals are the majority in the market.  In China, even though private hospitals have been in fast growth for the past 10 years, their size remains small and the market is still dominated by large public hospitals.  In the most recent move of healthcare reform in China, the government emphasized and encouraged the entry of private-non-profit hospitals into the market. 

In the National Health Insurance Administration’s (NHIA) Open Information System, a set of quality indicators is computed based on hospitals’ reimbursement data.  A committee comprised of representatives from government, academia and hospitals select these indicators and the data is published to the general public on a quarterly basis. 

By using statistical tools such as descriptive analysis, univariate analysis, and multivariable analysis, Yang focused on the comparison of hospital performance by ownership in Taiwan.  The results revealed limited differences among three types of hospitals by ownership, which is consistent with findings of most studies.  Based on his findings, Yang provides policy implications to the market and policy makers that include 1) hospital ownership might not be a key determinant of a hospital’s quality and 2) the real challenge to the government may be creating an environment where hospitals are committee to improve the quality of care.

 

Shizuoka Prefectural Government
Beijing Shanghe Shiji Investment Company
Mitsubishi Electric
MissionCare
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A recent review published in International Migration Review (IMR) lauded “Global Talent: Skilled Labor as Social Capital in Korea,” by Stanford professor Gi-Wook Shin and Joon Nak Choi. IMR reviewer Keumjae Park said the book makes an important contribution to the literature on foreign skilled workers and the problems that countries like South Korea face with demographic and economic change.

Park said the book “offers provocative policy questions” about how South Korea can encourage the development of social and cultural ties in its highly skilled labor markets, which in turn, support local and transnational markets through spread of information, innovation and trust.

Park also highlights the book’s approachability, saying it “offers theoretical lessons for general research” while it “invites attention of policy makers and business strategists.”

“Global Talent” is a part of Korea’s Global Talent, an ongoing research project at the Shorenstein Asia-Pacific Research Center. The project analyzes the potential benefits of transnational bridges between South Korea and the United States, and aims to provide insights that could be applied to other Asian countries.

Read the full review below and on the IMR website.

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Abstract:  Institutions like LLNL are part of an enterprise established in the mid-twentieth century to enable teams of scientists and engineers to deliver technological capabilities to address challenges to U.S. national security.  The steadily increasing pace of technological change, the reduced proportion of U.S. government funding invested in research and development relative to private sector investments, and the accelerating resources and programs for research globally have dramatically changed the context for this enterprise. Operational practices established to meet the national security needs of the last century must be updated to ensure that the national security science and technology enterprise can continue to deliver high quality capabilities to meet future threats and innovation to enhance U.S. national and economic security. Possible approaches for updating research careers and the structure of institutions include revamping policies for domestic and international partnerships, more effectively managing dual use technologies, and updating enterprise elements to draw on cutting-edge developments in academia and industry.

About the Speaker:  Patricia Falcone is the Deputy Director for Science and Technology, and Chief Technology Officer, of the Lawrence Livermore National Laboratory (LLNL). From 2009 to 2015, she served in the White House Office of Science and Technology Policy, including as the presidentially appointed and Senate-confirmed Associate Director for National Security and International Affairs.  Earlier she worked at the Sandia National Laboratories in Livermore, CA.  She earned a Ph.D. working in the High Temperature Gasdynamics Laboratory in Stanford’s mechanical engineering department.

Patricia Falcone Deputy Director for Science and Technology, and Chief Technology Officer, Lawrence Livermore National Laboratory
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Caixin Media reports on REAP's research about the shockingly high school drop-out rate of China's rural students. To read the original article, click here.

Chen is among the millions of students in rural areas who quit school each year without completing high school. Although there are no official statistics, studies by various research institutions say one in three students in villages – some 3 million teenagers on average – quit school every year before earning a high school diploma.

Boys and girls in rural areas start leaving school at a much younger age than their peers in more developed regions. From 2007 to 2013, almost half the students in poor areas in the central and western parts of the country had left school by grade nine, a study published in December by the Rural Education Action Project (REAP), which involves the Chinese Academy of Sciences, Stanford University and several Chinese universities, found. The researchers, who studied 50,000 students, found something even more alarming: by grade 12, nearly two-thirds dropped out.

The 2010 census showed that 78 percent of the country's school-aged students lived in the countryside, and the research report said that "if dropout rates continue as they are today, increasing unemployment and widening inequality could hinder economic growth and stability on a national scale."

Nearly half of the dropouts REAP surveyed said they quit to find work so they could "broaden their horizons and enjoy new experiences." Another 30 per cent said they chose to leave because "everyone else is doing it."

Chen said that like many of his classmates he was bored in the classroom and did not see how his studies were helping his future.

"Some dropouts are pushed hard by teachers but they can't pass exams," said Hu Yongqiang, who left a school in rural Shaanxi when he was in grade nine. "So they run away."

Middle School Woes

Experts say rural junior middle schools – which cover the seventh to ninth years of school – are one of the biggest problems in the country's education system. Stark inequalities in the distribution of resources have led to this failure, said Wei Jiayu from the New Citizen Program, a non-profit group focusing on rural education.

The government spent an average of 900 yuan more each year on a student in an urban middle school than on a rural student, government data from 2013 show. A few rural junior middle schools with better teachers and facilities, like science labs and libraries, have higher university admission rates, but many others "are just a waste of time," Wei said.

A lack of qualified teachers in rural schools is one of the main turnoffs for students, an education official in the Qinba Mountains area of Shaanxi said. The REAP study found that teachers' qualifications were linked to their students' dropout rate. In schools where less than 30 percent of the teachers had a university degree, students dropped out at twice the rate compared to schools with more qualified staff.

Most dropouts are students labeled by teachers as poor performers, said Liu Chengbin, a professor of sociology at Huazhong University of Science and Technology in the central city of Wuhan. Many teachers tend to pay more attention to students with strong academic records the others, said Liu, because the amount of funding a school receives from the government is linked to exam scores.

"(Students' scores) are related to teachers' performance assessments and salaries as well," said a teacher from the Qinba Mountains area.

Some teachers even tried to persuade students who did poorly on tests to quit so average test scores would stay high, said Shi Yaojiang, a professor of education at Shaanxi Normal University in Xi'an.

And the problems continue into high school. Beijing spent more than 28,000 yuan per high school student in 2013, compared to nearly 6,900 yuan per student in the southwestern province of Guizhou and nearly 5,500 yuan in the poor central province of Henan, research by the education information portal eol.cn in 2015 found.

Left Out

Tens of millions of rural workers have moved to urban areas in recent decades, but the country's system of household registration, or hukou, makes it difficult for them to send their children to good schools in cities.

Migrants often have no choice but to leave their children in rural areas to be educated. A lack of parental supervision compounds many students' difficulties in rural schools, experts said.

Some 60 million children are left in China's villages to be raised by grandparents or relatives, official data show, and educators say this is contributing to problems keeping children in school. "(The high number of) dropouts is the result of long-term problems," said a high school teacher in the Qinba Mountains.

The REAP study also found that nearly three-quarters of rural children showed some signs of psychological trouble. The figure was just under 6 percent for students in cities.

Over 13 percent of children left in villages by parents quit school by their eighth year of school, researchers found, but only 8.6 percent of those who were raised by their parents in rural villages chose to drop out.

Researchers are concerned about the career prospects of those who have not completed their schooling. Scott Rozelle, a Stanford University professor who co-directed the study, said that as the country looks to shift from low-end manufacturing to services and value-added industries, the growing number of less-educated workers will be a burden on the economy.

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"What do I do about the chickens?"

When assistant professor of medicine Eran Bendavid began a study on livestock in African households to determine impact on childhood health, he'd already anticipated common field problems like poorly captured or intentionally misreported data, difficulty getting to work sites, or problems with training local volunteers.

But he'd never gotten that particular question from a fieldworker before. It didn't occur to him that participating families, in reporting their livestock holdings, would completely omit the chickens running around at their feet, thereby skewing the data.

"They didn't consider chickens to be livestock," recalled Bendavid. Along with Scott Rozelle, the Helen F. Farnsworth Senior Fellow at FSI, and associate professor of political science and FSI senior fellow Beatriz Magaloni, Bendavid spoke to a full house last week on lessons learned from fieldwork gone awry. The return engagement of FSI's popular seminar, "Everything that can go wrong in a field experiment” was introduced by Jesper Sørensen, executive director of Stanford Seed, and moderated by Katherine Casey, assistant professor of political economy at the GSB. The seminar is a product of FSI and Seed’s joint Global Development and Poverty (GDP) Initiative, which to date has awarded nearly $7 million in faculty research funding to promote research on poverty alleviation and economic development worldwide.

Rozelle, co-director of the Rural Education Action Program, spoke of the obstacles to accurate data gathering, especially in rural areas where record-keeping is inaccurate and participants' trust is low. Arriving in a Chinese village to carry out child nutrition studies, said Rozelle, "we found Grandma running out the back door with the baby." The researchers had worked with the local family planning council to find the names of children to study, but the families thought the authorities were coming to penalize them for violation of the one-child policy.

Cultural differences make for entertaining and illuminating (if frustrating) lessons, but Beatriz Magaloni, director of FSI's Program on Poverty and Governance at the Center on Democracy, Development and the Rule of Law had a different story to tell. Over the course of three years, her GDP-funded work to investigate and reduce police violence in Brazil - a phenomenon resulting in more than 22,000 deaths since 2005 - has encountered obstacle after obstacle. Her work to pilot body-worn cameras on police in Rio has faced a change in police leadership, setting back cooperation; a yearlong struggle to decouple a study of TASER International’s body worn cameras from its electrical weapons in the same population; a work site initially lacking electricity to charge the cameras or Internet to view the feeds; and noncompliance among the officers. "It's discouraging at times," admitted Magaloni, who has finally gotten the cameras onto the officers' uniforms and must now experiment with ways to incentivize their use. "We are learning a lot about how institutional behavior becomes so entrenched and why it's so hard to change."

Experimentation is a powerful tool to understand cause and effect, said Casey, but a tool only works if it's implemented properly. Learning from failure makes for an interesting panel discussion. The speakers' hope is that it also makes for better research in the future.

The Global Development and Poverty Initiative is a University-wide initiative of the Stanford Institute for Innovation in Developing Economies (Seed) in partnership with the Freeman Spogli Institute (FSI). GDP was established in 2013 to stimulate transformative research ideas and new approaches to economic development and poverty alleviation worldwide. GDP supports groundbreaking research at the intersection of traditional academic disciplines and practical application. GDP uses a venture-funding model to pursue compelling interdisciplinary research on the causes and consequences of global poverty. Initial funding allows GDP awardees to conduct high-quality research in developing countries where there is a lack of data and infrastructure.

 

 

 

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The Walter H. Shorenstein Asia-Pacific Research Center (APARC), in pursuit of training the next generation of scholars on contemporary Asia, has selected three postdoctoral fellows for the 2016-17 academic year. The cohort includes two Shorenstein Postdoctoral Fellows and one Developing Asia Health Policy Fellow; they carry a broad range of interests from hospital reform to the economic consequences of elite politics in Asia.

The fellows will begin their year of academic study and research at Stanford this fall.

Shorenstein APARC has for more than a decade sponsored numerous junior scholars who come to the university to work closely with Stanford faculty, develop their dissertations for publication, participate in workshops and seminars, and present their research to the broader community. In 2007, the Asia Health Policy Program began its fellowship program to specifically support scholars undertaking comparative research on Asia health and healthcare policy.

The 2016-17 fellows’ bios and their research plans are listed below:


Shorenstein Postdoctoral Fellows

 

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Aditya "Adi" Dasgupta is completing his doctorate in the Department of Government at Harvard University. At Stanford, he will work on converting his dissertation on the historical decline of single-party dominance and transformation of distributive politics in India into a book manuscript. More broadly, his research interests include the comparative economic history of democratization and distributive politics in emerging welfare states, which he studies utilizing formal models and natural experiments. He received a Bachelor of Arts from Cambridge University and a Master of Science from Oxford University and has worked at the Public Defender Service in Washington D.C., his hometown.

 

 

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Dong Zhang is a political scientist whose research interests include political economy of development, with focus on the economic consequences of elite politics, and on the historical origins of long-run economic development. His dissertation examines the political logic of sustaining state capitalism model in weakly institutionalized countries with a primary focus on China. At Stanford, Zhang will develop his dissertation into a book manuscript and pursue other research projects on comparative political economy and authoritarian politics. He will receive his doctorate in political science from Northwestern University in 2016. Zhang holds bachelor’s degrees in public policy and economics, and a master’s degree in public policy from Peking University, Beijing.


Developing Asia Health Policy Postdoctoral Fellow

 

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Ngan Do is strongly interested in health system related issues, especially health financing, human resources for health, and health care service delivery. Do implemented comparison studies at regional level as well as participated in fieldwork in Cambodia, Lao, the Philippines, Korea and Vietnam. At Stanford, she will work on the public hospital reforms in Asia, focusing on dual practice of public hospital physicians and provider payment reforms. Do achieved her doctorate in health policy and management at the College of Medicine, Seoul National University. She earned her master’s degree in public policy at the KDI School of Public Policy and Management in Seoul, and her bachelor’s degree in international relations at the Diplomacy Academy of Vietnam (previously the Institute for International Relations).


 

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