Technology and Labor Regulations
Alberto Alesina is the Nathaniel Ropes Professor of Political Economics and the Taussig Research Professor of Economics at Harvard University. He is a leader in the field of economics and has published extensively in all major academic journals in economics. His work has covered a variety of topics, including political business cycles, integration, stabilization policies in high inflation countries, and differences in the welfare state in the U.S. and Europe.
Professor Alesina is associate editor of the Journal of Economic Growth. His most recent books are The Future of Europe: Reform and Decline, published by MIT Press in 2006, and Fighting Poverty in the U.S. and Europe: A World of Difference, published by Oxford University Press in 2004.
Abstract of Alberto Alesina's "Technology and Labor Regulations":
Many low skilled jobs have been substituted away for machines in Europe, or eliminated, much more so than in the U.S., while technological progress at the "top," i.e. at the high-tech sector, is faster in the U.S. than in Europe. This paper suggests that the main difference between Europe and the U.S. in this respect is their different labor market policies. European countries reduce wage flexibility and inequality through a host of labor market regulations, like binding minimum wage laws, permanent unemployment subsidies, firing costs, etc. Such policies create incentives to develop and adopt labor saving capital intensive technologies at the low end of the skill distribution. At the same time technical progress in the U.S. is more skill biased than in Europe, since American skilled wages are higher.
Sponsored by the Forum on Contemporary Europe and the Political Economics group at the Graduate School of Business.
Encina Ground Floor Conference Room
David D. Yang
N/A
David is our inaugural, and hopefully annual, fellow in CDDRL's new Democracy in Taiwan program. He is finishing a cross-country comparative study entitled The Social Basis of the Third Wave: Class, Development, and the Making of the Democratic State in East Asia. He looks in particular at late authoritarian Taiwan and contemporary Singapore. David is interested in the social basis of pro-democratic opposition movements and the political implications of various developmental strategies - corporatist versus pluralist, for example. David has been advised on his thesis by Lynne White, and Atul Kohli at Princeton, as well as Andy Nathan and Sheri Berman at Columbia and Barnard respectively. Before entering the doctoral program at Princeton, David completed an MBA in Economics and International Business at NYU, and a BSc in Computer Science at Brown.
Democracy and the Muslim World
Anwar Ibrahim was deputy prime minister of Malaysia in the 1990s. He also served as Malaysia's minister of finance. A sharp disagreement with then-Prime Minister Mahathir Mohamad led to Anwar's dismissal, prosecution--many would say outright persecution--and imprisonment.
Upon regaining his freedom, Anwar took up his current role as an opposition voice. He is currently a distinguished visiting professor at Georgetown University's School of Foreign Service. Since his release he has also held lectureships at St. Anthony's College (Oxford) and the School of Advanced International Studies (Johns Hopkins). He has advised the World Bank on questions of governance and accountability. Recently he was appointed honorary president of AccountAbility, a London-based organization that advocates socially responsible business practices.
This event is co-sponsored by the Southeast Asia Forum at the Walter H. Shorenstein Asia-Pacific Research Center and the Abbasi Program in Islamic Studies.
Bechtel Conference Center
In North Korea before the War
For many Koreans, their country's "northern regions" are locked in memory and even mystery. Families that once lived in North Korea still think of their lost hometowns with longing and nostalgia. Wherever they have ended up--in South Korea, America, Europe or elsewhere--and in succeeding generations, there remains an unceasing sense of unrequited loss.
It may seem strange, but Westerners who once lived in North Korea--as missionaries, traders, and, oddly enough, refugees--also share something of these sentiments. They think of missionary childhoods, lost stakes in business, Korean friends, and the special physical qualities of the landscape as part of their own emotional experience.
Donald Clark addressed this foreign experience in his book entitled Living Dangerously in Korea: the Western Experience, 1900-1950 (EastBridge, 2003). This lecture is based on materials in the chapters that deal with foreign life in the north, particularly P'yongyang, in the gold mines in the Unsan district, and in the Russian refugee colony on the northeast coast. It is illustrated from family albums of people who lived there in the 1930s.
Philippines Conference Room
China's Quest for Independent Innovation
No longer satisfied with China's role as the "world's factory", Chinese government leaders have launched a campaign for 2010 focused on "independent innovation". The goal is to reduce dependence on foreign technology by creating higher value-added home-grown products, services, and technologies.
Leadership in China's High Tech Companies
From an unprecedented number of start-ups to a rising class of billion-dollar giants going global, high technology companies in China have a dramatically increasing need for effective leadership. Since 1999, founders have led 24 Chinese firms to IPOs on NASDAQ, ranging from portals such as Sina and AsiaInfo in 2000 to mobile hardware makers and service providers like Hurray!, Vimicro, and Techfaith in 2005.
Trade on Human Terms: Transforming Trade for Human Development in Asia and the Pacific
Against the backdrop of export-led growth of some economies -- most notably China and India -- human development issues in Asia tend to be overlooked. The 2006 report Trade on Human Terms, produced by the United Nations Development Programme, finds that trade has contributed to further increasing the inequality both between and within countries. In addition, it warns that many of the region's open economies, particularly the East Asian success stories, are creating far fewer jobs, especially for youth and women, and experiencing "jobless growth." Many of the developing countries in the Asia-Pacific are now net importers of agricultural products; food security has thus become an emerging issue.
While Asia and the Pacific have embraced globalization, the regions poor are being left behind and will be so without determined action by governments. The report recommends that those countries adopt bold new policies that harness trade and economic growth, suggesting an "eight-point agenda" that includes investing for competitiveness; adopting strategic trade policies; restoring a focus on agriculture; combating jobless growth; and others.
Dr. Hafiz A. Pasha will discuss the findings and recommendations of this ground-breaking and thoughtful report which can be viewed at:
Asia - Pacific Human Development Report 2006
Dr. Hafiz A. Pasha is UN assistant secretary-general and UNDP assistant administrator and director of the Regional Bureau for Asia and the Pacific. He has served as the commerce and trade minister, minister for finance and economic affairs, deputy chairman of the Planning Commission, and education minister in three government administrations in Pakistan.
Prior to his government work, Dr. Pasha was the vice chancellor/president of the University of Karachi and dean and director of the Institute of Business Administration in Karachi, Pakistan.
Dr. Pasha has published extensively in the fields of trade, public finance, social development, and poverty reduction. He has an M.A. from Cambridge University and a Ph.D. from Stanford University.
Pasha was recently awarded the Congressional Medal of Achievement by the Philippines Congress in recognition of his work on poverty reduction, achievement of the Millennium Development Goals (MDGs) by the Asia-Pacific countries and his role in leading UNDP's response to the 2004 tsunami tragedy.
Philippines Conference Room
Bou-Wen Lin
Shorenstein APARC
Stanford University
Encina Hall E301 MC 6055
Stanford, CA 94305-6055
Bou-Wen Lin is Professor of Institute of Technology Management at National Tsing Hua University, Taiwan. He gained his doctorate in Management of Technology in 1998 from Rensselaer Polytechnic Institute, Troy, New York. He is a teacher and writer in the fields of international technology transfer, new product development, real options, and strategic management of technology.
Lin is author of articles in several journals including IEEE Transactions on Engineering Management, Journal of Business Research, R&D Management, International Journal of Human Resources Management, and Technological Forecasting and Social Change. His current research interests include technology valuation, interfirm collaboration, knowledge management in manufacturing firms, and new venture management.
NSA misses big picture in phone monitoring, says CISAC fellow
The National Security Agency is a riddle wrapped in a mystery inside a code. Secrets lie within. Located in Fort Meade, Md., it dwarfs the CIA. Its budget is black, unknown. And, most disturbing of all, it is the world's largest employer of mathematicians.
One of its secrets, recently revealed, is that it's monitoring millions of phone calls to learn just who was calling whom. (Technically, only telephone numbers are being recorded, but you don't have to be Q from James Bond to get a name from a number.) This information was being used to determine who might be a terrorist.
Legal or not, the spying program isn't worth violating our civil liberties for. The information one can glean will hardly help us win the war on terror.
With the NSA data, you can draw a picture with nodes or dots representing individuals, and lines between nodes if one person has called another. Mathematicians who work with pictures like this are called graph theorists. The field of social network analysis deals with trying to determine information about a group from such a graph, such as who the key players are or who the cell leaders might be.
But even when you know everyone in the graph is a terrorist, graphs don't contain information about the order or hierarchy of the cell. Researchers look instead for graph features like centrality: They try to identify nodes that are connected to a lot of other nodes, like spokes around the hub of a bicycle wheel. Monterey Naval Postgraduate School researcher Ted Lewis, in his textbook "Critical Infrastructure Protection," defines a critical node to be such a central hub.
There are two problems. First, the central player might not be as important as the hub metaphor suggests. Jafar Adibi of the University of Southern California looked at e-mail traffic between Enron employees before Enron collapsed, and drew the graph. He found that if you naively analyzed the graph, you could mistakenly conclude that one of the central players was CEO Ken Lay's ... secretary. But that wasn't the person who ran the company into the ground.
Second, as the journal Studies in Conflict and Terrorism reported in 2003, you can kill all the central players in a terrorist cell and still leave the cell with a complete chain of command -- still capable of carrying out a devastating attack.
Expert Kathleen Carley of Carnegie Mellon was able to correctly predict -- twice -- who would take over Hamas when its leaders were assassinated, and her analysis used detailed information about the individuals in the organization, not just what anonymous nodes were linked with what. The moral is that the graph theory approach is inadequate. For useful results, it's important to utilize the lattice theory approach, which takes into account order and hierarchy.
The other questionable aspect of the NSA spying program is that it seeks to work out who might be a terrorist based on their calling patterns. While I agree that anyone calling 1 (800) AL-QAEDA is probably a terrorist, guilt by association is not just bad law, it's bad mathematics, for three reasons.
The simplest reason is that we're all connected. Not in the Haight-Ashbury/Timothy Leary/late-period-Beatles kind of way, but in the sense of the Kevin Bacon game. Sociologist Stanley Milgram took individuals unknown to each other, separated by a continent, and asked one person to send a package to the other -- but only by sending the package to an individual he or she knew, who could then only send the package to someone he knew, and so on. While Milgram's interpretation of the results has since been questioned, the conclusion that emerged is that it took only six mailings, on average, for each package to reach its intended destination.
For example, President Bush is only three steps away from Osama bin Laden. And terrorist hermits like the Unabomber might be connected only to very few people. So much for guilt by association.
The second reason the NSA methodology is flawed is the concept "strength of weak ties," made famous by Stanford sociologist Mark Granovetter. Robert Spulak of the Joint Special Operations University puts it this way: You might not see your college roommate for 10 years, but if he were to call you up and ask to stay in your apartment, you'd let him. This is the principle under which sleeper cells operate: There is no communication for years. The links between nodes that the NSA is looking for simply might not exist for the real threats.
Formal concept analysis, a branch of lattice theory, helps rectify this situation. Individuals who share many of the same characteristics are grouped together as one node, and links between nodes in this picture, called a concept lattice, indicate that all the members of a certain subgroup, with certain attributes, must also have other attributes. For instance, you might group together people based on what cafés, bookstores and mosques they attend, and then find out that all the people who go to a certain cafe also attend the same mosque (but maybe not vice versa). While this tool has in fact been used by researchers at Los Alamos National Laboratory to sift through hundreds of terrorism-related reports, it's still dangerous to rely on the math.
The NSA data mining is flawed because, as Kennedy and Lincoln buffs know, two people can be a lot alike without being the same person. Even if there is only a 1 in 150 million chance that someone might share the profile of a terrorist suspect, it still means that, in a country the size of the United States, two people might share that profile. One is just minding his own business. The other is Cat Stevens.
This isn't to say mathematicians are useless. In September 2004 -- 10 months before the July 7 bombing of the London Underground -- mathematician Gordon Woo warned that London was a hotbed of jihadist radicalism. But Woo, who works for the Bay Area company Risk Management Solutions, didn't anticipate the bombings using math. He used his knowledge and experience of London, especially the Wood Green area. That's what law enforcement officials should be doing.
As for tracking terrorist financing, it may already be too late. The terrorism of the future, according to mathematician Stefan Schmidt of the Technical University in Dresden, Germany, may be the terrorism of the futures -- when bombs explode, the stock market drops. Schmidt wants to quantify the impact on the market of a terrorist incident. The only people who know when a bomb will explode are the terrorists. By playing the market, they may already have obtained as much money as they need -- in perfectly legitimate ways -- thus stifling Treasury Department efforts to cut off the source of their funding.
Math is just a tool. Used wisely, math can indeed help win the Battle of Britain (by breaking the German codes). But used unwisely -- as seems to be the case in the NSA telephone caper -- your approval rating might just hit an all-time low.