Energy: A Burning Issue for Foreign Policy
His Excellency Sir David Manning, British Ambassador to the United States, will deliver the 2006 Frank E. and Arthur W. Payne Distinguished Lecture.
The Payne Professorship is named for Frank E. Payne and Arthur W. Payne, brothers who gained an appreciation for global problems through their international business operations. Their descendants endowed the annual lecture series at FSI in order to raise public understanding of the complex policy issues facing the global community today and to increase support for informed international cooperation.
The Payne Distinguished Professor is chosen for his or her international reputation as a leader, with an emphasis on visionary thinking; a broad, practical grasp of a given field; and the capacity to clearly articulate an important perspective on the global community and its challenges.
Bechtel Conference Center
Operations research, mathematics yield homeland security decision tools
George Habash, a militant and former secretary-general of the Popular Front for the Liberation of Palestine, once characterized terrorism as a "thinking man's game." Using mathematics, researchers at Stanford University's Center for International Security and Cooperation (CISAC) have made fighting terrorism a thinking man's game as well.
CISAC affiliate Lawrence M. Wein of the Graduate School of Business and CISAC Science Fellow Jonathan Farley are both applying mathematical models to homeland security problems, such as preventing a nuclear detonation in a major U.S. city and determining whether terrorist cells have likely been disrupted.
Wein, who teaches operations classes about different business processes used to deliver goods and services, has focused his research on bioterrorism and border issues. He has performed, he says, the first mathematical analyses of hypothetical botulism poisoning, anthrax outbreaks and smallpox infections.
"One overriding theme of my work is that all these homeland security problems are operations problems," said Wein, the Paul E. Holden Professor of Management Science. "Just as McDonald's needs to get hamburgers out in a rapid and defect-free manner, so too does the government have to get vaccines and antibiotics out and test the borders for nuclear weapons or terrorists in a rapid and defect-free manner."
In collaboration with Stephen Flynn of the Council on Foreign Relations, a nonpartisan research center, Wein recently has conducted research to improve security at U.S. borders and ports. Port security has received significant attention recently owing to the furor over Dubai Ports World's bid to manage six terminals at major U.S. harbors. The aim of Wein and Flynn's work is to prevent terrorists from bringing into the country a nuclear weaponbe it an atomic bomb or a so-called "dirty bomb," or conventional explosive packed with radioactive waste.
"Of all the problems I've studied, this is the most important because the worst-case terrorist scenario is a nuclear weapon going off in a major U.S. city and also it is the one the government has dropped the ball on the most," Wein said. "They have done a very poor job."
Instead of using the existing approach, where U.S. Customs actively inspects a minority of containers based on information from a specialized tracking system designed to identify suspicious containers, Wein and Flynn have recommended the government use a multi-layer, passive screening system for every container entering the country. Under their system, Customs would photograph a shipping container's exterior, screen for radioactive material and collect gamma-ray images of the container's contents. If terrorists shielded a bomb with a heavy metal such as lead to hide it from radiation detectors, gamma-ray imaging would allow inspectors to see the shielding and flag the container for inspection. Wein and Flynn believe this whole process would cost about $7 per container.
"Right now about maybe 6 percent of the containers are deemed suspicious and they will go through some testing and the other 94 percent of the containers just waltz right into the country without an inspector laying an eye on them," Wein said. "What we're proposing to do is 100 percent passive testing."
Wein's earlier work addressed a different threat: bioterrorism. In 2005, Wein revealed the nation's milk supply was vulnerable--a terrorist could potentially poison 100,000 gallons of milk by sneaking a few grams of botulinum into a milk tanker. Although the government and dairy industry have collaborated to intensify the heat pasteurization formula for milk, Wein is still pushing for additional botulinum testing, which he says would cost less than 1 percent of the cost of milk.
Wein also has used math to study smallpox outbreaks, the U.S. fingerprint identification system and U.S.-Mexico border security issues. Wein's congressional testimony on the fingerprint identification system in 2004 led to a switch from a two-finger system to a 10-finger system. His 2003 research on anthrax attacks resulted in a Washington, D.C., pilot program to use the U.S. Postal Service to distribute antibiotics throughout the capital after an outbreak. Seattle is now testing a similar program.
"In Washington, D.C., now, if there is a large-scale anthrax attack, postal workers will be the first to get their Cipro and, on a voluntary basis, they will go door-to-door distributing antibiotics," Wein said.
He said the common thread throughout his research is queuing theory, or the mathematical study of waiting lines, but he also draws upon mathematical epidemiology for his smallpox studies; air dispersion models for the anthrax model; supply chain management for the milk study; probability theory for the fingerprint identification system; and models for nuclear transport and detection for his work with containers.
From tainted lactose to lattice structures
While Wein is working on improving the government's counterterrorism systems, Jonathan Farley is working to figure out when terrorist organizations have been effectively disrupted. His mathematical model is designed to help law enforcement decide how to act once they have captured or killed a terrorist or a number of terrorists in a cell.
A professor at the University of the West Indies who will chair the Department of Mathematics and Computer Science there next year, Farley is on a one-year science fellowship at CISAC. In 2003, he co-founded Phoenix Mathematical Systems Modeling Inc., a company that develops mathematical solutions to homeland security problems.
He is using lattice theory--a branch of mathematics that deals with ordered sets--to determine the probability a terrorist cell has been disrupted once some of its members have been captured or killed.
"Law enforcement has to make decisions about what resources they should allocate to target different cells," Farley said. "The model should provide them with a more rational basis for allocating their scarce resources. ... It will inform you when you're making decisions about how much time and effort and how much money you're going to spend going after a particular cell."
While at Stanford, Farley hopes to unearth the perfect structure, mathematically speaking, for a terrorist cell--or in other words, a cell structure that is most resistant to the loss of members.
"If it's possible to determine the structure of an ideal terrorist cell, you can focus on a much smaller number of possibilities, because it makes more sense to assume the adversary is going to be smart rather than stupid," Farley said.
Farley has suggested it is possible Al-Qaida and other terrorist organizations already may have figured out the perfect structure for a terror cell by trial and error.
"I don't expect Osama bin Laden to be reading lattice theory in his caves in Afghanistan," said Farley. "But if it follows from the mathematics, perhaps heuristically, the terrorists will have come to the same conclusion--that this is the best way to structure a terrorist cell."
Although Farley acknowledges his model is not a panacea for terrorism, he hopes it will help reduce guesswork that might be involved in pursuing terrorists.
"It's not that I think mathematics can solve all of these problems," Farley said. "Because it can't. But it's better to use rational means to make decisions rather than guesswork."
John B. Stafford is a science-writing intern at Stanford News Service.
Shall we dance? Shorenstein APARC's Rafiq Dossani comments on President Bush's visit to Asia
When India spectacularly burst into the headlines via its nuclear explosions in May 1998, then US president Bill Clinton had openly vented his fury before aides in the White House. "We are going to come down on those guys like a ton of bricks," he had remarked. Clinton's "volcanic fit" found its echo in the White House statement that expressed "distress" and "displeasure", culminating in Washington imposing a slew of sanctions against India.
These images from the past, culled out from Engaging India, then deputy secretary of state Strobe Talbott's book, appear incredible now. Especially as India readies itself to accord a warm reception to US President George W. Bush next week. The entente, the product of laboriously conducted diplomacy as much as geopolitical shifts that yoked the two together as 'natural allies', is now taking deep root. Sure, there will be protest rallies, strident voices will rail against Bush's hegemonic designs, Prime Minister Manmohan Singh will be cautioned against any tight clinch with Bush. Yet even these voices arise from the awareness that there's a growing relationship between the US and India, realized through knots of strategic partnership and cooperation in every conceivable field - from economy and nuclear technology to education, space and agriculture.
Bush's visit next week prompted Karl Inderfurth, who was assistant secretary of state for South Asia in the Clinton administration, to say, "All of this represents a refreshing degree of continuity in US foreign policy, based on a recognition by the last two American presidents that India is a country that will be a key player in the 21st century." Similarly, Robert Hathaway, of the Woodrow Wilson Center for International Scholars, is impressed that "two successive Indian governments representing different political views and parties... both came to the same conclusion that it is in India's interest to forge a better relationship with the US."
From imposing sanctions against India to laying out a blueprint for nuclear cooperation, both New Delhi and Washington have come a long way in an inordinately short time. Ironically, it was Clinton who provided the impetus for this transformation. Talbott says the former president, after coming to terms with the Pokhran II realities, found it "downright distasteful and counterproductive" to impose sanctions against a country he was trying to improve relations with. Consequently, Talbott, Inderfurth and senior director in the National Security Council Bruce Riedal were entrusted with the task of pulling out Indo-US relations from the abyss in which it had been languishing from the beginnings of the Cold War era.What followed was a dialog between foreign minister Jaswant Singh and Talbott, both seeking to convey to each other the security and strategic interests of their respective countries.
The dialog started yielding dividends immediately, even during the Kargil conflict. Clinton's confrontation of then Pakistani prime minister Nawaz Sharif at their July 4, 1999, meeting in Washington took trust patterns between the US and India to a new level. "Throughout this period, we kept the Indian government informed of what we were doing to try to ease the crisis," recalls Inderfurth, who played a key role in the dialog with Sharif. "All of this turned into an important confidence-builder in our new relationship with India."
"The July 4 meeting was the turning point," agrees Michael Krepon of the Henry L. Stimson Center in Washington. "It demonstrated that US engagement in the India-Pakistan imbroglio would not be detrimental to New Delhi's interests, and it shifted the Clinton administration's focus from proliferation to engagement." The trust was manifest in Clinton's spectacularly successful visit to India in March 2000. An enabling factor in the budding Indo-US romance, says former ambassador Richard Celeste, was the now-forgotten Y2K factor. "The crisis introduced India's enormously talented manpower to our business leaders. Today, the 24/7 bond between companies in the US and service providers in India is the stuff of books and myth-making."
The budding romance acquired a new meaning with the advent of Bush in the White House. His most perspicacious decision was to appoint confidant Robert D. Blackwill as ambassador to India. Blackwill appealed to the popular imagination; his unequivocal pronouncements against Pakistan for fomenting terrorism in India further bolstered the trust between New Delhi and Washington. More importantly, he sought to impart a new heft to the relationship by putting his formidable weight behind the "Next Steps in Strategic Partnership", which envisaged cooperation between the two countries in civil nuclear energy, hi-tech trade, space and dual technology. "If Clinton was the pioneer of the new relationship, Bush is its architect," says Teresita Schaffer of the Center for Strategic and International Studies in Washington.
The impulse for the new relationship is linked to the question: why has India started to matter to the US? Inderfurth cites three reasons: India will become the world's most populous nation, it may well have the world's fastest growing economy by 2020, and it is the world's largest democracy. Krepon adds one more to the list: intellectual capital. "The world expects India to do more heavy lifting," he says.
Ultimately, a relationship in international affairs hinges on convergence of interests. Ashley Tellis of the Carnegie Endowment for International Peace, who's now advising under secretary of state R. Nicholas Burns, listed a string of "common interests" at a congressional hearing last year. These included:
preventing Asia from being dominated by any single power that has the capacity to crowd out others and which may use aggressive assertion of national self-interest to threaten American presence, American alliances, and American ties with the states of the region; eliminating the threat posed by state sponsors of terrorism; protecting the global commons, especially the sea lanes of communications, through which flow not only goods and services critical to the global economy but also undesirable commerce such as drug trafficking, people smuggling and weapons of mass destruction technologies.
So, isn't China the "single power" that Tellis thinks could threaten American interests in Asia? He denied this assumption to Congress, but many feel China is indeed the factor behind Washington's attempts to assist India in becoming a major world power.As author Sunil Khilnani, of the Johns Hopkins School of Advanced International Studies, says, "Many current inhabitants of the Pentagon see an India allied to the US as a potential bulwark to a China whose ambitions are still difficult to read." Washington's long-term view is that since China will not support the US war on terror, it's a threat against which the US needs a counterweight. "Japan has proven it does not have the emotional and intellectual muscle to face China. Hence, India should play that role," explains Rafiq Dossani of Stanford University.
The Bush regime's keenness on India also springs from the disaster his other foreign policy initiatives have been. "Bush would like to leave at least one foreign policy achievement as his legacy. He'd like to claim that he 'delivered' India to the US, just as Nixon could earlier claim the same about China," says Khilnani.
These reasons apart, the relationship has gathered great momentum from business-to-business links over the last decade. Says Anatol Lieven of the New America Foundation in Washington, "India's abandoning of its social democratic economic model, derived from the Nehru period, in favor of globalization and free market economics has made it much more attractive to investment and ideologically sympathetic to the US." Indeed, the more the two countries deepen their economic interdependence, the more each will have a stake in the other. And this economic interdependence can deepen, says Stephen P. Cohen of the Brookings Institution, through the removal of obstacles to US investments. "Infrastructure, (inadequate) liberalization, and education are three real obstacles. These (improvement in the three areas) will make it easy to implement the strategic relationship."
That India matters to the US is no longer a promise of the future. At a recent conference, former state department official Walter Andersen pointed out two US decisions that underscored India's enhanced importance. First, the four-country tsunami relief efforts involving the navies of the US, Japan, Australia and India. Two, the Bush administration's efforts to exempt a nuclear-capable India from exports restrictions on nuclear and dual use technology.
The blossoming ties have enabled significant partnerships in the international arena too. India has supported the war on terror in Afghanistan; its navy protected high-value US cargoes through the Straits of Malacca; more recently, India voted with the US at the International Atomic Energy Agency to declare Iran in "non-compliance" with the nuclear Non-Proliferation Treaty.
All this doesn't mean the US and India will automatically collaborate on every problem dogging them. "Nobody expects a perfect alignment ever, but increasing alignment is something we hope will come naturally," says Schaffer. Partly this alignment can be brought about through changes in the conduct of foreign policy. For instance, the US, Hathaway admits, needs to recognize that India expects to be treated on a basis of equality. Similarly, Khilnani contends, a section of Indian political elites need to shed its instinctive anti-Americanism. "This does not mean renouncing a critical position, or an independent assessment of our own interests. It means engaging more deeply and confidently, and picking battles more selectively and prudently," he says.
Obviously, like any two countries, there will be disagreements. "Indeed, there have been over the past few years on a number of issues, including the war in Iraq," says Inderfurth. But, he adds optimistically, "the fact that this has not disrupted the upward trajectory of our relationship is a good sign and a promising one for future relations."
From Marx and Mao to the Market: The Economics and Politics of Agrarian Transition
This book is the first effort to analyze the economics and politics of agricultural reforms by comparing the reform processes, their causes and their effects across this vast region. The authors draw on a vast set of studies and new data, which compare reforms and economic impacts in more than 25 countries, to come up with a series of conclusions and implications on the role of economic reforms in growth, and the importance of initial conditions and political constraints in explaining the choices that were made and their effects.
The book analyzes some of the most successful sets of agricultural policies in history that have lifted people out of poverty, raising productivity and incomes by staggering amounts. At the same time the book explains the reasons behind dramatic failures in policy processes and reforms that caused hunger, poverty and which had devastating effects on economic growth and development for millions of other people.
Institutions and the Path to the Modern Economy: Lessons from Medieval Trade
It is widely believed that current disparities in economic, political, and social outcomes reflect distinct institutions. Institutions are invoked to explain why some countries are rich and others poor, some democratic and others dictatorial. But arguments of this sort gloss over the question of what institutions are, how they come about, and why they persist. They also fail to explain why institutions are influenced by the past, why it is that they can sometimes change, why they differ so much from society to society, and why it is hard to study them empirically and devise a policy aimed at altering them. This book seeks to overcome these problems, which have exercised economists, sociologists, political scientists, and a host of other researchers who use the social sciences to study history, law, and business administration. It presents a multi-disciplinary perspective to study endogenous institutions and their dynamics.
Healthcare in the New Vietnam: Comparing patients' satisfaction with outpatient care in a traditional neighborhood clinic and a new, western-style clinic in Ho Chi Minh City
As Vietnam opens its economy to privatization, its system of healthcare will face a series of crucial tests. Vietnam's system of private healthcare -- once comprised only of individual physicians holding clinic hours in their homes -- has come to also include larger customer-oriented clinics based on an American business model. As the two models compete in the expanding private market, it becomes increasingly important to understand patients' perceptions of the alternative models of care.
This study reports on interviews with 194 patients in two different types of private-sector clinics in Vietnam: a western-style clinic and a traditional style, after-hours clinic. In bivariate and multivariate analyses, we found that patients at the western style clinic reported both higher expectations of the facility and higher satisfaction with many
aspects of care than patients at the after-hours clinic. These different perceptions appear to be based on the interpersonal manner of the physician seen and the clinic's delivery methods rather than perceptions of the physician's technical skill and method of treatment. These fndings were unaffected by the ethnicity of physician seen.
These fndings suggest that patients in Vietnam recognize and prefer more customer-oriented care and amenities, regardless of physician ethnicity and perceive no signiccant differences in technical skill between the private delivery models.
Adversaries and Partners: The Impact of the Cross-Straits Economic Relationship on the Development of the Taiwanese and Chinese Economies
The Chen administration has attempted to deal with the growing economic and technological links across the Taiwan Straits through confrontation with and coercion against Taiwanese businesses with investments in the People's Republic of China. These attempts have done little to stop the flow of capital and knowledge from Taiwan to China, but this failure is not necessarily bad for Taiwan even as it is a boon for China. This talk will address in which sectors and in what ways the flow of Taiwanese business activities to China have been beneficial or detrimental to each economy. Looking forward, the talk will also attempt to answer how further integration will benefit each side.
Douglas Fuller has spent over ten years researching technological development in East Asia. Most recently, he completed a doctorate at MIT in political economy. The topic of his thesis was technological development in China's IT industry. For this and previous research, he has interviewed IT firms in Malaysia, Japan, Korea, Taiwan, the People's Republic of China and the US. He has published articles in Industry and Innovation and other peer-reviewed journals.
A wine and cheese reception will follow the seminar.
This is the inaugural seminar of the CDDRL Taiwan Democracy Program and it is co-sponsored by the Walter H. Shorenstein Asia Pacific Research Center.
Philippines Conference Room
What is Critical in Critical Infrastructure Protection? An Application of the Science of Networks to Homeland Security
One of the fundamental challenges facing the United States Department of Homeland Security is the determination of what is critical in critical infrastructure systems such as water, Internet, power, energy, and transportation. Current practice is focused on single-point security audits of things like power plants, airport terminals, and refineries. But this approach does not identify the most vital components of any infrastructure which leads to an inadequate strategy and wasted funding. We show that single-point audits lead to the wrong conclusions and do not provide sufficient national security relative to the effort and money being spent. Instead, we propose an approach similar to social network analysis whereby a critical infrastructure is modeled as a network and then analyzed to identify the critical nodes and links. We present models and software to analyze such networks to obtain optimal resource allocation such that network risk is minimized. In the parlance of network science, our approach extends the theory of scale free networks to incorporate damage estimates for nodes and links. By exploiting the structure inherent in a network, we are able to allocate resources in the most optimal manner, which leads to a fundamentally different strategy than currently practiced.
Rudolph Darken is the Director of the Institute for Modeling, and Simulation (MOVES) and an Associate Professor of Computer Science at the Naval Postgraduate School in Monterey, California. He is the Chair of the MOVES Curriculum Committee and is also the Associate Director for Research for the Center for Homeland Defense and Security. His personal research has been primarily focused on human factors and training using virtual environments and computer gaming media with emphasis on navigation and wayfinding in large-scale virtual worlds. He is a Senior Editor of PRESENCE Journal, the MIT Press journal of teleoperators and virtual environments. He received his B.S. in Computer Science Engineering from the University of Illinois at Chicago in 1990 and his M.S. and D.Sc. degrees in Computer Science from The George Washington University in 1993 and 1995, respectively.
Ted Lewis is Professor of Computer Science and Academic Associate of the Homeland Security curriculum at the Naval Postgraduate School. He served as Sr. Vice President of Eastman Kodak Company, President and CEO of DaimlerChrysler Research, North America, Editor-in-Chief (twice) of IEEE Computer magazine and IEEE Software magazine, and has authored more than 100 papers and 30 books over the past 35 years on subjects ranging from software engineering, parallel processing, to hi-tech business. Currently, he teaches the Critical Infrastructure Protection course at NPS and does research in the application of network science to strategy and policy questions for the US Department of Homeland Security. Dr. Lewis' textbook, "Critical Infrastructure Protection in Homeland Security: Defending a Networked Nation" will be published by John Wiley & Sons, in April 2006.
Reuben W. Hills Conference Room
MNC R&D Labs in China -- IP Protection and Innovation for the Global Market
Multinational corporations (MNCs) have increasingly located research and development (R&D) in developing countries such as China and India since the 1990s. On the one hand, governments in developing countries are eager to attract R&D to their local economies; on the other hand, developed countries are concerned about losing their competitive advantage due to R&D offshoring. At the same time, intellectual property protection is a growing concern.
What are the MNC R&D labs actually doing in China? Quan noted that her 2004 survey of MNC R&D labs in information technology industries in Beijing found that these MNC R&D labs are not just providing technical support, product localization, or product development for the local market; rather, they are developing products for the global market. Her study documents an emerging spatial division of labor in R&D based on the increasing specialization of R&D activities.
Ensuring returns appropriation
Appropriating returns is essential to continuous R&D investment. However, returns appropriation is not necessarily realized through formal IP protection institutions such as the patent system. As the growing trend of globalization of R&D has evolved to this new stage characterized by MNCs locating R&D labs in developing countries, it provides a good test bed to further explore more theoretical mechanisms of IP protection. Considering the weak intellectual property rights regimes these developing countries typically have, it is crucial for MNCs to find an effective way to protect their valuable technologies thus facilitating returns appropriation from their R&D activities in host developing regions. It is in fact the effective means of IP protection that can greatly assist MNCs' location of R&D offshore, in addition to other well-known incentives such as low cost R&D labor and market attraction.
R&D specialization essential
Using evidence from MNC R&D labs in Beijing and Shanghai, Quan's study proposes that R&D is further specialized within MNCs' global R&D network. Furthermore, IP protection and returns appropriation can be realized through such R&D specialization. The key proposition is formulated as below: 'Hierarchical modular R&D structure can be an effective way for MNC R&D labs to protect their intellectual property and thus facilitate returns appropriation in weak IPR regime developing countries'. This 'hierarchy' includes 'core R&D' and 'peripheral R&D', based on two dimensions--technology value-added, desire and ease of IP protection. While 'core R&D' is mostly done in developed countries, 'peripheral R&D' is conducted in developing countries. Dr. Quan's study suggests that this hierarchical modular R&D structure facilitates the global configuration of MNC R&D labs.
Slides from this presentation can be found at the event link below.