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New Draper Hills Summer Fellows come to Stanford to study linkages between democracy, development, and the rule of law

Rising leaders from a diverse group of nations in transition, including China, Russia, Ukraine, Syria, Iran, Iraq, Pakistan, Egypt, Kenya, Zimbabwe, Mozambique, and Nigeria arrived on campus on July 25 for a three-week seminar as Draper Hills Summer Fellows on Democracy and Development. Initiated by FSI's Center on Democracy, Development, and the Rule of Law (CDDRL) six years ago, the program has created a network of some 139 leaders from 62 transitioning countries.  This year's exceptional class of  23 fellows includes a deputy minister of Ukraine, current and former members of parliament (including a deputy speaker), leading attorneys and rule of law experts, civic activists, journalists, international development practitioners, and founders of non-governmental organizations (NGOs). (One fellow needed to withdraw because he was named to the Cabinet of the new Philippine president, Noynoy Aquino).

Draper Hills Summer Fellows are innovative, courageous, and committed leaders, who strive to improve governance, enhance civic participation, and invigorate development under very challenging circumstances"
- Larry Diamond
"Draper Hills Summer Fellows are innovative, courageous, and committed leaders, who strive to improve governance, enhance civic participation, and invigorate development under very challenging circumstances," says CDDRL Director Larry Diamond. "This year's fellows are an inspiring group. They have come here to learn from us, but even more so from one another. And we will learn much from them, about the progress they are making and the obstacles they confront as they work to build democracy, improve government accountability, strengthen the rule of law, energize civil society, and enhance the institutional environment for broadly shared economic growth."

The three-week seminar is taught by an interdisciplinary team of leading Stanford faculty. In addition to Diamond, faculty include FSI Senior Fellow and CDDRL Deputy Director Kathryn Stoner; Stanford President Emeritus Gerhard Casper; FSI Deputy Director and political science Professor Stephen D. Krasner; Olivier Nomellini Senior Fellow Francis Fukuyama; professor of political science, philosophy, and law Joshua Cohen; professor of pediatrics and Stanford Health Policy core faculty Paul H. Wise; visiting associate professor Beth van Schaack; FSI Senior Fellow Helen Stacy; Walter P. Falcon, deputy director, Program on Food Security and the Environment; Erik Jensen, co-director of the Stanford Law School's Rule of Law Program; Avner Greif, professor of economics; Rick Aubry, lecturer in management, Stanford Graduate School of Business; and Nicholas Hope, director, Stanford Center on International Development.

Other leading experts who will engage the fellows include President of the National Endowment for Democracy Carl Gershman, United States Court of Appeals Judge Pamela Rymer, International Center on Nonviolent Conflict founding chair Peter Ackerman, Omidyar Network partner Matt Halprin, Conservation International's Olivier Langrand, executives of leading Silicon Valley companies, such as Google and Facebook, and media and nonprofit organizations in the Bay Area.  Michael McFaul, a Stanford political science professor and former CDDRL director, who now serves on the National Security Council as President Obama's chief advisor on Russia, will come to campus to teach a session on U.S. foreign policy in the Obama administration.

The demanding, but compelling curriculum will devote the first week of the seminar to defining the fundamentals of democracy, good governance, economic development, and the rule of law.  In the second week, faculty will turn to democratic and economic transitions and the feedback mechanisms between democracy, development, and a predictable rule of law. This week will include offerings on liberation technology, social entrepreneurship, and issues raised by development and the environment.  The third week will turn to the critical - and often controversial - role of international assistance to foster and support democracy, judicial reform, and economic development, including the proper role of foreign aid.

Our program helps to create a broader community of global activists and practitioners, intent on sharing experiences to bring positive change to some of the world's most troubled countries and regions"
- Kathryn Stoner-Weiss
The fellows themselves also lead discussions, focused on the concrete challenges they face in their ongoing work in political and economic development. "Fellows come to realize that they are often engaged in solving similar problems - such as endemic corruption in different country contexts," says Kathryn Stoner-Weiss. "Our program helps to create a broader community of global activists and practitioners, intent on sharing experiences to bring positive change to some of the world's most troubled countries and regions."

The program has received generous gifts from donors William Draper III and Ingrid Hills.  Bill Draper made his gift in honor of his father, Maj. Gen. William H. Draper, Jr., a chief advisor to Gen. George Marshall and chief diplomatic administrator of the Marshall Plan in Germany, who confronted challenges comparable to those faced by Draper Hills Summer Fellows in building democracy, a market economy, and a rule of law, often in post-conflict conditions. Ingrid von Mangoldt Hills, made her gift in honor of her husband, Reuben Hills, president and chairman of Hills Bros. Coffee and a leading philanthropist. The Hills project they ran for 12 years improved the lives of inner city children and Ingrid saw in the Summer Fellows Program a promising opportunity to improve the lives of so many people in developing countries.

Thanking the program's benefactors, Larry Diamond says, "The benefit to CDDRL faculty and researchers is incalculable, and we are deeply grateful for the vision and generosity of Bill Draper and Ingrid Hills." As he and Kathryn Stoner-Weiss state, "The Draper Hills Summer Fellows Program allows us to interact with a highly, talented group of emerging leaders in political and economic development from diverse countries and regions. They benefit from exposure to the faculty's cutting edge work, while we benefit from a cycle of feedback on whether these ideas work in the field."  Like CDDRL, which bridges academic theory and policy, the Draper Hills Summer Fellows Program, they note, "is an ideal marriage between democratic and development theory and practice."

For additional details on the program or to request permission to attend a session, please contact program coordinator Audrey McGowan, audrey.mcgowan@stanford.edu.

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The 2008–2009 financial crisis demands we look anew at the role of corporations, and the working of financial markets around the world. In this challenging and insightful book, one of our most eminent economists provides a compelling new analysis of the corporate firm; the role of shareholders, managers and workers; and institutional governance structures.

In recent decades the firm has predominantly been seen as an organization run and governed in the interests of shareholders, where management acts as the agent of shareholders, and the workers simply as instruments for share-value maximization. This book reverses this viewpoint. It sees corporations as associational cognitive systems where "cognitive actions" are distributed amongst managers and workers, with shareholders supplying "cognitive tools" and monitoring their use in the systems. Aoki analyses the different relationships that can exist between shareholders, managers, and workers from this perspective, and identifies a range of different models of organizational architecture and associated governance structures. He also discusses ways in which corporations act as players in social, political, and organizational games, as well as global economic games; how these inter-related social dynamics may change particular, distinctive national structures into the diversity incorporated in the global corporate landscape; and how they now call for new roles for financial markets.


"Masahiko Aoki uses the social mathematics of game theory to reveal the deep structure of corporate governance systems, in the process explaining the persistence of diversity under conditions of globalization. His profound and highly original analysis speaks directly to the issue of corporate governance reform in the aftermath of the financial crisis of 2008–9."
-Simon Deakin, Professor of Law, University of Cambridge

"The recent wave of fraud, corruption, and fiscal irresponsibility at the highest corporate levels dramatizes the need for a model of the modern corporation that is at the same time deeply economic in the recognition of the centrality of incentives, and deeply sociological in the recognition of the centrality of social norms and a culture of corporate morality. Professor Aoki has combined his magisterial knowledge of business organization with a foundational study of the role of culture in epistemic game theory to produce, for the first time, a truly transdisciplinary model of the corporation."
-Herbert Gintis, Santa Fe Institute

"This is a path breaking book that provides a rigorous analysis of the cognitive underpinnings of corporations. It gives fundamental insights into the diversity of organizational forms that exist and the association of these with the historical, political, social, and technological contexts within which they operate. As with so much of Professor Aoki's work, it will radically alter the way in which we view the corporation."
-Colin Mayer, Peter Moores, Dean, Saïd Business School, University of Oxford

"A pioneering contribution which formalizes in game theoretic language complex institutional structure and environment of the corporation both at a moment of time and over time."
-Douglass C. North, Nobel Laureate in Economics 1993, Spencer; T. Olin Professor in Arts and Sciences, Washington University in St. Louis

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On September 7, 2010, the Program on Energy and Sustainable Development in collaboration with the Stanford University's Graduate School of Business and Stanford Law School hosted an all-day conference on "Climate Policy Instruments in the Real World" in the Bechtel Conference Center. This conference featured presentations by leading researchers on the political, economic, and regulatory challenges associated with major climate policy instruments.
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PESD Director Frank Wolak delivered his presentation on "Symmetric Treatment of Load and Generation: A Necessary Condition for Demand Response to Benefit Wholesale Market Efficiency and Manage Intermittency" in his keynote for Agrion's "The Missing Link: Constructing a Dynamic Pricing Plan for a Smarter Grid" event on June 9, 2010.
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California is like many states whose electricity customers are still protected by real-time price risk through fixed retail price.  This fixed retail price, however, restricts the consumer's ability to save money by reducing consumption during peak hours. 

Those queasy about allowing or subjecting customers' to dynamic pricing are up for a fight; major technological barriers to dynamic pricing will soon be eliminated as all three of California's IOUs will have interval meters.  The Home Area Network segment of the Smart Grid Ecosystem Broadband Plan includes some strong words for State PUCs, urging them to in turn push utilities to deliver real time pricing data to consumers.  What remains to be seem is: What set of pricing plans would satisfy both HAN vendors and the PUCs?

Panel discussion topics:

  • Is some dynamic pricing available?
  • What will the plans look like?
  • Research questions
  • What set of pricing plans would satisfy both HAN vendors and the PUCs?

Westin Hotel
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Stanford University 
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Website: https://fawolak.org/

(650) 724-1712 (650) 724-1717
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Senior Fellow at the Freeman Spogli Institute for International Studies
Holbrook Working Professor of Commodity Price Studies in Economics
Senior Fellow, by courtesy, at the Stanford Institute for Economic Policy Research
frank_wolak_033.jpg MS, PhD

Frank A. Wolak is a Professor in the Department of Economics at Stanford University. His fields of specialization are Industrial Organization and Econometric Theory. His recent work studies methods for introducing competition into infrastructure industries -- telecommunications, electricity, water delivery and postal delivery services -- and on assessing the impacts of these competition policies on consumer and producer welfare. He is the Chairman of the Market Surveillance Committee of the California Independent System Operator for electricity supply industry in California. He is a visiting scholar at University of California Energy Institute and a Research Associate of the National Bureau of Economic Research (NBER).

Professor Wolak received his Ph.D. and M.S. from Harvard University and his B.A. from Rice University.

Director of the Program on Energy and Sustainable Development
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