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The Right Kind of Corruption

by Hilton L. Rootvia Hoover Digest
Tuesday, April 30, 1996

Payoffs and slush funds may be rampant in Asian countries such as South Korea and Taiwan, but they don't seem to have interfered with economic growth. Hoover fellow Hilton L. Root explains why.

Books

The Effect of Japanese Investment on the World Economy

via Hoover Institution Press
Thursday, April 4, 1996

A study of the controversy over Japanese foreign investments.

Lessons from Abroad

by Leslie Gardnervia Policy Review
Friday, March 1, 1996

Japan's parole models

Let's Wait for Korea to Decide

via Analysis
Thursday, February 1, 1996

After a brief period of calm in the early 1990s, the United States and Korea are about to enter a new round of trade conflict. Given the importance of bilateral trade to each other's economy and the need for sustained cooperation in the face of North Korea's nuclear program, the United States and Korea must resolve emerging trade disputes over U.S. access to Korean auto, telecommunications, and food markets.

In dealing with Korean trade barriers, however, the United States should avoid a confrontational approach. Under his "globalization" initiative, President Kim Young Sam has placed a priority on deregulation and economic liberalization. Even without U.S. pressure, then, Korea will open its markets for its own good. If the current reforms in Korea do stall, the United States should consider offering a free trade agreement to Korea unilaterally and waiting for Korea to decide. This will give the people of Korea a chance to choose what kind of economy they want to have.

George P. Shultz on China and Bosnia

by George P. Shultzvia Hoover Digest
Tuesday, January 30, 1996

Hoover fellow and former Secretary of State George P. Shultz recently spent a morning talking about the challenges posed to U.S. foreign policy by China, one of the biggest countries on earth, and Bosnia, one of the smallest. Shultz answered questions put to him by Hoover fellow Peter Robinson.

RED FLAG OVER HONG KONG

by Alvin Rabushka, Bruce Bueno de Mesquita, David Newmanvia Hoover Digest
Tuesday, January 30, 1996

On July 1, 1997, the British Crown Colony of Hong Kong will cease to exist, becoming instead the Hong Kong Special Administrative Region of the People's Republic of China. Will the new Hong Kong continue to flourish or stagnate? Hoover fellows Bruce Bueno de Mesquita and Alvin Rabushka and their coauthor, David Newman, assert that we will all be able to learn a great deal by watching the value of a single, critical item, the Hong Kong dollar.

Korea Opens Its Markets . . . Slowly

by Jongryn Movia Hoover Digest
Tuesday, January 30, 1996

Reporting on two Hoover conferences on Korea, Hoover fellow Jongryn Mo asserts that Koreans are, slowly, opening their markets. And growing feisty.

China's Economic Revolution and Its Implications for Sino-U.S. Relations

by Ramon H. Myersvia Analysis
Wednesday, November 1, 1995

In the next few decades Sino-U.S. relations will be strongly influenced by four issues: economic friction, international security interests, human rights, and conflicting claims by Taipei and Beijing over sovereignty to Taiwan. Economic friction and international security concerns will dominate as China's economic and military prowess grows.

The prospects seem bright for China's economy to become productive and sustain annual growth rates of around 8 percent because in 1992 the Chinese Communist Party decided that the majority of its 150,000 state-owned enterprises would be restructured by the year 2000. This means changing property rights to corporatize the state-owned enterprises and creating a market economy for them to operate in. If China's leaders successfully carry out this revolution, China will not only have a large, prospering middle class but become a major military power.

To anticipate these developments, the United States should now forge a close working relationship with the People's Republic of China by taking the following steps: establish annual summit meetings and a hot-line communication between Sino-U.S. leaders; create a high-level Sino-U.S. committee of officials and experts to manage potential economic friction; expand scholarly exchange programs; encourage local government exchanges. These overarching arrangements will facilitate communications, enhance mutual understanding, build confidence, and reduce tensions between the leaders and political elite of both countries.

Taiwan and the United Nations: Conflict between Domestic Policies and International Objectives

via Analysis
Wednesday, November 1, 1995

For reasons of nationalist sentiment and in hopes that it might help prevent People's Republic of China (PRC) military action, public opinion in Taiwan is strongly in favor of seeking U.N. membership. Responding to this sentiment, both major political parties, the ruling Kuomintang and the opposition Democratic Progressive Party (DPP), eagerly support the idea. But consensus ends there.

To promote its program of ultimate de jure separation from China, the DPP wants to apply as a new member called Taiwan even though it understands that new members can enter only with approval of the Security Council in which the PRC holds a veto. The government wants a General Assembly (GA) study committee formed in hopes that it will recommend amending GA resolution 2758, which expelled the Republic of China (ROC) in 1971.

The Taiwan government's approach is half right: any General Assembly can amend or revoke a resolution adopted by one of its predecessors. But even if a study committee were formed--and two previous assemblies have declined to create one--the PRC would have one of the seats and, because such committees operate on a consensus basis, would be able to block such a recommendation.

Given that there is no court that will decide the matter, the best, indeed only, way to amend resolution 2758 is by direct appeal to the assembly. This can be successful if the ROC can accumulate a working majority of its voting members. The author argues that this can be done by working through the specialized agencies within the U.N. constellation to demonstrate to Third World countries the valuable contributions Taiwan can make to their hopes for development and thus enlist their support.

Books

The Kazakhs: Second Edition

by Martha Brill Olcottvia Hoover Institution Press
Friday, July 7, 1995

The major events that shaped the present day Islamic nation of Kazakhstan.

Pages