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For the past two decades China has been a poster child of successful globalization, integrating with the world and in the process lifting millions of citizens out of poverty. But China’s integration into the world economy and global trends drive and constrain Beijing’s ability to manage growing social, economic and political challenges. 

Global trends affect all nations, but China may be uniquely vulnerable to developments beyond its borders and beyond its control. Chinese leaders recognize the diversity and complexity of the challenges they face but appear determined to confront them individually and incrementally. How – and how well – they respond to those challenges will have significant consequences of China and the world. 

Many of these challenges center on rising expectations in the face of increasing competition.

Thanks to a fortuitous combination of wise decisions and good timing, China has made phenomenal progress in the three decades since Deng Xiaoping launched the policy of reform and opening to the outside world in 1978. More Chinese citizens live better today than ever before and many more expect to join the privileged ranks of the middle class. Aspirations and expectations have never been higher. That’s a very good situation to be in, but it also entails enormous challenges for China’s leaders because several trends indicate that meeting expectations could become increasingly difficult.

Chinese aspirations have never been higher, but meeting expectations could get increasingly difficult.

Specifically, China will find it increasingly difficult to sustain past rates of growth and improvements in living standards.

One visible trend results from the strategic decision to take on the easiest tasks first in order to produce an “early harvest” of tangible benefits that build experience and confidence to tackle the next set of challenges. By design, each successive set of challenges is more difficult than the ones that preceded it. There are many different manifestations of this phenomenon, including the decision to focus on the more developed coastal areas and move inward to less-developed regions characterized by less infrastructure, poorer nutrition and less education. Other manifestations include the consequences of joining international production chains as low-cost assemblers of goods that are designed, manufactured and marketed elsewhere. Sustained success requires moving up technical and managerial ladders to perform more demanding and better paying tasks. Other daunting challenges result from policies that have deliberately constrained domestic demand with predictable consequences that include increasing inflationary pressures and a nationwide property bubble.

A second category of challenges results from the fact that China now has, and will continue to have, more competition than in the past. When Deng announced the decision to pursue the longstanding goal of self-strengthening by following the model of Japan, Taiwan and other rapid modernizers, he was responding to a de facto invitation from the Carter administration for China to take advantage of “free world” economic opportunities without becoming an ally or having to change its political system. This gave China a 10-year head start with virtually no competition until the Soviet Union collapsed and the Cold War ended. China made good use of this opportunity and has since taken advantage of experience and ties forged with foreign partners before Central European states and the states of the former Soviet Union joined the game. 

India, Brazil, Indonesia and other “non-aligned” states stayed out of the game for a few years longer, thereby increasing China’s advantages. Now there are more players and potential competitors climbing the learning curve more rapidly than they otherwise might have done because they can learn from China’s experience. Foreign investors and international production chains now have far more options than they did when China was essentially the only large developing country in the game.

China now has, and will continue to have, more competition than in the past from other emerging economies.

A third set of challenges centers on demographic trends and implications. One is the oft-cited but nonetheless extraordinary challenge of being the first country in history to have a population that becomes old before it becomes rich. Many countries have graying populations – Japan and South Korea in Northeast Asia and most of Western Europe – but the others are much more highly developed than China and have extensive social safety nets to meet the needs of their senior citizens. China’s one-child-per-couple-policy has accelerated a demographic shift that normally occurs in response to higher standards of living, greater educational and employment opportunities for women, and the independent choices of millions of people. 

China must put in place an extensive and costly system to support its elderly – reducing the amount of money and other resources available for other goals – or live with the consequences of making individuals and couples responsible for the wellbeing of parents and grandparents. This challenge is compounded by the broader consequences of becoming a society in which there are few siblings, cousins, aunts, uncles or other relatives beyond the nuclear family.

A fourth challenge derives from the highly centralized character of China’s political system. For three decades, China arguably has been able to develop as quickly as it has because it is a unitary state – not a federal system in which the provinces have significant independent authority – with a single-party regime. This facilitates timely and decisive action in response to perceived needs and opportunities and makes it easier to coordinate multiple components of an increasingly complex system. There are advantages to this type of system, but also risks and costs. One set of risks results from the fact that “all” key decisions must be made at the apex of the system by a relatively small number of officials who have only finite time, attention and knowledge. As China has become more modern and prosperous, it has also become more diverse. Different locales, sectors of the economy, interest groups and other constituencies have diverse expectations of the political system. Keeping the many concerns and requirements straight, and successfully juggling and balancing competing demands, will continue to become more complex and difficult.

Looming challenges are under study, increasing the likelihood of avoiding the most negative consequences.

As this happens, it will intensify another challenge, namely, the challenge of being “right” most of the time with little to no cushion for error. Systems with distributed authority are more cumbersome, but they avoid single points of failure. The danger of single-point failure increases as the complexity of issues, number of competing viewpoints and volume of information increases. Logically, the chance of mistakes increases as decisions become more demanding. Theoretically, there exists a point in any system at which the system can be overwhelmed by the magnitude of the task. The eurozone crisis may be a cautionary example.

Recognizing these challenges should not be read as a pessimistic prediction of inevitable failure. Indeed, the fact that looming but not yet imminent challenges are already the subject of study, deliberation and debate around the world increases the likelihood of avoiding the most negative or disruptive consequences; mitigating those that cannot be avoided entirely; and capitalizing on the many positive trends toward greater cooperation, acceptance of interdependencies and ability to learn from others’ experiences. 

Clearly discernible trends point to common interests and opportunities for cooperation as well as to challenges of unprecedented complexity. Whether China continues to eschew active engagement to address challenges at the global level in order to concentrate on domestic problems will shape possibilities for international cooperation. So, too, will actions of other nations that help or hinder China’s ability to solve its problems.

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YaleGlobal Online
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Thomas Fingar
Thomas Fingar
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OVER the last three years, as I delved into the world of American nuclear weapons, I felt increasingly as though I had stepped into a time warp. Despite the nearly total rearrangement of the international security landscape since the demise of the Soviet Union in 1991, the rise of Islamic terrorism and the spread of nuclear materials and technology to volatile nations like Pakistan, North Korea and Iran, the Defense Department remains enthralled by cold war nuclear strategies and practices.

Barack Obama took office determined to change that. He has made progress on many fronts. Last week, he outlined a new, no-frills defense strategy, downsizing conventional forces. He now needs to double down on his commitment to refashion nuclear forces. He should trim the American nuclear arsenal by two-thirds to bring it down to a sensible size, order the Pentagon to scale back nuclear war-fighting plans so they are relevant to contemporary threats, remove most American intercontinental, land-based missiles from high alert and drop the quaint notion that a fleet of aging B-52 bombers can effectively deliver nuclear weapons to distant targets.

This agenda is not only desirable, it is doable without undercutting American security. It would save tens of billions of dollars a year, a relatively small amount by Pentagon standards, but every billion counts as Leon E. Panetta, the defense secretary, trims his budget. And the steps can safely be taken without requiring reciprocal moves by Russia that must be codified in a treaty.

For the last few months, the Obama administration has been conducting a classified review of the doctrines and operations that determine the shape and potential uses of America’s nuclear armaments. If the president pushes back against the defenders of the old order at the Pentagon and other redoubts of the nuclear priesthood, he can preserve American security while making the United States a more credible leader on one of today’s most critical issues — containing the spread of nuclear weapons. Like a chain smoker asking others to give up cigarettes, the United States, with its bloated arsenal, sounds hypocritical when it puts pressure on other nations to cut weapons and stop producing bomb-grade highly enriched uranium, the key ingredient of a crude nuclear weapon.

American actions alone won’t end the proliferation danger, but American leadership is essential to any hope of containing the threat.

Sam Nunn, the former chairman of the Senate Armed Services Committee, and anything but a dove over the years, rightly warns that the spread of weapons and the means to make them may soon reach a combustible stage where New York, Washington, Moscow, Tokyo or London is at risk of a nuclear terrorist attack.

Mr. Nunn and other keepers of America’s cold-war armory, George P. Shultz and Henry A. Kissinger, former Republican secretaries of state, and William J. Perry, a former Democratic defense secretary, have banded together in recent years to press, among other things, for cutting nuclear forces, de-alerting missiles and, ultimately, eliminating nuclear arms. Mr. Obama has embraced their aims and welcomed them to the Oval Office. Their high-powered, bipartisan alliance, if adroitly employed by the White House, ought to provide some political cover as Mr. Obama reshapes nuclear policy while running for a second term.

There is no national security rationale for maintaining an arsenal of some 5,000 warheads, with nearly 2,000 arms ready to use on short notice and the rest in reserve. We don’t need thousands of warheads, or even hundreds, to counter threats from countries like Iran or North Korea.

The only conceivable use of so many weapons would be a full-scale nuclear war with Russia, which has more warheads than the United States. But two decades after the collapse of the Soviet Union, even Vladimir V. Putin, with his authoritarian bent, is not about to put Russia on a collision course with the United States that leads to nuclear war. China, equally unlikely to escalate tensions to the nuclear brink, probably has fewer than 400 warheads and a policy to use them only in self-defense. Pakistan has roughly 100, North Korea fewer than 10 and Iran, so far, zero.

The United States could live quite securely with fewer than 1,500 warheads, half in reserve. Defenders of the nuclear faith claim we need 5,000 weapons as a hedge against warheads that may become defective over time. But an elaborate Energy Department program to maintain and refurbish warheads, the Stockpile Stewardship Program, has proved highly effective.

Another oft-cited reason for increasing our arsenal is that the Pentagon’s nuclear war-fighting plans still call for striking hundreds of targets in Russia and China, as well as dozens of sites in a number of other publicly unidentified nations — presumably Iran, North Korea and Syria — considered potentially hostile to the United States and eager to possess unconventional weapons.

Washington’s current nuclear war plans remain far too outsize to deal with any plausible attack on America. Mr. Obama could remove some nations from the hit list, starting with China, and tell his generals to limit the number of targets in the countries that remain.

The oversize American nuclear arsenal features an equally outdated reliance on long-distance bombers. The days when lumbering B-52 bombers could play a central role in delivering nuclear weapons — memorably spoofed in Stanley Kubrick’s “Dr. Strangelove” — ended decades ago. Mr. Obama should ground the bombers and depend on land- and sea-based missiles.

The high-alert status of America’s intercontinental ballistic missiles is another anachronism. There are few circumstances that might require the United States to quickly launch nuclear-tipped missiles, and missiles on high alert are an invitation to an accident, or impulsive action. In the first year of his presidency, Mr. Obama outlined an ambitious nuclear weapons agenda. Absent new action, Washington will remain frozen in a costly cold war posture.

Philip Taubman is a former New York Times bureau chief in Moscow and Washington and the author of “The Partnership: Five Cold Warriors and Their Quest to Ban the Bomb.”

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New York Times
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Philip Taubman
Philip Taubman
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The production and distribution of counterfeit medications has become a significant global public health issue. Though not as rampant in the United States, the Food and Drug Administration (FDA) has seen a 10 fold increase in the number of cases investigated, particularly a rise in illegally imported and diverted medications entering our legitimate drug supply. In order to curb these illegal activities, California and the federal government have introduced various pieces of legislation to address this. In addition, international entities, State Boards of Pharmacy and the FDA have begun promoting utilization of radio frequency identification technology and other technology to effectively track the medication supply. In a recent California survey, pharmacists felt strongly that the presence of counterfeit medications poses a problem in their pharmacy practice, but they still face several challenges in identifying counterfeit medications, counseling their patients, and forging their role in implementing legislative requirements.

This presentation will aim to provide an introduction to the international and domestic counterfeit drugs situation, discuss possible factors facilitating patient exposure to counterfeit medications, examine potential sources for counterfeit medications in the United States, identifiy federal legislation issues, discuss various forms of technology being used to combat counterfeit medications, and recognize the role of pharmacists and the challenges they face in dealing with counterfeit medications.


Speaker Biography:

Dr. Elaine Law is currently a Clinical Pharmacist specializing in Adult General Surgery at UCSF Medical Center and an Assistant Clinical Professor in the UCSF School of Pharmacy. She received a B.S. in Molecular, Cell and Developmental Biology from UCLA, earned a Doctor in Pharmacy from UCSF School of Pharmacy and completed a General Practice Pharmacy Residency at UCSF Medical Center. She holds a Board Certification in Pharmacotherapy and her research interests include roles pharmacists can play in public health issues including counterfeit medications and pharmacist-based immunization programs. She is an advocate of patient care in underserved areas and reaches out regularly to the Tenderloin communities and elderly populations of San Francisco through pharmacy health outreach programs.

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Elaine Law Assistant Clinical Professor Speaker UCSF School of Pharmacy
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An excerpt from "Spytainment: The Real Influence of Fake Spies" (pp. 599-600):

For avid fans of the now-departed television show 24, a visit to Central Intelligence Agency (CIA) headquarters will be disappointing. The visitors’ center looks nothing like the ultra high-tech rooms of CTU, Jack Bauer’s fictitious counterterrorist agency.

Instead, the entry to America’s best-known intelligence outfit has more of a shabby, post office feel. There are soda vending machines and an old pay phone against the back wall, with customer service–like teller windows in front. Once cleared by security, visitors can walk ten minutes down a winding road or take a rambling shuttle bus to the old Headquarters building. The lobby has no retina scans or fancy fingerprint devices, just a few turnstiles and a kind, elderly security guard who takes cell phones and hands out claim checks. Even the suite of executive offices where the CIA director sits seems strangely ordinary. The only clue that this is not a typical government building is the desks. They are all bare. Not a visible paper in sight. Documents are either locked away or burned at the end of each day.

Most people know deep down that real spying is different than what is portrayed on television and in the movies. But how different? And how much does it matter?

Today, the facts and fiction of the spy business are blurring, with important consequences for intelligence policy. In the past two decades, the Spytainment industry has skyrocketed. Government over-classification has continued to keep vital and timely public information about U.S. intelligence agencies out of the public domain. And Political Science professors have been busy researching and teaching about seemingly everything except intelligence. The results are serious. As the nonpartisan, expert Intelligence Science Board concluded in a 2006 report, spy-themed entertainment has become adult education. American citizens are steeped in misperceptions about what intelligence agencies actually do, and misplaced expectations about how well they can do it. Perhaps even more disturbing, evidence suggests that policymakers—from cadets at West Point to senators on the Intelligence Committee to Supreme Court Justices—are referencing fake spies to formulate and implement real intelligence policies.

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International Journal of Intelligence and Counterintelligence
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Amy Zegart
Amy Zegart
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Prior to coming to CISAC, Joe was the project director and leader for the Los Alamos National Laboratory’s team in the Reliable Replacement Warhead (RRW) design feasibility study.  He will share his experiences and knowledge from over 25 years at Los Alamos and multiple projects related to nuclear weapons design and maintenance, plutonium storage and disposition, stockpile life extension and plutonium aging.  Following a slide show, he will be available for a question and answer session.
 
This is the second in a series of informal gatherings aimed at providing first hand, in-depth information on a variety of topics.  Different from more a formal research seminar, these informal discussions will provide first hand information and Q&A opportunities to facilitate wider understanding and to catalyze potential unrealized research opportunities.

Dr. Joseph C. Martz is a 25 year employee of the Los Alamos National Laboratory in which he has served in a variety of research, leadership, and management positions.  His career has focused on nuclear weapons and materials, and he has lead and participated on a variety of projects related to nuclear weapon design and maintenance, plutonium storage and disposition, stockpile life extension and plutonium aging.  His early work led to a nationwide evaluation and repackaging of stored nuclear materials, and he was a co-developer of the ARIES system, a means to dismantle and safely recover plutonium from excess nuclear weapons.  Dr. Martz technical focus has been on plutonium surface chemistry and metallurgy, including oxidation, dispersal mechanisms, and plutonium aging.  He is a long-time contributor to the Enhanced Surveillance Program for the stockpile, including the evaluation and predictive assessment of aging effects in stockpile materials and components.   Most recently, Dr. Martz was the project director and leader for the New Mexico team in the recent Reliable Replacement Warhead (RRW) design feasibility study.  Dr. Martz is the author of over 50 papers and invited presentations in these areas.  He holds a Ph.D. in Chemical Engineering from the University of California, Berkeley.

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Joseph Martz CISAC Consulting Professor Speaker
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Lisa Trei
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Joseph C. Martz, a nuclear materials scientist at Los Alamos National Laboratory (LANL), has been named the inaugural William J. Perry Fellow in International Security at Stanford University.

Stanford established the fellowship in 2007 to celebrate the 80th birthday of William J. Perry, the 19th U.S. Secretary of Defense from 1994 to 1997 and co-director of Stanford's Center for International Security and Cooperation (CISAC) from 1988 to 1993. Perry, the Michael and Barbara Berberian professor, and CISAC Co-Director Siegfried S. Hecker currently lead the center's Preventive Defense Project, which seeks to forestall dangerous security developments before they require drastic military intervention.

In a statement announcing Martz's selection as the first Perry Fellow, Hecker said CISAC supports scholarship on nuclear disarmament and nonproliferation, particularly at the intersection of science and policy-making. "Your background in understanding the configuration, manufacturing, design and certification of nuclear systems [that] support deterrence and the accompanying weapons complex is of timely relevance to the evolving policies in these areas," Hecker wrote. "Of particular interest is your evaluation of the elements of agility and confidence of the weapons complex and nuclear stockpile that will facilitate further reductions in nuclear weapons, and what effect these may have on international arms control initiatives."

The new Perry Fellowship honors an early or mid-career researcher from the United States or abroad with a record of "outstanding work in natural science, engineering or mathematics...who is dedicated to solving international security problems." Martz, 44, will spend a year at CISAC conducting research on how the United States might be able to reduce the size of its nuclear arsenal by configuring the nation's weapons stockpile more securely and strategically.

"I am honored to serve as the first Perry Fellow, in particular to salute Dr. Perry's extraordinary career and dedication to making the world a safer place," Martz said.

The scientist said his work dovetails with Perry's efforts to reduce and eliminate nuclear weapons around the globe. Perry, alongside former secretaries of state George Shultz and Henry Kissinger, former U.S. Sen. Sam Nunn and Stanford physicist Sidney Drell have joined together to promote this far-reaching objective, which President Barack Obama and the U.N. Security Council endorsed in a unanimous vote last month. "Dr. Perry's focus is a world with fewer weapons," Martz said. "My goal is to find a roadmap to that world."

At LANL, Martz led projects related to nuclear weapons design and maintenance, plutonium storage and disposal, stockpile life extension and plutonium aging, nuclear operations and nuclear systems analysis. He also directed New Mexico's team in the 2005-2007 nationwide Reliable Replacement Warhead (RRW) design competition sponsored by the federal government.

Martz said he was first drawn to nuclear issues during his senior year of high school. He grew up in Los Alamos -- his father worked at the lab. In 1983, Martz and a group of science-minded students were invited to join a gathering marking the lab's 40th anniversary. For three days, renowned scientists from the Manhattan Project, which developed the atomic bomb, returned to Los Alamos. Martz said one of them, Nobel-winning physicist Hans Bethe, told the students about his generation's atomic legacy and that it was up to Martz's generation to find a way out of what he characterized as the nuclear trap.

Today, Martz is interested in what he calls "capability-based deterrence." As he explained in the March 2008 issue of Currents, LANL's employee magazine: "If we are extremely competent and demonstrate the capability to reconstitute nuclear weapons -- convincing both allies and adversaries that the capability is assured and agile -- that capability in and of itself becomes a component of deterrence. It's a compelling idea. Our security rests not so much on the products of our work, but on our work itself." Martz, who has worked at LANL for 26 years, plans to pursue and refine this argument at CISAC and produce a manuscript during his year in residence. Martz holds a doctorate in chemical engineering from the University of California-Berkeley.

William J. Perry and the Perry Fellowship
Perry earned bachelor's and master's degrees in mathematics from Stanford in 1949 and 1950, and a doctorate from Pennsylvania State University. He went on to found the Silicon Valley electronics company ESL, build a venture capital company and pursue a distinguished career in public service. At the heart of Perry's work is a commitment to bring the rigors of science to international security issues. The William J. Perry Fellow in International Security at Stanford University will pursue this commitment.

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Abstract: This talk discusses the evolution of nuclear deterrence in the post-Cold War and Post-911 environment.  An examination of the historic role of deterrence and past trends in stockpile composition are discussed, and the concept of a capability-based deterrent and the implications for stockpile size, the nuclear weapons complex, and science are examined.  The role of both complex- and stockpile-transformation in enabling a capability-based deterrent is evaluated

Dr. Martz has been with Los Alamos National Laboratory for 25 years.  He is an authority on plutonium chemistry and metallurgy, and has lead various elements of the nuclear weapons program at Los Alamos including the group responsible for pit activities, the program examining materials aging in the stockpile, leadership of the weapon design division, and most recently, was head of the New Mexico team in the recent Reliable Replacement Warhead Design study.

If you would like to be added to the email announcement list, please visit https://mailman.stanford.edu/mailman/listinfo/stsseminar 

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Joseph Martz Senior Staff, Principal Associate Directorate for Nuclear Weapons Speaker
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Rose McDermott is a Professor of Political Science at Brown University.  She is currently a fellow at the Center for Advanced Studies in the Behavioral Sciences at Stanford University.  She holds a Ph.D. in Political Science and an M.A. in Experimental Social Psychology, both from Stanford University. She held a National Institute on Drug Abuse Post Doctoral Fellowship in Substance Abuse Treatment Outcome Research at the San Francisco VA through the University of San Francisco Psychiatry Department.  Professor McDermott has also held fellowships at the John M. Olin Institute for Strategic Studies and the Women and Public Policy Program, both at Harvard University. Professor McDermott's main area of research concerns political psychology in international relations. She is the author of Risk Taking in International Relations: Prospect Theory in American Foreign Policy (University of Michigan Press, 1998), Political Psychology in International Relations (University of Michigan Press, 2004), and Presidential Illness, Leadership and Decision Making (Cambridge University Press, 2007). She is co-editor of Measuring Identity: A Guide for Social Science Research, with Rawi Abdelal, Yoshiko Herrera, and Alastair Iain Johnson (Cambridge University Press, forthcoming).

She has written numerous articles and book chapters on experimentation, the impact of emotion on decision making, social identity, and evolutionary and neuroscientific models of political science.  She is currently involved in a series of projects investigating the endogenous sources of aggression, and a book project on pandemic disease.

Herbert Abrams is a professor of radiology, emeritus, at the Stanford School of Medicine and a member-in-residence at CISAC, where he directs the Project on Disabled Leadership. He was Professor and Director of Diagnostic Radiology at Stanford from 1960 to 1967, and was then appointed and served as Philip H. Cook Professor and Chairman of Radiology at Harvard University from 1967 to 1985. He returned to Stanford in 1985 as Professor of Radiology in order to spend most of his time in research in CISAC. Dr. Abrams' present focus is on presidential disability and its potential impact on decision making.

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Rose McDermott Visiting Fellow, Center for Advanced Study in the Behavioral Sciences, Stanford University; Professor of Political Science, University of California, Santa Barbara Speaker
Herbert Abrams Professor of Radiology, Emeritus and CISAC Member-in-Residence Commentator
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