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Advance Reading Recommended: 

Speakers will not give prepared remarks.

They ask that attendees read the Q&A with Siegfried Hecker and David Straub on the recent agreement.

Additional reading materials are linked at the end of this event announcement. 

About the event: The speakers will take questions regarding the February 29 agreement between the United States and North Korea that provided for the delivery of U.S. food aid, a moratorium on North Korean nuclear and missile tests, and the entrance of international inspectors into facilities at Yongbyon.


About the speakers:

Siegfried S. Hecker is co-director of the Stanford University Center for International Security and Cooperation, Senior Fellow of the Freeman Spogli Institute for International Studies, and Professor (Research) in the Department of Management Science and Engineering. He is also director emeritus at the Los Alamos National Laboratory, where he served as director from 1986-1997 and senior fellow until July 2005. He received his B.S., M.S., and PhD degrees in metallurgy from Case Western Reserve University. His current professional interests include plutonium research, cooperative nuclear threat reduction with the Russian nuclear complex, and global nonproliferation and counter terrorism. He is a fellow of numerous professional societies and received the Presidential Enrico Fermi Award.

John Lewis is the William Haas Professor of Chinese Politics, emeritus, and an FSI senior fellow by courtesy. He is an expert on Chinese politics, U.S.-China relations, China's nuclear weapons program, U.S. policy toward Korea and health security issues in northeast Asia. He founded and directed the Center for East Asian Studies, in 1969-1970; the Center for International Security and Arms Control (now the Center for International Security and Cooperation, or CISAC) from 1983 to 1991; and the Northeast Asia-United States Forum on International Policy (now APARC), from 1983 to 1990. He currently directs CISAC's Project on Peace and Cooperation in the Asian-Pacific Region.

David Straub was named associate director of the Korean Studies Program (KSP) at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) on July 1, 2008. Prior to that he was a 2007–08 Pantech Fellow at the Center. Straub is currently writing a book on recent U.S.-South Korean relations. He is also a member of the New Beginnings policy research group on U.S.-South Korean relations, which is co-sponsored by Shorenstein APARC and the New York-based Korea Society. An educator and commentator on current Northeast Asian affairs, Straub retired in 2006 from his role as a U.S. Department of State senior foreign service officer after a 30-year career focused on Northeast Asian affairs. He worked over 12 years on Korean affairs, first arriving in Seoul in 1979.

Note: This event will follow a shortened science seminar by Dr. Len Weiss titled "The Mysterious Flash of 9/22/1979: The Case for an Israeli Nuclear Test"

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Siegfried S. Hecker is a professor emeritus (research) in the Department of Management Science and Engineering and a senior fellow emeritus at the Freeman Spogli Institute for International Studies (FSI). He was co-director of CISAC from 2007-2012. From 1986 to 1997, Dr. Hecker served as the fifth Director of the Los Alamos National Laboratory. Dr. Hecker is an internationally recognized expert in plutonium science, global threat reduction, and nuclear security.

Dr. Hecker’s current research interests include nuclear nonproliferation and arms control, nuclear weapons policy, nuclear security, the safe and secure expansion of nuclear energy, and plutonium science. At the end of the Cold War, he has fostered cooperation with the Russian nuclear laboratories to secure and safeguard the vast stockpile of ex-Soviet fissile materials. In June 2016, the Los Alamos Historical Society published two volumes edited by Dr. Hecker. The works, titled Doomed to Cooperate, document the history of Russian-U.S. laboratory-to-laboratory cooperation since 1992.

Dr. Hecker’s research projects at CISAC focus on cooperation with young and senior nuclear professionals in Russia and China to reduce the risks of nuclear proliferation and nuclear terrorism worldwide, to avoid a return to a nuclear arms race, and to promote the safe and secure global expansion of nuclear power. He also continues to assess the technical and political challenges of nuclear North Korea and the nuclear aspirations of Iran.

Dr. Hecker joined Los Alamos National Laboratory as graduate research assistant and postdoctoral fellow before returning as technical staff member following a tenure at General Motors Research. He led the laboratory's Materials Science and Technology Division and Center for Materials Science before serving as laboratory director from 1986 through 1997, and senior fellow until July 2005.

Among his professional distinctions, Dr. Hecker is a member of the National Academy of Engineering; foreign member of the Russian Academy of Sciences; fellow of the TMS, or Minerals, Metallurgy and Materials Society; fellow of the American Society for Metals; fellow of the American Physical Society, honorary member of the American Ceramics Society; and fellow of the American Academy of Arts and Sciences.

His achievements have been recognized with the Presidential Enrico Fermi Award, the 2020 Building Bridges Award from the Pacific Century Institute, the 2018 National Engineering Award from the American Association of Engineering Societies, the 2017 American Nuclear Society Eisenhower Medal, the American Physical Society’s Leo Szilard Prize, the American Nuclear Society's Seaborg Medal, the Department of Energy's E.O. Lawrence Award, the Los Alamos National Laboratory Medal, among other awards including the Alumni Association Gold Medal and the Undergraduate Distinguished Alumni Award from Case Western Reserve University, where he earned his bachelor's, master's, and doctoral degrees in metallurgy.

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Siegfried S. Hecker Co-Director Speaker Center for International Security and Cooperation (CISAC)
John W. Lewis William Haas Professor of Chinese Politics (Emeritus) and Senior Fellow, Freeman Spogli Institute (FSI) Speaker
David Straub Associate Director, Korean Studies Program, Shorenstein Asia Pacific Research Center (APARC) Speaker
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North Korea’s agreement to curb its nuclear and weapons programs is welcome diplomatic news. But it stops far short of addressing the world’s concerns about the isolated and unstable dictatorship.

Stanford experts David Straub and Siegfried S. Hecker discuss Pyongyang’s deal with Washington that will allow nuclear inspectors into North Korea and deliver much-needed nutritional assistance to the impoverished country.

Straub is the associate director of the Korean Studies Program at the Freeman Spogli Institute for International Studies. He is a former State Department senior foreign service officer who worked for more than 12 years on Korean affairs. He travelled to North Korea in 2009 with former President Bill Clinton as part of a delegation to secure the release of two journalists from Current TV.

Hecker is co-director of the Center for International Security and Cooperation and a senior fellow at FSI. Hecker has visited North Korea four times since 2004. During his last trip in 2010, he was shown a new light-water reactor at the Yongbyon nuclear center and a uranium enrichment facility.

What are some of the key factors that led North Korea to agree to this deal?

Straub: This year marks the 100th anniversary of North Korean founder Kim Il Sung’s birth, which the entire country will be celebrating April 15. The government has also said that this is the target year for North Korea to become a “strong and prosperous country.” Kim Jong Un is a brand-new leader, and presumably he and his advisors want to show that he is capable of feeding his people and at least managing the relationship with the United States.

How do you assess the agreement? Where does the moratorium put relations between the U.S. and North Korea?

Hecker: The moratorium demonstrates that North Korea is once again interested in diplomacy with the United States. The fact that they are willing to halt the nuclear operations at Yongbyon, especially the uranium enrichment activities, is a big step in the right direction. I believe the U.S. now wants to achieve a permanent halt to all nuclear weapons activities in North Korea, then roll them back, and eventually achieve complete, verifiable denuclearization of the Korean Peninsula.

Straub: There is no perfect deal when it comes to North Korea, but overall I think it is worth giving this one a chance. It will probably slow down the pace of nuclear and missile development in North Korea. In addition, it will give us time to explore whether there is any prospect that the new leadership in North Korea may be willing to take a different, more positive approach toward the United States and South Korea than its predecessors.  If history is a guide, the likeliest outcome is that after a period of several months to a few years the six-party talks will again break down, after which North Korea will create a new crisis.

How hopeful are you that this will lead to the capping of North Korea's nuclear capabilities and perhaps even its ultimate denuclearization?

Hecker: My advice to our government since November 2010, when I was shown the Yongbyon centrifuge facility, was to take immediate action so that the nuclear situation does not get worse. I advocated three no’s: no more bombs, no better bombs and no exports. The current agreement will limit the number of bombs because the Yongbyon nuclear facilities will observe a moratorium. We are still not certain of what they can produce at an undisclosed site, but I believe it is limited. The nuclear testing and missile launch moratorium will constrain the sophistication of their nuclear weapons. Denuclearization is important, but it remains a more distant goal.

Why does the United States call this “important, but limited progress”?

Straub: It is significant, in part, because since North Korea threw out international nuclear inspectors in 2009 there has been no outside monitoring of what is going on at the Yongbyon facility. But most of the things North Korea has agreed to could be reversed at will. Apart from the nuclear tests, the suspension of North Korean nuclear activities applies only to Yongbyon. Dr. Hecker and other experts have concluded there is no way North Korea could have constructed its uranium enrichment facility at Yongbyon so soon after the departure of international inspectors if had not already had another facility elsewhere. The agreement also does not address a number of non-nuclear issues, such as North Korea’s military attacks on South Korea in 2010. For there eventually to be lasting progress on the Korean Peninsula—including a resolution of the nuclear issue—there will have to be great improvement in relations between North and South Korea.

Based on what your 2010 visit to the Yongbyon nuclear facility, how much progress could they have made in terms of uranium enrichment?

Hecker: They told me they just brought up the centrifuge facility a week before we arrived in November 2010. They may have perfected the operations and produced some low enriched uranium feed material for the light-water reactor they are constructing (which is still at least a couple of years away from completion). It is also possible that they are still struggling to make the centrifuge facility work smoothly. It is very important to have the International Atomic Energy Agency inspectors get into the facility to see what progress has been made and to get a measure of how sophisticated their operations are. The North, in my opinion, still has only four to eight primitive plutonium bombs. I don’t believe they have the confidence to put a warhead small enough to fit on one of their missiles. We have little information on whether they have made highly enriched uranium or have tried to build a bomb fueled with highly enriched uranium.

What does this agreement say, if anything, about the new North Korean leadership?

Hecker: From what I know, this was pretty much the deal worked out the week before Kim Jong Il’s death. I think it’s a good sign; Kim Jong Un appears to be in control as indicated by the fact that he is able to offer up a similar deal even with his father gone.

Straub: This deal suggests that there is a great deal of continuity in North Korea’s leadership. The substance of this agreement is actually quite consistent with North Korean policies and priorities over the last 20 years. While there is no evidence to suggest that Kim Jong Un will adopt major new policies, there is always at least the possibility he might eventually.

The deal includes the provision of 240,000 metric tons of “nutritional assistance” to North Korea. What does the country’s food situation look like right now?

Straub: There is no doubt that many ordinary North Koreans are going hungry. The United States has termed this “nutritional assistance” to distinguish it from “food aid,” because officials are concerned that the provisions of bulk grain – especially rice – might be siphoned off by the North Korean elite. The U.S. government had said earlier that nutritional assistance would not involve bulk grain, and that it would be targeted toward especially vulnerable groups, such as lactating mothers, children, and the elderly.

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Chinese Vice President Xi Jinping recently visited the United States to meet with top officials and tour various cities. China experts followed the trip closely because Xi is anticipated to become China’s next president. Thomas Fingar spoke with the Shanghai Oriental Morning Post about the visit, and about the Obama administration’s Asia policy.

How will the Obama administration’s strategic adjustments towards the Asia-Pacific shape or influence Xi’s visit? Given the fast-changing environment and shift of power towards Asia, will there be any changes or differences in the United States’s treatment of China’s anticipated future leader?

The primary impact is likely to be on the discussions between Xi and his American interlocutors. I assume that U.S. officials will want to explain the announced strategic adjustments and that Xi will seek authoritative answers to questions that he and other Chinese leaders have about the objectives and implications of the adjustments.

Contrary to your question, I do not believe the environment is changing rapidly—shifts in the global system and the shift in dynamism and wealth toward Asia have been under way for decades. The United States has been and will remain a part of that transition. The U.S. goal is to ensure that the changes result in increased security and prosperity for all—a win-win situation not unlike what happened when first Japan and then the other “Asian tigers” preceded China on the path toward greater wealth and power. 

What interests Washington most about Vice President Xi? What expectations does the United States have for his visit?

Washington expects Xi to succeed Hu Jintao and understands that he will be first among equals in a collective leadership that constrains Xi’s ability to act independently. But U.S. officials also understand that Xi, like all leaders, brings personal preferences and agendas to the job and that dealing with him will be influenced by his personality, understanding of American culture, and goals for the relationship. Simply stated, the Americans Xi meets will want to get to know him and what he is like.

U.S. officials understand that he is here as China’s vice president and therefore is unlikely to be bringing new initiatives. They do expect him to have questions about U.S. and Obama administration positions on a wide range of global issues and to have questions about U.S. intentions in Asia.

Is the U.S. “pivot to Asia” strategy aimed at containing or encircling China? Almost all U.S. official statements try to clarify that the United States is not trying to contain China, but its policy focus and military deployments in the Asia-Pacific have made many Chinese scholars doubtful of U.S. intentions. What are your observations? Is U.S. rhetoric consistent with its actions?

I do not like the term “pivot to Asia” and am pleased that U.S. officials seem to have stopped using that term. The United States is not returning to Asia; we never left. I think the basic point of recent statements is that with the end of the U.S. role in the conflict in Iraq and plans to draw down in Afghanistan, the United States will be able to focus more attention on other parts of the world. Asia is, and has been, the most dynamic, fastest changing, and in many ways most-challenging region of the world for many years. The region is also very important to the United States and deserves more attention than it has received. The Asia-Pacific is a region of superlatives—biggest economies, largest militaries, most nuclear powers, largest military budgets, largest foreign exchange reserves, etc. It would be unwise and impossible not to pay attention to developments in and affecting the region and its relations with other parts of the global system.

I have been working on China for more than 45 years and working with Chinese counterparts for 40 years. I must say that I have just about abandoned efforts to persuade important groups in China that the United States is not attempting to surround, contain, or thwart China’s rise. They seem determined to believe that it is the case no matter what we say or do. It is impossible for me to look at the policies and actions of the last eight administrations and come to any conclusion except that the United States means what its leaders have said: that it is in the interest of the United States for China to be strong, secure, and prosperous. The record shows quite clearly that the United States has assisted China’s rise. It also shows that China’s rise has been beneficial to the United States. We are not poorer or weaker or more insecure because China’s people live better and China plays an increasingly important role on the world stage. 

Do you think the Obama administration has changed the direction of U.S. strategy toward China or Asia compared with the Bush administration?

The short answer is, “no. ” The Bush administration was preoccupied by terrorism, Iraq, and Afghanistan and devoted less time and attention to Asia. Obama is redressing the balance and better aligning attention with current interests. Arguably what has changed is the perception of China held by others in the region. A series of foreign policy blunders in 2010 undercut the success of China’s diplomacy and increased regional concern about China’s intentions. That prompted requests for reassurance that the United States would remain engaged in the region and that the Bush administration’s “neglect” of certain regional meetings was not a harbinger of a retreat from Asia. The Obama administration seeks to provide that assurance and to make clear that we are engaged in Asia because we are a Pacific power with great interests in the region. We are not there to contain or block anybody.

The United States is struggling with its economy and also cutting its defense budget. Do you think this strategy comes at the right time?

Downturns in the economy never come at a good time. The great recession has taken a heavy toll but we are recovering and will recover. We have been spending too much for too long and need to cut back. In my opinion, we also need to tax ourselves more to pay for modernization of infrastructure, better schools, and other requisites of continued prosperity. We are winding down two long and expensive wars and should reduce our defense budget. It will take time to replace worn out equipment and to reduce the large role that defense expenditures played in the U.S. economy during the Cold War, but we will get there eventually. More importantly, now is a good time to reduce defense expenditures and reorganize our military because we do not have any enemies and are not bent on conquering other nations.

Is the “pivot to Asia” strategy concrete or more of a “paper tiger” given the fact that other challenges, including Iran, are still occupying the United States?

As previously noted, the term “pivot to Asia” exaggerates the amount of change. The United States never left or lost interest in Asia, but is now able to devote more attention to the most dynamic, and in some respects most dangerous place in the world. Building a new security architecture that is inclusive—including China—and addresses concerns in and about North Korea is and should be a priority. Forging institutions to ensure continued stability and prosperity in the region despite paralysis at the global level and adjusting to changes in production and supply chains are among the long list of specific issues that need attention. The United States has a stake in the way these issues are addressed and must be engaged in the search for solutions.

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U.S. Vice President Joe Biden and Chinese Vice President Xi Jinping greet high school basketball players in Dujiangyan, China, Aug. 2011.
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For a copy of the original article in Japanese, please contact Toshihiro Higuchi at th233@stanford.edu.

At the end of last year, the expert panel established by the Cabinet Office submitted a report on the effects of low-level and chronic radiation exposure. It is a Herculean task to tackle the difficulty challenge of risk management within such a short period. Risk management regarding the type of radiation exposure at issue, however, is not a matter of pure science to be left solely with scientific experts. It is essential for each of us to judge the degree of its danger and work out social consensus as to solutions.

Our past experience offers a lesson worth noting. In March 1954, the U.S. hydrogen bomb test showered an enormous amount of deadly fallout on a Japanese tuna fishing boat. The specter of “radioactive tuna” terrified consumers, and reports of cesium and strontium in brown rice and vegetables continued. As public opinion against nuclear tests was boiling, the U.S. government claimed that health damage from them was negligible and asked the scientific committee established by the United Nations to investigate this problem.

Accurate estimates of the health damage caused by low-level radiation exposure, however, proved extremely difficult. A fierce debate inevitably broke out over the validity of the findings, and people began to feel even more insecure. The claim that the damage from pollution was small also turned out to be relative in comparison to the security value of nuclear weapons, the scale of X-rays, natural background and other radiation hazards, and such commonly accepted dangers as smoking cigarettes or driving a car. In reality, however, the world was deeply divided over the merits of nuclear armaments. Moreover, the essential character of fallout hazards differed from our everyday risks in that we could neither avoid the danger of fallout nor expect due compensation for it. As a result, all prerequisites for comparative analysis quickly eroded in the case of radioactive contamination. In August 1958, the United Nations Scientific Committee reported its conclusion that there was no reason to tolerate the risks of radioactive fallout from nuclear tests. In the end, the U.S. government’s claim lost its ground.

Our society has a wide diversity of values. It is simply impossible to seek a universal answer as to how much radiation dose is acceptable to all stakeholders. Even if those in charge of risk management unilaterally determine the “acceptable” dose, it will be meaningless unless people at risk accept such decision. It will rather saw a seed of distrust and make risk management even more difficult.

Our next task is to listen to the voices of people at risk through regular field visits and social media such as Internet, and to explore a point of social consensus as to the risks associated with nuclear power. 

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For the past two decades China has been a poster child of successful globalization. But its integration into the world economy and global trends drive and constrain Beijing's ability to manage growing social, economic and political challenges. In a YaleGlobal Online series article, Thomas Fingar looks at the global implications of China’s development challenges.
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Matthew Kroenig's argument for preventive military action to combat Tehran's nuclear program -- "Time to Attack Iran" (January/February 2012) -- suffers from three problems. First, its view of Iranian leaders' risk calculations is self-contradictory. Second, it misreads nuclear history. And third, it underestimates the United States' ability to contain a nuclear Iran. When these problems are addressed, it is clear that, contrary to what Kroenig contends, attacking Iran is not "the least bad option." 

Kroenig's view of the way Iranian leaders are willing to take on risks is deeply incongruous. In his view, a nuclear bomb will push Tehran to block U.S. initiatives in the Middle East, unleash conventional and terrorist aggression on U.S. forces and allies, and possibly engage in a nuclear exchange with Israel. This would mean Iranian leaders are reckless: given the United States' conventional and nuclear superiority, any of these actions would provoke considerable retaliation from Washington. And, of course, a nuclear exchange with Israel would invite annihilation. At the same time, Kroenig suggests that Tehran would remain remarkably timid after a preventive strike from the United States. Presented with clear redlines, Iran would not retaliate against U.S. troops and allies or attempt to close the Strait of Hormuz. Kroenig's inconsistency is clear: If Iranian leaders are as reckless as he seems to believe, a preventive strike would likely escalate to a full-blown war. If they are not, then there is no reason to think that a nuclear Iran would be uncontainable. In short, a preventive attack on Iran can hardly be both limited and necessary.

Kroenig's argument misreads nuclear history at least three times. First, he writes that a targeted preventive strike would likely wipe out the nuclear program in Iran, as strikes against Iraq in 1981 and Syria in 2007 did in those countries. These comparisons are misleading. Recent research based on captured Iraqi documents demonstrates that the 1981 Israeli attack on the Osirak reactor, near Baghdad, actually spurred a covert nuclear weapons program at other sites. Indeed, Iraqi President Saddam Hussein remained determined to revive his nuclear program until he was removed from power in 2003. What prevented him from achieving that goal was the decade-long U.S.-led containment regime put in place after the 1991 Gulf War. The Iraqi case suggests that any attacks that do not depose the Iranian regime, too, would cause it to accelerate its efforts to acquire nuclear weapons. Kroenig's prescription might therefore precipitate the very outcome he is trying to avoid. 

As for Syria, Damascus' nuclear program was just budding. The country boasted only one exploratory facility, which was shattered easily by a single aerial bombing carried out by Israel in September 2007 under the cloak of night. But Iran's nuclear program is much more advanced and is already of industrial proportions. Any attack on Tehran would involve destroying numerous nuclear-program and air-defense targets, making it far more costly and less likely to succeed than the Israeli raid against Syria's Deir ez-Zor reactor. More, Iran's advanced program reflects Tehran's greater resolve to develop nuclear capabilities, so, post-attack, Tehran would be ever more likely to double down on developing a weapon. Furthermore, although Kroenig hopes that a targeted strike would destabilize the Iranian regime, there is no basis for such optimism. Being a civilian, parliamentary, oil-rich theocracy, Iran is relatively stable. Put simply, a preventive strike against Iran can hardly be both limited and effective.

Kroenig misreads history again when he considers a nuclear exchange between Iran and Israel. In his view, they "lack nearly all the safeguards that helped the United States and the Soviet Union avoid a nuclear exchange during the Cold War." Yet the United States and the Soviet Union avoided a nuclear exchange even during the hottest crisis of the Cold War, the Cuban Missile Crisis, at a moment in which Soviet retaliatory capability was still uncertain, there were no clear direct communication channels between the two leaderships, and Soviet experience managing their nuclear arsenal was no longer than five years. Moreover, the historical record shows that even young and unstable nuclear powers have avoided nuclear escalation despite acute crises. Pakistan and India avoided nuclear war in Kargil in 1999, as well as after the terrorist attacks targeting the Indian parliament in 2001 and Mumbai in 2008. When national survival is at stake, even opaque and supposedly "irrational" regimes with nuclear weapons have historically behaved in prudent ways.

Kroenig's final abuse of history comes when he posits a cascade of nuclear proliferation across the Middle East in response to an Iranian bomb. He mentions Saudi Arabia, and implies that Egypt, Iraq, and Turkey might all follow suit. Yet none of these states, which can count on U.S. support against Iran, nuclearized in response to Israel's nuclearization (against which they cannot count on U.S. backing, mind you). And more generally, the United States has a successful record of preventing clients from acquiring nuclear weapons in response to a regional enemy, such as South Korea and Japan in response to North Korean nuclear acquisition. (Washington agreed with Pakistani nuclearization in response to India.) 

Taking the long view, Kroenig's argument reveals an unwarranted skepticism about Washington's ability to contain a nuclear Iran. This skepticism is all the more surprising considering Kroenig's work on the benefits of U.S. nuclear superiority. Existing U.S. security guarantees, based on current capabilities, give allies little incentive to nuclearize. Egypt and Saudi Arabia are among the largest recipients of U.S. military support, and Turkey is a member of NATO. Reinforcing U.S. ties with friends in the region would be easier, cheaper, and less risky than attacking the Iranian nuclear program. 

Instead, the United States should heed the lessons of the North Korean nuclearization. Not so long ago, Washington had to face an aggressive regime in Pyongyang intent on developing nuclear weapons. The United States rejected a preventive strike in 1994 for fear that the outcome would be worse than its target's nuclear acquisition. This was the right decision. After North Korea acquired nuclear weapons, none of the consequences that Kroenig's argument would predict materialized. U.S. security guarantees contained Pyongyang and persuaded South Korea and Japan not to acquire nuclear weapons. Nobody believes that the world is better off with a bomb in North Korea -- but the record shows that it hasn't brought the end of the world, either.

Military action against Iran would be a profound strategic miscalculation. For all the talk of retrenchment, the U.S. military might remains the most powerful in the world, and it can successfully minimize consequences of an Iranian bomb, should one come to pass, by containing Tehran's ambitions, dissuading regional proliferation, and providing security assurances to its allies.

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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
Authors
Thomas Fingar
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