Economic Affairs
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Synopsis:

Robin Niblett, Director of Chatham House, delivered the following talk in The Europe Center series “The European and Global Economic Crisis”.

With measured optimism about the prospect for a way out of the current Eurozone crisis, Dr. Niblett argues that the introduction of the common Euro, seen by many in past years as a vanguard tool for European integration, is now potentially a functional wedge between ‘debtor’ and strongly capitalized nations.  

Dr. Niblett, arriving directly from participating in the World Economic Forum in Dubai, and based on Chatham House research, described the “perfect storm” of the past two decades of credit-driven growth, divergence within the EU, rising debt-to GDP ratios of member nations especially in the cases of Italy and Greece.  His analysis combines these economic details with the following:

  • Demographics – high levels of unassimilated immigrants
  • European welfare economies still distributing resources at twentieth-century levels now in the twenty-first century
  • The rise of anti-immigrant and anti-free-trade populist parties
  • The weakening of Europe’s center parties
  • The “Russification” of Europe’s East – especially in recent events in Ukraine
  • The stalled integration of Turkey into the EU

The totality of the above paints a grim portrait of Europe under the weight of nearly impossible conditions.   And yet, Dr. Niblett underlines evidence for measured optimism:

  • Ireland is making strides to reform its economy
  • Ireland’s educated and yet unemployed workforce does have the possibility to immigrate to Europe
  • The UK is finally rebalancing its state budget and market liberalization
  • France is facing, albeit with massive labor protest, its state budget levels
  • Spain will likely turn over its government in the face of its massive youth protest
  • Italy is evaluating in its political process a series of budget reforms

These are the structural side of what Dr. Niblett sees as Europe’s tools for recovery.

On the side of European practice, the Franco-German proposals for European Central Bank “bailout funds” include new rules for transparency of internal government operations. This promises innovation to make the EU into an area of political and financial transparency, and to enable the EU to engage in direct investment, as evidence is beginning to show, in the world’s emerging economies.  In this sense, Dr. Niblett sees for Europe a competitive edge over the US in engaging in world markets.

Perhaps most sanguine of Dr. Niblett’s analysis is his reading of the Eurozone crisis as a force to push the member nations of Europe further towards supra-national economic strategies.  In order to participate in the investment in emerging markets, the Benelux countries, not to mention France, Germany, and neighboring European states, are responding to the crisis by considering policy that promotes investment and outsourcing for service-sector employment, instead of export commodities which have been undercut in recent years.

There is a risk, in Dr. Niblett’s view, that Europe will respond to the Eurozone crisis by fracturing into rival “clubs” of small and large or debt-restructuring and creditor nation-states.  But the European nations, especially those currently participating in the Eurozone, have untapped capacities for growth:

  • Educated youth
  • Underemployed female laborers
  • Outstanding higher educational institutions
  • Pent-up small- and medium-enterprise markets
  • Potential for growth in the service sector labor market
  • Room for more tightly integrating and rationalizing the region’s energy market.

Those interested in further detail and analysis are invited to visit the work and productivity at:

The Europe Center, at Stanford’s Freeman Spogli Institute for International Studies: http://tec.fsi.stanford.edu

Chatham House, at the Royal Institute for International Studies: http://www.chathamhouse.org/

 

Speaker bio:

Robin Niblett became the Director of Chatham House (the Royal Institute of International
Affairs) in January 2007. Before joining Chatham House, from 2001 to 2006, Dr. Niblett
was the Executive Vice President and Chief Operating Officer of Washington based
Center for Strategic & International Studies (CSIS). During his last two years at CSIS, he
also served as Director of the CSIS Europe Program and its Initiative for a Renewed
Transatlantic Partnership.

Most recently Dr. Niblett is the author of the Chatham House Report Playing to its
Strengths: Rethinking the UK’s Role in a Changing World (Chatham House, 2010) and
Ready to Lead? Rethinking America’s Role in a Changed World (Chatham House,
2009), and editor and contributing author to America and a Changed World: A Question
of Leadership (Chatham House/Wiley-Blackwell, 2010). He is also the author or
contributor to a number of CSIS reports on transatlantic relations and is contributing
author and co-editor with William Wallace of the book Rethinking European Order
(Palgrave, 2001). Dr Niblett is a frequent panellist at conferences on transatlantic
relations. He has testified on a number of occasions to the House of Commons Defence
Select Committee and Foreign Affairs Committee as well as US Senate and House
Committees on European Affairs.

Dr Niblett is a Non-Executive Director of Fidelity European Values Investment Trust. He
is a Council member of the Overseas Development Institute, a member of the World
Economic Forum’s Global Agenda Council on Global Institutional Governance and the
Chairman of the World Economic Forum's Global Agenda Council on Europe.

He received his BA in Modern Languages and MPhil and DPhil from New College,
Oxford.

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Robin Niblett Director Speaker Chatham House, Royal Institute for International Affairs
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With democratic revolutions spreading throughout the region, and as US, European and NATO forces enter the conflict in Libya, the transatlantic community shares concern over events in the greater Middle East. The Europe Center presents a timely seminar by Ami Ayalon, former director of the Shin Bet and commander of the Israeli Navy, about the interdependence of Israeli security and Palestinian statehood and the urgent necessity of achieving a two-state solution to ensure democratic self-determination for both peoples.

Ami Ayalon is a former Member of the Israeli Knesset, Commander of the Israeli Navy, and director of the Shin Bet, Israel's internal security service. In 2003, Ayalon launched, together with former PLO representative Sari Nusseibeh, a peace initiative called “The National Census" to collect signatures of millions of Israelis and Palestinians in support of a two-state solution.

About the Speaker

Admiral Ami Ayalon was born in pre-state Israel in 1945, growing up on Kibbutz Maagan. He served in the Israeli Navy for 30 years. During his service he was decorated with the Medal of Valor, Israel's highest award and the Medal of Honor for carrying out a long list of operations without casualties as the commander of the elite Shayetet 13 Naval commando unit. From 1992-1996 he served as Chief of the Israeli Navy.

Upon retiring from the Navy, Admiral Ayalon was appointed director of the Shin Bet (Israel’s General Security Service). He is credited with rehabilitating the service, which had been hard-hit by its failure to prevent the assassination of Prime Minister Yitzhak Rabin.

In 2003, Admiral Ayalon founded the People’s Voice, a grassroots movement that, together with Palestinian professor Sari Nusseibeh, formulated a set of principles for a permanent agreement between Israel and the Palestinians. To date, over 400,000 people from both sides have signed the Ayalon-Nusseibeh Statement of Principles.

In 2005, Admiral Ayalon was elected to a senior Labor Party seat in the Knesset, and served on the several committees, including as Chair of the Knesset Subcommittee on National Emergency Readiness. In 2007, Admiral Ayalon joined Prime Minister Ehud Olmert's cabinet where he served until 2009.

Having formally retired from politics, Admiral Ayalon serves as Chairman of the Executive Committee of Haifa University, leading research on terror, ethics and international law. He is chair of AKIM, a charity for people with intellectual disabilities. He holds two degrees from Bar-Ilan University: a BA in Economics and Political Science and an MA in law, in addition to an MA in Public Administration from Harvard University. He is a graduate of the Naval War College in Newport Rhode Island.

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Ami Ayalon Speaker
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The countries sandwiched between Russia and the European Union are not fully independent actors in regional and international politics: they cannot join the EU or NATO and do not wish to form a community dominated by Russia. Most of of these ‘in-between state’ are caught in a political impasse and security deadlock. This lecture will consider the argument that partnership between Russia and Europe will remain strained as long as the status quo for these states persists.

Marie Mendras is Professor at Sciences Po University and Research Fellow with the Centre National de la Recherche Scientifique. She runs the Observatoire de la Russie, a study group and workshop a at the Centre d’Etudes et de Recherches Internationales in Paris.

In 2008-2010, Marie Mendras was Professor in the Government Department of the London School of Economics and Political Science. Along with her academic work, she worked as a consultant for the Policy Planning Staff of the Foreign Ministry (1983-1991) and for the Directorate for Strategic Affairs of the Ministry of Defence (1992-1998).

Her publications deal with Russian political developments and foreign policy. She is on the editorial board of the journals Esprit and Pro et Contra and is the author of Russie. L’envers du pouvoir (Odile Jacob, 2008) to be published in English in June 2011 (Hurst, London, and Columbia University Press, New York).

Co-sponsored by the Center for Russian, East European, and Eurasian Studies.

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Marie Mendras Professor, Sciences Po University; Research Fellow, Centre National de la Recherche Scientifique Speaker
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For over 2,000 years, banks have served to facilitate the exchange of money and to provide a variety of economic and financial services. During the most recent financial collapse and subsequent recession, beginning in 2008, banks have been vilified as perpetrators of the crisis, the public distrust compounded by massive public bailouts. Nevertheless, another form of banking has also emerged, with a focus on promoting economic sustainability, investing in community, providing opportunity for the disadvantaged, and supporting social, environmental, and ethical agendas. Social Banking and Social Finance traces the emergence of the “bank with a conscience” and proposes a new approach to banking in the wake of the economic crisis. Featuring innovations and initiatives in banking from Europe, Canada, and the United States, Roland Benedikter presents an alternative to traditional banking practices that are focused exclusively on profit maximization. He argues that social banking is not about changing the system, but about improving some of its core features by putting into use the "triple bottom line" principle of profit-people-planet. Important lessons can be learned by the success of social banks that may be useful for the greater task of improving the global financial system and avoiding economic crises in the future.

 

 

Critical Acclaim for This Publication

 “This volume provides a description of social banking and social finance, their background in the history of ideas and their importance within the current globalized economy. It is not only an excellent didactical introduction, but also an entertaining and at the same time scientifically sound and differentiated explanation, which to my knowledge is so far unparalleled in English-speaking academia. I believe that the insights of this volume can have a progressive impact on the thinking about money and finance of the new generations, as well as the broader public in theUnited States and inEurope. I therefore consider this volume to be one step (among the many necessary) toward a realistic and sober rethinking of capitalism. Even if it is just a brief text and thus a small step, it is an important one. Because, as German philosopher Friedrich Nietzsche said, every long voyage starts with a brief first step. And this step, as compressed, simple and surprising as it may sometimes seem, may prove to be inspiring for those which come afterwards. I think that Benedikter’s volume is a valid response to the profound challenges arisen with the economic and financial crisis of 2007–2010. The solutions and perspectives it proposes are useful tools to help us to avoid further crises.”

-Professor Dr. Hans Christoph Binswanger, Chair Emeritus of National Economics, University St. Gallen, Switzerland, and former director of the Swiss Research Association on National Economics, Zürich 

 

“The recent crisis has shown that the time for more differentiated and just approaches to money and finance is ripe. I hope that with this outstanding didactical introduction oriented not primarily toward specialists, but to students and teachers, as well as to the broad public, the discussion about how we can move forward in making better use of money and finance will gain further momentum. This volume is an important contribution to broadening the financial literacy of our time.”

-Professor Dr. Udo Reifner, Department for Economics and Social Science, Hamburg University

 

“This is a clear and intense text. It has the advantage of summoning up some of the most important questions of current economics and finance in a short, easily  understandable and well-structured way. The reader is on the one hand provided insight into the main issues of today’s debate about the future of capitalism. On the other hand, she and he are informed about the ongoing (r)evolution in the banking and finance sector. The present change goes beyond the traditional reductionisms of the mainstream banking and finance sector. It starts to demonstrate how the creation of economic value on the one hand and a sustainable social and environmental development on the other hand can be integrated into one and the same approach. The international educational sector has to be grateful for this volume.”

-Professor Dr. Leonardo Becchetti, Department of Economics, Università Roma II “Tor Vergata, ”Italy 

 

“One of the first soundly scientific publications of its kind in English, this volume provides a complete overview over the contemporary field of social banking and social finance. Written in a short and easily understandable manner, it explains the history, the philosophy, the current state, and the perspectives of social banking and social finance in theUnited Statesand inEurope. This volume is an indispensable first entry for everybody who wants to know how we can deal with money in a better, sustainable way.” 

-Professor Dr. Ernst Ulrich von Weizsäcker, dean emeritus, Bren School of Environmental Science and Management, University of California at Santa Barbara, former policy director of the United Nations, Centre for Science and Technology for Development New York City, member of the Club of Rome, ordinary commissioner of the World Commission on the Social Dimensions of Globalization  

 

“Without need of prior knowledge, this volume is the ideal introduction to social banking and social finance for students and teachers. As a result of the economic crisis of 2007–2010, the request for a better handling of money and finance has increased on a global level. Social banking and social finance are answers that while not everybody must agree with them, they are worth to be known by everybody who wants to join the discussion on a well founded basis.”

-Professor Hanns-Fred Rathenow, director of the Institute of Social Sciences and Education in History and Politics, head of the Center for Global Education and International Cooperation, The Technical University of Berlin

 

“Social banking is a field of civil society engagement that has surfaced to international attention during the most recent financial crisis. This volume is an excellent introduction from a contemporary viewpoint. It departs from outlining the main traits of the economic crisis of 2007–2010, but its insights and teachings are not limited to it. This volume uses the crisis just as a starting point to explain how the financial system can move forward toward a more rational constellation of balance and inclusion. It is as unique as it is valuable.”

-Professor Dr. James Giordano, The Oxford Uehiro Centre for Practical Ethics, Oxford University, director of Academic Programs of The Potomac Institute for Policy Studies Arlington, Virginia

 

“I appreciate particularly the interdisciplinary and multilayered approach of this volume. It is one of the first English publications that transcends the limits of reducing social banking and social finance to ‘developmental aid’ for the so-called ‘developing world,’ or to simply identify it with approaches like ‘helping the poor’, like it has been done too often in the past. Instead, as this volume shows, social banking and social finance are more: They are about rationally and soberly innovating the system of capitalism, but without revolutionizing it. That is because social banks consider capitalism as a basic social good of modernity, that in the aftermath of the crisis has to be transformed into a ‘better’ capitalism which serves the greater society instead of benefiting just a few. The whole argumentation of this volume is about creating a broader range of options for the average bank customer in theUnited Statesand Europeand to make the use of capital more ‘humane,’ by serving the specific needs of the ‘real economy’ instead of abstract speculation. This volume, although short and concise, gives a quite realistic picture of the situation and its perspectives. The author finds the right balance between simplification, precision, and vision.”

-Professor Dr. Michael Opielka, Department of Social Welfare and Social Politics, The University of Applied Sciences Jena, Germany

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The session will focus on the social, political and economic changes that have been taking place in Turkey, and its implications for the U.S.-Turkey relations. Panelist will discuss Turkey’s EU process, shift in current Turkish foreign policy, the recent flotilla incident, and increasing trade and investment relations with neighboring countries.

Soli Ozel is Professor of International Relations and Political Science at Istanbul Kadir Has University. He received his M.A. from School of Advanced International Studies at Johns Hopkins University, and Ph.D. in political science from the University of California, Berkeley. Ozel taught at University of California- Santa Cruz, Johns Hopkins University, University of Washington, Hebrew University, and Bogazici University (Istanbul). Ozel's articles and op-eds appear in a wide variety of leading newspapers in Turkey and elsewhere around the world. Currently, he is a columnist for the Turkish Haberturk newspaper and a frequent contributor to The Washington Post. Most recently, he co-authored the report “Rebuilding a Partnership: Turkish-American Relations for a New Era.”
 
Abdullah Akyuz received his M.A. in Economics from the University of California-Davis and graduated from Wharton School's Advanced Management Program. He served as an economist on the Capital Markets Board (the Turkish equivalent of the SEC), Director and later Executive Vice-Chairman at the Istanbul Stock Exchange (ISE), Board Member of the ISE-Settlement and Custody Bank, Inc., and a member of the Turkish Treasury’s Domestic Borrowing Advisory Board. In 1999, Mr. Akyuz joined Turkish Industry and Business Association (TUSIAD) as President of  TUSIAD's Washington Representative Office.

RSVP: http://www.stanford.edu/group/mediterranean/feb_rsvp.fb

Sponsored by the Mediterranean Studies Forum. Co-sponsored by the Europe Center, Center for Russian, East European and Eurasian Studies, and Turkish Student Association at Stanford.

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Soli Ozel Professor of International Relations and Political Science at Istanbul Kadir Has University Speaker
Abdullah Akyuz President, Turkish Industry and Business Association (TUSIAD) Washington Representative Office Speaker
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This article analyzes the role and the status of medicine within the “post-modern” culture(s) of the West. As we know, culture is a major factor that influences the perception, the interpretation, and the expectations toward medicine, medical institutions, medical politics, and the persons involved with them. When culture changes, the social construct called “medicine” changes. Today, the Western condition of “post-modernity” finds itself in a process of rapid change due to the “global systemic shift” that is manifesting since a couple of years within all four main systemic logics and discoursive patterns of Western societies: in culture, religion, politics, and economics. In this situation, the article tries to elaborate on crucial questions about how a contemporary social philosophy of medicine can be delineated within the current “global systemic shift” and what some consequences and perspectives could be. It pleas for an integrative philosophy of medicine which has to strive to re-integrate the “(de) constructivist” patterns of “nominalistic” post-modern thought (dedicated primarily to freedom and equality) with the “idealistic” patterns of “realistic” neo-humanism (dedicated primarily to the “essence” of human dignity and the possibility of intersubjective morality). Only the institution of a balanced “subjective-objective” paradigm can ensure medicine its appropriate place, role, and status within our rapidly changing society.

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The logic of partitioning the land has dominated the various attempts to settle the Israeli-Palestinian conflict. Several developments in the last few years cast serious doubts regarding the feasibility of partition. This talk seeks to critically explore alternatives to partition in the case of the Israeli-Palestinian conflict. More specifically, it seeks to examine feasible, reasonable, and fairly just alternatives to partition that would secure the national and individual rights, interests and identities of Arabs and Jews alike.

Bashir Bashir is a research fellow at The Van Leer Jerusalem Institute and a Civic Education and Leadership Fellow at Maxwell School of Citizenship at Syracuse University. He holds a Ph.D. and Master’s degree in Political Theory from the London School of Economics and Political Science, and a Bachelor’s degree in Politics, Sociology and Anthropology from the Hebrew University of Jerusalem. He has taught Political Theory at the London School of Economics, Queen's University, and the Hebrew University of Jerusalem.  His primary research interests are democratic theories of inclusion, multiculturalism, civic education, conflict resolution and the politics of reconciliation, historical injustices, Palestinian nationalism, and Israeli politics.  Among Bashir's publications is: Will Kymlicka and Bashir Bashir (eds.), The Politics of Reconciliation in Multicultural Societies (Oxford: Oxford University Press, 2008).

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Bashir Bashir Research Fellow, Van Leer Jerusalem Institute; Civic Education and Leadership Fellow at Maxwell School of Citizenship, Syracuse University Speaker
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A founding father of the Soviet Union at the age of twenty nine, Nikolai Bukharin was the editor of Pravda and an intimate Lenin's exile. (Lenin later dubbed him "the favorite of the party.") But after forming an alliance with Stalin to remove Leon Trotsky from power, Bukharin crossed swords with Stalin over their differing visions of the world's first socialist state and paid the ultimate price with his life. Bukharin's wife, Anna Larina, the stepdaughter of a high Bolshevik official, spent much of her life in prison camps and in exile after her husband's execution.

In his most recent book Politics, Murder, and Love in Stalin's Kremlin: The Story of Nikolai Bukharin and Anna Larina (2010), Paul Gregory sheds light on how the world's first socialist state went terribly wrong and why it was likely to veer off course through the story of two of Stalin's most prominent victims. Drawn from Hoover Institution archival documents, the story of Nikolai Bukharin and Anna Larina begins with the optimism of the socialist revolution and then turns into a dark saga of foreboding and terror as the game changes from political struggle to physical survival. Told for the most part in the words of the participants, it is a story of courage and cowardice, strength and weakness, misplaced idealism, missed opportunities, bungling, and, above all, love.

Paul Gregory holds the Cullen professorship in the Department of Economics at the University of Houston and is a research professor at the German Institute for Economic Research in Berlin and a Research Fellow at the Hoover Institution. The holder of a Ph.D. in economics from Harvard University, he is the author or coauthor of nine books and many articles on the Soviet economy, transition economies, comparative economics, and economic demography. He serves on the editorial boards of Comparative Economic Studies, Journal of Comparative Economics, Problems of Post-Communism, and Explorations in Economic History. He was the President of the Association of Comparative Economic Studies in 2007.

Paul Gregory served as an editor of the seven-volume History of Stalin’s Gulag (published jointly by Hoover and the Russian Archival Service), which was awarded the silver human rights award of the Russian Federation in 2006 and  is an editor of the three volume Stenograms of the Politburo of the Communist Party (published jointly by Hoover and the Russian Archival Service). Two of his edited works – Behind the Façade of Stalin’s Command Economy and The Economics of Forced Labor: The Soviet Gulag -- have been published by Hoover Press. His collection of essays entitled Lenin’s Brain and Other Tales from the Secret Soviet Archives was published in 2007. His co-edited work with Norman Naimark, The Lost Politburo Stenograms, was  published by Yale University Press in 2008 as was his most recent work Terror by Quota. Professor Gregory’s current research on Soviet dictatorship and repression is supported by the National Science Foundation and by the Hoover Institution Archives.

This event is co-sponsored by the Forum on Contemporary Europe and the Center for Russian, East European and Eurasian Studies.

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Paul Gregory Cullen Professor of Economics, Houston University; Research Fellow, the Hoover Institution; Research Fellow, German Institute for Economic Research in Berlin Speaker
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