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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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Springer Briefs
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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.

Bechtel Conference Center

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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Despite advances in neurotechnology, pain remains a subjective experience that cannot be identified solely through objective means. The technological turn has led to and been synergized by market effects within medicine. In this paper we pose that this has led to

  1. sidestepping of the discriminative intellectual integrity of science to inform and sustain the good of medicine,
  2. diversion and/or subversion of physicians' capacity to make wellinformed clinical decisions,
  3. the excessive use (if not misuse) of certain technologies and technologically-based techniques,
  4. a compromised 'discretionary space' in which physicians may use technology to uphold patients' best interest(s) and
  5. a decremented medical fiduciary.

In response, we propose four principal goals that could enable a more integrative use of technology. These are

  1. promotion of 'customary' and 'out of the box' basic and clinical science as needed for new technologies in more personalized therapeutic settings and regimes,
  2. eliminating unnecessary, inapt or inconsequential use(s) of technology,
  3. development and provision of healthcare coverage that enables use of high technology as necessary and appropriate, and
  4. incorporation of this insurance system within a broad Samaritan ethic of care.
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Journal of Ethics in Biology, Engineering and Medicine
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This paper provides an understanding of the current copyright laws regarding software licensing in the United States and Europe. The concept of copyright under both the U.S. and EU legal regimes is to convey on the copyright owners the exclusive right to distribute their copyrighted software. In case of sales transactions, that right is expressly limited to statutory copyright law.

Sections 109 and 117 of the U.S. Copyright Act are the respective core provisions to apply to software transactions. It is not an infringement for the owner of a copy of a work obtained at an authorized sale to sell or otherwise dispose of the possession of that copy. In addition, the owner of a copy of a computer program may, inter alia, create another copy of that program provided that the copy is made either as an essential step in the utilization of the computer program in conjunction with a machine and that it is used in no other manner, or for archival or back-up purposes. Under U.S. case law the crucial question is whether a licensee of software can be deemed as an "owner" of a copy of the software and as such trigger the first sale immunities. The paper shows the different approaches taken by different courts on the so-called "sale versus license debate".

Article 4(c) of the Council Directive on the Legal Protection of Computer Programs ("EC Software Directive") contains the European version of the first sale doctrine, the Community exhaustion doctrine. The first sale of a copy of a computer program by the copyright owners or with their consent shall exhaust the distribution right of that copy within the European Communities (EC) or European Economic Area (EEA). Contrary to the sale versus license debate in U.S. case law, European courts—with no greater argument—deemed software licensees subject to exhaustion. The courts have been more concerned to apply the doctrine of exhaustion in a way as to further the implementation of the fundamental freedom of free movement of goods and services in the EC.

On the basis of a transatlantic copyright analysis the paper will discuss, in a second step, the existence of a digital first sale doctrine (as called in the United States) or digital Community exhaustion doctrine (as known under EC law). The paper debates whether the first sale/exhaustion privilege is to apply also in the event of online-transmissions of software, i.e., when no tangible data carrier embodying the target software changes hands. In today’s world, copies of copyrighted works, including software, are bought with increasing frequency by electronically downloading them through networks, mostly the Internet, with no tangible copy of the target software provided. However, digital transmissions of copyrighted works over the Internet fit neither comfortably within the narrow concepts of first sale nor exhaustion. In discussing whether online distribution of software shall render sections 109 and 117 of the U.S. Copyright Act or Article 4(c) of the EC Software Directive applicable, the paper concludes that in the absence of persuasive case law in either jurisdiction on this matter, U.S. governmental authorities tend to protect software copyright owners, whereas the existence of a digital Community exhaustion doctrine may be based on the ground of free movement of information.

This research was published as TTLF Working Paper No. 6 at
http://www.law.stanford.edu/program/centers/ttlf/#ttlf_working_papers.

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Transatlantic Technology Law Forum
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Petra Heindl
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Reaching everything from medicine to the food industry, biotechnology’s impact on society has become a major economic factor and is ever-increasing. In addition to its impressive potential benefits, biotechnology carries serious risks, especially regarding security and ethics. The European Patent Convention includes statutory restrictions regarding morality and public policy, while today’s U.S. laws in contrast, try to avoid morality restrictions in patenting biotechnology and U.S. agencies generally grant patents without regard to moral concerns. Not long ago, the U.S. Patent Act included a morality doctrine which had a restrictive effect on biotechnology.

The new U.S. approach applies to micro-organisms, plants, and animals where moral concerns were not considered at all before the United States Patent and Trademark Office. It is not clear, if the moral questions re-emerged referring to the Newman/Rifkin patent application, claiming an animal-human chimera, since the application was finally rejected on the grounds that human beings do not constitute statutory subject matter under 35 U.S.C. § 101. This line of argumentation was a break from the developed case law concerning living matter. The attempt to keep ethical concerns out of the U.S. patent laws stands on very shaky grounds.

Another problem arises from the fact that both patent systems, in Europe and the U.S., are relying on the term “human” as a borderline for patentability but none of them define the term “human” which leads to ambiguities. An interesting approach came up, defining a human being not by its biological criteria but rather by its intellectual capabilities. However, this approach is still in its infancy.

The project is co-sponsored by the Stanford-Vienna Transatlantic Technology Law Forum (TTLF, a joint initiative of Stanford Law School and the University of Vienna School of Law) and by Stanford University’s Forum on Contemporary Europe at the Freeman Spogli Institute for International Studies.

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Transatlantic Technology Law Forum
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Christine Reiter
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From 2007 to 2010, a financial and economic crisis gripped the United States, Europe and the world. 7 million Americans lost their jobs, 10 million were pushed below the poverty line, thousands of families lost their homes, and many lost their savings. Somewhat lower numbers were reported from Europe, although the structural mechanisms behind the crisis were seemingly similar, eventually affecting not only the West, but the whole world. It is foreseen that the effects of the crisis will last for years, and it is still uncertain if a full recovery will be possible.

Given that a variety of highly speculative practices put into place by the banking and finance sector during the "neoliberal“ decades between the early 1990s and 2007 allegedly played a role in triggering the crisis, the request for more down-to-earth and sustainable ways of dealing with money and finance has surfaced to international attention. Particularly in Europe, social banks were among the most successful financial institutions during the crisis years, with annual growth rates of up to 30%, factually doubling their assets between 2007-10. This unprecedented success was supposedly due to the fact that many European savers shifted their assets from mainstream banks to social banks, driven by the hope that the latter would handle their money in less abstract and egoistic, and more realistic and community oriented ways. In recent years, social banks have forged influential global networks such as the Global Alliance of Banking on Values and the International Association of Investors in the Social Economy, which pursue the ambitious strategy of reaching out to 1 billion people by 2020.

Given that, not least as a result of the crisis, increasing numbers of people are improving their financial literacy and are taking a growingly critical stance towards the mainstream international banking and finance sector as we knew it before the crisis, the seminar poses the questions of whether (and how) social banking and social finance may concretely contribute to improving the current financial system, and how they might help to restore confidence in capitalism by providing “best practice” examples in selected fields.

The seminar will try to provide some answers to these questions by examining the pros and cons of contemporary social finance and by outlining perspectives of structural complimentarity and cooperation between speculative and sustainable finance.

 

Audio Synopsis:

In his seminar, Professor Roland Benedikter argues that too little has been done to reform the banking and financial sectors in the wake of the recent crisis, then presents social banking and social finance as an alternative system. First, he argues that the widespread bank bailouts of the past few years have "saved the wrong system" and points out that many of the largest US banks, for example, have actually grown since the crisis despite calls by the Obama administration for these banks to downsize or break in to smaller pieces. He acknowledges that new measures initiated by both the Obama administration (establishing a consumer protection bureau; imposing limits on fees by financial intermediaries) and by European countries (banning high-risk transactions in Germany; reducing public liability for private bank bailouts) are steps in the right direction. He adds his own suggestions, including increased regulation, better international agreements on regulating capital flows, a fee on high-risk speculative transactions, and a preventative tax on banks to protect against future crises. Many of these reforms, however, have faced enormous opposition from the major players in the banking and finance sectors in Britain, the United States, and China.  Progress seems to have stalled, with popular figures like Niall Ferguson, who once led calls for dramatic reform, now insisting that the system is too resistant to change, and that simpler goals such as a new hippocratic oath for the financial sector will suffice.

Benedikter then presents social banking and social finance as an answer to the seemingly intractable problems of the traditional system.  He first describes the industry in terms of what it is not. Traditional banks, he argues, made three major mistakes leading up to the crisis: irresponsibility (loans that were too high, too much derivative investment); lack of transparency; and unsustainability (by participating in speculation and contributing to market bubbles). The current economy, he explains, is based on a tripolar system: a "real" economy of manufacturing and tangible goods; and two "side economies" of real estate and financial derivatives, which have steadily drawn capital away from the real economy since 1989. A breakdown of this unsustainable system was predicted by multiple think tanks before 2007, based partly on the frantic growth of the derivatives market (from  $100 trillion to $516 trillion annually between 2001 and 2006 - for perspective, Benedikter cites the annual world GDP figure of approximately $50 trillion).

Social banks, on the other hand, invest 100% of their capital toward responsible, transparent, and sustainable ventures such as green technology and social initiatives. Banks emphasize knowing their customers, which requires them to operate on a smaller scale than traditional banks, and conversely customers know where their money is invested and can even participate in making investment decisions. These decisions  are meant to take the potential social as well as financial return on an investment into account. Benedikter describes this as a "Triple Bottom Line" approach, emphasizing profit, people, and the planet.

A discussion period following the presentation addressed questions including:  What are the mechanisms available to enforcing the triple bottom line approach in social banking and social finance? Are social banks guided by a common charter? What are the details of the proposed high-risk transaction fee? Why have some US social banks been successful while others have struggled?

Reuben W. Hills Conference Room

Roland Benedikter Speaker
Seminars
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The 21st century has been branded the century of the worldwide return of ethnonationalisms. Conflicts based on cultural differences are boiling up in many regions, leading to civil wars and to the breakup of states. Many of these conflicts are direct and indirect consequences of modernization and transnationalization; and they are usually as complex as they are enduring and difficult to settle, because rooted in the "deep“ dimensions of culture and religion. The result is in many cases a conflict pattern where political solutions are often only of temporary value, because the far deeper rooted ethnic and cultural dimensions sooner or later undermine them and spiral the conflict up again. As a consequence, there is a new debate today about the advantages of partition and separation, and an increasing number of scholars and politicians seems to believe that the still most humane lasting solution for ethno-cultural conflicts is to institutionally divide ethnic groups once and for all, accepting to a certain extent (non-recurring) ethnic cleansing and new flows of refugees. Answering such approaches (like the one of Jerry Z. Muller propagated paradigmatically in Foreign Affairs, March/April 2008), Roland Benedikter presents a functioning and long-term proven model from Central Europe, where different ethnic groups have managed it to find a unique institutional arrangement that permits them to live together without territorial and political partition. In presenting core features of the model of autonomy of the Autonomous Province of South Tyrol, a border region between Northern Italy and Austria where three ethnic groups coexist and have made the area formerly ridden by civil wars (until 1972) now one of the wealthiest regions of Europe, Roland Benedikter shows how cornerstones of this model may be successfully applied also to other ethnic conflict regions.

Roland Benedikter, Dott. Dr. Dr. Dr., is European Foundation Fellow 2009-2013, in residence at the Orfalea Center for Global and International Studies of the University of California at Santa Barbara, with duties as the European Foundations Research Professor of Political Sociology. His main field of interest is the multidimensional analysis of what he calls the current "Global Systemic Shift", which he tries to understand by bringing together the six typological discourses (and systemic order patterns) of Politics, Economy, Culture, Religion, Technology and Demography. Roland is currently working on two major book projects: One about the "Global Systemic Shift", and one about the "Contemporary Cultural Psychology of the West", the latter comparing culturo-political trends in the European and American hemispheres. With both projects he is also involved in European Policy Advice.

Reuben W. Hills Conference Room

Roland Benedikter Speaker
Seminars

This workshop is sponsored by the Mediterranean Studies Program, and co-sponsored by the Abbasi Program in Islamic Studies, Center on Democracy, Development and the Rule of Law, the Europe Center,  and the Stanford Humanities Center

Stanford faculty, students, scholars and staff are welcome to attend. To RSVP, please contact medstudies@stanford.edu.

WORKSHOP SCHEDULE:
 
November  15th
 
10:30 am – Noon:   Conceptual Explorations

Haldun Gulalp (Department Political Science, Yildiz Technical University)
“Rethinking Islam and Secularization in Turkey: A Durkheimian Perspective”

Ahmet Kuru (Department of Political Science, San Diego State University)
“Islamism, Secularism, and Democracy in Turkey”
 
2:00 pm- 3:30 pm:  Managing the Difference

Aykan Erdemir (Department of Sociology, Middle East Technical University)
“Faith-based Activism for Secularism: The Transformation of Alevi Collective Action Repertoire in Turkey”

Murat Somer (Department of International Relations, Koc University; Princeton Institute for International and Regional Studies, Princeton University)
“Islamic-Conservative and Pro-Secular Values and the Management of Ethnic Diversity and Conflict”
 
4:00 pm - 5:30 pm: Claiming Secularism

Umit Kurt (Department of History, Clark University)
“Military’s Perceptions of Islam and Secularism in Contemporary Turkey”

Kabir Tambar (Department of Religion, University of Vermont)
“Staging Alevi Pasts in Secular Time”
 
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November 16th
 
10: 30 am- Noon: Turkey’s “Islamists” and “Secularists” Abroad

Betul Balkan (Department of Sociology & Anthropology, Northeastern University)
“Opinions of Turkish Immigrants in Houston About Secularism and Islam in Turkey”

Zeynep Atalay (Department of Sociology, University of Maryland-College Park; The Abbasi Program in Islamic Studies, Stanford University)
“From the Neighborhood to Umma: Global Networks of Muslim Civil Society in Turkey”
 
2:00 pm – 3:30 pm: Contextualizing the Turkish Case

Hootan Shambayati (Division of Public Affairs, Florida Gulf Coast University)
“Controlled Democratization, Moderate Islam, and Radical Secularism: Lessons from Turkey and their Implications for the Middle East”

Nora Fisher-Onar (Department of Politics and International Relations, Bahcesehir University; Centre for International Studies, University of Oxford)
“Vision or Cacophony?:  Mixing Liberal-Democratic, Religious-Conservative, Power Political, and Ottomanist Metaphors in Contemporary Turkey”
 
4:00 pm- 5:30 pm:  Concluding Session

Riva Kastoryano (Center for International Studies and Research, Sciences Politique)

Larry Diamond (Center on Democracy, Development and the Rule of Law, Stanford University)

Stanford Humanities Center, Board Room

Workshops
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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).

CISAC Conference Room

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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