Business

Stanford University and German publishing house Suhrkamp Verlag are pleased to jointly sponsor the international lecture and publication series devoted to new work by Stanford faculty on contemporary and historical subjects.  Hosted at Stanford by the Forum on Contemporary Europe at the Freeman Spogli Institute for International Studies, and in Berlin by Suhrkamp, this series responds to the need for insight and trans-Atlantic dialogue on today’s most pressing issues. Senior scholars whose work has earned influence on discussion and policy are selected to bring their voice to this

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Please join the Forum on Contemporary Europe for a first assessment of the September 27 German elections by FSI Senior Fellow Josef Joffe.

Josef Joffe is publisher-editor of the German weekly Die Zeit, and was previously columnist/editorial page editor of Sddeutsche Zeitung (1985-2000). Abroad, his essays and reviews have appeared in: New York Review of Books, New York Times Book Review, Times Literary Supplement, Commentary, New York Times Magazine, New Republic, Weekly Standard, Prospect (London), Commentaire (Paris). Regular contributor to the op-ed pages of Wall Street Journal, New York Times and Washington Post; Time and Newsweek.  In 2005, he co-founded the foreign policy journal "The American Interest" in Washington (with Zbigniew Brzezinski and Francis Fukuyama).

His most recent book is Überpower: America's Imperial Temptation (2006, translated into German and French). His articles have appeared in Foreign Affairs, The National Interest, International Security, The American Interest and Foreign Policy as well as in professional journals in Germany, Britain and France. He is the author of The Limited Partnership: Europe, the United States and the Burdens of Alliance, The Future of International Politics: The Great Powers; co-author of Eroding Empire: Western Relations With Eastern Europe.

 

Event Synopsis:

As Professor Joffe describes, political scientists predicting the outcome of the recent German elections based on economic factors were surprised by the victory of the Center Right, expecting a "Red-Red-Green" (Social Democrats-Left-Green Party) coalition instead of Merkel's "Black-Yellow" (Christian Democrats and Free Democrat) coalition party. He sees the outcome more as a loss for the Social Democrats, Lefts, and Greens - who should have done better in tough economic times, and capitalized on left-leaning ideology in Germany - than as a decisive victory for the winners.  He disagrees with the New York Times' declaration of a "mandate for change" in Germany for several reasons:

  1. The proportional representation party system based on coalitions rather than majorities makes it impossible to enact wholesale change
  2. The "stalemate system" features too many centers of power and makes change difficult
  3. Germans like these features of their political system too much to change them

Professor Joffe asserts that the outcome of the elections is a good one for Germany. A victory by the "Red-Red-Green" coalition would have brought about years of instability under a grand coalition that would be characterized by high taxes and spending, pacifism, and the status quo, and which would soon have broken down. In the coming years, Joffe predicts a medium-term exit of German troops from Afghanistan, resistance of US calls for more troops in the Middle East, a pro-Israel stance, and little to no change in domestic policy.  He believes there should be greater focus on preventing the collapse of social support programs, but admits this does not fit into the electoral cycle of domestic politics and will likely be overlooked.

In conclusion, Joffe views the election outcome as the best possible one given alternatives, and as a message to Angela Merkel that Germans are realistic and want German politicians to be less timid.

A discussion session following the talk addressed such issues as: Will Germany revise its position toward Turkey's EU integration under Merkel's leadership? Will the election outcome affect the competitive position of German business? How are rising debt levels in Europe felt by Germany? How do the German people feel about their economic situation and competitiveness?

Josef Joffe Speaker
Seminars
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Europe is increasingly investing in research through its Framework Programme for Research. A European Research Council has been created to foster basic research of the highest quality. Business and industry are encouraged to take R&D initiatives. Attempts are also being made to coordinate research between EU Member Countries to achieve critical mass and avoid duplication of efforts. The new research program is also becoming more internationally oriented. Will Europe succeed in becoming the most knowledge intensive region in the world?

Kerstin Eliasson is an expert on national and international research and science policy. She is currently Director, Ministry of Education and Research, Sweden. From 2004-2006, she served as State Secretary, Ministry of Education, Science and Culture. Mrs. Eliasson has been the chief negotiator for Sweden's participation in two international research facilities in Germany. She serves as Member of the Board of the Joint Research Centre (European Union) and Member of High-level Strategic Forum for International S&T Cooperation (EU).

Peter Wallenberg Learning Theater
Wallenberg Hall/Building 160
Stanford University

Kerstin Eliasson Speaker
Lectures
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Kara Sex
Please join us for a lecture and book signing with Siddharth Kara, author of Sex Trafficking: Inside the Business of Modern Slavery. In 1995, Mr. Kara first encountered sexual slavery in a Bosnian refugee camp. He has since dedicated his life to traveling and learning the mechanisms behind the business of sex trafficking. Mr. Kara has taken a rare look at analyzing the local drivers and global macroeconomic trends that give rise to this burgeoning industry, in addition to quantifying the size, growth, and profitability of sex trafficking and other forms of modern slavery.

Synopsis

Employing his comprehensive research throughout his talk, Siddarth Kara begins by explaining that sex trafficking is the most profitable form of slavery. Therefore, to Mr. Kara, it is crucial to take a business approach to the issue. Using powerful stories as key examples to ensure focus also remains on the human cost of sex slavery, Mr. Kara divides the operation of sex slavery into three steps. The first is acquisition which most commonly occurs by deceit, seduction, or sometimes even sale by family. The second step is movement which involves all forms of transportation, the use of false documentation, and bribery. The third step is exploitation of the victims which takes place in many forms such as rape, torture, and violent coercion. The sale of women and girls often takes place in brothels, hotels, and streets. Mr. Kara reveals that their fate often involves HIV infection, drug addictions, exclusion from families, and most terrifyingly, retrafficking.

Mr. Kara goes on to argue that current abolition attempts are deficient in four key areas. These include a poor understanding of the trade, lack of funding for and lack of coordination between international organizations, inappropriate laws and insufficient enforce of them, and an improper business analysis of the situation.

However, Mr. Kara stresses repeatedly that this “war on slavery” as he puts it is a war we can win. He boils the industry down to slave trading which is the supply aspect and slavery itself which is the demand aspect. Mr. Kara argues that, like all industries, the slave trade is governed by these two forces as well. Therefore, Mr. Kara’s main argument is that sex slavery must be destroyed by reducing the aggregate demand for sex slaves by attacking the industry’s profitability. In terms of profit making, his research shows it is the demand side which must be focused on the most. Mr. Kara argues the demand for sex slaves is very vulnerable. He personally saw this in a particular brothel when prices rose. In addition, he emphasizes that the fact that business must be conducted between consumer and trader in relative daylight means these criminals can be caught.

Consequently, Mr. Kara proposes a multi-faceted approach of seven tactical interventions to hurt profitability and crucially increase risk for traders. Firstly, Mr. Kara believes in the need to create an international inspection force which works closely with paid locals of the community who are trained to spot such activities in everyday life. Mr. Kara stresses the importance of targeted, proactive raids on centers of such criminal activity. In addition, to avoid bribery and other forms of undermining law enforcement, he feels it is vital to improve the pay of trafficking authorities including judges and prosecutors. This is linked to Mr. Kara’s idea of specialized, fast-track courts for trafficking to quickly close cases. Cases often fall apart because victims or their families are intimidated, Mr. Kara therefore argues for at least 12 months of paid witness protection for victims and their families to avoid intimidation or outright murder. Finally, Mr. Kara stresses the need to increase financial penalties for those found guilty of trafficking to increase the risk in the business.

What Mr. Kara really emphasizes is that more resources are needed in tackling this criminal activity by attacking profitability, increasing risk, and reducing aggregate demand. Mr. Kara concludes by stating that sex trafficking is a “stain on humankind that must be buried.”

In engaging with the audience, Mr. Kara discusses several key issues of his presentation. One central area that is emphasized is his methods in gathering research and formulating statistics. Mr. Kara also explains where the money would come from to fund the global abolitionist movement he presents. In addition, Mr. Kara reveals what ordinary citizens can do in their everyday lives to help the cause.

About the speaker

Siddharth Kara is a former investment banker and business executive with an MBA from Columbia University. He set aside his corporate career to pursue anti-slavery research, advocacy, and writing, and, more recently, a law degree. He currently serves on the board of directors of Free the Slaves, an organization dedicated to abolishing slavery worldwide. In 2005, he testified on contemporary slavery to the United States Congressional Human Rights Committee.

Jointly sponsored by the Forum on Contemporary Europe and the Public Management Program of the Stanford Graduate School of Business.

CISAC Conference Room

Siddharth Kara Author Speaker
Seminars
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Ambassador Eliasson sets out the current status of Europe-US relations and acknowledges the wide range of daunting problems the world must face today. He emphasizes the need for an enhancement of the transatlantic relationship, as well as the need for multilateral cooperation. Mr. Eliasson also reinforces the importance of a continued awarenesss of the economy, the environment, and ethics.

Synopsis

Although unsure whether there will in fact be a new transatlantic agenda, Ambassador Eliasson repeatedly highlights that it is crucial that it does happen if we are to challenge the ‘huge’ issues of today. Mr. Eliasson notes the current financial climate and its possible effects on the social and political spheres as worrying. He also expresses particular concern at what he calls ‘fortress building,’ which involves protectionism and intolerance. Mr. Eliasson goes on to explain that as it stands, current US-Europe relations are dominated by mutual interest on security and the economy. However, to Mr. Eliasson, this relationship is marred by several issues. Inside the EU, democracy is in a predicament with politicians being accountable nationally while the issues are international. Moreover, Mr. Eliasson feels that the nature of the US and Europe relationship is not representative of the responsibility it should carry by being the most prosperous regions of the world.

How is this transatlantic relationship to move forward? If we are to arrive at what Mr. Eliasson describes as ‘scenario 1,’ which involves long term thinking, regulation, an emphasis on ethics, and a realization of interdependence in an internationally cooperative system, then Mr. Eliasson argues this requires reform. Mr. Eliasson argues it is urgent not to separate politics and economics. In dealing with a financial crisis, we must employ a multilateral approach and learn lessons for the future, particularly not fearing international regulation in a globalized economy. Mr. Eliasson also explains we can avoid this protectionist ‘fortress building’ by embracing ‘multipolarity.’ Mr. Eliasson underscores the importance of tolerance and good governance as central to progress. In addition, Mr. Eliasson reinforces that the problems of today are on such a massive scale that they must be dealt with internationally, as well as regionally and in the private sector.

Dealing with such issues, which involve collective engagement in Afghanistan and a cooperative approach in Africa, is what Mr. Eliasson believes must be added as a ‘third pillar’ to the US and Europe’s relationship. Mr. Eliasson also stresses concrete action on poverty by the US and Europe as central to this effort. In particular, he places emphasis a program for education of women and the establishment of clean water access. Mr. Eliasson believes that such efforts, which would add a pivotal ethical dimension to the transatlantic agenda, would enhance the reputation of democracy across the globe through concrete action.

In engaging with the audience in a question-and-answer session, one of the most emphasized subjects was diplomatic standards for international relations. Mr. Eliasson strongly reinforced the notion that the transatlantic agenda should stand with clear ethical standards. Other issues addressed included Iran's nuclear capabilities, religion, and the role of Russia.

About the Speaker

Ambassador Jan Eliasson was until July 1, 2008 Special Envoy of the United Nations Secretary-General for Darfur. Previously, Jan Eliasson was President of the 60th session of the United Nations General Assembly 2005-2006. He was Sweden’s Ambassador to the United States, 2000-2005. Mr. Eliasson was Minister for Foreign Affairs of Sweden in 2006.

Mr. Eliasson served from 1994 to 2000 as State Secretary for Foreign Affairs, a key position in formulating and implementing Swedish foreign policy. Earlier, 1988-1992, he was Sweden’s Ambassador to the United Nations in New York. During this period, he also served as the Secretary-General’s Personal Representative for Iran/Iraq.

In 1992, Mr. Eliasson was appointed the first United Nations Under-Secretary-General for Humanitarian Affairs and was involved in operations in Somalia, Sudan, Mozambique and the Balkans. He also took initiatives on landmines, conflict prevention and humanitarian action.

1980-1986, Mr. Eliasson was part of the UN mediation missions in the war between Iran and Iraq, headed by former Prime Minister Olof Palme. In 1993-94 Mr. Eliasson served as mediator in the Nagorno Karabakh conflict for the Organization for Security and Co-operation in Europe (OSCE). He has been Visiting Professor at Uppsala University and Göteborg University in Sweden, lecturing on mediation, conflict resolution and UN reform.

During his diplomatic career, Mr. Eliasson has been posted to New York (twice) Paris, Bonn, Washington (twice) and Harare, where he opened the first Swedish Embassy in 1980. He served as Diplomatic Adviser to the Swedish Prime Minister 1982-1983, and as Director General for Political Affairs in the Swedish Ministry for Foreign Affairs 1983-1987.

Mr. Eliasson has authored and co-authored numerous articles and books and is a frequent lecturer on foreign policy and diplomacy. He is recipient of honorary doctorate degrees from i. a. American University, Washington, D.C., Uppsala University and Göteborg University, Sweden. He has been decorated by a number of Governments.

He is the Chairman of the Anna Lindh Memorial Fund of Sweden and is Member of the Advisory Group to the International Committee of the Red Cross (ICRC), Geneva.

Born in Göteborg, Sweden, in 1940, Mr. Eliasson was an exchange student in the United States 1957-1958. He graduated from the Swedish Naval Academy in 1962 and earned a Master’s degree in Economics and Business Administration in 1965.

Oksenberg Conference Room

Jan Eliasson Former Special Envoy of the United Nations Secretary-General for Darfur; Former President of the United Nations General Assembly; Former Minister for Foreign Affairs for Sweden Speaker
Lectures

Vienna University of Economics and Business Administration
Department of Information Technology Law and Intellectual Property Law
Althanstrasse 39-45
1090 Wien

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Distinguished Visiting Austrian Chair Professor, 2007-2008
Visiting Professor, Stanford Law School
Head of the Deparment of Information Technology and Intellectual Property Law, Vienna University of Economics and Business Administration
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Andreas Wiebe, LL.M., is Head of the Deparment of Information Technology and Intellectual Property Law at the Vienna University of Economics and Business Administration. From January through June 2008, Professor Wiebe served as Distinguished Visiting Austrian Chair Professor at the Forum on Contemporary Europe, during which time he taught courses in e-commerce law and intellectual property law at the Stanford Law School. Professor Wiebe co-organized the June 14 "Transatlantic Information Law Symposium," held at the Stanford Law School and presented by the Transatlantic Technology Law Forum and the Freeman Spogli Institute for International Studies.

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Professor Gardner discusses Ukraine's rise since its 'dramatic' recession in the 90s. He interprets this particularly from the perspective of the economy while examining other factors such as football and Ukraine's relationship with Russia. Professor Gardner also looks at Ukraine's integration with Europe and possible ascension into the EU.

Synopsis

Professor Gardner discusses Ukraine’s rise and possible ascension into the EU. Initially, he focuses on the dreadful state of the Ukrainian economy throughout the 1990s, with 20% lost before its independence and a steady 9% annual loss in growth. Gardner identifies the turning point as 2000 where Prime Minister Yushchenko’s reform package transitions the country onto a growth path, now steadily growing at an annual 7%. However, although Gardner says the country has caught up what it has lost, it is still below the transition country average and faces both internal and external challenges. These include skyrocketing inflation, large current account deficit, depreciation of currency, and a substantial trade deficit. In addition, Ukraine’s internal political chaos has led to unreliability in the country’s policy constancy. Externally, Ukraine is caught between a reluctant EU and an aggressive Russia as Dr. Gardner puts it.

The latter half of Professor Gardner’s talk focuses primarily on Ukraine’s integration with Europe. He notes the various ratings Ukraine receives as a transition country in the European Bank for Reconstruction and Development (EBRD). Overall, Ukraine received a three out four in the transition index. He explains increasing mobile phone use, bank reform, small scale business success, and price liberalization as Ukraine’s strengths on the scale. On the other hand, Ukraine’s weaknesses lie partly in its competition policy and the riskiness of the Ukrainian Stock Exchange. He also cites various key integration signals such as Ukraine’s co-hosting of the 2012 Euro Championship football tournament and its exports to Europe. Professor Gardner believes for Ukraine to make the EU list it will have to raise its EBRD score and rewrite its constitution.

Prof. Gardner also kindly took questions and further discussed a variety of issues. One notable point was that when asked what single move could substantially shift the nation forward and away from Russia, Professor Gardner identified further opening the trade relationship with Europe by reducing trade barriers as key. He also addressed internal political conflict, language issues, and referendums.

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

CISAC Conference Room

Roy Gardner Chancellor's Professor of Economics and West European Studies, Indiana University; Kyiv School of Economics (Kyiv) Speaker
Seminars
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