Stories Being Told to Us: Welcome to the New World Disorder
Historically, without much fanfare, US President's spend approximately 50% of their time and
energy on foreign affairs even when things are going well. When Bill Clinton came into office he cut that as close to zero as he could manage and focused on domestic, and eventually, personal issues. Don't believe me ? Well it's rather extensively documented in Halberstam's interesting little book: War in a Time of Peace: Bush, Clinton, and the Generals by David Halberstam. But we can't entirely blame Clinton - he was reflecting the consensus of the times that the old ideology wars were over, that liberal democracy and free-market capitalism were triumphant and now all we had to do was put a Lexus under every Olive Tree. Well we've pretty extensively document the deep structural fallacies with that but in case you were wondering 911 was a wake-up call why hiding behind our oceanic moats was impractical and dangerous. And in the last couple of weeks our friends in Moscow have given us another lesson in why they call it Realpolitik, why Furst von Bismarck was brilliant and far-sighted statesman whom we all miss and why at least 50% of the President's time is likely not enough.
Now hindsight is 20/20 and it's not fair to criticize the leadership for doing their best on the facts as they knew them at the time. The critically important thing is to figure out where you're at, where you want to go and can go, and how you propose to get there. That said studying the past still makes sense because history defines the trends and context - after all what were/are the Balkan Wars without millenia old ghosts ? And Russia's invasion of Georgia but the legacy of paranoia built into the Russian DNA by the Mongols and Ivan the Terrible, who is btw still a great historical hero to the Russian people for the stability and order he created.
Dealing with the brave old world of great power politics is now back on the front burner so we thought we'd take a little survey of the news and the issues. And let's not think a cigar and a you-know-what is more important please. Just for the record and to help sort things out here's our little architected list of key policy and strategic issues. You may notice the Foreign Policy is one of the "Big Three" IOHO. As it happens, and strangely enough, while it's critical to our survival we don't consider it the #1 priority. That goes to economics. But not at the exclusion of each other - there must be a balance. With that in mind after the break you'll find some excerpted readings in the FP area that survey what we think are the biggest concerns, in the order of urgency but not necessarily significance, facing the next President.
At this point we should have learned it's not a single-pole world but an evoling multi-polar one where the interests and concerns of the other players have to be considered. They are not just blind ciphers were we can pull a lever and get what we want. And their interests are not our interests. On the other hand the US will continue to be the dominant political and economic power for decades. And as a result we have a greater stake in a stable, orderly and workable international system than any other. At the same time the rising powers have benefited enormously from the system the US created and maintained with its' allies post-WW2. In the next iteration and evolution we need their active participation and contribution balanced against their benefits and interests. Our challenge therefore is to be constructively engaged with the nations of the world in a way that promotes their positive contribution where possible and feasible. And to carry on around them where not. Part and parcel of that constructive engagement is to encourage them to do as well for their own people as they can manage. 
Which leads, based on the framework we've sketched and the readings below, to the following assessments and suggestions.
1. Middle East - Iraq is going much better than anticipated but has a ways to go. Obama's reluctance to admit this is disheartening; nor is Afghanistan the central problem of our times. Contrawise hunting down Usama isn't either, Johnboy. Afghanistan is certainly at risk and will take a concerted and integrated effort, like we should have made after Charlie's War and were forced into in Iraq. But it requires nowhere near the resources and does require the NATO so-called allies to actually perform to promise or be replaced. If you want a balanced assessment Gen. Barry McCaffrey's After Action Report is worth your time. If you click and read you can also download. The real problem though is that the kind of Unified Action he's recommending that's really nation-building in disguise is urgently required in Pakistan, which is coming apart at the seams. Replacing Musharrif was all well and good but Pakistani politicians have a decades long history of incompetence and corruption which is on the verge of creating a catastrophe. The Middle East in general and Pakistan in particular become the #1 foreign policy problem.
2. Russia - despite Russia's subterfuge and intransigence in Georgia, which has been building and built over decades going back to the very disdainful way they were treated by Clinton, they are neither military, economically or politically powerful enough to cause us to re-think our overall strategies. We must deal with this, they have destroyed the assumptions of a peaceful new order and returned us to something older, and in the process destroyed the last three decades of European complacency whether they admit it or not, but do not in fact violate our views of how the world system should and could work. They just make themselves untrusted participants who may be in the process of committing socio-economic suicide.
3. China and India - are the most important long-term foreign policy issues we have to face. Fortunately for us the US has pursued adult relationships with them over the last several years, respected their interests while defending our own and encouraged them to be constructive participants in the international system. They are both crossing several key cusp points that will be challenging for us all. The worldwide economic downturn that's emerging will put severe pressure on their domestic systems. At the same time those systems were facing the need to evolve to the next level of capabilities anyway. Finally we need to encourage to continue to be constructively engaged and contributory to the re-architecting of the world system we hope to achieve.
Our ability to accommodate China and India's rise, to adjust the system, to encourage them to contribute and to see the health of that system as in their own long-term best interests will be the central question of early 21rst C international affairs.
Consider this your blueprint and checklist for evaluating the candidates - in this case how do they respond to the stories we're being told, rather forcefully. Agree or disagree, build your own or not. But don't just take empty slogans or give them a pass. All of the issues we worry about day-to-day required a peaceful and stable world order for easier and cheaper resolution. At the end of the day you really do care.
Foreign Affairs
Keeping Promises Among Partners In any partnership, the coin of the realm is trust and responsibility - in other words, saying what you mean and doing what you say. In the dramatic rescue on July 2 of 15 hostages, including three Americans, held captive for many years by guerrillas and terrorists, deep in the Colombian jungles, we saw a powerful reminder that the United States has no better partner in South America than the government and people of Colombia. Colombia's leaders, especially President Uribe, had promised us that our three abducted citizens would be treated no differently than the many Colombian men and women who shared their fate. Colombia never wavered in this promise, and never cut any side deals with the guerrillas that could have freed their citizens at the expense of ours. This was not an easy act of solidarity, but Colombia remained true to its word. More than a decade ago, with its country wracked by the worst insurgency in the hemisphere, with its economy contracting, and with its democratic state on the brink of failure, Colombia resolved to turn the tide. Its government and people set out an ambitious plan to secure and expand their country's democratic development, and they asked for our support - political, economic, diplomatic, and military. Starting under President Clinton, expanding under President Bush, and with bipartisan support in Congress all along the way, the United States has fully backed Colombia in meeting its bold promises of success. And the results speak for themselves. With the momentum of more than a decade's worth of shared progress at our backs, with Colombia on the cusp of self-sustained and lasting stability, and with Democrats and Republicans having shown that they can implement a long-term bipartisan strategy to achieve a critical national interest - the success of a democratic Colombia - now is the last time that we should begin going back on our word to Colombia. And yet that is exactly what we risk doing if Congress fails to pass the U.S.-Colombia Free Trade Agreement.
Middle East
America's U-turns in the Middle East BARACK OBAMA’S presidential-style progress through the Middle East and Europe this week stole many headlines (see article). But that should not be allowed to divert attention from some surprising policy shifts by the man who, last time we checked, was still the actual president of the United States. George Bush has just made at least one-and-a-half U-turns in the Middle East. They have serious merit. If he now makes another turn and a half, he may bequeath whoever succeeds him something unexpected: the beginnings of a decent American policy for this troubled region. Mr Bush’s first U-turn was on Iran.
Breaking up is easy to do ALWAYS incredible, Pakistan’s governing coalition sundered on Monday August 25th when its second biggest component, the Pakistan Muslim League (N) walked out. Nawaz Sharif, the PML(N)’s leader, objected, among other things, to Asif Zardari, who leads the coalition’s main member, the Pakistan People’s Party (PPP), making himself a candidate for a presidential election due on September 6th. Given a historic rivalry between them, the PPP and PML(N) always looked likely to split. But this is still a blow to a country badly in need of the political stability and co-operation that they had promised. Pakistan is facing an ever-worsening Taliban insurgency and an economy in crisis. Alas, if anyone can stop the rot, it is surely not Mr Zardari. He is among Pakistan’s most discredited politicians, having been accused of extortion and corruption on a huge scale during Ms Bhutto’s two terms in power during the 1990s.
Challenges of the Muslim World: Oil, Testosterone and War Oil and unemployed testosterone don't mix, they collide -- with war the likely result. "Economics and demographics" lack the sizzle of oil and testosterone, which as eye-grabbers are an Oprah-notch below money and sex. But in the grand sense of geo-strategy and the intricate 21st century problems that produce wars, poverty and other forms of sustained misery, economics and demographics are the fire. Anyone looking for instant soundbites won't find them in William Cooper and Piyu Yue's "Challenges of the Muslim World, Present, Future, and Past" (Elsevier, 2008). The book is not a political polemic -- it is penetrating scholarship addressing persistent, fundamental structural issues that defy polemics. It analyzes problems that disregard America's four-year presidential election cycle and utterly defy the power of any theoretical popular two-term president whose party enjoys overwhelming congressional majorities. Caesar divided Gaul into three parts. Cooper and Yue divide the Muslim world's challenges into three categories: oil, testosterone and war. OK, I'm synthesizing. The authors' three are: Consumption, Production and Location of Oil and Natural Gas; Demographic Changes and Social Instability; and History and the Contemporary Scene. The predominantly Muslim Middle East's vast oil reserves mean what happens in these Muslim lands matters and will continue to matter. The authors write, "A peaceful and stable Muslim world is key to stable and growing oil markets." However, demographic change and economic development (or lack of it) impact "world peace and prosperity." We move to sex -- growing populations and the deadly "bifurcation" between the modern and the Muslim world: "The Muslim world seems unable to improve the standard of living for the majority of its populations even with the enormous wealth generated by precious energy resources."
RUSSIA
TNK-BP: something rotten in the state of Russia With its tail between its legs, Britain's biggest company is being all but chased out of Russia. BP will try to put a brave face on the retreat of Bob Dudley, still nominally chief executive of TNK-BP, to the safety of St James's Square. But it does not look good. When you wish to assert your authority, the best way to conduct business is not by e-mail from an office thousands of miles away. If BP is to avoid a de facto transfer of management authority to Messrs Fridman, Khan, Vekselberg and Blavatnik, the partners in the AAR consortium, it will need to manufacture a settlement and it is likely to prove expensive. The consortium's actions, if not its words, suggest that its motivation in gaining control of TNK-BP is financial, rather than a keen interest in the oil-bearing sedimentary basins of Siberia. The Russian partners have attempted to cut the joint venture's capital investment in favour of higher dividends. It seems that the argument is not about control of the helm, but control of the cash box. BP's problem is that it is struggling to keep control of its investment in a country where the law enforcement system is spinning out of control. Mr Dudley's retreat comes as another foreign investor has exposed evidence of the extraordinary grip that official corruption has taken on Russia. HSBC and Hermitage Capital, the fund-management group run by Bill Browder, have alleged that senior officials in Russia's Interior Ministry stole $230 million from the Russian Treasury in an elaborate scam involving bogus documents and fabricated court cases.
Why I had to recognise Georgia’s breakaway regions On Tuesday Russia recognised the independence of the territories of South Ossetia and Abkhazia. It was not a step taken lightly, or without full consideration of the consequences. But all possible outcomes had to be weighed against a sober understanding of the situation – the histories of the Abkhaz and Ossetian peoples, their freely expressed desire for independence, the tragic events of the past weeks and international precedents for such a move. Not all of the world’s nations have their own statehood. Many exist happily within boundaries shared with other nations. The Russian Federation is an example of largely harmonious coexistence by many dozens of nations and nationalities. But some nations find it impossible to live under the tutelage of another. Relations between nations living “under one roof” need to be handled with the utmost sensitivity. After the collapse of communism, Russia reconciled itself to the “loss” of 14 former Soviet republics, which became states in their own right, even though some 25m Russians were left stranded in countries no longer their own. Some of those nations were unable to treat their own minorities with the respect they deserved. Georgia immediately stripped its “autonomous regions” of Abkhazia and South Ossetia of their autonomy.
Tsar Wars Versus Star Wars As the Russo-Georgian War's August gunfire slips into a murky September ceasefire, the Pentagon reports that the Russians "are still not living up to the terms of the ceasefire agreement." So, what does Russia want? The question intentionally echoes, "So what did Stalin want?" -- which historian John Lewis Gaddis asked then answered in his award-winning book "The Cold War: A New History." Gaddis argued Joseph Stalin wanted "security for himself, his regime, his country and his ideology, in precisely that order." These goals would also resonate in an "Old History" of Russia -- call it Tsar Wars, with Ivan the Terrible as the featured personality.
CHINA
Pee Wee, The Goat Show Kismet With China's Yao: Scott Soshnick How does one measure what Yao means to sports and societies? Yes, plural. We know what the NBA says. The league speaks in the language of T-shirts and eyeballs. As any die-hard knows, though, passion for basketball can't be measured solely in television ratings or merchandise sales. You've got to hit the street. In New York, that would mean Harlem's Rucker Park, where the likes of Pee Wee Kirkland and Earl ``The Goat'' Manigault became playground legends. In Oakland, it's Mosswood Park, where Bill Russell and Jason Kidd played before anyone knew their names. ``The street is where you find your toughness, your creativity, your identity,'' said Kidd, the elder statesman of the U.S. basketball team, which two nights ago beat Yao and host China, 101-70, in the opening game of the Beijing Olympics before a standing-room-only crowd that included U.S. President George W. Bush and another billion or so in their living rooms. Yao afterward called the matchup ``a treasure'' in his life, adding, ``I think more people will love to play basketball.'' After years of hearing NBA Commissioner David Stern trumpet Beijing as a burgeoning bastion of basketball, the Olympics provide the perfect opportunity to find if this town has street cred. So it was off to DongDan Park, which those in the know say is the Beijing equivalent of Rucker. ``Children playing is the biggest indicator that something special is happening,'' said last season's WNBA Most Valuable Player, Lauren Jackson, a member of the Australian women's team. These kids can play, all right. Pick-and-rolls. Pick-and- pops. Behind-the-back. Through-the-legs. Up-and-Under. Fade- away. Three-pointers. Reverse layups. It was obvious they were mimicking what they'd seen from their favorite NBA players, who, thanks to Yao, are on Chinese television quite a bit. One park player, 21-year-old Wang Xin, said there were no playgrounds like this in China three years ago. The boom is only starting. China said it plans to put a basketball court in every village.
A Biblical Seven Years China did not build the magnificent $43 billion infrastructure for these games, or put on the unparalleled opening and closing ceremonies, simply by the dumb luck of discovering oil. No, it was the culmination of seven years of national investment, planning, concentrated state power, national mobilization and hard work.Seven years ... Seven years ... Oh, that’s right. China was awarded these Olympic Games on July 13, 2001 — just two months before 9/11. As I sat in my seat at the Bird’s Nest, watching thousands of Chinese dancers, drummers, singers and acrobats on stilts perform their magic at the closing ceremony, I couldn’t help but reflect on how China and America have spent the last seven years: China has been preparing for the Olympics; we’ve been preparing for Al Qaeda. They’ve been building better stadiums, subways, airports, roads and parks. And we’ve been building better metal detectors, armored Humvees and pilotless drones. The difference is starting to show. Just compare arriving at La Guardia’s dumpy terminal in New York City and driving through the crumbling infrastructure into Manhattan with arriving at Shanghai’s sleek airport and taking the 220-mile-per-hour magnetic levitation train, which uses electromagnetic propulsion instead of steel wheels and tracks, to get to town in a blink. Then ask yourself: Who is living in the third world country? Yes, if you drive an hour out of Beijing, you meet the vast dirt-poor third world of China. But here’s what’s new: The rich parts of China, the modern parts of Beijing or Shanghai or Dalian, are now more state of the art than rich America. The buildings are architecturally more interesting, the wireless networks more sophisticated, the roads and trains more efficient and nicer. And, I repeat, they did not get all this by discovering oil. They got it by digging inside themselves.
The Real China Threat Obsessed with rankings, Americans are bound to see the Beijing Olympics as a metaphor for a larger and more troubling question. Will China overtake the United States as the world's biggest economy? Well, stop worrying. It almost certainly will. China's economy is now only a fourth the size of the $14 trillion U.S. economy, but given plausible growth rates in both countries, China's output will exceed America's in the 2020s, projects Goldman Sachs. But this is the wrong worry. By itself, a richer China does not make America poorer. Indeed, because there are so many more Chinese than Americans, average Chinese living standards may lag behind ours indefinitely. By Goldman's projections, average American incomes will still be twice Chinese incomes in 2050. The real threat from China lies elsewhere. It is that China will destabilize the world economy. It will distort trade, foster huge financial imbalances and trigger a contentious competition for scarce raw materials. Symptoms of instability have already surfaced, and if they grow worse, everyone -- including the Chinese -- may suffer. The chief sources of global strife have been ideology, nationalism, religion and ethnic conflict. Economics could now join this list, because the balance of power is shifting. The United States was the old order's main architect, and China is a rising power of the new. Their approaches contrast dramatically. Economically dominant after World War II, the United States defined its interests as promoting the prosperity of its allies. The aims were to combat communism and prevent another Great Depression. Countries would make mutual trade concessions. They would not manipulate their currencies to gain advantage. Raw materials would be available at non-discriminatory prices. These norms were mostly honored, though some countries flouted them (Japan manipulated its currency for years). China's political goals differ. High economic growth and job creation aim to raise living standards and absorb the huge rural migration to expanding cities. Economist Donald Straszheim of Roth Capital Partners estimates the urban inflow at about 17 million people annually. As he says, China sees export-led economic growth as a magnet for foreign investment that brings modern technology and management skills. Prosperity is considered essential to maintaining public order and the Communist Party's political monopoly.
INDIA
India Sounds `Death Knell' for Jobs With Perks: Andy Mukherjee Among the many surviving relics of India's socialist past, the most prominent are the Soviet-style five-year plans that the government still insists on producing. The 11th plan was recently unveiled, when almost 1 1/2 years -- or 30 percent -- of the period it seeks to cover have already lapsed. So much for timeliness. Even the usefulness of the planners' advice to the policy makers is suspect because the latter probably don't even bother to listen carefully to what the former has to say. Take the issue of job creation. Planners are highlighting the need to create decent jobs -- those that come with social security and other benefits. Policy makers are doing exactly the opposite. In its report, the Planning Commission devoted a good deal of attention to what it calls ``informalization'' of employment. Statistics collected by a government-appointed advisory panel show that from 2000 to 2005, the Indian economy added 61 million jobs. Tiny enterprises, employing 10 or fewer workers, accounted for 52 million of these new opportunities. Even the remaining 9 million people hired by larger companies were offered ``informal'' employment with no benefits or social security. These findings perhaps exaggerate the extent of informalization. Based on consumption trends -- such as a 15-fold growth in mobile-phone subscribers in the past five years -- it's hard to believe that the fast-growing Indian economy is only producing poor-quality jobs. Forcing tiny enterprises to create formal employment isn't a pro-labor move. A more honest and effective approach would be to ease the country's labor laws. This will create an incentive for companies to increase the scale of their operations to a point where they can absorb the social-security costs out of the benefits that they derive from being legally aboveboard. For a relic of socialism, the Planning Commission is offering sage advice. Both the quantity and quality of employment need to rise in India. That's the only way to keep inequality under control and raise living standards quickly for all.
Letter from India Anand Giridharadas: In India, idealism falters in the face of power. India was a country of ideas in its youth. At its moment of independence, 61 years ago on Friday, Jawaharlal Nehru declared that its dreams "are for India, but they are also for the world." India championed decolonization, nonalignment and disarmament around the world; it earned a reputation for haranguing philosophical lectures at the United Nations. In the salons of Delhi and Mumbai, an educated class that had come of age as freedom came to India spent long evenings debating the world and their place in it. But in those days India was all ideas and no power. Today the situation is reversed. If one mingles with its affluent, reads its newspapers, observes its politics, roams its campuses, one sees in India what affluence has wrought: a turning inward, a slow-burn privatization of concern. This is globalization's great irony: It gives you influence in the world but then, with its gadgets and gizmos, distracts you from using it. One can understand this turning inward. India has long been a land of external restraints. Families told you whom to marry, what to study, where to work. Bureaucrats told you whether you could get a phone line or start a business. A caste determined the amount of respect you could command. Today millions of Indians, from maidservants to doctors, are revolting against those destinies. They share a new belief in the power of self-contained individuals: a belief that individuals must not slight elders but must no longer depend on them; must not forget their roots but must now stray from them; must not crave a government job like their fathers but must now survive as though the state did not exist. And, in relying ever more on themselves, this group of Indians relies ever less on India.
EUROPE
Would you pass the Kinnock Test? The British voter never gets it wrong. At every election in the past 80 years the right party has won. The Kinnock Test is this - do you, on reflection, think it would have been a good idea for the country if Neil Kinnock had been elected Prime Minister in 1992? You see, for all that the Conservatives fell apart in the 1992 parliament, I still think it was clear that a Kinnock government would have been worse. No one needs to tell me how bad things got by 1997, because I was there (I always insist on the retention of that comma). But still I assert with confidence that the voters did the right thing putting the Conservatives back in power. Neil Kinnock was entirely unsuited to being Prime Minister. His endless whirling speeches showed that. As John Major pricelessly commented, as Kinnock didn't know what he was saying, he never knew when he had finished saying it. And alongside this unsuitability was Labour's programme, still only partly modernised and containing a ragtag of unfunded spending promises and threats of greater regulation. Some Blairites understand this. The Kinnock Test is thus an important way of classifying Blairites. A Blairite who thinks Kinnock would have been a good prime minister must believe that Blair's changes were mainly necessary in order to get elected. A Blairite who passes the Kinnock Test accepts that Blair's changes were required in order for Labour to be fit to govern. There is quite a big difference between those two positions. As I pestered my centre left friends, one of them provided a striking response. Not only, he said, did the electorate get it right in 1992, he couldn't think of a single election since universal suffrage in 1928 where the voters had got the election wrong. And you know what? I think my friend has got a point. The proposition is that in every contest in these last 80 years the party that was more fit to govern has been victorious. Sometimes both of the main offerings were weak and unappealing, often the winner wasn't much good, but always the winner was better able to conduct the business of government than was the loser.











