The American economic guru explains how he missed the signs that the economy was going off a cliff during the decade he was chairing "the Fed," the body that functions as the U.S. central bank. A strong believer that markets can self-regulate thanks to the enlightened self-interest of the players, he failed to recognize the danger signals of the U.S. financial collapse that also engulfed Europe.
Europe's worst energy vulnerability - natural gas - has environmental implications. Without more supplies, power for growth is likely to be fueled by coal and accelerate global warming. Russia could export more gas (and flare less) if the Kremlin broke up the domestic pipeline monopoly enjoyed by Gazprom. Europe could use its "competition authority" to challenge it.
Gazprom, the Russian monopoly, has been on a shopping spree to acquire commercial interests (and political leverage) in "downstream" gas and energy companies and distributors in Europe. Here is a partial list of those European holdings gleaned from the chapter entitled "Buying Europe: Purchase as Politics" in a new book on this monopolistic strategy by Janusz Bugajski.
A practitioner in the oil and gas business warns that Europe's worst weakness regarding natural gas supplies comes from the absence of a free internal market in natural gas among the EU nations. Freeing up the flows in Europe would drastically reduce the rigidities that Gazprom exploits. A good investment would be gas storage facilities, but such infrastructure is costly.
Responding to the emergence of a "new" sea as ice recedes in the Arctic, the Nordic Council has started planning for broader and more integrated systems that can monitor traffic and provide early-warning of accidents. Politically, this will be a precedent in bringing together NATO nations, EU countries and neutrals - with the potential for wider links that might include Russia.
Obama's dazzling digital success is often reduced to his use of the web to mobilize voters. That was simply using new technology for an old process. The real innovation is much more radical, involving new forms of social networking and bottom-up pressures for "participatory democracy." Leaders need a new mind-set. The paradigm shift should be grasped in Europe, too.
Following his acceptance of The European Institute\'s Transatlantic Leadership Award at a December 2008 ceremony in Washington, DC, Chertoff sat down with European Affairs to reflect on his relations with European governments - which proved much more productive than many observers initially feared. He also shared his views on future challenges from Guantanamo to failed states, including the need for a new consensus on dealing with states that tolerate international terrorists on their soil.
Savage Century: Back to Barbarism By Thérèse Delpech, Translated By George Holoch Carnegie Endowment for International Peace, 211 pages, $21.24 Reviewed by William J. Peterson Jr.