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4901. The Impact of Macroeconomic Announcements on Real Time Foreign Exchange Rates in Emerging Markets

Author:
Fang Cai and Hyunsoo Joo
Publication Date:
05-2009
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This paper utilizes a unique high-frequency database to measure how exchange rates in nine emerging markets react to macroeconomic news in the U.S. and domestic economies from 2000 to 2006. We find that major U.S. macroeconomic news have a strong impact on the returns and volatilities of emerging market exchange rates, but many domestic news do not. Emerging market currencies have become more sensitive to U.S. news in recent years. We also find that market sentiment could sway the impact of news on these currencies systematically, as good (bad) news seems to matter more when optimism (pessimism) prevails. Market uncertainty also interacts with macroeconomic news in a statistically significant way, but its role varies across currencies and news.
Topic:
Emerging Markets, Exchange Rate Policy, and Macroeconomics
Political Geography:
North America and United States of America

4902. Wage and Employment Effects of the Olympic Games in Atlanta 1996 Reconsidered

Author:
Arne Feddersen and Wolfgang Maennig
Publication Date:
05-2009
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
We estimate the economic effects of the 1996 Atlanta Olympic Games. Our difference in difference model checks for serial correlation and allows for a simultaneous test of level and trend effects, but otherwise follows HOTCHKISS, MOORE, & ZOBAY (2003) in this journal. We were not able to reconfirm their finding that the Games had significant positive employment effects. We do, however, reaffirm their result of no significant wage effects.
Topic:
Economics, Employment, Sports, Olympics, and Wages
Political Geography:
North America and United States of America

4903. The U.S.-Japan Alliance: President Obama’s First 100 Days

Author:
Randall Schriver and Mark Stokes
Publication Date:
01-2009
Content Type:
Working Paper
Institution:
Project 2049 Institute
Abstract:
Befitting for a prominent ally, Secretary of State Hilary Clinton waited only a day to establish communication with her counterpart in Japan. While the gesture is surely appreciated in Tokyo, and the symbolism was not lost in Washington, the messages revealed little about the Administration’s intentions (if any) to take concrete steps to enhance the alliance.
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, and Barack Obama
Political Geography:
Japan, Asia, North America, and United States of America

4904. The Taiwan Quadrennial Defense Review: Implications for U.S. – Taiwan Relations

Author:
Julia Famularo
Publication Date:
06-2009
Content Type:
Special Report
Institution:
Project 2049 Institute
Abstract:
Although the recent cross-Strait political climate has improved, the People’s Republic of China (PRC) has steadfastly refused to renounce the use of force against Taiwan while shifting the cross-Strait military balance in its favor. Faced with such challenges, the Taiwan Quadrennial Defense Review is meant to increase military transparency while convincing Taiwanese legislators, the Chinese PLA, and U.S. policy makers and analysts alike that the Ministry of National Defense is firmly dedicated to creating new strategies and engaging in reforms that will prepare the military for future challenges.
Topic:
Foreign Policy, Defense Policy, Bilateral Relations, and Military Affairs
Political Geography:
China, Taiwan, Asia, and United States of America

4905. The Great Game in Space: China’s Evolving ASAT Weapons Programs and Their Implications for Future U.S. Strategy

Author:
Ian Easton
Publication Date:
06-2009
Content Type:
Working Paper
Institution:
Project 2049 Institute
Abstract:
If there is a great power war in this century, it will not begin with the sound of explosions on the ground and in the sky, but rather with the bursting of kinetic energy and the flashing of laser light in the silence of outer space. China is engaged in an anti-satellite (ASAT) weapons drive that has profound implications for future U.S. military strategy in the Pacific.
Topic:
Military Strategy, Weapons, Space, and Satellite
Political Geography:
China, Asia-Pacific, and United States of America

4906. China’s Evolving Conventional Strategic Strike Capability: the anti-ship ballistic missile challenge to U.S. maritime operations in the Western Pacific and beyond

Author:
Mark Stokes
Publication Date:
09-2009
Content Type:
Working Paper
Institution:
Project 2049 Institute
Abstract:
China’s anti-ship ballistic missile (ASBM) challenge could alter the strategic landscape in the Asia-Pacific region and beyond. An effective ASBM and supporting maritime surveillance network would diminish the effectiveness of carrier-based assets, such as the F/A-18 E/F.
Topic:
Military Strategy, Armed Forces, Weapons, and Maritime
Political Geography:
China, Asia-Pacific, and United States of America

4907. To Curtail the Iranian Nuclear Threat, Change Tehran's Threat Perceptions

Author:
Greg Thielmann
Publication Date:
04-2009
Content Type:
Policy Brief
Institution:
Arms Control Association
Abstract:
Iran’s pursuit of nuclear technology, and possibly nuclear weapons, stems from its complicated threat environment and the historical grievances it harbors concerning the United States. Tehran now faces large numbers of U.S. troops in its neighbors to the west and east with few regional allies. The most productive path for averting nuclear weapons development in Iran is for Washington to seek to alter Iran’s threat perceptions.
Topic:
Arms Control and Proliferation, National Security, and Nuclear Weapons
Political Geography:
Iran, Middle East, and United States of America

4908. Strategic Missile Defense: A Reality Check

Author:
Greg Thielmann
Publication Date:
05-2009
Content Type:
Policy Brief
Institution:
Arms Control Association
Abstract:
Strategic Missile Defense offers no real disincentive for rogue regimes such as North Korea or Iran to develop or use ballistic missiles, nor does it offer any protection against the more acute threat of terrorist groups smuggling weapons of mass destruction into the United States. Instead, the aggressive pursuit of strategic missile defense makes it more difficult to constrain the potential offensive nuclear threat from Russia and China.
Topic:
Arms Control and Proliferation, Nuclear Weapons, Terrorism, and Missile Defense
Political Geography:
Russia, China, Iran, North Korea, and United States of America

4909. Preventive Military Action: The Worst Way to Deal With Iran's Nuclear Program

Author:
Greg Thielmann
Publication Date:
06-2009
Content Type:
Policy Brief
Institution:
Arms Control Association
Abstract:
Although the possibility of Iranian nuclear weapons is a major concern for Israel and the United States, leaving the "military option" on the table is counterproductive. Preventive military action by either country against Iran's nuclear facilities would only delay, rather than halt, Tehran's nuclear program, and it would cause Iran to retaliate against the United States as well as Israel. The aftermath of such an attack would be disastrous for the U.S. position in the region-particularly for relations with Israel and with Iraq-and its position in the wider world.
Topic:
Arms Control and Proliferation, Nuclear Weapons, and Military
Political Geography:
Iran, Middle East, Israel, and United States of America

4910. Is There Time to Prevent an Iranian Nuclear Weapon?

Author:
Greg Thielmann
Publication Date:
09-2009
Content Type:
Policy Brief
Institution:
Arms Control Association
Abstract:
The Obama administration has identified September as a time for reassessing its approach to negotiation with Tehran over Iran's nuclear program. It is imperative that this reassessment is based on a realistic appraisal of Iran's weaponization capabilities and limitations and not fall prey to politically motivated hyperbole. Iran's nuclear program is undeniably bringing that country closer to an ability to construct nuclear weapons-bad news for the region, the United States, and the world. Yet, a nuclear-armed Iran is years, not months, away, which is ample time for negotiating an outcome that prevents Iran from becoming a nuclear-weapon state while strengthening the nuclear Nonproliferation Treaty.
Topic:
Diplomacy, Nuclear Weapons, Negotiation, and Nonproliferation Treaty (NPT)
Political Geography:
North America and United States of America

4911. Dealing With Long-Range Missile Threats: It's All About Russia

Author:
Greg Thielmann
Publication Date:
11-2009
Content Type:
Policy Brief
Institution:
Arms Control Association
Abstract:
The nearly 2,000 nuclear warheads on Russian ICBMs and submarine-launched ballistic missiles constitute the sole near-term existential threat to the United States. The U.S. response to this threat has been to maintain the nuclear war-fighting posture adopted during the Cold War. Yet, this posture does not lead toward an improvement in U.S. security; it merely reinforces Russia’s incentive to persist in its own anachronistic security calculus. The New START and a transformational post-Cold War Nuclear Posture Review would clear the path for major U.S. and Russian arms reductions, laying the foundation for a rejuvenated effort to halt nuclear nonproliferation and for engaging other nuclear-weapon states in arms control.
Topic:
Arms Control and Proliferation, National Security, Nuclear Weapons, and Missile Defense
Political Geography:
Russia and United States of America

4912. Chinese Mine Warfare: A PLA Navy 'Assassin's Mace' Capability

Author:
Andrew S. Erickson, William S. Murray, and Lyle J. Goldstein
Publication Date:
06-2009
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
After a lengthy hiatus-lasting nearly six centuries—China is reemerging as a maritime power, this time with an emphasis on undersea warfare. Between 1996 and 2006, the Chinese navy took delivery of more than thirty submarines. These vessels include two new classes of nuclear submarines-the advanced Song-class diesel submarines and the Yuan class of diesel boats which, according to some reports, was a surprise for U.S. intelligence. Above and beyond this ambitious naval construction pro- gram, the People's Republic of China (PRC) received during 2005-06 an additional eight formidable Kilo-class submarines (and associated weaponry), which were purchased in 2002, to add to the four it already operated. A new nuclear submarine base on Hainan Island may well herald a new era of more extended Chinese submarine operations.
Topic:
Armed Forces, Navy, Submarines, and Mine Warfare
Political Geography:
China, Asia, and United States of America

4913. The Iranian Intentions behind Joining the Shanghai Cooperation Organization

Author:
Michael Bell and Mahjoob Zweiri
Publication Date:
04-2008
Content Type:
Policy Brief
Institution:
Center for Strategic Studies (CSS)
Abstract:
China welcomed Iran’s desire to strengthen cooperation in all spheres with the Shanghai Cooperation Organization (SCO) following its official application in April 2007 to become a full member. With the SCO currently growing into strategic alliance between several of the worlds leading energy producers and two of its most hungry consumers; the United States saw an opportunity to establish itself in the region and therefore lobbied for observer status in 2005, however the request was denied. Since then, we have seen the SCO assume an ideological mantle of growing anti-Americanism. Committed to establishing a new international political and economic order, the association of East Asian states known as the SCO was founded as an intergovernmental organization in Shanghai on15th June, 2001. Its six founding countries; China, Russia Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, with Iran, Mongolia and Pakistan holding roles as country observers, have asppired to mitigate the influence of US power in the region, therefore Iran’s application for full membbership has crucial, and possibly underlying aspects to its reasoning. Therefore we would like to present some information about the SCO to specifically present the benefits Iran would gain by full membership.
Topic:
Energy Policy, International Cooperation, Economy, and Shanghai Cooperation Organization (SCO)
Political Geography:
China, Iran, Middle East, Asia, and United States of America

4914. Unprecedented Projected Nuclear Growth in the Middle East: Now Is the Time to Create Effective Barriers to Proliferation

Author:
David Albright and Andrea Scheel
Publication Date:
11-2008
Content Type:
Special Report
Institution:
Institute for Science and International Security
Abstract:
Large civil plutonium stocks are set to accumulate for the first time in the wider Middle East over the next two decades. Countries in this conflict-prone region are planning the construction of at least 12 to 13 new nuclear power reactors (Table 1). Using a simple calculation to determine the expected plutonium discharge annually from these reactors, ISIS estimates that regional civil plutonium production could total more than 13,000 kilograms, or 13 tonnes by 2020, and nearly 45 tonnes by 2030 (Table 2). Given that just 8 kg of plutonium is enough to fabricate a nuclear weapon, this figure is significant. These quantities indicate that by 2020 the region may possess enough plutonium for almost 1,700 nuclear weapons. To be usable in a nuclear weapon, this plutonium must first be separated from the irradiated fuel in reprocessing plants. Middle Eastern countries may seek to purchase civil reprocessing plants from suppliers or build them using their domestic capabilities and equipment purchased from abroad. To reduce the risk of proliferation in the Middle East and help lay the basis for a regionwide nuclear weapon free zone (NWFZ), the United States must ensure that plutonium is not separated from irradiated reactor fuel, insist on adequate international inspections of these countries, including the adoption of the Additional Protocol, and develop mechanisms to remove spent fuel from the region. Absent such conditions, the incoming administration should discourage the development of nuclear power.
Topic:
Nuclear Weapons, Treaties and Agreements, and Nonproliferation
Political Geography:
Middle East and United States of America

4915. From the ‘‘Red Juggernaut’’ to Iraqi WMD: Threat Inflation and How It Succeeds in the United States

Author:
Jeffrey M. Cavanaugh
Publication Date:
01-2008
Content Type:
Journal Article
Journal:
Political Science Quarterly
Institution:
Academy of Political Science
Abstract:
JEFFREY M. CAVANAUGH analyzes the process of ‘‘threat inflation’’ in the United States by examining three positive cases and one negative case of threat inflation since 1945. He concludes that successful threat inflation and hawkish policies stem from the interaction of several factors.
Topic:
Foreign Policy, Weapons of Mass Destruction, and Threat Perception
Political Geography:
Iraq, Middle East, North America, and United States of America

4916. A Solution for the US–Iran Nuclear Standoff

Author:
William Luers, Thomas R. Pickering, and Jim Walsh
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
The recent National Intelligence Estimate’s conclusion that Tehran stopped its efforts to develop nuclear weap- ons in 2003, together with the significant drop in Iranian activity in Iraq, has created favorable conditions for the US to hold direct talks with Iran on its nuclear program. The Bush administration should act on this opportunity, if for no other reason than that its current position is growing weaker, and without such an initiative, Iran will continue its efforts to produce nuclear fuel that might, in the future, be used to build nuclear weapons. Currently, Iran has approximately three thousand centrifuges, which it has used to produce small test batches of uranium that has been enriched to a low level (which cannot be used for nuclear weapons). Until now, Iranian engineers have not successfully operated a centrifuge cas- cade (a collection of centrifuges working together) at full capacity—which, as a practical matter, would be needed to enrich nuclear fuel to the level necessary either to establish an effective nuclear energy program or to manufacture nuclear weapons. But the Iranian government has declared its ambition to build more than 50,000 centrifuges, and recent reports also suggest that Tehran is testing a modified “P-2” centrifuge, a more advanced version of its existing centrifuge technology, which can produce a larger volume of enriched uranium. We propose that Iran’s efforts to produce enriched uranium and other related nuclear activities be conducted on a multilateral basis, that is to say jointly managed and operated on Iranian soil by a consortium including Iran and other governments. This proposal provides a realistic, work- able solution to the US–Iranian nuclear standoff. Turning Iran’s sensitive nuclear activities into a multinational program will reduce the risk of proliferation and create the basis for a broader discussion not only of our disagreements but of our common interests as well.
Topic:
Diplomacy, Nuclear Weapons, Military Strategy, and Peace
Political Geography:
Iran, Middle East, North America, and United States of America

4917. Wilson and the Founders: The Roots of Liberal Foreign Policy

Author:
Ted Widmer
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
We can’t do much better than reclaiming the Declaration of Independence as a fundamental foreign policy document in American history. We have a tendency to read it in a simplistic way, and to think of it only as a sort of airy declaration of what were then human rights, and a declaration of separation from England. But, in fact, the founders had a fairly well-articulated sense of what they were doing with foreign policy, and a fairly revolutionary sense of their foreign policy. So I’m quite interested in how Woodrow Wilson rediscovers the founders and makes them relevant for his time. This thinking about Wilson began for me about ten years ago when I came to be a speechwriter in the second term of Bill Clinton’s presidency. I was quite interested in which presidents were considered historically interesting to Clinton and quickly figured out it was John F. Kennedy, obviously, and Franklin D. Roosevelt. a little less obviously, and Teddy Roosevelt, who was a huge influence on Bill Clinton, and always has been. It was a time in the 1990s when a lot of very favorable books were coming out about Teddy Roosevelt, and it was an attractive time to be thinking about him. At the same time, I felt Wilson was completely ignored. I don’t remember Clinton ever talking about Wilson. In the collected speeches of Bill Clinton—it’s something like eighteen very fat volumes, the man enjoys speaking—if we looked up Wilson, I’m sure we could find a few references, but very few.
Topic:
Foreign Policy, International Cooperation, Military Strategy, and Liberalism
Political Geography:
North America and United States of America

4918. Wilson, Bush, and the Evolution of Liberal Foreign Policy

Author:
Tony Smith
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
The first subject to discuss in considering the future of the liberal inter- nationalist agenda is the importance of the democratization project to the definition of Wilsonianism. The second is the meaning of multilat- eralism. In the first case, Thomas Knock and Anne-Marie Slaughter argue in a forthcoming volume that democratization was never an important part of Wilsonianism; that, instead, multilateralism is the key to liberal interna- tionalism. On the basis of this argument, they come to the conclusion that the Bush Doctrine is not in the Wilsonian tradition. In my contribution to this volume,1 I object to this denigration of the place of democracy in liberal internationalism as being fundamentally illogical. Accordingly, I find the Bush Doctrine easily identifiable as Wilsonian. I argue for the centrality of democracy to the Wilsonian project because it seems clear that the microfoundations for a regime in society are critical to the ability of those states that participate in multilateral organizations to do so effectively. That is, in order to function effectively, ultimately to provide for a peaceful world order, a multilateral organization needs to be dominated by democratic states, known for their rule-abiding behavior, their transparency, predictability, and accountability. Wilson wanted the League of Nations to be a League under the control of democracies and concerned with expanding this form of government,2 but then in late February 1919 at Versailles, he abandoned that idea. From a liberal internationalist perspective, the result of the League’s character was that it was undermined not only by the failure of the United States to join, but also by the role played in it by autocratic states. It is worth adding that in his drafts of the Pan American Union some three years earlier, Wilson had also looked forward to a community of American states based on the consent of the governed. In a word, a world of peace was necessarily a world dominated by what today is often called “market democracies,” a type of social, economic, and political order that Wilson argued was fundamentally different from and better than any alternative order. In such an order the place of democratic governments was central.
Topic:
Foreign Policy, Military Strategy, Leadership, and Liberalism
Political Geography:
North America and United States of America

4919. Wilson’s Radical Vision for Global Governance

Author:
Erez Manela
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
In recent years, Woodrow Wilson has returned to feature promi- nently in the public discourse on the role of the United States in the world. For students of U.S. foreign relations, this is hardly a sur- prising development. Wilson was responsible for articulating a vision of the U.S. role in the world—usually described as “liberal interna- tionalism”—that has remained, despite well-known flaws and scores of critics over the years, dominant in shaping American rhetoric and self-image, if not always policies, vis-à-vis the rest of the world. Competing foreign policy postures, such as isolationism or “national interest” realism, have surely been influential in particular eras and contexts. But they have failed to match the ideological and popular appeal of liberal internationalism, which has echoed so compellingly the most basic ideas many Americans hold about who they are, what their country is about, and what it should stand for in the world.
Topic:
Foreign Policy, Governance, Leadership, and Liberalism
Political Geography:
North America and United States of America

4920. Iran-U.S.: The Case for Transformation

Author:
Sanam Naraghi-Anderlini and John Tirman
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
Thirty years of enmity, disruption, and brinksmanship have yielded very little worthwhile in the relationship between Iran and the United States. The policies in both capitals toward the other are essentially bankrupt and dysfunctional. Each clings to their quiver of grievances against the other, letting the past dictate the future to the detriment of both countries. It may be time to turn this animus on its head—seeking a broad accommodation— and an opportunity for transformational diplomacy. While ample sources of suspicion and distrust have fed this simmering hostility, these sources do not warrant the war footing, attempts at isolation, political violence, and rhetoric of a looming Armageddon that mark the U.S.-Iran tangle. Both countries suf- fer high costs stemming from the confrontation. These two major states, one far more powerful than the other, are bound to compete and test each other, but in a region rife with instability, they also need each other. Iranians are weary of the cacophony of hatred. In America, the Iraq war is still a nightmare and the public is in no mood for more. A comprehensive concordat instead would serve the U.S. and Iran and help steady a very rickety part of the world. What the change is and how it is engineered are crucial, however. There is an appli- cable lesson from diplomatic history: bold and sweeping transformation may be prefera- ble—more successful and, paradoxically, easier to engineer—to small, incremental steps. Whether there is the political acumen in the leadership of either country to initiate such transformative diplomacy is arguable. But the logic of a new concordat is powerful, especially if seen through an unemotional lens of national interests and the security of the United States and Iran.
Topic:
Diplomacy, International Cooperation, Conflict, and Peace
Political Geography:
Iran, Middle East, North America, and United States of America

4921. Does the “Surge” Explain Iraq’s Improved Security?

Author:
Jon R. Lindsay
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
Sen. John McCain has long advocated “sustained and substantial” troop increases,1 attacking Sen. Barack Obama’s position on drawing down forces. Obama for his part recently stated that the surge has “succeeded in ways that nobody anticipated” and “beyond our wildest dreams.”2 Lt. Gen. Ray Odierno, commander of Multi- National Corps Iraq during the surge, told a Heritage Foundation audience in March 2008, “I think it’s safe to say that the surge of Coalition forces—and how we employed those forces—have broken the cycle of sectarian violence in Iraq.”3 While the surge was quite controversial in its inception,4 it now seems that “success has a thou- sand fathers.” Indeed, since the deployment starting in January 2007 of an additional 30,000 troops (five addi- tional Army brigades primarily in and around Baghdad and 4,000 Marines in Anbar Province, rising to a high-water mark of 171,000 U.S. troops in Iraq by October 2007), the drop in vio- lence has been remarkable. From December 2006 to August 2008, monthly insurgent-initiated attacks have dropped from over 5,600 to 800, U.S. troop fatalities from 112 to 23, and Iraqi civilian fatalities from 3,500 to 500. Even though we’re hardly out of the woods, the troop surge is clearly correlated with a major decrease in violence.5 Correlation, of course, is not causation. Lt. Gen. Odierno is right to highlight the employment of surge forces in addition to the increase in their numbers. The renewed focus on providing security to the Iraqi population—by pushing troops out of sprawling Forward Operating Bases and proactively controlling movement within major cities—has truly been a change for the bet- ter. Nevertheless, there are factors above and beyond additional troops and better counter-insur- gency tactics that may account for the drop in violence. These include the Sunni Awakening movements that emerged in Anbar province prior to the surge, the tragic efficacy of sectarian killing in 2006, the Shia Mahdi Army cease-fire announced and renewed by Moqtada al-Sadr, and operations by other U.S. organizations not associated with the surge.
Topic:
Security, Foreign Policy, Defense Policy, and Military Strategy
Political Geography:
Iraq, Middle East, North America, and United States of America

4922. The U.S. and Iran in Afghanistan: Policy Gone Awry

Author:
Barnett R. Rubin and Sara Batmanglich
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
Afghanistan is one of several contexts in which the long-term common interests of the U.S. and Iran have been over- shadowed by the animus originating in the 1953 CIA-led coup in Iran and the Iranian revolution of 1979, to the detriment of the interests of the U.S., Iran, and Afghanistan. This confronta- tion has served the interests of the Pakistan military, Taliban, and al-Qaida. Re-establishing the basis for U.S.-Iranian cooperation in Afghanistan would provide significant additional leverage over Pakistan, on whose territory the leadership of both the Taliban and al-Qaida are now found. During the first half of the Cold War (until the 1978 coup in Afghanistan and the 1979 revolution in Iran), Afghanistan was a non-aligned country with a Soviet-trained army wedged between the USSR and U.S. allies. In the 1970s, under the Nixon Doctrine, the U.S. supported efforts by the Shah of Iran to use his post-1973 oil wealth to sup- port efforts by Afghan President Muhammad Daoud to lessen Kabul’s dependence on the USSR. This ended with the successive overthrow of both Daoud and the Shah in 1978 and 1979. A U.S. close partnership with Saudi Arabia and Pakistan emerged as the primary means of maintaining U.S. influence in the Persian Gulf and its eastern flank. Support for Sunni Islamists in Afghanistan and an Islamist-oriented military regime in Pakistan formed parts of this strategy to repulse the USSR from its occupation of Afghanistan, begun in late 1979, and to isolate Iran.
Topic:
Security, Foreign Policy, Military Strategy, and Leadership
Political Geography:
Afghanistan, Iran, Middle East, North America, and United States of America

4923. The Global Financial Crisis and Obstacles to U.S. Leadership

Author:
David Singer
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
The regulatory environment in the U.S., however, is likely to change. The Treasury’s blueprint calls for the disman- tling of OTS, the enhancement of the Fed’s supervisory authority, and the creation of a national insurance regulator to replace the 50 separate regulators. Regulatory consolida- tion in the U.S. might be the most important catalyst for the creation of new international regulatory standards in banking. Consider the immense challenges of creating a global standard—which most likely cannot occur without U.S. support—when the agencies within the U.S. are at odds with one another! Ironically, U.S. investment banks themselves may have cleared one obstacle to international coopera- tion: the remaining free-standing securities firms (Goldman Sachs and Morgan Stanley) have opted to transform themselves into bank holding companies. This move reduces the SEC’s influence and gives the Fed a more uniform role in supervising financial institutions. Nevertheless, there is still consider- able fragmentation in the regulation of a range of activities that clearly have an important bearing on the stability of the banking system. If today’s financial crisis triggers the institutional consolidation of domestic financial regulation, then fruitful international negotiations will be more likely in the future. But until such consolidation occurs, the welter of U.S. regulatory agencies will face considerable obstacles in addressing the complicated inter- actions between banking, disintermediation, and capital markets that are at the root of today’s financial crisis. And the fragmentation of accountability among regulators and policymakers will continue to hamper U.S. leadership in preventing such a terrible crisis from happening again.
Topic:
Governance, Regulation, Financial Institutions, and Banking
Political Geography:
North America and United States of America

4924. Recovering the Liberal Foreign Policy Tradition

Author:
Nick Bromell and John Tirman
Publication Date:
11-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
Over the course of the seemingly endless 2008 electoral campaign, Barack Obama chose not to formulate a coherent and distinctive foreign policy. Aside from calling for a redeployment of military resources from Iraq to Afghanistan and expressing a greater willingness to open talks with countries like Iran, he never explained to voters exactly how he would manage foreign affairs differently from John McCain or, for that matter, from George W. Bush.
Topic:
Foreign Policy, Leadership, Liberalism, and Transition
Political Geography:
North America and United States of America

4925. State-Building and U.S. Foreign Policy

Author:
Jeremy Allouche
Publication Date:
11-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
Since the early 1990s, state-building has become an important objective of American foreign policy. This can be explained by the fact that failed states have been perceived since the end of the Cold War as a major security concern. Under the Clinton administration, failed states were qualified as major threats to global security.
Topic:
International Relations, Foreign Policy, Hegemony, and State Building
Political Geography:
North America and United States of America

4926. New York City's Preparedness for Terrorism (and Catastrophic Natural Disasters)

Author:
Clark Kent Ervin
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Sooner or later, somewhere or other, another natural disaster will strike America, be it a hurricane, a tornado, an earthquake, or a flood. Sooner or later, somewhere or other, terrorists will attempt to strike America again. Indeed, many experts believe that the threat of another attack is rising. 1 Al Qaeda is resurgent, having reconstituted itself along the Afghan-Pakistan border. 2 And, recent history shows that terrorists are especially prone to strike during the transition from one administration to another or early in the term of a new government. Adding to our vulnerability, the nation is now bogged down in two wars and groaning under mounting debt, while our economy is sinking from the greatest financial crisis since the Great Depression.
Topic:
Security, Natural Disasters, Financial Crisis, and Al Qaeda
Political Geography:
Pakistan, Afghanistan, and United States of America

4927. Sunni and Shi'a Terrorism: Differences that Matter

Author:
Thomas F. Lynch III
Publication Date:
12-2008
Content Type:
Working Paper
Abstract:
There are significant and little appreciated differences in the trajectory of Sunni extremist terrorism and that of Shi’a extremism. The differences exist across six key areas that impact American policy considerations, especially in light of steadily escalating tensions with Iran. First and foremost, Sunni radicals and Shi’a extremists differ in the overall approach and main objectives for their use of terror. The former tend to operate in a continuous, mid‐to‐high intensity manner, seeing war against infidels and apostates as a perennial condition featuring overlapping waves. Outside of an ongoing and seemingly open‐ended campaign against Israel, terrorist attacks by Shi’a groups have by and large featured discrete terror campaigns tethered to state and organizational objectives. Second, Sunni terrorists and Shi’a extremists manifest different patterns for recruiting terrorist operatives and developing terrorist missions. Shi’a terrorists, unlike their Sunni counterparts, enjoy direct state support and for that reason are far more likely to originate from Iranian embassies, consulates and state‐run businesses. Third, despite holding a minority viewpoint within the wider Sunni Islamic community, Sunni extremists, especially Salafi‐Jihadis, rely more extensively on the support of their coreligionist expatriate communities in facilitating terrorist activities. Fourth, while employing similar tactics and methods, Shi’a terrorist groups have shown a much greater propensity to kidnap innocents to barter, while Sunni extremists more frequently abduct to kill. Fifth, Shi’a terror groups exhibit a much higher incidence of targeted assassinations for specific political gain, rather than the high‐casualty killings featured in Sunni terrorism, and particularly of the Salafi‐Jihadist variant. Finally, each sect’s extremists manage publicity and propaganda differently. The Sunni approach to information management tends to feature doctrine and resources geared to take immediate credit and widely amplify a terrorist event. Shi’a terrorists, while not averse to normal media publicity and amplification, by and large take a much lower‐key approach.
Topic:
Terrorism and Counter-terrorism
Political Geography:
Iran, Israel, Saudi Arabia, and United States of America

4928. Assessing External Effects of City Airports: Land Values in Berlin

Author:
Gabriel Ahlfeldt and Wolfgang Maennig
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This paper employs a hedonic price model to explain standard land values in Berlin. Impact on land values is assessed for the two city airports situated in Berlin, Germany, Tempelhof and Tegel. Empirical results confirm expectations about the impact of various attributes on land values. Areas exposed to noise pollution of downtown airport Tempelhof sell at a discount of approximately 5-9% within a distance of 5000 m along the air corridor. No significantly negative impact was found for land values around Tegel Airport, which is located in a central, but less densely populated, area. Market access indicators created for all three Berlin airports in operation, including Berlin Schoenefeld International Airport, reveal clear location advantages in terms of accessibility of Tempelhof and Tegel compared to Schoenefeld Airport, where the new Berlin Brandenburg International Airport is about to be developed.
Topic:
Infrastructure, Land, and Airports
Political Geography:
Germany, Berlin, and United States of America

4929. Evolving Capabilities of the People’s Liberation Army: Consequences of Coercive Aerospace Power for U.S. Conventional Deterrence

Author:
Randall Schriver and Mark Stokes
Publication Date:
08-2008
Content Type:
Working Paper
Institution:
Project 2049 Institute
Abstract:
How the PRC could apply force as an instrument of national power may be more significant than specific technical capabilities it develops and fields. An increasingly sophisticated arsenal of advanced weapon systems serves as an enabler for the PRC to expand its range of options for exercising coercive uses of force to resolve differences with democracies in the region.
Topic:
Armed Forces, Deterrence, Military, People's Liberation Army (PLA), and Aerospace
Political Geography:
China, Asia, and United States of America

4930. The Annapolis Meeting: Too Little Too Late!

Author:
Hassan Barari
Publication Date:
11-2007
Content Type:
Working Paper
Institution:
Center for Strategic Studies (CSS)
Abstract:
As of writing this piece, no final date has yet been set for the Annapolis meeting, but most likely it will be the last week of November. Amid the premature optimism, the concerned parties need to realize that the meeting is likely to fail. Indeed, rejectionists on both sides are already rubbing their hands gleefully in anticipation of a colossal failure. Therefore, many observers have warned that this summit requires careful planning and, more importantly, a day-to-day strategy, should the meeting fail. They argue that US Secretary of State Condoleeza Rice has backtracked from her original plans and has changed the agenda of the conference in such a way that it will have a limited purpose. The new thinking is that the Annapolis meeting should be seen as a process and not as an event. This article sheds light on the dynamics that will determine the degree of success.
Topic:
Diplomacy, Conflict, Negotiation, and Peace
Political Geography:
Middle East, Israel, Palestine, and United States of America

4931. The Politics of Iran's Assembly of Experts after Meshkini

Author:
Mahjoob Zweiri and Ramzy Mardini
Publication Date:
09-2007
Content Type:
Policy Brief
Institution:
Center for Strategic Studies (CSS)
Abstract:
The recent death of Ayatollah Ali Meshkini effectively created a vacuum that was bound to lead to an ideological and political clash among Iran’s power players. Meshkini was the first and only chairman of the Assembly of Experts, objectively Iran’s most powerful institution. He has kept its inherent powers at bay to the desires of Iran’s supreme leader, Ayatollah Ali Khamenei. But now that has changed and Meshkini’s passing, with the recent victory of Hashemi Rafsanjani as his successor, has come at a time when the Islamic Republic is witnessing a socio-political redefinition in its conservative establishment. The ambitions of Iran’s old and new elitists have led to a political confrontation in filling Meshkini’s vacuity, a struggle that may have changed Iranian discourse, as we know it. Though this event is little known and hardly emphasized in media circles in the West, the politics leading up to Rafsanjani’s victory over the ultra-conservatives should be of great interest to those in discussion with Iran over its nuclear program and involvement in Iraq, particularly the United States. This article analyzes the Assembly’s role and significance within the Iranian institutional realm as well as depicts the candidates and politics that shaped this historic dilemma.
Topic:
Nuclear Weapons, Politics, Nuclear Power, and Domestic Politics
Political Geography:
Iran, Middle East, and United States of America

4932. The UN Security Council’s Response to Terrorism: Before and After September 11, 2001

Author:
Hilde Haaland Kramer and Steve A. Yetiv
Publication Date:
09-2007
Content Type:
Journal Article
Journal:
Political Science Quarterly
Institution:
Academy of Political Science
Abstract:
HILDE HAALAND KRAMER and STEVE A. YETIV argue that the UN Security Council’s response to global terrorism has been more forceful and comprehensive since September 11 and that it has broken some new ground. The authors posit that although the UN remains controversial in the United States, Washington benefited from its response to September 11, as imperfect as it was.
Topic:
Terrorism, United Nations, 9/11, and UN Security Council
Political Geography:
Global Focus and United States of America

4933. Iran’s Nuclear Challenge

Author:
Colin Dueck and Ray Takeyh
Publication Date:
07-2007
Content Type:
Journal Article
Journal:
Political Science Quarterly
Institution:
Academy of Political Science
Abstract:
COLIN DUECK and RAY TAKEYH describe the political, ideological and security motivations behind Iran’s nuclear program and examine various strategic alternatives available to the United States. They conclude that the United States should pursue comprehensive, direct negotiations with Tehran on the nuclear issue, within an overarching framework of containment.
Topic:
Security, Nuclear Weapons, Nuclear Power, Negotiation, and Containment
Political Geography:
Iran, Middle East, and United States of America

4934. Referendum: The 2006 Midterm Congressional Elections

Author:
Gary C. Jacobson
Publication Date:
03-2007
Content Type:
Journal Article
Journal:
Political Science Quarterly
Institution:
Academy of Political Science
Abstract:
GARY C. JACOBSON analyzes the 2006 midterm election as a referendum on the performance of President Bush, the war in Iraq, and the Republican Congress. He argues that the Democrats won control of Congress by nationalizing the election and exploiting widespread public discontent with the Republican regime to overcome the Republicans’ formidable structural advantage in present-day electoral politics.
Topic:
Elections, Domestic Politics, Iraq War, Republican Party, and Democratic Party
Political Geography:
North America and United States of America

4935. Is Port Security Funding Making Us Safer?

Author:
Veronique de Rugy
Publication Date:
11-2007
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
The most terrifying security threat to security experts and the public alike is nuclear proliferation. Once the figment of Hollywood imagination, the ultimate nightmare scenario that is dis- cussed by some as inevitable is the detonation of a nuclear device on American soil. The majority of experts believe that the most likely way weapons of mass destruction (WMD) would enter the United States is by sea, hence a focus on port security.1 Ports offer terrorists vast opportunities to inflict damages. As the primary mode of transpor- tation for world trade goods, maritime commerce is essential to America’s economic vital- ity.2 Every year approximately nine million cargo containers—26,000 a day—arrive at U.S. ports from all over the world.3 The U.S. maritime system includes more than 361 sea and river ports with more than 3,700 cargo and passenger terminals and more than 1,000 harbor channels along thousands of miles of coastline.4 In FY 2007, President Bush requested $2.3 billion for port security out of a $57 billion government-wide budget for homeland security.5 However, the important question is not how much money is spent but rather whether the money is allocated toward the most cost- effective programs. In other words, is America getting the maximum level of protection in exchange for our tax dollars? A close look at port security allocation decisions indicates that spending occurs without regard for risk analysis let alone cost-benefit analysis, leading to a large array of misallocated spending. For instance, what should be the highest priorities—preventing terrorists from acquiring nuclear devices and material—receive less money than much less cost-effective policies such as nuclear detection in the ports or post-disaster response activities.
Topic:
Security, Maritime, Trade, and Port
Political Geography:
North America and United States of America

4936. Russia and America: Is Another Arms Race Afoot?

Author:
Jane M.O. Sharp
Publication Date:
11-2007
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
During the Cold War years we learned that successful arms con- trol agreements with the Soviet Union were those that codified parity, or at least a mutually acceptable status quo. After the collapse of the Soviet Union and the Warsaw Treaty Organization (WTO) in 1991, a much diminished Russia saw all its WTO allies and three former Soviet republics join NATO, making parity harder to achieve. But there are still compelling reasons to shape agreements that satisfy all parties. During the 1990s, under Boris Yeltsin, Russia strove to be represented as an equal to the United States in arms control diplomacy and in negotiations concerning the future of former Yugoslavia. President Bill Clinton tried to meet Yeltsin’s concerns, but there has been little constructive cooperation on arms control between George W. Bush and Vladimir Putin. Indeed, since 2000, Bush has been hostile to any kind of multilateral diplomacy. He began his presidency with a new generation of ballistic missile defenses (BMD) and withdrew from the 1972 Anti-Ballistic Missile (ABM) treaty, an agreement that had stabilized U.S.-Soviet relations for two decades. In Russia, an increasingly belligerent Putin, flush with oil money, is now determined to be accorded great power status in his dealings with the West. He is asserting himself in many areas: trying to block independence for Kosovo; countering U.S. sanctions against Iran; and renegotiating arms control agreements concluded when Russia was weak. While Putin is viewed with increasing wariness in the West, on arms control he has some points that need to be taken seriously.
Topic:
Defense Policy, Diplomacy, Military Strategy, and Arms Race
Political Geography:
Russia, Europe, North America, and United States of America

4937. The U.S. and Iran After the NIE

Author:
Farideh Farhi
Publication Date:
12-2007
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
The release of the National Intelligence Estimate regarding Iran’s nuclear capabilities, intentions, and policies created shock waves as well as sighs of relief in Washington and elsewhere. The assessment that Iran stopped its weapons program in 2003, and that its declared enrichment program cannot be converted as easily or as quickly as assumed for use in a military program, immediately brought into question the notion that Iran’s nuclear program needs to be dealt with immediately and only through coercive mechanisms. Amid a notable amount of “spinning” the NIE’s conclusions, a slew of questions are in play regarding if and how the U.S. should alter its hard-edged policies toward the Islamic Republic. A consensus seems to have developed that the report has taken the military option off the table and made the sanctions process at play in the U.N. Security Council more difficult to pursue effectively. These dynamics gave longstanding proponents of direct and unconditional dialogue with Iran new opportunity to re-state their case.1 Calls for such negotiations also came from surprising new corners. In the words of Robert Kagan, co-founder of the hawkish Project for the New American Century, “it is hard to see what other policy options are available. This is the hand that has been dealt. The Bush administration needs to be smart and creative enough to play it well.”2
Topic:
Security, Intelligence, Nuclear Weapons, United Nations, and Military Strategy
Political Geography:
Iran, Middle East, North America, and United States of America

4938. Global Imbalances: A Source of Strength or Weakness?

Author:
Kristin J. Forbes
Publication Date:
07-2007
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Gross capital flows into the United States totaled $1.8 trillion in 2006. When combined with the $1.0 trillion the United States sent abroad, these net capital inflows funded the U.S. current account deficit of about $800 billion.1 The source of a large proportion of these capital inflows was developing economies—especially China and major oil exporters. Why are foreigners willing to invest such massive amounts of money in the U.S. economy? And perhaps even more surprising—why are countries with low levels of investment willing to send this relatively scarce resource to a capital-abundant economy instead of investing in their own countries? Understanding the motivation behind the millions of individual decisions that drive these capital inflows is critically important to understanding if this massive net transfer of capital into the United States reflects a strength or weakness of the global economy.
Topic:
Economy, Investment, and Capital
Political Geography:
Global Focus and United States of America

4939. The Role of Monetary Policy in the Face of Crises

Author:
Anna J. Schwartz
Publication Date:
07-2007
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
In this article I first review the Greenspan Fed’s record of providing liquidity in response to its perception of shocks the economy is facing. It assumed that the shocks were likely to generate financial crises. No financial crises, however, have occurred. Yet the Fed was dilatory in draining the market of unneeded liquidity. Failure to do so meant that monetary policy remained accommodative. I next discuss whether there is a connection between the Fed’s accommodative policy and the depreciation since 2002 of the exchange value of the dollar as well as the twin deficits and growing global imbalances. In that discussion I refer to the need to raise the national saving rate, in part by eliminating the budget deficit as well as projected deficits from the unfunded liabilities of Social Security and Medicare. Monetary policy, however, must be independent of fiscal policy. I conclude with some observations on the advisability of adoption by the Fed of inflation targeting.
Topic:
Monetary Policy, Federal Reserve, and Economy
Political Geography:
North America and United States of America

4940. The Columbian Exchange and the Reversal of Fortune

Author:
Thomas Grennes
Publication Date:
01-2007
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
It is difficult to think about modern American food without including hamburgers and hotdogs. It is also difficult to think about popular American history without cowboys mounted on horseback tending herds of cattle. However, before the arrival of Columbus in 1492 there were no cattle or pigs in America to provide beef and pork for hamburgers and hotdogs. There was no wheat to make hamburger and hotdog buns. There were no horses for cowboys or Indians to ride. The European settlers brought with them cattle, pigs, horses, wheat, and many other plants and animals that became the foundation for modern food and agriculture in the Western Hemisphere. It is also difficult to think about modern Mexican food without including rice, tacos filled with meat, refried beans in animal fat, cheese in enchiladas, and sugar, cinnamon, and milk in chocolate. However, Mexico in 1492 had none of these ingredients. The massive transplantation of plants and animals across the Atlantic Ocean in both directions has been called the Columbian Exchange (Crosby 1972). It has been described as the “greatest human intervention in nature since the invention of agriculture (Fernandez-Armesto 2002: 165), and it has had an enormous effect on the Americas and the entire world. The Columbian Exchange altered the kind of food Americans and Mexicans eat, the kind of agricultural products produced in both countries, and the entire pattern of world economic growth. This article will concentrate on the effects of the Columbian Exchange, but the exchange of plants and animals was part of a broader process of trade, migration, investment, colonization, and exchange of ideas that followed the voyages of discovery by Columbus and others. The same Old World plants and animals were introduced to the two regions that would become the United States and Mexico, but the effects in the two countries were substantially different.1 The United States was the poorer neighbor in 1492, but it became relatively richer. The purpose of this article is to show how differences in institutional development affected responses to the same opportunities. I shall concentrate on developments in the United States and Mexico, but the Canadian experience was similar to the U.S. response, and the response in the rest of Latin America was similar to the Mexican response (Cole et al. 2005).
Topic:
Migration, History, Food, Investment, Trade, and Columbian Exchange
Political Geography:
North America, Mexico, and United States of America

4941. Remuneration vs. Reelection: A Senatorial Balancing Act

Author:
Jim F. Couch, Brett A. King, and Taylor P. Stevenson
Publication Date:
01-2007
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Unique events often give rise to other unique events. Such was the case of Hurricane Katrina—the costliest and most destructive natural disaster in U.S. history. The resulting casualties and staggering damage estimates from the savage storm in late August 2005, led the U.S. Senate to vote overwhelmingly (92 to 6) against a Senate pay raise. Most senators apparently felt that voters would not look kindly on a Senate pay raise given the devastation caused by Katrina. The Senate vote was largely symbolic because the House of Representatives was not going to take a vote on rescinding a pay raise for members of Congress. Thus, senators voting against the raise knew their votes would resonate well with voters but have no impact on the annual congressional pay raise sanctioned by law. Of the six senators who did vote for the pay raise, five—James Jeffords (I-Vt.), Daniel Inouye (D-Hawaii), Jeff Bingaman (D-N.M.), Richard Lugar (RInd.), and Kit Bond (R-Mo.)—were long-time incumbents whose seats were not threatened, and one—Paul Sarbanes (D-Md.)—was about to retire. Typically, votes cast by members of Congress are relatively easy to predict. The empirical analysis of congressional voting patterns suggests that measures of ideology and party affiliation play a decisive role in explaining overall voting behavior. A vote on congressional pay, however, is not typical. It creates a dilemma for lawmakers by pitting two margins of self-interest against each other: pecuniary gains and reelection. Senators are clearly made better off by not opposing annual pay raises—salaries have increased from $98,400 in 1990 to $165,200 in 2006. Yet, those increases are likely to irritate voters and could harm a senator’s chances for reelection. In this article, we examine those conflicts of interest and how they affect voting behavior in the case of senatorial pay raises. It is often reported that cooperation among politicians, or bipartisanship, is a thing of the past. However, our results suggest that at least in the case of the Senate, when it comes to an issue as controversial as a pay increase, senators are fully capable of cooperating. More vulnerable senators (in terms of their probability of reelection) are allowed to vote against a pay raise, knowing that those in a more secure position can vote for the increase. The more vulnerable senators likely compensate senators who take the unpopular position of voting in favor of the pay increase with favorable votes on future legislation.
Topic:
Elections, Domestic Politics, Ideology, and Voting Behavior
Political Geography:
North America and United States of America

4942. Global Imbalances: Do They Matter?

Author:
Miranda Xafa
Publication Date:
01-2007
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
This article reviews the recent literature on global imbalances and discusses the policy implications of the various theories that have been advanced to explain their unprecedented increase. Most of these theories fit the stylized facts, namely, the steady increase in the U.S. current account deficit, the shift to a surplus position of the developing countries, and the low nominal and real interest rates globally. The “low U.S. savings” theory—reflecting the increase in the fiscal deficit and in housing wealth—views the current account deficit as the result of fiscal and monetary policy decisions in the United States that need to be urgently reversed to prevent a crash landing. Other theories however, focusing on developments outside the United States, portfolio balance effects, or previously neglected benign factors, do not yield such a doomsday scenario. It is relevant to note that there is no historical precedent of disorderly exchange rate adjustment in industrial countries that keep inflation under control (Croke, Kamin, and Leduc 2005). Concerns over a disorderly unwinding of global imbalances therefore appear exaggerated. This view, prevalent among market participants and several prominent academics, has not been widely embraced by policymakers.
Topic:
Monetary Policy, Economy, Wealth, and Savings
Political Geography:
Global Focus and United States of America

4943. Why the U.S. External Imbalance Matters

Author:
William R Cline
Publication Date:
01-2007
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Last year the U.S. current account deficit (mainly on trade but including capital income and transfers) reached almost 7 percent of GDP, or about twice as large a share as in 1987, the peak of the previous episode of large external imbalances and dollar overvaluation. A major reason is that from 1995 to 2002 the dollar rose by 28 percent against other currencies, after taking account of inflation and weighting by trade. A strong dollar made U.S. exports expensive and imports cheap, driving up the trade deficit after about a two-year reaction time. With large and persistent external deficits, the United States has swung from being the world’s largest creditor nation to its largest debtor, with net foreign liabilities now at about one-fourth of GDP. The dollar has corrected somewhat and is now about 13 percent lower on a trade-weighted basis than its average in 2002, based on the Federal Reserve’s broad real exchange rate index. Without that partial correction the trade deficit would now be even larger. It will likely require a decline of an additional 15 to 20 percent in the dollar to cut the current account deficit back to about 3 percent of GDP. That rate would be consistent with limiting net foreign liabilities to 50 percent of GDP in the long term. Exceeding that ceiling would seem imprudent for both the U.S. and global economies. It will be crucial that China, Japan, and much of the rest of Asia participate in realignment of their currencies against the dollar, because the decline of the dollar so far has been heavily concentrated against the euro and other industrial country currencies except for the Japanese yen. Dollar correction will also need to be accompanied by fiscal adjustment. Otherwise much of the competitive effect of the dollar adjustment would be offset by higher inflation and a dollar rebound from higher interest rates. Fundamentally the external deficit is the excess of resources used over resources produced, and with U.S. household saving near zero, the government cannot be a large net borrower without keeping the nation in large external deficit.
Topic:
Government, Finance, Economy, Currency, and Deficit
Political Geography:
North America and United States of America

4944. Stockholders and Stakeholders: The Battle for Control of the Corporation

Author:
Donna Card Charron
Publication Date:
01-2007
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The American corporation is in trouble not only because of various immoral executives, but also because it is a target of sustained attacks. For several decades, corporate revisionists have toiled to transform the corporation from private to public property. Were they to succeed, the tragedy of the commons would slowly sap the corporation of its vitality. My objective in exposing the battle for corporate control is to urge and encourage those committed to the preservation of this highly performing institution to place the issue more prominently on their agenda. To this end, I detail the evolution of the battle and assess the present state of affairs. In so doing, I describe and critique “stakeholder theory,” the revisionist’s chosen weapon for gaining control of the corporation. Stakeholder theory currently dominates textbooks and syllabi of courses in business management, human resource management, marketing, and public policy. It colors the decisions of many corporate executives. And it controls the thinking in the majority of business ethics centers. Aware of its reach, I adumbrate a strategy for reversing the destructive inroads of stakeholder theory.
Topic:
Business, Management, Corporations, and Stakeholders
Political Geography:
North America and United States of America

4945. What Are Nuclear Weapons For? Recommendations For Restructuring U.S. Strategic Nuclear Forces

Author:
Sidney D. Drell and James E. Goodby
Publication Date:
10-2007
Content Type:
Special Report
Institution:
Arms Control Association
Abstract:
The U.S. and Russia have agreed to cooperatively reduce their large nuclear stockpiles. The report recommends that the U.S. reduce its arsenal to 500 operational deployed warheads, with 500 warheads in a responsive force, by 2012. These reductions would be made in concert with Russian warhead reductions. The authors specifically outline where and how the remaining warheads should be deployed.
Topic:
Arms Control and Proliferation, Nuclear Weapons, and Armed Forces
Political Geography:
Russia and United States of America

4946. He Who Would Rule: Climate Change in the Arctic and its Implications for U.S. National Security

Author:
Elizabeth L. Chalecki
Publication Date:
05-2007
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
Anthropogenic climate change will have its greatest effect on the Arctic, which will experience impacts ranging from increasing ambient air temperature to glacier and sea ice melting to permafrost thaw. This altered environment will result in new national security concerns for circumpolar nations such as the United States, including increased Arctic access by Russia and other nations; competition over newly accessible fossil fuel resources; and loss of Arctic military facilities resulting from permafrost thaw and land subsidence. Although these effects will be felt cumulatively over the coming decades, the United States must make the necessary strategic changes now in order to prevail in this new security environment. The United States should retrain and re-equip military forces for greater Arctic operability, work toward a clear legal understanding of open sea access in newly ice-free waters, and consider implementing a joint circumpolar security apparatus to facilitate adaptation to this new globally-warmed Arctic.
Topic:
Climate Change, National Security, and Strategic Competition
Political Geography:
North America, Arctic, and United States of America

4947. The Limits of Sino-Russian Strategic Partnership in Central Asia

Author:
Brian Carlson
Publication Date:
05-2007
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
U.S. foreign policy has recently suffered setbacks in Central Asia, where its role had expanded dramatically following the terrorist attacks of September 11, 2001. Recent events appear to indicate growing Sino-Russian cooperation to limit U.S. influence in the region. Although Russia and China have grown closer together in recent years based on convergent strategic views, a number of factors will limit their strategic partnership at the global level. Likewise, their interests in Central Asia mix elements of cooperation with competition, reducing the likelihood of a Sino-Russian condominium in the region. Prudent U.S. foreign policy can prevent anti-American, Sino-Russian power balancing in Central Asia. In order to achieve its goal of a stable, independent Central Asia, the United States should seek to promote a regional concert with Russia, China, and the Central Asian states. If this is not fully achievable, the United States should promote maximum cooperation to address shared interests on issues of security and economic development.
Topic:
Security, Foreign Policy, Partnerships, Economic Development, and Strategic Interests
Political Geography:
Russia, China, Central Asia, Asia, and United States of America

4948. Justice Delayed… an Overview of the Options to Speed Up Federal Justice

Author:
Mattia Landoni
Publication Date:
05-2007
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
This paper examines the current situation of delay in the federal district courts and proposes ways to reduce it. District Courts are increasingly overwhelmed by the demand for judicial services. This trend is likely to continue in the absence of future action because none of the underlying causes will cease to exist. This article presents a detailed quantitative analysis of the main determinants of judicial services demand, followed by an overview of the options to increase its supply: changing the method to assess the need for judges is worth considering; modifying the procedure—the strategy adopted so far—seems to offer little marginal benefit; and finally, introduction of good management practices and digital information management seems to be an innovative and promising approach.
Topic:
Courts, Justice, and Judiciary
Political Geography:
North America and United States of America

4949. Neither Pigs nor Parrots: A Military Culture that Can Win the Peace

Author:
Ryan Close
Publication Date:
05-2007
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
As ongoing operations in Iraq illustrate, the nature of warfare is changing: peacekeeping and warfighting are converging as the space between military and humanitarian activity erodes. Because of the vastly different challenges of fighting wars and handling post-conflict challenges, militaries traditionally train soldiers to be either warriors or peacekeepers. This new type of conflict, however, requires soldiers who are both of these simultaneously. Unfortunately, current organizational culture – focused almost entirely on combat – may prevent the ideological shift within the military that is necessary for molding a new soldier identity. This article addresses this challenge and proposes policy measures that would help transform military culture and better match combat prowess with broad intellectual, political, and social vision. To this end, this article considers how the security environment is evolving, examines how such an environment will severely stress the U.S. military, and offers recommendations for cultural change that concern force structure, operational planning, and the selection, training, and promotion of soldiers.
Topic:
Defense Policy, Military Strategy, Culture, and Military
Political Geography:
North America and United States of America

4950. Back to the Future: Understanding China’s Return to Africa and its Implications for U.S. Policy

Author:
Greg Pollock
Publication Date:
05-2007
Content Type:
Working Paper
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
Since the mid-1970s, China (PRC) has experienced a period of unprecedented economic growth. However, the Chinese Communist Party’s hold on power is now predicated upon maintaining their country’s development trajectory, which requires increasing amounts of natural resources, particularly fossil fuels. To secure access to these raw materials, China has begun to deepen its engagement in parts of the world where Washington has enjoyed a near monopoly on influence since the end of the Cold War. Nowhere is this truer than in Africa, where China has pursued an array of new relationships, some of which directly challenge U.S. interests. This article reviews China’s historical relationship with Africa, accounts for its new investments on the continent, and assesses what the implications of China’s renewed interest in Africa are for U.S. policy.
Topic:
Foreign Policy, Natural Resources, Economic Growth, and Strategic Interests
Political Geography:
Africa, China, Asia, and United States of America