Articles

Tightening The Economic Noose

August 9, 2011 Ilan I. Berman Middle East Quarterly

Are sanctions capable of derailing Tehran's nuclear drive? Some skeptics reject such measures altogether, preferring to deal with Tehran by either accommodation or containment. Others point to the spotty historical record of sanctions in altering state behavior in arguing that they will similarly fall short of forcing the ayatollahs to rethink their long-standing nuclear ambitions. For example, sanctions were found to be successful in only a third of the 105 instances in which they were applied between World War I and the end of the Cold War.

As the past year has shown, however, Tehran may well turn out to be the exception to the rule—but only if the Obama administration (and Western governments more generally) make swift and skillful use of the economic and strategic means at their disposal.

How Iran And America Could Wind Up At War

July 28, 2011 Joshua Eisenman Forbes.com

Are Washington and Tehran headed for a showdown?

For much of the past decade, conventional wisdom has held that Iran’s dogged pursuit of a nuclear capability – carried out in spite of mounting pressure from the international community – will ultimately become a casus belli for Washington. Early on in his tenure, President George W. Bush even went so far as to declare that the U.S. “will not tolerate” Iran arming itself with nuclear weapons, and to indicate that he was prepared to use force to prevent it. Despite its more dulcet diplomatic tones toward Iran, the administration of Barack Obama has grudgingly repeated much the same thing since taking office: that all options, including the use of force, remain on the table for dealing with Iran’s nuclear ambitions. Still, some eight years into the international standoff over Iran’s atomic program, it has become clear that a military option for dealing with an Iranian bomb, if not out of the question entirely, is an exceedingly remote possibility.

That does not mean, however, that Tehran and Washington won’t soon find themselves embroiled in a war. Indeed, Iran’s escalating activity on the territory of its western neighbor, Iraq, could end up becoming the real catalyst for a U.S.-Iranian conflict.

The crisis of Russian modernisation

July 19, 2011 E. Wayne Merry open Democracy

Increasingly, the idea of being a modern Russian means to be detached from Russia itself. The problem has long, Soviet roots, and the ruling tandem acknowledges there is a problem. But are they capable of reversing the trend, wonders Wayne Merry ...

“Modernisation” is the mantra of the current Russian leadership. Both President Medvedev and Prime Minister Putin, albeit in somewhat different language, stress that modernisation is critical to Russia’s future both as a post-hydrocarbon economy and as a competitive state player on the global scene. They describe modernisation as essential to make Russia receptive for investment and entrepreneurship. In recent months, this goal has taken on tones of more than policy priority, but of actual urgency.

"There is no question that talented young Russians are compatible with modernisation, but there is a basic issue whether modernisation is compatible – or even tolerable – within today’s Russia"

For this discussion, “modernisation” may be understood to mean the ability and willingness to adapt to (or even embrace) contemporary ways of doing things in a global context, with the object of adding value to any particular field of human endeavor. It need not be limited to technical or business innovation, although that is the focus of Russian policy.

High Cost Of Stability In Egypt

June 13, 2011 Ilan I. Berman Washington Times

Welcome to “The Hangover,” Cairo edition. The widespread grass-roots protests that broke out in Egypt this spring succeeded in accomplishing what many skeptics doubted they could: ousting long-serving strongman Hosni Mubarak and ending his 30-year authoritarian rule. But now, some four months on, Egypt’s revolution is obviously on the skids.

The problems start with Egypt’s economy. Under Mr. Mubarak, Egypt’s economic fortunes were comparatively rosy, with the national gross domestic product growing an average of nearly 6 percent annually over the past three years. Today, by contrast, they are anything but rosy. Since Mr. Mubarak’s ouster in February, the Egyptian stock exchange has lost nearly a quarter of its value, prompting its chairman, Mohamed Abdel Salam, to embark upon a frantic tour of Gulf monarchies in an effort to drum up Arab investment. Tourism, the lifeblood of the Egyptian economy, likewise has plummeted, falling an estimated 60 percent over 2010 levels and costing the country more than a half-billion dollars in revenue to date in the process. Nor is a reprieve in sight. According to observers, it could take a decade for Egypt’s tourism industry to rebound fully - if, indeed, it rebounds at all. The prognosis is grim: As a recent analysis in the Asia Times put it, “Egypt’s economy is in free-fall.”

Iran’s Bid For Africa’s Uranium

May 23, 2011 Ilan I. Berman Wall Street Journal

With the drama of the Arab Spring and the death of Osama bin Laden dominating the headlines, you might have missed the most important development in months surrounding Iran's nuclear program: Zimbabwe's emergence as a key enabler of the Islamic Republic's march toward the atomic bomb.

In recent days, officials in Harare have confirmed that the government of Robert Mugabe is finalizing a massive resources deal with Tehran, in defiance of United Nations sanctions aimed at derailing Iran's nuclear push. That agreement, in the works since Iranian President Mahmoud Ahmadinejad visited the African state in April 2010, would provide the Iranian regime with preferential access to the country's estimated 455,000 tons of raw uranium over the next five years.

The deal sheds light on what amounts to a major chink in the Islamic Republic's nuclear armor. For all of its atomic bluster, the Iranian regime lacks enough of the critical raw material necessary to independently acquire a nuclear capability. According to nonproliferation experts, Iran's known uranium ore reserves are limited and generally of poor quality. It desperately needs steady supplies of uranium ore from abroad, and without those supplies the Islamic Republic's nuclear plans would, quite simply, grind to a halt.