Publications

There is trouble on the high seas. Few doubted China’s astonishing economic and geopolitical rise would fuel competition and rivalry with the United States and China’s Asian neighbors. Most observers, however, have been left guessing where the first serious points of conflict would emerge. We may have been given our answer this summer: in the disputed and crowded waters of the Asian Pacific, where overlapping claims of sovereignty and territorial rights among the United States, China and a handful of East Asian nations have spilled into confrontation and political brinkmanship this year.

This Sunday marks 20 years since German unification. It also coincides with a low point in the commitment of post-war Germany to European unity. The two are directly related.

Alone in Europe, the people of the former German Democratic Republic (East Germany) did not have to qualify for entry into the European Union. German unification made them automatically full-fledged members.

Nothing was asked of East Germans for this extraordinary benefit. Nor were they educated about the European project and Germany’s unique role, based on its history, in building a common European home.

All other former Soviet-bloc countries — Poland, Hungary, Latvia, etc. — had to work hard for E.U. membership, both in the complex formal qualifications and through years of learning to become “European” in a pragmatic sense. For these countries, entering “Europe” was a long-sought goal and finally a celebrated achievement. Eastern Germany never moved up this learning curve.

For quite a while now, policymakers in Washington have worked diligently to try and test a simple hypothesis: that energy sanctions can help derail Iran’s march toward the bomb.

Over the years, this effort has taken the form of a number of legislative initiatives aimed at curtailing Tehran’s energy trade with the world. Of late, however, American pressure has honed in on Iran’s most glaring economic dependency, its deep reliance on foreign refined petroleum. The culmination was the passage by Congress this summer of the Comprehensive Iran Sanctions, Accountability and Divestment Act, a sweeping set of new provisions aimed in large measure at throttling the Iranian regime’s oil sector.

Can sanctions stop Iran's nuclear drive? Since the passage of new U.S. and multilateral measures this summer, there have been unmistakable signs that Iran has begun to feel the economic pinch. Prompted by mounting international pressure, a slew of foreign multinationals have exited the Iranian market, while a range of countries - from South Korea to the United Arab Emirates - are in the process of curtailing their financial dealings with the Islamic republic.

But, despite these heartening signs, the ultimate success of sanctions depends on what could come after. In order for economic pressure to be taken seriously in Tehran, Iran's leaders must be convinced that their continued intransigence on the nuclear front will lead to something far worse.

For the moment, at least, they clearly are not. That is in large part because, despite repeated assurances from U.S. officials that "all options remain on the table" in dealing with the Iranian regime, Tehran has been permitted to wage not one but two irregular wars against America for more than half a decade and to do so with virtual impunity.

If economic sanctions fail to stop Iran's march toward the bomb, and either the U.S. or Israel is compelled to use force against the Iranian nuclear program, China will shoulder at least some of the blame.

Since this summer, concerted international pressure has unmistakably tightened the financial noose around Iran's ayatollahs. The June passage of a new round of United Nations sanctions against the Islamic Republic has been followed by an exodus of European and Asian firms from the Iranian market, and new, stricter regulations on financial dealings with the regime in Tehran. Simultaneously, unilateral American sanctions have honed in on Iran's most glaring economic vulnerability—its deep dependence on supplies of refined petroleum from abroad—with marked results. According to energy consultancy EMC, Iran's gasoline imports plummeted by 50 percent, from 120,000 to 60,000 barrels per day, in the month after the imposition of U.S. sanctions, as skittish foreign suppliers scrambled to exit the Iranian market.

But the push to isolate Iran economically may end up being undermined by a key global actor. China's leaders may have reluctantly gone along with the latest round of Security Council sanctions passed this summer. Yet, even as other foreign stakeholders have constricted their financial stakes in Iran, Beijing has done the opposite.

On the very day Secretary of State Hillary Clinton announced that the United States would lead a renewed Israeli-Palestinian peace effort, Iran boasted that it had test-fired a surface-to-air missile.

A day later, Iran began loading fuel rods into its Bushehr nuclear reactor, marking further progress on its quest for nuclear weapons.

A day after that, Iran's leaders unveiled the nation's first home-built unmanned, or "drone," bomber, with a range of more than 600 miles and which President Mahmoud Ahmadinejad said could serve as a "messenger of death" to hostile outside forces.

These developments illustrate a big problem with the U.S. peace effort - it will divert U.S. time and attention from the far more pressing challenge of containing Iran's regional hegemonic ambitions, which threaten our allies, our role in the region, and our ongoing efforts in Iraq, Afghanistan and other hotspots.

The furor accompanying the recent dissemination of classified military files by WikiLeaks has focused some much-needed attention on the damaging role Pakistan plays in the Afghan theater. As the WikiLeaks documents highlight in damning detail, Islamabad's close - and ongoing - cooperation with the Taliban has made it a key accessory to the worsening insurgency against the U.S.-led coalition on the war on terror's first front.

But what can actually be done about Islamabad's double-dealing? Disengagement, after all, is simply not an option. By dint of its strategic geography, Pakistan is a key player in Afghanistan, and its constructive involvement is essential to ensuring lasting stability there - especially following the planned July 2011 U.S. withdrawal. Pakistan is also a nuclear power, and the specter of Islamists gaining control of its burgeoning atomic arsenal is a nightmare scenario the West has sought to forestall through increased diplomatic engagement and foreign aid.

For years, Pakistan has played on these fears to get a pass on its domestic conduct and keep American dollars flowing. But this does not mean the United States lacks the ability to steer Pakistan toward a more constructive course. To the contrary, a number of opportunities exist for Washington to influence Islamabad's stance on terrorism and radical Islam.

If the Kremlin stays true to its word, Russia on Saturday will begin loading nuclear fuel into Iran's Bushehr reactor. Once it does, it will usher in a new stage in the deepening crisis over Iran's nuclear program.

The 1,000-megawatt plutonium reactor, located near the southern Iranian port city of the same name, has been the public face of the Iranian regime's nuclear program since Tehran and Moscow concluded the agreement to build it, despite American objections, in early 1995. Construction was completed in 2004, but Bushehr has laid dormant for years, ostensibly because of disputes over financing between Russia and Iran, but really because of Moscow's recognition of Washington's worries about Iran's nuclear program.

Perhaps unsurprisingly, the U.S.-India partnership is losing momentum under President Barack Obama’s stewardship. Fortifying the alliance was bound to be a secondary priority for any administration faced with a recession, a flagging war effort in Afghanistan, political stalemate in Iraq, stalled Middle East peace efforts, defiant pariah regimes in Iran and North Korea, and strategic tensions with China. Still, allowing the partnership to falter appears to have come easier to a president who never quite displayed George W. Bush’s zeal for the Indian-American relationship. To be sure, problems also exist on the Indian side. New Delhi has itself fallen into a form of post-honeymoon malaise, as the phase of grand political gestures gives way to tough technical negotiations. However, rather than mitigate the downside of this difficult period, the Obama administration is pursuing an agenda that further complicates it and, in doing so, risks some of the tremendous gains made in U.S.-India relations over the past decade.

What do you call an ally that tries to kill you? That's the question most Americans are asking in the wake of last month's dissemination by Internet clearinghouse WikiLeaks of some 92,000 classified U.S. military documents relating to the war in Afghanistan. The files provide a sobering portrait of the true state of play on the War on Terror's first front. Far and away the most damaging disclosures, however, are those relating to the pernicious role being played by Pakistan, long regarded as a critical American ally in South Asia, in supporting and sustaining the anti-Western insurgency there.

That a Pakistani-born U.S. national was responsible for the latest attempted terrorist attack on U.S. soil should come as little surprise. Pakistan has stood, almost unchallenged, at the epicenter of global terrorism for the post-9/11 era. Individuals or groups based in Pakistan have been involved in the majority of planned attacks on Western nations since 2001 and the country has played a critical role in the resurgence of the Taliban in Afghanistan. Finally, nuclear-armed Pakistan maintains a network of Islamist militant groups focused on targeting India and is now host to a ferocious Islamist insurrection of its own; an insurgency that is now more deadly than those in either Iraq or Afghanistan. In short, no discussion of counterterrorism is complete without an examination of Pakistan and its role in Western terror attacks, the Afghan War, and its own attempts to combat domestic terrorism.

Long-time observers of American politics know that in order to truly put your finger on the pulse of the nation, you have to watch Wall Street. Savvy Iran-watchers will tell you that to do the same in the Islamic republic, you need to keep your eye on the bazaar.

Iran's sprawling marketplaces are more than simply centers of commerce. They are home to a powerful class of merchants who historically have served as key power brokers in the country's labyrinthine political system. Indeed, as the renowned historian Walter Laqueur astutely pointed out in the wake of the 1979 Islamic Revolution, the shah's loss of support among the country's shopkeepers and merchants was an important part of why Ruhollah Khomeini's clerical takeover ultimately succeeded. Simply put, Iran's businessmen no longer felt invested in the old, secular status quo. The rest, as they say, is history.