File 029692
Email: Washington Post Article on Obama's Israel Trip and Palestinian Peace Efforts (File 029692)
Email from Jeffrey Epstein to Larry Summers containing a Washington Post article by Scott Wilson about President Obama's planned trip to Israel in March 2013 to address Middle East peace negotiations and the Israeli-Palestinian conflict.
Summary
This document contains an email from Jeffrey Epstein forwarding a Washington Post article discussing President Obama's first trip to Israel as president, scheduled for March 2013. The article examines Obama's renewed efforts at Middle East peacemaking, including his goals for Israeli-Palestinian peace talks, the challenges posed by Hamas and settlement construction, and the broader regional context of the Arab Spring. It also includes an interview excerpt with Palestinian chief negotiator Saeb Erekat discussing his role as a peace processor.
From:Sent:To:Article 1.Jeffrey Epstein [jeeyacation@gmail.com]2/14/2013 8:47:12 PMLarry SummersWashington PostObama to make first tripto Israel, part of apotential 'newbeginning' with regionScott WilsonPresident Obama will travel to Israel andthe occupied Palestinian territories nextmonth to make an early second-term pushfor peace negotiations between twodivided governments and to assess thebroader political developments remakingthe Middle East.It will be Obama's first trip as presidentto Israel, where suspicions run high in theaftermath of his unsuccessful early effortsat Middle East peacemaking.The choice of destination — one thatObama avoided in his first term —suggests a revival of his ambitions abroadafter a year of virtual dormancy onforeign affairs. The timing also points toa willingness on his part to quicklyreengage a politically volatile foreign-Office of Terje Rod-LarsenShow detailsAds — Why these ads?Free Spell Check ToolbarAvoid Spelling Mistakes with FreeSpell Checker - Download for Free!www.DictionaryBoss.comAlkaline Water BenefitsDownload a Free Informational eBookon Alkaline Water.www.LifeIonizers.com/Alkaline-WaterFreeCreditScore.comTMA Good Credit Score = 700 & Above.See Yours Now for $0.www.FreeCreditScore.comGreat Jobs For CNAs/LPNsJoin Our Team of Qualified Nurses!Offering Competitive Salaries.www.TowneNursing.com/NursingJobsSilver Prices to Drop 25%Gain 67% if Buy after Correction.As Silver Price Soars into 2013www.sovereign-investor.comMilitary Refinance Loan3.38% (3.53% APR) No lender feesUse your benefit! No appraisal reqdwww.FreedomMortgage.comOnline Nursing ProgramsAchieve A Higher Level Of Success!Enroll With Walden University TodayWaldenu.edu/Nursing DegreesHOUSE OVERSIGHT 029692policy issue just months after winning hissecond term.But the visit will highlight how much theregion has changed since he last visitedthe Middle East in his first year in office,with the rise of Islamist governments andthe widening repercussions of civilrevolt.After Obama helped topple MoammarGaddafi in Libya in 2011, many in theregion wondered when he would emergeagain to help shape the course of thetumultuous Arab Spring, which hasreplaced a pair of U.S.-allieddictatorships with elected Islamistgovernments.Within the Israeli-Palestinian conflict,much has changed since the direct peacetalks Obama inaugurated in September2010 collapsed within weeks. Israel'srecent battle with the armed Hamasmovement in the Gaza Strip left manypredicting a wider fight in the future, asdivisions deepened within the Palestinianand Israeli electorates over whether talksor war would resolve the conflict."To make it a substantive trip that ismore than a positive photo-op wouldrequire setting up a specific frameworkfor an agreement and setting a tightdeadline to achieve it," said Jeremy Ben-Ami, the executive director of J Street, anonprofit group that advocates theHOUSE OVERSIGHT 029693creation of a Palestinian state alongsideIsrael.White House officials would not providea date for Obama's trip, which he willsqueeze into the tight schedule he isbuilding around a busy domestic agendathat includes immigration, guns and theeconomy.But Israeli media reported that Obama isscheduled to arrive March 20 as part of atrip that will include a stop in Jordan,where the civil war in next-door Syriaand its growing refugee crisis ispresenting a major challenge to KingAbdullah II, a U.S. ally.Obama began his first term by making astrong push for peace talks between Israeland the Palestinians, believing theconflict fueled radicalism in the region ingeneral and toward the United States inparticular, given its historical support forthe Jewish state.In contrast to predecessor George W.Bush, Obama wanted to demonstrate toArab governments that the United Stateswould make demands of Israel in pursuitof a regional peace agreement.Israeli Prime Minister BenjaminNetanyahu made little secret of hispreference for Republican Mitt Romneyin last year's U.S. presidential campaign.Netanyahu and Obama have at timesdisagreed bitterly over issues relating toHOUSE OVERSIGHT 029694the Palestinians, including Israel'scontinued settlement construction in theWest Bank and East Jerusalem.Israel's military occupied thoseterritories, along with Gaza, in the 1967Arab-Israeli war. Palestinians view themas the key territorial elements of theirfuture state.In a June 2009 address in Cairo, a speechthat asked for a "new beginning" with theIslamic world, Obama said: "The UnitedStates does not accept the legitimacy ofcontinued Israeli settlements." He alsodid not stop in Israel on that trip, insteadvisiting Saudi Arabia, Egypt andGermany, where he emphasized thehorror of the Holocaust and the moralimperative of defending Israel. Romney,among others, made the omission acampaign issue.But on regional security issues, Obamaand Netanyahu have deepenedcooperation amid rising U.S. military aidto Israel. Obama has agreed withNetanyahu that Iran must not be allowedto use its uranium-enrichment program todevelop a nuclear weapon, an issue thatthe two will discuss during Obama'svisit.Netanyahu's Likud party emerged fromelections last month as the largest bloc inIsrael's parliament, meaning that he willserve another term as prime minister. ButHOUSE OVERSIGHT 029695a surprisingly strong showing by a newcentrist party is likely to put morepressure on him to pursue talks."It was a mistake for Obama not to go inthe first term at a time when it could haveaffected Israeli public opinion of him,and now, it has hardened against him to apoint that I don't believe it can," saidElliott Abrams, a senior fellow at theCouncil on Foreign Relations who servedas a senior Middle East adviser to Bush.Obama's visit will coincide with growingconcern in the region that the two-statesolution favored by him is in peril, asIsraeli settlement construction continuesand as the Islamist Hamas gains cloutwithin the once-secular Palestiniannationalist movement. Hamas emergedstronger politically from the recent clashwith Israel and continues to reject theJewish state's right to exist.Hamas and its secular rival Fatah are dueto meet Saturday as part of areconciliation process. If an agreement isreached and Hamas joins the PalestinianAuthority, Obama will be faced with anawkward decision on whether to meetwith a government that includes membersof a U.S.-designated terrorist movement.As he begins again in the region, Obamawill be advised by new Secretary of StateJohn F. Kerry. He has also named formerHOUSE OVERSIGHT 029696senator Chuck Hagel as defensesecretary, a nomination still in questionafter an unsteady performance by thecandidate before the Senate ArmedServices Committee last week thatfocused in part on his past criticism ofIsrael."This trip is a signal that the presidenthas an interest, not just in the peace issue,but also in the broader concerns thatIsrael is facing," said Dennis Ross, asenior Middle East adviser to Obamaduring his first term who is at theWashington Institute for Near EastPolicy. "In some ways, it will be thepresident traveling to Israel to ask for anew beginning."Article 2.Foreign PolicySaeb Erekat - The PeaceProcessorAn interview by Aaron David MillerFebruary 5, 2013 -- Other than MahmoudAbbas, Saeb Erekat could be the mostrecognizable Palestinian on the planet.The chief Palestinian negotiator iscertainly among the most passionate inpromoting the cause. And nobody on theHOUSE OVERSIGHT 029697Palestinian side knows the substance ofthe issues or the negotiating historybetter.I first met Erekat in the late 1980s, whileworking on the Palestinian issue for thenSecretary of State George Shultz. Backthen, the U.S.-educated diplomat wasalready showing the brashness andoutspokenness that would make him oneof the most memorable -- if exasperating-- of the Palestinians with whom wedealt.He annoyed then Secretary of StateJames Baker by wearing his kaffiyeharound his shoulders at the opening of theMadrid Peace Conference in October1991. And over the years, he continued toannoy the Israelis too with his fieryperformances on CNN -- though to thisday, key Israeli negotiators, such as IsaacMolho, continue to praise his pragmatismat the bargaining table.It was Erekat's academic bent, analyticalchops, and capacity to write in Englishthat would make him so indispensable tothe only Palestinian who really countedin those days -- Yasir Arafat. Erekat wasa unique figure -- neither a fighter (nonom de guerre for him), nor a PLOinsider, nor an organization man fromTunis. Rather, he was a West Bankerfrom Jericho, and he succeeded inmaintaining his relevance in a PalestinianHOUSE OVERSIGHT 029698political scene dominated not by fellowacademics, but by hard men defined bystruggle and intrigue. During the headydays of the peace process, he became akey point of contact for the Americans,the Israelis, the Arabs, and much of therest of the international community.I came to know Erekat not only as anegotiator, but as a person. He sent hiskids to Seeds of Peace, a conflictresolution and coexistence organizationthat I ran briefly after leaving the StateDepartment, and my daughter befriendedhis and stayed with the Erekats inJericho. Saeb and I have yelled at eachother, defended our respective positions,laughed, and mourned opportunities thatwere never adequately explored. Butthrough it all, what he said about himselfwas true: He wasn't as pro-Palestinian orpro-Israeli as much as he was pro-peace.That peace has proven elusive to this day.But with all our differences -- and thereare many -- I believe Erekat believes inits possibility. Who else would list as an"objective" on his resume: "Solve thePalestinian-Israeli conflict based on a twostate negotiated solution throughdiplomatic offices"?If, or perhaps when, another effort tonegotiate a deal is made, one thing isclear -- Erekat will be in the middle of it.Last week, he agreed to answer myHOUSE OVERSIGHT 029699questions on the past and future of theIsraeli-Palestinian problem.FP: What were your best and worstmoments in the Israeli-Palestiniannegotiations, and what was the greatestmissed opportunity?Saeb Erekat: Though I was not the chiefnegotiator at that moment, the connectionbetween [then Prime Minister Yitzhak]Rabin and President Arafat madeeveryone around them, including myself,feel that peace was possible. There wassignificant progress in all tracks untilRabin's assassination by an Israeliterrorist -- after he was killed, no Israelileader had the vision to understand thatthe window of opportunity for a two-statesolution would close as fast as theycontinued their colonization policies.The missed opportunity has definitelybeen Israel throwing away the ArabPeace Initiative, which offersnormalization of relations of 57 countrieswith Israel in exchange for Israeliwithdrawal to the 1967 border. Theythrew it away by bombing Gaza, byintensifying collective punishments, andby increasing settlement construction allover the occupied West Bank,particularly in and around Occupied EastJerusalem.HOUSE OVERSIGHT 029700FP: 2013 is the 20th anniversary of theOslo negotiations. What was Oslo'sgreatest success, and its greatest failure?SE: The fact that, two decades after Oslo,we are still a nation under occupationshows that Israeli governments did derailit. The interim accords were not supposedto last for 20 years but only five. Afterthat, we were going to enjoy freedom andsovereignty.But Israel increased its settlementexpansion. In fact, within 20 years, thenumber of settlers almost tripled. Theinstitution-building efforts led by thePalestinian government have beencompletely undermined by the lack offreedom. This situation cannot continue.Oslo succeeded in bringing back 250,000Palestinians from the diaspora andbuilding the capacity for our state. Theinternational community failed though,by granting Israel an unprecedentedculture of impunity that allowed them touse negotiations as a means to continuerather than stop colonization.FP: What is the most importantthing Israelis don't understand aboutPalestinians?SE: That we are not going anywhere. Assimple as that. We are not going todisappear just because their governmentbuilds an annexation wall around us.HOUSE OVERSIGHT 029701They should close their eyes and imaginetheir state within 10 years time. What dothey see? If they continue their policies,they are going to officially adopt the formof an apartheid regime, which I think isnot what many Israelis want.FP: What is the most important thingPalestinians have learned about Israelis?SE: That Israelis will not take back theships that brought them here to leavesomewhere else. We got to understandthat we have to live side by side. Therules of engagement, though, cannot bethose of apartheid, but those of freedom.FP: What do you expect from the nextIsraeli government on the peace process?SE: I don't think there is room foroptimism, but our position hasn'tchanged. We don't see any other solutionthan a two-state solution. Any Israeligovernment that recognizes this fact andrespects what previous governments haveagreed upon should become a partner forpeace.FP: Is Hamas-Fatah unity possible, andwhat would the impact be on the future ofIsraeli-Palestinian negotiations?SE: We expect to have progress in thenear future, with Hamas allowing theCentral Elections Commission to registernew voters in Gaza. I believe there ispolitical agreement -- in fact, there is asigned agreement. We expect to haveHOUSE OVERSIGHT 029702elections as soon as possible, which is theright way to solve our differences: Letour people decide, those in Palestine aswell as our people in the Diaspora.Having said so, Hamas has recognizedthe Palestine Liberation Organization asthe sole and legitimate representative ofthe Palestinian people, including itsmandate to negotiate a final statusagreement with Israel. Once that isachieved, we expect to hold a nationalreferendum.FP: How would you describe Egypt'srole in the peace process now? What doyou expect from President BarackObama's administration with regards tothe peace process?SE: Egypt has played a central role, andcontinues to do so. We trust that Egypt,under President Mohamed Morsy'sleadership, will continue to play a strongrole because Palestine and Egypt have acommon interest in achieving peace.President Obama had stated that he has apersonal commitment to bring peace tothe Middle East. We, the Egyptians, andthe rest of the Arab world tell him that weare ready for peace. We have the ArabPeace Initiative. This goes in line withthe stated U.S. national interest.Washington's failure to explicitly say thatIsrael is to blame for choosingHOUSE OVERSIGHT 029703settlements over peace has contributed toIsrael's culture of impunity.FP: Can America be an effective brokerin negotiations?SE: If the U.S. decides to be an honestbroker, it could not only be effective butin fact could bring real peace to theregion, a just and lasting one. The U.S.has a moral obligation toward thePalestinian people, who have been underoccupation and living in exile fordecades.FP: Is a two state solution still possible?SE: Yes, but only if there is a politicalwill. So far, Israel's will is aboutcolonization, and the internationalcommunity has failed to put an end todecades of double standards by treatingIsrael as a state above the law. We don'tsee any other solution than a two-statesolution, though Israel is taking us to aone-state reality.Aaron David Miller is a distinguishedscholar at the Woodrow WilsonInternational Center for Scholars.Article 3.The Daily BeastThe Mixed Legacy OfShimon PeresHOUSE OVERSIGHT 029704Daniel GavronFeb 4, 2013 -- Now that he has finishedhis consultations with the country'spolitical parties and charged BenjaminNetanyahu with forming a new coalition,Israel's respected President, ShimonPeres, is once again very much in thenews. In his speech inviting Netanyahu toform the next government, the Presidentspoke forcefully about peace and evenseemed to influence Bibi to mentionpeace, a word he never used in hiselection campaign. Peres has rightlyearned respect for this from manyquarters, but now, as the coalition isbeing formed, it might be a good time toexamine one aspect of Israel's politicalculture: the lack of respect for the task ofa parliamentary opposition. Peres is atleast partly to blame for this, as he almostalways preferred to join variousadministrations—even as a juniorpartner—rather than lead the opposition,ofen citing "our grave situation" and"national responsibility." Now is surelya better time to criticize Peres than inJune, when the world (maybe evenincluding President Barack Obama) willbe coming here to celebrate his 90thbirthday. Then, surely, everyone will bepaying deserved tribute to the wisdom ofthis elder statesman and prophet of peace,and it would be a shame to spoil theHOUSE OVERSIGHT 029705party. So let's clear the air right now,well before the festivities. Before we getto the matter of coalition politics, whichis very much on our minds right now asNetanyahu struggles to put together agovernment, let us consider the othernegative part of the Peres legacy: his stintas Defense Minister under Prime MinisterYitzhak Rabin from 1974 to 1977. TodayPeres is widely respected as the architectof the Oslo Accord of 1993, achievedwhile he was Foreign Minister. It was thefirst political move toward a settlementbetween Israel and the Palestinians, andPeres deserves huge credit for securingthe agreement. However, two decadesearlier, as Defense Minister, he supportedthe Jewish settlement project in thenewly-conquered Palestinian territories,both overtly and covertly. Not fornothing did Rabin label Peres in hismemoirs as "an indefatigable intriguer."In 1975, while Rabin was doing hisutmost to prevent the settlement of ElonMoreh, near Nablus, Peres continuouslysabotaged his efforts. After no less thaneight settlement attempts, which wereruled illegal by Israel's Supreme Court, a"compromise" was reached, and ElonMoreh was established five kilometers tothe east of the original site. Moreover,during the furor over Elon Moreh,Defense Minister Peres quietly facilitatedthe creation of Ofra, near Ramallah.HOUSE OVERSIGHT 029706These two settlements, which havebecome flagships of the settlementmovement, were the start of Jewishcolonization in Samaria, the northern partof the West Bank. The previous year, asa young reporter, I interviewed Peres,after he and his political ally MosheDayan had refused "on principle" to jointhe government of Golda Meir. "If asingle child can learn that politics is notjust intrigues," Peres told me, "I will besatisfied that we have done our bit." Justone week later, when he and Dayan hadreversed their position for no discernablereason, and were seated snugly aroundthe cabinet table, I asked Peres what hehad to say to the "single child." His aidessniggered, but Peres didn't bat an eyelid:"Just what my mentor, David Ben-Gurion(Israel's first Prime Minister) told me:when the security of Israel is laid on oneside of the scales, and everything else onthe other side, security tips thebalance." Peres subsequently used thatself-same argument to join everygovernment that would have him. Thelate Menachem Begin lost nine electionsbefore finally becoming Israel's PrimeMinister in 1977. He served as apugnacious and dedicated leader of theopposition. Peres almost never headedthe opposition, always preferring aministerial appointment, once evendesigning a grotesque system ofHOUSE OVERSIGHT 029707"rotation" with Yitzhak Shamir, so thathe could be in the government. Heproposed the ideal of "national unity,"and greatly devalued the democraticconcept of parliamentary opposition.Former Foreign Minister Tzipi Livniruined her reputation when she refused tojoin Netanyahu in his last government.While it is quite true that Livni was anineffective opposition leader, it is thevery fact of her refusal to join theadministration and "influence it fromwithin" that has provoked most of thecriticism by Israeli politicalcommentators. Similar criticism iscurrently being leveled at Labor Partyleader Shelly Yachimovich for statingclearly that she would not joinNetanyahu's next government, but wouldserve as leader of the opposition. Thereare certainly many reasons to criticizeYachimovich, but not her eminentlydemocratic decision to lead theparliamentary opposition. Very few ofour political commentators have everexpressed respect or even understandingfor the concept of opposition. The mostpopular political idea in Israel today isnational unity—better still, a NationalUnity Government: "We should all rallyround the flag and support ourgovernment in these critical times." Thisposition, widely espoused, echoes whatPeres has said repeatedly over the years.HOUSE OVERSIGHT 029708So, although the Peres vision of peace isa positive legacy, he has also taught usless helpful lessons. The settlements are asupremely negative inheritance, but Iwould argue that the anti-democraticrejection of the concept of aparliamentary opposition is an even moreharmful bequest handed down to us byPresident Shimon Peres.Daniel Gavron, who lives in Israel, is aformer journalist and the author of ninebooks, the most recent of which is HolyLand Mosaic, stories of cooperation andcoexistence between Israelis andPalestinians (Rowman & Littlefield,2008).Article 4.NYTIndia vs. China vs. EgyptThomas L. FriedmanFebruary 5, 2013 -- New Delhi -- It'shard to escape a visit to India withoutsomeone asking you to compare it toChina. This visit was no exception, but Ithink it's more revealing to widen theaperture and compare India, China andEgypt. India has a weak centralgovernment but a really strong civilsociety, bubbling with elections andHOUSE OVERSIGHT 029709associations at every level. China has amuscular central government but a weakcivil society, yet one that is clearlystraining to express itself more. Egypt,alas, has a weak government and a veryweak civil society, one that wassuppressed for 50 years, denied realelections and, therefore, is easy prey tohave its revolution diverted by the onegroup that could organize, the MuslimBrotherhood, in the one free space, themosque. But there is one thing all threehave in common: gigantic youth bulgesunder the age of 30, increasinglyconnected by technology but veryunevenly educated.My view: Of these three, the one that willthrive the most in the 21st century will bethe one that is most successful atconverting its youth bulge into a"demographic dividend" that keepspaying off every decade, as opposed to a"demographic bomb" that keeps goingoff every decade. That will be the societythat provides more of its youth with theeducation, jobs and voice they seek torealize their full potential.This race is about "who can enable andinspire more of its youth to help buildbroad societal prosperity," argues DovSeidman, the author of "How" andC.E.O. of LRN, which has an operatingcenter in India. "And that's all aboutleaders, parents and teachers creatingHOUSE OVERSIGHT 029710environments where young people can beon a quest, not just for a job, but for acareer — for a better life that doesn't justsurpass but far surpasses their parents."Countries that fail to do that will have ayouth bulge that is not only unemployed,but unemployable, he argued. "They willbe disconnected in a connected world,despairing as they watch others build andrealize their potential and curiosity."If your country has either a stronggovernment or a strong civil society, ithas the ability to rise to this challenge. Ifit has neither, it will have real problems,which is why Egypt is struggling. Chinaleads in providing its youth bulge witheducation, infrastructure and jobs, butlags in unleashing freedom and curiosity.India is the most intriguing case — if itcan get its governance and corruptionunder control. The quest for upwardmobility here, especially among womenand girls, is palpable. I took part in thegraduation ceremony for The Energy andResources Institute last week. Of 12awards for the top students, 11 went towomen."India today has 560 million youngpeople under the age of 25 and 225million between the ages of 10 and 19,"explained Shashi Tharoor, India'sminister of state for human resourcedevelopment. "So for the next 40 yearswe should have a youthful working-ageHOUSE OVERSIGHT 029711population" at a time when China and thebroad industrialized world is aging.According to Tharoor, the average age inChina today is around 38, whereas inIndia it's around 28. In 20 years, that gapwill be much larger. So this could be ahuge demographic dividend — "providedthat we can educate our youth — offeringvocational training to some anduniversity to others to equip them to takeadvantage of what the 21st-century globaleconomy offers," said Tharoor. "If we getit right, India becomes the workhorse ofthe world. If we get it wrong, there isnothing worse than unemployable,frustrated" youth.Indeed, some of India's disaffected youthare turning to Maoism in rural areas. "Wehave Maoists among our tribalpopulations, who have not benefited fromthe opportunities of modern India,"Tharoor said. There have been violentMaoist incidents in 165 of India's 625districts in recent years, as Maoists tapinto all those left out of the "Indiandream." So there is now a huge push hereto lure poor kids into school. India runsthe world's biggest midday lunchprogram, serving 250 million free schoollunches each day. It's also doubled itsnumber of Indian Institutes ofTechnology, from eight to 16, and isplanning 14 new universities forinnovation and research.HOUSE OVERSIGHT 029712But this will all be for naught withoutbetter governance, argues Gurcharan Das,the former C.E.O. of Procter & GambleIndia, whose latest book is "India Growsat Night: A Liberal Case for a StrongState." "The aspirational India has no oneto vote for, because no one is talking thelanguage of public goods. Why should ittake us 15 years to get justice in thecourts or 12 years to build a road? Thegap between [youth] aspirations andgovernment performance is huge. Mythesis is that India has risen despite thestate. It is a story of public failure andprivate success."That is what Das means by India grows atnight, when government sleeps. "ButIndia must learn to grow during the day,"he said. "If India fixes its governancebefore China fixes its politics that is whowill win. ... You need a strong state and astrong society, so the society can hold thestate accountable. India will only get astrong state when the best of society jointhe government, and China will only geta strong society when the best Mandarinsgo into the private sector."Article 5.HOUSE OVERSIGHT 029713Foreign PolicyDon't be too sure therewon't be another U.S.war in the Middle EastRichard L. RussellFebruary 5, 2013 -- Shortly before he leftoffice in Feb. 2011, Defense SecretaryRobert Gates told West Point cadets that"in my opinion, any future defensesecretary who advised the president toagain send a big American land army intoAsia or into the Middle East or Africashould 'have his head examined,' asGeneral MacArthur so delicately put it."The remark no doubt reflected Sec.Gates's fatigue and frustration from theenormous intellectual and emotionalburdens associated with overseeing thewars in Iraq and Afghanistan.One suspects, however, that in a morereflective moment, Gates would haveacknowledged that "never say never" is awise rule of thumb in planning formilitary contingencies, especially in theregion that makes up Central Command'sarea-of-responsibility. Few, for example,predicted the 1979 Soviet invasion ofAfghanistan. Gates himself -- who was asenior CIA official during the covert warsupporting the Afghan resistance -- surelydid not anticipate then that the UnitedHOUSE OVERSIGHT 029714States would have to return toAfghanistan two decades later to oust aTaliban regime that was harboringterrorists. Before 1990, moreover, no onepredicted that Iraq, having just ended abitter eight-year war with Iran, wouldswing its battered forces south to invadeKuwait.So if it's conventional wisdom that theUnited States will not, or should not,intervene militarily in the Middle East orSouth Asia after it draws down forces inIraq and Afghanistan, it's also likely deadwrong. What is true, however, is thatpolitical and military trajectories in theMiddle East and South Asia are likely toincreasingly challenge U.S. contingencyaccess in the coming decade. The abilityfor the United States to surge large-scaleforces into the region, as it did in the1990 and 2003 wars against Iraq, willgrow increasingly circumscribed. TheUnited States will have to adapt to thisnew strategic landscape by developingmore nimble, highly-mobile, stealthy, andnetworked forces, and by abandoning thetraditional practice of slowly and steadilybuilding up conventional forces atregional logistic hubs prior to launchingwar.* * *Perhaps the most significant factor thatportends against further intervention inHOUSE OVERSIGHT 029715the Middle East and South Asia isincreased political resistance -- andoutright opposition -- from the countriesin the region. That resistance is likely tocome from the new regimes emergingfrom the Arab uprisings, as well as anumber of Gulf monarchies.Indeed, the political trends in the regionare unlikely to conform to the rosypredictions of democratic peace theorists,whose musings have implicitly informedthe security policies of both Republicanand Democratic administrations fordecades. Old authoritarian regimes seemto be passing the way of the dodo bird,but the new regimes taking shape areheavily influenced by militant Islamicideology that will make them less likelyto engage in security or militarycooperation with the United States.Democracy optimists argue that theseideological regimes, once entrenched inpower, will have to moderate their zeal inorder to govern. Pragmatism willultimately trump ideology. That line ofreasoning, however, is based on theassumption that the policy decisions ofsuch regimes can be explained by rationalchoice economic theory. In other words,if they want to attract international capitaland participate in the world economy,they are going to have to break with theirideological affinities. But that reasoningignores a hard fact of internationalHOUSE OVERSIGHT 029716politics: that time and again, political andideological prerogatives trump economicrationality. It made little economic sense,for example, for Pakistan to pursue anuclear weapons program in the 1970s,just as it makes little economic sense forIran to do so today. Clearly, bothPakistan and Iran made major policydecisions based on political-militarypriorities rather than economiccalculations.As for the surviving monarchies in theMiddle East, they too will likely be lessaccommodating to American militaryforces than they have been in the past. Tobe sure, much of the Arab support forpast American military operations -- likeboth Iraq wars -- was hidden from thepublic eye. Arab states often loudly andpublicly denounced "unilateralAmerican" military action in the region atthe same time as they supported it inbackroom dealings, quietly authorizingfacilities support and air, land, and seaaccess.But if Arab Gulf states were quietlysupportive in the past, their opposition toAmerican military force is likely to growin the future. They read the aftermath ofthe Arab uprisings much differently thandid American and Europeanpolicymakers. The Gulf monarchies wereshocked that the United States"abandoned" Egyptian President HosniHOUSE OVERSIGHT 029717Mubarak in his time of need in early2011. Their leaders expected the UnitedStates to push for Mubarak and theEgyptian military to crack down onpublic protests in Cairo. After all,American policymakers during the Carteradministration had at least given thispolicy option consideration during theIranian revolution in 1979.Already, several Gulf states have begunto translate their displeasure into policyindependence from Washington. In 2011,for example, a coalition of Gulf states ledby Saudi Arabia intervened in Bahrain toquell domestic unrest in the islandcountry. They did so under the banner ofthe Gulf Cooperation Council (GCC),which for years had been a fecklessmilitary force. Largely unnoticed inWestern commentary was that the GCC,for the first time in its history, mounted arelatively effective military intervention.Bahrain today is for all intents andpurposes a province of Saudi Arabia,even if it is not polite to say so indiplomatic circles. Since the Iranianrevolution, Bahrain -- like the UnitedArab Emirates, Kuwait, Oman, and Qatar-- has pursued close ties with the UnitedStates, in significant measure tocounterbalance Iran and Saudi Arabia.With Washington at their back, they wereable to stake out security policies thatwere at least nominally independent fromHOUSE OVERSIGHT 029718Saudi Arabia. When Saudi Arabia wantedAmerican forces removed from thekingdom, for example, Qatar was eagerto compensate by hosting a more robustAmerican command presence in theregion.The Arab uprisings and subsequent GCCintervention in Bahrain have turned thetables, making Saudi security backing anecessity for the smaller Gulfmonarchies. From their perspective,American forces are clearly more capablethan Saudi forces, but given thealignment of their interests, Riyadh is amore reliable security partner. Gulfleaders and military commanders in thecoming decade will be focused on how toavoid following in Mubarak's footsteps.Part of minimizing that risk will involvedecreasing security dependency on theUnited States. Gulf leaders have to worrythat if push comes to shove, theAmericans will throw them under a busjust like they did to Mubarak.* * *If the political dynamics in the MiddleEast and South Asia do not favor furtherAmerican military intervention in thefuture, neither do the emerging militarytrends. The proliferation of supersoniccruise missiles and mines in the regionwill make for nasty forced entries intoHOUSE OVERSIGHT 029719narrow maritime confines like the SuezCanal, the Red Sea, and the Persian GulfBut the likely proliferation of nuclearweapons -- and ballistic missile deliverysystems -- will pose even moreformidable challenges to conventionalmilitary surges in the region. In thefuture, the United States will not be ableto take for granted unchallenged surgesof naval, air, and ground forces intoregional theaters via logistics hubs. Thesehubs -- like the American naval presencein Bahrain -- are large, readilyidentifiable, and will be increasinglyvulnerable to future targeting by nuclearweaponry.Iran's nuclear weapons, assuming it getsthem, will pose a direct threat toAmerican military surge capabilities.Although American policymakers andmilitary commanders might feelconfident that they could surge forcesinto the Gulf despite Iranian nuclearthreats because of the American nucleardeterrent, Gulf security partners might bemore nervous and less willing tocooperate. As a result, they might notgrant access to U.S. air, naval, andground forces out of fear of angeringIran.American observers who doubt that Gulfstates would make such calculationsshould recall how Kuwait responded inHOUSE OVERSIGHT 029720the lead-up to Iraq's invasion in 1990.When faced with a build-up of Iraqiforces along its border, Kuwait decidednot to mobilize its military out of fearthat the move would provoke SaddamHussein. The incentives for Gulf states tomake similar strategic calculations in thefuture will be greater when Iran has aninventory of nuclear weapons to match itsgrowing ballistic missile capabilities.The Gulf states, moreover, will likelyreason that the U.S. capability to threatenor use force against a nuclear Iran will besignificantly diminished. Even withoutnuclear weapons, Gulf states have seen,in their view, a long history of Americanreluctance to threaten or use force againstIran. For example, the United States tookno direct military action against Iran afterit aided and abetted Hezbollah bombingsagainst Americans in Lebanon in the1980s, after Iran supported the bombingof Khobar Towers in Saudi Arabia in1996, or even after Iran supported thedeadly campaign of improvised explosivedevices (IEDs) against U.S. troops inIraq. Gulf states will no doubt judge thatif the United States was unable andunwilling to attack Tehran under thesecircumstances, then it is certainly notgoing to attack Iran in the future, when itwill be able to retaliate with nuclearweapons.HOUSE OVERSIGHT 029721American policymakers may counter thatIran would never be foolish enough tothreaten or use nuclear weapons againstthe United States, given its robust nucleardeterrence posture. But the threat or useof nuclear weapons might not look sofoolish from Iran's perspective. One ofthe great strategic lessons drawn from thelong history of conflict in the Middle Eastis this: Do not go to war without nuclearweapons, as Saddam Hussein did whenhe invaded Kuwait. The corollary is: Donot allow the United States tomethodically build-up forces in the Gulfprior to invading, as Saddam did both inthe run-up to the 1991 re-conquest ofKuwait and in 2003, before the drive totopple the regime in Baghdad.Drawing upon these lessons, Iran willlikely do everything in its power to denythe United States the ability to surgeconventional forces into the region -- andthat might include threatening to targetU.S. forces with nuclear weapons. Iranmight accept the risk that preemptive useof nuclear weapons could bring onAmerican nuclear retaliation, becausefailure to do so would mean certaindestruction for the regime. The UnitedStates would be able to build-upconventional forces in the region and oustIran's leaders just as it did in Baghdad.This line of strategic reasoning runscounter to conventional wisdom in theHOUSE OVERSIGHT 029722West, but we actually know little ornothing about what Iranian decision-makers think about nuclear weapons ordeterrence theory. Since the Iranianrevolution in 1979, opportunities for theexchange of professional views betweenWestern and Iranian scholars,policymakers, and military leaders onthese critically important issues havebeen extremely limited. Therefore, it's notunreasonable to assume that the Iranians,like American policymakers in the earlystages of developing their nuclear triaddoctrine, will think of nuclear weapons asmerely "big artillery." Unfortunately, theUnited States and its security partnerslack formal and informal exchanges withthe Iranians akin to the Cold Wardiscussions and arms control negotiationsbetween the Americans and Soviets,which allowed both parties to developmutual understandings of the other'sperception of nuclear weapons. Theseunderstandings were essential for crisismanagement in the Cold War strategicrelationship after the Cuban missilecrisis.Meanwhile, the Gulf states, led by SaudiArabia, are likely to look for their ownnuclear deterrents. Much like Francewanted its own nuclear force de frappeduring the Cold War, the Gulf states willwant their own nuclear weapons to deterIran. Saudi Arabia and the smaller GulfHOUSE OVERSIGHT 029723states will worry that the United Stateswould be deterred from coming to theirdefense in future regional crises by Iran'snuclear weapons.Saudi Arabia and other Arab states arelikely to see nuclear weapons as a quickfix for all of their security woes.Although they have been on a shoppingspree in the past decade, buyingexpensive and sophisticated Westernmilitary technology, they have had atough time absorbing the new technologyand fully utilizing and integratingweapons systems. To be sure, in a roughnet assessment, Saudi Arabia and itsallies in the Gulf have significantlygreater conventional capabilities thanIran. But if Iran goes nuclear, they willwant to follow suit.* * *Americans may be weary of conflict inthe Middle East and South Asia, butstrategic prudence demands that wecontemplate future military interventionsin the Central Command theater. A scanof the horizon reveals that both politicaland military trends in the region poseformidable obstacles to conventionalforce surges into the region.But there is another wrinkle in this storythat U.S. policymakers must contend withas they plan for the future. As Gulfmonarchies seek to reduce theirHOUSE OVERSIGHT 029724dependence on American military power,they will increasingly look to China forsecurity assurances. China does not havea political agenda devoted to promotingdemocratization, and it maintainspolitical and diplomatic ties with bothArab states and Iran. China's militaryactivity in the region is modest butincreasing, as evidenced by its recentpeacekeeping dispatches to the regionand naval port visits in the Gulf Beijingis likely to send more naval forces to theGulf to increase its presence there andenhance its ability to protect the sea laneswhich bring oil to China's thirstyeconomy. China is keenly aware that theUnited States has naval supremacy in theGulf, but will be working to erode thatstrategic edge in the future.Faced with these realities, there is a needfor new thinking and innovativeconceptualizations of surges intoCentcom's area of responsibility. Theatercampaign planners will have to thinkabout contingencies in which the UnitedStates cannot slowly and methodicallybuild up forces in the region and thenkick off campaigns after most troops,arms, and equipment are in place. FutureU.S. force build-ups in the region will befar too vulnerable to preemptive nuclearstrikes. As a result, planners will have todevise campaign plans in which theinsertion of U.S. military forces beginsHOUSE OVERSIGHT 029725with an immediate rolling and flowingstart. The United States will have to workfrom smaller troop footprints and beprepared to start fighting even as follow-on-forces are on the way. Ideally, theseforces would flow from multiple stagingpositions to reduce vulnerability tonuclear attack. The politics of the region,however, will work against securing amultitude of staging areas from which todeploy.The region under the purview ofCentcom has always been riddled withpolitical violence that has posedformidable challenges to militaryoperations. But in plotting a course overthe horizon, the political and militaryobstacles for American military surgesinto the region are poised to grow evenlarger. As a result, theater contingencyplanners will have fewer good options forprojecting American military power intothe region -- and they'll have to do morewith the bad and the ugly.Richard L. Russell is Professor ofNational Security Affairs at the Near Eastand South Asia Center for StrategicStudies.HOUSE OVERSIGHT 029726Article 6.The DiplomatGetting to the EndgameWith IranRobert DreyfussFebruary 6, 2013 -- Why did it take solong to secure a date for talks betweenIran and the P5+1?After all, in the weeks before thepresidential election in November, it wasreported that the United States and Iranhad already tactically agreed to conveneprivate, one-on-one talks. And since thenthe United States, the European powers,Russia, and China, all sought to arrangeanother round of negotiations, first inDecember and then in January. It nowappears that Iran, which is about to enterits presidential election season, hasfinally agreed to what will be the firstround of negotiations with the P5+1 sincethe last round in Moscow seven monthsago. On Tuesday, Tehran announced thatit will join talks on February 26 inKazakhstan.The negotiations will be a serious test forthe Obama administration and for JohnKerry, the new secretary of state.Previous rounds have all faltered becauseneither side was willing to makeHOUSE OVERSIGHT 029727concessions to the other, and so far thereis little sign that the United States and theP5+1 have improved their offer to Iranvery much. As the talks were announced,the Washington Post reported: "The P5+1powers have made only mild revisions toa proposal that Iran flatly rejected lastJune." Until now, the United States hasbeen unwilling to acknowledge Iran'sright to enrich uranium on its own soiland to suggest that some economicsanctions might be lifted as part of a deal,and Iran has refused to agree even to alimited deal called "stop, ship, and shut"— involving the suspension of itsenrichment to 20 percent purity, shippingits existing stockpiles of 20% uranium toa third country for processing, andshutting down its underground facility atFordo, near Qom — without an agreementto lift sanctions.After the reelection of Barack Obama inNovember, there were great hopes thatthe president would have greater politicalfreedom of offer concessions to Iran. Yet,publicly at least, the White House isn'tsignaling that it is ready to make a moregenerous offer to Iran, and in fact Obamain January signed into law yet anotherround of draconian economic sanctions.Perhaps as a result, Iran allegedlydragged its feet on setting a date for talks.Despite prodding from the P5+1 —including urgent efforts by Russia — inHOUSE OVERSIGHT 029728January Iran reportedly went silent abouttalks. Russia, increasingly frustrated bythe inability of Tehran and the West tonegotiate seriously, vented its frustration."Some of our partners in the six powersand the Iranian side cannot come to anagreement about where to meet," RussianForeign Minister Sergei Lavrov told anews conference. "We are ready to meetat any location as soon as possible. Webelieve the essence of our talks is farmore important (than the site), and wehope that common sense will prevail andwe will stop behaving like littlechildren."According to analysts in Washington,reinforced by comments from Iran itself,a big reason for Tehran's recalcitrance isthat Iran wants to prove to the UnitedStates that its vaunted sanctions regimewill not force Iran to make unilateralconcessions at the bargaining table. Inaddition, Iran is concerned that it won'tget much in return in talks with the West,and that it will be asked to makeunilateral concessions on uraniumenrichment without getting sanctionsrelief in return. Combined with Iranianinternal divisions, as its own presidentialelection season gets underway, that couldmean that for the next six months or soAyatollah Ali Khamenei simply won't beready to talk seriously, despite schedulingthe Kazakhstan round.HOUSE OVERSIGHT 029729Others suspect that Iran is waiting to seehow President Obama's new nationalsecurity team — with Kerry as secretary ofstate, Chuck Hagel as secretary ofdefense, and John Brennan at the CentralIntelligence Agency — will shapeObama's stance at any talks.In Washington, some would argue there'sa growing consensus, at the level of thinktanks, Iran experts, and other analysts,that a preliminary, first-round deal,including "shop, ship, and shut," mightwork, if in response the P5+1 could liftsome of the economic sanctions on Iranand agree to limited Iranian enrichment.Perhaps the best-case scenario is thepossibility that there are ongoing, secretand back-channel talks betweenWashington and Tehran. Nothing alongthose lines has leaked and there is noindication of this, yet. But in advance ofthe first round of Iran-P5+1 talks inVienna in 2009, the United States andIran did indeed engage in quiet, behind-the-scenes diplomacy.In fact, of course, any sanctions relief forIran will occur slowly and step-by-step,not all at once, in parallel with stepstaken by Iran and openness to moreintrusive inspections and oversight by theIAEA.But it's certainly not helpful that in earlyJanuary yet another round of unilateralHOUSE OVERSIGHT 029730sanctions was passed by Congress andsigned into law by President Obama. Thecomplex set of new measures targets keyindustrial sectors, including shipping andimports of products such as aluminum,steel and coal, and seeks to block Iranfrom using barter commodities such asoil and gold to pay for imports. TheWashington Post paraphrased U.S.officials as saying that, "the new policiesare closer to a true trade embargo,designed to systematically attack andundercut Iran's major financial pillarsand threaten the country with economiccollapse." Obama signed the NationalDefense Authorization Act (NDAA) thatcontained the sanctions provisionsdespite having hinted earlier that hemight veto the NDAA over a host ofmeasures contained in the bill.If the Obama administration believes thatever-tougher sanctions will cause Iran tocave in at the talks, it's likely that theyare badly misreading Iranian politics.For many observers, however, and forIran, too, the nomination of Hagel forsecretary of defense may be a sign thatthe White House is beginning to realizethat sanctions, and threats of militaryaction, won't force Iran's hand.As has been widely reported, hawks,neoconservatives, and members of thepro-Israel lobby in Washington haveHOUSE OVERSIGHT 029731slammed Hagel for his past commentsand positions on Iran. In conjunction withIsrael-friendly members of Congress,they've warned Obama to rein Hagel inso as not to send a dovish signal toTehran. Robert Satloff, executivedirection of the Washington Institute forNear East Policy (WINEP), a pro-Israelthink tank, warned bluntly that the WhiteHouse should act quickly to make surethat Hagel backs away from his previousviews on Iran and at least toes theadministration's tougher line. "If theWhite House does not take steps soon tocorrect that impression, the chances for anegotiated resolution of the Iran nuclearcrisis will fall nearly to zero and thelikelihood of Israeli military action willrise dramatically," he wrote.Indeed, within days of his nomination assecretary of defense, Hagel was alreadybacking away from his earlier views,meeting with senior Pentagon officialsand influential senators who'll vote onhis confirmation to clarify his views onIran, asserting that he supports broadinternational sanctions against Iran andthat he believes that the military optionought to be "on the table." SeveralDemocratic senators who met with Hagelannounced with satisfaction that theformer senator from Nebraska hadsufficiently backtracked or "clarified" hisviews on Iran. Consequently, theyHOUSE OVERSIGHT 029732announced that he had earned theirsupport — and their vote.Then, during his confirmation hearingson January 31, Hagel — under hostilequestioning from several Republicansenators — backed away from earlier-heldpositions on Iran, including the role ofsanctions. And, though he previouslybeen a sharp critic of a military attack onIran, in his opening statement Hagel said:"I am fully committed to the President'sgoal of preventing Iran from obtaining anuclear weapon, and—as I've said in thepast—all options must be on the table toachieve that goal. My policy is one ofprevention, and not one of containment—and the President has made clear that isthe policy of our government. AsSecretary of Defense, I will make surethe Department is prepared for anycontingency."Satloff's views were echoed by anothertough-talking official at WINEP, formerAmbassador Dennis Ross, a pro-Israelhawk who served as Obama's top adviseron Iran during much of the president'sfirst term. "I think 2013 is going to bedecisive," Ross told the Los AngelesTimes, expressing concern about Hagel'sprevious comments. "Time really isrunning out. For diplomacy to have achance of success, the Iranians need tounderstand that if diplomacy fails, forceis going to be the result. We still have aHOUSE OVERSIGHT 029733challenge to convince the Iranians thatwe're quite serious about the use offorce," he said. "In the first term, theadministration didn't always speak withone voice on this issue. So what Hagelsays can make a difference."Despite his poorly receieved performanceat his confirmation hearings, it's widelybelieved in Washington that Hagel willbe confirmed as secretary of defense andthat his private advice to Obama willmore closely hew to his long-held beliefsabout the futility of sanctions and thegrave downside to a military strike. Partlyfor that reason, it remains very unlikelythat the Obama administration will resortto force to resolve the dispute with Iran.In fact, in remarks that Iranian officialscited as promising, Vice President JoeBiden expressed the administration'swillingness to hold bilateral talks with theIranians. In response to a question at theMunich Security Conference Biden said,"We have made it clear at the outsetthat...we would be prepared to meetbilaterally with the Iranian leadership"when Iran's Supreme Leader AyatollahAli Khamenei is serious aboutnegotiations. Iran's Foreign Minister, AliAkbar Salehi responded favorably andsaid, "I am optimistic, I feel this newadministration is really seeking this timeto at least divert from its previousHOUSE OVERSIGHT 029734traditional approach vis-a-vis mycountry."But if Washington remains committed toever-tougher sanctions — and withoutpromising Iran that sanctions will belifted as part of a deal — then negotiationsare unlikely to succeed. Vali Nasr,another former Obama administrationofficial with expertise on Iran, suggestedrecently that there's not much more theworld can do to sanction Iran, and thatsuch penalties could drive Tehran to takeradical action. The regime of sanctionsagainst Iran over its nuclear activity"really has reached its end," Nasr, dean ofthe Paul H. Nitze School of AdvancedInternational Studies at Johns HopkinsUniversity, said during the WorldEconomic Forum in Davos. And hewarned that unless there is a diplomaticbreakthrough — or, alternatively, anattack on Iran — "you really are lookingat a scenario where Iran is going to rushvery quickly towards nuclear power,because they also think, like NorthKorea, that (then) you have much moreleverage to get rid of these sanctions."Robert Dreyfuss is an independent,investigative journalist in theWashington, D. C, area, who writesfrequently for The Nation, Rolling Stone,and other publications. His blog, TheHOUSE OVERSIGHT 029735Dreyfuss Report, appears atTheNation.com. He is the author of'Devil's Game: How the United StatesHelped Unleash Fundamentalist Islam'.Article 7.The Wall Street JournalA New U.S. InternationalEconomic StrategyRobert B. ZoellickFebruary 5, 2013 -- Five years into theglobal economic storm, America'straditional allies, theEuropean Union andJapan, are struggling. Developingeconomies are reshaping the globaldynamic but also face big challenges. TheUnited States is the one country thatcould lead the modernization of theinternational system so as to supplysecurity, economic opportunity, andprospects for liberty. America's ownstrategy for economic revival cannot belimited to the nation's borders. And itsfuture foreign policy—its projection ofpower and principle—must be groundedin the emerging economic order.President Obama has said he admiresRonald Reagan's transformative thinking.If so, he should ask for an assessment ofHOUSE OVERSIGHT 029736Reagan's second-term innovations oncurrency and monetary affairs, trade, debtand development. Reagan advanced anew international system to match therevival of capitalism after the oil shocksand stagflation of the 1970s. America'ssuccess in the 1980s contributed both tothe end of the Cold War, by persuadingthe Soviet Union it could not keep up,and to two decades of exceptional globalgrowth.The new U.S. international economicstrategy should have five parts. First, thiscountry should strengthen its continentalbase by building on the North AmericanFree Trade Agreement with Canada andMexico. Together, the three partnerscould boost energy security, improveproductivity, and give North Americansan edge in manufacturing and otherindustries that are already experiencingrising wages in East Asia. A politicallyacceptable immigration policy, and apush for educational innovation usingnew technologies and competition, couldlead to a more prosperous, populous,integrated and democratic future for thehemisphere.Second, the extraordinary monetarypolicies of late, led by the FederalReserve's continued near-zero interest-rate policy, are taking us into unchartedterritory. Central banks have tried mostevery tool to stimulate growth; if Japan isHOUSE OVERSIGHT 029737any warning, the next tactic iscompetitive devaluation, which risks anew protectionism. "Currencymanipulation" could become a dangerthat reaches far beyond the debate aboutChinese policies. The world economywill need at some point to withdraw thedrug of cheap money and negative realinterest rates. The U.S. should anticipatethese dangers.The International Monetary Fund alsocould help set standards about exchange-rate policies and serve as a referee thatblows a whistle, even if it cannotpenalize. The IMF and the World TradeOrganization should anticipate this riskand give effect to the existing WTOagreement that economies must "avoidmanipulating exchange rates . . . to gainan unfair competitive advantage."Third, the U.S. needs to break the logjamon opening markets. As the leading worldeconomy, America should initially try tostrengthen and increase internationaltrade through the WTO. As mycolleagues at the Peterson Institute havepointed out, there are gains from thestymied Doha Round of tradenegotiations that should be harvestednow: ending agricultural exportsubsidies; limiting food export controls;eliminating tariffs and quotas for almostall exports of the poorest countries;facilitating customs and clearanceHOUSE OVERSIGHT 029738procedures; and improving thetransparency and speed of the system forsettling disputes.Next, the U.S. needs to keep the WTOcurrent with a vastly changed worldeconomy. The past WTO agreements arevaluable for all 158 WTO members. Butsome economies want to go further byreducing barriers in important sectorssuch as the services trade, environmentalgoods and services, governmentprocurement, and the digital economy.The services trade, for example, is vitalfor boosting innovation, productivity andjobs in developing and developedcountries alike—but regulatory,licensing, zoning and other barriers toservices are often equivalent to a 30%tariff or higher. Because liberalization inthe WTO has been stuck, countries haveturned increasingly to bilateral andmultilateral free-trade agreements, someof which have addressed these newertopics. The U.S. should foster the WTOprinciple of world-wide liberalization byadopting standards in various industriesand sectors that would be open to alleconomies that reciprocate. The WTOalso needs new rules for fair trading bystate-owned enterprises.Yet the U.S. also should use free-tradeagreements to open markets. Tradecompetition advances structural reformsHOUSE OVERSIGHT 029739and growth without bigger governmentand more spending. The Obamaadministration has talked about trans-Pacific and trans-Atlantic accords. Yet ithas failed to close even one new free-trade agreement. Ron Kirk, thepresident's trade representative, said in2009 that the administration did not have"deal fever." In fact, it has been "dealdelinquent."Fourth, gender equality is not only fairand right—it is smart economics. Noeconomy can reach its potential if itoverlooks the talents of half its people.The U.S. should lead in identifyingstructural barriers in countries that holdback girls' and women's health,education, credit, jobs andentrepreneurship.Finally, the U.S. needs to match growthpriorities of developing economies.President Obama should expand theglobal food-security initiative heannounced in 2009 to boost agriculturalproductivity and production across thevalue chain, including through the privatesector, in sub-Saharan Africa and otherpoor regions. Infrastructure investmentcould increase global demand todaywhile building productivity for tomorrow.The U.S. can lead a push with middle-income economies to develop public-private infrastructure models that moveHOUSE OVERSIGHT 029740from "one-offs" to a deal flow. The zeroreturns for savers from U.S. monetarypolicy can make infrastructureinvestments attractive.In addition to offering financing, theprivate sector can improve the design,operation and maintenance ofinfrastructure. As the state of Indiana hasshown, the federal government couldprofitably use public-private partnershipsfor its infrastructure, too.The administration has talked about someof these topics. But it is oddly passive, asif it were hesitant to lead. StateDepartment speeches are not enough. Tocarve out an international economicstrategy, the new secretary of theTreasury needs to choreograph policiesacross all U.S. departments and withmultilateral economic institutions. TheU.S. had better wake up: Internationaleconomic strategy is the new foreignpolicy.Mr. Zoellick has served as president ofthe World Bank Group, U.S. traderepresentative and deputy secretary ofstate. He is now a fellow at the BelferCenter at Harvard and the PetersonInstitute for International Economics.Click here to Reply or ForwardWhy this ad?Ads —HOUSE OVERSIGHT 029741Teach English WorldwideBecome an English Teacher Overseas Earn Your TESOLOnline at USC.rossieronline.usc.edu22.3 GB (10%) of 210.1 GBManage©2013 Google - Terms & PrivacyLast account activity: 0 minutes agoDetailsTeach English Worldwide***********************************************************The information contained in this communication isconfidential, may be attorney-client privileged, mayconstitute inside information, and is intended only forthe use of the addressee. It is the property ofJeffrey EpsteinUnauthorized use, disclosure or copying of thisHOUSE OVERSIGHT 029742communication or any part thereof is strictly prohibitedand may be unlawful. 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