Colombia extradites 14 paramilitary leaders to U.S.

Wednesday, May 14, 2008

Colombia’s government extradited fourteen paramilitary leaders to the United States.

An editorial in the Wall Street Journal says that by doing so, Colombian President Alvaro Uribe has “called the bluff” of U.S. congressional leader Nancy Pelosi, who had seized on the issue as a reason for not proceeding forward with the U.S.-Colombia Free Trade Agreement.

Read full story.


The Hunt for Mr. Europe

Tuesday, May 13, 2008

Newsweek International previews talks on installing a new EU president but questions how much clout the official will have once in office.

“In the past, there was just a president of the Commission to choose. But now the EU has greater ambitions. Its new treaty, currently going through its last ratification hurdles after interminable wrangling, calls for the selection of a president of the European Council. The post mixes the mundane, like chairing the meetings of the 27 heads of government, with the task of representing Europe globally. EU leaders have yet to define which is more important-making sure the agenda is ready, the pencils sharpened and the chairs in place for the council meeting, or being a bully-pulpit president of Europe who walks through the door at the White House, the Kremlin and the Forbidden City in Beijing and makes clear that the voice of Europe is important and heard around the world.”

Read full story.


Breaking the Failed-State Cycle

Monday, May 12, 2008

A paper from the Rand Corporation questions how to break the “failed state cycle,” particularly in the triangle formed by Sudan, the Congo, and Sierra Leone.

“Insecurity in the 21st century appears to come less from the collisions of powerful states than from the debris of imploding ones. Failed states present a variety of dangers: religious and ethnic violence; trafficking of drugs, weapons, blood diamonds, and humans; transnational crime and piracy; uncontrolled territory, borders, and waters; terrorist breeding grounds and sanctuaries; refugee overflows; communicable diseases; environmental degradation; and warlords and stateless armies. Regions with failed states are at risk of becoming failed regions, like the vast triangle from Sudan to the Congo to Sierra Leone. For security, material, and moral reasons, leading states cannot ignore failed ones. While no two failed states are alike, all typically suffer from cycles of violence, economic breakdown, and unfit government, rendering them unable to relieve the suffering of their people, much less empower them. This paper aims to improve the understanding and treatment of failed states by offering an integrated approach based on two ideas: that certain critical challenges at the intersections between security, economics, and politics must be met if the cycle is to be broken and that, in meeting those critical challenges, the guiding goal should be to lift local populations from the status of victims of failure to agents of recovery.”

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Drug cartel murdered Mexican official

Friday, May 9, 2008

Edgar Millan Gomez, the chief coordinator of Mexico’s government crackdown on organized crime was murdered in his home. The Los Angeles Times says the Sinaloa drug cartel seems the likely culprit.

Read full story.


Freedom of the Press 2008 Survey Release

Tuesday, April 29, 2008

Freedom House’s 2008 report on press freedom shows a clear decline in both authoritarian countries and established democracies.

PRESS RELEASE

Washington D.C., April 29, 2008 - Global press freedom underwent a clear decline in 2007, with journalists struggling to work in increasingly hostile environments in almost every region in the world, according to a new survey released today by Freedom House. The decline in press freedom - which occurred in authoritarian countries and established democracies alike - continues a six-year negative trend.

Freedom House will formally present findings from Freedom of the Press 2008: A Global Survey of Media Independence today at the Newseum in Washington. Freedom House Executive Director Jennifer Windsor will also unveil the Map of Press Freedom 2008, a central exhibit featured in the Newseum’s Time Warner World News Gallery.

While the survey indicated that setbacks in press freedom outnumbered advances two to one globally, there was some improvement in the region with the least amount of press freedom: the Middle East and North Africa. The survey attributes the gains in the Middle East and North Africa to a growing number of journalists who were willing to challenge government restraints, a pushback trend seen in other regions as well.

“For every step forward in press freedom last year, there were two steps back,” said Windsor. “When press freedom is in retreat, it is an ominous sign that restrictions on other freedoms may soon follow. However, journalists in many countries of the world are pushing the boundaries, crossing the red-lines, demonstrating commitment and courage against great odds and we are seeing a greater global flow of information than ever before.”

Out of 195 countries and territories, 72 (37 percent) were rated Free, 59 (30 percent) Partly Free, and 64 (33 percent) were Not Free, a decline from 2006. However, the study found that declines in individual countries and territories were often larger than in years past.   Key regional findings include:   

  • Central and Eastern Europe/ Former Soviet Union: This region showed the largest region-wide setback, with Russia, Georgia, and Kyrgyzstan, and several Central European countries, among others, showing declines. Only 18 percent of the region’s citizens live in environments with Free media.
  • Middle East and North Africa:  More unrestricted access to new media such as satellite television and the internet boosted press freedom regionally. Egyptian journalists showed an increased willingness to cross press freedom ‘red lines,’ moving the country into the Partly Free category.
  • Asia-Pacific: Restrictions on media coverage were imposed in Pakistan, Bangladesh, and Sri Lanka, and Vietnam’s government cracked down on dissident writers.
  • Americas: Guyana’s status shifted from Free to Partly Free, while Mexico’s score deteriorated by a further three points because of increased violence against journalists and impunity surrounding attacks on media.
  • Sub-Saharan Africa: The region accounted for three of the year’s five status changes: Benin declined from Free to Partly Free, while the Central African Republic and Niger moved into the Not Free category. Political conflict and misuse of libel laws were key factors behind a number of country declines.
  • Western Europe: The region continued to have the highest level of press freedom worldwide, despite declines in Portugal, Malta and Turkey, the only country in the region ranked Partly Free.

The survey, released annually in advance of World Press Freedom Day on May 3, assesses the degree of print, broadcast, and internet freedom in every country in the world. The 2008 ratings are based on an assessment of the legal, political and economic environments in which journalists worked in 2007.  

“Improvements in a small number of countries were far overshadowed by a continued, relentless assault on independent news media,” said Karin Deutsch Karlekar, Freedom House senior researcher and managing editor of the survey.

“We are particularly concerned that while abuses of press freedom continue unabated in restrictive environments such as China, threats are also apparent in countries with an established record of media freedom and in newer democracies in Central Europe and Africa.”

The key trends that led to numerical movements in the study include:  

  • Unrest and Upheaval: Media played a key role in covering coups, states of emergency and contested elections in countries such as Pakistan, Bangladesh and Georgia, and as a result, journalists became prime targets during government crackdowns.
  • Violence and Impunity: Violence against journalists and, in many cases, corresponding impunity regarding past cases of abuse was a key factor in determining press freedom in countries as diverse as Mexico, Russia and the Philippines.
  • Punitive laws: Media freedom remains seriously constrained by the presence and use of numerous laws that are used to punish critical journalists and outlets.The abuse of libel laws increased in a number of countries, most notably in Africa. Satellite television and internet-based news and networking sources are an emerging force for openness in restricted media environments as well as a key target for government control.
  • New media: The world’s worst-rated countries continue to include Burma, Cuba, Libya, North Korea, and Turkmenistan. In 2007, Eritrea joined the ranks of these exceedingly bad performers, while a crackdown in Burma worsened that country’s already repressive media environment, leaving its score second only to that of North Korea worldwide.

Detailed information from the survey are available here and by contacting Laura Ingalls at ingalls@freedomhouse.org.


Rising financial protectionism

Tuesday, April 29, 2008

The Wall Street Journal reports on how rising nationalism has provoked a trade backlash and may hinder global environmental negotiations.

“Some of the world’s biggest new investors are government-run investment funds. In the Middle East and Russia, sovereign wealth funds are powered by oil revenue; in Asia, they’re fed by other export earnings. In all, the funds have a total of $3 trillion in revenue and have used the money to buy stakes in Citigroup Inc., Merrill Lynch & Co. and other battered Wall Street firms. While the infusions have been lauded by the U.S. Treasury and capital-short Wall Street firms, they also aroused suspicions here and internationally that the investors could have political agendas.

Now, many national governments are raising barriers against such foreign investment. The U.S., Canada, Germany, France, Japan, South Korea, Australia, Hungary and Greece are proposing or enacting restrictions on investment by state-owned firms from other countries, according to a forthcoming study by the Council of Foreign Relations. China and Russia, which have sovereign wealth funds, are staking out ’strategic sectors’ where foreign investment would be restricted, say the study’s authors, investment-law specialist David Marchick and Dartmouth economist Matthew Slaughter.”

Read full story.


Mexico’s Crime Crackdown

Friday, April 18, 2008

Newsweek International reports on the showdown between Mexico’s military and the country’s drug cartels and corrupt police.

Read full story.


Delta-Northwest Deal

Tuesday, April 15, 2008

The Wall Street Journal reports on the agreed merger between U.S. airlines Delta and Northwest, a deal which faces resistance from regulators and employees but would create the world’s largest airline by traffic.

Read full story.


Showdown on U.S.-Colombia Free Trade Agreement

Thursday, April 10, 2008

United States House of Representatives Speaker Nancy Pelosi has signaled she will take the unusual step of changing House rules to effectively stop the 90-day clock on the Colombia free trade deal after President George W. Bush had submitted the measure for action.

The Brookings Institution examines the showdown on Capitol Hill over the U.S.-Colombia free-trade pact and says Colombian leaders may react sharply if the deal is shot down by the U.S. Congress.

Read full story.


Iran’s Global Ambition

Thursday, March 27, 2008

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by Michael Rubin

While the United States has focused its attention on Iranian activities in the greater Middle East, Iran has worked assiduously to expand its influence in Latin America and Africa. Iranian president Mahmoud Ahmadinejad’s outreach in both areas has been deliberate and generously funded. He has made significant strides in Latin America, helping to embolden the anti-American bloc of Venezuela, Bolivia, and Nicaragua. In Africa, he is forging strong ties as well. The United States ignores these developments at its peril, and efforts need to be undertaken to reverse Iran’s recent gains.

Both before and after the Islamic Revolution, Iran has aspired to be a regional power. Prior to 1979, Washington supported Tehran’s ambitions - after all, the shah provided a bulwark against both communist and radical Arab nationalism. Following the Islamic Revolution, however, U.S. officials viewed Iranian visions of grandeur warily.

This wariness has grown as the Islamic Republic pursues nuclear technology in contravention to the Nuclear Non-Proliferation Treaty safeguards agreement and multiple United Nations (UN) Security Council resolutions.

In addition, the Islamic Revolutionary Guards Corps (IRGC) has played an increasingly destabilizing role in Iran’s immediate neighborhood. But while U.S. officials scramble to devise a strategy to contain, deter, and perhaps roll back Iranian influence in the greater Middle East, Ahmadinejad’s government and the IRGC, flush with cash and overconfident with recent success, now aspire to be worldwide players.

Compartmentalized U.S. State Department and Defense Department officers focus on Iranian influence in Iraq, Lebanon, Afghanistan, the Persian Gulf states, and the Palestinian Authority, but a broader perspective that spans country desks suggests that the Islamic Republic now seeks to become a global power. Under Ahmadinejad, Iranian officials have pursued a coordinated diplomatic, economic, and military strategy to expand their influence in Latin America and Africa. They have found success not only in Venezuela, Nicaragua, and Bolivia, but also in Senegal, Zimbabwe, and South Africa. These new alliances will together challenge U.S. interests in these states and in the wider region, especially if Tehran pursues an inkblot strategy to expand its influence to other regional states.

Latin America: Challenging the Monroe Doctrine

There has long been an Iranian presence in Latin America. Some time ago, Hezbollah established itself at the point where Paraguay, Brazil, and Argentina meet. Terrorists linked to Iran bombed the Israeli embassy in Buenos Aires in 1992 and a Jewish community center in the same city in 1994. In 2006, Argentine prosecutors issued warrants for former Iranian president Ali Akbar Hashemi Rafsanjani and seven others on charges of ordering and masterminding the 1994 attack. The Hezbollah presence in the region has remained a source of concern for policymakers to the present.

Only under Ahmadinejad, though, has the Iranian government pursued a sustained effort to reach out to Latin American countries. Using hundreds of millions - if not billions - of dollars in aid and assistance, Ahmadinejad has worked to create an anti-American bloc with Venezuela, Bolivia, and Nicaragua. While Ahmadinejad’s first priority may be to solidify diplomatic support among third-world countries, his baitin - and the subsequent baiting by his allies - of Washington and his efforts to further destabilize the neighborhood suggest that he now seeks a permanent Iranian presence on the U.S. doorstep.

The cornerstone of Ahmadinejad’s Latin America policy is the formation of an anti-American axis with Venezuela, a goal driven as much by Venezuelan president Hugo Chávez as it is by the Iranian leader. During a July 2006 visit to Tehran, Chávez told a Tehran University crowd, “We have to save humankind and put an end to the U.S. empire.” The two met again just two months later during the Non-Aligned Movement conference in Havana. When Chávez again visited Tehran - just a year after his first visit - supreme leader Ayatollah Ali Khamenei granted him an audience, an honor bestowed only upon political figures the Iranian leadership deems its closest partners.

At the time, Iranian foreign minister Manouchehr Mottaki quipped that “Hugo Chávez is becoming - or rather has already become - a household name in Iran and perhaps the region, thanks to his frequent trips to the Islamic Republic.” Ahmadinejad and Chávez used the visit to declare an “Axis of Unity” against the United States.

Shuttle diplomacy has gone both ways. Just two months after fêting Chávez in Tehran, Ahmadinejad visited him in Caracas. “Together we are surely growing stronger, and in truth no one can defeat us,” he told the Venezuelan press. Standing beside Chávez during a trip to Tehran just four months later - Chávez’s fourth visit to the Iranian capital in just two years - Ahmadinejad declared, “The peoples of Iran and Venezuela will stand shoulder to shoulder with the disadvantaged nations of the world in spite of the opposition of World Imperialism,” which is Ahmadinejad’s moniker for the United States.

Whereas Iran plies poorer countries with aid on condition that they alter their stances toward the United States, both Iran and Venezuela are oil rich, and so the relationship is more cooperative. Certainly, Tehran appreciates Chávez’s diplomatic interventions. Indeed, had Venezuela been victorious in its efforts to win a UN Security Council seat in 2006, it is doubtful that Washington or its European allies would have achieved the symbolic victory of unanimous Security Council resolutions sanctioning Iran’s nuclear program.

Both leaders use their mutual embrace to overcome international isolation and sanctions. During his July 2007 visit to Tehran, Chávez presented Ahmadinejad with an Airbus A340-200 as a sign of friendship at a time when many Western countries looked askance at exporting modern aircraft to the Islamic Republic for fear that a plane might be cannibalized for spare parts in support of Iran’s aging military fleet. Such cooperation has made moot the efforts of U.S. secretary of state Condoleezza Rice to offer such concessions in order to entice greater Iranian compliance toward its international commitments. For example, just months after she agreed that U.S. companies could export spare aircraft parts to Iran, Ahmadinejad announced the commencement of scheduled passenger flights between Tehran and Caracas.

Both leaders have also used their solidarity to support the other against domestic criticism. On opening two Iranian factories in Caracas, Chávez lauded the “achievements made after the Islamic Revolution,” contrasting them sharply with life under the shah - comments that meant little to the Venezuelan audience but helped Ahmadinejad deflect domestic criticism of his management of Iran’s failing economy. Ahmadinejad, for his part, parroted Chávez’s anti-American rhetoric to the Venezuelan audience, supporting the populist president’s contention that Venezuelan ills derive from U.S. plots rather than economic mismanagement. More bizarre have been reports - clearly false - that “entire native tribes” in Venezuela have converted to Shia Islam. Such propaganda, however, plays well to clerical constituencies in Iran that may feel that their president’s adventurism runs contrary to more immediate Iranian regional interests.

Increased trade has augmented the diplomatic embrace. As Chávez moved to nationalize Western oil facilities in Venezuela, the Venezuelan state oil firm PDVSA announced a $4 billion joint Iran-Venezuela oil production project in east-central Venezuela. In April 2007, Mottaki bragged that bilateral trade between Venezuela and the Islamic Republic would soon total $18 billion, which, even if an exaggeration, is nevertheless a sign of Iranian strategy to pursue soft power influence. Several recent visitors to Caracas have commented on the number of Iranians in the city’s hotels.

Cuba, of course, has been part of the Iranian-Venezuelan embrace, although Cuban leader Fidel Castro’s illness and the communist island nation’s poverty may have dampened its utility as a primary player. Besides hosting the Non-Aligned Movement meeting in 2006, however, Havana has joined Tehran and Caracas in efforts to form a joint shipping line - an asset that, given the disorganization of U.S. and European sanctions enforcement, might help each country bypass certain sanctions. Not every shipping company, for example, may be as compliant with Tehran’s sensitivities as one operated by Cubans and Venezuelans. There have already been reports - refuted by the Venezuelan ambassador in Tehran - that Venezuela has enabled Iranian scientists to conduct some nuclear work in the South American state, out of the view of international inspectors.

Both Tehran and Caracas have used their petrodollar windfall to encourage states in Latin America and Africa to embark upon confrontational policies toward the United States. Perhaps the primary beneficiaries in Latin America have been Nicaragua and Bolivia. Just days after Nicaraguan president Daniel Ortega’s inauguration, Ahmadinejad reveled in the former socialist revolutionary’s return to power. “The two nations share identical ideals” and a common enemy in the United States, Ahmadinejad said. Ortega endorsed “strong bonds” between the “two nations and [their] revolutions.” Iran’s embassy in Managua is now the largest diplomatic mission in the city. Ortega returned Ahmadinejad’s visit within months of taking office, traveling to Tehran on a jet lent by Libyan leader Muammar Qadhafi. In Tehran, Ahmadinejad spoke of growing Iranian-Nicaraguan ties as the cornerstones of “an order based on justice, peace and brotherhood.” In a subsequent session with Ortega, Khamenei spoke of their mutual antipathy toward the United States.

Venezuela might be able to stand on its own, but Nicaragua cannot. The Islamic Republic’s embrace of Nicaragua came with strings attached. Storm-ravaged and unfriendly to investors, Nicaragua gained a needed cash infusion. In the months after Ortega’s visit to the Islamic Republic, the two countries signed a number of trade accords, and Tehran agreed to finance a $350 million Nicaraguan port. After the announcement of these deals, Ortega called the United States “a terrorist nation” and later endorsed the Islamic Republic’s nuclear program. Alluding to this program, Ahmadinejad even offered to transfer “up-to-date experiences and knowledge to Nicaragua.” One seasoned Nicaraguan ambassador, slightly embarrassed by Ortega’s pro-Iranian rhetoric, told an interlocutor that not only Tehran but also Caracas had made aid to Nicaragua contingent upon Managua’s frequent statements of support for Tehran. Regardless of whether Nicaragua is motivated by Venezuelan cash or ideological antipathy toward the United States, an isolated Tehran gains an ally with “identical and common political views.”

Bolivia, too, has become an important Iranian ally. Under the leadership of Juan Evo Morales, La Paz has welcomed alliance with Tehran. As with Nicaragua, Bolivia gets aid - upwards of $1.1 billion in “industrial cooperation” - and Iran gets a diplomatic ally. On September 4, 2007, amid international efforts to augment sanctions against the Islamic Republic, Bolivian foreign minister David Choquehuanca Céspedes endorsed “Iran’s nuclear rights” and called for international support for the Islamic Republic’s position. Tehran rewarded Bolivia with the opening of an embassy in La Paz, certainly a sign that Tehran no longer saw the landlocked South American country as peripheral to its interests.

There is nothing wrong with countries engaging with other countries. Tehran could argue that they have as much interest in strong relations with Latin America as Washington has with the Persian Gulf emirates or newly independent Central Asian or Caucasian republics. But it would be dangerous to dismiss Iranian outreach as altruistic and irrelevant to U.S. national security concerns.

The Islamic Republic’s state broadcasting authority has in recent months established partnerships with its Bolivian and Nicaraguan counterparts, not only to help these countries expand their own messaging, but also to have a platform for Iranian-sponsored broadcasts “for all of Latin America.” The idea that Ahmadinejad might see Latin America as a beachhead from which to conduct an aggressive strategy against the United States and its allies gained further credence when, earlier this month, Colombian forces raided a Revolutionary Armed Forces of Colombia (FARC) encampment and seized a computer whose files referenced FARC plans to purchase fifty kilograms of uranium, raising concern among some U.S. officials that the purchase may have been facilitated with Iranian money and offices.

Africa: Iran’s Next Frontier

With successive U.S. administrations and European governments effectively ignoring Africa, Tehran sees its fifty-two countries as diplomatic easy picking. On January 29, 2008, Mottaki declared that this year would mark a “milestone in Iran-Africa ties.” Three days later, while attending the Africa Union summit in Addis Ababa, Mottaki announced that Iran would soon host a summit of African foreign ministers in Tehran.

The traditional pattern in which Iranian actions fail to live up to diplomatic rhetoric also appears to be changing in Africa, with Tehran developing strong partnerships with a number of states. The Islamic Republic has forged particularly strong ties with Senegal, once a Cold War ally of the United States but now quietly turning into West Africa’s Venezuela. President Abdoulaye Wade has traveled twice to Tehran to meet with Khamenei and Ahmadinejad, first in 2006 and again in 2008. During his most recent visit, he provided a backdrop for Khamenei to declare that developing unity between Islamic countries like Senegal and Iran can weaken “the great powers” like the United States. It would be a mistake to dismiss this as a rhetorical flourish: on January 27, 2008, a week after Senegalese foreign minister Cheikh Tidiane Gadio announced that he, too, would visit Tehran, Minister of Armed Forces Becaye Diop met with his Iranian counterpart to discuss expanding bilateral defense ties between the two states.

Senior Iranian officials have returned the visits. On July 22, 2007, judiciary chief Ayatollah Mahmoud Hashemi Shahroudi and government spokesman Gholam-Hossein Elham - among the closest confidantes of Khamenei and Ahmadinejad, respectively - departed for Dakar, where they met Wade and Senegalese prime minister Cheikh Hadjibou Soumaré. Shahroudi declared, “We believe it is our duty to expand ties with Islamic countries and use the capabilities and potentials [sic] of Muslim states to help the growth and spread of Islam.” On March 12, 2008, Ahmadinejad left for a visit to the West African state.

While the Iranian leadership might be most interested in expanding a Muslim bloc - especially one that might supplant the influence of Sunni Arab states - the Senegalese leadership seems most interested in immediate economic benefits. “Energy, Oil Prospecting, Industry: Senegal Benefits from Iranian Solutions,” a headline in the official government newspaper declared after Wade’s first visit to Tehran. After the reciprocal Iranian visit, Wade announced that Iran would build an oil refinery, a chemical plant, and an $80 million car assembly plant in the West African nation. Within weeks, Samuel Sarr, Senegal’s energy minister, visited Tehran and returned with a pledge that Iran would supply Senegal with oil for a year and purchase a 34 percent stake in Senegal’s oil refinery. Such aid probably came with strings attached. On November 25, 2007, during the third meeting of the Iran-Senegal joint economic commission, Wade endorsed Iran’s nuclear program.

Senegal is not alone among those countries Tehran is cultivating. While Iranian officials trumpet Islam during meetings with Muslim officials, the Islamic Republic is willing to embrace any African state - Muslim or not - that finds itself estranged from the West in general and the United States in particular. Here, Sudan and Zimbabwe especially have been beneficiaries. Both European governments and Washington have sought to isolate Sudan for what many international human rights groups deem genocide in Darfur. As the international community sought to tighten diplomatic sanctions on Khartoum, Ahmadinejad moved to embrace Sudanese president Omar al-Bashir. Ahmadinejad was forthright: Iranian-Sudanese ties should be built around the understanding that both governments would defend each other in international settings. Just this month, Iran’s defense minister visited Khartoum and called the African state “the cornerstone” of the Islamic Republic’s Africa policies.

Robert Mugabe, Zimbabwe’s longtime president, has been as poisonous for his country as Bashir has been for Sudan. Mugabe’s government demonizes racial and ethnic minorities, and his economic policies have forced the breadbasket of southern Africa to face famine. But as the international community has isolated Mugabe’s regime in Zimbabwe, Tehran has reached out to fill the gap. Iranian politicians may speak of their commitment to social justice, but their crass indifference to social issues and public health and well-being are on display as they work to transform Africa’s most brutal dictatorship into a pillar of Iranian influence in Africa. Mottaki initiated outreach to Zimbabwe on the sidelines of the UN General Assembly in 2006. The two countries pledged uniformity of policy. At a Tehran press conference in November of that year, Mugabe said, “Iran and Zimbabwe think alike and have been described [as belonging to] the ‘Axis of Evil.’ . . . Those countries that think alike should come together.” In subsequent days, the two countries signed deals to boost energy cooperation, restart Zimbabwe’s defunct oil refinery, and underwrite agricultural policies that have left the southern African nation on the brink of famine. The Iranian ambassador in Harare pledged to help Mugabe repel sanctions.

South Africa has become another Iranian regional ally. Grateful for the Islamic Republic’s opposition to apartheid, the two countries formally reestablished relations in 1994. While subsequent bilateral rhetoric was always warm, in recent years, Tehran has used oil and trade to develop its ties with Pretoria. The Iranian strategy is deliberate. “South Africa is a key member of the Non-Aligned Movement, a bloc of developing countries that has resisted the efforts to force Tehran to halt uranium enrichment,” explained a commentary in Iran’s official English-language newspaper.

Having failed to get Venezuela onto the UN Security Council, the Iranian government has been anxious to exploit South Africa’s rotating membership and its presence on the International Atomic Energy Agency’s (IAEA) board of governors. In February 2007, for example, Ali Larijani, then the nuclear negotiator for Iran, traveled to South Africa to meet with President Thabo Mbeki. The strategy has paid dividends. Despite the February 2008 IAEA report that found that the Islamic Republic continued to enrich uranium in violation of the Nuclear Non-Proliferation Treaty safeguards agreement and two UN Security Council resolutions, the South African government has used its rotating membership on the UN Security Council to advocate against any further sanctions.

Iranian officials have been just as energetic in cultivating smaller African states. In September 2007, interim Iranian oil minister Gholam-Hossein Nozari pledged cooperation to exploit Uganda’s newfound oil field, and two months later, the Export Development Bank of Iran pledged $1 million to underwrite microfinance in Uganda. In November, Mottaki also announced an initiative to expand relations with Malawi after that country’s president endorsed Iran’s right to pursue nuclear technology. The same month, Mottaki welcomed the Côte d’Ivoire foreign minister to Tehran - again, after the West African nation’s ambassador threw his country’s support behind Iran in the dispute with the UN Security Council over Iran’s nuclear program. Indeed, while the Iranian government spreads millions of dollars around Africa, its aid appears conditional upon support. In recent weeks, the Iranian government has used declarations by the leaders of Lesotho, Mauritania, Mali, and Namibia to bolster support for its nuclear program.

Conclusion

Iran will remain at the forefront of U.S. concern well into the next administration. The 2007 National Intelligence Estimate, a joint product of the sixteen organizations comprising the U.S. intelligence community, undercut both a diplomatic solution to Iran’s nuclear defiance and the ability of the Bush administration to constrain Iran’s program through unilateral action. The January 6, 2008, confrontation in the Strait of Hormuz between U.S. warships and IRGC speedboats only underscored the tension.

Absent a diplomatic solution or the prospect of a viable military option, many in Washington embrace containment and deterrence as plan B. For example, General John Abizaid, commander of U.S. Central Command until March 2007, said, “I believe we have the power to deter Iran, should it become nuclear. . . . There are ways to live with a nuclear Iran.” Containing Iran, however, is easier said than done.

Throughout his administration’s second term, Bush has struggled to convince regional allies that his commitments to them are solid. As a result, regional U.S. allies like Egypt, Kuwait, Azerbaijan, and Turkey now seek separate accommodation with Iran.

But even as dozens of diplomats, intelligence analysts, and military officers focus on how to counter Iranian strategy in the region and enhance U.S. public diplomacy, the Iranian challenge has grown far broader. The United States has a compartmentalized strategy; Iran has a global strategy that Washington has been unable to counter: for every three trips Ahmadinejad takes to Latin America, Bush takes one.

The chances for long-term Iranian success may be doubtful - Latin American and African countries may welcome Iranian aid and take advantage of Tehran’s soft power with the same enthusiasm with which they sometimes divert U.S. Agency for International Development and World Bank assistance, but any ideological solidarity will be far more limited to each country’s immediate leadership. Still, Ahmadinejad’s outreach to Latin America and Africa can do damage. The Islamic Republic is not an altruistic power. Its aid is conditional, and sometimes these conditions run counter to U.S. interests. At the very least, Tehran’s newfound allies in Latin America and Africa provide needed diplomatic solace and enable Iranian authorities to launder dual use goods and, in theory, outsource suspect weapons research. More worrisome, the Islamic Republic might use its new havens to destabilize neighboring states - indeed, Tehran may be cooperating with Caracas to undermine Álvaro Uribe’s administration in Colombia - or as launching pads for terrorism against U.S. interests. The Pentagon may have strengthened its facilities in the Persian Gulf, but Iran and its proxies may find U.S. interests in places like Cancun and the Caribbean more vulnerable. Just as in 1972 the Popular Front for the Liberation of Palestine outsourced a terrorist attack on Israel’s main airport to the Japanese Red Army, IRGC planners may find their African and Latin American allies compliant in their desire to lash out at U.S. interests, especially if cooperation comes with further financial reward. The 1994 Buenos Aires bombing already demonstrates Tehran’s willingness to attack soft targets half a world away.

If the Bush administration and its successor continue to ignore Iran’s growing global ambitions and do not implement a strategy to reverse Ahmadinejad’s recent gains, Washington may find that Iran, not the United States, holds the upper hand in a high-stakes game of deterrence.

About the author: Michael Rubin is a resident scholar in foreign and defense policy studies at The American Enterprise Institute (AEI). His major research area is the Middle East, with special focus on Iran, Iraq, Turkey, and Kurdish society. He also writes frequently on transformative diplomacy and governance issues. In addition to his work at AEI, several times each month, Rubin travels to military bases across the United States and Europe to instruct senior U.S. Army and Marine officers deploying to Iraq and Kuwait on issues relating to regional state history and politics, Shiism, the theological basis of extremism, and strategy.

Reprinted with kindly permission of The American Institute.


Latin American Drugs: Losing the Fight

Tuesday, March 25, 2008

A report from the International Crisis Group says cocaine production in the Andes region appears to have set new records in 2007 and questions how policymakers can improve counternarcotics policy in a way that doesn’t jeopardize regional stability.

“Coca leaf and cocaine production in the Andean region appear to have set new records in 2007. Cocaine trafficking and use are expanding across the Americas and Europe. Despite the expenditure of great effort and resources, the counter-drug policies of the U.S., the European Union (EU) and its member states and Latin American governments have proved ineffective and, in part, counterproductive, severely jeopardising democracy and stability in Latin America.

The international community must rigorously assess its errors and adopt new approaches, starting with reduced reliance on the measures of aerial spraying and military-type forced eradication on the supply side and greater priority for alternative development and effective law enforcement that expands the positive presence of the state. On the demand reduction side, it should aim to incarcerate traffickers and use best treatment and harm reduction methods to avoid revolving and costly jail sentences for chronic users.

Well-armed, well-financed transnational trafficking and criminal networks are flourishing on both sides of the Atlantic and extending their tentacles into West Africa, now an important way station on the cocaine route to Europe. They undermine state institutions, threaten democratic processes, fuel armed and social conflicts in the countryside and foment insecurity and violence in the large cities across the Americas and Europe. In Colombia, armed groups derive large incomes from drug trafficking, enabling them to keep up the decades-long civil conflict. Across South and Central America, Mexico and the Caribbean, traffickers partner with political instability.”

Read full story.


U.S. Dollar plunges to record low

Friday, March 14, 2008

Bad U.S. sales data added to recession concerns as the dollar fell to record lows the euro and reached its lowest point against the Japanese yen since 1995. Gold also reached record highs, topping $1000 per ounce for the first time in its history.

Read full story.


Eastern Caribbean Currency Union (ECCU)

Monday, March 10, 2008

A new report from the International Monetary Fund (IMF) examines efforts by eastern Caribbean states to establish a currency union.

Read full story.


Updated probabilities of recession

Sunday, March 9, 2008

If we did go into a recession, something that’s always possible for the U.S. or Europe, we could lower interest rates and expand the money supply without worrying about the price of gold. (Professor Jeffrey D. Sachs)

Dear Colleagues,

I have updated the probabilities of recession. You can find them here.

I have posted the probabilities, the data used, and a technical note.

If you have any questions or any problems accessing the information, please let me know.

Best,

Marcelle Chauvet

Director, Latin American Studies Program & Associate Professor
Department of Economics, University of California Riverside, CA 92521
Phone: (951) 827 1587
E-mail: chauvet@ucr.edu  
Homepage: http://faculty.ucr.edu/~chauvet/mc.htm

Areas of Expertise: Economic growth in the U.S. has become significantly less volatile since 1984 and recessions are occurring less frequently, Professor Marcelle Chauvet says. She has developed a real-time recession prediction model and is consulted frequently by the U.S. government, foreign governments and the international business community. Using that model she predicted the end of the 2001 recession 16 months before the National Bureau of Economic Research announced the recession was over. Chauvet’s research focuses on macroeconomics and econometrics, and she is particularly interested in measuring and explaining business cycles, monetary policy, modeling risk premia on financial assets and their interactions with the real economy, and understanding the dynamics of long-run growth and development.

Selected publications:

“A Comparison of the Real-Time Performance of Business Cycle Dating Methods,” with Jeremy Piger, Forthcoming, Journal of Business Economics and Statistics, 2008.

“Forecasting Recessions Using the Yield Curve,” with S. Potter, Journal of Forecasting, 24, 2, 2005.

“Recent Changes in the U.S. Business Cycle,” with S. Potter, Manchester School, Vol. 69, No. 5, 2001, 481-508.

“An Econometric Characterization of Business Cycle Dynamics with Factor Structure and Regime Switches,” International Economic Review, Vol. 39, No. 4, November 1998, 969-96.

“Calling the Business Cycle,” with James Hamilton and Kevin Hassett, The American Enterprise Institute Press, Forthcoming, 2008.

“International Business Cycles: G7 and OECD Countries,” with Chengxuan Yu; Economic Review, Federal Reserve Bank of Atlanta, First Quarter, Vol. 91 No. 1, 2006, 43-54.

“Leading Indicators of Country Risk and Currency Crises ” The Asian Experience,” with Fang Dong, Economic Review, Federal Reserve Bank of Atlanta, First Quarter, Vol. 89, No. 1, 26-37, 2004.

Other Activities:

Associate Editor, Journal Macroeconomic Dynamics, 2003 - present

Member, “Brazilian Business Cycle Dating Committee” (CODACE - Comitê de Datação de Ciclos Econômicos), Brazil.


Fidel Castro’s dictatorship and the future of Cuba

Thursday, February 21, 2008

Mark Falcoff, former professional staff member of the Senate Foreign Relations Committee and a senior consultant to the 1983 National Bipartisan Commission on Central America, chaired by Henry Kissinger, wrote in The Times of London an op-ed about Fidel Castro’s resignation.

He Stood Up to the U.S.–and Survived
by Mark Falcoff, The Times (London)
February 20, 2008

“Dynastic succession within dictatorships is nothing new in today’s world, as Syria and North Korea have demonstrated. But in the case of Cuba the transfer of power from one Castro brother to another reveals a more complex and interesting process. For one thing, it has been occurring in slow motion and without incident for at least the past five years, during which time Raúl has placed people loyal to him (sometimes even family members) in all the key ministries and government agencies.”

Read full story.


“What does China think?” - A new book by Mark Leonard

Monday, February 18, 2008

whatdoesthinkchina.jpg

In his latest book “What does China think?“, foreign policy expert Mark Leonard, argues that China is emerging as a powerhouse of ideas about politics, economics and world order, and gradually changing from a traditional authoritarian state to a new ‘deliberative dictatorship’.

The book contends that the Chinese model of globalisation could reshape the face of Africa, Latin America and the Middle East, and charts the development of a new Chinese world view in which different factions are battling for influence:

- The “New Left” who want a gentler form of capitalism with a social safety net that could reduce inequality and protect the environment;

- The “New Right” who think that freedom will only come when the public sector is dismantled and sold off, and a new, politically active “propertied class” emerges;

- The “Neo-Comms”, cousins of American neo-cons, want to use military modernisation, cultural diplomacy and international law to assert China’s power in the world.

Mark Leonard argues that in the future, the West will be just as interested in the Chinese “Neo-Comms” plans for Asia as it is now in the “Neo-Cons” attempts to reshape the Middle East. Soon, the political struggle in the Communist Party will be seen as vital as the battle between US presidential contenders; and protesters outside the World Bank will complain as much about the “Beijing Consensus” as they do about the “Washington Consensus”.

Listen to a discussion on BBC Radio 4’s Start the Week, recorded on 11 February, 2008.


Canada’s Fossil Energy Future

Thursday, February 14, 2008

A report from the Canadian government’s agency focused on natural resources examines the country’s fossil energy reserves and outlines potential obstacles facing the country.

“Canada is experiencing a significant economic surge driven in large part by the natural resources sectors, in particular by the fossil fuel industries in Western Canada. Combined under the banner of fossil energy, Canada’s oil, natural gas, and coal resources make the country one of the world’s most attractive energy centres for continuing investment and development.

This economic opportunity comes with challenges, such as requirements to mitigate greenhouse gas (GHG) emissions and managing the impacts of climate change. Canadian GHG emissions are up more than 25 percent since 1990. There is growing public concern supported by consensus among the scientific community (the Intergovernmental Panel on Climate Change) that global emissions growth will soon drive atmospheric carbon dioxide (CO2) concentrations to levels not seen in 10 million years, bringing a growing risk of rapid climate change.”

Read full report.


Subprime Crisis

Monday, February 11, 2008

Germany’s finance minister said to ministers from the Group of Seven financial leaders that total financial losses from subprime mortgages could top $400 billion and that central banks may need to make more emergency cash injections.

The comments come amid speculation that the European Central Bank may be increasingly willing to cut rates. Thus far it has stood pat as the U.S. Fed and the Bank of England have made cuts.


Chavez’s Anti-Semitism

Friday, February 8, 2008

chavez.jpg

Venezuelan President Hugo Chavez and his followers have sought to harass and intimidate the Catholic Church, the media, university students, political opponents and multinational companies doing business in Venezuela, to name just a few targets.

Thus it can hardly come as a surprise that Chavez would also attack the Jewish community. In an op-ed in The Washington Post, Abraham H. Foxman, director of the Anti-Defamation League and author of “The Deadliest Lies: The Israel Lobby and the Myth of Jewish Control“, examines the troubling rise of anti-Semitism in Chavez’s Venezuela.

Read full story.


Je reviendrai à Montréal

Wednesday, February 6, 2008

Le désormais légendaire hymne à Montréal et au Québec interprété pour la première fois en 1976 par le chanteur et acteur québecois Robert Charlebois.

JE REVIENDRAI à MONTREAL
paroles: Daniel Thibon
musique: Robert Charlebois

Je reviendrai à Montréal
Dans un grand Bœing bleu de mer
J’ai besoin de revoir l’hiver
Et ses aurores boréales

J’ai besoin de cette lumière
Descendue droit du Labrador
Et qui fait neiger sur l’hiver
Des roses bleues, des roses d’or

Dans le silence de l’hiver
Je veux revoir ce lac étrange
Entre le crystal et le verre
Où viennent se poser des anges

Je reviendrai à Montréal
Ecouter le vent de la mer
Se briser comme un grand cheval
Sur les remparts blancs de l’hiver

Je veux revoir le long désert
Des rues qui n’en finissent pas
Qui vont jusqu’au bout de l’hiver
Sans qu’il y ait trace de pas

J’ai besoin de sentir le froid
Mourir au fond de chaque pierre
Et rejaillir au bord des toits
Comme des glaçons de bonbons clairs

Je reviendrai à Montréal
Dans un grand Bœing bleu de mer
Je reviendrai à Montréal
Me marier avec l’hiver
Me marier avec l’hiver


Human Rights Watch World Report 2008: Democracy Charade Undermines Rights

Friday, February 1, 2008

In its new World Report 2008, Human Rights Watch argues that established democracies are accepting flawed election results for political expediency, placing human rights at risk worldwide. Further, it says that U.S. and European government have often remained silent after these flawed elections.

Read full story.


The new role of oil wealth in the world economy

Monday, January 28, 2008

The McKinsey Quarterly examines the new role oil wealth plays in the global economy, noting its impact on interest rates and the pricing of global assets.

Read full story.


Canada withdraws support for UN anti-racism conference

Thursday, January 24, 2008

Canada will not support preparations for a UN anti-racism conference planned for Durban, South Africa, next year, a decision which has been welcomed by the Canadian Jewish Congress.

The government in Ottawa believes that the previous meeting in 2001 turned into an embarrassing promotion of racist attitudes and “a bit of a circus for intolerance and bigotry, particularly, but not exclusively directed at the Jewish people,” Jason Kenney, the government’s secretary of state for multiculturalism, told Canadian television.

He added that Hitler posters were displayed “by NGOs that have been re-invited by the organizing committee now chaired by Libya.” The opposition NDP party said Canada needed to be at the table in Durban and that the government should not abandon its traditional commitment to multilateralism.

The 2001 World Conference Against Racism in Durban highlighted divisions between the developing and developed world. It also showed the seething anger in much of the Arab world against Zionism, the international movement that helped establish Israel. Some countries, notably Pakistan and Syria, had wanted to state in a declaration that Israel’s “foreign occupation” had given rise to racism in the Middle East. The US and Israel alleged anti-Semitism was behind much of the anti-Israel rhetoric and walked out in protest.

The Canadian Jewish Congress praised Canadian officials for pulling their support for the conference and said it was a principled stand.