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G8Deauville - France

May 2011

The authoritative magazine for VIPs, delegates and diplomats


G8-G20 France 2011: New World, New Ideas
A note by François Delattre, Ambassador of France to the United States

The G7 was conceived as a gathering of leaders


of the most advanced economies to discuss informally
matters of shared interest. The world has dramatically
changed since the initial meeting. Russia joined the
group to form the G8, and a handful of developing
countries emerged as full players on the global
economic scene. Logically, the September 2009
Pittsburgh Summit marked a milestone in the reform
of global governance by making the G20 “the premier
forum for international economic cooperation” to
reflect these new global balances and the growing role
of the emerging countries. Direct, informal and results
oriented, this is how we envision the “new G8”.

As the group’s chair for 2011, France will organize


a “back to basics” summit on May 26-27 in Deauville,
Normandy, focusing on issues where G8 members
can have a genuine impact, but carefully avoiding
the duplication of the G20 agenda. We expect this
summit to enable the Heads of State and Government
of the most advanced economies to conduct direct
and informal talks. After consulting all the members,
François Delattre President Sarkozy identified three priorities on issues
of common interest for G8 countries.

First focus: The discussion on peace and security issues will be driven by the sweeping changes currently
taking place in the Middle East and North Africa region. We all support, collectively and individually, the democratic
transition in Egypt, Tunisia and beyond. But there is a clear sense among advanced countries that their success
in the long term will also depend on our capacity to respond and to foster economic growth and opportunities in
the region. Debating possible options on the table is precisely the kind of discussions that we need to have at a
political level between G8 leaders. This is really G8 at its best. In addition, hot political issues such as Iran and non-
proliferation, the Middle East, Afghanistan and Pakistan, new drug trafficking routes connecting Latin America, West
Africa and Europe, as well as the fight against terrorism will be on the menu of the leaders.

Second focus: New common challenges such as the Internet and green growth. For the first time, at the
Deauville summit a set of Internet-related issues will be addressed by the Heads of State and Government. The
discussion will focus on a number of challenges such as Internet access, cyber security and Internet governance.
With regard to innovation and green growth, the aim is to come up with concrete measures to develop these
essential new growth and job drivers for our advanced economies.

Third focus: The partnership with Africa. The G8 plays a major role in rallying support for development, especially
in Africa. It is also an issue of credibility for the G8: we must continue to deliver on our previous commitments to
this continent. A broader G8 meeting including African leaders and representatives of international organizations
will be organized. Discussion will be held on the major political and development challenges. We will take forward
the exercise launched by the Canadian presidency on monitoring the G8 countries’ commitments, especially in the
areas of health and food security, in a spirit of mutual accountability with African countries.

There is much to do in all three areas under consideration, and one meeting will not be enough, but we feel
ready to face up to the challenge.
Table of Contents
G8-G20 France 2011: New World, New Ideas 6 Humanitarian Organizations and the Economic 72
A note by François Delattre, Ambassador Downfall – Policy Implications
of France to the United States and What the Future Holds
By Andrew Reeve, Hinckley Scholar, Hinckley Institute of Politics
Editor’s Note 12
The Global Economics of Obesity 74
EDITORIAL 14 By Lisa Gable, Executive Director,
Healthy Weight Commitment Foundation
Publisher’s Note 16
G8 Should Deliver on Aid Pledges 76
What Good are Multilateral Summits? 28 to Sub-Saharan Africa
By Kenneth Weisbrode, Contributing Editor, The Diplomatic Courier Department of Economic and Social Affairs, and Rudi von Arnim,
Assistant Professor of Economics at the University of
The French G8 Summit Agenda: 30 Utah and Hinckley Scholar, Hinckley Institute of Politics
Does it Address the Major Challenges?
By Mark C. Partridge, Contributing Editor, The Diplomatic Courier The G8 Africa Partnership Must Face 78
the Challenge of China
Nuclear Reforms in the Wake of Fukushima 34 By David K. Schneider, Professor of Chinese Studies
By Casey Coombs, UN Correspondent, The Diplomatic Courier at the University of Massachusetts, Amherst

Confronting Iran’s Crusade for Nuclear Power 38 Promoting Economic and


By Michael Gillis, Hinckley Scholar, Hinckley Institute of Politics Political Liberty and Women’s Equality in Africa 82
By Michelle D. Bernard, Chairman, Founder, President and CEO,
Stuxnet, Internet System Flaws and Cyber Attacks: 42 the Bernard Center for Women, Politics & Public Policy 
The Perfect Storm?
By Ryan Paul, Hinckley Scholar, Hinckley Institute of Politics Helping the South Sudanese Diaspora Return Home 84
By Sheldon Wardwell, Hinckley Scholar, Hinckley Institute of Politics
How the International Community 46
Beefs Up Pressure on Somali Pirates Tools of Engagement: 86
By Sigurd Neubauer, Washington, Winning the Social Media War Expanding dialogue
DC based International Affairs Specialist can help develop and restore trust
By Sheldon Wardwell, Hinckley Institute of Politics
In Defense of Afghan Refugees and Asylum Seekers 50
By M. Ashraf Haidari, Diplomat, Afghan Ministry of Foreign Affairs Tunisia: Perfect Storm for Reform? 88
By Abdulwahab Alkebsi, Regional Director for Africa
What President Bush Got Right and Wrong in Iraq 54 and the Middle East, Center for International Private Enterprise
By Rami Turayhi, Contributor, The Diplomatic Courier
Increasing Access to Workforce-Ready Talent: 90
Bringing Change to Developing Countries’ 58 A Look at the “Partnership for Lebanon”
Modus Operandi: Optimizing Government By Christopher K. Bramwell, America-Mideast Education
Operations Through Capacity Building and Training Services, Inc. (AMIDEAST)
By Philip H. de Leon, President, Trade Connections International, LLC
Social Media and Rethinking 92
Getting On the Highway to IP Harmony 62 ‘The Clash of Civilizations.’
Ambassador James P. Cain and Kenneth S. Chang, By Graig Klein, Contributor, The Diplomatic Courier
Partners Kilpatrick & Stockton LLP
Modernization of Russia: Real or a Pipedream? 94
Meeting Promises: 66 By Richard Rousseau, Professor, Azerbaijan
A Call for Moving Forward at the G8 Summit Diplomatic Academy in Baku
Monique Perry Danziger, Communications Director,
Global Financial Integrity

The Digital Divide: Reinventing Rural Community 68


Experience through Internet Access
By Tisah M. Quarnberg, Jonathan A. Muir, Brady Alex Currit
and Ralph B. Brown, Brigham Young University
Welcome to the 37th G8 Summit in Deauville, France
When the Group of Eight (G8) leaders meet in Deauville, France this May they will be confronted with a litany
of issues. With food prices at record levels, a nuclear meltdown in the horizon, a still-lagging global economy, and
a string of revolutions in the Middle East, this G8 is confronted once again with challenges impossible to tackle in
three days.
As is customary with every rotating presidency, this year the French Presidency put forth its list of priorities
early, but some issues not already on the list are surely going to be discussed at the leaders’ gathering in Deauville.
The Internet and Green Growth. This is the first time that a set of Internet-related issues will be addressed
by the Heads of State and Government. Drawing a road map for international cyber security and deciding upon
consumer protection regulations becomes increasingly urgent, as 20% of global GDP is expected to come from
the Internet economy by 2030.
If anyone is poised to blaze the trail for Internet security it is the Group of 8, as their economic futures are
dependent upon communication infrastructures and their countries are home to the largest companies of the
Internet economy.
While we’re reimaging our international economic incentives, the ambition is to simultaneously invest equally
in green growth. Strengthening our international cooperation in these initiatives will propel the global knowledge
economy into the high-gear necessary for confronting our upcoming challenges.
The Peace and Security Component. Peace and security will be an essential element of the French
presidency of the G8. In addition to political issues such as Iran, the Middle East, Afghanistan, Pakistan and non-
proliferation, the French presidency will focus on new drug trafficking routes connecting Latin America, West Africa
and Europe, along with fighting terrorism, particularly in the Sahel.
Tackling the Pandora’s box of unfolding drama in the Middle East within a three-day summit is certainly
challenging. Remembering that a foundational objective of the G8 is to “counter terrorism and work toward the
non-proliferation of weapons of mass destruction,” the world’s leaders should leave this year’s meetings with at
least a few proposed plans of action to consider for increasing international security in the region.
And despite continuing turmoil in the earthquake aftermath, Japan will be in attendance, seeking to strengthen
partnerships in order to bolster recovery efforts.
The partnership with Africa. The G8 has always prioritized African developmental issues, and this year will be
no exception considering the unrest spreading across the entire continent. The group will focus on how to increase
African capabilities to deal with regional crises and new common threats, as well as how to assist development in
the failing states. “I would like our double presidency to prioritize Africa,” said French President Sarkozy at a recent
Press Conference.
Food Security. Food price volatility has tripled over the last 20 years. This is all the more extraordinary when
you consider that agricultural production will need to have increased 70% by 2050 to feed what will by then be nine
billion people on our planet. Rising food prices have already caused instability in a number of nations, and while
they weren’t the cause of political outbreaks in Northern Africa they certainly didn’t help.
President Sarkozy told reporters January 24 in Paris that “If we don’t do anything [about rising food prices],
we run the risk of food riots in the poorest countries and a very unfavorable effect on global economic growth.”
Life’s Certainties. On the long untouchable tax havens, 600 tax transparency and information exchange
agreements have been signed since April 2009. Thirteen countries have waived banking secrecy for tax purposes.
And we will have the first evaluations from the Global Forum on national legal frameworks so that we can start
making decisions.
“Our presidency’s ambition is simple: we live in a new world, so we need new ideas,” said President Sarkozy.
“This new world is marked primarily by an extraordinary change in the balance of world economic powers.”

Ana C. Rold

Editor-in-Chief

* Kaeleigh Forsyth contributed to this note.

G8
Summit 2011

12
EDITORIAL
EDITOR-IN-CHIEF
Ana Carcani Rold

EXECUTIVE EDITORS
Kirk L. Jowers
Courtney H. McBeth

MANAGING EDITOR
Rochelle M. Parker

CONTRIBUTORS
Abdulwahab Alkebsi
Rudi von Arnim
Michelle D. Bernard
Chris Bramwell
Ralph Brown
Ambassador James P. Cain
Congressman Jason Chaffetz
Kenneth S. Chang
Casey Coombs
Kaeleigh Forsyth
Monique Perry Danziger
Philip H. de Leon
Ambassador Lisa Gable
Michael Gillis
M. Ashraf Haidari
Graig Klein
Sigurd Neubauer
Ryan Paul
Mark C. Partridge
Richard Rousseau
Andrew Reeve
David K. Schneider
Jomo Kwame Sundaram
Rami Turayhi
Ambassador Pierre Vimont
Sheldon Wardwell
Kenneth Weisbrode

GRAPHICS DIRECTOR
Henri de Baritault

COVER DESIGN
Ellesse Sorbonne

LEGAL
The G8 Summit Magazine is a yearly publication independent of political affiliations or agendas published by
The CAT Company. The articles in the G8 Summit Magazine represent the views of their authors and do not
necessarily reflect those of the editors and the publishers. While the editors assume responsibility for the
selection of the articles, the authors are responsible for the facts and interpretations of their articles. Authors
retain all legal and copy rights to their articles. None of the articles can be reproduced without the permission
of the editors and the authors.
Publisher’s Note

Chris Atkins

Publisher
The CAT Company Inc
G8 Summit Magazine Company Ltd
Dear Summit Readers, The CAT Company Inc
President
Chris Atkins
I would like to take this opportunity to thank
all those involved for their dedication in helping Advisory Board
Peter Atkins
make this a successful 15th issue of the G8
Chris Atkins
Summit publication. Jennifer Latchman
Graphic Design and Art direction
The CAT Company is the only enduring Henri de Baritault
publishing company in the field, having published Founder intro60.com
a G8 Summit publication for 15 consecutive
President of Sales
years, continuing the tradition and continuing to Mike Nyborg
get great recognition as the Summit’s foremost
Sales Executives
publisher. Chris Atkins
Doug Lambert
The CAT Company continues to increase Guy Furl
the exposure of the magazine with help from Jessica Lane
John Armeni
the massive growth of digital technology, using Lloyd Murray
Scribd.com, Android and iPhone apps. Mike Nyborg
Ray Baker
As a result of the high quality of our publi- Hinckley Institute of Politics - University of Utah
cations, we are truly honored to be chosen to Director
publish the official APEC/CEO Summit magazine Kirk Jowers
Intern Manager
for the APEC 2011 USA host committee.
Courtney McBeth
Communication and Outreach Coordinator
I hope you enjoy our magazine and we look Rochelle McConkie
forward to seeing you in Cannes for the G20 Thanks To
Summit  and the APEC Summit in Hawai’i this Ana Carcani Rold
November.  Diplomatic Courier
Hinckley Institute of Politics
intro60.com
Yours Sincerely
Special Thanks To
Marie-Helene Glon
Professeure de francais
diplome de l’universite de la Sorbonne, Paris
Doug Breitmayer
Head of IT
David Castleton
Chris Atkins
K Street Media
Publisher and Founder, CAT Company Inc. Web Master

In Memorandum
Mark Marshall (1961-2010)
President of sales
Hyundai Reveals New Brand Direction & Statement
At the 2011 Detroit Motor Show

- Hyundai defines Hyundai Motor Company, the “Today, customers do not


world’s fastest-growing auto- believe that expensive cars with
new brand concept as motive company by brand, of- unnecessary technology are pre-
‘Modern Premium’ ficially announced its new brand mium,” Euisun Chung, Vice Chair-
direction and statement today at man of Hyundai Motor said during a
- 3-door coupe Velo- the 2011 North American Inter- speech at the Detroit motor show.
national Auto Show in Detroit. “Instead, they want their core needs
ster and Curb concept fulfilled at an accessible price and
vehicle embrace new New thinking. with a car that exceeds their ex-
attitude New possibilities. pectations; a car that reflects their
values and the times in which they
- Hyundai to “satisfy Hyundai’ new brand statement live.”
will be “New Thinking. New Possi-
new values by creating bilities.” This encompasses Hyun- “Hyundai is not just a com-
new possibilities with dai’s new brand concept, “Modern pany that makes cars. Hyundai is a
Premium,” which aims to provide company that creates new possibili-
new thinking about customers with emotional value and ties. Our goal is not to become the
our customers and our experiences beyond expectations biggest car company. Our goal is to
cars,” says Vice Chair- through new thinking and new pos- become the most-loved car com-
sibilities. The new brand direction pany and a trusted lifetime partner
man Chung also captures the spirit of change of our owners,” said Vice Chairman
at the automaker, which has shown Chung.
dramatic growth in all areas of busi-
ness. While traditional premium is
usually linked with high prices for
Advertisement

Now, at the 2011 North Ameri-


can International Auto Show in
Detroit, Hyundai unveils its latest
creations that capture this spirit:
Veloster, a three-door compact
coupe that brings innovation to the
segment. Veloster offers a coupe
design with the functionality of a
hatch and a unique third door on
the passenger-side for easy rear-
seat access.

Hyundai will also display its


HCD-12 Curb concept vehicle in
Detroit, while at the recent 2011
the privileged few, Hyundai’s `Mod- results, such as the highly-success- Consumer Electronics Show (CES)
ern Premium’ concept is based on ful `Hyundai Assurance Program’ in Las Vegas, the automaker
the idea that high quality does not launched in the U.S. market last launched its global telematics brand
necessarily require a high price for year and the 2011 Sonata, which Blue Link® and other independently
a limited class. Hyundai will offer shook up the mid-size family sedan developed in-vehicle technologies,
high-end, high-quality values at a segment with its dynamic `fluidic presenting its advanced vehicle
surprisingly attainable price and sculpture’ designs and unrivalled information technology systems to
values that customers never expe- powertrain package. Genesis, the world.
rienced or expected. This will not which won the prestigious North
be limited to just the product, but American Car of The Year award * More detailed press releases
throughout Hyundai’s entire busi- in 2009, also redefined luxury with on Veloster, Curb and Blue Link®
ness, operations and services. its attainable price compared to available.
its award-winning powertrain and
Hyundai’s new thinking and advanced audio and convenience
change in attitude has already been features.
applied in various areas with proven
Hyundai Proclaims Vision 2020
and Introduces New Group CI

“Together for a better Hyundai Motor Group, led by Hyundai Motor Group will have 50
future” Hyundai Motor Co. and formed affiliates, 126 trillion won in assets
in 2000, has achieved remark- and about 184,000 employees
- Hyundai Motor able growth in all areas related to worldwide.
the automobile sector, including
Group’s new vision en- production of cars, vehicle material, Hyundai Motor Group’s new
compasses Hyundai’s parts, auto finance and logistics. In vision, “Together for a better future,”
determination to firmly particular, the opening last year of expresses its will to create ultimate
its blast furnaces at its eco-friendly value and promote harmonious
establish itself as glob- integrated steel mill, Hyundai Steel growth for all stakeholders through
al leader Co., further strengthened the eco-friendly management and re-
Group’s status as a comprehensive spect for mankind.
- Hyundai announces automotive manufacturer.
Along with the Group vision,
five core values to re- To note, Hyundai has made a Hyundai Motor Group also an-
alize its vision for the giant leap forward in brand value nounced its vision and strategies
next decade, along over the last ten years thanks to for its three core sectors. By adding
its focus on quality management, the construction sector to its cur-
with the new group CI advancing from the world’s 10th rent driving forces, the automotive
largest car maker in 2000 to the and steel sectors, Hyundai Motor
(Seoul, Korea) Hyundai Motor No. 5 position in 2010. Group will be able to enhance its
Group today unveiled its new global presence and contribute to a
corporate vision named “Vision As a result of relentless effort better society and economy.
2020” that will guide the auto- and continuous global manage-
motive group for the next de- ment, Hyundai Motor Group now Vision & Strategies
cade, as well as its new Group has 42 affiliates compared to 10
logo. in year 2000, while its total asset
jumped 219 percent to 115 trillion Automotive Vision
Based on Hyundai Motor won from 36 trillion won in the same Vision slogan: ‘Lifetime partner
Group’s new management philoso- period. The total number of em- in automobiles and beyond’
phy “Realize the dream of mankind ployees worldwide also increased “To become a trusted lifetime
by creating a new future through 81 percent to about 177,000 from partner of our customers, we will
ingenious thinking and continu- 98,000 in 2000. bring a new perspective to auto-
ously challenging new frontiers,” the mobiles through innovative mobility
Group proclaimed “Together for a Furthermore, with the recent solutions based on human-centric,
better future”’ as its vision. acquisition of Hyundai Engineer- eco-friendly technologies and
ing & Construction (Hyundai E&C), services.”
Advertisement

Steel Vision
Challenge: Hyundai will al- The main color, `Hyundai Blue,’
Vision slogan: “Leading the ways explore new possibilities, embodies hope, possibility and
new era of steel” refusing to be complacent. trust. The straight line represents
“As an eco-friendly, resource- the unwavering, indomitable sense
circulating company, we will lead Collaboration: Create synergy of responsibility, the will to ac-
a new era in the steel industry by among all stakeholders and con- complish, and the compassion for
providing high value-added prod- cerned parties. humanity. The ultimate message is
ucts and services and realizing the bright future that Hyundai will
world’s best competitiveness based People: Create a corporate unfold.
on cooperative relations with our culture that respects talent.
stakeholders.” Established in 1967, Hyundai
Globality: A combination of Motor Co. has grown into the
Construction Vision Global + Ability, signifying Hyundai’s Hyundai Motor Group which has
strive to become a globally respect- ranked as the world’s fifth-largest
Vision slogan: “We build ed enterprise based on diverse automaker since 2007 and includes
tomorrow” backgrounds. more than two dozen auto-related
“As a global leading provider of subsidiaries and affiliates. Hyundai
high-value engineering solutions, Group CI Motor, which has six manufacturing
we will create the foundation for a bases outside of South Korea, sold
better life through cross-business The Corporate Identity rep- approximately 3.6 million vehicles
synergy and convergence with resents Hyundai’s management globally in 2010. Hyundai vehicles
future technologies.” philosophy to “Realize the dream are sold in 186 countries through
of mankind by creating a new some 5,300 dealerships and
Core Values future through ingenious thinking showrooms. Further information
and continuously challenging new about Hyundai Motor and its
Hyundai Motor Group unveiled frontiers.” products is available at www.
five core values that will help imple- hyundai.com.
ment the company’s new manage- The word Hyundai, rising from
ment philosophy: the ocean’s horizon, symbolizes
Customer: The customer the challenging and innovative spirit
will be top priority in all corporate and the confidence of the Hyundai
values. Motor Group.

Hyundai Begins Construction for Plant in Brazil


- Hyundai holds Hyundai Motor Company,
groundbreaking for South Korea’s largest automaker,
started construction on its seventh
150,000 units-a-year overseas plant in Piracicaba, Sao
plant in Piracicaba, Paulo state, to actively respond
to soaring demand in one of the
Brazil world’s fastest growing markets
and to bring its manufacturing pres-
- New plant will pro- ence in so-called BRIC countries
duce exclusive models full circle.
for region starting in 2H The groundbreaking ceremony
2012 for Hyundai Motor Brazil (HMB) was
attended by over 300 VIPs, includ-
- Brazilian plant will ing Sao Paulo Governor Geraldo
be Hyundai’s gateway Alckmin, Sao Paulo’s former Gov-
ernor Alberto Goldman, Piracicaba
to Central and South Mayor Barjas Negri and other gov-
American markets ernment officials, executives and
Advertisement

employees of Hyundai Motor and


its parts suppliers, as well as local
dealers and media members.

“Brazil is growing into one


of the world’s biggest economic
powers through stable economic provided Hyundai with a wide range 2014, when the 2014 FIFA World
growth and increased foreign of incentives such as free use of Cup™ takes place in Brazil. Hyun-
investment, and the state of Sao land, support in infrastructure such dai has an 11-year association with
Paulo is the heart of Brazil’s econ- as roads and some tax breaks. FIFA, serving as the official automo-
omy,” Jong-Woon Shin, Hyundai Furthermore, to secure the tive supplier to all FIFA-sanctioned
Motor’s Vice Chairman, said during highest quality, Hyundai Motor will events around the world. Hyundai is
his welcome remarks. “Hyundai enter the market with eight reli- currently one of FIFA’s top partners
Motor, together with its suppliers, able parts suppliers, as it has done and has extended its strategic
will create new jobs and contribute at other overseas manufacturing sponsorship agreement with FIFA to
to Brazil’s auto industry. Our new bases. By doing so, Hyundai Motor cover the 2022 FIFA World Cup™
plant, Hyundai Motor Brazil, will anticipates that it will create about in Qatar.
produce and sell only the best qual- 3,800 new jobs, including jobs
ity cars to strengthen the trust that created at its plant and at its parts Hyundai, which exported its
Brazilian consumers have shown in suppliers. first car to South America 1976 (the
our products.” Pony, to Ecuador), has been carry-
Hyundai Motor will apply its ing out a variety of Corporate Social
Hyundai, which is investing a extensive plant construction knowl- Responsibility (CSR) activities in the
total of US $600 million in the plant, edge to Brazil. Hyundai has set up region, including building houses
aims to start production in the sec- successful manufacturing bases and fixing public facilities, as well
ond half of 2012, eventually reach- in other emerging markets such as delivering donations in Brazil
ing a maximum capacity of 150,000 as India, China and Russia, not to to contribute to the local commu-
units annually. mention its plants in the U.S., the nity. Earlier this year, Hyundai sent
Czech Republic and Turkey. Hyun- a third round of its Happy Move
The first model to be produced dai’s greenfield investment experi- Global Youth Volunteers group to
at HMB will be a small hatchback ence in diverse markets will ensure Brazil.
specifically designed for the Central that HMB’s critical start-up phase
and South American market. Ad- will proceed smoothly in all areas Established in 1967, Hyundai
ditional models will be added after of operation, from manufacturing Motor Co. has grown into the
2013, depending on the market to administration and community Hyundai Motor Group which has
situation and demand. All these relations. ranked as the world’s fifth-largest
cars will be flex-fuel cars (which can automaker since 2007 and includes
run on both gasoline and ethanol), Hyundai Motor sold about more than two dozen auto-related
as 90 percent of cars in Brazil run 80,000 units in Brazil last year, a 19 subsidiaries and affiliates. Hyundai
on this type of fuel. percent increase from 2009. While Motor, which has six manufacturing
the i30 was the best-selling car in bases outside of South Korea, sold
The plant, which is located 160 its segment, Hyundai’s eye-catch- approximately 3.6 million vehicles
km northwest of Sao Paulo city, will ing ix35 and Sonata also boosted globally in 2010. Hyundai vehicles
be built on a 1.39 million square sales momentum upward. Increas- are sold in 186 countries through
meter site, while the plant will have ing sales of its premium lineup, some 5,300 dealerships and
a floor space of 69,000 square such as the Azera luxury sedan showrooms. Further information
meters, featuring complete vehicle and Veracruz, has also helped about Hyundai Motor and its
production facilities such as stamp- enhance Hyundai’s brand image in products is available at www.
ing, welding, painting, assembly the market. Hyundai expects sales hyundai.com.
and module lines. to continue growing in 2011, aiming
at sales of about 93,000 units in For more media information on
Piracicaba, which has a popula- Brazil. Hyundai Motor and high-resolution
tion of 380,000, is located in Sao product photos, please go to:
Paulo state, which is central to Hyundai’s presence in the www.cisionwire.com/hyundai-mo-
Brazil’s automobile industry. The region has gradually expanded over tor-company
state and city governments have the years and will reach a climax in
Hyatt Regency Paris-Madeleine
“Your Parisian Residence in the City of Light”
hotel is close to the city’s most
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home to the department stores
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Hyatt Regency Paris-Made-


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Glamorous, chic and sophis- Pascal Desprez introduced a new
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La Chinoiserie cocktails and champagnes.
La Chinoiserie, spectacularly
redecorated by the talented French Our barman, Alexis Martinez,
architect Pascal Desprez, sets the has personally selected a menu that
sophisticated tone for the entire hotel. features the best champagnes from
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Rich sofas and a contemporary production, and welcomes guests to
decor influenced by tones of black
Hyatt Regency Paris- and silver, and subdued illumination
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8th district in the cen-
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in the evenings, candlelight and Banquet Rooms
an open fireplace create a magical Meeting rooms and banqueting
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friends or, perhaps, the most secret events.
of rendezvous.
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Business guests can experience
In each of hotel’s rooms, four this “non-stop” meeting special offer
lighting levels are monitored to for just €105 per person, including
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guests’ events, from business Frédéric Charrier, a candy bar and
meetings or audiovisual events a mini bar.
to dinners and cocktails. A video This new brand of excellence
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room, while all the other areas have according to the season, feature treatments, combining the best
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Internet access and mini bar facilities salad and macaroons from Ladurée. for exceptional results and deep
are at guests’ disposal, while, for Practical, quick and modern, well-being.
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Hyatt Regency Paris-Madeleine facial care (New Youth), body
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rituals that involve high performance room, a fitness room equipped
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steam room, two cloakrooms and a
relaxation room.
What Good are Multilateral Summits?
By Kenneth Weisbrode, Contributing Editor, The Diplomatic Courier

Few people pay much attention to summits The long history of multilateral conferences suggests
nowadays. The attention they get comes more often some continuity with the G8 in the above respect. Rarely
than not from the street antics of those protesting them. has a conference succeeded in accomplishing its aims
There’s simply no comparing them to other multilateral if held entirely in secret; when conference delegates,
gatherings: the Olympics or the World Cup, for example, on the other hand, have seemed mainly interested
which are watched by millions around the globe. in publicizing pet causes—as in the last Copenhagen
Perhaps this is how it should be: discussions among climate conference—the event is taken to be a failure.
the world’s leaders cannot be subject to constant Generally bilateral summits are considered more con-
popular approval. And, unlike sporting events, they are sequential than multilateral ones, but not always. During
not meant to result in winners and losers, but instead the Cold War, some of the bilateral Soviet-American
in the advancement of mutual agreement on particular summits produced little besides an agreement to hold
questions. another summit, whereas the 1975 Helsinki Summit that
All this is true in theory, at least. Today’s multilat- established the Conference for Security and Cooperation
eral summits are so stage-managed as to give the in Europe is considered to have been one of the most
impression that they are nothing more than photo op- important meetings of the 20th century.
portunities. And who needs any more of those? Traditionally, the most memorable summits are those
Yet the world would be worse off without them. For convened to make or validate a peace treaty. From
there has yet to appear another means for the leaders the Congress of Gela and similar instances one reads
of the world to manage expectations on a collective, about in Thucydides to the Congresses of Vienna and
global basis, in spite of all that has been said and written Versailles, these multilateral summits (though they were
about the power of informal networks and associations not called that) were momentous affairs. By contrast,
in communicating directly to societies in the age of the most gatherings held during peacetime, and called
Internet. The latter has transformed much of diplomacy, for the purpose of preserving, rather than making or
to be sure. But face-to-face meetings of the world’s top enforcing, peace, are less memorable. Thus the context
leaders are still considered vital to what in the past was of summitry matters a great deal. Who can remember
called “world order” and today goes by the name of the positive achievements of a particular UN General
“global governance.” Assembly meeting? The multilateral conferences of the
Accordingly, these summits are as symptomatic of interwar years gave their name to a particular style of
the state of the world as they are essential components diplomacy—called, logically, “conference diplomacy”—
of it. In other words, they “are” as much as they “do.” but achieved little else that is remembered by anyone
Another way to understand this distinction is to invoke besides diplomatic historians. Most of the meetings of
the old dual nature of republican government: elected the G-groups—G7, G8, G20, and so on—have taken
legislatures and executives are both representative and place more or less regularly since the 1970s. But most
representational of the will of the people. That is, they try of us would be hard pressed to state a single, tangible
to represent both the interests of those who elect them achievement from any of them.
and the idea of what an elected representative should do. Yet, as any diplomat or legislator will tell you, “process”
In recent years the latter form of representation has is important and often overlooked. The norms, language
increasingly overtaken the former in many countries. and even the ideology, of global governance are written,
This trend is just as apparent internationally. Do the negotiated and interpreted at such gatherings. They
topics and problems discussed at the G8 represent the are essential purveyors of consensus and, occasion-
true interests and concerns of people around the world? ally, of disagreement. They may not solve all the world’s
How real and definitive are the usual designations of such problems, and may only constitute a small portion of the
representation: “rich countries,” “developing countries,” actual governance and consensus–building that goes
“Asian nations,” and so forth? Are not most delegates on in the world by governments and non-governmental
to the G8 and the G8 itself just as preoccupied with groups, leaders and citizens alike. But, to the extent they
promoting a certain image of global governance as they make possible and visible a forum for such consensus at
are with actually governing the globe? the very top, they will continue to serve a purpose, and
An empiricist would answer that it is impossible to won’t disappear any time soon.
separate the two roles. Hence the usage of a single
word—represent—to signify both. Maybe that is also as Kenneth Weisbrode is a Senior Contributing Editor
it should be. If the G8 were to deny its symbolic role it for The Diplomatic Courier magazine. He is a diplomatic
would be accused of hypocrisy; if it were to deny its historian and author of The Atlantic Century.
operational role, it would be accused of futility.
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The French G8 Summit Agenda:
Does it Address the Major Challenges?
By Mark C. Partridge, Contributing Editor, The Diplomatic Courier

The enduring challenge of any gathering of in- Finally, these gatherings hope to set long-term
ternational leaders is to make sure the event is more consensus, rather than the most recent crisis.
than a photo op. And recent meetings have meet that However, the unavoidable truth is that the G8
challenge serving as the primary platform for the world’s meetings are no longer the preferred decision-making
largest and most powerful governments to coordinate body for global consensus. A recent illustration of that
their responses to the economic collapse and continuing was President Nicolas Sarkozy’s failed attempt to get a
recession. no-fly zone in Libya through the body, only for one to be
The implosion of the financial system unified the approved by the United Nations a few days later. The
world. The panic that was sparked by Lehman Brothers’ group also took the commendable step of passing up
collapse caused investors to pull funds from even the economic coordination to the G20 group for this exact
safest asset classes. Markets around the world lost reason: a group that did not include Brazil, China, and
billions. India could hardly develop consensus within the global
In November 2008, in the wake of the collapse, economy during a time of crisis. Having ceded authority
the world leaders came together at a G20 meeting and on military and economic policy matters to other bodies,
agreed to “use fiscal measures to stimulate domestic what is the role of the G8 then?
demand to rapid effect” and to take “whatever further The forum recognizes that it is in the process of
actions are necessary to stabilize the financial system.” transformation. If that is the case, then it should take the
At that moment, leaders were united by a common time to transform itself.
threat and responded with a united front: stimulus, low The G8 members first came together because they
interest rates, and bailouts. represented the largest economies in the capitalist
With the G20 serving as the “premier forum for in- world. Using this same metric, the group is missing
ternational economic cooperation,” the G8 has looked the world’s second, eighth, and eleventh largest
to redefine itself. One of the explicit aims of the group economies—China, Brazil, and India, respectively.
under the French presidency is “avoiding duplication of By expanding the group to include a limited group of
the G20 agenda.” countries, it would almost immediately include all the
With economic coordination and response removed major and up-and-coming players on the world scene,
from its purview—particularly important now given the while also keeping the club small enough to make policy
sovereign debt crisis in Europe—what should the G8 proclamations. The G8 currently claims to represent 15
focus on? percent of the world’s population and 65 percent of its
Surely there is no dearth of challenges that need GDP; including these three nations would jump those
attention. The devastation in Japan, NATO’s engagement numbers to over 50 percent of population and about
in Libya, the democracy movement sweeping through 75 percent of global GDP.
the Middle East, high oil prices—yet these issues are This idea has been floated before. The so-called
not on the agenda for the upcoming meetings in France. “Plus-Five” group of Brazil, China, India, Mexico, and
In their stead are: Internet-related issues; peace and South Africa has been invited to past meetings, and
security, particularly drug trafficking and terrorism; and President Sarkozy pushed to formally expand the G8
partnership with Africa. to include them in 2008; however, little came of the
No doubt the agenda highlights important issues initiative.
that need action—particularly Africa. But they are not With the global economy on the mend again,
the pressing global issues of the day. Why? this may be the time to look to expand. For even if
Firstly, gatherings of international leaders always the G8 is able to reach meaningful conclusions at the
need to be planned long in advance, and preset agendas upcoming meetings, it is missing some of the most
can hardly predict the next crisis. For example, when important actors on the very issues they hope to
this agenda was set, Japan had yet to be hit by the resolve. No agreement on Internet policy, for example,
double blow of an earthquake and tsunami. can be reached without China, which is often cited for
Also, just because something is not on the agenda censoring and security issues.
does not mean it will not be discussed. Libya will The world and its challenges have changed. Now its
probably be a hot topic since six nations at the meetings institutions need to respond.
are members of NATO, which is overseeing the bombing
campaign. Mark C. Partridge is a Senior Contributing Editor
to The Diplomatic Courier magazine.
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Nuclear Reforms in the Wake of Fukushima
By Casey Coombs, UN Correspondent, The Diplomatic Courier

Windows of Opportunity

Calls for bolstering nuclear safety standards and


disaster response efforts came at a critical period on
nuclear decision-makers’ calendar. In early April, the
world’s 72 countries operating land-based atomic power
plants held their triennial convention at IAEA headquar-
ters in Vienna to discuss industry safety issues. Spe-
cifically, the powers exchanged country reports they
are obliged to submit as Contracting Parties to the
Convention on Nuclear Safety (CNS), a key safety treaty
adopted in 1994.

Mr. Sarkozy’s call for reform is squarely aimed at the


non binding status of the CNS. As a non binding treaty,
Contracting Parties are not compelled to follow CNS
standards; they are merely incentivized by a common
interest to formulate and achieve its international safety
benchmarks. The French President’s March 31 call
Fukushima, the worst nuclear accident since for reform in Tokyo seems to suggest that non binding
Chernobyl a quarter century earlier, may provide the standards are akin to no standards at all: “We must
impetus for far-reaching nuclear safety and disaster address this anomaly that there are no international
response reforms. In the wake of the disaster, Nicolas safety norms for nuclear matters. We want internation-
Sarkozy, President of nuclear-powered France, is al standards because the world is a village and what
advocating international nuclear safety standards by the happens in Japan can have consequences elsewhere.”
end of the year. Yukiya Amano, Director General of the Though he has yet to detail a plan of action, his words
International Atomic Energy Agency (IAEA), is pushing imply binding enforcement at the international level. In
to overhaul an anachronistic emergency response Tokyo, he pledged to take up the reform issue further
framework. The proposals could mark the beginning of by convening a special G20 meeting in Paris in May, in
big changes to the nuclear industry, changes that could addition to addressing it at the previously schedule G8
reassure the wary masses of nuclear energy’s safety. Or meeting the same month.
they could just be hot air.
While Mr. Amano’s call for reform does not take
Given that the calls were made in the global spotlight aim at the CNS, since a different Convention governs
leading up to several major meetings of the nuclear emergency response efforts, he encouraged the
powers that be, it is unlikely they are hot air—the stakes Contracting Parties in Vienna to consider lessons
are too high. But neither do they seem to have been learned from the Fukushima disaster. One such lesson
made entirely in good faith, at least in Mr. Sarkozy’s case, he reported to the IAEA Board of Governors on March
as the deadline by which he proposes to accomplish 21: “the current international emergency response
safety standards is exceedingly ambitious. framework needs to be reassessed. It was designed
largely in the wake of the Chernobyl disaster in 1986,
Ulterior motives aside, the leaders have placed before the information revolution. It reflects the realities
themselves at the forefront of a debate that will unfold of the 1980s, not of the 21st century.” A week later,
with two powerful interests in mind: national electorates, he called for a high-level IAEA Conference on Nuclear
who stunted nuclear energy’s growth following Safety to be held in Vienna before the summer. On
Chernobyl, and a reinvigorated nuclear industry that April 4, during his opening statement at the Vienna CNS
has been thriving in the present regulatory environment. meeting, he reiterated his position to the Contracting
Mr. Amano and Mr. Sarkozy’s leadership on the reforms Parties that “We cannot take a ‘business as usual’
may well determine whether nuclear energy continues approach.”
its recent and rapid expansion, or enters another post-
Chernobyl period of atrophy. The G8 Summit, to be held in France in late May, will
be chaired by Mr. Sarkozy and thus presents an excellent
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Global Security

opportunity to marshal support from his elite group of future disasters, as Black Swans manage to thwart even
peers. Indeed, he has a viable argument: the Fukushima the toughest, most well thought out safety measures.
disaster appears to be more the consequence of And his dirigiste-style approach to implementing reforms,
inadequate safety standards than deficient response if he goes the binding treaty route, will meet strong
efforts. The fact that the island’s seaside reactors and resistance from the 72 sovereign nations whose nuclear
safety is presently enforced by national laws created in
consultation with CNS benchmarks. Convincing the
nations to cede enforcement power to the international
level will be an uphill battle: considering the non-binding
CNS took two years to draw up, aspirations for a binding
one by the end of the year are ambitious even for the
notoriously dynamic French leader.

All that said, at the forefront of both leaders’ minds


throughout the reform process will be to reassure a
fearful global public that measures are being taken to
reduce the likelihood of the next nuclear Black Swan.
Public perception is perhaps the most crucial consider-
ation in implementing reforms.

the electrical infrastructure needed to cool them, which “There Is No Alternative Now”
lie along the ring of fire, were not built to withstand a
massive tsunami seems to reflect a major shortcoming As Mr. Sarkozy noted in his Japanese visit, “the
in the current system of safety standards. Even so, Mr. problem is more about establishing safety norms than
Amano’s brainchild will also be an appropriate topic of it is about the choice of nuclear energy, for this there
discussion at the Summit, for the Group of 8 house the is no alternative right now.” In a similar vein, Director
majority of the world’s nuclear energy capacity. Amano emphasized in his address to the Board of
Governors that “nuclear power will remain an important
Rhetoric into Results and viable option for many countries as a stable and
clean source of energy.” Nearly 500 nuclear power
Translating rhetoric into results will be far easier for plants currently produce about 14% of the world’s
the Director General than the French President. Imple- electricity and, according to the OECD’s Red Book;
menting Mr. Amano’s reform proposal would facilitate the industry holds the potential to double by 2035.
quicker distribution of more accurate information to the Nuclear energy is indeed here to stay for generations
public and shave critical hours off of response times. to come as part of the solution to rising world energy
That could stave off a more severe crisis and even save demand, worries about climate change, unpredictable
a few lives. And the Director General’s ideas should fossil fuel prices and energy security concerns. But the
be implemented rather painlessly in coming months, size and scope of the industry, whether it is a principal
much in the same way the present disaster response alternative energy or an ancillary one, hinges on the
framework was created within seven months following way in which Director General Amano and President
Chernobyl—the reason being that the IAEA plays a co- Sarkozy lead calls for reform. If orchestrated properly,
ordinating, consultative role in disaster response that public confidence in nuclear safety will not fall further,
does not greatly restrict states’ sovereignty. a necessary condition for continued expansion of the
industry. If mismanaged, by failing to reassure national
Implementing Mr. Sarkozy’s more ambitious reform electorates of the alternative energy’s safety, the calls
proposal would lead to stricter safety standards across for reform could well be remembered as nothing more
the board, such as heightened protective measures than hot air.
against earthquakes, tsunamis and other hazards, as
well as prolonged alternative power sources during Casey Coombs is a New York-based UN Corre-
blackouts. But Mr. Sarkozy’s ideas will not prevent all spondent for The Diplomatic Courier magazine.

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Confronting Iran’s Crusade for Nuclear Power
By Michael Gillis, Hinckley Scholar, Hinckley Institute of Politics

World leaders have remained concerned with Although slightly further away, Israel—Iran’s sworn
Tehran’s clandestine nuclear program since it was enemy—has voiced frustration at the inability of the
uncovered in 2002. The Iranian regime has proven to international community to stop the Iranian nuclear
be a master at stalling the efforts of the international program. In 1981 the Israeli Air Force executed a daring
community. Games of “cat and mouse” with Interna- strike mission against the Osirak nuclear facility in Iraq.
tional Atomic Energy Agency inspectors have given way Although this tough action drew fierce international con-
to talk of inspections. These talks of inspections have demnation, Israeli leaders never regretted undertaking
ultimately given way to negotiations for further negotia- the mission. A similar Israeli airstrike destroyed a secret
tions. With the exception of a few rounds of sanctions, Syrian nuclear facility in 2007—only this time, the Israelis
the Iranian regime has largely managed to nurture a did not draw strong criticism from the international
capable nuclear technology program. community.

Western leaders are also concerned with the parallel Iranian President Mahmoud Ahmadinejad has
development of advanced missile technology, which publicly questioned if the holocaust did indeed occur.
could easily become the ideal delivery platform for a He also grabbed headlines in 2005 when he mentioned
nuclear payload. that Israel must be “wiped off the map” when speaking
at an annual anti Israel demonstration in Tehran. The
As Iran continues to build up its stockpile, Arab Israeli government does not take these threats lightly.
leaders in neighboring countries are increasingly Israel is a small nation geographically. If even a single
showing signs of concern. The United States has begun nuclear warhead was detonated within Israel’s borders,
selling state-of-the-art missile defense hardware to help her very existence would be threatened. One thing is
preserve the current balance of power in the region. certain, Israel is capable of, and has a proven record of
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Global Security

using force when it has felt compelled to do so. If they There is obviously no simple answer to such a
feel that the threat of nuclear holocaust is imminent, the complex and intriguing problem. Stuxnet and targeted
Israelis will not hesitate to use force, regardless of the assassinations of Iranian nuclear scientists have
consequences. provided very real, but short-term solutions that can
only slow down Iran’s nuclear program. The only long
There are several options the international term solution that has any possibility of stopping the
community must develop in order to stop the Iranian Iranian nuclear program is regime change.
regime from being able to develop nuclear weapons.
Sanctions—though an external force—have added
The first option involves diplomatic engagement. In internal pressure on the regime. Young Iranians are
hindsight, it has become evident that the Bush adminis- feeling disenfranchised by their government’s inability
tration missed an opportunity to engage with the then- to meet their daily needs. Many young Iranians
willing Iranian regime. President Barack Obama tried have expressed frustration while trying to find jobs
to reengage with the Iranians shortly after he became in a stagnating economy. They are also upset with
president. Sensing weakness from an overstretched ever increasing fuel prices. Although Iran is a net
military, the Iranians responded coldly to these attempts exporter of crude oil, it lacks the refining capability
at reaching a diplomatic solution. to produce its own gasoline. The rising fuel prices
have become especially burdensome to the low and
The use of sanctions has often been controversial middle class.
and difficult because a broad consensus is needed to
pass them in the United Nations. Furthermore, there is During the run up to the 2009 Iranian presidential
no guarantee that other nations will not simply ignore election, young Iranians mentioned that the winds of
these sanctions in the pursuit of lucrative trade deals. political change were blowing. President Ahmadine-
Iran has been subjected to several rounds of sanctions jad’s challenger was a political moderate, concerned
which are applying pressure on the regime. Though not with Iran’s internal problems—like job creation—rather
a silver bullet, sanctions weaken the Iranian regime from than focusing on outside “enemies of the state.”
the inside by eroding public willingness to support their
brazen policies. After widespread reports of voting abnormalities,
these youthful voters took their demonstrations to the
The use of military force always catches the most streets of Tehran. The Iranian regime’s heavy handed
headlines in the media. The Iranian nuclear program response underscores the fact that they have lost
was built from its inception to withstand a military strike. touch with the will of the people. Unlike the current
With the Osirak attack in mind, the Iranian regime has Iranian regime, the majority of the Iranian people are
compartmentalized its nuclear infrastructure in hardened not obsessed with developing nuclear technology let
facilities which are located deep underground. If a alone “wiping other nations off the map.” They are more
military strike did indeed occur, most experts believe interested in finding meaningful jobs in order to control
that it would only be successful in slowing down the their own destiny.
Iranian nuclear program by a few of years, at best.
The international community must keep ratcheting
One last approach is the use of espionage. up the pressure on the Iranian regime through the use
Nobody knows who is behind the target assassina- of sanctions, espionage, and opposition support if it is
tions of top Iranian nuclear scientists, but the chilling truly committed to bringing the Iranian nuclear program
effects are very real. The discovery of the Stuxnet to a halt.
computer virus has also wreaked havoc on Iranian
nuclear hardware. The rapid spread of this advanced Michael Gillis, a Hinckley Scholar, graduated from
computer virus has cast suspicion on Iranian scientists the University of Utah with B.S. degrees in Political
who have access to sensitive areas of the program. Science and International Studies. He recently worked
Israeli officials estimate that the Stuxnet virus has in the United States Senate as an aide to Senator
slowed down the Iranian program by at least three Robert. F. Bennett.
years—making it just as effective, if not more so, than
a conventional military operation.

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Stuxnet, Internet System Flaws and Cyber Attacks:
The Perfect Storm?
By Ryan Paul, Hinckley Scholar, Hinckley Institute of Politics

Cybersecurity has always been important for the a highly sophisticated and targeted attack on Google’s
security and economic well being of every nation. What corporate infrastructure that originated from two
is troubling is that several incidents over the past two schools in China, one of which has ties to the Chinese
years show an increase in the potential damage cyber military, and resulted in the theft of the source code for
attacks can cause and reveal that increasingly sophisti- Google’s systems. The source code of these systems is
cated methods are being employed to carry them out. considered to be highly valuable and is kept under very
These incidents, which show the emergence of sophis- close guard. Along with Google, 81 other companies
ticated new malware, or malicious software, vulnerabili- with an additional 33 possible others were also targeted.
ties in the Internet’s structure, and also cyber attacks
against governments, show that solutions to cyberse- “Shadows in the Cloud” was another elaborate ex-
curity problems are sorely needed and the time to find ploitation campaign in which a China-based computer
them is beginning to run out. Governments will need to network targeted several of India’s government systems,
work with their citizens, the private sector, government as well as 35 other countries, including the United
agencies and with the governments of other countries States and even the office of the Dalai Lama. According
to solve these problems and create a safer, more secure to the U.S.-China Economic and Security Review Com-
Internet. mission’s report, “the full extent of the exploitation
remains unknown; the investigators determined that
The Chinese government has been suspected to those responsible successfully obtained sensitive files,
have been directly involved in two high profile cyber apparently belonging to the Indian government.” It is
attacks. One of these attacks was against commercial speculated that several files were encrypted diplomatic
entities and the other was directed toward foreign correspondence. Security experts have speculated that
governments. China is suspected to have had a direct the attack was carried out by agents of the state rather
involvement because of the nature of the attacks and the than direct Chinese involvement.
information which was stolen, but there is no evidence
to implicate them directly. The discovery of the Stuxnet virus in Iranian
industrial systems reveals the first time a virus has been
“Operation Aurora” occurred in early 2010, and engineered to directly attack systems of this type. It was
according to reports from Google and the U.S. China an amazingly complex piece of software and Symantec
Economic and Security Review Commission, it involved reportedly took six months to reverse engineer the virus
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42
and determine how it functions. They determined that At this point it should be clear that Internet systems
the virus’s main purpose was to reprogram industrial are vulnerable and the ingredients necessary for cyber
control systems, which are primarily used in gas warfare are beginning to fall into place. The problems are
pipelines and power plants, while remaining invisible very complex and there are no simple or quick solutions
to the operators and administrators of the systems. In for any of them. Experts in the technology sector have
addition to the Iranian facilities, Symantec reported that come up with several proposals that will at least partially
Stuxnet also infected 155 facilities in other countries as fix the situation. In his article addressing cybersecurity
well, although these infections were believed to have responses to threats, Scott Charney, the Vice President
been collateral damage. of Trustworthy Computing at Microsoft, proposed that
making the Internet less anonymous may help deter
Symantec estimated that it would have taken “six some cyber attacks and provide more accountability
months and five to 10 core developers, not counting since the perpetrators of these attacks would be more
numerous other individuals” to develop the virus, and easily found and held accountable for their actions.
due to the limited evidence it is nearly impossible to
know who is responsible, although it is suspected that A greater degree of education among the general
it would be a state entity. Copycat attacks are unlikely population would also go far in minimizing the number
of compromised systems that are connected to the
Internet. Charney also proposes a sort of digital health
certificate to allow safe systems to connect to the
Internet and to deny compromised systems access.

There have been past attempts to address vulner-


abilities in the Internet’s systems, but no agreements or
solutions have been made. It should be considered as
a high priority and governments need to work together
with the private sector to fix these vulnerabilities. Until
a solution is found, the best solution for the average
citizen is to encrypt data being sent from their computer
to the Internet.

Other possible solutions involve action solely on


the political level. The World Trade Organization and
the United Nations could adopt policies punishing
to appear in the near future because of Stuxnet’s countries that are lax on preventing cyber attacks that
complexity, however, according to Symantec, “Stuxnet originate from within their countries. This could be
has highlighted direct-attack attempts on critical infra- done through the use of international law or through
structure [that] are possible and not just theory or movie industry standards that help avoid the creation of a
plot lines.” Stuxnet’s existence brings the idea of cyber kind of Geneva Convention for cyber warfare. These
warfare one step closer to reality. actions may be necessary to prevent cyber warfare that
would wreak havoc on infrastructure that affects civilian
One major incident demonstrated just how populations.
vulnerable the systems that manage and route
Internet traffic are. Due to an error in a system, a large Ryan Paul is a new media producer who specializes
amount of Internet traffic was directly routed through in documentary production and Internet media. Ryan
a Chinese ISP’s servers. It is largely believed that this is a graduating with a degree in Mass Communication
was an accident, although according to the U.S.-China from the University of Utah. He grew up in Spokane,
Economic and Security Review Commission “evidence WA, but has lived across the United States, and is a
related to this incident does not clearly indicate whether proud citizen of Canada and the United States.
it was perpetrated intentionally ... the capability could
enable severe malicious activities.”
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How the International Community
Beefs Up Pressure on Somali Pirates
By Sigurd Neubauer, Washington, DC based International Affairs Specialist
As Somali pirates become bolder by the day, the officials also believe that lawless groups operating in
United States and its allies are responding by beefing up the high seas are increasingly engaging in other sorts of
naval operations while rapidly expanding their base-line organized crimes including kidnapping, arms smuggling,
for attacks from deep into the Indian Ocean. Given the human and drug trafficking.
severe impact decreasing maritime security has on

broader Middle East commerce and stability, Washington U.S. Calls for Partnership Against Piracy
is starting to adopt similar punitive measures to fight
piracy as it does international terrorist networks. In the middle of our Pentagon conversation, Admiral
Taking note of the rapidly deteriorating security Howard took a pen and passionately pointed to a map
situation in the Gulf of Aden, Admiral Michelle Howard hanging on her office wall as she described in great detail
of the U.S. Joint Chiefs of Staff emphasized in a recent how counter-piracy operations are carried out: “For
Pentagon interview that the overall solution to the instance, if a joint American, Singaporean and South
piracy problem is on land, and noted that: “strengthen- Korean naval patrol receive word of a suspected pirate
ing the Somali transitional government in concert with attack, the Singaporean frigate could scoot over and
the African Union’s peacemaking mandate is a key U.S assist their German and Spanish counterparts to fight
priority.” Admiral Howard also noted that until a legitimate off the attack.” Similarly, she emphasized: “A Japanese,
government takes control over the conflict-torn country, Russian and even Chinese vessel could assist the
pirates will continue to operate with impunity. Spanish and German commandos.” She explained that
decisions to assist allies are made in real time by local
As piracy has become one of the few thriving commanders at sea, there is no bureaucratic hurdle
businesses for coastal communities in Somalia, U.S. waiting for orders from the respective home offices.
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Global Security

“It’s all about partnership,” Howard reiterated. the combination of a rapidly deteriorating Yemeni
government and the already lawless Somali lands have
American partnership efforts also include conducting complicated long-term anti-piracy strategies to the
joint naval exercises with its Gulf-Arab allies through point where many experts believe that to fully eradicate
the Strait of Hormouz and beyond. In a separate the problem, pirate havens on land must be properly
interview with Bahrain’s Foreign Minister, Sheik Khalid targeted. On the other hand, while some 90 percent of
ibn Ahmad al Khalifa about the American presence in global trade travels by sea, Howard underscored that
the strategically located Emirate, the Sheik emphasized: the more successful counter piracy operations on the
“if it wouldn’t be for the U.S. navy presence, pirates high seas are, the more effective long-term stabilizations
would plague the entire Arabian Gulf all the way up to efforts of Somaliland will be.
Kuwait.” While, the Iranian regime continues to remain
skeptical of the U.S. Fifth Fleet’s permanent presence As part of a compressive anti-piracy strategy, the
in Bahrain—there are hints that Iran and the United French Parliament l’Assemblee Nationale recently
States may be on the brink of coordinating antipiracy passed legislation giving its naval forces full authority to
efforts as well. International media outlets reported in detain pirates and try them in a court of law, irrespec-
December 2010 that Iranian naval commander Admiral tively of their nationality or that of their captives. While
Gholam Reza Khaem Bigham met with U.S. counter- the new law gives the French navy effectively the same
parts on the sidelines at an international anti Piracy powers as the country’s police, many pirates have until
summit in Sri Lanka. Confirming that media report, an today been released after capture due to the lack of
unnamed Middle East scholar speculated whether U.S. proper legal framework to arrest them and bring them
Iranian counter piracy cooperation could serve as a on trial.
confidence building measure, since ties were officially
cut between the two countries following the Islamic Questioning the immediate effectiveness of the
Revolution of 1979. new French law, NATO’s Ocean Shield anti-Piracy
Commander Admiral Michiel Hijmans stated in an
No Links Between Pirates e-mail interview that the new legislation “could have
and Regional Extremists limited impact at first, but when the word has spread
that pirates are being prosecuted and have to spend
In a testimony to the severe impact piracy has on many years in prison, it can have a positive impact on
the estimated 23,000 to 25,000 ships annually passing reducing the will to become a pirate.”
through the Gulf of Aden’s ”International Recommended
Transit Corridor,” 2010 became a record year for Somali Although similar legislation has already passed
pirates as they hijacked 53 ships and held close to 1200 in several NATO countries, NATO itself does not have
sailors hostage. Since December last year, 28 vessels a legal framework to detain and prosecute pirates,
and 638 hostages are still held for ransom by pirates. Admiral Hijmans explained. According to Admiral
Hijmans, “if a warship operating within a NATO mission
Across the Aden Gulf, as Yemen is facing increasing is involved in a piracy attack, the decision whether to
instability by Houthi separatist rebels in the south, the detain and prosecute the suspected pirates rests with
Sanaa government is also battling an emboldened the warship’s national authorities—and not at sea.” As
Al Qaida in many of the country’s rugged and barren of today, the United States and Britain have agreements
provinces. When asked whether pirates are cooperating with the governments of Kenya and the Seychelles that
with Al Qaida affiliated groups operating out of Yemen, suspected pirates can be deported from their waters
or with the local Somali Islamist, Al Shabaab group, and then extradited to face prosecution.
Admiral Howard said that so far, there is no intelligence
based evidence to suggest that such an axis exist. Explaining the new legislation’s impact, Hijmans
noted how South Korea, the Netherlands and Germany
Comprehensive Solution Needed are currently prosecuting pirates “caught in the act.”

As of today, most experts believe that while there As case in point, German Deputy Defense Minister
may be pirates operating out of southern Somalia, the Christian Schmidt articulated in an interview how his
northern gangs are by far the most dangerous. Hence, country has deployed 1,400 troops to naval bases in
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Global Security

Djibouti and in Mombasa, Kenya to assist EU’s Naval bring the vessel back for ransom negotiations. Once at
Force’s (EUNAVFOR) counter-piracy operations. Schmidt sea, pirates immediately look for a target of opportunity.”
also stated that additional German naval vessels are par-
ticipating in joint patrolling exercises through the Strait of Case in point, recent data released by the Interna-
Hormuz while assisting U.S. and NATO forces to secure tional Maritime Bureau (IMB) finds that 92 percent of
the Gulf from pirates. all pirate attacks take place off the Horn of Africa by
Somalis. The same agency report revealed that pirate
How Pirates Adapt attacks increased by 10 percent from 2009 to 2010,
to International Pressure with a total of 445 attacks last year alone.
Therefore, as pirates respond more aggressively to
At the Pentagon, Admiral Howard described how the multinational naval presence, the Commander of the
pirates effectively adapt to new counter-piracy strategies. U.S. Fifth Fleet, Admiral Mark Fox, was quoted calling
“Since the beginning of my tenure, I’ve witnessed pirates for a new robust strategy to uncover their money trail
and supply networks on shore with equal emphasis as
those carried out in counter-terror investigations.

In perhaps the boldest counter measure today,


Admiral Fox also suggested resorting to more military
action usually associated with the U.S. counter-terror
campaign, including pre-emptive assaults and strikes
by armed drones.

While NATO does not have the mandate to carry out


the operations proposed by Admiral Fox, the Alliance
has provided a series of instructions to commercial
vessels on how to win time, in the event of an attack,
before naval forces arrive to their rescue. Among those
instructions: install racer wire/barbed wires on all ships—
and if attacked, respond with the vessel’s firefighting
equipments from the upper deck to steer off pirates.

going further and further out. From being 200 miles off Moreover, as part of a strategy to strengthen
shore, they went to 400 miles—and now they’re 450 overall security, South Korea’s Samsung Heavy
miles from India.” Industries developed recently a new anti-piracy alert
system capable of detecting smaller boats operating
Echoing that sentiment, Hijmans, the NATO in the vicinity often undetected by current marine radar
commander stressed how pirates have begun launching systems. According to a company statement, while the
their attacks from larger already hijacked vessels as they new system will issue an automatic alert when a vessel
often use the kidnapped crew as “human shields” while is approaching, it does not respond to ship-to-ship radio
seeking protection from navy commandos. “As they are communications. The state of the arts technology would
becoming more confident in their abilities to overpower a also leave sufficient time for sailors to remotely operate
ship while taking control, NATO in close cooperation with water cannons from the ship’s deck without being in
EUNAVFOR offers guidance and advice to commercial harm’s way, in the event pirates should attempt opening
vessels on how to best transition the most dangerous fire while boarding.
waters.”
Perhaps, after all, Admiral Howard was right: A
However, while Hijmans refused to speculate comprehensive strategy targeting piracy assets on
whether bolder attacks were caused by a deliberate land would be the best option to prevent pirates from
strategy by pirates and their backers on land, the Admiral operating with impunity. On the other hand, the need
emphasized how piracy was “opportunity driven.” for a joint U.S.-NATO mandate allowing for the arrest of
“Groups of pirates are sent out to sea with the means, all pirates seems equally apparent in order to fully
orders and equipment to attack with the intentions to combat piracy.

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In Defense of Afghan Refugees and Asylum Seekers
By M. Ashraf Haidari, Diplomat, Afghan Ministry of Foreign Affairs

One last trek, which often tragically ends the lives Executive Committee of the United Nations High Com-
of many boat refugees on the turbulent and sometimes missioner for Refugees (UNHCR), which governs the
stormy waters of high seas before they reach the shores agency, consists of 76 member-states that annually
of Greece or Australia, is only the tip of the iceberg. meet in Geneva to review and approve the agency’s
Afghan refugees, including many families with children, programs and budget. In the process, some member-
are not an exception and take the same life-threatening states ensure that their domestic immigration policies are
risk for a possible secure future. Last January, a ship taken into full account, before the agency’s operations
going to Italy with 260 people on board sank near the are adequately funded.
Greek island of Corfu. Twenty two refugees, mostly
Afghans, were reported to have been missing and In spite of these constraints, however, UNHCR has
drowned. And last December, a wooden boat packed enlisted the support of many outspoken celebrities not
with asylum seekers, including Afghans, smashed only to draw global attention to the plight of refugees
against jagged rocks in a storm off an Australian island, but also to speak up for the rights of refugees and basic
killing at least 27 people. human rights everywhere. Through UNHCR’s assistance,
Afghan refugees have never hesitated to return home as
But those refugees who survive such frequent soon as promising conditions have given them hope for
tragedies are no longer welcome in developed countries. restoration of peace and justice in their homeland.
Critics in those countries consider Afghan refugees as
“economic migrants,” wrongly comparing them with Buoyed by international re-engagement in
such migrants from peaceful but poor countries. But it Afghanistan after the fall of the Taliban in late 2001,
is imperative that countries with the strictest immigration more than five million Afghan refugees returned home
policies reconsider their position towards Afghan from Pakistan and Iran, as well as from other countries
refugees, who have proven time and again over the past beyond the region, during the early 2000s. This made the
31 years that if the security conditions were good in largest voluntary repatriation in the history of UNHCR.
Afghanistan, they would hardly abandon their villages of But the basic expectations of Afghan returnees were
origin internally, let alone taking the long deadly trek to dashed, as improved security, enhanced protection and
countries as far as Greece or Australia. reintegration assistance, and increased employment op-
portunities did not materialize in the years following their
It is not surprising that even the United Nations return home.
agency mandated to protect the rights of desperate
refugees is sometimes compelled to succumb to the Beginning 2004, however, the security situation
tough immigration policies of certain countries. The rapidly started deteriorating in the country, and each
following year witnessed intensified conflicts that indis-
criminately killed, injured, and displaced Afghans, most
of them recent returnees, who have lacked the financial
means or coping mechanisms of others to survive.
And as reintegration assistance, a critical component
of UNHCR’s durable solution to the Afghan refugee
problem, has failed to come forth, the returnees have
either ended up becoming internally displaced or fled
Afghanistan again.

In his December 2010 report on the situation in


Afghanistan, UN Secretary-General Ban Ki-Moon
highlighted worsening security throughout the country,
noting that that the number of security incidents was 66
percent higher than during the same period in 2009. He
added that anti-Government elements had continued to
increase their use of improvised explosive devices and
to directly target civilians through abductions and as-
sassinations. At the same time, he reported that suicide
attacks had averaged three per week, targeting primarily

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military forces but killing scores of civilians. In 2010, their relatives at home. In the long run, most resettled
unfortunately, more than 2,400 civilians were killed in Afghans will have gained wealth and higher education
Afghanistan, while over 3,200 others were injured. which they will use to invest in Afghanistan, evident from
the return of many well-off Afghans who have made
Against this grim security background in Afghanistan, significant contributions to Afghanistan’s reconstruction
all countries must honor the principle of non-refoule- since 2002.
ment, rooted both in international and Islamic law, to
refrain from forcible deportation of Afghan refugees Almost 2,500 years ago, Euripides wrote that
and to avoid indefinite delays in the processing of “there is no greater sorrow on earth than the loss of
their genuine claim for refugee status. Past experience one’s native land.” Indeed, for most Afghan refugees—
proves that resettlement of Afghan refugees in the like those desperately landing on the shores of Greece
developed countries will go a long way in helping rebuild and Australia for protection—no foreign land can ever
and develop Afghanistan. replace Afghanistan where they will return as soon as
they feel secure to do so.

Resilience and high achievement motivation that A former refugee and internally displaced person,
characterize most refugees will quickly enable resettled M. Ashraf Haidari works with Afghanistan’s Ministry
Afghan families to adapt into their new societies, taking of Foreign Affairs. He formerly served as the chargé
advantage of social and economic opportunities there d’affaires and political counselor of the Embassy of
to establish themselves and to continue supporting Afghanistan in Washington, DC.

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What President Bush Got Right and Wrong in Iraq
By Rami Turayhi, Contributor, The Diplomatic Courier

Mentions of President Bush tend to provoke strong Iraq have not gone unnoticed in the greater Arab world.
reactions from both his partisans and critics. He is often Shame is a powerful catalyst for change, and one cannot
accused of irresponsibly going to war in Iraq and precip- look toward a relatively freer Arab population without
itating that country’s slide towards civil war in 2006. At asking oneself: “If they can talk, argue, and debate, why
the same time, President Bush’s financial and economic can’t we?”
policies are often conveniently overlooked in retrospect,
as today’s political alarmism over a growing fiscal crisis in Underlying the assertion that Iraq has been and will
Washington drowns out thoughtful analyses of the past continue to be a force for positive change, there is also
a related question of who or what caused Iraq’s civil
conflict, largely fought between Sunni and Shiite Arabs
in the 2006-2008 post-invasion period. Some would
argue that President Bush, if nothing else, dismantled
the structures of an orderly prison state and thereby let
the figurative genie out of the bottle: if not for his ouster
of the dictator Saddam, Sunnis and Shiites would have
continued, albeit grudgingly, holding hands and singing
songs of peace in a Saddam-led Iraq.

This assumption is largely made by those who


either do not understand Iraq, or who have convenient-
ly chosen to ignore the yearnings of large swathes of
Iraq’s population. Iraq was never a model for stability
or inclusion. Indeed, Iraq’s Shiites were systemically
excluded from power over many generations, with the
Sunni Arab ruling class often looking down at them
as pre-Civil War white southerners regarded African-
American slaves: Shiites were non-people, not worthy
of self-rule, autonomy, or political power. Of course,
decade’s undoing of this nation’s financial regulatory not every Sunni Arab thought this way, and not every
regime. The irony is that most partisans and critics Shiite Arab played the part of the faultless victim, but
have largely gotten it wrong: President Bush’s Iraq war this political-cultural dichotomy – of a Sunni Arab ruling
will likely turn out to have been the catalyst of positive political class and a Shiite Arab underclass – persisted
change in the Middle East and Islamic world, while his in the broader Iraqi mindset for decades, if not centuries.
financial and economic policies have led to both an in-
creasingly unstable and unequal economic environment Overturning this accepted order would have
in the United States. necessarily led to civil strife and a violent reordering of
the Iraqi political structure whether or not it was President
First, let’s start with Iraq. President Bush is often Bush or the Iraqis themselves who ultimately overthrew
accused of irresponsibly going to war in Iraq, and Saddam. If one can accept this logical construction,
thereby causing bloody Sunni-Shiite strife in that then the blame that is often placed on President Bush for
country after the removal of Saddam Hussein. While Iraq’s intra-communal killings in the mid-2000s appears
it is true that President Bush’s oft-cited reason for war conveniently misplaced. It was not in fact the American
in Iraq – weapons of mass destruction – largely turned intervention that caused the civil war, but rather the
out to be false, his accompanying broader rationale for democratic reform itself that did so. Hence, as long as
war – planting the seeds of democratic reform in the one accepts the notion that the removal of Saddam and
Arab heartland – has indeed come to pass. We are the introduction of democratic reform in Iraq was and is
witnessing in early 2011 the growing pains of a new a good thing – and I certainly fall into this camp – then it
Arab political order, one that would likely not have is really quite unfair to blame the precipitator of regime
been possible without substantive change in Iraq over change for the Sunni-Shiite strife. The long-accepted
the past decade. While the peoples of Tunisia, Egypt, Iraqi political order itself, with all of its grotesque lack of
and Libya theoretically could have thrown out their humanism and compassion, was largely the root cause
respective autocrats without the removal of Saddam, his of the violence – not President Bush.
ouster and the subsequent birth pangs of democracy in
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Global Security

Now, moving along away from Iraq and toward the


political and economic decisions that President Bush
got very wrong, we find ourselves delving into the oft-
misunderstood world of domestic fiscal and financial
policy. When he came to office in early 2001, President
Bush presided over a relatively robust economy and a
government that inherited a budget surplus from the
late Clinton era. By the time President Bush left office,
the United States was in the midst of a terrible financial
recession, with large swathes of its population left
unemployed, underwater, or otherwise destitute. How
did this happen?

While there were many causes and drivers of the


Great Recession and its accompanying fiscal crisis,
President Bush and his economic team certainly did
their part to undo regulatory safeguards, encourage
irresponsible lending, and pass along massive fiscal
obligations onto the next generation of voters. On the
latter point, this nation has had a “debt crisis” for a long
time now. Despite the political rhetoric in Washington
today blaming everything from our nation’s money
woes to purported American “decline” on President It is also increasingly unclear whether this moneyed elite
Obama, the truth of the matter is that America has had has actually created enough economic productivity in
a spending problem long before 2008, and indeed long America to justify the alarming levels of systemic risk
before 2001. Instead of paying down the nation’s debt they have produced, as increasing leverage ratios and
when he came to power, however, President Bush massive counterparty risk inherent in many of today’s
enacted a series of tax cuts while engaging in massive new financial products have helped to undermine the
unfunded spending binges, including a Medicare Part very stability necessary for a well-run and international-
D prescription drugs benefit and both the Afghan and ly-regarded financial system.
Iraq wars. While one can certainly make a strong
case for any of these spending priorities a responsible Of course, there are many hours that can be spent
politician would have asked his nation to pay for these debating the pros and cons of each of the myriad
expenditures, rather than pass the buck along to the political and economic policies and prescriptions from
next generation. Indeed, President Obama has found the Bush era on up through today, but it would appear
himself in the unlucky position of having inherited the that the presidency of President Bush has been mis-
backend of many of these spending binges, while at characterized by many pundits all along the political
the same time having less of the fiscal resources to spectrum. Indeed, President Bush’s unflinching goal of
pay for them. removing Saddam Hussein from power in Iraq has likely
helped precipitate a genuine Arab political rebirth in the
In addition to fiscal irresponsibility, President Bush Middle East, both in Iraq and in neighboring countries.
also did his part – along with numerous Presidents His economic policies, on the other hand, are in large
before him – to undo much of the regulatory regime part to blame for both the financial and fiscal messes we
that kept banks and financial institutions from behaving find ourselves in today. We do the nation, and ultimately
recklessly with other people’s money. Lost in today’s ourselves, a great disservice by blaming President Bush
heated partisan battles over appropriate solutions to for the wrong ills, while irresponsibly absolving him of his
our nation’s very real long-term fiscal problems is the own very real political sins.
admission of responsibility for allowing financial entities
to take massive risks– and thereby garner massive gains Rami Turayhi, is an Iraqi-American graduate
– mostly at the expense of the American taxpayer and of Columbia Law School in New York and a Senior
mutual and pension fund holders. This past decade has Contributor at The Diplomatic Courier magazine in
seen a massive transfer of wealth from many hard-work- Washington, DC.
ing, ordinary Americans to an aristocratic financial elite.
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Bringing Change to Developing Countries’
Modus Operandi: Optimizing Government Operations
Through Capacity Building
By Philip H. de Leon, President, Trade Connections International, LLC

Undoubtedly industrialized countries and internation- - Designing a Clearly Identified Point of Contact
al organizations have played a critical role in helping draft Who’s in charge? That question should be answered
policies for developing countries to help them rise out of with a named individual that can be traced down rather
poverty and strive towards political stability, economic than with the name of an office, or department no one
development and prosperity. Many components of ever seems to know what is going on. That point of
these policies are proven concepts such as good contact should be made known to all parties as well as
governance, ethics, accountability, transparency, etc. an identified back-up. An entire program should not be
However, these policies are rarely directly coupled with allowed to go amiss simply because the front person is
a capacity building work plan to enable governments, not around, temporarily or permanently.
state institutions and their civil servants to carry out
those policies consistently throughout the administra- - Elaborating Statements of Work
tive food-chain and over an extended period of time that Once a person is in change, he needs to know what
can resist leadership changes at any level. Considerable he is supposed to do. This requires the elaboration of a
amounts of time, money and efforts end up yielding little statement of work that defines what is expected of that
or sporadic results, raising doubt on the ability of these person, sets measurable milestones to be met, and also
countries to benefit from any type of assistance. Such a gives some background information as that person may
conclusion is unfair. Yes, there are intrinsic factors that not have enough perspective to put things into context.
can derail the best-intended projects such as corruption, For instance, explaining that certain tasks have to be
nepotism, or simply resistance to change due to vested carried out before date X because a review board will
interests and as change can bring to light question- use the results of those tasks to identify the next steps
able actions or lack thereof. However, there are many to be taken may sound obvious but we should never
committed civil servants whom, if properly instructed, assume that what is obvious to us is to all.
would want to carry their mission in a professional way.
The eagerness of many of these officials to learn and to - Providing Proper Training
successfully implement policies that can improve food Beyond the basic fact that someone who is going
security, education or health conditions should not be to work on something needs training, we also have to
underestimated. keep in mind that it is hard for anyone to implement
alien concepts if one has never been exposed to these
A Capacity Building Strategy concepts. Meeting deadlines for instance may be a given
Is Often the Missing Link but many countries have a rather liberal approach to time
that can be detrimental. The mentality of “something will
Assistance policies and programs abound, carried happen God willing” should be converted into “the right
out by governments, international and non-profit or- thing will happen if you take a proactive approach so
ganizations, consultants and experts tasked to share act now.”
their professional experience. Many are well crafted and
can generate good results but they are not optimized, - Encouraging the Sharing of Information
and often fail short of their intended objectives. There One of the most debilitating aspects of working
is often a disconnect where the wheel hits the road. with developing countries is the compartmentalization
How can anyone expect an often underpaid and under- of information and the lack of culture of sharing it. This
qualified local staff to feel truly committed? Furthermore, results in the absence of institutional memory and every
the sanctions one may incur when showing too much time a person holding to some sort of knowledge leaves
initiative in top-down societies is a deterrent for the most his position, everything comes to a stop and the wheel
well-intentioned and motivated civil servant from sticking needs to be reinvented over and over. The sharing of
his neck out. information and an open dialogue should be encouraged
through regular staff meetings and barriers (hierarchic,
So instead of lamenting over failures of the system, ethnic, gender-based, etc.) should be broken down to
let’s identify some simple and concrete capacity building allow an exchange of information and an open dialogue
measures that could be adopted, either on their own or that transcend local customs.
preferably incorporated in these policies and programs.
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- Supporting Initiative be based on a system of rewards and guarantees of
future continued assistance. After all, with limited
The concepts of “everyone at his place” and “speak resources and many needs, it makes sense to condition
when asked to” should also be shaken down to allow assistance to a shared commitment to achieve success.
initiative and accompanying action. Failing this, pro- Capacity building should be an integral and indissociable
crastination and indecisiveness settle in and motivation component of the implemented policies and programs.
falters. At the same time initiative should be protected
and not arbitrarily sanctioned. If one can take initiative We also have to recognize our responsibility when
and be rewarded accordingly, this greatly supports there is a lack of results: our inability or reluctance to
accountability and transparency over what is being work on the ungratifying work of monitoring, implement-
implemented. A recognition system should be instituted ing, and enforcing regular follow-ups defeats our best
with rewards, which does not solely have to be money. intentions. In the end, the greatest ideas lead nowhere
A medal, a framed certificate given during a ceremony, if no one is there to properly
or extra vacation days can be considered. carry them out.

What to Do Next? Money Is the Sinews of War Philip H. de Leon


is president of Trade
The assistance road is paved with good intentions Connections International,
but let’s be practical and look at human nature: unless LLC, a Washington, DC
there is a system of carrot and stick, goodwill is not based international business
sufficient over time to implement changing policies, consultancy. Mr. de Leon
even more so as it may take years before their spent 10 years at the U.S.
beneficial effects become obvious. The stick approach Department of Commerce
with developing countries should not necessarily be promoting exports to and
patronizing, stringent and coercive: rather it should investments in Eurasia.
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Getting On the Highway to IP Harmony
Ambassador James P. Cain and Kenneth S. Chang, Partners Kilpatrick & Stockton LLP

As the global economy continues to struggle, the


world increasingly seeks more efficient mechanisms to
facilitate recovery. A key to that recovery is the harmo-
nization of the global patent laws.

For over a century, nations have attempted to


harmonize their patent systems. The last 20 years
witnessed a slew of treaties adopted with the intention
of harmonization, with each falling short of its intended
goal of real consistency in patent laws across nations.

For example, the Agreement on Trade Related


Aspects of Intellectual Property (TRIPS) laid down
specific, substantive principles regarding intellectual
property rights. And indeed, these principles applied own country. Multinational corporations, the top 500
to all who belonged to the World Trade Organiza- of which control the majority of worldwide trade, simply
tion (WTO). Yet, agreements such as TRIPS form an cannot efficiently function in a sea of inconsistency
incomplete patchwork of principles, not acts, and only regarding the acquisition and enforcement of patent
highlight the inability of nations to agree on important rights. The current fragmentation means companies
patent-related issues such as patentable subject matter, make fewer and less substantial investments in
access to essential medicines, compulsory licenses, innovation. Inconsistent outcomes in multi-jurisdictional
and foreign filing requirements, to name just a few. patent disputes erect barriers to trade and complicate
global marketing efforts.
The differences between nations is understand-
able. The diversity of patent laws can be attributed to The majority of the international patent community
the territorial nature of patent doctrine. As exclusion- continues to be supportive of harmonization. As
ary rights, application of patent laws are limited to the previously stated, several treaties such as the Paris
legal rules of the jurisdiction in which they are granted. Convention for the Protection of Industrial Property
As such, countries develop their own sense of proper (Paris Convention), the Patent Cooperation Treaty
incentives for invention and what assets they wish to (PCT), the Patent Law Treaty (PLT), and the Trade-Re-
protect, consistent with each country’s culture and lated Aspects of Intellectual Property Rights (TRIPS) all
societal goals. serve to lay a framework for harmonization, but none
accomplish the goal. The international community can
While countries such as the United Kingdom and take a cue, however, from one bright spot of harmoniza-
the United States historically have fostered individual tion: the Patent Prosecution Highway (“PPH”).
reward for invention, and have characterized patent
rights as individual “property,” other cultures such as The PPH is a collaborative effort between par-
those in Asia emphasize commonality. For centuries ticipating patent offices to speed multi-office patent
the Chinese believed that society owned inventions and prosecution. In essence, when the PPH requirements
creative works. The concept of intellectual property as are fulfilled, the work performed by a first patent office
individual property rights is new, and thus many Asian can be used to accelerate examination of a patent
countries’ patent systems remain either underdeveloped application in a second patent office. In so doing,
or have weak enforcement provisions. Understandably, one patent office may defer to the findings and avoid
the populace of these countries is reluctant to embrace repeating the work of another patent. What started as
strong patent rights, particularly when developed a pilot project in 2006 between the United States and
Western countries cannot agree on a unified set of Japanese Patent Offices has expanded to cooperation
patent law principles. between 16 countries (six of which are members of the
G8) and the European Patent Office. By most accounts,
To ensure a sustainable global economic recovery, the PPH has breathed new life into the sails of innovators,
we need a strong push towards real, substantial harmo- enabling faster and less costly global patent protection,
nization of patent laws. In a global economy, all aspects and has helped reduce the backlog of applications in the
of business extend beyond the territorial limits of one’s various patent offices around the world.

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Global Economic Recovery

At the upcoming 2011 business summit, the G8 can


take the success gleaned from the Patent Prosecution
Highway to another level by committing to harmoniza-
tion of patent laws and practice in three areas. First, the
G8 should commit all of its members to the PPH and
formalize the various PPH pilot programs currently in
place. In so doing, remaining nations likewise will adopt
PPH programs to realize the advantages of the system
and avoid being left behind.

Second, the G8 should reach agreement on


the patentability of software, allowing patenting of
such inventions in compliance with Article 27 of the
TRIPS Agreement. Harmonizing this area of the law
will encourage additional innovation of computer
technology and applications across a multitude of
industries throughout Europe and Asia, and increase
foreign investment in these geographies.

Finally, the G8 should confront the conflict between


the “first-to-file” rule awarding priority of invention to the
patentee who first filed their patent, and the “first-to-
invent” rule. The U.S. follows the latter rule, with much
of the rest of the world following the former. Complete
harmonization cannot be achieved without common
ground between these conflicting practices.

With these three steps, the G8 and others with


substantial interests in intellectual property rights
can begin the journey down a path to consistent and
economical acquisition of patent rights. Such harmo-
nization will assist in the integration of these rights, and
associated obligations, into developing nations’ juris-
prudence and economic policy. Moreover, harmoniza-
tion would allow all of us to hear the music of sustainable
global economic recovery much sooner.

James P. Cain served as U.S. Ambassador to


Denmark from 2005 to 2009. Through Kilpatrick &
Stockton and Cain Global Partners, LLC he now
provides legal and strategic advice for international firms
seeking U.S. expansion and U.S. firms broadening their
international operations.

Kenneth S. Chang, Partner, Kilpatrick & Stockton,


focuses his practice on intellectual property litigation
and counseling. Mr. Chang was named one of Denver’s
“40 Under 40” by the Denver Business Journal, and a
2011 Super Lawyer by SuperLawyers magazine.

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Meeting Promises:
A Call for Moving Forward at the G8 Summit
Monique Perry Danziger, Communications Director, Global Financial Integrity

When G8 meets this month the upheaval in the Middle East and North Africa resulted in
agenda will reflect a shift in global broad speculation as to where the illicit wealth of heads
issues since the last G20 meeting of state Ben Ali (Tunisia), Mubarak (Egypt), and Ghaddafi
in Seoul. At what promises to be (Libya) was hiding. The freezing of $30 billion of Libyan
an emotional and diverse meeting, assets in the US raised eyebrows and “brought the issue
it will be vital that the G8 retain its home” for many Americans.
momentum on reforming global
finance. Increasing transparency Recent analysis by Global Financial Integrity (GFI)
and accountability in financial measured significant illicit financial outflows from Tunisia,
practices is a key part of efforts Egypt, and Libya which led to increased income inequality
to foster economic recovery and and helped foment the political upheaval now reshaping
create a world economy more the Middle East and North Africa regions. Egypt, for
robust and resilient against volatility example, lost $57.2 billion in total from 2000 to 2008
and decline. while Algeria lost $25.7 billion over the same time. These
outflows of illicit money helped sustain corrupt dictator-
Progress to date on achieving greater transparency ships and choke off gains in quality of living standards
and accountability in financial practices and financial in- despite strong economic growth.
stitutions has been uneven.
The problem is systemic, requiring comprehensive
In what was seen as a setback, the long-awaited solutions. The G20 pledged to tackle tax havens and
Guidance to the Bribery Act published by the UK Ministry foster greater communication and cooperation between
of Justice released in early April significantly eased member countries on financial matters. Restoring the
previously strong standards of corporate liability as set UK Bribery Act to its original form, moving on key pieces
out in the original UK anti-Bribery Act. Watchdog groups of U.S. legislation like the Incorporation Transparency
decried the watered-down guidelines a concession Act, and getting the OECD to revamp its tax information
to the UKL business lobby and called on the Obama exchange agreements would be a solid start.
Administration and the OECD, to press for a more
acceptable standard of enforcement from the UK. In an increasingly globalized world, where the
markets and economies and fates of nations are increas-
Measures to open the extractive industries to greater ingly interlinked, implementing measures to prevent the
visibility, on the other hand, represented a major gain cross-border flow of illicit capital is a necessity. The
for proponents of transparency. Section 1504 of the massive annual loss of assets from developing countries
Dodd-Frank Wall Street Reform Act One would require sets back poverty alleviation efforts and forestalls
extractive resource issuers to disclose payments made attempts to reach sustainable economic growth in poor
to governments. This requirement, which was inserted countries and stands in the way of achieving a stable,
into the legislation during conference negotiations, prosperous global economy.
is based upon earlier proposals by Senator Richard
Lugar, Senator Benjamin Cardin, and others seeking to The G20 has established a strong intent to tackle
mandate disclosures by extractive industry participants the shadow financial system. The world of late has been
which are currently voluntary under initiatives such as a chaotic and uncertain place. Moving ahead with plans
the Extractive Industry Transparency Initiative. to implement measures set forth in the G20’s Economic
Development and Anti-Corruption plans represent a
The shadow financial system lays at the heart solid and dependable route towards greater global
of much of the economic and political turmoil that stability and economic prosperity.
has dominated headlines and no doubt will feature
prominently in the discussions at the G8 and G20 this Monique Danziger is the communications
year. Money is the lifeblood of most global ills: corruption, director for Global Financial Integrity, an organization
despotism, terrorism, crime, and human rights violations. which promotes national and multilateral policies and
agreements aimed at curtailing the cross-border flow of
Recent events have also thrust illicit finance and illegal money.
tax havens into the spotlight, once again. The political
G8
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66
The Digital Divide: Reinventing Rural Community
Experience through Internet Access
By Tisah M. Quarnberg, Jonathan A. Muir, Brady Alex Currit and Ralph B. Brown, Brigham Young University

A significant portion of the world’s populations (49.4 and community satisfaction and attachment. Internet
percent, according to the United Nations Population access also constitutes an emerging tool for community
Division) still reside in rural areas. Accordingly, it is growth and sustainability through increasing access to
important for political leaders, city planners and social information.
scientists to examine the changing dynamics of such
locations. This becomes particularly relevant in light of In an information-based world, information is central
social changes to modern society which increasingly to communication, attainment, commerce, growth and
requires a new breed of highly mobile individuals as well success. Access to and use of the Internet, therefore,
as the rapid advancement of new distance-demolishing is critical to survival in the information age. This access
communication technologies, such as Internet services. is not limited to individuals; community access to and
use of the Internet is also an ‘empowering tool’ that
High-speed Internet service has successfully not only positively affects communities and community
emerged as a necessary market tool for networking, outcomes, but also connects people, goods and services
communication and business transactions as well as within communities and between communities. Thus,
increasing social interaction and recreation. However, the Internet constitutes a revolutionizing technology
the Internet is not only an individual necessity, but it in increasing social integration regardless of relative
also has immense power in influencing basic elements geographic isolation. However, when individuals and
of community experience. Rural communities with communities are not connected to the Internet, they
access to the Internet, as compared to other rural may feel the effects of social isolation and ‘perceived
communities which currently lack Internet access, have non-existence’ across a digital divide.
higher levels of community participation, social capital
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Global Development

The digital divide— or the best distribute such technology


critical gap in society between over social strata.
those who do and those who do
not have access to the Internet— Bridging the digital divide
has serious implications for isolating individuals and
community development. communities from the Internet
These gaps arise as members of society have increas- constitutes a new challenge for urban and rural planners,
ingly divided levels of access to the information available government officials and political leaders. Answering
only on the Internet—information that researchers have this challenge is critical for rural communities who are
deemed critical to the growth of a community and its already vulnerable due to their geographic isolation.
people. These gaps usually tend to widen along socio- In an age where access to the Internet symbolizes a
economic lines such as between the rich and poor and significant step forward in terms of improving quality
suburban and inner city residents. of life, enhancing individual and collective freedom
and creating more sustainable communities, rural
While Internet service and adoption is almost communities can’t afford to be left behind.
ubiquitous in more urbanized areas, access to Internet
service is unpredictable in rural areas. Urban areas Tisah M. Quarnberg is a graduate candidate in
have had the utility of broadband Internet use for some Sociology at Brigham Young University (BYU). Her areas
time while many rural communities continue to have of study include survey research, community and rural
no service or limited Internet service. Further, there is development. Prior to entering the Master of Sociology
unequal distribution of Internet access among rural program at BYU, Tisah completed a bachelor degree in
residents within a given rural community. Individuals Sociology.
with greater education, income and higher social status
are the ones that typically have greater access to the Jonathan A. Muir is a graduate candidate in
Internet. This serves to further broaden an already broad Sociology at Brigham Young University. His areas
gulf between the rich and the poor throughout the world. of study include social change, social stratification,
community and rural development. He maintains a
However, this gulf is not a purely economic issue specialization in research pertaining to Southeast Asia.
as non-access has been shown to create serious Prior to entering the Master of Sociology program at
social issues such as social isolation and perceived BYU, Jonathan completed bachelor degrees in Asian
non-existence of individuals. This happens because Studies and Sociology while minoring in International
community access to new information mediums enables Development.
community members to learn about and access the
resources available inside (with community information, Brady Alex Currit is a graduate student in Sociology
announcements, invitations, forums and commerce at Brigham Young University. His areas of study include
more and more often taking place on the Internet) and community development, rural communities, social
outside the community. Thus not having access to the change, gender, applied research methods and social
Internet not only limits an individual’s connection to capital. Prior to entering the Master of Sociology
the outside world, but also their access to resources program at BYU, Brady completed bachelor degrees
within their local community. Studies such as “Falling Sociology while minoring in International Development.
Through the Net” (published by the National Telecom-
munications and Information Administration division of Ralph B. Brown is a Professor of Sociology and
the U.S. Department of Commerce) capture this idea Director of the International Development Minor at
that those who do not use the Internet are left behind in Brigham Young University. He is also the Executive Director
a world that is advancing incredibly fast. Furthermore, it and Treasurer of the Rural Sociological Society. His Ph.D.
could be argued that rural communities in some ways (1992) is in Rural Sociology from The University of Mis-
are already “forgotten” and isolated, and therefore the souri-Columbia. His research has centered on community
lack of Internet or other high-speed telecommunications satisfaction and attachment in rural communities and on
technology serves to increase the danger of perceived social change and rural development both in the U.S.
non-existence that much more. With these dangers in and Southeast Asia.
mind, policy makers must increasingly consider how to
G8
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69
Advertisement

Neil Garner, Founder and CEO of customer experiences for retailers. But it’s not just commercial ap-
Proxama explains how the use Security and convenience are plications that will benefit from NFC.
of near field communications high on the agenda too. Take travel This vision is that governments
(NFC) is about to revolutionise for instance. Because commut- – national and local – and other
the use of mobile phones ers won’t need to fish out cash or public bodies can reap the rewards
a card from a wallet or bag, in the of creating more relevant, impactful
Much has been written and dis- hustle and bustle of train and bus and longer-lasting communications.
cussed about the global unification stations, they will be less vulnerable
that technology offers us. Without to theft or loss. Instead, they’ll just For instance, in developing
a doubt the web has facilitated a tap’n’pay for tickets or fares need- economies where mobile usage is
greater democratisation of com- ing only to hold their mobile. And the primary channel of communi-
munications in recent years through this scenario might only be months cations, NFC applications can be
social media applications such as away from becoming reality as used to provide vital information
Facebook and Twitter but the next Proxama’s ‘mobile wallet’ – which on health issues to the popula-
major milestone in the evolution of is compatible with major contact- tion quickly and cost effectively by
technology is going to be focused less payment systems - is currently enabling them to tap’n’load con-
on the mobile phone. being road tested for a potential tent onto their phone and then to
introduction as a payment option on tap‘n’share with family and friends.
This Spring will witness the the Johannesburg public transport
first generation of smart phones network. There is huge potential us-
that will be enabled with near field age for NFC mobiles to be used
communications (NFC) technology. So, let’s turn now to the other by government and emergency
NFC enables the transfer of media- significant opportunity that NFC- services for disseminating informa-
rich content through short-range enabled mobile phones offer. Not tion in situations such as the recent
wireless signals between a mobile only is NFC going to breathe new earthquakes and tsunami in Japan,
phone and an NFC-enabled source. life into more traditional media such educating people about life-threat-
as posters and bus shelter ads but ening issues such as malaria or
The two main NFC applications it has great potential as a commu- AIDs or even raising awareness of
- contactless payments and instant nications medium for Governments upcoming elections.
brand experiences - will revolution- and public bodies.
ise the way consumers use mobile One very valuable execution
phones. NFC capability presents a Much like with m-payments, NFC offers the pharmaceutical in-
whole new world of opportunities mobile users will be able to tap their dustry is the validation of drugs and
for commercial and not-for-profit phones onto postage stamp sized medication. Individuals will be able
organisations. tags that are embedded in posters, to check details like the source,
product packaging or point-of- ingredients, suitability, dosage and
Contactless mobile payments – or sale displays. High quality, media- expiry dates by simply tapping their
m-payments – are much like the pay- rich content will then be instantly mobile on the packaging’s tag, thus
ments you can make currently with con- downloaded to their phone without preventing wrong usage or exces-
tactless credit and debit cards, except requiring 3G access or a URL link. sive dosage.
they are made by tapping a mobile Typically this tap‘n’load transaction
phone on a payment terminal. This could be a coupon or voucher that There is also the potential to
money transfer is made possible by a the user can then redeem immedi- save significant sums of money and
‘mobile wallet’ – a software application ately in-store. Or, it could be a pro- lessen the impact on the environ-
- that we at Proxama have designed motional extra such as a pop video ment by not having to print leaf-
and will be an integrated feature on new that will grow a brand’s relationship lets. And of course there’s greater
smart phones. Users simply pre-load with a customer. And, the beauty of longevity - whereas leaflets have a
the ‘mobile wallet’ with money via an NFC is that the downloads can then limited shelf-life, information con-
online transfer from their bank account be passed on easily to other NFC tained on a mobile phone will re-
and can then make tap’n’pay transac- mobile users - simply tap‘n’share. main usable until the user chooses
tions. The benefits for both customers to delete it.
and retailers are many. The key to this is the Proxama-
built NFC application that is loaded NFC is undoubtedly going to
m-payments should be consid- onto the phone at source and the have a seismic impact on the way
erably quicker than Chip&Pin and data embedded in the tag that is the world communicates over the
cash transactions which means less supplied by Proxama along with the next few years. We’ll wonder what
time queuing for consumers and tools to enable organisations to cre- we ever did with out it.
G8 greater through traffic and improved ate their content.
Summit 2011

70
Humanitarian Organizations and the Economic
Downfall –
Policy Implications and What the Future Holds
By Andrew Reeve, Hinckley Scholar, Hinckley Institute of Politics

The last few years have been an economic roller- For humanitarian organizations to sustain their
coaster. With the boom and crash of economies all over programs that better society during a global economic
the world, there have been major side affects in almost downturn, they need to create their own ‘survival kits’
every region and market. Philanthropy has suffered as that give them the ability to weather economic storms in
a result of a variety of factors, including the financial order to continue the development of the communities
squeeze of big and small business and tight economic in the world that need the most help. One solution that
situations many individuals find themselves in today. helps change the way these programs function would be
As a result, the organizations that carry out humani- to decrease the funds to programs that are not working,
tarian work in the world have found themselves facing allowing for reform within the system.
problems such as lack of funding, how to handle the
global recession and how to continue their work for Another way these organizations could sustain their
humanity in the most effective manner. development in the world would be to create reserve
G8
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Global Development

funds that allow them to sustain their most successful welfare of those individuals in society that are in the
programs. This would allow these organizations to most need of help. If the welfare of society is not kept
examine the program outcomes while fighting the global at a sustainable level the world may go into another era
problem and look at programs that may have deviated of turmoil where ideals, not markets, would once again
from the original reasons for which they were created. become the key factor at which governments look.
We can see this issue facing the American Red Cross
and possibly the Red Cross organizations around the An article in The Journal of the Operational
world, especially as we see the continuation of natural Research Society entitled “Humanitarian Aid Logistics:
disasters such as the recent tsunami and earthquakes Supply Chain Management in High Gear,” argues that
in Japan and the devastation that ensued due to an logistics are key in order to create sustainability. The
earthquake in Haiti. article notes that many humanitarian organizations
leave the “definition of logistics open to loose interpre-
This presents us with a formula for calculating the tation” but they generally define it as “the process of
way things should work in the humanitarian realm. planning, implementing and controlling the efficient,
When a recession hits, funding decreases, leading to cost-effective flow of storage of goods and materials as
a decrease in the revenue of these organizations. This well as related information, from point of origin to point
means either expenses need to decrease or the organi- of consumption for the purpose of meeting the end ben-
zations can use funds that are on reserve—a prepared eficiary’s requirements.” This is another key aspect that
pre-packaged financial kit. Next, these organizations needs to be examined in these organizations’ financial
need to sustain the programs and welfare of the global ‘survival kits’ so they can sustain their growth into the
community while weathering the economic storm. This future. Being able to receive funds, create the goods
will allow them to rethink and reform the inner-work- and services needed to combat problems in the global
ings of the goods and services they are providing, and community and then in turn use them to fulfill the re-
also allow them to logically prepare for the next growth quirements and goals of these organizations, like the
cycle in the global economy. The key to the equation is Millennium Development Goals of the United Nations,
never to allow the successful will allow these organizations
programs to cease. to grow and fight disasters
into the future.
Although humanitar-
ian organizations may have As we continue on our
suffered due to the recent economic rollercoaster, hu-
housing bubble that had manitarian organizations must
crippling affects on the global stay focused on logistics,
economy, there is still hope sustainability and efficiency.
for these organizations to We will be able to watch the
carry out work in the future to world grow in a peaceful
fight the world’s humanitar- manner in which the global
ian problems. These organi- community, like a child, grows
zations can create their own in to a developed world where
‘survival kit’ and diversify all can enjoy the benefits of
the way they receive funding; rather than accepting economic efficiency and success.
money from donors, governments or revenue building,
they will be able to continue their work in bettering the Andrew Reeve graduated from the University
world. Humanitarian organizations need to approach of Utah in Political Science, Economics and Interna-
their spending and the way they receive their funds in tional Studies. He served Hinckley Institute of Politics
a more diversified manner in order to face upcoming internships, in Washington, D.C., with the Center for
challenges, including the booms and busts that always American Progress and in Riobamba, Ecuador, with
occur in today’s economic climate. There are many Ascend Humanitarian Alliance.
ways in which this ‘survival kit’ can be created. The
best way would be to create an inner financial structure
where these organizations would be able to sustain the
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73
The Global Economics of Obesity
By Lisa Gable, Executive Director, Healthy Weight Commitment Foundation

Obesity is a problem without borders. It is capturing That’s the equivalent of an ongoing recession. But unlike
the attention of the world, especially as more and more a recession, the economic cost of obesity just keeps
children suffer from it. Last year, childhood obesity was going and growing. The economic consequences of
the subject of a panel I participated on in Toronto, held obesity show up every day in offices, factories and other
in concert with the G8 meeting nearby. workplaces. Over the course of a year in the United
States, obesity-related disorders are responsible for
Around the world, people share similar concerns, nearly 40 million lost workdays, 239 million restricted
such as their families’ health and their children’s future. activity days, and 63 million doctor visits by employees.
Obesity threatens both. It is a problem in which the U.S.
seems to be taking a dubious lead, but other countries And while the economic costs of obesity are high,
are not far behind. According to the U.S. Centers for so are the potential economic benefits of addressing
Disease Control, about 70 percent of Americans are it. In fact, improving the health of employees is one of
overweight. About half of them are obese. Globally, the best investments a company can make. A meta-
the World Health Organization projects that in 5 years analysis of studies in Health Affairs found that for every
about 1.6 billion adults will be overweight, and about dollar companies spend on employee wellness, medical
400 million will be obese. costs fall an average of $3.27. That is the balance sheet
of obesityClearly, obesity poses a major health, social
Countries in which the problem of obesity is only and economic challenge. We can address it only if we
beginning to emerge should consider the impact it is understand it: what causes it and what we must do to
having in the United States. About 1 in 3 kids are obese solve it.
or considered “at risk”, and other industrialized countries
are not far behind. But too often, the facts become overwhelmed by
misconceptions, including a failure to fully recognize its
The impact of obesity on our physical health is two-sided character. Yes, obesity is largely about how we
bad enough. But it also undermines our fiscal health. eat, and how many calories we consume. But it is also a
Americans, for example, spend 1 percent of our consequence of how we live, and how many calories we
economy every year treating obesity-related ailments. expend – or fail to expend – through physical activity.
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74
Global Health

marks on aerobic fitness and body-mass index tended


to have higher scores in reading and mathematics,
regardless of gender or socioeconomic differences. A
study in the southern U.S. state of Georgia found that
after 14 weeks students who spent 40 minutes a day in
organized physical activity demonstrated academic and
cognitive gains that were twice as large as those who
spent only 20 minutes a day. It’s no wonder that Harvard
psychologist Dr. John Ratey has described exercise as
“Miracle Gro for the brain.”

The benefits of energy balance are clear. To reap


them, we have to take in fewer calories, and expend
more through physical activity. We must transform
our sedentary culture into a culture of fitness and
physical action.

It sounds like a simple formula. But we can’t be


simplistic in how we pursue it. We can’t nag people into
living or eating healthier. No one likes being told what
to eat. That is why the Healthy Weight Commitment
Foundation – a unique coalition of more than 150
retailers, food and beverage manufacturers, sporting
goods and insurance companies, trade associations,
NGOs and professional sports associations – is pursuing
an agenda based on balance and moderation. We
believe that the only effective approach is to promote
As the World Health Organization puts it: “The solutions that make it easier for people to make healthy
fundamental cause of obesity and overweight is an choices, to manage “calories-in with calories-out.”
energy imbalance between calories consumed on one
hand, and calories expended on the other hand.” Along Food manufacturers are making that easier for
with a global shift in diet, the WHO has cited “a trend consumers through such measures as reducing portion
towards decreased physical activity due to the increas- sizes of existing single-serve products, developing
ingly sedentary nature of many forms of work, changing lower-calorie options, or reformulating recipes. A study
modes of transportation, and increasing urbanization.” conducted by the Center for Human Nutrition found that
portion-controlled packaging may increase awareness
Our increasingly sedentary lifestyle seems to start of portion size, leading to reduced consumption.
in childhood. In addition to the lure that video games,
computers and videos have for children, parents But at the same time, it is important that all stake-
concerned about their children’s safety increasingly holders work to encourage people to increase physical
keep them from parks, playgrounds and sports fields. activity, while decreasing the calories they consume.
And many municipalities and school districts are unable The problem will be solved only if we deal with both
to afford an adequate parks and recreation budget. In sides of that coin.
the United States, less than four percent of elementary
schools, less than eight percent of middle schools, and Lisa Gable is Executive Director of the Healthy
just over two percent of high schools provide physical Weight Commitment Foundation and a Senior Advisory
education or its equivalent for the entire school year. Board member of The Diplomatic Courier magazine.
Prior to her work with the Foundation, Gable held
The reduced access to physical education in personal rank of ambassador when she represented the
schools is a double threat. Healthy physical activity is United States at the 2005 World EXPO in Aichi, Japan.
important for both the body and the mind. For example, At 30, she served as an advisor to the Secretary of
a 2007 Journal of Sports and Exercise study in the Defense holding the protocol status of a 3 star general.
U.S. state of Illinois found that children who got good
G8
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75
G8 Should Deliver on Aid Pledges
to Sub-Saharan Africa
Department of Economic and Social Affairs, and Rudi von Arnim, Assistant Professor of Economics at the University of Utah and Hinckley
Scholar, Hinckley Institute of Politics

In 2005 at the Gleneagles Hotel in Scotland, leaders Meanwhile, growth in sub-Saharan Africa has picked
of G8 countries made commitments to debt relief and up, mainly due to increased world demand for minerals
increased aid to the poorest countries, especially in and other natural resources. The acceleration of growth
sub-Saharan Africa. The G8 countries had committed rates of gross domestic product (GDP) in sub-Saharan
to the Millennium Declaration in 2000. It was clear that a Africa during the past decade has fueled hopes that the
concerted effort was needed to achieve the Millennium continent will finally begin to catch up after a lost quarter
Development Goals (MDGs) by 2015. Progress, century. The acceleration of growth is real, but needs to
however, has been slow. G8 aid to Africa falls well short be put in perspective. (Together with Oliver Schwank,
of promised levels, and falls even below contributions we discuss these issues in detail in Working Paper No.
from the Nordic countries. 102 of the United Nations’ Department of Social and
Economic Affairs. In this brief essay, sub-Saharan Africa
excludes South Africa unless otherwise noted.)

First, sub-Saharan African annual per capita real GDP


growth averaged a respectable 2 percent in the 1960s,
but slowed down during the 1970s. Between 1980 and
1999, real per capita income for sub-Saharan countries
shrank by about three quarters of a percentage point
annually. From 2000 to 2008, growth was again faster
at 2.4 percent per year. Sub-Saharan Africa has been
second only to East Asia in recovering from the global
crisis, but a lot of ground still needs to be made up.

Second, growth during the last decade was largely


driven by a worldwide boom in minerals and further
discoveries of mineral deposits in the continent. The share
of primary commodities in total exports reached almost
90 percent in the past decade, up from 86 percent in the
previous decade. Economic performance often closely
follows the vagaries of the global commodity price cycle.
High commodity prices might be here to stay—due to
a combination of high demand from emerging market
economies, ‘peak oil’ and political events in oil-export-
ing countries—but such bubbles always end. Further,
natural resource extraction does not have the same
potential as manufacturing to impact development.

In fact, no country in the world has successfully


developed without experiencing a substantial increase
in the share of manufacturing in GDP. On this score,
sub-Saharan Africa does not do well. The share of
manufacturing in GDP for the region is 8 percent, and
has fallen to that level from a high of 12 percent in the
1980s. The manufacturing share for all developing
countries averaged 23 percent in the past decade, with
27 percent in developing Asia. Premature trade liberal-
ization has further damaged already limited manufac-
turing and related export capacities. The region’s share
of world merchandise exports fell from 5 percent in the
1950s to 1.8 percent during 2000-08; its share of world
G8
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76
manufactured exports stands at a paltry one-fifth of one
percentage point.

With deindustrialization came a retreat of


government—even though government must facilitate
private sector economic activity by enforcing the rule
of law, providing political stability and financing public
infrastructure, services and education. Since many
transactions in developing countries are informal and
hence untaxed, poor developing country governments
have traditionally relied on tariffs to raise revenue. Trade
liberalization has reduced the ability to do so, without in natural resource extraction activities has limited its
providing alternate sources of financing. (A good chunk poverty reducing impact. According to World Bank
of government revenues in the region are, in fact, estimates, the share of sub-Saharan African population
taxes on natural resource extraction and exports.) As living in extreme poverty stood at 50 percent in 1980,
a consequence, the share of government spending in and rose to a peak of 58 percent in 1998 before falling
GDP has fallen from about 16 percent during 1980-99 back to 50 percent in 2005. Certainly, this is a welcome
to an average of 13 percent during 2000-08. development, but not enough. G8 member countries
should lead the international community, especially the
Unfortunately, private investment has not picked up OECD economies, to fulfill their decades old pledges of
the slack. The share of investment in GDP in sub-Saharan aid to Africa.
Africa has steadily fallen during past decades, to only
17 percent now. Many years ago, Nobel Laureate Jomo Kwame Sundaram (jomo@un.org) Jomo K.
Arthur Lewis suggested that the principal problem of S. has been Assistant Secretary General for Economic
development is to transform an economy that saves Development in the United Nations’ Department of
only a few percent to one that saves a larger share of Economic and Social Affairs (DESA) since 2005, and
national income, to finance productive investments. (Honorary) Research Coordinator for the G24 Inter-
governmental Group on International Monetary Affairs
External financial liberalization in the 1980s and and Development since 2006. Jomo has authored
1990s was supposed to mobilize foreign resources. or edited over 100 books and translated 12 volumes
But portfolio investments in sub-Saharan Africa are besides writing many academic papers and articles for
negligible, and ill-suited to facilitate sustainable growth. the media. During 2008-2009, he served as a member
Foreign direct investment (FDI) has more potential of the [Stiglitz] Commission of Experts of the President
to make a positive impact. Appropriately structured of the United Nations General Assembly on Reforms
and targeted, FDI can lead to diffusion of technology. of the International Monetary and Financial System. In
However, Africa’s share of FDI to all developing 2007, he was awarded the Wassily Leontief Prize for
economies has fallen from 21 percent in the 1970s to Advancing the Frontiers of Economic Thought.
only 11 percent in recent years, or from 5 percent to
only 3 percent of global FDI. Rudiger von Arnim (rudiger.vonarnim@economics.
utah.edu) is Assistant Professor at the University of Utah
Moreover, FDI in sub-Saharan Africa overwhelm- in Salt Lake City, UT, USA. He received the doctoral
ingly targets natural resource extraction. For example, degree in Economics from the New School for Social
the five sub-Saharan countries with the highest share of Research in New York, NY, in 2008. His research
regional FDI during the past decade are Angola, Nigeria, focuses on international macroeconomics, trade and
Sudan, Equatorial Guinea and Chad—all oil-exporting development, particularly the application of computer
countries. Positive spillovers from these investments simulated models for policy analysis. Von Arnim has
are, of course, limited. consulted the ILO’s International Institute of Labour
Studies (IILS), Oxfam, UK, and the Inter-governmental
While sub-Saharan growth has resumed after group of Twenty Four (G24), among others.
more than two lost decades, concentration of growth
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The G8 Africa Partnership Must Face
the Challenge of China
By David K. Schneider, Professor of Chinese Studies at the University of Massachusetts, Amherst

On the G8 agenda this year is the partnership with regional component of China’s state-owned industrial
Africa—development assistance, debt relief, AIDS sector. Beijing’s development credits are tied; the
programs, food safety, and health. Yet, promoting continent exports energy and raw materials to China’s
development will require not only an approach to these heavy industries as payment for imports of Chinese
perennial problems, but also an answer to the challenge capital equipment and machinery. African economies will
of China’s vision for the continent. thus develop as mirror images of the Chinese economy.

Indeed, the Forum on China-Africa Cooperation That reflection, however, will not include an African
(FOCAC) assumes the “injustice and inequality” of the private sector with global connectivity and growing
international system and seeks to establish “a just export industries, the very factors that produced all
and equitable new international political and economic post-WWII development miracles. It is not only resource
order.” As the vastly stronger partner in the relationship, exports and infrastructure investment that produce
Beijing will determine what this new order will look like. development. Deregulation and integration into global
free trade must follow for a breakout to occur. It was
The risk for Africa, and the problem for the G8, is when New Delhi began to disempower the “License
that Africa may well be swallowed up in China’s own Raj” and to empower its private sector to trade with the
unbalanced economic structure, while losing opportu- world that the Indian economy began to take off.
nities to build a private-sector driven system, with free
connectivity with global trade and capital markets. But the best example is China itself. Rapid growth in
trade and foreign investment came with China’s opening
Employment and political stability in China depend to global markets over the past 30 years, facilitated by
upon massive capital investment in heavy industry and Beijing’s capitalist economic diplomacy, a web of trade
cheap exports. Beijing therefore needs two things: and investment agreements with the West and Japan,
reliable access to resource supplies and a competitive and later, full membership in the World Trade Organiza-
yuan exchange rate. tion (WTO).

The first is essential for the viability of the The reforms have now advanced to the point where
state-owned–socialist–industrial sector, and the second China’s trade is regulated not so much by administra-
to keep exports competitive–the engine of China’s tive means but by the exchange rate. An undervalued
capitalist sector. Both are highly sensitive to commodity yuan prolongs China’s dependence on low value-added
inflation on the one hand, and exchange rate apprecia- exports—whose profit margins are sometimes so low
tion on the other. as to require state subsidies to maintain employment—
and denies other developing countries, including
China’s quest for reliable flows of commodity African countries, opportunities to invest in these same
resources involves not the West, but Central Asia, industries.
the Middle East, and Africa. The diplomatic organiza-
tions that govern these relationships–the Shanghai The need to keep exports running at a sprint
Cooperation Organization, the China-Arab Cooperation pace entails pegging the yuan to the dollar and other
Forum, and the FOCAC–operate as mercantile organi- currencies and keeping it undervalued, not a sustainable
zations. development model over the long term. While the
government has begun an effort to reduce China’s
As in Central Asia and the Middle East, Beijing is dependence on exports and to move toward a domestic,
committing considerable investment to the infrastruc- consumer-driven economy, the transition will be difficult.
ture and resource capacity of a number of African
countries, with robust government support for Chinese As the yuan appreciates, Chinese domestic
enterprises building transportation, communications, purchasing power will rise and inflation will diminish.
water conservancy, electricity, and energy projects. But the export engine will slow, putting growth and
employment in that sector into decline before growth
Growth rates in Africa have risen as a result. But the in the consumer sector can generate a compensating
economic boost may not last as long as many hope. source of employment.
Over dependence on China risks making Africa a mere
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This would raise the risk of an economic crash similar investment and exports, designed to move China
to that Japan experienced at the beginning of the 1990s, toward full integration with the world free trade and
with one significant difference: in China such an outcome investment regime, and leading eventually to full con-
would lead to serious social and political upheaval, vertibility of the yuan.
threatening Communist rule. Thus, significant exchange
rate liberalization is highly unlikely in the near term. In the meantime, the traditional aid strategy will not
be enough. The G8 governments must offer a strong
This places African nations in a double bind: first, alternative program of trade liberalization, privatization,
integration into China’s socialist-mercantile system links private sector investment financing and tax incentives,
Africa with the least efficient sectors of the Chinese especially for small and medium sized enterprises, and
economy, while embedding the continent in a web of debt relief, combined with vigorous public and diplomatic
managed trade regulations, tied to the vicissitudes of support for African linkages with global markets and
Beijing’s economic priorities. private capital investment.

Second, China’s exchange rate dilemma crowds out After decades of stagnation, some African nations
significant opportunities for African development of the are poised to lead the continent toward a bright
very export industries that are now lifting China, India economic future. But to get there, Africa, like China
and other emerging economies out of poverty, thereby before it, will need extensive inflows of private capital
limiting Africa’s potential for lucrative connectivity with from the West and access to global free markets to
global trade and capital markets. make the transition from stagnation and dependence to
prosperous independence.
The G8 must craft an approach to Africa that deals
with these problems. One important step will be a firm David K. Schneider, formerly a U.S. Foreign
multilateral effort to work with Beijing to implement a Commercial Service Officer with posts to Beijing and
sustained transition toward a more balanced growth St. Petersburg, is a professor of Chinese Studies at the
strategy that emphasizes consumption as well as University of Massachusetts, Amherst

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Promoting Economic and
Political Liberty and Women’s Equality in Africa
By Michelle D. Bernard, Chairman, Founder, President and CEO, the Bernard Center for Women, Politics & Public Policy

Public attention is focused on Libya, but internation- often hinders progress. Government-to-government
al poverty underlies much of the conflict in the Middle transfers tend to entrench political and economic elites.
East. The suffering of billions of people around the But only the democratic, capitalist nations in the West
globe remains one of our most serious challenges. The have answers for Africa’s problems.
West learned the secrets of economic growth centuries
ago. Asia is now catching up economically. It is Africa’s After years of distress, Africa has been growing over
turn to provide its people with freedom and opportunity. the last decade. However, many countries, such as
Sierra Leone and the Democratic Republic of the Congo,
The history of humanity was one of poverty. The rise remain limited by past crises. Moreover, a number of
of commercial society transformed the old social order. African nations risk taking a counterproductive detour
through Beijing.
Today, the G8 members demonstrate how capitalism
uplifts the poor. Markets are not enough to ensure No doubt, the People’s Republic of China has
that everyone prospers, but markets are essential for grown spectacularly. And it has done so because its
prosperity. And that prosperity is necessary for most rulers chose to abandon Maoist collectivism for relatively
other measures of social progress, such as providing free markets. But the Chinese model has limits. Most
better health care. obviously, no African nation has the PRC’s large
reservoir of low-paid workers for employment in Western
Democracy also matters. Accountability of political enterprises. Moreover, even China may be running into
leaders, respect for the dignity of the human person, economic constraints: the supply of Chinese workers is
protection for personal and family autonomy—all of not endless and many now are demanding sizable pay
these are necessary to build prosperous and good increases. More important, China’s attempt to expand
societies. an economic marketplace within an autocratic political
framework risks social explosion. Even the Beijing
Related to both is the status of women. The point is authorities acknowledge tens of thousands of protests
every year. These would overwhelm most African
nations.

Chinese investment in Africa has proved useful,


but the Chinese are no less controlling than European
colonial overlords. For instance, Zambia has been
rocked by protests over Chinese mine managers who
shot 13 protesting workers last year.

Perhaps the best African model is Botswana. It is


more democratic and capitalist than China. Botswana
shows African nations how to succeed. And it shows
the G8 countries what Africa needs to succeed.

Africa doesn’t need more promises of aid.


Observed economist Bill Easterly, “The G8’s solution
not just the immorality of treating women as chattel. It to the problems of the poor is apparently to bore them
is the practical waste of treating women as chattel. As out of poverty through sheer wordiness. They reaffirm
columnist Kathleen Parker noted: “Without exception, previous reaffirmations, amplify previous amplifications,
every nation that oppresses women is a failed and, and clarify previous clarifications.”
therefore, dangerous nation.”
At the upcoming G8 Africa summit both rich and
At its May summit the G8 should make Africa’s poor nations need to take a different approach. The first
transformation a priority. No doubt, there is fatigue in the is to expand market opportunities for African nations.
West dealing with decades of crises in Africa. Indeed, That can be best achieved by reducing Western protec-
experience demonstrates that traditional foreign aid tionism. The U.S. and Europe should stop protecting
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82
their farmers at the expense of poor peoples around the Countries that have suffered the most have the
world. The Doha round of the World Trade Organiza- greatest need to draw upon their women’s talents.
tion needs to be reinvigorated. Wealthy nations should For instance, in Rwanda women have been making
unilaterally reduce trade barriers. substantial economic and political advances. The U.S.
Department of State recently sent a women’s technology
The second approach is sensible debt cancel- delegation to Liberia and Sierra Leone, explaining that
lation. The West should not reward political improvi- these two nations “are now positioned to lead change
dence by routinely relieving indebted governments of and build better futures for women and girls.”
their obligations. But when an earlier dictatorial regime
ran up the debts, reforms have been made, and new The road ahead remains long and difficult. It is
leaders commit to limit future borrowing, debt relief may critical to improve education and economic opportu-
be warranted. nities. But long-term economic growth also requires
political and social reform. The G8 cannot force Africa
Third, the G8 should continue to promote to change. But the West can, and must, encourage
democracy. Rather than emphasizing human rights, the greater home-grown change.
West should point to stability. Political repression has
wrecked Zimbabwe. A stolen election in Ivory Coast Michelle D. Bernard is the chairman, founder,
led to national conflict. A potent mix of autocracy and president and CEO of the Bernard Center for
poverty exploded in the Middle East. Even China may Women, Politics & Public Policy and an MSNBC
eventually realize that more popular participation is political analyst. Ms. Bernard is a regular panelist
necessary to promote social stability. with Hardball with Chris Matthews, the Dylan
Ratigan Show, and The McLaughlin Group.
Finally, the West should promote the role of women. Ms. Bernard is the author of Women’s Progress: How
Although human rights underlie the case for equality, Women Are Wealthier, Healthier and More Independent
there is a more practical objective: to employ all of Than Ever Before.
Africa’s human talent. The status of women in Africa
is not as bad as that in some Middle Eastern nations,
but they nevertheless suffer from social discrimination,
inadequate education, and violent mistreatment. Yet,
even today the rate of female entrepreneurship is higher
in Africa than in any other region of the world.
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Helping the South Sudanese Diaspora Return Home
By Sheldon Wardwell, Hinckley Scholar, Hinckley Institute of Politics

Amid this year’s political change in North Africa, neighboring countries. Though neither situation is
many forget that history is also being made to the south something to be scoffed at, those who fought in the
and east of Libya, Tunisia and Egypt. 2011 will also bush faced atrocious conditions, often went for days
usher in the birth of the world’s newest country: South without food, gave up any possibility of receiving an
Sudan. Despite a great deal of international support education and continued fighting with no end in sight.
and a promising financial boon from oil reserves, Understandably, these former soldiers, who form a bulk
South Sudan faces many challenges in establishing a of the ruling SPLM, are hesitant to share their new-found
functioning state. power with others.

In an extremely poor and volatile region composed Though many experts believe it will be at least a
primarily of former rebel fighters and returning refugees, lifetime before significant power is shared, the SPLM
loyalty often belongs to tribal leaders, not to the nascent has shown willingness to include others in establishing
government run by the Sudanese People’s Liberation the new government. Such was the case at the political
Movement (SPLM), whose army led the fight for inde- parties’ conference held in October 2010, in which
pendence. In order to avoid a massive internal conflict 23 political parties united, calling for timely and
and establish trust among its citizens, the government transparent conduct of the referendum, which would
must implement widespread public services and institu- later allow them to vote for unity or separation with the
tions aimed at developing a middle class and giving the north. The gathering resolved that if the south achieved
people a voice. independence the government would establish a consti-
tutional review committee composed of members from
Beyond the tribalism, there remains an important various parties.
distinction between southerners: those who stayed
and fought as rebels, and those who fled the region Months later, the south went on to win its right for in-
as refugees, most ending up in refugee camps in poor dependence with an astonishing 99 percent of the vote,
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84
Africa

set to take effect on July 9, 2011. The government has prospect of a major natural resource exporter, as well
since been criticized after some key political parties as a moderate ally in a dangerous neighborhood. For
pulled out of the constitutional review committee for what this and many other reasons, leading countries such as
they called the SPLM’s “dominance over all decisions.” the United States and China have shown a great deal of
In response, the government has assured the people interest in seeing that the region achieve stability. As in-
that the interests and views of all South Sudanese will dependence draws nearer, assisting a broad workforce
be considered when writing the new constitution, and of skilled and educated South Sudanese to return home
citing the opposition parties’ extreme demands (50 may be the most effective form of aid the international
percent of power in parliament, the cabinet and state community can offer.
governments) as the source of the committee’s fracture.
Over the past two years, I have had the opportunity
Although the government’s sincerity about to interview several South Sudanese, including soldiers
addressing the interests of the people may be ques- and citizens in Juba, South Sudan’s capital, and refugees
tionable, one thing remains clear: the time for taking currently living within the United States. Despite
full responsibility of the country is very near, and if the reports of resentment between SPLM leadership and
government wishes to avoid a catastrophe similar to those wishing to return home, nearly every interviewee
the ones which have plagued the region for the last expressed a strong sense of camaraderie with their
50 years, it needs to make sure the people are heard. distant brothers, many in Juba noting the crucial
The government’s success and livelihood will depend, support they had received from the diaspora in the form
in large, on its ability to ensure that public services are of remittances, small loans and construction projects.
accessible to all ordinary people, which is a daunting Conversely, a majority of South Sudanese within the
task, especially considering the lack of infrastructure in U.S. clearly long to return home and assist with recon-
the region and the fact that the ruling SPLM is dominated struction; the major factor holding them back, however,
by semi-literate military figures. is the prohibitive cost of relocating and finding work.

Creating a competent government is going to Programs offering assistance to such refugees have
require a forged relationship between those who stayed already been proposed, such as the Return of the Lost
and fought, the ruling SPLM, and the refugees who have Boys and Lost Girls of Sudan Act, introduced in the
been pouring in since the 2005 comprehensive peace United States House of Representatives in 2007. The
agreement. Largely untapped, and potentially one of bill sought to assist the well-known group in voluntarily
the most valuable resources available to the south, are returning to South Sudan to assist in reconstruction.
the thousands of refugees currently living in developed Citing the resilient and ambitious nature of this group,
western countries, namely the United States, where their reputation for maintaining employment while
they have been receiving advanced educations and pursuing higher education, as well as their expressed
gaining critical skills in fields such as business, public interest to return, the bill proposed creating a program
policy, engineering, health and education. They have which, in coordination with the Sudanese government
also become accustomed to democratic processes and international actors, would identify projects that
and norms, attributes which will prove indispensable for could benefit from the talents and skills of those returning
building a new democratic state. and appropriate funds to help cover the travel, living,
student loan repayment and other costs associated with
With 6.8 billion barrels in proven oil reserves, and the transition. Though the bill never passed the House
an abundance of untapped minerals (gold, copper, iron Committee on Foreign Affairs, it offers an outline of
ore and more), a stable South Sudan offers the exciting what G8/G20 governments could potentially do, though
the eligibility of such a program should be expanded
to include all Southern Sudanese refugees, not just the
Lost Boys and Lost Girls.

Sheldon Wardwell graduated from the University


of Utah in 2009 with a B.S. in Political Science and Inter-
national Relations Certificate. After graduation, Sheldon
served a Hinckley Institute of Politics Internship with the
Rwanda Governance Advisory Council, and conducted
field research in South Sudan.
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Tools of Engagement:
Winning the Social Media War
Expanding dialogue can help develop and restore trust
By Sheldon Wardwell, Hinckley Institute of Politics

More than 200 years before the invention of the expand the dialogue between the American people
Internet, a Boston tradesman gave a powerful demon- and their elected leaders. Speaker Boehner recognizes
stration of the efficacy of social networking. As British the potential of these technologies to help us more
troops prepared to march toward the American cities effectively unite people, monitor public perspectives and
of Lexington and Concord on April 18, 1775, Paul share information.
Revere and William Dawes rode through the night on
separate routes delivering a message meant to mobilize When Paul Revere and his fellow colonists initially
opposition. Author Malcolm Gladwell, in his book fought the British, they did so as a single colony. But
The Tipping Point, described how the well-traveled as word slowly began to spread, all 13 colonies came
Revere’s many social connections enabled him to set together, forming Committees of Correspondence
the countryside on fire in a way Dawes was unable to to coordinate their efforts. Today in America, those
match. The success of the famous “Midnight Ride” connections among the like-minded are happening
helped the American colonists win a decisive military faster than ever. The swift rise of a freshman Illinois
and public relations battle. Senator to President of the United States was aided in
part by social media tools. Similarly, the surge of the
Today, digital technology has brought new tools to so-called Tea Party movement in response to President
quickly and effortlessly bring people together. Reports Obama’s policies was equally rapid and significant.
of protests aided by technology are not new. Text Such movements can develop quickly. If we don’t run
messages were said to have aided the successful 2001 with these tools, we will be run over by them.
ouster of Philippine President Joseph Estrada and were
also credited with galvanizing support in Ukraine’s 2005 In addition to uniting the like-minded, digital tools
Orange Revolution. provide a critical portal into public opinion. Had King
George III and the British Parliament in 1775 been able
More recent events in Iran, Moldova, Egypt, Libya to see the thought bubbles of the American subjects
and Tunisia have demonstrated the global reach of (thoughts we now see expressed on Twitter), they might
newer social media tools such as Facebook, YouTube not have been so surprised by the response to the battles
and Twitter. These tools do not drive revolutions any at Lexington and Concord. From 3,000 miles away, the
more than Paul Revere’s horse mobilized an army. But British expected American colonists to be grateful for the
they do act as an accelerant allowing natural events to protection provided by the King. They were completely
organize and take shape much more quickly and broadly unaware how deeply the message of freedom and in-
than they otherwise might have. dependence was resonating across British America. It
is incumbent upon leaders to listen to the people we
The response to these tools has ranged from hope represent and to address the concerns that resonate
to fear. Any tool that brings together protestors who within our communities. Instead of shutting down
can bring down governments is powerful. Depending dialogue, we win the social media war by encouraging
on where you stand, a digitally-networked population engagement and even participating in it. To the extent
can be your strongest weapon or your worst nightmare. there is widespread dissatisfaction with government
policies, we can work to address concerns before they
Sensing a potential threat, some governments have develop into full scale revolts. Although social media
tried to censor or shut down access to social media. does not give us an omniscient perspective of public
These efforts will fail. Social networking technologies are opinion, it provides valuable snapshots that can confirm
here to stay. Their influence and reach will only continue public support or warn us of danger ahead.
to grow. And frankly, that’s a good thing. Today’s digital
delivery services offer unprecedented opportunities for As beneficial as connecting with and receiving
governments and citizens to engage and interact. public feedback can be, the real advantage of
social media is the ability to join the conversation.
Recognizing the power of social media, U.S. Public perception is shaped by facts. People are
Speaker of the House of Representatives John Boehner smart. When we make public policy, they want
asked me to lead a Technology Operations Team to to understand the facts that drive our policies.
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Therein lies the greatest opportunity and challenge broad range of messages in the public marketplace.
of a social media age. The surest way to build support is to have facts on our
side. When our solutions make sense, our facts are
The American colonists understood that winning unimpeachable and our message resonates, there’s
the public relations battle meant getting the truth out virtually no limit to how far and fast our message can
first. Anticipating that the British version of events travel in today’s digital age. The axiom that “if you’re
would likely differ from theirs, Boston’s Sons of Liberty explaining, you’re losing” does not have to be true.
hastily compiled narratives describing the battles at
Lexington and Concord from the American perspective. Social media does not create or even drive political
Recognizing that British General Thomas Gage’s report revolution. But the effectiveness of these tools in accel-
was traveling on a slow ship, the Americans deliberately erating existing movements means leaders ignore them
sent their stories via the fastest ship they could find. at their peril. Instead, we must use these tools to earn
By the time General Gage’s version of events arrived in and instill public trust in our institutions and account-
England, British newspapers had already reported the ability in ourselves. Paul Revere’s success came from
facts of the battle from the American perspective. his ability to deliver a message that resonated to people
who shared his concerns. To the extent we are willing to
In order to build support for our policies and govern responsively, we have more to gain from social
positions, it is necessary to address misperceptions media than we have to fear.
with real facts. Complex problems can be intimidating
to understand and difficult to explain. Some citizens will Congressman Jason Chaffetz was elected in
see complicated issues like foreign or monetary policy 2008 to represent Utah’s Third Congressional District.
as a big elephant they could never eat. But social media He distinguished himself by building a grass roots
allows us to feed people that elephant one bite at a time campaign organization rooted in principle and with a
– sharing facts over time that ultimately educate and demonstrated commitment to fiscal discipline.
enlighten. If we want to build support for our policies
and positions, we have to be able to compete with a
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Tunisia: Perfect Storm for Reform?
By Abdulwahab Alkebsi, Regional Director for Africa and the Middle East, Center for International Private Enterprise

In recent months, the Tunisian and Egyptian people stitutional level, including developing a robust respect
have peacefully overturned decades of authoritarian for the rule of law. Transparency in decision-making
rule, withstanding an onslaught of state apparatuses means not only addressing opportunities for corruption
that have kept them in fear for decades. The new face of in government institutions, but also supporting
the Arab people – young, vibrant, educated, organized, businesses’ understanding of corporate governance
connected, and hungry for democracy – has replaced and the many linkages between improving private and
stereotypes of a people mired in authoritarian political public governance. One prominent example is the
structures. The claims that the Arab world does not improvement of customs offices and regulations to
want democracy may finally be put to rest. eliminate the opportunities for bribery.
In Tunisia, the immediate challenge is for the people Public Sector Reform – Current levels of public
to shift from protesting against, to deciding what they sector employment are an untenable strain on
are for as they shape their country’s future. But in a resources. Reform of this inefficient sector must be a
worrisome trend, politicians are not offering substantive national priority. Improved governance of state-owned
reform solutions, calling instead for populist “quick-fix” enterprises would increase the efficiency and effective-
responses such as government salary increases, ness of the public sector. In a new Tunisia, the private
subsidies, and public sector expansion. While such sector needs to be the engine of growth, competitive-
measures may appease Tunisians in the short term, they ness, and high-value job generation.
will provoke massive capital flight if they continue, and The Role of Civil Society – Civil society organiza-
lead to a vicious circle of shrinking opportunity, rising tions represent a diverse group of reform-oriented
anger, and further chaos. institutions, including chambers of commerce, asso-
That said, Tunisia has every chance of improving ciations, and think tanks. They need assistance with
economic life for its citizens as well as attracting foreign strategic planning and advocacy techniques so that
investment if it follows through with a democratic trans- citizens from all positions on the political spectrum
formation and includes the right economic reforms. can participate in the marketplace of ideas and enrich
A democratic state that is dependent on revenues Tunisia’s democratic experience.
generated from its citizens and businesses will The private sector’s immediate and dedicated
necessarily become accountable to its citizens. Unlike political engagement is crucial for Tunisia to attain its
other countries in the region, Tunisia’s economy is not development goals and take its place as the economic
solely dependent on natural resources but on the pro- powerhouse of the region. This includes active
ductivity of its workforce and the ability and innovation dialogue with emergent political parties as they develop
of its private sector. Tunisia has many valuable assets at substantive economic platforms. In Tunisia, youth used
the ready: ample human capital, including an educated its collective voice to demand democratic change.
and hardworking youth population; connectivity to the Tunisia can be the test case for a new development
developed world; a secular middle class; and a reform- model for the entire region, leaving behind authoritarian-
minded private sector. Tunisia’s many assets create the ism and economic stagnation and moving forward with
opportunity for this period of transition to become a healthy improvements in economic growth, high-quality
perfect storm for reform. jobs, and democratic, accountable governance.
Ultimately, the country’s leaders must come together This model will only succeed if the new policymak-
and develop their own roadmap for reform. Yet, it is ing process for the country includes input from diverse
clear that any plan would have to include some basic actors within Tunisian society – political parties, civil
elements: society, labor, and, importantly, the voice of the private
Legal & Regulatory Reform – There is an urgent need sector. Crucially, the enormous excitement generated by
to harmonize and simplify the laws that govern the local a “perfect storm” of favorable conditions for reform must
economy and investment. Reducing legal and regulatory be harnessed into positive energy if Tunisia is to realize
burdens will reduce opportunities for corruption, foster the full potential of this golden opportunity.
private sector growth, increase transparency, and
strengthen rule of law. This will have a direct influence Abdulwahab Alkebsi recently conducted a trip
on consolidating democratic governance and improving to Tunisia, where he met with political leaders from
economic growth. government and the opposition, as well as leaders of
Anti-Corruption – Tunisians must make combating the private sector, labor, and civil society.
corruption a national priority and address it from an in-

G8
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Increasing Access to Workforce-Ready Talent:
A Look at the “Partnership for Lebanon”
By Christopher K. Bramwell, America-Mideast Education and Training Services, Inc. (AMIDEAST)

The ability to hire workforce-ready employees is one alternative pathways for getting professionals into
of the most mission-critical requirements for any orga- the workforce. The result is enhanced career oppor-
nization. For decades, U.S. companies have expanded tunities for the community and a more innovative and
operations in international markets, but there is effective workforce for the company and its partners.
something emerging here: a “disconnect” that demands This advances the company and creates the favorable
companies’ attention. business climate necessary for performance and
shareholder value.
We are entering an era of talent scarcity where lack
of access to ready talent threatens a favorable business “Partnership for Lebanon”
climate and creates drag on a company’s achievement of In 2007, Cisco Systems teamed with the non-gov-
its performance goals, or those of its partners, including ernmental organization America-Mideast Education
suppliers and distributors. and Training Services, Inc. (AMIDEAST) under the
“Partnership for Lebanon” to create alternative pathways
When education systems produce professionals to employment. The plan pipelined high-potential talent
with basic knowledge, but not the skills to apply it in the into pathways that served as direct feeders into the
workplace, multinationals face a talent gap that slows Lebanese workforce.
their performance.
Qualified Lebanese professionals worked as interns
Closing the Talent Gap with companies in Lebanon and in the U.S. One group of
Only 25 percent of Indian professionals are interns was placed with different Cisco Systems partners
considered employable by multinationals, according to in Lebanon—companies that were not in a position to
research published by Hewlett and Rashid in the May take on new staff. Through this program, Cisco covered
2010 issue of the Harvard Business Review. the costs, allowing the interns to develop revenue-gen-
erating work streams and otherwise add value to the
Companies that ignore the other 75 percent—using partner company. At the end of the 11-month program,
the India example as an illustrative case—will face an all the interns were hired by the partner companies as
ever-deepening talent gap as they and their partners full-time employees, where they continue to enhance
attempt to penetrate or expand into new international business operations and generate new revenue.
markets and have to manage the risks related to hiring
unprepared labor. Other groups of Lebanese professionals were
pipelined into six-month internships with the Cisco
Corporate decision makers walk a fine line between Systems corporate headquarters in San Jose, California.
expanding international operations into areas that All returned to Lebanon and found full-time employment
are not workforce ready and waiting for interven- with Cisco Systems, Cisco partners or other institutions,
tions that will produce a more prepared labor force. including a bank that became a Cisco client after the intern
it hired convinced them to purchase Cisco products.
They could expand operations too quickly or too
soon and play catch up with local talent that is ill-pre- In the partnership, AMIDEAST provided support
pared to meet job demands. that Cisco preferred to outsource: identifying the talent,
developing the corporate internships in Lebanon and
Or they could wait, but wait for what? Wait for local monitoring the progress of the interns in Lebanon and
education systems to produce job-ready talent? Wait those in the U.S. Cisco Systems funding supported
for cultural shifts that encourage such values as collabo- the activities, Cisco headquarters worked directly
ration across networks, continuous learning, or leading with U.S.-based interns, and it was Cisco’s vision that
by influence? determined the objectives and overall direction.

Companies don’t have to wait for major sectoral As a result of this program, Cisco Systems stands
changes in a country’s education system to achieve to gain market share in Lebanon through greater
the workforce readiness they require to grow. Nor innovation from the interns, new growth and strength
do companies have to “fix” education systems. They from its partner companies, increased market reach and
can instead focus on market segments and create growth, and increased competitiveness.
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The program not only empowered the interns operate. Financial capital advances the business and
and increased their sense of well-being, but it has achieves required performance with profitability and
a multiplier effect in doing so for the interns’ families financial return.
and the communities in which they live. In this way,
Cisco has also contributed to a more favorable climate A surprising bonus is that where these three areas
in which to conduct business and they enhanced their overlap, you have what might be called “strategic philan-
brand and reputation. thropy” that companies can capitalize on for reputation
and employee retention, which are both important
Corporate Social Responsibility Funding or Busi- business drivers.
ness Strategy Investing?
Workforce-readiness programs that are accountable Companies can fund this kind of program as
to advancing the company and creating a favorable a corporate social responsibility strategy that has
business climate can be articulated as a strategy of business value or invest in this as a business strategy
investing in high-value programs and partnerships that that also has social value. Either way, companies have
promote human progress and economic development. the most convenient platform of all to work with—their
An education and training focus within that strategy, own business operations. Through mentoring and
such as pipelining talent through internships, will achieve internship pathways that use that platform, companies
a better workforce and a better community in which the can serve as direct feeders for talent into the workforce,
business can operate. driving their own core business strategy, and creating
social capital.
Improving the business and investment environment
and services for the company makes capital safe. For more information about the Cisco-AMIDEAST
Improving the capacities of the company to operate partnership or details about the program to pipeline
makes capital welcome. And improving the impact of high-potential talent, contact Ms. Kate Archambault,
investment on the educated, but unprepared labor force karchambault@amideast.org.
is where we talk about profitability for companies and
their partners. Christopher K. Bramwell is based in Washington,
D.C., and has worked on development assistance
In other words, this strategy with its focus on programs with non-governmental organizations for over
education and training addresses three dimensions of 25 years. Chris has experience in over 50 countries,
capital. Human capital development results in a more speaks three languages, and holds a bachelor’s degree
prepared labor pool. Increased social capital provides from Brigham Young University and a master’s degree
a better community and business climate in which to from Harvard University.
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Social Media and Rethinking
‘The Clash of Civilizations.’
By Graig Klein, Contributor, The Diplomatic Courier

The rapidly maturing field of social media, spe- of such information provides a new dimension in cross-
cifically websites such as Facebook and Twitter, has cultural communication and develops a new frontier
powerfully challenged dictatorial legitimacy, becoming for transcending ostensible cultural blockades and
a platform for democratic discussion under repressive impasses.
regimes, challenging the way we theorize the nature
of conflict itself. While dictatorial countries might Aside from challenging Huntington’s perception of
have tried over the past decade to control social the dynamic path of conflict, technological advance-
media outlets, China and Iran, for instance, censure ments confront nation states’ relative monopoly on
and sometimes block websites including Facebook, technology to influence peace and security. Social
Twitter and Flickr, these same websites, have played media platforms provide a means of quickly arousing a
a significant role in the initiation and the brevity of critical mass, an ingredient for a successful revolution.
the overthrow of dictators in Egypt and Tunisia, and By providing a platform for mass communication and
are currently influencing pro-democracy movements mass dissemination of protest locations and information,
throughout the Middle East including in Bahrain and it can enable activists to quickly assemble support and
Syria since the beginning of 2011. achieve the critical mass required to initiate reform. As
technology continues to increase in importance, in both
As the nature of peace and conflict has so greatly 21st century revolutions and other political and social
shifted in the past decade so must the dialogue. Since demonstrations, it has become a crucial aspect for any
Foreign Affairs published Samuel Huntington’s influential group to accomplish its agenda.
article, “The Clash of Civilizations,” in 1996, it has
become a relic, a symbol of the dynamics of conflict The recent non-violent protest movements in the
before the average citizen was given an internation- Middle East and North Africa provide a good example
al cyber venue. Huntington argued on the nature of of this utilization: as early as April 2010, Facebook
conflict after the Cold War: While cultures may mitigate groups were formed not only in Egypt, but throughout
geographic boundaries (i.e. the Western culture, the the Middle East in support of Mohammad El Baradei’s
Arab culture) and form alliances based on broader return to Egypt and suspicion of his political ambitions.
ideologies (a phenomena attributed to the Cold War), When protests began in Cairo in January 2011, they
differences between countries that share the same centered around the leadership of youth who utilized
ideology would diminish in significant as globalization Facebook to organize and vent frustration over the
intensified and civilizations with dissimilar cultural norms torture and death of innocent individuals throughout the
and ideologies would also more frequently interact country. Egypt quickly recognized the influence social
resulting in the new frontier of conflict–the clash of civi- media had on the democratic movement and attempted
lizations. But as the world becomes more technologi- to stop the organizing ability of social media platforms
cally advanced, can this theory be applied to the future by shutting down internet connectivity. An example of
nature of conflict as we have observed it over the past government attempting to maintain the monopoly over
few months? Could it instead be argued that cultural technological advantages in conflict, but it did not work.
differences and cleavages are lessened by the greater Several international organizations and countries urged
level of cross-cultural communication and interaction Egypt to reactivate internet connectivity. Twitter and
that social media outlets have provided; that instead Google did not wait for Egypt’s response; instead the
of becoming more distinguishable culturally and letting two companies violated this monopoly: undermining
our differences divide us, are we in fact, the younger the dynamics of the country’s political system. A service
generations, becoming more united under democratic was created that turned mobile phone calls into tweets.
principles? Pro-democracy dissidents managed to topple a thirty
year regime in mere weeks through the effective use
The lack of cross-cultural communication has been of social media platforms, thus sending a stunning
a challenging dilemma for nation states, especially and stern warning to dictators around the world.
repressed countries, to overcome in the past decade,
yet, recently it seems as though these cyber platforms, Although Egypt is the best example of the success of
becoming more utilized, have helped aid revolutionary internet technology challenging the peace and security of
thinking and have stimulated the brevity of revolution a nation state, there have been other recent examples of
itself. The effortlessness of disseminating opinion, opposition movements widely and effectively utilizing this
G8 photographs and activities and the overly easy viewing platform. In 2009, after corrupt elections in Iran, anti-gov-
Summit 2011

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Middle East

ernment protesters took to the streets and the internet. Although the internet may present less danger to
Videos were sent around the world of police brutality and democratic governments, social media empowers these
Neda Salehi’s death via mobile phones and social media democracies in a unique way. Instead of protecting
outlets. Not only did these images spur greater protests government secrets or attempting to infiltrate foreign
in Tehran, they encouraged international pressure for hard drives and networks for their government secrets,
foreign intervention. Social media proved incapable of as China, the United States and Russia have been
change in Iran, but less than two years later, it greatly routinely charged with orchestrating, governments could
aided in overthrowing the Egyptian regime. engage in covert missions to spread more democratic
and secular ideology. Government operations could
As the wave of democratization continues to spread largely remain faceless by creating and maintaining
throughout North Africa and the Middle East, countries fake online accounts. While this cannot serve as the
that border these regions have taken notice of the only means of disseminating democratic ideals and
magnificent effect cyber connectivity has had in revolu- working to democratize the world, establishing false
tionary movements. Sudan, a volatile borderland between online identities and working to assist pro-democrat-
Islam and Christianity, resources and bareness and au- ic groups provides a cheaper and easier means of
thoritarianism and democracy, has experienced pro- reaching the next generation of leaders in a language
democracy propaganda disseminated via the internet. they understand; especially in the Middle East where
Bashir’s rule has already been dealt a significant blow by internet access and literacy is rapidly increasing in part
the results of the South Sudan referendum and he refuses by globalization, in part to infrastructure development
to cede anymore authority to opposition leaders within and in a large part due to the rapidly increasing youth
the territory he continues to govern. Additionally, though populations.
Bashir is aware of these pro-democracy changes, instead
of listening to the online dissidents, Sudan is releasing The average citizen, with the internet, experiences
“cyber jihadists” to monitor social media sites and unprecedented access to political and social develop-
intimidate possible free speakers through government ments minute by minute and can thus influence political
oversight and violations of the human right of freedom discourse from his couch. The amount of effort and time
of speech. While cyber warfare is not something new, required to reach a critical mass has been exponential-
Sudan’s approach to online security extends far beyond ly reduced. When laughing babies can attract twenty
the normal parameters of government oversight and in- million views on Youtube, social media can catalyze the
vestigation into online speech; Bashir is not monitoring overthrow of a thirty year regime in a country of eighty
social media cyber waves for state security, he is using million within a few weeks, changing our theoretical
government resources to monitor it for his personal and definition of conflict itself. Opposition leaders, once in
political security. danger of assassination, can avoid public appearances
that put themselves in grave danger by organizing in
The influence of the cyber venues on political and the comfort of their home or secure location. Social
social demonstrations and progress has primarily media is an international language understood by and
affected underdeveloped and developing autocratic ingrained in the younger and future generations of the
countries, but developed, pluralistic, liberal democracies world which has knocked down the wall to cross-cultur-
are not immune to the impact of social media platforms. al communication, lessoning the “clash” between civili-
For example, the United States, the beacon of zations.
democracy, has experienced the effects of these online
venues. Sarah Palin has maintained popularity by The unprecedented popularity and successful use
frequently tweeting dissatisfaction with politics or indi- of social media platforms opens the stage for a new age
vidual’s statements, anti-union legislation in numerous of political discourse, challenging the theoretical nature
states was met with heavy handed online responses of conflict as it has existed between different countries
through pro-union solidarity petitions, pro and anti union and cultures throughout history.
Facebook groups and a steady stream of tweets offering
support for both sides. In pluralistic societies, social Graig Klein is a Contributor with The Diplomatic
media often does not pose a direct threat to the ruling Courier magazine in Washington, DC.
regime; it simply acts as the new frontier of freedom
ofspeech and propaganda dissemination and serves as
a public soap box. G8
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Modernization of Russia: Real or a Pipedream?
By Richard Rousseau, Professor, Azerbaijan Diplomatic Academy in Baku

During his first trip to the U.S. in June 2010 Russian affiliated rebels. Disasters caused by human error, such
President Dmitry Medvedev tried to show the world that as the explosion in August 2009 at Russia’s biggest
Russia is open to innovations and investment from the hydropower plant in southern Siberia, have claimed
West since these are the pillars of his plan to improve dozens of lives and last summer’s terrible wildfires
the country’s economy. He also made known to all will prove one more ordeal for hundreds of thousands
that he keeps abreast of rapid technological advances: of Russians.
He and a group of other Russians met with high-tech
industry leaders in Silicon Valley, including Apple CEO The Kremlin has taken a restrictive approach to
Steve Jobs. Medvedev bought the latest model iPhone modernization: it is only interested in making technologi-
and created a Twitter account. At home, he unveiled cal progress. One segment of the Russian elite wants to
plans to develop an ultramodern technology hub (called adapt to the new global realities, including those resulting
“innograd” or innovation city) in Skolkovo, not far from from the economic crisis and the predicted decline of
Moscow. conventional energy, without undertaking a substantial
political transformation. “We are not going to hurry up.
In 2009, President Medvedev announced that Russia Rush and hastiness in the matter of political reforms had
will travel the road to prosperity and modernization. In already caused tragic consequences a number of times
an article posted on the official website of the President in our history,” repeats Medvedev.
of Russia (Kremlin.ru) he self-confidently criticized
the “primitive economy based on raw materials and For all the media hype concerning the modernization
endemic corruption” and the “paternalistic attitude” of of the economic framework, the ruling class is intent on
Russian citizens. He set five modernization priorities: implementing only cosmetic changes in the way Russia
Improving energy production and transportation is managed and governed. In Medvedev’s opinion, the
efficiency, raising nuclear technology to world standards, enhancement of information technology will make it
upgrading information technology by using “supercom- possible to introduce more democratic freedoms. To
puters” and other equipment, developing the country’s support his argument, he often points to China and
ground and space infrastructure by putting new space Singapore, two countries which have been successful
satellites into orbit with the capacity to “observe the in modernizing their economies without deep political
whole world” and becoming a leader in the production liberalization.
of medical equipment and medicines for the treatment
of various diseases. Unfortunately this authoritarian modernization,
rather than liberal-oriented modernization, has found
Since then, the President has encouraged public support among the elite and large segments of Russian
debate on the modernization of Russia. Political parties society. A national survey conducted in March 2010
have been encouraged to develop their own visions showed that nearly half of Russians believe their country
on this issue. Ordinary citizens have been given the has been heading in the right direction since Vladimir
opportunity to send e-mails to the Kremlin with their Putin became President in 2000. Almost fifty per cent
proposals. The President has already referred to some of Russians believe that ensuring stability is now more
of these in his official speeches and statements. important than introducing radical reforms. The stability
which Putin’s Presidency achieved is used as the main
Medvedev’s modernization rhetoric is an appropriate argument for technological modernization without
response to Russia’s current economic situation. The political change. The Russian public strongly fear the
Russian economy relies heavily on revenues from energy “bad democracy” experienced in the early nineties, when
exports. The level of corruption has increased steadily the country, ruled by the oligarchs, sank into chaos and
since 2001. In 2004 Russia was ranked 90th out of 149 instability. For the political elite, preserving the status quo
countries in the global corruption index of Transparency means maintaining its own power. Everyone knows that
International, whereas in 2010 it was 154th, alongside if Prime Minister Vladimir Putin, who favors authoritar-
notoriously corrupt countries such as East Timor, Sierra ian modernization, rules out running for President in the
Leone, Zimbabwe and neighboring Ukraine. Despite 2012 election this would signal the beginning of the end
police repression, mass demonstrations are becoming for all those brought into the political apparatus since his
more frequent in each of the country’s 9 time zones, takeover of the Kremlin in 2000.
from Kaliningrad to Vladivostok. The situation in the
North Caucasus is more problematic than ever, with Is Medvedev’s modernization program a big scam
frequent terrorist attacks from Islamic and Al Qaeda- if it is not accompanied by true democratization?
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Middle East

Several members of the Russian democratic opposition imagination of some scholars. Without economic and
believe that modernization without democratization is political changes being made the President’s plan is
not possible. They generally argue that the “managed as utopian as The City of the Sun (an important early
democracy” built in Putin’s Russia lacks a genuine utopian work written in 1602 by the Italian Dominican
program of modernization. The siloviki, the former philosopher Tommaso Campanella).The “innograd” in
security agents who have flooded the Russian political Skolkovo has all the hallmarks of a science fiction story,
class, are interested in preserving the status quo which another Potemkin village.
has allowed them to build political and economic power.
United Russia, the dominant party in the Duma–Putin’s Following a bilateral summit in Rostov at the end of
party–serves mainly as a political facade for Putin’s per- May 2010, the EU and Russia sent certain signals that
sonalized power. they may be willing to work together on the platform
known as “Partnership for Modernization.” However,
Authoritarian modernization has proven successful nothing serious will happen before the Russian Presi-
only in societies which have made the transition from dential election of 2012. If Medvedev stays in power, he
a poor, capital-scarce, low-income agrarian economy might be given the chance to bring about his modern-
to a non-diversified, primary sector-based economy. To ization program. If Putin returns to the Kremlin he will
carry out post-industrial modernization, creative energy most likely stay there for the next 6-12 years. With that
and citizens’ initiatives are prerequisites. Russia needs scenario, real democratization in Russia will not be on
a new social group ready to fulfill the task of ushering in the agenda for a long time to come.
the necessary parameters for a bona fide post-modern
and globalised state. However, there is nowhere to Richard Rousseau, Ph.D. is a professor of inter-
go to find this “enlightened” group, for the current national relations at the Azerbaijan Diplomatic Academy
political class feels comfortable with “managed in Baku and a Contributor to The Diplomatic Courier
democracy” and liberals long ago lost people’s support. magazine in Washington, DC.
Medvedev’s team of “modernizers” exists mostly in the
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G-8 profiles
Canada France Germany Japan

Leader: Leader: Leader: Leader:

Prime Minister President Chancellor Prime Minister


Stephen Harper Nicolas Sarkozy Angela Merkel Naoto Kan

Geographical Geographical Geographical Geographical


information: information: information: information:

Area: 9,970,610 km2 Area: 550,000 km2 Area: 357,021 km2 Area: 377,864 km2
Population: 32.6 million Population: 63.0 million Population: 82.3 million Population: 127.7 million
(2006) (2006) (2006) (2006)
Annual population growth Annual population growth Annual population growth Annual population growth
rate: 1.0% (2006) rate: 0.5% (2006) rate: -0.2% (2006) rate: -0.003% (2006)
Capital: Ottawa Capital: Paris Capital: Berlin Capital: Tokyo
Official languages: Official language: Official language: Language:
English and French French German Japanese

Economic data: Economic data: Economic data: Economic data:

GDP (nominal) 2007 [2] GDP (nominal) 2007 [2] GDP (nominal) 2007 [2] GDP (nominal) 2007 [2]
- Total $1,436 billion - Total $2,593 billion - Total $ 3,321 billion - Total $ 4,382 billion
- Pro capita $43,674 - Pro capita $ 42,033 - Pro capita $ 40,400 - Pro capita $ 34,296
- % World GDP 2.6% [4] - % World GDP 4.8 [4] - % World GDP 6.2 [4] - % World GDP 8.0 [4]

GDP (PPP) 2007 [3] GDP (PPP) 2007 [3] GDP (PPP) 2007 [3] GDP (PPP) 2007 [3]
- Total $ 1,270 billion - Total $ 2,068 billion - Total $ 2,812 billion - Total $ 4,292 billion
- Pro capita $38,617 - Pro capita $ 33,508 - Pro capita $ 34.212 - Pro capita $ 33,596
- % World GDP 2%[4] - % World GDP 3.2 [4] - % World GDP 4.3 [4] - % World GDP 6.6 [4]

Form of government: Form of government: Form of government: Form of government:

Federal parliamentary Presidential republic Parliamentary federal Parliamentary


monarchy republic constitutional monarchy

G-8s held to date: G-8s held to date: G-8s held to date: G-8s held to date:

Kananaskis Summit (2002) Evian Summit (2003) Heiligendamm Summit Hokkaido Toyako Summit
Halifax Summit (1995) Lyon Summit (1996) (2007) (2008)
Toronto Summit (1988) Summit of the Arch (1989) Cologne Summit (1999) Kyushu-Okinawa Summit
Ottawa Summit (1981) Versailles Summit (1982) Munich Summit (1992) (2000)
Rambouillet Summit Bonn Summit (1985) Tokyo Summit (1993)
(1975) Bonn Summit (1978) Tokyo Summit (1986)
Tokyo Summit (1979)
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Italy United Kingdom United States of Russia
Ameica

Leader: Leader: Leader: Leader:

Prime Minister Prime Minister President President


Silvio Berlusconi David Cameron Barack Obama Dmitriy Medvedev

Geographical Geographical Geographical Geographical


information: information: information: information:

Area: 301,255 km2 Area: 244,820 km2 Area: 9,629,091 km2 Area: 17,075,200 km2
Population: 58.3 million Population: 60.5 million Population: 299.4 million Population: 142.8 million
(2006) (2006) (2006) (2006)
Annual population growth Annual population growth Annual population growth Annual population growth
rate: 0.3% (2006) rate: 0.5% (2006) rate: 0.9% (2006) rate: -0.5% (2006)
Capital: Rome Capital: London Capital: Washington D.C. Capital: Moscow
Official language: Official language: Official language: Official language:
Italian English English Russian

Economic data: Economic data: Economic data: Economic data:

GDP (nominal) 2007 [2] GDP (nominal) 2007 [3] GDP (nominal) 2007 [2] GDP (nominal) 2007 [2]
- Total $ 2,105 billion - Total $ 2,804 billion - Total $ 13,808 billion - Total $ 1,290 billion
- Pro capita $ 35,745 - Pro capita $ 46,098 - Pro capita $ 45,725 - Pro capita $ 9,074
- % World GDP 3.9 [4] - % World GDP 5.1 [4] - % World GDP 25.3 [4] - % World GDP 2.4 [4]

GDP (PPP) 2007 [3] GDP (PPP) 2007 [2] GDP (PPP) 2007[3] GDP (PPP) 2007 [3]
- Total $ 1,787 billion - Total $ 2,168 billion - Total $ 13,808 billion - Total $ 2,090 billion
- Pro capita $ 30,365 - Pro capita $ 35,634 - Pro capita $ 45,725 - Pro capita $ 14,705
- % World GDP 2.8 [4] - % World GDP 3.3 [4] - % World GDP 21.3 [4] - % World GDP 3.2 [4]

Form of government: Form of government: Form of government: Form of government:

Parliamentary republic Parliamentary constitu- Presidential federal Federal Republic


tional monarchy republic

G-8s held to date: G-8s held to date: G-8s held to date: G-8s held to date:

Genoa Summit (2001) Gleneagles Summit (2005) Sea Island, Georgia (2004) Saint Petersburg Summit
Naples Summit (1994) Birmingham Summit Denver, Colorado (1997) (2006)
Venice Summit (1987) (1998) Houston, Texas (1990)
Venice Summit (1980) London Summit (1991) Williamsburg, Virginia
London Summit (1984) (1983)
London Summit (1977)

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Drug-Resistant Tuberculosis Advertisement

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Summit 2011

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G8
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