Tuesday, July 12, 2011 - 2:50 PM
For years the hackneyed joke about Brazil was that it was the country of tomorrow and always would be. But almost a decade ago, in the wake of the reforms of the Cardoso administration, and then thanks to the remarkable presidential tenure of Luiz Inacio "Lula" Da Silva and the industry and enterprise of the Brazilian people, the joke was overtaken by events. As investors, CEOs, journalists and most of the world's leading powers have recognized, Brazil has arrived.
While U.S. leaders like Presidents George Bush and Barack Obama have acknowledged the change, many in the U.S. policy community remained holdouts or skeptics. Yes, Brazil was on the rise they said, but they always found a way to qualify their views, to establish one criteria or another that Brazil would have to meet before it was finally seen as a "first-class power." While Asia specialists embraced the rise of China and India and quickly began to remake policy based on changing power relationships, Latin specialists clung to the past, to old formulations and prejudices.
In the eyes of these living museum pieces of Washington's small, inbred Latin American affairs community, Brazil might be the country of tomorrow, it might even be the country of later on today, but we would be sticking with the policies of yesterday until further notice.
Today, the Council on Foreign Relations (CFR) has issued a new task force report on U.S.-Brazil relations that goes a long way toward breaking with the past by recommending the U.S. move toward a new policy stance with regard to Brazil. The central point of the report is that Brazil must be liberated from the Latin policy barrio and viewed as one of the most important global powers of today and of the century ahead.
Thursday, March 17, 2011 - 2:03 PM

The Japanese nuclear crisis, though still unfolding, may, in a way, already be yesterday's news. For a peek at tomorrow's, review the testimony of General Keith Alexander, head of U.S. Cyber Command. Testifying before Congress this week and seeking support to pump up his agency budget, the general argued that all future conflicts would involve cyber warfare tactics and that the U.S. was ill-equipped to defend itself against them.
Alexander said, "We are finding that we do not have the capacity to do everything we need to accomplish. To put it bluntly, we are very thin, and a crisis would quickly stress our cyber forces. ... This is not a hypothetical danger."
The way to look at this story is to link in your mind the Stuxnet revelations about the reportedly U.S. and Israeli-led cyber attacks on the Iranian nuclear enrichment facility at Natanz and the calamities at the Fukushima power facilities over the past week. While seemingly unconnected, the stories together speak to the before and after of what cyber conflict may look like. Enemies will be able to target one another's critical infrastructure as was done by the U.S. and Israeli team (likely working with British and German assistance) targeting the Iranian program and burrowing into their operating systems, they will seek to produce malfunctions that bring economies to their knees, put societies in the dark, or undercut national defenses.
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EXPLORE:EAST ASIA, NORTH AMERICA, ENERGY, FINANCE, GLOBALIZATION, INTERNET, JAPAN, MILITARY, SCIENCE & TECHNOLOGY
Tuesday, March 8, 2011 - 10:50 AM

It says something about Gary Locke's tenure as secretary of commerce that it is clearly a promotion for him to have been named to an ambassadorial post and sent to the other side of the world. It also says something about the post he is being offered -- ambassador to China -- by far the U.S. government's most important diplomatic posting in the world. Locke is an excellent choice for the new job and will undoubtedly excel in the role. In fact, there is really only one thing the Obama administration can do to make this smart appointment even better: It can not appoint a replacement for Locke.
Locke is a soft-spoken, detail-oriented, thoughtful, lawyerly fellow, which is not surprising given that in addition to being the former governor of Washington, he is also a lawyer. As a Chinese-speaking, trade-smart Chinese-American from a state with important export ties to China and having the stature that comes of cabinet and state governor posts, he's an ideal choice for the Beijing job.
His tenure as commerce secretary was muted because his particular skill set was not particularly suited to being a cheerleader for U.S. industry. He has no bombast in him, and for a politician he is singularly devoid of the hail-fellow-well-met gene. But beyond his personal traits, one of the reasons he struggled as commerce secretary was that the Commerce Department itself is such a mishmash of agencies with competing missions that the reality is that the vast majority of people who have led the agency have disappeared without a trace into its bowels.
Frankly, it should be considered a destination of choice by the folks over at the federal witness protection program.
President Obama and those closest to him -- including one of the few people who have ever successfully led the Commerce Department and then gone on to bigger and better things, White House Chief of Staff Bill Daley -- recognize this and have very wisely and none too soon undertaken a review of whether or not to restructure the agency along with the other white elephants, redundancies, and lost causes of the federal bureaucracy. The effort is being led by former business exec Jeff Zients, deputy director of the Office of Management and Budget, and as a former management consultant, CEO, and very successful entrepreneur, an ideal choice for the mission.
While it is reported that Locke himself only heard of the president's intention to announce the initiative to rationalize the structure of departments including his own a few minutes before the announcement was made, the idea is a sound one that should be well-received by both parties in the current atmosphere of frugality -- or at least expressed frugality -- in Washington.
What Obama should do is appoint an acting commerce secretary to serve as a place holder. (Perhaps appointing Zients into a kind of caretaker role to oversee the change would be a good step. An analogy is the role Elizabeth Warren is currently playing re: the Consumer Financial Protection Bureau.) Putting someone new and "permanent" in the existing commerce job would a.) Immediately create an opponent to any meaningful restructuring and b.) Be quite tough if they knew there was a serious effort to dismantle the agency afoot. Then, the president and his team should take the steps that have been obviously called for by many of us who have worked at the Commerce Department and on the economic side of the U.S. government for years. They would include:
KAREN BLEIER/AFP/Getty Images
Monday, February 28, 2011 - 2:28 PM

Recently, there have been perturbations in the wonkosphere. While the trembles are so slight that they wouldn't show up on the Richter Scale of a real human being, they have generated blog headlines and conversations at conferences full of people with advanced degrees and too much time on their hands. The stir has been caused by the assertion that we now live in something that big idea branding experts are trying to characterize as a "G-Zero" world.
In the words of one of the term's proponents, Ian Bremmer, the term refers to the assertion that we now live in a world in which "no country or bloc of countries has the political and economic leverage to drive an international agenda." Bremmer, and another supporter of the idea, NYU's Nouriel Roubini, have been explaining the notion and have done so compellingly enough that after it came up at this year's World Economic Forum gabfest in the Swiss Alps, the New York Times called it the event's "buzziest buzzword."
Buzz words are important in the wonkosphere because people are very busy going from conference to conference, periodically stopping to Tweet about who they bumped into and how they influenced them, and they have very little time to really think about anything. So if you can take an idea, reduce it to a couple of key, easily digestible, tasty ingredients, and wrap into a piece of shiny gold foil you have ... a Reese's Pieces Mini. Well, actually, you have something just like it, but not quite as tasty; you have a candidate for buzz-term of the moment.
Sometimes, it must be said, that even the fizziest of the buzziest actually contain a core idea of real value. Take a stroll down foreign policy nerd memory lane and savor past hits like "illiberal democracy" or "the world is flat" or "clash of civilizations" or "the end of history." Agree with the core notion of the idea or not (the delicious peanut butter center), you have to admit these ideas performed a useful purpose, captured a zeitgeist, and got the conversation going. Some, like "the end of history," were both widely misunderstood and, when understood correctly, wrong. But it was a compelling idea thoughtfully arrived at.
This G-Zero thing, not so much. The idea, of course, plays on all the discussion that has swirled around recent international summits as the attendance lists changed and the labels were altered accordingly. We went from the G-8 to the G-20 and then, keen observers, eager to build their own bit of buzz in the pundit-hive, pondered whether we weren't really seeing a case of a G-18 wrapped around a G-2 (the United States and China.) The Chinese didn't much like this and wished pundits would leave their g-darned labels off of them.
Bremmer and Roubini and company make the case that the United States and the Europeans and the Japanese are too deeply under economic water, and the emerging powers like China and India are too busy developing all the time for anybody to be able to step up and drive the international agenda. And while I know and like Ian and think both he and Roubini are smart guys, this is as an idea that looks like what it is: not much built around a big zero.
John Moore/Getty Images
Thursday, February 24, 2011 - 1:33 PM

This morning's New York Times contains an article quoting various "regional experts" as saying that the current upheaval in the region is playing into the hands of Iran. This is a flawed analysis on several levels.
First, we are so early in this process that it is premature to say who will benefit from or be damaged by it. It is still too early to know how many states will be affected or what the effects of the revolutions will be. Several scenarios are plausible. In one, prolonged upheaval, Iran may benefit as the alliance that existed against it is compromised. In another, a shift to democracy, Iran may or may not benefit depending on the orientation of the government, but in all likelihood it would be damaged as more democratic governments are likely to be both more open to the rest of the world and an inspiration to the repressed people of Iran. In a third, a new generation of strongmen emerges, you could theoretically have pro-Iranian Islamic states take hold, but the reality is, given the long-term history of Iran within the region, old anti-Iranian alliances would recoalesce. This is especially true because new regimes would likely have large military components comprising experienced officers who have been in anti-Iranian stance throughout their careers.
Iran is certainly working to take advantage of the current uncertainty, using Hezbollah, Hamas, and related networks to promote both the instability it seeks and voices that it considers friendly. But Iran is not, and cannot ever be, "of" the Arab world. The cultural and historic barriers are too great. And therefore, the notion of it somehow creating an enduring network of states aligned to it is far-fetched.
This point about Iran however, does bring into focus a bigger point about the nature and future of the remarkable wave of revolutions currently sweeping across the region. Just as Iran is in the Middle East without being, in the minds of its Arab neighbors, a real part of their world, so too has the great problem of the Middle East at large been that for a variety of historical, political, and cultural reasons it has been in the world without having been of it.
The cultural disposition of the region has been to set itself apart, to create barriers to integration to the rest of the world, and in fact, to view integration with the rest of the world as a threat. This is a generalization, of course. There are hugely sophisticated global business leaders from the region, and there are cosmopolitan pockets within each of the countries of the Middle East. But for intentional and unintentional reasons -- education, religious views, political ideologies, social stratification, deliberate policy choices made by ruling regimes -- the benefits of integrating into the global economy have not been as available to people from the region as they have been to others in the Americas, Europe, or Asia.
The regional experts assessing the situation in the New York Times article are viewing what is happening purely in terms of old paradigms and politics. But one of the most important questions raised by the current situation is whether we are not seeing merely the latest round of political musical chairs, but rather we are seeing something deeper and more profound that could alter historical patterns. This is not, by the way, just an abstract question. It has very practical strategic implications for how the world outside the region handles the remainder of this period of change.
ATTA KENARE/AFP/Getty Images
EXPLORE:ARAB WORLD, MIDDLE EAST, CULTURE, DIPLOMACY, ECONOMICS, FREEDOM, GLOBALIZATION, HISTORY, INTERNET, IRAN, LIBYA, SCIENCE & TECHNOLOGY
Wednesday, February 16, 2011 - 4:55 PM

While it is too early to assess the long-term outcomes of the uprising in Egypt, there are nonetheless a number of important conclusions to which we can reasonably come.
First, something profound has changed. It did not change because of the uprising in Tahrir Square. It changed and the uprising was the result; the power has shifted in the region. We have passed a generational and technological tipping point. While the dinosaurs cling to the levers of power in virtually every country in the greater Middle East, the under 30 majority is now the great force to be reckoned with. While the establishment has done almost everything conceivable to keep them down from denying them education to curtailing the spread of information technologies to gutting the economies, nonetheless, new information sources and technologies and ways of connecting and collaborating seeped in to these societies through every one of the cracks spreading across the Ozymandian edifices of the elite.
These changes are irreversible. They are seen in the cell phones that even the poorest carry with them, in the broadcasts of Al Jazeera, in the burgeoning Twitter feeds, the apps young Arabs create to provide work-arounds every time a government tries to curtail Internet access, and even in the technological use of some of the region's worst players.
These changes have remade the social and political fabric of the region. What they have yet to do is what they have done everywhere else in the world and that is to fuel economic change.
That is the second inescapable conclusion we need to consider. The great challenges before this under-30 majority are economic, they are about opportunity. They are not about Israel or battles between Shiites and Sunnis or tribal divisions. Those problems still fester, but the unifying challenge for this generation is even more basic: They need jobs. They crave opportunity. And the failure of their leaders to provide them with these basic sources of sustenance and dignity is what has fueled the revolutions of 2011.
A corollary to this conclusion is that we in the United States have been sending the wrong people with the wrong approaches to solve the wrong problems in this region for decades. The problems of this region will not be solved by negotiators or generals. They require investors and entrepreneurs and educators. To the extent that we can contribute, we must do so by supporting the creation of economic opportunity. It is a massive undertaking but it is the only true peacemaker.
A third conclusion is related to the second, however. The role for the U.S. government in all this is very, very limited. We would do well to redirect what aid we provide to address this core challenge of creating jobs for the under-30s. We would do well to put our best economic minds in charge, perhaps even appointing a special economic envoy of real stature. But the only people who can ultimately solve this problem are in the Middle East. In fact, in the hierarchy of those who can help, if the people of the Middle East are first and by far foremost, it is the people of Europe, not the United States who must be second. They are the natural economic neighbors of the region and they must answer the question whether they want those under-30s employed in the Middle East or seeking employment in Europe. After the Europeans, it may even be the Chinese or Indians and others dependent on oil in the region and closer to its problems who should take more prominent roles in helping to solve the problem than the United States, which is a lightening rod and has problems of our own at home.
A fourth conclusion is that the hardest part is clearly still ahead of us. Egypt must make the transition to democracy and that means the military must really step aside after six months. Friends of mine who have met with them believe they understand the implications of the political earthquake that has taken place during the past month and that they will do so. But there are dinosaurs among their leaders so it is by no means a sure thing. Even beyond establishing a democracy is actually keeping one, and beyond that is addressing successfully the economic challenges alluded to above. Further, there are the problems of all the other countries of the region. They will be difficult to handle but we in the United States need to be confident enough in our core beliefs to let them work them out among themselves. There will be fights and setbacks and people we don't like will periodically gain the upper hand. But give me a duel between two guys armed with the Internet, Facebook, and Twitter feeds and let one offer the people the 11th Century and another offer the 21th and I know who I will bet on.
Finally, my fifth conclusion is that of all the big challenges ahead for U.S. foreign policy associated with this period of upheaval, the greatest by far lies with Israel and the Palestinians. Personally, I am not sure why the Palestinians have not yet unilaterally declared independence. The world would surely support them. But imagine what would happen if, perhaps on the road to such a declaration perhaps following it, a hundred thousand Palestinians took to the streets peacefully demanding real self-determination. With memories of Tahrir Square fresh in the minds of the world, how could the Israelis respond as they might have in the past? On what side of history would they appear to be as President Obama might put it? And in that vein, on what side of that history would President Obama and the United States want to be?
Until now, the fact that Israel was the region's only democracy was its "get out of jail free" card. It was used to excuse ... or attempt to excuse ... a multitude of sins. For this reason, no Arab military offensive could be as effective in undermining Israel's strategic advantages as real democracy taking root elsewhere in the region. The Netanyahu administration would be flummoxed if people power came to the West Bank and Gaza. They would be cast involuntarily with the dinosaurs. They would have no pages in their playbook indicating how to handle this. They would have very few good choices.
Actually, they would have only one. They would have to get out of the way. They would have to do what Mubarak did. They would have to step within the 1967 borders and let the Palestinians begin the job of building Palestine. And they would have to hope that the United States, Europe, and the rest of the world helped the Palestinians do it because once that happens, it will be of the utmost importance for Israel that its new neighbor produce real opportunity for its people ... because we have seen the alternative and it, for this generation who have both nothing and nothing to lose will not be contained by the tactics or the rhetoric of the past.
Chris Hondros/Getty Images
Wednesday, February 9, 2011 - 7:12 PM

While the attention of the media is largely devoted to looming storm clouds over the Middle East, it may well be that the next tempest to shake the world may in fact be expected in your teapot. Not to mention your shopping cart. And your gas tank.
In fact, while the uprisings in the Middle East may well be harbingers of historic change in the region, they are also a direct result of another set of factors that could conceivable eclipse them as the big story of the year for 2011: rising global commodity prices. In Tunisia, Egypt, Yemen, and Jordan among the most notable complaints of protestors has been the skyrocketing food prices.
As noted here, that fact is part of a vicious circle that is worrying markets. Bad global grain crops last year produce unrest in the Middle East this year. That in turn pushes up energy prices due to concerns about disruptions in energy flows. That in turn pushes up food prices further as something like 30 or 40 percent of the cost of most food products is related to energy costs associated with processing, packaging, and transportation.
But that's not the whole story. Look at the headlines coming out of China this week about a spreading and significant drought that is likely to further negatively impact food supplies and push up prices. Look at the other headlines about Chinese and Brazilian concerns about inflation. Or the headlines from today (and many recent days) about how inflation worries are depressing stock prices.
In fact, among the very few people who are not that worried about inflation is U.S. Fed Chairman Ben Bernanke who, testified Wednesday, said that while it may be a problem for the emerging world, "inflation is expected to persist (in the United States) below the level Federal Reserve policymakers" feel they have to worry about it. Of course, just because he doesn't worry about inflation here in the United States, doesn't mean Americans aren't going to feel the pinch if food and fuel prices go up. In a rough economic environment like this one for many Americans that squeeze will be particularly acute ... and included in that group are the politicians who will hear the howls of their constituents if prices get above the level average people feel is fair to them. Furthermore, if inflation in places like China, Brazil, or elsewhere in the emerging world causes them to tighten their monetary policies or it negatively impacts real growth, there could be meaningful negative knock-on consequences for the United States.
Mark Wilson/Getty Images
Monday, September 13, 2010 - 12:40 PM
We are not in Kansas anymore. More importantly, Kansas is not even where it once was.
Once upon a time and in the minds of most living Americans, Kansas was more than just a synonym or a metaphor for America's heartland, it was the actual geographic mid-point of the United States. You could debate whether the exact location deserving of this honor was closer to Lebanon or Grenola, but at the end of the day, all would agree that by virtue of the power and position of the United States, somewhere out there in the middle of nowhere was the center of the world.
No more. America may be the richest and most powerful nation on earth. But the world's economic center of gravity is shifting away from Kansas much more rapidly than anyone had any reason to expect it would even a decade or so ago. (I know this for a fact -- as a senior economic official in the Clinton Administration who helped put together and run the first U.S. inter-agency effort focused on the world's largest emerging markets, I remember how officials would smile patronizingly and roll their eyes, "Yes, China, India, Brazil, yes... important, but not in our lifetimes.")
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David Rothkopf is the CEO and Editor-at-Large of Foreign Policy. His new book, "Power, Inc.: The Epic Rivalry Between Big Business and Government and the Reckoning that Lies Ahead" is due out from Farrar, Straus & Giroux on March 1.
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