Posted By David Rothkopf

I'm feeling curiously optimistic this morning which has me thinking it may be time for a CAT scan.

But I can actually see a way that things don't turn out so bad for the world.

First, to deal with the wolf closest to the sled, the Europeans will have to get their act in order. While they have thus far resisted this tooth and nail, I've heard some modestly encouraging rumblings from folks in the center of the negotiations. I want to point out the people with whom I have been speaking are not terribly optimistic themselves.  But they have offered a few crumbs of optimism for those of us who starved for it to scarf up.

First, in the words of one participant, European leaders have begun to work themselves through "the stages of grief associated with the crisis. First, even just a few weeks ago, they were purely in denial. Then, they entered a phase of denial in which it was clear they didn't even believe their own denials. Finally, last week we entered what might be called the ‘silly ideas' phase. And I am hopeful that means now we can get down to serious ideas."

What kind of ideas? Coming up with a program that takes a big chunk, perhaps $250 billion, of ESFS money and uses it as "equity" in funding a "firewall" that might then include a trillion or so capital available to the ECB in the event a big economy -- Italy or Spain -- stumbles. The plan would also need other elements such as Europe dealing with the structural issues associated with achieving something like monetary union and a recognition that no firewall can protect against all threats, especially those that could be associated with a fixation on austerity. Governments in Europe need to focus on getting growth restarted in places like Spain or Italy or bigger problems are inevitable. A final element of an effective plan would then include a significant recapitalization of the IMF which currently is not funded properly to deal with the new forms of risk and contagion which confront global markets.

At some point, banks will need to pay for the insurance policies they are expecting their governments to provide for them and whether that is done by a Tobin tax or some levy on non-deposit liabilities, grappling with that issue will be key to winning political support for further government involvement. And while countries and the IMF are at it, they ought to start to tally what sovereign exposures are to those "implied liabilities", their unwritten but real "obligation" to bail out the too big to fail institutions that are the nuclear charges set at the fault lines of the global economy.

That might in turn trigger a recognition that we will not be well and truly out of the woods of this crisis until we demand more transparency from these banks in terms of their liabilities (including counter-party risks in all manner of derivative transactions), regulations that enforce responsible provisions for dealing with those risks, and perhaps even globally agreed upon limits on the size and activities of such institutions.

But one step at a time. While the insiders with whom I spoke were only cautiously optimistic that progress might be made on putting together an interim solution-firewall for Europe -- or to be more accurate, while they did not outright dismiss the possibility -- they did emphasize that there was a long way to go, the Germans and the French were not playing nicely with each other, and there were deep cultural barriers to even having an intellectually honest conversation among the players about what ails them.

Still, since the focus is optimism, another encouraging sign were the glowing reports I have been hearing of the work that both new IMF Managing Director Christine Lagarde and U.S. Treasury Secretary Tim Geithner having been doing trying to hammer some sense into Europe's fiscal policy pygmies. No, not pygmies ... lemmings. Well, blundering action-phobic bureaucrats. (The problem, according to a friend, is "lots of leaders, not enough leadership.") By one account, about a third of the progress made during the last few weeks is due to circumstance, the growing direness of the situation, and the rest is due to the compelling arguments and forceful interventions of Lagarde and Geithner.

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New York at U.N. General Assembly meeting time operates with the kind of fevered intensity of a B movie with just about as much artificial drama. Layers upon layers of security guards and police and blockades and magnetometers stir up congestion and resentment and tension even before you enter the rooms full of government officials and the coteries of aides who follow them around like the cloud of dust at Pigpen's feet.

This year, of course, the central drama centered on the Palestinian bid for statehood and how, if at all, it could be managed so it was not a huge setback to Israel and a huge embarrassment to the United States. In the hotel in which I am staying, some of the principals in this drama were camped out buzzing about the latest rumors and fretting that events were spinning out of their control.

Thus far the drama is unresolved. President Obama gave a speech that managed to thread the needle offering a string of formulations designed to resonate well in Israeli ears, Palestinian ears, and, most importantly, in the ears of those (comparatively few) American voters who really cared enough to be following this particular episode of the Real Diplomats of New York City. The Palestinians appeared unmoved. The Israelis seemed pleased. Obama went on to his next event, at the Clinton Global Initiative.

Yet for all the familiarity of the arguments that both separate and bind together the Israelis and the Palestinians, there was something different about the feel of this particular minuet.

The Palestinians had clearly taken the initiative and set the statehood vote drama in motion. The Israelis, knocked back on their heels at first by the Palestinian move, regrouped and launched a political offensive in the United States (as well as around the world) to seek support. As the New York Times reported yesterday in its on target story "Netanyahu's Ties to G.O.P. Grow Stronger", the Israelis deftly reached out to key U.S. Republicans to win support and succeeded in generating enough that the President felt the pressure. If he did not line up with Israel in the clearest possible way, he might well lose a key part of his base in swing states like New York or Florida. At the same time, Europeans and major emerging powers all staked out their positions, most in direct or indirect opposition to the United States and the Israelis.

America, once the orchestrator of Middle East peace talks, always until now a prime driver behind the scenes, had assumed a new, much more reactive role. While the Obama team worked furiously behind the scenes, at every turn, it was responding to someone else's moves. It's own initiatives largely seemed to fall flat or come a little late.

The Obama Administration has been dramatically more engaged in the peace process than was the first term Bush Administration. So this may be part of a longer term trend. But in any event, America now seems to be a less influential actor than it has been for most of the modern history of the Arab-Israeli relationship.

That doesn't mean President Obama's remarks struck a wrong note or that U.S. diplomats don't have an important role to play in this process as it moves forward. It is just that amid the frenzy of this U.N. General Assembly week, one gets the impression that much of the most important work is getting done in rooms where the Americans are not present.

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One of the best reasons to recognize Palestine as an independent state is that it is an independent state. It has an independent government, its own institutions, a flag, a diplomatic corps, a people that seek and deserve independence and its own borders. Some of those borders are disputed but that's the case with many other states around the world.

This could be the reason that 126 U.N. member states already grant formal diplomatic recognition to the Palestinian state. Or to put it another way, this could be why fully three-quarters of the world's countries, according to an analysis by the Britains's Guardian newspaper, have concluded that Palestine has enough of the attributes of a state to be treated like one.

It is certainly no small obstacle that the Palestinian's immediate neighbor with whom it shares most of those disputed borders, Israel, does not yet recognize it as a state. Having said that, Israel itself has managed to function pretty well for the past six or so decades and still today only 105 countries acknowledge its statehood.  

This is not to minimize the very real and vitally important issues associated with reaching agreements between the Israelis and Palestinians to assure their successful co-existence. Direct negotiations are the only way to achieve this. It is however, to say that on the one hand, the Palestinian statehood debate in the United Nations is a superfluous sideshow and on the other that opposing statehood should not have been made such a big deal by the United States and Israel because they appear deeply out-of-touch with reality.

Wouldn't it have been much easier and smarter for the Israelis and the U.S. to embrace rather than fighting the obvious and to attempt to use that stance to advance negotiations rather than, as they have, take a strong stand against and indisputable reality and thus appear out of touch and on the wrong side of history while doing absolutely nothing to advance their own position or standing? Hasn't this been especially damaging for the Israelis since in so doing, they have given the Palestinians greater leverage in the equation?

For President Obama, the position with regard to Palestinian statehood also undercuts the efforts of his administration to date to move the United States away from the tired old formulations of the past that have clearly not worked. From his Cairo speech onward there was a sense he could find a different approach, reposition the United States in a way that was both still supportive of Israel and that recognized both the shifts on the ground in the Middle East and America's evolving interests in the region. But that sense is now gone or unrecognizably muddled by this stance on this fake issue.

Once again, the transformational Obama has been sold out by the political Obama. The fact that the President is unlikely to receive credit for his stance with Jewish voters might be seen as a bitter irony associated with the calculated shift. But it's not. It's a recognition that Jewish voters ... like healthcare reform advocates and those hoping for a break from Washington business as usual and those seeking true financial services reform and those seeking economic policies that can produce growth for all segments of American society ... are not suckers. They recognize when they are being played and pandered to and they distrust leaders whose most dependable trait is their willingness to shift their positions to suit their momentary political needs.

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Posted By David Rothkopf

As H.L. Mencken might have observed, no one ever went broke underestimating the abilities of the current Israeli or Palestinian leadership. But in the competition for the region's top cluelessness prize, one has to give Bibi Netanyahu the edge. After all, he has done the near impossible and edged out Mahmoud Abbas.

That's no small feat. Over the weekend a keen, very experienced observer of the region who has what would be generally viewed as a pronounced a pro-Palestinian tilt to his views called Abbas, "hopelessly incompetent, corrupt and obsessed primarily with where his next dollar is coming from." As I noted, this was a supporter. He was struggling with why Abbas might seek to take his statehood resolution to the U.N. Security Council where it will certainly be vetoed rather than bring it to the U.N. General Assembly where he is equal assured of a resounding victory when the votes are tallied. Yes, the latter path grants only observer status, but the former grants nothing at all except the chance to give a few more indignant speeches.

My friend speculated on a few reasons. Foolishness was one. A second, not much more charitable, was that he wanted center stage, a last hurrah, that might propel him into his post-political life well. If it did and that also helped the overall cause by getting some supporters on the record and highlighting divisions among the great powers, all the better.  It also might be that he recognizes that actually winning in the General Assembly might then shift the focus to the hollowness of his victory if it comes, as it will, for a nation without borders its most nearest neighbor will agree upon?

Whatever the outcome and whatever Abbas' motives however, he has done one thing that his Israeli counterpart and the wise foreign policy heads within The Quartet have been unable to do. He has taken the initiative and redefined the debate. He has attempted to break out of the box of negotiations that have been going nowhere for years and in so doing he has, for the moment anyway, got everyone else scurrying around reactively to his gambit.

He has been able to do this because he has recognized that global sentiment is now so squarely behind the idea of Palestinian state and so deeply frustrated not only with the stasis in the "peace process" but with the inflammatory and counter-productive Israeli settlements policy that old rules of conduct no longer applied. In the worst case, he will cast a bright light on how many major and emerging powers support a Palestinian state, how deep the support is around the world and, by doing so in a way that flies in the face of the desires of the traditional maestros of the peace process, that registers growing global frustration with their ineffectiveness.

This is at least, partially attuned to reality.

The same cannot be said of the Israeli response or the policies that got them to that place. This fact has been driven home in the past couple days by several developments. First and least, has been the steady drumbeat of states that have said they would support the Palestinians.

More importantly, you have the evidence that the strategic ground is shifting under Israel's feet and not to that country's advantage. Some of it can be found coming from Washington. Oh sure, the Obama Administration is actively trying to forestall the U.N. vote and demonstrate its support for Israel -- although interestingly, as the recent NY Congressional election suggested, they may not get much credit for whatever they do from voters who don't believe that Obama is, in his heart, truly supportive of Israel. But the big signal this week that Netanyahu ought to take into account actually comes from an unlikely place. It comes from the President's budget deficit cutting plan announced today.

In the plan, Obama produces big "savings" by winding down the U.S. wars in Iraq and Afghanistan. Admittedly, to my view, this is a bit like one's spouse producing "savings" by agreeing not to buy a new Bentley, but that's a subject for another day. The salient point is that this announcement is the latest sign of the end of America's "war on terror" and a foreign policy built around containing Islamic extremism. It means that for the second time in two decades, the bogeyman that made Israel strategically important to America is being relegated to dramatically less significant status.  It also means that America itself is planning on playing a role in the region that is dramatically reduced compared to that of recent years-one that is likely to be constrained further once deficit hawks have their way with aid budgets.

The impact of these shifts has been compounded by the corresponding rise of the promise of moderate, democratic, more secular states in the region. The recent statements by Turkish Foreign Minister Davutoglu concerning the desirability of developing a partnership between Turkey and Egypt should drive this message home to Israel and to all with interests in the region. While Davutoglu said "this will not be an axis against any other country", surely the Israelis were not comforted (nor, one hopes, were the Iranians). These two powers could, should such a relationship develop and their own internal evolution continue, become far more important to the U.S. in promoting its interests in the region than Israel ever could. That might well lead to some trade-offs and a shift in U.S. policies even were America not pulling back from the region (as it will, protests from the Administration and the Congress notwithstanding). But if we do pull back, these large regional powers will have more sway and suffice it to say, Israel's relationship with neither is improving.

So the situation on the ground includes the upheaval of the Arab Spring, the growing recognition that stability in the Middle East will turn more on the rise of moderates than it will on balance of power formulas of the past, the coming withdrawal and shifting priorities of the U.S., the rise of regional forces inclined to be more activist (like the Turks), the massive global support for the Palestinians...and Netanyahu and company are embracing policies as though it were June 1967.

They have managed to alienate their friends and make their otherwise feckless enemies look stronger. When simply accepting the Palestinians right to statehood would have given them the high ground and a better position to demand clear recognition of their own right to exist as a Jewish state in return, they have opted for an intemperate, unconstructive, anachronistic approach that has placed their country at greater risk than it has been at any time in roughly four decades. Inadvertently, Netanyahu is doing all he can to turn Abbas' swan song into his own.

Of course, that may not be such a bad thing when what the world and both countries need is new leaders who are more in tune with the new reality in the region and who see that the issue is less political than economic -- who both recognize that there is a deal to be done in which the world helps fund the transformation of Palestine into the economically thriving partner that Israel needs and should want at her borders and who are competent to bringing that deal to fruition. That's why the votes that will really matter re: Israeli and Palestinian peace will come not at the UN but at the ballot boxes in both countries...and hopefully they will come soon.

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While NATO bickers over strategy in Libya, BRIC leaders have gathered in Sanya, China, to demonstrate the growing strength of an alternative grouping that has among its principle selling points the fact that it is neither Western nor U.S.-dominated. To compare the world's most potent and enduring military alliance with a loose affiliation of emerging powers that are divided by perhaps more issues than unite them is clearly comparing apples and lychee nuts or guarana seeds, but the juxtaposition of the two events does offer yet another whiff of how the institutions and ideas of the 20th century are giving way to those of the 21st.

In Libya, the potent alliance that "won" the Cold War is coming apart at the seams fighting over strategy, tactics, and objectives in an optional, low-grade intervention in a largely irrelevant country. The U.S. secretary of state is forced to make public pleas for the bumptious commanders of the coalition to get their acts together, while on the ground the weakened forces of the isolated Muammar al-Qaddafi seem to be holding the megapower onslaught at bay. It is too poignant a reminder that intangibles like knowing what you're fighting for and political will are as important to any battle as the hardware being brought to bear by each side on the other.

In Sanya, Brazil, Russia, India, and the hosts welcomed South Africa into their little club, and if they achieved little else they underscored that they are taking coordination among their countries very seriously and seeking to deepen their ties. However, they did go further and offered a broad agenda including more hints that they will push for alternatives to the dollar-dominated global monetary system that we currently have.

Of course, the BRICs summit resonates with the Libya follies because the original four BRICs voted as a bloc to abstain during the Security Council vote on the imposition of the no-fly zone in Libya and within days of its initiation were publicly speaking out against it. That they were joined in the vote by Europe's most powerful country, Germany, also sent a message that the opposition to the initiative was meaningful and suggested that future votes in international institutions might see the BRICs (or the BRICS … if the final "S" is for South Africa) emerge at the core of a potent new alternative coalition to the traditional Western or developed powers.

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It would be too easy to say that Barack Obama has been a big loser so far since the onset of operations against the Qaddafi regime in Libya. It would also be wrong. The Obama administration has mishandled many elements of the crisis, but nothing they have done wrong thus far is irreversible and in terms of the simple objectives of imposing a no-fly zone and containing Qaddafi, the effort has been effective.

Further, whatever the criticism of Obama may be, his intentions have been both defensible and sound: The desire to forestall a humanitarian disaster and to do so through multilateral mechanisms were worthy and responsible goals. The challenge thus far has been in the execution ... although clearly, the risks going forward remain high and were this to result in a protracted U.S. involvement, unacceptable costs, a stalemate on the ground that left Qaddafi in power or the installation of a new government that ultimately proved to be as bad or worse for U.S. interests than its predecessors, then we would have to revisit our list.

Meanwhile, at this stage of the game, the five biggest losers associate with the whadeveryacallit (see Jay Carney's convolocution above) are:

5. Qaddafi

Much as the Libyan people were only the number five beneficiary of events so far in our winners list because the outcome is so uncertain, Qaddafi is only the number five loser of the major international military onslaught targeting his regime because it is not certain how this will all end up for him. With the UN's promise not to put boots on the ground, Qaddafi's tenure in office could be a long one and absent a "lucky" missile strike or a major increase in the effectiveness of opposition forces, a stalemate in which he retains considerable power over important chunks of Libya seems a strong possibility. Another alternative which might not be so bad is exile and the prospect of living with billions of dollars and all the Ukrainian nurses that can buy (which is a lot). So, while the most advanced military forces in the world are working against him, right now Muammar still is clinging to hope of a better tomorrow ... or any tomorrow ... which could prove to be a very unsatisfactory outcome from the political perspective of some of his leading international adversaries. That said, my money is on him not surviving as Libya's leader and in any event all his attempts at remaking his image over the past half decade have been undone and he has been permanently restored to his much deserved lunatic pariah status.

4. NATO

While the forces in the field have been performing admirably, the early days of this operation in terms of the alliance's political operations haven't been pretty. The world's most important, powerful, experienced, best-equipped military alliance has all the toys a middle-aged coalition could want but someone seems to have misplaced the instruction manual for smooth establishment of a command structure. From the minute they committed to this there have been arguments about who is in charge, about goals, about tactics, about basing, about burden-sharing, about virtually everything that alleged friends could possibly fight about. While the attacks NATO has carried out have apparently been effective, it is still unclear whether in the long-term they will be making the region any safer. Further, and more damagingly, they have revealed real problems in the ability of the alliance to work together on the kinds of conflicts with which they are most likely to be confronted in the near future. The apparent decision, a week into the crisis, to put a clear NATO command structure to be in charge helps matters considerably ... but the delays in getting there also underscore the kind of fault-line issues bedeviling the participating countries. This will all be papered over once this draws to a close but going forward, resistance of countries like Germany and Turkey to participation in undertakings like this could remain high for some time to come.

3. Arab League

Not that they had much credibility to begin with and not that many people expected much of them when it came to championing either democracy or even the basic human rights of the people of their region, but the Arab League at least during the early days of this operation did the near impossible and reduced the value of their role as a force of good within their region by their inability to follow up on their welcome promise of playing a key role in containing Qaddafi. Again, it's possible that they could undo the damage that has been done by stepping up their commitment of men and materiel to the mission -- and today's welcome announcement of substantial air support from the UAE buttresses the commitment of the Qataris in important ways -- but there are plenty in the coalition who acted in response to their promises who are absolutely furious at how so many members of the League have proven to be all keffiyeh and no camel on this issue. (A reference to the old Texas slam about posturing would-be ranchers who were "all hat and no cattle" for those of you wondering where I was going with that.)

2. Multilateralism

Viewing points 3 and 4 above, one can't help but worry that at the dawn of what could be a new era in international affairs, an essential idea has been set back by messy execution. In the wake of the Iraq debacle, America and the world both were motivated to move away from the ugly inequities of a one superpower world dominated by a we-can-do-it-all-ourselves USA.  The only alternative was better sharing of responsibilities for decision-making and problem-solving when it came to global problems. Barack Obama's willingness to embrace that new approach in the face of this first real 3 a.m. phone call type crisis of his presidency was welcome and the right thing to do but it could produce more damage than good if critics ultimately feel we did the right thing in the wrong way. If the message about multilateralism is that it is slow or messy or costly or politically damaging, it will not only become harder to rally allies in the future but in the U.S. unilateralists will have a case in point to use when next they want to drop the hammer on someone without benefit of the blessing of the international community.

1. Coherence

It is a good thing that William Safire, the New York Times redoubtable lover of words and their meanings is dead because if he weren't the White House press statements on this crisis would have killed him. We don't have to start with the good and capable Jay Carney's ill-considered coherence-limited characterization of the Libya conflict cited in the title of this post. We can turn to Ben Rhodes' clarity-challenged clarification of whether or not the U.S. was seeking regime change cited in an earlier post this week. Or we can go to Deputy National Security Advisor Denis McDonough's appearance on the PBS NewsHour which was described by the Washington Post's Jennifer Rubin as "He was asked questions. He answered them. And in the end you had no idea what he said." (For our international readers let me note that the Washington Post is not seen as a crazy right wing mouthpiece of the Republican Party.) Speaking however of crazy Republicans, they are not immune from the disease currently affecting Washington, either. Take Newt Gingrich who may have finally stuck a stake through the heart of his already slim chances of being a credible candidate for president when he offered two completely contradictory positions on intervention in Libya within the course of a couple of weeks. (Although his creative "patriotism excuses infidelity" stance -- also known as the flag-made-me-do-it excuse for cheating on your cancer-stricken wife -- is likely to ensure him a few male votes should he ever run.) It is almost as if the underlying foundation of the United States's current foreign policy is Newton's Third Law of Motion, paraphrased to suggest that for each guiding principle of our actions there is an equal and opposite principle to which we also adhere. We're leading and we're not. We're for regime change and we're against. We're for democracy in some places but not in others. For those seeking comfort, there are always the words of F. Scott Fitzgerald that "the test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function." For those worried by the trend outbreak of double-talk there is however the fact that Fitzgerald offered that observation in an essay called "The Crack-Up."

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Posted By David Rothkopf

It is hard to argue with the White House's reasoning behind working collaboratively with other nations in formulating the response to the Libya crisis. But, if the president is going to talk the multilateralist talk, the crucial question is going to be whether he does so effectively or not.

Obama's multilateralism is both ideological and pragmatic. Since his first days as a candidate, he has made it clear that he believes in the international rule of law, support for international institutions and a United States that is a committed partner rather than a unilateralist rogue within the international system. On the practical front, the U.S. public has neither the appetite nor the checkbook for a sequel to the series of with-us-or-against-us-themed American Sherriff road movies that recently have been playing to such mixed notices in Iraq, Afghanistan, and Pakistan. (In both instances while we have worked with coalitions, the U.S. role has been so great that other nations have really been extras, featured ensemble members at best.)

So the president has shown reasoned restraint in the wake of the outbreak of civil war in Libya. While the plight of citizens on the ground cries out for support, Obama and his team have felt that given both the complexities associated with widely bruited-about "solutions" like the imposition of a no-fly zone as well as other interventive measures, that whatever is done would be both more legitimate and more sustainable if undertaken through collective initiative.

That seems like a sound approach -- if intervention actually takes place. But the president and his team must not fall into the trap of thinking that embracing multilateralism excuses inaction when decisive measures are called for. The United States still has national interests -- whether they are in maintaining oil flows or preventing a humanitarian disaster or discouraging other thugocracies from brutalizing their own people -- and if it is the choice of this administration to advance those interests through collaboration with our NATO allies, via the United Nations or through some ad hoc coalition then the United States must find ways to actually do so and to do so in a timely, resolute and ultimately successful way.

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Posted By David Rothkopf

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.

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Posted By David Rothkopf

FIFA, not content to be tainted with just its current trifecta of on-going scandals -- including its cash for selection site votes scandal, "Ticketgate," and the ISL secret payments scandal -- inched closer to claiming the International Olympic Committee's crown as the most odious organizing body in international sports with its absolutely ridiculous choice today of Qatar over the United States to host the 2022 World Cup.

To compound the indefensible nature of the choice -- which in the end came down to petrodollars over the integrity of the sport and the interests of the fans (see Grant Wahl's "Inside Soccer" column at si.com) -- Russia, home to infrastructure that is as compromised by neglect as is its democracy, was chosen as site of the 2018 games. But at least Russia is a country of enough size to produce plenty of fans and it has a substantial soccer tradition. And it's not a desert location for a summer sporting event.

But Qatar? With something under 500,000 native born residents and just over 1.6 million people overall? No soccer tradition to speak of? No stadiums? 120 degree summer heat? All those unpleasant WikiLeaks stories? Located at a huge distance from most of the fans who might want to go?

Qatar over Australia, which did beautifully with the Olympics not so long ago? Qatar over the United States? With Bill Clinton and Morgan Freeman presenting on America's behalf? Do they understand who Morgan Freeman is? He's the guy God would get to play Himself in the biopic. He's Nelson Mandela. He's "Red" Redding from Shawshank for goodness sakes! He's a higher power than almost all mortals … but not higher than Sepp Blatter, the man with the ugliest name in sports, the Peron of the Pitch, the Mussolini of the Midfield, the Genghis Khan of the Goooooooooooooal!

Blatter let it be known that even if FIFA's technical evaluations of Qatar were not so great that he would like to see the games go to the country which has promised $50 billion and something like 9 new stadiums to host.

On Fox Sports Channel U.S. Soccer great Eric Wynalda asked, "Is this about soccer or about natural gas and oil? That's what has just won… they have just bought the World Cup."

Now some of you might ask, is this sour grapes? Is this just one more jingoistic American whining when the ball doesn't bounce our way?

Yes, yes it is. But, I wouldn't be complaining like this if there was one compelling (wholesome) rationale to explain the decision, one explanation that might suggest that the interests of soccer fans anywhere outside downtown Doha were taken into consideration.

But after all this the decision came from the same guys who argued that all those bad calls during this summer's Cup in South Africa were good for the game because they provoked conversations. Perhaps they're using the same rationale now. Because this is the worst FIFA call all year, and that's saying something.

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Posted By David Rothkopf

In a single, unexpected stroke President Barack Obama may have made his trip to India one of the most important of his presidency. By announcing his support for Indian permanent membership in the U.N. Security Council, Obama advanced a number of important goals.

First, he went a long way toward establishing a truly special relationship between the world's largest democracy and the United States. He embraced an issue that was important to Indians and, despite the certainty of Pakistan's public unhappiness with the decision and China's less public but nonetheless undoubted discomfort with it, he showed courage and vision in doing so.

Second, he found an issue that could measure up to or even trump the Bush administration's nuclear deal with India, thus ensuring a strong sense of momentum in a relationship that must move forward if both countries are to rise to the challenges of the new century.

Third, he underscored that his administration was serious about turning rhetoric about rethinking multilateralism, and working with a new set of powers, into action. While working within the framework of the G-20 was a step in that direction, that process actually began two years ago under the Bush administration. Adjustments made in the structure of international financial institutions were another positive step, but frankly were rather underwhelming, leaving behind serious representational imbalances.

Admittedly, what the president said in his speech to the Indian Parliament -- "in the years ahead, I look forward to a reformed U.N. Security Council that includes India as a permanent member" -- is rather open-ended. Especially when taken in the context of, for example, the extended period of unproductive support we have offered for Japanese permanent membership. Still, the president's statement implied that without permanent membership for India on the Security Council, the United Nations would not be seen as "effective, credible and legitimate." That is not just true (which it is) or an important point from India's perspective (which it also is), but it has major implications for other countries that have a legitimate claim to a similar role.

These other countries, as noted in a quick but insightful commentary from Stewart Patrick at the Council on Foreign Relations, would certainly also include Brazil and Germany. This would make the first tier of new candidates a class of what Patrick calls "four great democracies." Others will cavil and some will argue their merits. But what Obama has done with this statement is to move U.N. reform forward in an important way.

Now, of course, the real work needs to be done. The United States should, at the earliest possible moment, begin a renewed push for translating these words into actions. This will take diplomatic deftness and will require a willingness to begin a process of major-power horse-trading that could well have repercussions across the entire international system. Ideally, the United States will undertake this with a clear vision of how it would like to see the system remade, and with an express willingness to alter, and in some cases diminish, the role of the great post-World War II powers. This is not only the path to a more just and effective system, it is also the path to a system offering fairer burden sharing, a point which may make these changes easier to sell both in Washington and among a group of cash-strapped Atlantic allies. The view should be holistic and represent a sense of where existing institutions need to be strengthened or revamped, and where new institutions need to be cultivated. Virtually no major international institution should be exempted from such a reassessment. The United Nations, the International Monetary Fund, the World Bank, the regional development banks, the Non-Proliferation Treaty, the World Trade Organization, the World Health Organization, etc., must be reviewed during this process.

Though it is also true that everything cannot happen at once, Obama boldly and appropriately found an issue that could be a lynchpin of such a process of reform. What will make today's remarks a true watershed -- and thus make the current trip a true success -- is if they lead to tangible progress soon, a worthy goal for the remainder of Obama's term.

JIM WATSON/AFP/Getty Images

Posted By David Rothkopf

This is U.N. General Assembly (UNGA) meeting week. That's extremely important news if you live in mid-town Manhattan, because it means traffic is going to be miserable. As for real relevance to the rest of the world, well, not so much.

While the UNGA festivities feature lots of high-profile speeches by world leaders and a panoply of parties, conferences, and lunches designed to showcase those leaders -- and local caterers -- while providing full employment to anyone on the eastern seaboard who owns a black Lincoln Towncar, the entire affair is much more show than substance.

The U.N. meetings are like Davos but without the important people. (Actually, come to think of it, these days Davos is like Davos without the important people.) Maybe it's better to think of UNGA as New York's Fall Fashion Week for Fat People -- all the same posing, strutting and camera flashes going off as during the anorexic version last week, the difference being that the fashion industry may actually be doing something practical for humanity.

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Posted By David Rothkopf



So, I don't know about you but I am clearing my schedule for the end of September. If the Obama administration is to be believed it will be a turning point in modern history. 

First, at the time of the G8-plus-1-plus-5-plus-3-carry-the-1-times-everyone-minus-the-ones-we-don't-like meetings in Italy, it was announced that the U.S. was going to give Iran until the next gathering of the G-whiz kids to make a move in the general direction of progress on their little problem with all those centrifuges and all that enriched uranium. The next such meeting is in that renowned center of global statecraft, Pittsburgh, Pennsylvania, on September 24 and 25. (Last known outbreak of diplomacy: when charitable Steelers fans chose not to actually drink blood out of the skull of the most recent Cleveland fan to accidentally wander up to the wrong tailgate party in the parking lot of Heinz Field.)

That's a busy time of year for diplomacy as it is what with the UN General Assembly meeting scheduled for the last week of September not to mention the first annual meeting of the Clinton Global Initiative since Clinton also became the name of America's Secretary of State which is scheduled for the 22nd through the 25th. Both of these events are to take place in New York City.

Now, yet another event to which to look forward: during a press briefing following yesterday's meeting between Barack Obama and Egyptian Pharaoh...er...president -- whatever  they are calling their autocratic rulers these days -- Hosni Mubarak, Robert Gibbs responded to reports the U.S. will be presenting a more detailed plan for an Israeli-Palestinian peace process by saying he felt the time of the UN General Assembly meeting would be "an important opportunity to continue to make progress on comprehensive Middle Peace." (I'm sorry for the shot at President Mubarak. I can't help it. Yesterday at the Four Seasons I was having breakfast, minding my own business among the scores of giant, armed thugs with squiggly wires in their ears and when I got up to leave I was told we were in "lock down" and that we would not be allowed out of the restaurant until Mubarak and his entourage decamped and gave us the word we were free again. Imagine my surprise. I thought Passover had taken care of this problem.)

Could it really be that things are going so badly with regard to the health care debate that the White House feels compelled solve all the major intractable problems faced by the world at once just to provide a distraction? And on top of that the premiere (and quite possibly the last episode) of ABC's new show "Cougar Town" starring Courtney Cox is slated for September 23d. 

Peace. Disarmament. Another member of the "Friends" cast being wrestled to the ground by middle age. It's why I love back-to-school time more than any other season of the year.

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Some in the U.S. government are contemplating embracing a policy change that may result in the next president of the World Bank being the first not to be from the United States. As a consequence, Brazil's President Lula might be on the verge of scoring an important electoral victory this week...on the other side of the planet, in the world's biggest exercise in democracy, the Indian parliamentary elections. Ah, globalization. Maybe in the flat world all politics aren't exactly local.    

You see, Lula, is looking for his next big challenge. According to those close to him, he would like something on the international stage, not surprising given the enormous good will and international support he has built up during his two very successful terms of office in Brasilia. Given the former labor leader's interest in social issues, particularly the plight of the world's poorest, those close to Lula say his ideal job would be doing something that can meaningfully help the disadvantaged in Africa and other hard-hit regions. 

The perfect opportunity may be right here in Washington, D.C. Because a job like that of head of the World Bank ideally fills the bill for Lula. What's more, although this position has traditionally gone to a U.S. citizen, there is increasing pressure from emerging powers like the BRICs (Brazil, Russia, India and China) to change the allocation of top jobs at international financial institutions to better reflect  what is expected to be a growing role for them in the ownership structure of the IMF and the development banks as well as in the leadership of the international community more broadly. The World Bank presidency would be one of the most visible such posts and although it has been jealously guarded as a plum to be handed out by American presidents since the bank's founding, I am told there is now growing support within the U.S. Department of the Treasury to let the post go to someone who is not from the United States.

While push back could come from the U.S. Congress on this if they feel it is too much to be asked to provide more money to institutions like the World Bank and to simultaneously give up prerogatives, Lula even has some special advantages there. Because the leadership in the U.S. Congress at the moment is very sensitive to the views of the U.S. labor community and Lula, because of his background, has long-standing very close ties to AFL-CIO President John Sweeney among others. 

The Indian elections are relevant because one of the other emerging powers that will certainly be seeking visible evidence of their new position in the global pecking order is India. As it happens, they are also home to one of the men who would certainly be seen as one of the very best possible candidates for the bank job should it be opened to international candidates, Manmohan Singh. Singh is a globally respected economist, highly thought of throughout the international financial community since his days as India's Finance Minister. 

The problem for Singh's candidacy is that he already has a job. He is prime minister of India. And now it looks as those his ruling coalition may eke out a victory in the current round of Indian elections. If that's so, he may stay in his current job for another five years. And if he does, then Lula's shot at the World Bank job may improve. 

Certainly, it's early days yet. The change in U.S. and bank policy is far from official and faces hurdles being implemented.  And were it to change many candidates are sure to emerge. And of course, Lula has to formally express his interest in the job. But months ahead of such questions arising, the puzzle pieces are shifting and this week's developments raise, at least a little, the possibility that Bob Zoellick's successor at the World Bank may well be a very different kind of American than has occupied it in the past, a South American.  And in my view that, or a selection in the same spirit of including new powers at the top of these institutions, would be a very positive step forward. 

JOEDSON ALVES/AFP/Getty Images

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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