Editor’s note: This is the second of a two-part series. Part I examined the need for a global economic grand bargain. Part II examines what such an economic grand bargain might look like. BEIJING — The recent market correction and an increasingly bleak economic outlook have sharpened the case for a G-20 economic grand bargain. China has the capacity to take a lead in any such arrangement, using its $3 trillion foreign exchange reserves as bargaining chips for reshaping the global economy to better suit its interests. This could form the bedrock of broad-based and coordinated policy action to address […]

As the Libya operation enters what appears to be its final phase, the debate is only beginning as to what it portends for the future of U.S. policy and the international system as a whole. The course of events in Libya over the past months validates what I have termed the “just enough” doctrine. The Obama administration successfully resisted pressure — from Libyan rebels, European allies and domestic critics alike — to increase the U.S. role in order to achieve a faster outcome in Libya. If that doctrine takes on greater coherence, it could strengthen the arguments for limited, targeted […]

Ian Bremmer, the founder and head of Eurasia Group (for which I work as an analyst), has argued that we are living in a “G-Zero” world, or one in which there is no genuine great-power leadership. From the perspective of political science, it is hard to disagree, as anyone reading a newspaper these days can attest. Still, the historian in me says this situation cannot last for too long. My reasoning here has nothing to do with the global correlation of military force, since thanks to globalization’s emerging middle class, “butter” will inevitably emerge as the winner over “guns.” Instead, […]

It is amusing to hear U.S. politicians of all ideological stripes sounding like classic libertarians as they proclaim that, in these times of fiscal austerity, the United States should no longer act as the “world’s policeman” and that other countries should be contributing “their fair share” to global security. Nevertheless, the many studies undertaken by the fellows of the Cato Institute, a libertarian think tank, detailing how the United States can shift to becoming an “offshore balancer,” thereby reducing its footprint around the world, and how our European and East Asian allies can afford to do more in the service […]

The biggest defense news from the past week concerned the beginning of sea trials for China’s first aircraft carrier, Varyag. A former Soviet/Ukrainian hulk and the sister ship of the Russian aircraft carrier Admiral Kuznetsov, Varyag finally set sail after a long process of refurbishment. The ship, which may now go by the name Shi Lang, will likely only serve as a training carrier, but her embarkation on trials has generated great consternation among observers of the Asian naval scene. Officials from both the United States and Japan have asked China to explain its need for an aircraft carrier, as […]

Global Insights: Harmonizing U.S. Military Tools

In thinking about how to support the twin goals of deterrence and assurance, the Obama administration has been struggling with how best to integrate U.S. nuclear weapons, conventional forces and missile defenses into a coherent strategic posture. Now budgetary pressures are making the trade-offs involved in striking the necessary balance for such an initiative even sharper. These three military tools interact in complex ways. Nuclear forces are very powerful but for the most part unusable due to their destructiveness and the taboo associated with their use. Their main value is therefore to deter adversaries and reassure allies, thereby helping to […]

Expanded CIA Role in Drug War Could Impact Mexican Election

With the U.S. expanding the role of CIA operatives and possibly private security contractors in Mexico’s drug war, there were reports this week that both countries are intent on circumventing Mexican laws that prohibit foreign military and police from operating inside the country. That Mexican President Felipe Calderón would openly embrace such a strategy is “not entirely surprising,” says Hal Brands, a historian at Duke University’s Sanford School of Public Policy, who notes that Mexican laws have long left the country in an awkward position when it comes to seeking security assistance from its northern neighbor. “The problem is that […]

This month’s debt-ceiling deal in Washington did little to quell the growing chorus of complaints around the world concerning America’s continued inability to live within its means. As those complaints invariably translate into corporate hedging, government self-defense strategies, credit rating drops — Standard and Poor’s is already in the bag — and market short-selling, the U.S. will most assuredly be made to feel the world’s mounting angst. This is both right and good, even as it is unlikely to change our path anytime soon: Until some internal political rebalancing occurs, America will invariably stick to its current cluster of painfully […]

Global Insider: The International Whaling Regime

Last month the U.S. threatened to impose sanctions against Iceland over its increased whaling activities. In an email interview, Peter Stoett, professor at Concordia University, discussed the politics of the international whaling regime. WPR: What are the main components of the international whaling regime, and what is its recent trajectory? Peter Stoett: The International Whaling Commission is the central global body, mandated to protect the whaling industry back in 1946. As the threat of extinction for several species of cetaceans rose and whales assumed a prominent space in public environmental consciousness, the IWC gradually swung towards an anti-whaling position, led […]

While Washington lawmakers congratulate themselves for avoiding a default on U.S. government obligations by raising the debt ceiling at the proverbial 11th hour, and the halls of the Capitol ring with praise that the “system worked as intended,” the view from outside the Beltway is not so sanguine. Certainly, the U.S. has not fallen into the morass that bedeviled 18th-century Poland, where with a single negative vote, any member of the assembly could force its dissolution — and the nullification of all legislation passed during that session. But the inability of the House of Representatives, the Senate and the president […]

The new debt ceiling deal between President Barack Obama and congressional Republicans included one major Republican concession: deep cuts in defense. The first set of defense budget cuts will amount to $350 billion over 10 years, but the deal includes a triggering mechanism that may tack on another $500 billion or so in the same time period. After a decade of war and more than a decade of sustained defense budget growth, this would represent a major shift in how the United States spends money on its military. In one sense, the decision to cut the defense budget makes a […]