Today’s landmark deal between six world powers and Iran, which would limit Iran’s nuclear program in exchange for lifting economic sanctions, was an important step toward stopping Iran from building a nuclear bomb.

However, the key challenge for the international community will be making sure Iran keeps its part of the bargain, according to Stanford experts.

“Both sides have made a series of compromises that will help Iran’s economy in exchange for constraining its nuclear capabilities – and that’s a deal worth making, in my view,” said Scott Sagan, the Caroline S.G. Munro professor of political science and senior fellow at the Center for International Security and Cooperation.

“Iran will still have a technical capability to develop nuclear weapons, given the technology and materials that they have, but under this deal it will both take them a much longer period of time and would require them to take actions that would be easily discerned by the International Atomic Energy Agency, so it constrains their break-out capabilities in important ways.”

[[{"fid":"219719","view_mode":"crop_870xauto","fields":{"format":"crop_870xauto","field_file_image_description[und][0][value]":"","field_file_image_alt_text[und][0][value]":"","field_file_image_title_text[und][0][value]":"Final plenary session at the United Nations Office in Vienna, Austria. Photo credit: U.S. State Department","field_credit[und][0][value]":"","field_caption[und][0][value]":"","field_related_image_aspect[und][0][value]":"","thumbnails":"crop_870xauto","pp_lightbox":false,"pp_description":false},"type":"media","attributes":{"title":"Final plenary session at the United Nations Office in Vienna, Austria. Photo credit: U.S. State Department","width":"870","style":"width: 400px; height: 266px; float: right; margin-left: 15px","class":"media-element file-crop-870xauto"}}]]The U.S.-led negotiations also included fellow United Nations Security Council members Britain, China, France, and Russia, as well as Germany – a group known collectively as as the "P5+1."

Sig Hecker, former Los Alamos National Laboratory director and senior fellow at Stanford’s Center for International Security and Cooperation, said the nuclear deal was “hard-won and is better than any other reasonably achievable alternative.”

“Iran agreed to considerably greater restrictions on its program than what I thought was possible before the Joint Plan of Action was signed in November 2013,” said Hecker.

Abbas Milani, director of Iranian studies at Stanford and an affiliate at the Center for Democracy Development and the Rule of Law, called it the “least bad deal” for both Iran and the international community.

“Nobody gets everything they want,” Milani said. “Every side gets some of what they want.”

Under the deal, Iran would be allowed to continue to enrich uranium for peaceful purposes in its energy and health industries.

But it would have to reduce the number of its centrifuges from 19,000 to 6,000, and cut its stockpile of low enriched uranium down from more than 20 thousand pounds to about 660 pounds.

“Reducing that stockpile actually lengthens the breakout time more than any other measure,” said Hecker.

These limits were designed to increase the “breakout time” it would take for Iran to produce enough fissile material to make a nuclear weapon from the current two to three months, to one year over a period of the next 10 years.

The agreement still faces a series of political hurdles before it gets implemented, and will face tough scrutiny from a Republican-controlled U.S. Congress, as well as the parliaments of European countries that were parties to the talks.

“I think it’s going to be hard for the U.S. Congress and [European] parliaments to kill the deal and be perceived as the ones who would rather have a war than give diplomacy a chance,” said Thomas Fingar, distinguished fellow at the Freeman Spogli Institute for International Studies.

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“The key is going to be the effectiveness of the verification procedures and IAEA access,” Fingar said.

“There’s an element of trust, but a far more important part is the rigorous verification protocols.”

As soon as the IAEA confirms that Iran is abiding by the terms of the agreement, economic sanctions can be lifted.

Sagan warned that the international community should not be surprised if Iran pushed the limits of the agreement, and should be ready to reimpose economic sanctions if Iran violated the deal.

“We should anticipate that Iranian opponents to the agreement will try to stretch it and do things that are potential violations and that we have to call them on that, and not treat every problem that we see as unexpected,” said Sagan.

“We should anticipate such problems and be ready, if necessary, to reimpose sanctions. Having the ability to reimpose sanctions is the best way to deter the Iranians from engaging in such violations.”

But Hecker said the international community should focus on incentivizing Iran.

“The best hope is to make the civilian nuclear path so appealing – and then successful – that Tehran will not want to risk the political and economic consequences of that success by pursuing the bomb option,” he said.

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Iran faced the threat of military action if it continued to press forward with its nuclear program.

While Russia and China had both signaled that they were likely to abandon the sanctions regime if talks fell apart.

One of the key challenges to reaching an agreement was “finding a language that would allow both parties to declare victory”, according to Milani.

“Iran has clearly made some very substantive concessions, but Iran has also been allowed to keep enough of its infrastructure so that it can declare at least partial victory for the domestic political audience."

Now the scramble is on in Tehran to claim credit for the deal.

Reformists, led by current Iranian President Hassan Rouhani and former president Akbar Hashemi Rafsanjani, hope it will strengthen their hand as they head into the next election.

On the other side of the political spectrum, conservatives believe it could give them the edge in the battle to succeed Ayatollah Ali Khamenei as Iran’s Supreme Leader.

“They understand that whoever gets the credit for this will be in a much better position to determine the future leadership and future direction of Iran’s foreign policy,” said Milani.

It’s too early to tell what impact the agreement might have on Iran’s foreign policy, which is often at odds with U.S. interests in hot spots like Iraq, Syria, Yemen and Afghanistan. But Sagan said today’s deal was an important step in making sure that future conflicts with Iran don’t go nuclear.

“Hopefully those disagreements will be played out without the shadow of nuclear weapons hanging over the future, and that’s a good thing.”

The United States and European countries can take steps to avoid making the same economic mistakes that Japan committed during the latter's "lost decade," a Stanford economist wrote in a new paper.

The study, published in the IMF Economic Review, describes the reasons Japan was not able to pull out of its long recession in the 1990s, offering some lessons for U.S. and European leaders in the wake of the 2007-09 meltdown.

In particular, the delay in bank recapitalization and the lack of structural reforms in the economic sphere kept Japan from realizing a full recovery, wrote Takeo Hoshi, the Henri and Tomoye Takahashi senior fellow at Stanford's Freeman Spogli Institute for International Studies.

"Bank recapitalization" refers to a governmental reorganization of failing banks, often involving the use of public money to keep them solvent. "Structural reforms" describes how a government might overhaul its economic structures to increase business competition – such as deregulation to cut costs for firms.

The shortcomings in these two policy areas "retarded Japan's recovery from the crisis and were responsible for its stagnant post-crisis growth," said Hoshi, whose co-author was Anil K. Kashyap, an economics professor at the University of Chicago Booth School of Business.

Risky bank lending

Japan's "lost decade" originally referred to the 1990s, though the country has still not regained the economic power it enjoyed in the 1970s and 1980s. Some say Japan has actually experienced two lost decades if the 2000s are counted as well.

Faced with a huge financial crisis at the dawn of its lost decade, Japan had to navigate challenges that other advanced economies had not confronted since the Great Depression, Hoshi and Kashyap wrote.

However, government leaders made mistakes, Hoshi said. One was failure to rehabilitate the banks and another was to misunderstand the nature of the problems afflicting the Japanese economy. For example, much like the United States in 2007-09, the Japanese banks had made many dubious loans to risky customers.

"Instead of recognizing that major structural adjustments were needed, much of the policy response was calibrated under the assumption that Japan faced a simple cyclical problem that could be addressed with indiscriminate fiscal stimulus," wrote Hoshi, the director of the Japan Program at the Walter H. Shorenstein Asia-Pacific Research Center.

For example, on the demand side, monetary policy was not as expansionary as it could have been, he said. Deflation persisted for a long time. And fiscal stimulus packages – such as tax cuts – were inconsistent. Meanwhile, much of Japan's fiscal spending took the form of public works projects that had low productivity.

As for structural reforms, the Japanese government lacked a sense of urgency. For example, even in the reform-minded administration of former Prime Minister Junichiro Koizumi, only eight of the proposed 35 reform initiatives would have directly boosted growth. Of the others, 16 might have indirectly supported growth and 11 would have had no effect on growth, Hoshi said.

Drastic change needed

Unfortunately, some European nations seem to be following Japan's lead, Hoshi said.

"In France, Italy and Spain, bank recapitalization has been delayed and the structural reforms have been slow. Without drastic changes, they are likely to follow Japan's path to long economic stagnation," Hoshi and Kashyap wrote.

The problems that held back Japan seem to be less serious in the U.S., Hoshi said: "Employment protection is low in the United States and the labor market shows high mobility. The regulatory advantage for incumbent firms is smaller than in Europe or Japan and starting new business is relatively easy."

As the researchers noted, the United States and Germany are in a bit better economic shape, partly due to the fact that they did undertake structural reforms sooner rather than later. The U.S. was able to recapitalize its banks more quickly, for example.

Still, five years after the failure of the Lehman Brothers investment bank left the world's financial markets in chaos, the U.S. and Europe are not yet back to what had looked normal before the crisis, according to the research. For instance, employment levels have not reached the levels seen before the 2007-09 crash.

"The U.S. recovery has been tepid despite a number of extraordinary macroeconomic policies (at least in the traditional sense). This suggests that the U.S. economy also has problems, but they are just different from those in Japan and in Europe," Hoshi said.

In the years leading up to the financial crisis, the researchers wrote, U.S. growth was fueled by a consumption boom from rapid housing price increases and rising debt levels.

"In a broad sense, the U.S. economy before the crisis was similar to the Japanese or Spanish economies," noted Hoshi, adding that in Japan, the speculative investment boom in the late 1980s masked structural problems.

Clifton Parker is a writer for the Stanford News Service.

The United Nations has thus far fulfilled its charter to prevent a third world war, but with 60 million refugees, continued bloodshed with unresolved civil conflicts and terrorism spreading like cancer, the world's leading peacekeeping organization must spearhead global action, U.N. Secretary-General Ban Ki-moon said Friday at Stanford on the 70th anniversary of the international organization.

Ban, the U.N.'s eighth secretary-general, did not rest on any laurels during his speech at a public event sponsored by the Walter H. Shorenstein Asia-Pacific Research Center (APARC). "I humbly accept criticism that the U.N. is not doing enough," he said. 

However, the situation could have been worse if not for the United Nations, he continued. "Without peacekeepers, or without the U.N.'s continued humanitarian assistance and advocacy of human rights, I'm afraid to tell you that this world would have been poorer, more dangerous and even bloodier without the United Nations."

Ban's visit to Stanford – his second to the university in less than three years – was part of a trip to the Bay Area to commemorate the signing of the U.N. charter. In 1945, representatives from 50 nations gathered in San Francisco to create the United Nations – an international organization aimed at saving future generations from the "scourge of war."

Today, the United Nations has grown to 193 member nations. Its challenges – from climate change and poverty to civil wars and terrorism – have never been greater, Ban said.

"This is a critical year; 2015 is a year of global action," he said. "The U.N. cannot do it alone. We need strong solidarity among government, business communities and civil societies, from each and every citizen."

The fact that so many young people around the globe are drawn to violent narratives is worrisome, Ban said. "Violent terrorism is spreading like cancer around the world."

The rise in terrorist activities stems from "a failure of leadership," he said. That's why the United Nations needs to develop a comprehensive plan of action to address extremism, he maintained.

The U.N.'s 70th anniversary coincidentally fell on a momentous day of tragedy and celebration around the world. Dozens were killed when terrorists launched horrific attacks across three continents – in France, Tunisia and Kuwait – fueling anger, sadness and fear of more violence.

But in the United States, celebrations rang out in response to a landmark U.S. Supreme Court ruling that legalizes same-sex marriages nationwide.

Ban, who has long advocated for equality and last year pushed the United Nations to recognize same-sex marriages of its staff, drew a round of applause when he heralded the court ruling as "a great step forward for human rights."

The June 26 event was co-sponsored by Shorenstein APARC and the Freeman Spogli Institute for International Studies at Stanford University, with promotional co-sponsors Asia Society, Asia Foundation and the World Affairs Council of Northern California. 

May Wong is a freelance writer for the Stanford News Service.

Coverage and related multimedia links:

Remarks at Stanford University by Ban Ki-moon (U.N. News Centre, 6/26/15)

Photos of Ban Ki-moon at Stanford University (U.N. Photo, 6/26/15)

At Stanford University, Ban says U.N. ready to build a better future for all (U.N. News Centre, 6/27/2015)

U.N. Secretary-General Ban Ki-moon welcomes growing engagement of India, China (NDTV, 6/27/2015)

U.N. Secretary-General Ban Ki-moon speaks at Stanford, celebrates U.N.'s 70th anniversary (Stanford Daily, 6/29/15)

Hoover archival photographs featured at lecture delivered by U.N. Secretary-General Ban Ki-moon (Hoover Institution, 6/29/2015)

Ban Ki-moon, the eighth secretary-general of the United Nations, will deliver a public speech at Stanford University on Friday, June 26.

Ban’s visit will highlight the 70^th anniversary of the founding of the U.N., part of a larger trip to the Bay Area to commemorate the San Francisco Conference, where the charter establishing the U.N. was signed in 1945. After his speech, he will participate in a question and answer session with Ambassador Kathleen Stephens, the U.S. ambassador to the Republic of Korea (2008-11).

The Stanford event will take place at 3 p.m. RSVP is required by June 24; seating is first come, first served. Media must pre-register by 9 a.m. on June 25.

It is Ban’s second visit to Stanford in under three years. In Jan. 2013, he delivered a speech to mark the occasion of the Walter H. Shorenstein Asia-Pacific Research Center (APARC)’s thirtieth anniversary.

“I believe we face a unique opportunity,” Ban said in Dinkelspiel Auditorium. “Because the changes we face are so profound – the decisions we make will have a deeper and more lasting impact than perhaps any other set of decisions in recent decades.”

Calling on students to be ‘global citizens,’ he spoke about the ongoing crisis in Syria, the mandate to act on climate change, and the need for a sustainable peace worldwide.

“Growing up, the U.N. was a beacon of hope for me and my country,” he said. “I urge you to harness that same spirit and make a difference.”

Ban was born in the Republic of Korea in 1944. As a youth, more than fifty years ago, Ban visited California during his first trip to the United States with a Red Cross, saying “my trip here opened my eyes to the world.” He has since held a 37-year career in public service in the Ministry of Foreign Affairs, including the role of minister of foreign affairs and trade, foreign policy advisor and chief national security advisor to the president.

“It’s truly our pleasure to host Secretary-General Ban Ki-moon on the seventieth anniversary of the U.N.,” said Gi-Wook Shin, a Stanford professor and director of Shorenstein APARC. “The U.N. has had a profound impact on the shaping of global order in the postwar era. And Ban’s leadership has steered the organization toward the world’s most pressing aims.”

Ban is reaching the end of his term as secretary-general. He assumed office in Jan. 2007 and was reelected for a second term in June 2011. Over his tenure, Ban has led a major push toward peace and non-proliferation activities, youth, women’s rights and the environment. He has urged leaders of China, Japan and South Korea to work harder on reconciliation over the wartime past to ensure long-term stability in the region.

The June 26 event, which can be followed at #UNatStanford, is co-sponsored by Shorenstein APARC and the Freeman Spogli Institute for International Studies at Stanford University; with promotional co-sponsors Asia Society, Asia Foundation and the World Affairs Council of Northern California.

CONTACT: Event inquires may be directed to Debbie Warren, dawarren@stanford.edu or (650) 723-8387; Media inquires may be directed to Lisa Griswold, lisagris@stanford.edu or (650) 736-0656