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Pre-emption used to be the watchword of Bush foreign policy. The world's sole superpower would not hesitate to wield force against an imminent threat to its security. The old doctrines of the Cold War era -- of containment and deterrence of a potential enemy -- were disdained as weakness.

Now, facing the most serious national security challenge since the end of the Cold War -- the nuclear weapons programs of Iran and North Korea -- the administration is reaching back to those oldies but goodies.

The determination of Iran and North Korea to develop nuclear weapons has so far been largely unchecked by this administration. The North Koreans, since breaking out of the freeze agreed to during the Clinton administration, have been steadily producing plutonium, and presumably warheads. The Iranians, after the election of hard-line President Mahmoud Ahmadinejad, reversed their deal to suspend uranium-enrichment activities, the crucial step toward nuclear weapons.

Diplomatic negotiations in both cases have produced little movement. But a military strike on their nuclear facilities is almost inconceivable. The danger of potentially horrendous retaliation and the sapping of American will and resources in Iraq have almost killed that option.

"As shaky as a policy of containment is, it is certainly preferable to confrontation, 'rollback,' or 'regime change' through military force,'' wrote conservative national security expert Thomas Donnelly in a recent analysis. "Containment is, in fact, regime change by tolerable means, and the solution to the problems of Iran and North Korea lie in an indirect approach.''

While we try to contain a nuclear Iran and North Korea, suggested Donnelly, we should surround Iran with movements for democratic change in Iraq and Afghanistan. North Korea, he believes, will be changed through Chinese influence.

Donnelly cautions that there may be circumstances when containment proves even more risky than intervention -- say if Iran tries to slip nuclear materials to Islamist terrorists. Iran is less stable than the Soviet Union, though it is worth remembering that the first 15 years of the Cold War brought us to the brink of nuclear war once and close to it several times.

For the administration, this is a stealth policy shift. That is no surprise. It flows directly from the mess in Iraq, a mistake the administration can never really acknowledge.

For those who once touted American global domination, it is still hard to face the reality that containment is impossible without allies and partners. By ourselves, we cannot press those regimes by cutting off their access to investment and advanced technology.

The administration is rightly moving to take Iran to the United Nations Security Council to seek a mandate to enforce the demands of the International Atomic Energy Agency. North Korea is undoubtedly watching this carefully.

China and Russia, who have veto power in the Security Council, are reluctantly going along. But they still resist any move to impose economic sanctions against Iran. Nor are the Europeans, Japanese and others who depend on oil and gas from Iran eager to halt their investment and trade.

Similarly in the case of North Korea, the Chinese and South Koreans are not prepared to cut the flow of economic aid and investment into the otherwise isolated North Korean state. This is less a case of economic interests than a fear that sanctions will escalate to greater confrontation, even war.

"The strategic challenge the Bush administration faced was to convince the rest of the world that Iran is more dangerous than the United States,'' says nuclear proliferation expert George Perkovich. "They finally did it -- and it took Ahmadinejad to do it,'' referring to the inflammatory rhetoric, including threats to "wipe Israel off the map,'' issued by the Iranian leader.

The administration made some headway down the same path with North Korea by engaging in direct talks with that regime this past fall, dispelling the image that the United States was unwilling to negotiate. But that progress has been undermined recently because hard-liners inside the Bush administration pulled the plug on such talks.

Managing an effective containment partnership will be a huge challenge. And there is still tremendous resistance inside the administration to engaging and negotiating -- and compromising -- with the enemy. But that was always a part of making containment succeed, even at the height of the Cold War.

Containment is no silver bullet. It is merely, as Donnelly puts it, "the least bad alternative, but not by a lot, and not under all circumstances.'' And right now, it is the only game in town.

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The talk will focus on David Michael's recent research into the globalization strategies of companies from China, India, and other rapidly developing economies. Increasingly, companies such as Haier, Huawei, CNOOC, Wipro, Bharat Forge, and Lenovo are emerging on the global stage. What strategies are these companies using, and what implications do they pose for their more-established competitors from developed markets? How are these companies leveraging engineering talent, low costs, and market access in their home countries? How do they approach global market entry, organizational development, and mergers and acquisitions? Which global industries are most threatened? What opportunities do such companies present to Western players? Which are the "most promising" new companies--the ones that you haven't yet heard of?

David Michael heads BCG's Beijing office and is on the global leadership teams of BCG's Technology and Communications practice and Operations practice. He has advised clients in various industries in the region for more than a decade and has worked in more than ten Chinese provinces. He holds a B.A. in economics magna cum laude from Harvard University and an M.B.A. from Stanford University, where he was awarded the Ernest W. Arbuckle award for outstanding class member. He was also a Rotary Scholar at the Chinese University of Hong Kong during the 1989-1990 school year.

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David Michael Senior Vice President, Beijing Office Speaker The Boston Consulting Group (BCG)
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Bestselling author Francis Fukuyama brings together esteemed academics, political analysts, and practitioners to reflect on the U.S. experience with nation-building, from its historical underpinnings to its modern-day consequences. The United States has sought on repeated occasions to reconstruct states damaged by conflict, from Reconstruction in the South after the Civil War to Japan and Germany after World War II, to the ongoing rebuilding of Iraq. Despite this rich experience, there has been remarkably little systematic effort to learn lessons on how outside powers can assist in the building of strong and self-sufficient states in post-conflict situations. The contributors dissect mistakes, false starts, and lessons learned from the cases of Afghanistan and Iraq within the broader context of reconstruction efforts in other parts of the world, including Latin America, Japan, and the Balkans. Examining the contrasting models in Afghanistan and Iraq, they highlight the Coalition Provisional Authority in Iraq as a cautionary example of inadequate planning. The need for post-conflict reconstruction will not cease with the end of the Afghanistan and Iraq missions.

This timely volume offers the critical reflection and evaluation necessary to avoid repeating costly mistakes in the future. Contributors: Larry Diamond, Hoover Institution and Stanford University; James Dobbins, RAND; David Ekbladh, American University; Michèle A. Flournoy, Center for Strategic and International Studies; Francis Fukuyama, Paul H. Nitze School of Advanced International Studies, Johns Hopkins University; Larry P. Goodson, U.S. Army War College; Johanna Mendelson Forman, UN Foundation; Minxin Pei, Samia Amin, and Seth Garz, Carnegie Endowment for International Peace; S. Frederick Starr, Central Asia Caucacus Institute at Johns Hopkins School of Advanced International Studies; F. X. Sutton, Ford Foundation Emeritus; Marvin G. Weinbaum, University of Illinois at Urbana-Champaign

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Johns Hopkins University Press in "Nation-Building: Beyond Afghanistan and Iraq", Francis Fukuyama, ed.
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The latest volume in this popular series focuses on the best ways to evaluate and improve the quality of new democratic regimes. The essays in part one elaborate and refine several themes of democratic quality: the rule of law, accountability, freedom, equality, and responsiveness. The second part features six comparative cases, each of which applies these thematic elements to two neighboring countries: Brazil and Chile, South Africa and Ghana, Italy and Spain, Romania and Poland, India and Bangladesh, and Taiwan and Korea.

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This report examines the connections, if any, between efforts to enhance development through electrification of the world's poorest households with the parallel efforts to introduce market forces in the power sector. Advocates for equitable economic development have rightly signaled many concerns about the process of electricity reform. Their fears range from the higher prices that often accompany reform to the concern that private firms motivated for profits will not have an incentive to provide public services. Some of these fears have been articulated by implying the existence of a "golden era" when state owned firms dominated the power sector and provided energy services equitably across societies; in fact, that golden era never existed in most countries. Public utilities traditionally have been highly politicized; in many countries they have concentrated their services on urban elites and often neglected the poorest populations.

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Allen S. Weiner examines to what degree the global "war on terror" that has erupted since September 11, 2001 fits the "just war" doctrine of international relations or even whether it can properly be considered a war at all in terms of positive international law. Whether or not these labels apply is not merely a matter of academic debate, Weiner notes, but has broader implications for the international legal responsibilities of the United States in Afghanistan, Iraq and other theaters of the "war on terror."

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This paper argues that it is difficult to understand the effects of American democracy promotion abroad without examining the bureaucratic context from which the policy emerges at home. Which actors within the U.S. government are involved in promoting political and economic change abroad? What strategies and conceptual models guide them? What tools and resources do they bring to bear? How does the interaction of American bureaucratic politics affect the impact of American democracy promotion? Articulating this mix of goals, strategies, and resources helps explain incoherent patterns of outcomes on the ground.

This paper explore these questions by reference to the U.S. government's most ambitious democracy promotion efforts of the past decade: the effort to rebuild its former Soviet enemies into a democratic allies in the 1990s. Yet the patterns of American bureaucratic politics are not unique to this democracy promotion effort. While American democracy promotion has changed in tone and substance under the watch of George W. Bush, American domestic politics has powerfully shaped American democracy promotion in similar ways in Iraq, Afghanistan, and beyond.

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Rosamond L. Naylor
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CESP senior fellows Rosamond L. Naylor, Walter P. Falcon, and Harold A. Mooney released the findings of a new study on the impacts of an increasingly global livestock industry in the Policy Forum of the Dec. 9 issue of Science.

The turkey and ham many are eating this holiday season don't just appear magically on the table. Most are the end product of an increasingly global, industrialized system that is resulting in costly environmental degradation. Better understanding of the true costs of this resource-intensive system will be critical to reducing its negative effects on the environment, says an interdisciplinary team of researchers led by Stanford University's Rosamond Lee Naylor, Walter Falcon, and Harold Mooney.

"Losing the Links Between Livestock and Land" appears in the Policy Forum in the Dec. 9 issue of Science. It represents a synthesis of research by professors at Stanford University, the University of Virginia, the University of California at Davis, the universities of Manitoba and British Columbia in Canada, and the United Nations LEAD (Livestock Development and Environment) program within the Food and Agricultural Organization of UN.

"Sixty years ago, the link between the livestock production and consumption was much more clear and direct, with most consumers getting their meat and dairy products from small, family-owned farms," says lead author Naylor, an economist. Co-author Falcon agrees. "When I was growing up in Iowa, almost all farmers kept both chickens and pigs."

Today, meat consumption has sky-rocketed, and large-scale intensive livestock operations provide most of those products, both in the U.S. and around the world.

Particularly striking is the growth in demand for meat among developing countries, Naylor notes. "China's meat consumption is increasing rapidly with income growth and urbanization, and it has more than doubled in the past generation," she says. As a result, land once used to provide grains for humans now provides feed for hogs and poultry.

Numerous factors have contributed to the global growth of livestock systems, Naylor notes, including declining feed-grain prices; relatively inexpensive transportation costs; and trade liberalization. "But many of the true costs remain largely unaccounted for," she says. Those costs include destruction of forests and grasslands to provide farmland for corn, soybeans and other feed crops destined not directly for humans but for livestock; use of large quantities of freshwater; and nitrogen losses from croplands and animal manure.

Nitrogen losses are especially problematic, says James Galloway of the University of Virginia. "Once nitrogen is lost to the atmosphere or to water, it can have a large number of sequential environmental effects. For example, ammonia emitted into the atmosphere can in sequence affect atmospheric visibility, forest productivity, lake acidity and eventually impact the nutrient status of coastal waters."

Naylor cited Brazil as a specific example of the large impact on ecosystems and the environment. "Grasslands and rainforests are being destroyed to make room for soybean cultivation," she said. The areas are supplying feed to the growing livestock industry in Brazil, China, India and other parts of the world, leading to "serious consequences on biodiversity, climate, soil and water quality."

Naylor and her research team are seeking better ways to track all costs of livestock production, especially the hidden ones related to ecosystem degradation and destruction. "What is needed is a re-coupling of crop and livestock systems," Naylor said. "If not physically, then through pricing and other policy mechanisms that reflect social costs of resource use and ecological abuse."

Such policies "should not significantly compromise the improving diets of developing countries, nor should they prohibit trade," Naylor added. Instead, they should "focus on regulatory and incentive-based tools to encourage livestock and feed producers to internalize pollution costs, minimize nutrient run-off, and pay the true price of water."

She cited efforts in the Netherlands to track nitrogen inputs and outputs for hog farms as one approach. In the U.S., the 2002 Farm Bill provided funds for livestock producers to redesign manure pits and treat wastes, but she notes that much greater public and private efforts are needed to reduce the direct and indirect pollution caused by livestock.

In the end, though, it may be up to consumers to demand more environmentally sustainable approaches to livestock production. "In a global economy with no global society, it may well be up to consumers to set a sustainable course," she added.

Seed funding for the research was provided by the Woods Institute for the Environment, which supports interdisciplinary approaches to complex environmental issues. Naylor, Falcon and Mooney are affiliated with the institute and with the Center for Environmental Sciences and Policy in Stanford's Freeman Spogli Institute for International Studies.

In addition to Naylor, Mooney and Falcon of Stanford and Galloway of Virginia, co-authors are Henning Steinfeld of the United Nations Food and Agriculture Organization; Galloway; Vaclav Smil, University of Manitoba; Eric Bradford, University of California at Davis; and Jacqueline Alder, University of British Columbia.

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