2. U.S. Security Partnerships Can Make Arab States Targets

Yom highlighted a paradox shaping the strategic environment of Arab states: the closer their security ties with the United States, the more vulnerable they may become in a regional confrontation.

“For the most part,” Yom explained, “the intensity of Iranian counterstrikes and retaliation on Arab states covaries with the degree of their relationship with the United States.”

States hosting American military bases or deeply integrated into U.S. security strategy are more likely to find themselves on the frontlines of Iranian retaliation.

“The more of a client state they are, the more troops they host, the deeper their foreign policies are tied to the demands of American grand strategy — then the more likely they are going to be struck.”

This dynamic creates a fundamental strategic dilemma.

For decades, small and medium-sized states in the region have relied on alliances with Washington to enhance their security. The current conflict illustrates how those same alliances can also increase their exposure to regional escalation.

3. Arab Governments Are Trying to Avoid Being Seen as Participants in the War

Arab governments today face a difficult balancing act: responding to Iranian attacks while avoiding the perception that they are fighting alongside the United States and Israel. Many Arab governments must navigate public opinion that is deeply skeptical of Israel and wary of Western military intervention in the region.

As Sallam put it, these governments are trying to avoid creating “the impression that they are fighting alongside the United States and Israel in this war.”

The result is a diplomatic tightrope: condemning attacks on their territory without being drawn into the broader conflict.

4. A Regional War Threatens the Gulf’s Economic Transformation Projects

A fourth major takeaway concerns the economic stakes of regional stability.

Blaydes emphasized that wars can have far-reaching political economy consequences. Major conflicts reshape investment patterns, redirect state resources toward security priorities, and increase global perceptions of risk.

When governments must divert resources toward defense spending and crisis management, economic diversification plans can quickly lose momentum.

For Gulf regimes that have tied their political projects to visions of economic modernization, prolonged regional instability therefore represents a serious political challenge.

“Suddenly, when you have a conflict that disrupts the flow of investments, tourism, and even trading routes in places like the Strait of Hormuz or the Red Sea,” Sallam observed, “this shakes the foundations of these projects.”

5. The War Is Occurring Amid Deep Divisions Among Regional Powers

The discussion highlighted that the war with Iran is unfolding against the backdrop of a significant regional rift.

According to Sallam, one emerging divide involves different visions for managing instability in fragile states. Some regional actors — including the UAE and Israel — have tacitly or directly promoted fragmentation of political authority in places like Sudan, Yemen, and Gaza.

Others, including Saudi Arabia, Egypt, and Turkey, have tended to favor more traditional models of centralized authoritarian stability.

These competing strategic preferences have already clashed in multiple regional conflicts, most recently in Sudan and Yemen.

Thus, Iran’s potential neutralization as a regional power player as a result of the war, Sallam noted, will not necessarily result in regional stability. It will simply intensify these rivalries among the remaining powers.

6. War Strengthens Authoritarian Politics and Weakens the Prospect for Reform and Development

The panel highlighted the negative ramifications of regional conflict for reform and development.

“The constant violence is not productive for the promotion of democracy, development, or the rule of law,” Blaydes noted. “Having a constant stream of weapons, conflict, violence, post-conflict reconciliation, [and] regional rivalries…undermines all three.”

“Anytime a regional conflict breaks out,” Yom argued, “it’s always bad for democratic struggle on the home front.”

The war, according to Sallam, could result in outcomes that would be “catastrophic not only for the people and society of Iran, but also the people and societies of the region at large.”

A full recording of the March 3 panel can be viewed below:

For Oleksii Movchan, a member of the Verkhovna Rada (Ukraine’s Parliament) and deputy chair of the parliamentary committee on economic development, his focus is on expanding financing tools for reconstruction. As part of a project he began during his 2025 SU-DD fellowship, he is drafting legislation to reform municipal bond regulations, aimed at increasing the participation of local governments in securities and debt markets and attracting additional resources for rebuilding Ukraine. To accomplish this work, he has relied on the Problem-Solving Framework he learned at Stanford, and shares that his experience in the SU-DD program made him more confident in his values and encouraged him to “stand on [his] principles and values of integrity, openness, and respect to human rights and democracy.” By strengthening municipal access to capital, his work seeks to support infrastructure recovery while reinforcing transparent financial governance.

Maria Golub, a senior political and policy advisor working on EU and NATO integration, is developing a national Coalition for Recovery — an inclusive, cross-sectoral platform designed to unify Ukraine’s defense, reconstruction, and reform agendas. With Ukraine balancing the demands of war and reconstruction, Golub’s 2025 SU-DD project aims to ensure that recovery planning connects security, governance, and innovation rather than treating them as separate tracks. Currently in a pilot, her proposals have already informed the government's 2026 recovery and resilience planning process.

At the regional level, Mykhailo Pavliuk, vice-chairman of the Chernivtsi Oblast (state) legislature in Ukraine, is actively implementing reforms to advance self-government and deepen Ukraine’s decentralization process. His work, initiated during his time at Stanford in 2023, focuses on strengthening “consolidated, self-sufficient communities” by developing political, financial, infrastructure, and social strategies that can be carried out locally, including cross-border regional initiatives in Chernivtsi. He said the most important element is “supporting the potential of people at the local level through the activities of advisory bodies, consultations, and modeling of joint decisions,” bringing citizens closer to decision-making on community affairs. Pavliuk emphasized that decentralization has been critical to Ukraine’s resilience since 2022, while noting that “there would certainly be a greater outcome in peacetime,” without the constraints imposed by war.

In the media sector, Alyona Nevmerzhytska, CEO of the independent outlet hromadske, is actively implementing her 2025 SU-DD project to strengthen the organization’s long-term sustainability and resilience. Her work, she says, “addresses two interconnected challenges: financial vulnerability and the rapid emergence of AI in the media landscape.” By developing diversified revenue strategies and integrating responsible AI tools into newsroom workflows, she aims to “improve efficiency, counter disinformation, and expand audience reach.” Despite ongoing security risks, she shares that the newsroom has maintained consistent production, adapted its operations, and prioritized staff safety, demonstrating what she described as “strong institutional resilience.” During her time on campus, Nevmerzhytska met with Stanford journalism and technology experts, whose guidance enhanced her strategic thinking around AI integration and digital modernization, “providing practical insights and [the] confidence to adopt responsible AI tools for efficiency and multilingual production.” She reports that hromadske continues to serve as a platform for accountability and public debate, reinforcing its role within Ukraine’s civil society.

Iaroslav Liubchenko, currently CEO of Ukraine’s national electronic public procurement system Prozorro, focused his 2023 Stanford project on strengthening transparency, efficiency, and institutional integrity in Ukraine’s defense procurement architecture. Today, that vision has become central to his leadership agenda. Prozorro is advancing three core priorities: deepening European integration through the approximation of EU public procurement directives into national legislation — in cooperation with Member of Parliament Oleksii Movchan — and sharing Prozorro’s digital governance model with EU partners; scaling up defense procurement within the system, including drones, unmanned and robotic systems, electronic warfare capabilities, non-lethal equipment for military infrastructure, and strengthened cooperation with the Defence Procurement Agency; and developing the broader Prozorro ecosystem through new coalitions and markets, advanced digital instruments, and AI integration. Prozorro seeks to ensure that Ukraine’s defense and rebuilding efforts are supported by transparent, technology-driven, and institutionally resilient procurement systems — not only fully aligned with EU standards, but capable of serving as a model for public procurement reform across Europe.

Ukraine’s Path Forward

Together, the fellows describe a future shaped not only by physical rebuilding but by the strength of Ukraine’s institutions and civic life. When asked about the country’s priorities for the next several years, their responses aligned in three areas: securing victory and sustaining defense capacity, advancing EU integration, and rebuilding critical infrastructure. Each emphasized that reconstruction must be paired with governance reforms to ensure public trust and long-term resilience.

Amid the political, economic, and human toll of war, our fellows agreed that the “unbreakable spirit and will of Ukrainians” gives them hope. “I am inspired by the endurance of Ukrainian society,” said Nevmerzhytska. “Despite exhaustion and loss, people continue to volunteer, innovate, and support each other. That civic resilience gives me confidence that Ukraine’s democratic spirit remains strong.”

As we look to the beginning of the fifth year of Russia’s war, Ukraine’s future is still uncertain. But the projects these leaders developed during their time at Stanford have carried into their work in parliament, regional government, civil society, media, and the defense sector. What began as ideas for reform are now being tested and adapted under wartime conditions, as they work to keep institutions functioning and prepare for the country’s long-term recovery.

The optimistic assumptions that shaped the wave of globalization at the turn of the 21st century have given way to geoeconomics, also known as economic statecraft, or the use of economic leverage to advance the geopolitical interests of nation-states. In this environment of "weaponized interdependence," corporations have become actors on the frontlines of the U.S.-China rivalry, the Russia-Ukraine war, China-Taiwan tensions, and other national security conflicts in which they are organizationally ill-suited to play a central role, cautions APARC Faculty Affiliate Curtis J. Milhaupt, the William F. Baxter-Visa International Professor of Law and a senior fellow at the Freeman Spogli Institute for International Studies. 

Milhaupt, an internationally recognized expert on comparative corporate governance, delivered a keynote speech titled Corporate Governance in an Era of Geoeconomics at the Corporate Governance Conference in Milan, Italy, on February 12, 2026. He described the era of geoeconomics as representing a dramatic departure from early 2000s thinking, when capital markets were viewed as politically neutral, shareholder identity was considered irrelevant, and scholars predicted global convergence on Western corporate governance models. All three assumptions have collapsed, posing significant repercussions for firm-specific legal risks and governance challenges. Watch Milhaupt's presentation:

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Heightened Compliance Risk

The U.S.-China rivalry has created a particularly complex challenge for corporate governance, says Mihaupt. The United States has enacted multiple laws to curtail technology transfers to China, with China responding in a tit-for-tat fashion. The resulting, rapidly shifting and conflicting legal environment makes it "virtually impossible for a compliance department to comply with both U.S. and Chinese regulations."

Milhaupt introduced the concept of "ESG + G," adding geoeconomics to the Environmental, Social, and Governance framework used by investors and companies to assess a company's sustainability, ethical impact, and risk management beyond mere financial performance. Like ESG, geoeconomics involves corporations taking on roles traditionally played by governments. "I think in many respects private companies have become national security partners of their home country governments," he said.

Milhaupt's review of the disclosures of risk factors in the securities filings of public companies in the United States over the past 20 years shows the dramatic shift in corporate risk perception. Mentions of geopolitical risks related to export controls, the China-Taiwan conflict, and supply chain vulnerabilities have spiked sharply since 2020, with a particularly dramatic increase following Russia's invasion of Ukraine.

Despite these challenges, corporations appear to be unprepared for the exploitation of the vulnerabilities created by economic interdependence in the era of geoeconomics. Only 5% of Russell 3000 companies disclose information on how they monitor geopolitical risk, Milhaupt finds. Among those that do, most provide no details about their strategies. Meanwhile, the expertise necessary for geopolitical risk assessment is declining as a percentage of S&P 500 boards of directors.

Divergent Governance Paths

In the era of globalization, corporate governance systems worldwide largely converged around the liberal vision of shareholder primacy. In today’s geoeconomic era, however, a different kind of convergence may be emerging: one shaped less by market ideology and more by the shared political values and strategic priorities of the home governments of globally active firms. Thus, we are witnessing increasing concern with the national identity of corporations and their shareholders, Milhaupt observes. "The standard legal tests for corporate national identity – jurisdiction of incorporation, or the real seat doctrine – are in danger of being overriden by political determinations such as the one that was applied to TikTok in the United States."

At the same time, Milhaupt argues, we may be witnessing the beginning of a movement in the opposite direction to the Western model of corporate governance: "the spread of what might be thought of as state capitalism in the West." To illustrate this trend, Milhaupt cites the case of the U.S. government's "golden share" in U.S. Steel as a condition for allowing its merger with Japanese company Nippon Steel.

While Milhaupt recognizes the necessity of government actions to protect national security in the corporate sector, he warns against ad hoc informal interventions in the private sector. "I don't think that these are really the answer to competition with Beijing," he said. "I'm particularly concerned about the impact of these government interventions on global investment, which relies on a predictable legal regulatory enforcement regime."

Milhaupt concludes that the era of geoeconomics is "the new normal," and both companies and governments must adapt to a world where economic and national security concerns are inextricably linked.

The deliberations yielded clear priorities for building trust through safeguards during this early phase of agentic development and adoption. Currently, participants favor AI agents for low-risk tasks, while expressing caution about high-stakes applications in medical or financial domains. In deliberation, participants indicated an openness to these higher-risk applications if provided safeguards around privacy or user control, such as requiring approval before finalizing an action.

The Forum also revealed support for culturally adaptive agents, with a preference for asking users about norms rather than making assumptions. Lastly, the discussions underscored the need for better public understanding of AI agents and their capabilities, pointing to the importance of transparency and education in fostering trust in these emerging technologies.

"The perspectives coming out of these initial deliberations underscore the importance of our key focus areas at Cohere: security, privacy, and safeguards,” said Joelle Pineau, Chief AI Officer at Cohere. “We look forward to continuing our work alongside other leaders to strengthen industry standards for this technology, particularly for enterprise agentic AI that works with sensitive data."

This pioneering forum sets a new standard for public participation in AI development. By seeking feedback directly from the public, combining expert knowledge, meaningful public dialogue, and cross-industry commitment, the Industry Wide Forum provides a key mechanism for ensuring that AI innovation is aligned with public values and expectations.

“Technology better serves people when it's grounded in their feedback and expectations,” said Rob Sherman, Meta’s Vice President, AI Policy & Deputy Chief Privacy Officer.  “This Forum reinforces how companies and researchers can collaborate to make sure AI agents are built to be responsive to the diverse needs of people who use them – not just at one company, but across the industry.”

Through Stanford’s established methodology and their facilitation of industry partners, the Industry-Wide Forum provides the public with the opportunity to engage deeply with complex technological issues and for AI companies to benefit from considered public perspectives in developing products that are responsive to public opinion. We hope this is the first step towards more collaboration among industry, academia, and the public to shape the future of AI in ways that benefit everyone.

“We have more industry partners joining our next forum later this year”, says Alice Siu, Associate Director of Stanford's Deliberative Democracy Lab. “The 2026 Industry-Wide Forum expands our discussion scope and further deepens our understanding of public attitudes towards AI agents. These deliberations will help ensure AI development remains aligned with societal values and expectations.”