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  • Author: Daniel Shoag, Stan Veuger
  • Publication Date: 07-2018
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: We report three findings. First, using evidence from chain bankruptcies and data on 12 million to 18 million establishments per year, we show that large retailers produce significant positive spillovers. Second, local governments respond to the size of these externalities. When a town’s boundaries allow it to capture a larger share of retail spillovers, it is more likely to offer retail subsidies. Third, these subsidies partially crowd out private sector mechanisms that also subsidize large retailers, such as shopping malls. These facts provide powerful evidence of the Coase theorem at work and highlight a concern for local development policies even when externalities can be targeted.
  • Topic: International Affairs
  • Political Geography: America
  • Author: Chad Michael Briggs
  • Publication Date: 07-2018
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Paid parental leave can provide important health and educational benefits to children while enabling mothers to remain attached to their prior jobs, which can increase earnings substantially once the mother returns to work
  • Topic: Finance, Domestic politics
  • Political Geography: America
  • Author: Derek Scissors
  • Publication Date: 07-2018
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: China is investing much less in the US than it did just a year ago. It has never invested much in the Belt and Road. Yet China’s global investment spending remains healthy, with impressive diversification across countries and the reemergence of private firms.
  • Topic: International Political Economy, International Affairs
  • Political Geography: China
  • Author: Jason D. Delisle , Preston Cooper
  • Publication Date: 07-2018
  • Content Type: Commentary and Analysis
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Contrary to popular perception, the share of students at the 200 most selective public and private colleges who are from low-income households did not decline over the past 16 years. However, the share of students at these institutions who are from middle-income families has steadily declined.
  • Topic: International Political Economy, Poverty
  • Political Geography: America
  • Author: Joseph Antos, Robert Moffit
  • Publication Date: 07-2018
  • Content Type: Special Report
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Medicare’s financial outlook has deteriorated in the past year, according to the latest annual report by the program’s trustees. The Medicare Hospital Insurance trust fund is projected to be depleted in 2026, three years earlier than estimated in last year’s report. That understates the policy challenge. Every year, the program relies more on general revenues to cover its costs. In total, Medicare will receive $324 billion in general revenues this year. That will more than double by 2026. Prompt action is needed to put Medicare on a sound financial footing.
  • Topic: International Organization
  • Political Geography: Global Focus
  • Author: Danielle Pletka
  • Publication Date: 06-2018
  • Content Type: Special Report
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: In connection with an assessment of AEI’s work on the Middle East over the past two decades, I drafted the following survey. The arc of our scholarship in this critical region is fascinating and illuminates the continuity and evolution of the challenges the United States faces in the Middle East. What is ultimately clear is that in the region both the challenge of destructive ideas and the fostering of better ones will shape outcomes.
  • Topic: International Affairs
  • Political Geography: Middle East
  • Author: Andrew Saultz
  • Publication Date: 06-2018
  • Content Type: Special Report
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: A majority of teacher dismissal cases in Atlanta from 2011 to 2017 were related to issues of professionalism, including not showing up for work, not following a directive from a supervisor, or not completing tasks (i.e., grading).
  • Topic: International Affairs
  • Political Geography: America
  • Author: Gary J. Schmitt
  • Publication Date: 06-2018
  • Content Type: Special Report
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The North Atlantic Treaty Organization (NATO) was established to meet the security threat posed by the Soviet Union. Often overlooked, though, are the ways in which it has provided the material and behavioral grounds for the larger liberal order in Europe to emerge.
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Frederick M. Hess, Lanae Erikson Hatalsky
  • Publication Date: 06-2018
  • Content Type: Special Report
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Only about half of students who begin college actually complete their degree, which makes it increasingly difficult and expensive to brush the college completion problem under the rug.
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Bradford Wilcox, Wendy Wang, Ronald Mincy
  • Publication Date: 06-2018
  • Content Type: Special Report
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Over the last decade, much of the racial news and academic research on black men in America has been sobering, if not downright depressing. But negative news isn’t the only story about race or even about black males in the United States. In Black Men Making It in America, we report some good news:
  • Topic: International Political Economy, Race, International Affairs
  • Political Geography: Global Focus
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>Brazil's economic malaise and corruption scandals present significant challenges to President Dilma Rousseff's ability to govern, just four months into her second four year term. Latin America's largest economy is rediscovering that stimulating growth and creating jobs requires controlling government spending, increasing trade, and attracting investment by adopting a host of free market reforms. The United States and Brazil should jump start efforts to improve their commercial and diplomatic relations to bolster economic development in a region crucial to both countries.</p>
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>In US education, with all its rich human dynamics, what matters is not whether a reform is attempted, but rather how it is executed. The states, given their sufficient control over schools and colleges and their proximity to their communities, are in a far better position than the federal government to effectively execute policies. Although many education reform efforts have fallen flat over the years, there are promising initiatives on the horizon that state leaders would be well-advised to pursue. Governors and legislators are right to look for strategies that can provide the highest-quality education to the largest number of students. In pre-K, state leaders have a rare opportunity to build a system from the ground up; in K-12, they have the chance to remove barriers to give more freedom to teachers and parents; and in higher education, they have the opportunity to look beyond the existing system to create new, more affordable postsecondary options that allow more flexibility for students and innovation for course providers.</p>
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>One of the recommendations of the 9-11 Commission was that Congress focus on the danger of weapons of mass destruction proliferating to terrorist groups. So in 2007 Congress created a Commission to study the danger and report on measures that could be taken to minimize it. I was asked to co-chair the Commission with Senator Bob Graham of Florida. There were a total of nine members on our bi-partisan Commission. Shortly after our Commission was formed, we met with Senator Harry Reid at his request. Senator Reid explained his interest in the subject of our work, and encouraged us to highlight clearly those aspects of the WMD terrorism threat which we believed were the most significant; he urged us in the strongest terms to tell us what we thought Congress most needed to know about the danger. We did so in a Report released at the end of 2008 called "World at Risk."</p>
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>China's proposed counterterrorism law, which applies to all information technology (IT) companies operating in China, and US "legal-intercept" regulations, which govern all IT companies operating in the United States, are officially acknowledged frameworks to counter terrorist and criminal behavior. Despite the similarities in these regulations, President Obama has criticized China's law. The US must prepare to see practices that it has already adopted become prevalent elsewhere or be ready to modify US surveillance behaviors that US authorities do not want to see spreading around the globe.</p>
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>Many adults without a college degree aspire to some higher credential, but most overestimate the cost of higher education, which could deter them from furthering their education. Many adults without a degree in our survey were uncertain as to the wage returns to different postsecondary pathways. Those who did offer estimates tend to see the bachelor's degree as the most valuable credential and certificates as the least valuable. Adults without a postsecondary degree do not always see the value in returning to school, and efforts to encourage education and training should clarify the benefits to various postsecondary pathways.</p>
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>In April of 2015, AEIs Claude Barfield authored a preliminary paper entitled The Political Economy OF TTIP: The View from the United States. The paper was presented at UC Berkeleys conference, The Political Economy of the Transatlantic Trade and Investment Partnership (TTIP): Origins, Evolution, and Implications, with the aim of providing a set of hypotheses regarding the immediate US trade agenda. The paper raises more questions than it answers, at a time when it is particularly challenging to render judgment on this agenda./p
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>Malicious Iranian cyber activity has increased significantly since the beginning of 2014. Data collected by AEI and the Norse Corporation indicate that attacks launched from Iranian Internet protocol (IP) addresses increased 128 percent between January 1, 2014, and mid-March 2015. The number of Norse sensors hit by Iranian IPs rose by 229 percent, while the number of distinct IPs used to execute these attacks rose by 508 percent. Iranian companies are renting and buying IT resources in the West, despite sanctions. Hundreds of thousands of domains registered to Iranian people or companies are hosted by companies in the US, Canada, and Europe as a result of Western failures to enforce IT sanctions and regulations governing technology transfers. Some of these resources are then used to conduct cyberattacks on America and its allies. The Islamic Republic is using networks within Iran to conduct sophisticated cyberattacks. Investigations have uncovered efforts launched by the Islamic Revolutionary Guard Corps and Sharif University of Technology to infiltrate US systems. The technical nature of the attacks makes it more likely that Iran's cyber capabilities are expanding and could pose a risk to US critical infrastructure.</p>
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>For many years, we have reviewed polls about leading political figures, including Hillary Clinton. For this AEI Public Opinion Study, we have examined almost 5,000 questions asked about her and compiled views on Clinton as a first lady, senator, presidential candidate, and secretary of state. Polling data on Hillary Clinton include several long trends, including ratings of her favorability. The first such questions about her were asked in early 1992, when many people knew little about her. In Gallups trend, her favorable rating hit 51 percent in July 1992 after the Democratic convention. Gallup noted that the campaigns effort to improve her image had paid off. She did not receive a post-election bounce as Bill Clinton did, and Gallup reported that her favorable ratings had dipped slightly. Gallup noted that 26 percent of both men and women said they were worried that she would play too large a role in the administration. Forty percent in a November 1992 poll said she came closer to their own views than previous First Ladies, but 40 percent said she did not. Her marks went down in the 1994 to1996 period, hitting an all-time low of 43 percent in January 1996 (Gallup). During her Senate tenure, her national favorable ratings ranged from a low of 43 percent to a high of 58 percent. Her national favorable ratings when she served as Secretary of State were consistently high, though they have declined slightly since she resigned from office. Without a doubt, questions specific to the issues in the presidential race will emerge in the polling data as the race to 2016 heats up, and Americans views of Hillary Clinton will evolve as the presidential election season progresses. See the latest public opinion data on her in AEIs infographic and Public Opinion Study, Public Opinion on Hillary Clinton, 1992-2015./p
  • Publication Date: 03-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>Do Americans feel less threatened by terrorism now than they did when President Obama took office? The April issue of AEI's Political Report compares public opinion on the George W. Bush and Obama administrations' handling of terrorism, assesses how much terrorism concerns Americans, and assesses Americans' opinions on how the United States should respond to the threat of ISIS. This issue also examines public opinion on taxes, and where slight shifts have begun to emerge in the polls.</p> <p>/p p/p
  • Publication Date: 03-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>Chairman Johnson, Senator Carper, and Members of the Committee, thank you for inviting me to appear here today to discuss unauthorized immigration to the United States and guest worker programs. In the testimony that follows, I will first discuss why people become unauthorized immigrants. I will then discuss what we know about unauthorized immigrants in the U.S. labor market. At the end, I will discuss how future guest worker programs can affect immigration flows and the U.S. economy.</p>
  • Publication Date: 02-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>The States of Change: Demographics and Democracy project is a collaboration supported by The William and Flora Hewlett Foundation that brings together the Center for American Progress, the American Enterprise Institute, and demographer William H. Frey of the Brookings Institution. The projects goals are: To document and analyze the challenges to democracy posed by the rapid demographic evolution from the 1970s to 2060 To project the race-ethnic composition of every state to 2060, which has not been done for 20 years To promote a wide-ranging and bipartisan discussion of Americas demographic future and what it portends for the nations political parties and policy This report presents the first tranche of findings from this projectincluding detailed analyses on the nation as a whole and on every statewhich we hope will both inform and provoke discussion. We outline 10 broad trends from our findings that together suggest the scale of the transformation our country is living through and the scope of the challenges it will face in the future. These changes admit to a wide variety of interpretations, and as with any report as extensive as this one, it should not be surprising that there are some differences in interpretation among the participating institutions. We believe, however, that differing interpretations are to be welcomed and that they will be useful in stimulating discussion both within and outside our project on the implications of demographic change./p
  • Publication Date: 02-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>In the 42 years since the Supreme Court decided Roe v. Wade (1973), pollsters have asked hundreds of questions about abortion. This AEI Special Poll Report, excerpted from our long AEI Public Opinion Study Attitudes About Abortion, covers some of the highlights.</p>
  • Publication Date: 02-2015
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: <p>Testimony of Thomas Donnelly, Co-Director, Marilyn Ware Center for Security Studies, American Enterprise Institute</p>
  • Author: Frederick M. Hess
  • Publication Date: 03-2015
  • Content Type: Video
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: How have views toward sex education changed over time, and how does sex education around the world compare to that in the United States? On Thursday, AEI hosted a conversation with New York University professor Jonathan Zimmerman on his new book, “Too Hot to Handle: A Global History of Sex Education,” which addresses the differences in sex education across countries and throughout history, finding that as countries become more democratic, sex education becomes increasingly contentious. Zimmerman recalled how the United States was originally a pioneer in sex education, which originally tended to emphasize the dangers of sexual activity. In the 1970s and 1980s, members of the international community began to focus on sex education as a way to help liberate individuals from societal norms, leaving them free to make their own choices. He pointed out that the developing world, however, did not embrace this notion of individual autonomy being granted to teenagers, and so those countries' version of sex education came to look quite different. As immigration increased closer to the present day, then, this created strange bedfellows in many Western countries as white conservatives and immigrants joined forces against sex education. Zimmerman closed by describing how schools are necessarily limited in their efficacy on this particular subject, both because it is intensely personal and because the mass media plays such a strong informative role on the topic. Consequently, he suggested that the discussion of sex education likely ought to be expanded into environments outside the school.
  • Topic: Education, Environment, Immigration
  • Political Geography: United States
  • Author: Katherine Zimmerman
  • Publication Date: 02-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Yemen is at a pivotal moment today, three years after the outbreak of popular protests, and the future of America's strategy against al Qaeda in the Arabian Peninsula (AQAP) is on the line. Yemen is in the midst of a political transition process that will eventually reform and decentralize the government. But the success of the effort is by no means assured. The reforms will not, in any case, address the deteriorating socioeconomic conditions that provide fertile ground for al Qaeda. Moreover, the central state, never fully able to exercise its sovereignty throughout the country, is weaker than it was before 2011. Opposition groups, which have turned to violence in the past, may still seek to form independent states of their own, potentially collapsing the fragile Yemeni state structure entirely. American interests are bound up in this process by the fact that AQAP is among the most virulent al Qaeda affiliates that poses a direct threat to the U.S. homeland. Syria, Iran, and other foreign and domestic policy issues are distracting the United States and its regional partners from sustained engagement in Yemen. Without international support, the country is much less likely to ride this transition process smoothly and our security interests will be severely harmed.
  • Topic: Islam, Terrorism, Armed Struggle, Insurgency, Governance
  • Political Geography: United States, Middle East, Yemen, Arabia
  • Author: Derek M. Scissors
  • Publication Date: 02-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Reactions to the Chinese Communist Party's announcement of major economic reforms in November have ranged from unbridled optimism to skepticism about the party's ability to implement sweeping change. In fact, the reforms themselves are flawed in multiple ways-most are inauthentic, uncredible, or nonviable. However, the areas of land and finance offer more limited prospects for true reform. The primary means of judging reform progress should be progress in reducing excess capacity. The most likely outcome is that the party will claim success but the economy will slowly stagnate, harming China's partners.
  • Topic: Economics, International Trade and Finance, Reform
  • Political Geography: China, East Asia
  • Author: Danielle Pletka, Frederick W. Kagan, J. Matthew McInnis
  • Publication Date: 02-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: A review of the soft-power strategies of both the United States and the Islamic Republic of Iran in the Middle East and Afghanistan makes clear a disturbing fact: Tehran has a coherent, if sometimes ineffective strategy to advance its aims in the Middle East and around the world. The United States does not. This project began with two tour d'horizon reviews of Iranian activities throughout areas Iran has, by its actions, defined as its sphere of influence. From the Persian Gulf through the Levant and into neighboring Afghanistan, the Islamic Republic has consistently invested in soft- and hard-power activities designed not only to extend its own influence but also to limit both American and hostile Arab aims. And while the latter part of the Ahmadinejad administration saw waning rewards for Tehran's efforts-a result more of the growing Sunni-Shia divide in the Middle East than of changes in strategy-the continued existence of a coherent Iranian strategy to dominate or destabilize the region should not be ignored. This report, the culmination of a process of both examining Iranian actions and surveying American policy, policy responses, and soft-power strategies in the region, focuses on the US side of the equation. Despite the Obama administration's commitment to replace hard power with smart power, what the United States pursues in the Middle East is a set of incoherent, ineffective, and increasingly irrelevant policies.
  • Topic: Foreign Policy, Defense Policy, Islam, Bilateral Relations
  • Political Geography: Iran, Central Asia, Middle East
  • Author: Michael Rubin, Ahmad Khalid Majidyar
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Shi'ism has a public relations problem, at least, in the United States. Most Americans formed their perception of Shi'ism not by reading its rich internal debates or exploring its diversity and cultural heritage, but rather by seeing Ayatollah Ruhollah Khomeini lead chants of "Death to America" after the 1979 Iranian revolution and Iranian hostage takers scaling embassy walls and then parading blindfolded, abused diplomats on television. Less than four years later, Shi'ite operatives in Lebanon rammed a truck bomb into the headquarters of US Marines serving as peacekeepers in Beirut, killing 241 in an incident that propelled suicide terrorism to the forefront of the American conscience.
  • Political Geography: United States, America, Middle East
  • Author: Frederick W. Kagan
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Iran's national security decision-making process is not remotely as opaque as it sometimes appears. The recent crisis in Iraq and the nuclear negotiations in Geneva have opened a fascinating window into the efforts of Supreme Leader Ayatollah Ali Khamenei to bring rival groups within his government together behind a single set of policies. He appears to have been remarkably successful in mediating tensions between President Hassan Rouhani and the Islamic Revolutionary Guard Corps senior leaders. They have come together, at least for the moment, behind a coherent set of strategies for dealing with a number of thorny problems in Iraq, the nuclear negotiations, and even economic reforms. It remains to be seen if these accommodations will survive the current crisis, of course, but the success of Khamenei's efforts so far is impressive.
  • Topic: Security, Foreign Policy, Diplomacy, Nuclear Weapons, Politics, Governance, Nuclear Power
  • Political Geography: Iran
  • Author: Mary Habeck
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Current national security policy is failing to stop the advancement of al Qaeda and its affiliates throughout the Muslim-majority world. While there are many reasons for this failure, three key issues stand out: a poor definition of the enemy, an incorrect view of its objectives, and the adoption of a strategy that will not defeat the latest evolution of this adaptive organization. If the US understood al Qaeda as it is: the leadership and field army of an insurgency with worldwide linkages that hopes to impose its extremist version of shari'a , govern territory, and overthrow the leaders of every Muslim- majority country, the current national strategy for combating al Qaeda would not be confined to counter - terrorism and attrition, but would instead make counterinsurgency-without large numbers of American ground forces-its main technique for confronting and defeating the organization.
  • Topic: Defense Policy, Islam, Terrorism, Military Strategy, Counterinsurgency
  • Political Geography: United States, America
  • Author: Leon Aron
  • Publication Date: 05-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Vladimir Putin is exploiting the Ukrainian revolution-specifically, by manufacturing "crises" in Crimea and eastern Ukraine and nationalist euphoria and anti-Western paranoia at home-to fashion a more repressive and increasingly unpredictable Russian dictatorship for life. With the Russian economy heading for recession, the Putin regime's popularity largely depends on Russia's foreign policy successes, which Putin hopes to achieve by humiliating, destabilizing, and eventually derailing Ukraine; by cajoling the West into rejecting sanctions against Russia; and by fueling Russian patriotism. The West should, in an effort spearheaded by the United States, aim its sanctions at increasing the costs of the regime's malignant transformation rather than simply attempting to dissuade Moscow from further action in eastern Ukraine.
  • Topic: International Law, Sovereignty, Territorial Disputes, Governance
  • Political Geography: Russia, United States, Ukraine
  • Author: Roger F. Noriega, José R. Cárdenas
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The recent influx of illegal Central American immigrants (including a surge of unaccompanied minors) into the United States stems in part from violent, sophisticated drug trafficking operations in those nations and governments that are either unwilling or unprepared to confront organized crime. These operations are not only driving many more immigrants to the United States but also threatening US national security. Investing additional money in fences and border patrol agents alone will not solve US illegal immigration problems. Short-term steps for the US should include thwarting human smuggling, addressing human rights and refugee concerns before people abandon their countries, and mobilizing international cooperation and funding. To address immigration and security problems in the long term, a US-led multinational initiative is needed to better equip Central American governments to confront criminal organizations and drug trafficking and to hold corrupt officials accountable.
  • Topic: Narcotics Trafficking, Immigration, Border Control, Reform
  • Political Geography: Central America
  • Author: Derek M. Scissors
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Chinese foreign investment declined through mid-2014 for the first time since the financial crisis. By sector, energy draws the most investment, but a slump in energy spending means that metals and real estate have been more prominent so far in 2014. The United States has received the most Chinese investment since 2005, followed by Australia, Canada, and Brazil. China invests first in large, resource-rich nations but has also diversified by spending more than $200 billion elsewhere. Chinese investment benefits both China and the recipient nation, but host countries must consider thorny issues like Chinese cyberespionage and subsidies.
  • Topic: Economics, Human Rights, International Trade and Finance, Terrorism, Foreign Direct Investment
  • Political Geography: United States, China, Canada, Asia, Brazil, Australia
  • Author: J. Bruce Jacobs
  • Publication Date: 06-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: China has recently attempted to use military force to back up alleged historical claims to the South China Sea and East China Sea; however, upon closer examination, the claims do not hold up. China's belligerent attempts to enforce its claims in the South and East China Seas endanger peace in Asia. China appears unlikely to accept any reasonable proposals that respect history and geography. Southeast Asian nations and other interested countries, like the United States and Australia, must maintain a military presence to deter Chinese aggression while attempting to negotiate a peaceful settlement with China.
  • Topic: International Law, Sovereignty, History, Territorial Disputes, Governance
  • Political Geography: United States, China, Asia, Australia, East China, South China
  • Author: Roger F. Noriega
  • Publication Date: 02-2014
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: El Salvador will choose a new president in a runoff election on March 9. The nation's decision may prove critical to Salvadoran democracy and regional security, in light of substantial evidence linking the ruling party candidate to narcotraffickers, terrorist groups, and violent street gangs. Moreover, foreign interference in the form of billions of dollars in Venezuelan oil revenues has given the ruling party an advantage, despite the fact that its economic policies have increased poverty and stunted economic growth.
  • Topic: Corruption, Crime, Democratization, Narcotics Trafficking
  • Political Geography: Latin America
  • Author: Dorothée Fouchaux
  • Publication Date: 02-2014
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The following National Security Outlook is the ninth in AEI's Hard Power series, a project of the Marilyn Ware Center for Security Studies. In it, Dorothée Fouchaux examines the state of French forces and France's most recent effort to prioritize its strategic goals and square them with its military capabilities.1 Certainly since Charles de Gaulle's presidency, France has maintained a tradition of thinking strategically for itself-often, admittedly, to the aggravation of its allies. This tradition remains strong and, if anything, has been reinforced in recent years by the sense that the United States is pivoting away from Europe and would like to reduce its footprint in Europe's troubled periphery. With its latest defense white paper, Paris has laid out a program to maintain its "strategic autonomy" through a combination of nuclear deterrence, enhanced intelligence efforts, and discrete power-projection capabilities. But France faces flat defense budgets, the increased cost of its military interventions in Africa, and prospects that budget shortfalls will not be overcome by the sale of public shares of national defense companies or export sales of military hardware. Consequently, some doubt that an even smaller French force will have sufficient resources to address existing problems in readiness and needed capabilities while sustaining a defense research-anddevelopment base sufficient to keep future French forces armed with advanced equipment. In short, France really is living on the strategic edge.
  • Topic: Foreign Policy, Defense Policy
  • Political Geography: Europe, France
  • Author: Michael Rubin
  • Publication Date: 01-2014
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Since Azerbaijan regained its independence in 1991, it has been only the world's second Shi'ite-led state after Iran. Azerbaijan respects separation of mosque and state, and despite pressure from its neighbors, remains independent from political domination. Given its strategic importance, safeguarding the country's independence remains a US priority. And the threat from Iranian meddling is particularly acute. From Tehran's perspective, the combination of Azerbaijan's pre-19th-century Iranian past, modern Azerbaijan's embrace of secularism, and its relative economic success challenge Iran's legitimacy. As Iranian authorities have sought to undermine and destabilize Azerbaijan through political, clerical, charitable, and media channels, Azerbaijan's counterstrategy has been both restrained and effective.
  • Topic: Foreign Policy, Islam, Sovereignty, Governance
  • Political Geography: United States, Iran, Middle East
  • Author: Leon Aron
  • Publication Date: 01-2014
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Every Olympiad is a complex and, until the end, uncertain endeavor. In the case of the 2014 Winter Games, which begin February 7 in Sochi, Russia, the challenges and vulnerabilities are far more significant and numerous than usual. It will be the first (and almost certainly the last) Winter Games in the subtropics. Virtually the entire infrastructure had to be built from scratch and in haste, with abuse of laborers and corruption overhead likely further compromising the construction. While various interest groups exploit every Olympiad to draw international attention to their causes, protests in Sochi could be particularly intense. Finally, and most ominously, Sochi is next door to a fundamentalist Islamic uprising in which terrorism claims victims almost daily. For the sake of the athletes and millions of fans, one hopes that none of these potential problems will precipitate a disruption, much less a crisis or bloodshed. Yet in their choice of location and the manner in which they have gone about organizing the Games, the Russian authorities have greatly increased that risk. By highlighting some key features and practices of Vladimir Putin's regime, a major setback at the Olympiad could deal a serious blow to the regime's legitimacy, prompt national soul searching, and trigger another round of civil resistance in search of reforms.
  • Topic: Corruption, Islam, Insurgency, Infrastructure, Governance
  • Political Geography: Russia
  • Author: Derek M. Scissors
  • Publication Date: 01-2014
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: New data published in the American Enterprise Institute-Heritage Foundation China Global Investment Tracker show that China continues to invest heavily around the world. Outward investment excluding bonds stood at $85 billion in 2013 and is likely to reach $100 billion annually by 2015. Energy, metals, and real estate are the prime targets. The United States in particular received a record of more than $14 billion in Chinese investment in 2013. Although China has shown a pattern of focusing on one region for a time then moving on to the next, the United States could prove to be a viable long-term investment location. The economic benefits of this investment flow are notable, but US policymakers (and those in other countries) should consider national security, the treatment of state-owned enterprises, and reciprocity when deciding to encourage or limit future Chinese investment.
  • Topic: Security, Foreign Policy, Development, Economics, Emerging Markets, International Trade and Finance, Foreign Direct Investment, Sovereign Wealth Funds
  • Political Geography: United States, China, Asia
  • Author: Jon Kyl, Jim Talent
  • Publication Date: 10-2013
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: When President Obama took office, the armed services of the United States had already reached a fragile state. The Navy had shrunk to its smallest size since before World War I; the Air Force was smaller, and its aircraft older, than at any time since the inception of the service. The Army was stressed by years of war; according to Secretary of Defense Robert Gates, it had been underfunded before the invasion of Iraq and was desperately in need of resources to replace its capital inventory.
  • Topic: Defense Policy, Economics, Politics, War
  • Political Geography: United States, Iraq
  • Author: John L. Kokulis
  • Publication Date: 10-2013
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The rise in military health care spending has been a primary driver of the large growth in military personnel compensation over the past decade. Left unchecked, these costs will impact the ability of the DoD's Military Health System (MHS) to support its three critical missions: 1. Readiness for deployment: Maintaining an agile, fully deployable medical force and a health care delivery system so they are capable of providing state-of-the-art health services anytime, anywhere; 2. Readiness of the fighting force: Helping commanders create and sustain the most healthy and medically prepared fighting forces anywhere; and 3. The benefits mission: Providing long-term health coaching and health care for 9.7 million DoD beneficiaries.
  • Topic: Defense Policy, Economics, Health, Governance
  • Political Geography: United States
  • Author: Aparna Mathur, Sadanand Dhume, Julissa Milligan, Hemal Shah
  • Publication Date: 10-2013
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Two decades after the end of the Cold War, US–India relations stand at a crossroads. Not so long ago, many in Washington viewed the signing of the historic US–India civil nuclear deal as the advent of a dynamic partnership with the potential to transform Asia and the world. Today US–India ties are just as often characterized as unrealistic or oversold.
  • Topic: Democratization, Development, Diplomacy, Emerging Markets, International Trade and Finance, Treaties and Agreements, Bilateral Relations
  • Political Geography: United States, South Asia, Washington, India
  • Author: Katherine Zimmerman
  • Publication Date: 09-2013
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The failure to define al Qaeda properly has confused American policy and strategy. The enemy was not just the man shot dead on May 2, 2011, in Abbottabad, Pakistan, nor is it the 1.5 billion Muslims for whom Osama bin Laden claimed to speak.
  • Topic: Political Violence, Defense Policy, Islam, Terrorism, War, Armed Struggle, Counterinsurgency
  • Political Geography: Pakistan, America
  • Author: Andrew A. Michta
  • Publication Date: 12-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The following National Security Outlook is the eighth in AEI's Hard Power series-a project of the Marilyn Ware Center for Security Studies that examines the state of the defense capabilities of America's allies and security partners. In it, Andrew Michta outlines the case of Poland, which he notes is determined both to expand its indigenous defense industrial capabilities and to increase overall defense spending. As numerous accounts of NATO defense trends over the past two decades elucidate, Poland's decision to increase defense spending is far more the exception than the rule when it comes to America's other major allies. This is largely driven, according to Michta, by Poland's desire to fend as much as it can for itself in light of what it sees as Russian revanchism and Washington's growing disengagement from Europe in defense matters. Not surprisingly, this has led to a shift in Warsaw's security agenda since Poland joined NATO in 1999. Despite Poland being one NATO ally that has responded positively to Washington's calls for increasing defense capacities, today Warsaw increasingly feels compelled to look to its own resources and to neighboring capitals as potential security partners. Whether this drift in transatlantic ties is permanent or inevitable remains an open question, and will to a large extent depend on how US security relations with Europe develop in the coming years.
  • Topic: Security, Defense Policy, NATO
  • Political Geography: Europe, Washington
  • Author: William C. Greenwalt
  • Publication Date: 12-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The Pentagon has been undergoing major procurement reform since 1984, but hoped-for results have not been achieved. Bipartisan acquisition reform legislation was passed in the 1990s, but these positive changes did not hold. At the heart of the current procurement dilemma is too much faith in central planning and too little faith in the free market. Policymakers must first remedy the incentives underlying reform, and five overarching categories are driving the misplaced incentives: trust in central planning leading to increased bureaucracy, preference for defense-unique versus commercial solutions, distrust of the defense industry and profit motives, fear that the workforce is incapable of exercising discretion, and finally, preoccupation with cost certainty and maintaining low prices over achieving results and value. By reaching out to and incentivizing the private sector, the Pentagon can help reform the procurement system by lowering costs, restoring competition, and delivering taxpayers the best value for their money.
  • Topic: Defense Policy, Economics, Markets, Reform
  • Political Geography: United States
  • Author: Bruce E. Bechtol
  • Publication Date: 11-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: South Korea is in a unique position. It is an economic powerhouse and a thriving democracy that faces the most ­ominous and imminent threat on its borders of any democracy in the world. Moreover, this is a threat that continues to evolve, with increasing missile, cyber, special operations, and nuclear capabilities and a new leader who shows no signs that he will be any less ruthless or belligerent than his father. To meet this threat, Seoul has undertaken a number of efforts to better deter and defend against North Korean capabilities and provocations, including increasing the defense budget, upping training with US forces, creating new command elements, and establishing plans for preemptive strikes against imminent North Korean missile launches. However, in part because of administration changes in Seoul, the South Korean effort has been uneven. And decisions remain to be made in the areas of missile defense, tactical fighter aircraft, and command-and-control arrangements that will be significant for not only South Korea but all states that have an interest in Northeast Asia's peace and stability.
  • Topic: Conflict Resolution, Security, Democratization, Development, Emerging Markets, Nuclear Weapons, Bilateral Relations, Territorial Disputes
  • Political Geography: United States, East Asia, South Korea, North Korea
  • Author: Ahmad Khalid Majidyar
  • Publication Date: 10-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The Persian Gulf states of Oman, Qatar, and the United Arab Emirates (UAE) have largely been immune to the rising tide of sectarianism that has rocked the Middle East in the wake of the Arab Spring. The three monarchies have successfully integrated their Shi'ite minority populations into their countries' sociopolitical and economic spheres, giving those populations little reason to engage in violence or seek political guidance from Iran or Iraq. Omani, Qatari, and Emirati Shi'ites strongly identify themselves as citizens of their respective countries and remain loyal to their ruling regimes. However, the spillover effects of the Syrian civil war—a sectarian conflict between the Shi'ite Iran-Hezbollah-Assad axis and the opposition groups backed by regional Sunni governments—are threatening Sunni-Shi'ite stability in the UAE, Qatar, and to a lesser degree, Oman. The United States should help maintain harmony in these states by reaching out to independent Shi'ite business communities and by working with regional leaders to ensure equal citizenship, political rights, and religious freedom among minority populations.
  • Topic: Conflict Prevention, Security, Islam, Post Colonialism, Insurgency, Sectarian violence
  • Political Geography: Iraq, Middle East, Arabia, Oman, United Arab Emirates
  • Author: Leon Aron
  • Publication Date: 10-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The 2008–09 financial crisis demonstrated that gas and oil exports could no longer serve as Russia's engine of economic progress and the source of a steady rise in personal incomes. Russia needed to dramatically change its investment climate through deep institutional reforms that would boost economic liberty, expand the rule of law and property rights, diminish corruption, and create more political choices for its citizens. Such reforms are all the more urgent now as Russia's economy is slowing to a crawl and trust in President Vladimir Putin is steadily declining. Yet the Kremlin has chosen to address these challenges with authoritarian consolidation, buying short-term stability at the expense of the country's longer-term prosperity and progress. Elements of the Kremlin's massive propaganda campaign include militarized patriotism and patriotic education; a selective recovery of Soviet symbols and ideals; the ultraconservative Russian Orthodox Church as the moral foundation of the regime; the promotion of a culture of subservience; and the intimidation, stigmatization, and repression of civil society and its vanguard, nongovernmental organizations. Yet instead of producing the consolidation and unity expected by the Kremlin, this campaign may yield polarization, radicalism, and violence that will prevent the country's peaceful and inclusive transition to a more dignified version of citizenship.
  • Topic: Corruption, Emerging Markets, International Trade and Finance, Oil, Natural Resources, Governance, Authoritarianism, Reform
  • Political Geography: Russia
  • Author: Patrick Keller
  • Publication Date: 10-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The "grand narrative" of German security policy since the end of the Cold War has oscillated between Germany's reluctance to use hard power and Germany's desire to be seen as supportive of its American and European allies. This is reflected in the varying decisions it has made during foreign military operations and in the manner in which Germany's military has conducted those operations. At the same time, the German military has undergone a series of reforms designed to modernize German forces and to make them more flexible and deployable. But a stagnant and low level of defense expenditures has made carrying out these reforms an ongoing challenge to the German military and German defense ministry. Germany has a vital interest in a stable and liberal international order and, hence, in having a military capable of helping maintain that order. As Europe's leading economic power and, increasingly, as Europe's central political actor, Germany could and should take the lead in reversing the precipitous decline in European hard power.
  • Topic: Defense Policy, Economics, International Security, Reform
  • Political Geography: Africa, Europe, Germany
  • Author: Roger F. Noriega, José Javier Lanza
  • Publication Date: 09-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: As stepped-up counternarcotics policies in Colombia and Mexico have increased pressure on regional drug trafficking networks, organized crime syndicates have relocated operations to Central America, where law enforcement agencies and institutions are ill-equipped to withstand the onslaught. These multibillion-dollar gangs are making common cause with some local politicians who are following a playbook honed by Hugo Chávez in Venezuela. The result in Venezuela was the birth of a narcostate, and similar dramas are playing out in Central America. Like Chávez, caudillos are using the democratic process to seek power, weaken institutions, and undermine the rule of law—generating turmoil that accommodates narcotrafficking. Making matters worse for Honduras is that left-wing activists abroad, in support of ousted president and Chávez acolyte Manuel Zelaya, are waging a very public campaign of outlandish claims seeking to block any US assistance to help the Honduran government resist the drug cartels. It is imperative that US policymakers vigorously support democracy, the rule of law, and antidrug programs in Honduras.
  • Topic: Corruption, Crime, Democratization, War on Drugs, Narcotics Trafficking, Fragile/Failed State
  • Political Geography: America, Latin America, Mexico
  • Author: Bryan McGrath
  • Publication Date: 09-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Despite the North Atlantic Treaty Organization (NATO) taking its name from the ocean that ties Canada and the United States to their European allies, for most of NATO's history the alliance focused primarily on land power. However, with continental Europe at peace, the drawdown in Afghanistan, the rise of general unrest in North Africa and the Levant, and the American intent to pivot toward Asia, questions are increasingly arising about the capabilities of NATO's European navies to project power and sustain operations around their eastern and southern maritime flanks. These questions have grown even more urgent in the wake of those same navies' uneven performance in the 2011 military campaign against Muammar Gaddafi's Libya. Examining the major navies of America's European allies reveals a general desire, with the exception of Germany, to maintain a broad spectrum of naval capabilities, including carriers, submarines, and surface combatants. But given the significant reduction in each country's overall defense budget, procuring new, sophisticated naval platforms has come at the cost of rapidly shrinking fleet sizes, leaving some to wonder whether what is driving the decision to sustain a broad but thin naval fleet capability is as much national pride as it is alliance strategy.
  • Topic: Foreign Policy, Defense Policy, NATO, Cold War, Treaties and Agreements, War
  • Political Geography: United States, Europe, North America
  • Author: Andrew Shearer
  • Publication Date: 08-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Like many other Western states, following the Cold War, Australia cut its defense budget, resulting in significant shortfalls in key military capabilities. Since the mid-1990s, successive Australian governments have outlined plans intended to boost the capabilities of Australia's armed forces. However, these strategic ambitions have in recent years been undercut by changes in government spending priorities and shortfalls in the national budget, jeopardizing the long-standing technological advantage Australian forces have enjoyed over other states in the region. As major Asian states such as China continue to grow their economies and modernize their armed forces, Australia must commit sufficient resources to its modernization agenda or risk losing its ability to help shape the Asia-Pacific ­security environment and risk fulfilling its role as a key US partner in America's pivot to Asia.
  • Topic: Foreign Policy, Defense Policy, Cold War, Economics, Armed Forces
  • Political Geography: Africa, United States, China, Asia, Australia
  • Author: Ahmad Khalid Majidyar
  • Publication Date: 08-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: For decades the Kingdom of Saudi Arabia has been America's indispensable ally in the Middle East, and the ­Kingdom's stability remains vital for US strategic interests in the region. While antigovernment protests in the Kingdom's Sunni-majority regions have been small and sporadic in the wake of Arab Spring, there has been an unremitting unrest in the strategic Eastern Province, home to Saudi Arabia's marginalized Shi'ite minority and major oil fields. As in the 1980s, if government repression and discrimination push the Shi'ites to extremes, some may resort to violence and terrorism, jeopardizing American interests in the region, benefitting Iran and ­al-Qaeda, disrupting the equilibrium of global oil markets, and adversely affecting economic recovery in the West. To ensure lasting stability in the Kingdom, the United States must work with the Saudi government to achieve gradual but meaningful reforms that include integrating the Shi'ites into the Kingdom's sociopolitical system.
  • Topic: Conflict Prevention, Security, Islam, Sectarian violence
  • Political Geography: United States, Middle East, Arabia, Saudi Arabia
  • Author: Michael Rubin
  • Publication Date: 08-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Kuwait is perhaps America's closest Arab ally; it remains the only country in the Middle East on whose behalf the United States went to war. Although the Islamic Republic of Iran has at times tried to leverage Kuwait's large Shi'ite minority against the Kuwaiti state, it has mostly been unsuccessful. Indeed, Kuwait's Shi'ite ­community has repeatedly worked to prove its loyalty to Kuwait. Recent political instability, however, is again opening the door for sectarian forces to undermine Kuwait and, by extension, an important pillar of US defense strategy.
  • Topic: Conflict Prevention, Defense Policy, Islam, Bilateral Relations, Sectarian violence
  • Political Geography: United States, Iran, Middle East, Arabia
  • Author: Cheryl Miller
  • Publication Date: 05-2011
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The military-civilian disconnect has been a source of increasing concern over the last few decades. National security leaders—including the commander in chief, President Barack Obama—have warned that many Americans are unaware of the military's sacrifices and its growing sense of isolation from wider society. In remarks at Duke University in September 2010, Secretary of Defense Robert Gates identified this issue as the “narrow sliver” problem, reflecting on both the achievements of America's all-volunteer force and the challenges it now faces.
  • Topic: Defense Policy, Education, Terrorism, War
  • Political Geography: New York, America
  • Author: Nicholas Eberstadt
  • Publication Date: 04-2011
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: As the leadership of the Democratic People's Republic of Korea (hereafter DPRK, or North Korea) looks to the future, economic development figures centrally in its officially proclaimed agenda. This year, as it has done every year over the past decade, the government's joint New Year editorial stressed the imperative of economic construction, broadly outlining the sorts of improvements that are to be achieved over the remainder of the current calendar year, and intoned that "The present grand onward march for the improvement of the people's standard of living demands that a full-scale offensive be launched in the overall economic front." But economic growth and development has just taken on a whole new importance in North Korean policy, one that extends beyond rhetoric: this past January, for the first time in over two decades, Pyongyang has formally unveiled a new multi-year economic plan: a 10-year "strategy plan for economic development" under a newly formed State General Bureau for Economic Development. The new economic plan is intended not only to meet the DPRK's longstanding objective of becoming a "powerful and prosperous country" [Kangsong Taeguk] by 2012 (the 100th anniversary of the birth of Kim Il Sung), but also to promote North Korea to the ranks of the "advanced countries in 2020."
  • Topic: Development, Economics, Foreign Aid
  • Political Geography: Israel, South Korea, North Korea
  • Author: Nicholas Eberstadt
  • Publication Date: 02-2011
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: This paper examines global demographic prospects to the year 2030 and assesses the influence that impending population trends may have upon economic performance in coming years for the world as a whole and the major regional economies. A reasonably reliable assessment of prospective global trends to 2030 is feasible today because the overwhelming majority of people who will be living in that future world are already here, alive today. This includes all of that future world's senior citizens and almost its entire workforce. Major changes in global population trends are in the offing--among these, a sharp slowdown in the growth of available manpower, with impending declines of manpower for some regions, and pervasive population aging. Furthermore, in many of today's important "emerging markets" demographic pressures may constrain economic growth more significantly than is currently appreciated. Coping with these looming demographic realities will require far-reaching reforms and innovations if we hope to maintain the pre-crisis tempo of global economic growth (much less accelerate it).
  • Topic: Demographics, Development, Economics, Emerging Markets, Poverty
  • Author: Charlie Szrom, Chris Harnisch
  • Publication Date: 03-2011
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The environment in which an al Qaeda affiliate operates is one of the most important factors in assessing the threat it poses to US interests. Defeating the militant Islamist network led by al Qaeda requires a nuanced strategy that supports the appropriate combination and prioritization of policies and approaches for each environment in which an al Qaeda affiliate or franchise operates. The US government has not articulated such a strategy, a deficiency that acquires urgency because terrorist groups based abroad have been linked to three attacks against the American homeland in the past year. Building a strategy to oppose the al Qaeda network requires detailed understanding of its different operating environments, the ties between its various parts, and how territory affects its vitality. A comprehensive strategy should deny the al Qaeda network access to operating environments from which it can pose a major threat to the United States and the West.
  • Topic: Defense Policy, Islam, Terrorism, Armed Struggle, Counterinsurgency
  • Political Geography: United States, America
  • Author: Roger Bate
  • Publication Date: 02-2011
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Increasing competition generally decreases product prices. But in the case of pharmaceuticals, this is only beneficial if competitor products are therapeutically equivalent (bioequivalent). One measure of quality control is a consistently made product, examined in detail in this paper. A comprehensive study of drug samples in African and Asian countries--assessed for variability by spectrometer--suggests that registered products perform notably better than unregistered products. As all of the sampled drugs are used to treat potentially lethal infections, this product variability (particularly of unregistered drugs) could prove detrimental to public health. Future analysis will assess how significant these spectral differences are in terms of drug quality and hence how important changes in policy should be to limit quality variability.
  • Topic: Emerging Markets, Health, Human Welfare, International Trade and Finance
  • Political Geography: Africa, China, Asia
  • Author: Frederick W. Kagan, Kimberly Kagan
  • Publication Date: 01-2011
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Success in Afghanistan is the establishment of a political order, security situation, and indigenous security force that is stable, viable, enduring, and able—with greatly reduced international support—to prevent Afghanistan from being a safe haven for international terrorists. The current American and Coalition strategy is making progress and should be continued. Since President Obama, NATO allies, and the Afghans have agreed that troops will be present in Afghanistan through 2014, the policy does not require substantial modifications at this point. This paper is thus primarily a report on the current situation in Afghanistan and a consideration of some of the prospects and challenges ahead. Our principal recommendation is that the U.S. and its allies should continue to resource and sustain the strategy now being executed, which is the only approach that can secure their vital national security interests in Afghanistan.
  • Topic: Conflict Resolution, Security, War
  • Political Geography: Afghanistan, America
  • Author: Apoorva Shah
  • Publication Date: 09-2011
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: In a country where two out of five citizens, about 450 million people, live in poverty, it is no exaggeration to say that the development experience of Kerala – a coastal state on the southwestern tip of India – stands out as extraordinary. Despite a history of anemic economic growth, this state of 32 million boasts effectively universal literacy rates and life expectancy levels close to many Western societies. Because of this, the “Kerala model” has been hailed by NGOs, development experts, and Western academics as an alternative path for human development in which a robust welfare system rather than economic growth drives social progress.
  • Topic: Development, Economics, Emerging Markets, Poverty
  • Political Geography: South Asia, India, Kerala
  • Author: John H. Makin
  • Publication Date: 03-2011
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The array of postbubble stresses and uncertainties identified in the January 2010 Economic Outlook (“The Year Ahead”) promised that the new year would see plenty of volatility in markets. That is exactly what is playing out as we move through the first quarter. As risks accumulate, it may be that 2010 is shaping up as a mirror image of 2009, reversing last year's down-then-up pattern with an up-then-down pattern this year.
  • Topic: Economics, International Trade and Finance, Markets, Monetary Policy, Financial Crisis
  • Political Geography: United States, Japan, China, Europe
  • Author: John H. Makin
  • Publication Date: 06-2011
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Market conditions in the United States, Japan, China, and Europe portend a weakening global economy. While not dramatic in any one region save an earthquake-burdened Japan, these conditions could accumulate to create a problematic loss of momentum for global growth, especially compared to current upbeat consensus views for the second half of 2011.
  • Topic: Economics, International Trade and Finance, Global Recession
  • Political Geography: United States, Japan, China, Europe
  • Author: Gary J. Schmitt, Thomas Donnelly
  • Publication Date: 07-2011
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: National security is neither a "sacred cow" nor just another federal budget line item. Providing for the common defense of the American people and our homeland is the primary responsibility of policymakers in Washington. However, in an effort to protect social entitlements like Medicare, Medicaid, Social Security and the health care reform law from serious deficit and debt reduction efforts, President Obama has proposed not only to raise taxes, but also to cut another $400 billion more from future national security spending. As Obama said on June 29, 2011, "[Outgoing Secretary of Defense] Bob Gates has already done a good job identifying $400 billion in cuts, but we're going to do more."
  • Topic: Defense Policy, Arms Control and Proliferation, Debt, War
  • Political Geography: United States, America, Washington
  • Author: Gary J. Schmitt, Thomas Donnelly
  • Publication Date: 03-2011
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Over the past year, actions by the People‘s Republic of China (PRC) have called into question its previous assertions that its rise to great-power status would be peaceful. Whether it was scolding countries around the world about the Nobel Peace Prize awarded to Chinese dissident Liu Xiabo, declaring that its ?core interests? now included some 1.3 million square miles of the South China Sea, dismissing complaints of neighbors as failing to recognize that "China is a big country," ignoring North Korean acts of terror, challenging U.S. naval ships on the high seas, creating new confrontations with Japan over disputed islands, slashing its export of rare earth elements, continuing cyber attacks on American defense and commercial entities, or testing a new stealth fighter during the visit of the American secretary of defense, the picture that emerges is of a China that believes it can now throw its considerable economic and military weight around. It‘s a challenge that the U.S. has been slow to meet and, as a result, led to considerable uncertainty among friends and allies about whether the U.S. is up to that challenge—uncertainty fed in no small measure by prospects of a declining American defense budget.
  • Topic: Defense Policy, Arms Control and Proliferation
  • Political Geography: China, America
  • Publication Date: 11-2011
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The future of America's national security hangs in the balance. Facing a looming Thanksgiving deadline, a select bipartisan panel of 12 lawmakers is struggling to hammer out legislation that would reduce the federal deficit by more than $1.2 trillion over the next 10 years. However, it remains unclear if they will succeed.
  • Topic: Defense Policy, Debt
  • Political Geography: United States, America
  • Author: James W. Ceaser
  • Publication Date: 01-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: What in the writings of Alexis de Tocqueville could conceivably be thought to offer any guidance for the study of contemporary China? Tocqueville was born early in the nineteenth century (1805) at a time when China lay in near total isolation from Europe. Matters changed during Tocqueville's lifetime with the so-called Opium War (1839–41), in which China suffered a humiliating defeat at the hands of Great Britain. This reversal helped set in motion a series of events that led to the destabilization of the Manchu (or Qing) dynasty, which eventually fell in 1911. Tocqueville commented in his personal notes on a few of the early occurrences in this sequence, but he never undertook an extensive analysis of developments in the Far East. His focus in his published works was on the West, or what he often called “the Christian world.”
  • Topic: Foreign Policy, Markets, Religion
  • Political Geography: Britain, United States, China, Europe
  • Author: Robert Klitgaard
  • Publication Date: 03-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: In the aftermath of the disastrous earthquake of January 12, 2010, Haiti will receive unprecedented aid for reconstruction and for its promising economic strategy. But given the country's legacy of corruption, massive aid could simply result in another massive Haitian failure. Success hinges on facing corruption squarely and developing a hard-headed, politically sensitive anticorruption strategy. How this could be done, given Haiti's realities and lessons from fighting corruption around the world, is the subject of this paper.
  • Topic: Corruption, Development, Foreign Aid, Governance
  • Political Geography: Caribbean, Haiti
  • Author: Neena Shenai
  • Publication Date: 02-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: This paper proposes reforms to the legal framework of the U.S. export control system. By examining the existing legal structure of dual-use and defense trade controls and its shortcomings, the paper considers how other U.S. legal regimes could provide models for ongoing reform efforts being undertaken by the Obama Administration and Congress. The paper proposes certain reforms, including the institution of added administrative safeguards and limited judicial review, to improve the current system.
  • Topic: Foreign Policy, International Trade and Finance, Political Economy
  • Political Geography: United States
  • Author: Thomas Donnelly, Tim Sullivan
  • Publication Date: 02-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The 2010 Quadrennial Defense Review Report (QDR) and the Fiscal Year 2011 defense budget proposal reveal a critical contradiction at the heart of the Obama Administration's national security policy. As the second sentence of the QDR states, "first and foremost, the United States is a nation at war." But the remainder of the report and, more importantly, the long-term budget, reflect an administration more interested in ending wars than winning them, and prepared to defer the modernization of the military resources necessary to maintain American leadership in the face of emerging threats. AEI's Center for Defense Studies (CDS) has developed a presentation, narrated by CDS director Tom Donnelly, assessing the key shortfalls of the QDR and the administration's defense budget proposal.
  • Topic: Political Economy, Politics, War
  • Political Geography: United States
  • Author: Jeffrey Mankoff
  • Publication Date: 01-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Like much of the world, Russia has been in the midst of a serious economic crisis since the late summer of 2008. Although the worst appears to be over, Russia will continue to feel its effects longer than many other industrialized countries, largely because of a rigid economy burdened with an overweening state role. The recognition that Russia faces serious long-term challenges has emboldened President Dmitry Medvedev and others to call for far-reaching economic restructuring. If successful, their economic policies could undermine the semi-authoritarian, state- capitalist model developed under Prime Minister and former president Vladimir Putin. Although concrete reforms have so far been limited, Medvedev's demands for change (seconded in some cases by Putin) have acquired increasing momentum in recent months. The speed of Russia's recovery and obstacles along the way will play a major role in determining both the success of Medvedev's call for modernization and the course of Russia's foreign policy since a quicker recovery would diminish the pressure for fundamental reform and lessen the need for caution internationally.
  • Topic: Demographics, Human Welfare, Population
  • Political Geography: Russia
  • Author: Amy E. Gadsden
  • Publication Date: 07-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Fifteen years ago, international aid agencies interested in doing development projects in China would begin their efforts with a fairly predictable series of meetings. A delegation from the organization would arrive in Beijing to meet with embassy officials, Chinese ministry officials, and the same small band of Chinese and foreign development experts who pioneered work in the late 1980s and 1990s in areas such as commercial law reform and rural development.
  • Topic: Development
  • Political Geography: China, Beijing
  • Author: Nicholas Eberstadt, Laura M. Kelley
  • Publication Date: 04-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: This paper examines the potential impact of HIV/AIDS on different levels of South African society (individual, household, and national) over time. Using differences in demographic projections to guide the analysis, the prospective implications of HIV/AIDS on households, society, economy and nation are discussed and issues that could influence or mitigate those possible impacts are examined. We outline the challenges that South Africa will likely face due to the effects of its AIDS-related excess mortality and conclude that programs delivering a broader variety of services than are currently offered are needed for South Africa to emerge a prosperous, regional power by mid-century. Inadequacies of current HIV/AIDS relief programs are broadly considered and suggestions are offered for improvement. We argue that a fundamental shift in the focus of HIV/AIDS strategies to include consideration of the needs of the survivors of this pandemic, and the world they will live in, is urgently necessary.
  • Topic: Health
  • Political Geography: Africa, South Africa
  • Author: Michael Auslin
  • Publication Date: 12-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Ensuring security in the Indo-Pacific region will be the primary foreign policy challenge for the United States and liberal nations over the next generation. Doing so successfully will provide the greatest economic and political opportunities for the next quarter century. Conversely, a failure to maintain stability, support liberal regimes, create cooperative regional relations, and uphold norms and standards of international behavior will lead to a region, and world, of greater uncertainty, insecurity, and instability. Due to its economic strength, military power, and political dynamism, the Indo-Pacific will be the world's most important region in coming decades, and its significance will be felt throughout the globe. Since the end of World War II, it has transformed itself into the world's economic powerhouse, yet has also witnessed a struggle between tides of liberalism, authoritarianism, and even totalitarianism. It remains riven by distrust, territorial disputes, ethnic tensions, and painful historical memories. The Indo-Pacific's unique geography makes the balance of regional security most vulnerable in its "commons": the open seas, air lanes, and cyber networks that link the region together and to the world.
  • Topic: Security, Development, Emerging Markets, Governance
  • Political Geography: United States, China, India, Australia/Pacific
  • Author: Tim Sullivan
  • Publication Date: 11-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: As home to a number of the world's most dynamic economies, two rising powers, and six nuclear states, Asia is a region of enormous strategic importance to the United States. For over six decades, America has functioned as the preeminent power in Asia, playing a vital role in providing security and ensuring a stable balance of power that has allowed the region's states to flourish politically and economically. The U.S. security framework in the region has rested historically upon a series of bilateral alliances and strategic partnerships. The arrangement has impressively stood the test of time despite concerns that the lack of an overarching, multilateral security architecture would lead to inefficiencies in the United States' pursuit of regional stability.
  • Topic: Defense Policy, Arms Control and Proliferation, Emerging Markets, Nuclear Weapons
  • Political Geography: United States, Asia
  • Author: John H. Makin
  • Publication Date: 04-2010
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: January ended on a note of diminished hope for a sustainable global recovery as stock markets retreated from their midmonth highs. Since mid-February, however, higher hopes for a sustainable global recovery have returned. Equity markets have rallied along with markets for corporate and global sovereign bonds. Some mitigation of perceived risks facing global investors has provided a chance for hope to “float up,” and it has done so. Tension over the cohesion of the European Monetary Union and, in particular, concerns over a possible sovereign-debt default by Greece have eased, and investors continue to hope that the debt problems in Greece will not spread to the rest of Europe.
  • Topic: Economics, International Political Economy, International Trade and Finance, Markets, Financial Crisis
  • Political Geography: Europe, Greece
  • Author: John H. Makin
  • Publication Date: 02-2010
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: February always brings with it the president's proposals for taxing and spending in the coming fiscal year. The president's budget proposals are accompanied by congressional and administration estimates of the path deficits and government debt are expected to take in coming years. Last year, those projections, especially a three-year string of actual and projected deficits over a trillion dollars from 2009 through 2011, excited widespread comment and handwringing about runaway deficits and their allegedly damaging effects in the form of lower growth, higher inflation, and higher interest rates.
  • Topic: Debt, Economics, Political Economy, Politics
  • Political Geography: United States
  • Author: John H. Makin
  • Publication Date: 01-2010
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: We can expect 2010 to be a volatile year. This likelihood is underscored by looking back at 2008 and 2009. Two thousand eight was a highly volatile year leading up to the collapse of Lehman Brothers in September, which was followed by the risk of a total systemic meltdown. That sharp and obvious risk spike prompted massive policy responses that were simply the largest that central banks, with rate cuts and liquidity provision, and governments, with tax cuts and spending increases, could manage. The result—beginning in March 2009—was a linear rise in the prices of risky assets, the result of massive relief once the slip into a global depression had been averted and the acute phase of the crisis in the financial sector had passed.
  • Topic: Economics, International Trade and Finance, Markets, Financial Crisis
  • Political Geography: United States, Japan, China, Europe
  • Author: Thomas P. Gies
  • Publication Date: 04-2010
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: How might recess appointments to the National Labor Relations Board (NLRB) affect federal labor law? Controversial appointee Craig Becker is known for advocating policies that fall outside the mainstream view of labor laws. Although the views of one member of the NLRB will not automatically translate into dramatic policy changes, concerns that members of the NLRB may rewrite important principles of federal labor laws through litigation are not unfounded. Whether President Barack Obama's NLRB would be able to enact key provisions of the Employee Free Choice Act through litigation rather than congressional action remains to be seen.
  • Topic: Labor Issues, Law
  • Political Geography: United States
  • Publication Date: 10-2010
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Since the end of the Cold War, administrations of both political parties have underfunded the military, first harvesting a "peace dividend" by reducing the size of the force and then repeatedly postponing investments needed to replace worn out equipment and preserve the technological advantages that have been a traditional source of American strength. Now, just as this strain on the military--engaged in today's persistent irregular wars, yet unable to prepare fully for the wars of the future--reaches a point of crisis, come new calls to cut the Defense Department's budget, amplified by the fears of a faltering economy, the federal government's desire to boost spending elsewhere, and its inability to rein in other spending. Yet the arguments frequently made for Pentagon spending cuts are concocted from a mix of faulty analysis and out-of-context "facts."
  • Topic: Defense Policy, Arms Control and Proliferation, Debt
  • Political Geography: United States
  • Author: H. E. Frech III
  • Publication Date: 02-2009
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The OECD has undertaken an ambitious large-scale statistical analysis of the determinants of health and the relative efficiency of the health care systems of various OECD member countries (Jourmard, André, Nicq and Chatal 2008). The Report makes a useful contribution to a continuing stream of literature that focuses on health outcomes, rather than cost. While the primary emphasis of the Report is on new statistical analysis, it includes a valuable, though spotty, literature review.
  • Topic: Economics, Environment, Health
  • Author: Kevin A. Hassett
  • Publication Date: 03-2009
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: This paper reviews the empirical literature on countercyclical policy. It finds that three types of countercyclical policies have been studied in the literature: built in stabilizers, temporary policy changes, and more permanent policy changes. The literature is decidedly mixed on the effectiveness of temporary changes, but more hopeful concerning the other two.
  • Topic: Debt, Economics, Markets, Political Economy
  • Political Geography: United States
  • Author: Hassan Mneimneh
  • Publication Date: 05-2009
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: September 11, 2001, marked the coming to the fore of the “jihadist international,” a loosely connected movement of militant and terrorist groups worldwide with a common ideology and increasingly shared tactics and methods. While such groups still have limited recruitment potential eight years on, they have inflicted substantial physical damage and have forced free societies to take costly precautionary measures. Perhaps most alarming, the global jihadist movement has continued simultaneously to feed off of and perpetuate the growing radicalization that Muslim culture has endured over the last few decades.
  • Topic: Islam, Terrorism
  • Political Geography: Iraq, Middle East, Arabia
  • Author: Robert T. Gannett Jr.
  • Publication Date: 04-2009
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Despite the aftershocks of a natural disaster, the economy of the region's most populous nation still manages to produce unprecedented prosperity for its citizens. Its government is omnipresent, fueling this growth by building roads, canals, and new manufacturing plants, while seeking to eradicate collective constraints of a bygone era. Individuals respond to the new economic opportunities by becoming more industrious, more inventive, more acquisitive, more bourgeois, more capitalist. In the midst of such sudden economic transformation, the government struggles to maintain political stability. When protests erupt in the countryside, it suppresses them or co-opts their leaders. In an effort to reduce political tension, it allows a measure of personal liberty and speaks frequently of the need for reforms. It recognizes the importance of public opinion, doing everything it can to cultivate, manage, and control its expanding influence, especially in times of crisis and when the nation finds itself on the world stage. It frequently remodels administrative rules and habits applying to the whole nation, issuing edicts from the center that are routinely ignored in the provinces. And to the surprise of all, it launches a new system for the whole nation of local assemblies chosen by local voters, while inviting all residents to express and address local grievances in each of even its tiniest far-flung villages.
  • Topic: Communism, Democratization
  • Political Geography: China, Asia
  • Author: Roger Bate, Richard Tren, Thompson Ayodele, Kimberly Hess, Olusegun Sotola
  • Publication Date: 08-2009
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: For decades, Nigeria has been plagued by counterfeit and poor-quality medicines, yet little information exists on the extent to which healthcare personnel are aw are of counterfeit and substandard medicines, and how this influences their behavior.
  • Topic: Crime, War on Drugs, Narcotics Trafficking
  • Political Geography: Africa, Nigeria
  • Author: Dan Blumenthal, Gary J. Schmitt, Michael Mazza, Randall Schriver, Mark Stokes
  • Publication Date: 08-2009
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Taiwan is a great success story. It is a prosperous, thriving democracy living at peace—and it wants to remain at peace. A recent poll shows that more than 90 percent of Taiwanese support maintaining the “status quo,” meaning principally that an overwhelming majority of the island's citizens wants to avoid a conflict with the mainland if at all possible while retaining their de facto sovereignty.
  • Topic: Defense Policy, Diplomacy, Peace Studies, Bilateral Relations
  • Political Geography: Israel, Taiwan, Asia
  • Author: Martin S. Feldstein
  • Publication Date: 08-2009
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: This paper comments on the experience of the U.S. economy in the 1930s, its lessons for managing the current economic downturn, and the relation of U.S. economic conditions to our future national security. Some of the conclusions are: (1) Although the current recession will be long and very damaging, it is not likely to deteriorate into conditions similar to the Depression of the 1930s. Policy makers now understand better than they did in the 1930s what needs to be done and what needs to be avoided. (2) The focus on domestic economic policies in the 1930s and the desire to remain militarily neutral delayed the major military buildup that eventually achieved the economic recovery. (3) A well-functioning system of bank lending is necessary for economic expansion. We have yet to achieve that in the current situation. (4) Raising taxes, even future taxes, can depress economic activity. The administration's budget proposes to raise tax rates on higher income individuals, on dividends and capital gains, on corporate profits and on all consumers through the cap and trade system of implicit CO2 taxes. (5) Inappropriate trade policies and domestic policies that affect the exchange rate can hurt our allies, leading to conflicts that spill over from economics to impair national security cooperation. Reducing long-term U.S. fiscal deficits would reduce the risk of inflation and thereby reduce the fear among foreign investors that their dollar investments will lose their purchasing power. (6) The possibilities for domestic terrorism and of cyber attacks creates risks that did not exist in the 1930s or even in more recent decades. The scale and funding of the FBI and the Department of Homeland Security is not consistent with these new risks.
  • Topic: Economics, International Trade and Finance, Terrorism, Financial Crisis
  • Political Geography: United States
  • Author: Philip I. Levy
  • Publication Date: 10-2009
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Bilateral free trade agreements have generally been analyzed as instances of preferential reciprocal tariff liberalization. Viewed through this lens, such agreements raise concerns both about new competition and about trade diversion. The United States-Peru Trade Promotion Agreement, an example of a serious North-South accord, demonstrates that new market access was not a principal Peruvian goal in the trade negotiations. Instead, the agreement was intended to encourage investment by locking in Peru's economic reforms. This motivation has very different implications for the global trading system than a quest for preferential access.
  • Topic: International Trade and Finance, Markets, Treaties and Agreements
  • Political Geography: United States, Latin America, Peru
  • Author: John H. Makin
  • Publication Date: 01-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: On December 16, 2008, Federal Reserve chairman Ben Bernanke exercised decisive leadership at a watershed meeting of the Federal Open Market Committee (FOMC). In its official statement after the meeting, the committee pledged to “employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability.” The pledge to preserve price stability was not a commitment to fight inflation, as is typical, but a highly unusual commitment to fight deflation.
  • Topic: Economics, Markets, Political Economy
  • Political Geography: United States
  • Author: John H. Makin
  • Publication Date: 02-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The global financial and economic crisis that emerged in August 2007 has entered a dismaying fourth phase. The January 17–18, 2009, weekend edition of the Financial Times, which has been a major chronicler of the crisis and its many aspects, laid out a frightening timeline of an accelerating and intensifying oscillatory cycle of crisis and failed policy response that started just fifteen months ago. Each phase begins with a shock and ends with a seemingly decisive policy measure meant to contain or “fix” the crisis. Each phase is shorter than the previous one and culminates in a much larger policy response. Throughout the crisis, the losses of financial institutions have steadily grown at an accelerating pace as the underlying conditions in the financial sector and, since September 2008, in the underlying global economy deteriorate more rapidly. Such a disturbing pattern must be truncated by a large, coordinated global policy response to arrest the accelerating erosion of the market capitalization of multinational banks and insurance companies that has resulted.
  • Topic: Debt, Economics, Markets, Political Economy
  • Political Geography: United States
  • Author: John H. Makin
  • Publication Date: 03-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: As the global financial and economic crisis has grown increasingly dire—the deterioration just since the November U.S. election is breathtaking—market participants and policymakers alike have looked to three past crisis models as part of an intensifying search for ways out of the current crisis. First, the Great Depression of the 1930s is being examined ever more closely for possible lessons now that commentators have moved past an under- standable reluctance to mention that experience as relevant to today's situation. Second, the Scandinavian financial crisis of the early 1990s, which included a proactive move toward bank nationalization by the Swedish government, is also widely discussed. Finally, many allusions have been made to the disquieting parallels between today's U.S. experience and that of Japan during its “lost decade” (1991–2001) of recession and deflation, especially after 1998.
  • Topic: Economics, Markets
  • Political Geography: United States, Japan
  • Author: John H. Makin
  • Publication Date: 04-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: On March 18, Federal Reserve chairman Ben Bernanke intensified the important battle against global deflation with a commitment to expand the Fed's balance sheet by an extra $1.15 trillion. With some luck and persistence, that step could boost growth by a percentage point or more and, even more important, substantially reduce the risk of deflation.
  • Topic: Economics, Markets, Political Economy
  • Political Geography: United States
  • Author: Kenneth P. Green, Ben Eisen
  • Publication Date: 06-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Canadians have much to celebrate concerning their natural environment. Over the past 30 years, Canada's air and water have become cleaner, ecosystems and timberlands have been preserved, and soils that feed not only Canadians but also many others around the world have been protected. This has happened while Canada's population and economy have grown strongly, which has propelled Canada, a country of only 33 million, to the status of an economic powerhouse with a standard of living that is the envy of much of the world. There is still more that can be done, but Canada is well on the way toward environmental sustainability.
  • Topic: Climate Change, Environment, Oil
  • Political Geography: Canada, North America
  • Author: Kenneth P. Green, Steven F. Hayward
  • Publication Date: 12-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: AEI's environmental team has been especially busy lately responding to numerous press inquiries about the “Climategate” scandal. We reprint below two pieces, one by Steven F. Hayward that appeared in The Weekly Standard, and another by Kenneth P. Green, which appeared on The American. Hayward's piece was mentioned prominently on Fox News Sunday. Green also testified on the science of global warming recently before the Senate Committee on Finance. In addition, Samuel Thernstrom and Lee Lane, who are codirecting AEI's Geo engineering Project, have been following the developments and commenting on them. AEI released an updated version of its Public Opinion Study “Polls on the Environment and Global Warming,” which shows that, even before the latest controversy, opinion about the seriousness of global warming had declined sharply in several recent polls.
  • Topic: Climate Change, Environment, Science and Technology
  • Political Geography: America
  • Author: Bryan E. Dowd
  • Publication Date: 11-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Congressional mismanagement of Medicare is a bipartisan project in which Democrats and Republicans set aside the rancor of party politics and ideological differences and work hand in hand to run the program into the ground. The latest attempts to "fix" physician payments by replacing a sizeable cut in Medicare fees with a small increase provide the evidence.
  • Topic: Debt, Health, Markets, Politics
  • Author: Ronald W. Reagan
  • Publication Date: 11-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: In 1988, as he was about to step down as president, Ronald Reagan received the Francis Boyer Award, AEI's highest honor. He chose for the theme of his speech that December evening, eleven months before the Berlin Wall fell, the struggle of people everywhere for freedom. In his speech, he anticipated the momentous events that would occur in 1989: “So while our hopes today are for a new era, let us remember that if that new era is indeed upon us, there was nothing inevitable about it. It was the result of hard work—and of resolve and sacrifice on the part of those who love freedom and dare to strive for it.” Freedom works, he said. He saluted the Solzhenitsyns, the Sakharovs, and the Sharanskys, saying, “We have seen the thrilling spectacle of mankind refusing to accept the shackles placed upon us.” As we recall the events of November 1989, it is important to remember the struggle and to recommit ourselves to the hard work of extending freedom to those who have yet to enjoy its blessings.
  • Topic: Conflict Resolution, Cold War, Power Politics
  • Political Geography: Russia, United States, Berlin
  • Author: Christopher DeMuth
  • Publication Date: 10-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: AEI senior fellow Irving Kristol—godfather of the neoconservative movement and one of the towering intellectual figures of the twentieth century—died peacefully on September 18 at the age of eighty-nine. Mr. Kristol's connection to AEI began long before he became a full-time scholar at the Institute in 1988. In 1973, he gave the first of AEI's Distinguished Lectures on the Bicentennial of the United States. The lectures were delivered at historic sites around the country, and Mr. Kristol's lecture, “The American Revolution as a Successful Revolution,” was given at St. John's Church in Washington, where many of the nation's presidents have worshipped. We reprint excerpts from it below after a tribute to him written by Christopher DeMuth, the D. C. Searle Senior Fellow at AEI.
  • Topic: Cold War, Politics, International Affairs, Political Theory
  • Political Geography: United States, Washington
  • Author: John H. Makin, Vincent R. Reinhart, Peter J. Wallison
  • Publication Date: 09-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: One year ago, on September 14, Lehman Brothers declared bankruptcy. The next day the Dow fell five hundred points. Soon thereafter, the government essentially nationalized AIG, made Goldman Sachs and Morgan Stanley into bank-holding companies, and petitioned Congress for aid. In early September, Fannie Mae and Freddie Mac had been placed in government conservatorship. These events followed the bursting of the housing bubble. We present here three essays written by AEI scholars in the spring and summer of 2009 on the origins of the financial crisis whose reverberations we continue to feel today. Vincent R. Reinhart sets the stage by reminding us of the importance of getting the story of what happened right, as policy recommendations flow from our understanding of what occurred. He also tells us that “the narrative first written about the Great Depression was wrong in many important respects.” John H. Makin and Peter J. Wallison focus on the misguided policies that contributed to the crisis. In a new Economic Outlook, Makin discusses three important lessons of the financial crisis that should be understood in order to enable a faster, more effective policy response to future crises.
  • Topic: Economics, Markets, Financial Crisis
  • Author: John H. Makin
  • Publication Date: 08-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: China's economic statistics have become the envy of the world. On July 15, China reported a 7.9 percent growth rate for the second quarter of 2009 compared to the same period a year earlier. Meanwhile, China's stock markets are on fire, and its property markets are heating up fast as well. Shanghai's two stock markets are up 75 percent and 95 percent respectively so far this year. The more widely traded Hong Kong Index is up 27 percent, a stellar performance compared to largely flat stock markets in the United States, Europe, and Japan. In even stronger contrast, Russia, which is one of China's emerging-market peers, has seen its economy drop by 10.1 percent during the first half of this year, while its stock market has struggled as well.
  • Topic: Economics, Emerging Markets, International Political Economy
  • Political Geography: Russia, United States, Japan, China, Europe, Hong Kong
  • Author: John H. Makin
  • Publication Date: 05-2009
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Governor Zhou Xiaochuan's comment is an open acknowledgement that the “adverse feedback loop,” in which financial-sector problems hurt the real economy, which in turn intensifies negative conditions in finance, has hit China hard. China's real growth rate, which peaked at 13 percent in 2007 and is heavily dependent on exports, plunged to 6.1 percent on a year-over-year basis in the first quarter of 2009. Nominal growth, a measure of the current money value of goods and services, fell even more sharply, from 21.4 percent in 2007 to 3.6 percent in the first quarter of this year. The fact that the nominal growth rate is 2.5 percent below the real growth rate suggests that, at least as far as output is concerned, deflation has taken hold at a 2.5 percent rate in China.
  • Topic: Economics, Emerging Markets, International Political Economy
  • Political Geography: China