The Art of Foreign Policy Punditry
Foreign Policy magazine performs an important public service, publishing a compendium of the “top 10 worst predictions for 2009.” My favorite?
“If we do nothing, I can guarantee you that within a decade, a communist Chinese regime that hates democracy and sees America as its primary enemy will dominate the tiny country of Panama, and thus dominate the Panama Canal, one of the world‘s most important strategic points.“
—Rep. Dana Rohrabacher (R-Calif.), Dec. 7, 1999
Rohrabacher made this alarming prediction during a debate on the U.S. handover of the Panama Canal. His fellow hawk, retired Adm. Thomas Moorer, even warned that China could sneak missiles into Panama and use the country as a staging ground for an attack on the United States. Well, Rohrabacher’s decade ran out this December, and all remains quiet on the Panamanian front. As for China, the United States is now its largest trading partner.

Flowers and Chocolates?
The point here isn’t to poke fun at Rohrabacher, or any of the other predictors featured on the FP list. Rather, it’s to point out that predicting the future is really hard. And as Ben Friedman and I have harped on, you just can’t aspire to any predictive competence without sound theory to guide you. In order to judge that if we do (or don’t do) X, Y will happen, you need a theory connecting X to Y. So looking back at our predictions, and comparing them to the results of our policies, is a useful way to test the theories on which we based our policies in the first place.
Filed under: Foreign Policy and National Security; General; Government and Politics; Political Philosophy
Is Trade Policy Obsolete?
That is one of the conclusions in my new paper, “Made on Earth: How Global Economic Integration Renders Trade Policy Obsolete.”
For hundreds of years, trade policy has been premised on the assumptions that exports are good, imports are bad, and the interests of domestic producers are tantamount to the “national interest.” Though that mercantilist worldview has never been accurate, its persistence as a pillar of trade policy into the 21st century is especially confounding given the emergence and proliferation of disaggregated production processes, transnational supply chains, and cross-border investment. Those trends have blurred any meaningful distinctions between “our” producers and “their” producers and speak to a long chain of interdependent economic interests between product conception and consumption.
Filed under: General; International Economics and Development; Trade and Immigration
McCain: Interests of Defense Contractors May Conflict with US National Interest
USA Today reports that retired military officers join the boards of directors of, or become employees of, defense contractors and take home big bags of money doing so. Not surprising. At the same time, the paper reports, lots of them are being paid by the Pentagon to be “senior mentors” of their former colleagues. Not being government employees, but rather independent contractors, these folks aren’t subject to government ethics rules. To take one example, as chairman of BAE Systems, Gen. Anthony Zinni is clearing almost a million a year, in addition to his $129,000 per year government pension. In addition to all that, the Pentagon pays him about $2,000 per day to “mentor” people at DOD.
As the article points out, information is almost invaluable to the defense contractors in these contexts. The knowledge of what’s going on at DOD is extremely useful for planners at the defense companies, and so while the retired officers are protesting that being paid nearly $2,000 per day by DOD for their work as mentors is “way below the industry average,” it increases their value to, and presumably their compensation from, their military-industrial employers. As one coordinator of the mentors program told the retired officers, “you’re getting paid in two ways–monetarily and informationally.”
This isn’t too surprising a story, but the crowning irony comes as Sen. John McCain calls for an ethics rewrite and offers his view that “the important thing is that [the involved officers] avoid the appearance of conflict.” This is a puzzling remark coming from a man whose top foreign-policy adviser was collecting hundreds of thousands of dollars from the Georgian government to lobby McCain at the same time he was being paid by McCain to advise him on foreign policy.
McCain’s thoughts about conflict of interest in that instance? He was “so proud” of his lobbyist-cum-adviser. Presumably once McCain issued his ridiculous “today we are all Georgians” fatwa it became a patriotic duty to take money from foreign governments to represent their interests. But in the case of the proposed reforms–which would attempt to institute some semblance of transparency in these mentoring deals–one can only wish the senator from Arizona the best.
Limited Options in Dealing with Iran
The revelation last week of a second secret Iranian nuclear facility, and Iran’s test firings over the weekend of its short and medium range missiles, bring a new sense of urgency to the long-scheduled talks between Iran and the P-5 + 1 beginning on Thursday in Geneva. Many in Washington hope that a new round of tough sanctions, supported by all of the major powers including Russia and China, might finally convince the Iranians to abandon their nuclear program.
Such hopes are naive.
Even multilateral sanctions have an uneven track record, at best. It is difficult to convince a regime to reverse itself when a very high-profile initiative hangs in the balance, and Iran’s nuclear program clearly qualifies. It is particularly unrealistic given that the many years of economic and diplomatic pressure exerted on Tehran by the U.S. government have only in emboldened the regime and marginalized reformers and democracy advocates, who are cast by the regime as lackeys of the United States and the West.
But whereas sanctions are likely to fail, war with Iran would be even worse. As Secretary Gates admitted on Sunday, air strikes against Iranian nuclear facilities would merely degrade and perhaps delay, not eliminate, Iran’s program. Such attacks would inevitably result in civilian casualties, allowing Ahmadinejad to rally public support for his weak regime. What’s more, the likelihood of escalation following a military attack — which could take the form of asymmetric attacks in the Persian Gulf region, and terrorism worldwide — is not a risk worth taking.
The Iranian government must be convinced that it does not need nuclear weapons to deter attacks against the regime. It is likely to push for an indigenous nuclear-enrichment program for matters of national pride, as well as national interest.
The Obama administration should therefore offer to end Washington’s diplomatic and economic isolation of Iran, and should end all efforts to overthrow the government in Tehran, in exchange for Iran’s pledge to forswear a nuclear weapons program, and to allow free and unfettered access to international inspectors to ensure that its peaceful nuclear program is not diverted for military purposes.
While such an offer might ultimately be rejected by the Iranians, revealing their intentions, it is a realistic option, superior to both feckless economic pressure and stalemate, or war, with all of its horrible ramifications.

