Nuclear Issues

Last May, Chinese solar panel manufacturer LONGi signed an agreement with Saudi trading company El Seif Group to establish large-scale solar manufacturing infrastructure in Saudi Arabia. The deal came several months after the Trump administration's imposition of global tariffs on imports of Chinese solar panels and cells.

If the intended aim of the new round of U.S. sanctions were to change Iran’s behavior, it already has. Just not the behavior the Trump team had in mind—Iran abandoning its pursuit of pro-market economic reforms. President Hassan Rouhani, who was elected twice, in 2013 and 2017, on a platform of liberal economic reforms, has piece by piece put aside his reform agenda. Because of the economic havoc wreaked by the re-imposition of U.S. sanctions, he finds himself in the odd position of overseeing price controls, punishing commodity hoarders, subsidizing imports of a variety of goods, including mobile phones, and has lost the most liberal members of his economic team

In 2006, in the midst of a fierce war between Israel and the Lebanese militant group Hezbollah, former U.S. Secretary of State Condoleezza Rice famously stated that the world was witnessing the “birth pangs of a new Middle East.” She was right—but not in the sense she had hoped. Instead of disempowering Hezbollah and its sponsor, Iran, the war only augmented the strength and prestige of what is known as the “axis of resistance,” a power bloc that includes Iran, Iraq, Syria, Hezbollah, and Hamas in Palestine.

The dramatic seizure of American navy sailors in the Persian Gulf by the Iranian Revolutionary Guards could have endangeredImplementation Day—when on January 16 Iranian compliance with the nuclear agreement so far was verified and the international sanctions against Iran lifted. Instead of derailing the deal, however, the Guards used the incident, as well as the highly publicized prisoner swap, as symbolic events to send the world a message.By detaining the vessels and broadcasting images of its crew to a global audience, the Guards used the opportunity to reveal the future path of Iranian foreign policy in the wake of the nuclear agreement—a path that can be best described as ‘pragmatic revolutionism.’

The end of the year is a good time to consider the risks that lie ahead of us. There are of course important economic risks, including the mispricing of assets caused by a decade of ultra-low interest rates, the shifts in demand caused by the Chinese economy’s changing structure, and European economies’ persistent weakness. But the main longer-term risks are geopolitical, stemming from four sources: Russia, China, the Middle East, and cyberspace.

Although the Soviet Union no longer exists, Russia remains a formidable nuclear power, with the ability to project force anywhere in the world. Russia is also economically weak because of its dependence on oil revenue at a time when prices are down dramatically. President Vladimir Putin has already warned Russians that they face austerity, because the government will no longer be able to afford the transfer benefits that it provided in recent years.

They say we are at war.

What does war look like?

Our enemy is violent Islamic extremism. He is Daesh. He is al-Qaeda. The enemy consists of all groups and adherents of violent Islamic extremism. Our enemy is the “global jihad” movement inspired by the 9/11 attack. They seek to impose an aberrant ideology on the world. For Daesh and their allies, coexistence with their enemies is unimaginable. Compromise is impossible. Daesh has adopted the mindset of an apocalyptic cult group.

The West blew its peace dividend in 20-year party of consumption and speculation.

"Perhaps so much death and destruction take place around the Arab world, at the hands of Arabs, Israelis, Americans and others, because no serious process exists that holds individuals or governments accountable for the atrocities they commit. The International Criminal Court’s indictment of Sudanese President Omar Hassan Bashir for war crimes a few years ago has never been followed up by a serious effort to bring him to court for a fair trial..."