Nuclear Issues

North Korea’s 3,000 to 6,000 hackers and the 10 to 20 percent of its military budget going toward online operations mean the country’s cyberthreat to the United States stands only behind that of China, Russia and Iran. If the current tensions continue to escalate, could the United States or North Korea use their cyber-capabilities as a “force multiplier” to conventional military systems?

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.

"South Korea has been trying to develop its nuclear energy industry over half a century. Insufficient energy sources, increasing domestic energy consumption, and rising oil prices in the 1970s were significant drivers that turned South Korea into a nuclear energy producer. Today, the country runs 24 nuclear reactors in four nuclear power plant sites, the second highest number of reactors among Asian countries after Japan and fifth highest in the world. Despite the contribution of nuclear energy to the South Korean economy, however, the country is currently facing mounting domestic concerns over its pro-nuclear energy policy."

As the policy community prepares to assess an agreement between the U.S. and its P5+1 partners and Iran, Senate Foreign Relations Committee Chairman Bob Corker asked me to review the history of analogous agreements for lessons that illuminate the current challenge. In response to his assignment, I reviewed the seven decades of the nuclear era, during which the U.S. negotiated arms-control treaties, including the Non-Proliferation Treaty of 1968; strategic arms limitation talks and agreements from SALT to New Start; the North Korean accord of 1994; the agreements that helped eliminate nuclear weapons in Ukraine, Kazakhstan, and Belarus in the early 1990s; and the pact that eliminated the Libyan nuclear weapons program in 2003.

Among many lessons and clues from this instructive history, five stand out

"The middle powers' congruence between New Delhi and Paris expanded with French quest for nuclear technology partners outside Europe, especially for technology that had not already been proved to be economically viable. For much of the Cold War, French nonchalance toward nuclear safeguards, frequent foreign policy differences with Washington, and close ties between key Indian and French physicists helped further. From India's point of view, the CEA offered technological assistance, including active encouragement as in 1974, when no other atomic energy commission was willing to offer much."

"Even as Prime Minister Narendra Modi is forging closer ties with Washington, he is not budging from New Delhi's core positions on a climate change agreement or the Nuclear Liability Bill. Even when as an insurance pool of $250 million is being offered to nuclear suppliers, there seems to be very little possibility of scrapping the Liability Bill entirely for U.S. suppliers."

"For US regulators, 2014 was a banner year for collecting fines against sanctions violators, according to The Economist. In June, BNP Paribas—France’s largest bank, and one of the largest in the world—agreed to shell out $9 billion to the US Department of Justice for violating sanctions against Cuba, Iran, and Sudan. This past month, US regulators slapped Germany’s Commerzbank—the country’s second-largest bank, with a similar global presence—with a $1 billion fine, after launching an investigation into its dealings with sanctioned countries. The increases in fines have signaled an aggressive, zero-tolerance policy toward violators, as well as a willingness to use the extraterritorial provisions of sanctions, which allow regulators to punish foreign-based banks..."

Many Chinese worry that as Japanese politics moves rightward, it could result in the country seeking its own weapons. Beijing's concerns have intensified with its confrontation with the Abe administration over historical recognition and territorial issues. In this op-ed, Hui Zhang argues that it is time for Tokyo to stop reprocessing and eliminate its surplus plutonium as soon as possible. Tokyo should address concerns over its reprocessing plans and plutonium stocks. To reduce suspicions, Tokyo should take specific steps to abide strictly by its "no surplus plutonium policy".