Articles

The small open economies of the Gulf and Southeast Asia are pioneers in the establishment of

Sovereign Wealth Funds (SWFs). The SWFs of countries like Qatar and Singapore are among the

world’s largest in terms of total asset size relative to Gross Domestic Product. This article looks

at the different compulsions behind the setting up of SWFs by small open economies.

For decades, fears of energy scarcity drove American energy diplomacy. The dependence of the global economy on oil, and America’s need to secure ever-growing quantities of this commodity, underpinned complex networks of alliances and intensive diplomatic endeavors. An atmosphere of ever-increasing global competition for resources made these labors all the more urgent and highstakes. Today, in an age of energy abundance, many anticipate that the new US energy prowess will render such efforts obsolete and pave the way for US disengagement in the world. Yet a sober look at reality suggests that this should be far from the case.

Many energy consumers, and even analysts and policymakers, confront and frame energy and climate risks in a moral vacuum, rarely incorporating broader social justice concerns. Here, to remedy this gap, we investigate how concepts from justice and ethics can inform energy decision-making by reframing five energy problems — nuclear waste, involuntary resettlement, energy pollution, energy poverty and climate change — as pressing justice concerns.

Many experts consider nuclear terrorism the single greatest threat to U.S. security. The fear that a state might transfer nuclear materials to terrorists was a core justification for the invasion of Iraq in 2003 and, more recently, for a strike against Iran’s nuclear program. The logical basis for this concern is sound: if a state could orchestrate an anonymous nuclear terror attack, it could destroy an enemy yet avoid retaliation. But how likely is it that the perpetrators of nuclear terrorism could remain anonymous? Data culled from a decade of terrorist incidents reveal that attribution is very likely after high-casualty terror attacks. Attribution rates are even higher for attacks on the U.S. homeland or the territory of a major U.S. ally—97 percent for incidents in which ten or more people were killed. Moreover, tracing a terrorist group that used a nuclear weapon to its state sponsor would not be difficult, because few countries sponsor terror; few terror groups have multiple sponsors; and only one country that sponsors terrorism, Pakistan, has nuclear weapons or enough material to manufacture them. If leaders understand these facts, they will be as reluctant to give weapons to terrorists as they are to use them directly; both actions would invite devastating retaliation.

Realist scholars have long debated the question of how much power states need to feel secure. Offensive realists claim that states should constantly seek to increase their power. Defensive realists argue that accumulating too much power can be self-defeating. Proponents of hegemonic stability theory contend that the accumulation of capabilities in one state can exert a stabilizing effect on the system. The three schools describe different points along the power con­tinuum. When a state is weak, accumulating power increases its security. This is approximately the situation described by offensive realists. A state that con­tinues to accumulate capabilities will eventually triggers a balancing reaction that puts its security at risk. This scenario accords with defensive realist as­sumptions. Finally, when the state becomes too powerful to balance, its oppo­nents bandwagon with it, and the state’s security begins to increase again. This is the situation described by hegemonic stability theory. These three stages delineate a modified parabolic relationship between power and secu­rity. As a state moves along the power continuum, its security increases up to a point, then decreases, and finally increases again. This modified parabolic re­lationship allows scholars to synthesize previous realist theories into a single framework.

The current global nuclear order is extremely fragile, and the three most urgent challenges to it are North Korea, Iran, and Pakistan. If North Korea and Iran become established nuclear weapons states over the next several years, the nonproliferation regime will have been hollowed out. If Pakistan were to lose control of even one nuclear weapon that was ultimately used by terrorists, that would change the world. It would transform life in cities, shrink what are now regarded as essential civil liberties, and alter conceptions of a viable nuclear order.

"The prevailing view in the United States is that Ahmadinejad's foreign policy and Iran's increasing presence in the region has been offensive, expansionist, opportunistic, and often ideological. Though Iran has occasionally taken advantage of new opportunities, these characterizations have been exaggerated in the United States. Instead, Iran's action should be perceived in a more pragmatic light. Though Ahmadinejad may himself be an ideological and divisive figure, Iran's foreign policy strategy predates him and ought to be viewed as a wider Iranian effort to secure its geostrategic interests and national security concerns. Despite Ahmadinejad's tendencies to indulge his eccentricities, the logic of Iran's foreign policy decisionmaking process always ensures this return to pragmatism."

"...[S]ituated in what it sees as a hostile neighborhood, it is hardly surprising that the Iranian government views an independent nuclear fuel cycle as interchangeable with deterrence, rather than as a bid for building a nuclear arsenal. While building a nuclear arsenal would be a costly endeavor, risking international isolation and assuring Iran's 'pariah status,' acquiring civilian nuclear capability would afford Iran the security and psychological edge it has long sought, and at a lower cost."