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Welcome Message from the President of L’Aquila

Sono davvero orgogliosa e onorata, come presidente della Provincia dell’Aquila, di poter ospitare nel
capoluogo di regione un evento di così grande importanza, come il G8.
La scelta di individuare L’Aquila, colpita dal terremoto dello scorso 6 aprile, sede del Summit mondiale,
a cui partecipano i Grandi della Terra, è indubbiamente un segnale d’attenzione forte per il nostro territorio.
Un’opportunità per continuare a tenere accesi i riflettori su una provincia devastata dal sisma, che tuttavia
ha tanta voglia di ripartire, di ricostruire, a cominciare dal tessuto produttivo, economico e sociale. Una provincia
che ha anche tanto da offrire, in termini di competenze, di professionalità, di cultura, di know how e di meraviglie
naturali e paesaggistiche.
Siamo da sempre e continueremo ad esserlo la provincia dell’innovazione e dell’accoglienza. Il nostro ter-
ritorio vanta la presenza di centri di formazione e di ricerca di fama internazionale, di imprese d’eccellenza nei settori
delle telecomunicazioni, del farmaceutico, dell’elettronica, di un tessuto dinamico di piccole e medie imprese, di un
polo universitario che continua ad essere punta di diamante del centro Italia.
Il terremoto ha distrutto le case, le sedi della scienza e della cultura, ma non le nostre menti, le nostre
professionalità, non le nostre competenze. Il sisma non ha intaccato le meraviglie naturali, paesaggistiche, storiche,
i parchi, le montagne i borghi antichi, le tradizioni secolari e l’ospitalità della nostra gente.
Il sisma non ha fatto crollare il know how, che il territorio è sempre stato in grado di offrire e che sapremo
mettere al servizio dei grandi temi, su cui si confronteranno i leader di tutto il mondo a L’Aquila.
Sviluppo eco-sostenibile, politica energetica intesa come promozione di fonti rinnovabili e tecniche di
risparmio; istruzione, cultura, lavoro, tutela dell’ambiente, sicurezza alimentare… Saranno queste le scelte da com-
piere per il futuro. Questi i nodi che il Summit è chiamato a sciogliere. Sono gli stessi temi che ci hanno appassion-
ato da sempre, temi su cui l’Ente e il territorio che rappresento hanno saputo svolgere un ruolo trainante.
Per questo ritengo che il G8 sia una grande opportunità per la nostra provincia.
Ai grandi della terra, a cui do’ il benvenuto e auguro un buon lavoro, chiederemo di aiutarci nella ricostru-
zione, di rimettere in piedi le strutture che il sisma ha devastato, affinché il grande patrimonio che abbiamo costruito
negli anni non vada disperso.

Stefania Pezzopane
Presidente della Provincia dell’Aquila

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Russian Standard

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Welcome Message from the President of L’Aquila

It is a great honor and a pleasure for me, as the President of the Province of L’Aquila, to host in the capital
of the Abruzzo region the G8 Summit.
The choice of L’Aquila, so hard-hit by the earthquake of last April 6th, as the venue of the summit, is un-
doubtedly a clear sign of attention towards our territory.
This occasion represents to us the opportunity to keep on having the spotlight of the media on our prov-
ince, so deeply devastated by the quake, yet still strongly committed to restore itself and to rebuild its economic,
social, and productive fabric.
Our province has indeed much to offer in terms of culture, nature, know how, and skills.
We have been so far, and we still want to be, the province of innovation and hospitality.
Our territory boasts the presence of research and education centers internationally acclaimed, outstand-
ing telecommunication, pharmaceutical, and electronic companies, a dynamic fabric of small and mid-sized firms, a
renowned university which must continue to be our flagship.
Our houses, our art, culture, and science venues have been destroyed by the earthquake, but not our
minds or our passion. Still alive is our history, our natural beauties, our unique landscapes, mountains, parks, an-
cient villages, our centenary tradition, and our people’s great hospitality.
The quake did not destroy our skills and our local competencies, which our territory has offered so far and
which we want to put on to service of the great issues that the leaders of the world will debate in L’Aquila.
Sustainable development, energy policy meant as encouragement of renewable and more efficient
power source, education, culture, jobs, environmental conservation, and food security.
These are the pressing issues the summit is asked to tackle.
These are the challenge and the choices for the future.
These are crucial themes in which our administration has showed its committment since its establish-
ment. For those reasons I believe that the G8 summit will represent a unique opportunity to our province.
We therefore ask the world leaders, to whom we are proud to offer our warm-hearted welcome and our
wishes of a profitable meeting, to help us in the reconstruction, to restore all the structures the earthquake has
destroyed, to give new life to the great heritage that our territory built through the years. This is our greatest hope,
our utmost goal.

Stefania Pezzopane
President of the Province of L’Aquila

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Forbes

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Welcome Message from the Director General of L’Aquila

Il summit dei rappresentanti degli otto paesi maggiormente industrializzati del mondo, in programma
a l’Aquila dall’8 al 10 luglio prossimi, rappresenta una grande occasione di rilancio dell’economia mondiale in un
momento di crisi che perdura da diverso tempo.
L’incontro ha grande risalto per essere il primo cui partecipa il nuovo presidente degli Stati Uniti Barack
Obama, che con la sua politica riformista ha dato avvio ad un nuovo corso di apertura dell’amministrazione ameri-
cana alle problematiche socio-economiche di tutto il mondo, ridando così nuova forza e fiducia all’immagine degli
Stati Uniti.
Per essere il G8 il luogo in cui si discutono gli scenari futuri di tutto il globo dal punto di vista politico eco-
nomico e sociale, si può comprendere che la scelta dell’Aquila come sede, soprattutto dopo il sisma del 6 aprile, è
occasione imperdibile per porre all’attenzione dei grandi della terra la ricostruzione di questo territorio, delle bellezze
artistico-ambientali e del tessuto economico sociale, costituito da una moltitudine di imprese e da numerosi uffici
pubblici, statali, regionali, provinciali comunali e da un’importante Università che erogano ai cittadini servizi essen-
ziali e che pertanto devono tornare ad operare efficacemente ed in breve tempo per ripristinare condizioni di vita
normali.
Tutta la struttura tecnica della Provincia dell’Aquila saluta gli organizzatori ed i partecipanti a questo
grande evento rivolgendo i migliori auguri di un proficuo lavoro.

Dott. Giovanni Di Pangrazio


Il Direttore Generale
Provincia dell’Aquila

The summit of the eight most industrialized countries in the world, organized in L’Aquila from July 8 to
10, 2009, represents a big occasion for world economy revival during a crisis period that continues for long time.
The meeting has great importance because it is the first with American President Barack Obama, who,
with his reform policy, has started a new era of opening the U.S. to the world’s socio-economic problems, giving a
new power and trust to the U.S. image.
After the earthquake of April 6th, 2009, the choice of L’Aquila as the seat of G8, where the members debate
about the world’s political, economic, and social issues, is a considerable occasion to direct the attention of the world
powers to reconstructing this land and preserving its artistic and environmental beauties, and the economic and so-
cial area made by a lot of enterprises and public national, regional, and local offices, and an important University, that
deliver essential services to citizens and therefore they must return to work effectively and as soon as possible to
restore normal life conditions.
The entire infrastructure of the Province of l’Aquila greets the members and organizers of this great event
and sends best wishes for successful work in the meeting.

Dott. Giovanni Di Pangrazio


General Director
Province of l’Aquila
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Intro 60
Roll Call
Provincia L’Aquila
Stefania Pezzopane
Chris Atkins Presidente della Provincia dell ‘Aquila
Publisher and Founder, CAT Company Inc. Il Direttore Generale
Provincia dell’ Aquila – Dott. Giovanni Di Pangrazio

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EDITORIAL
EXECUTIVE EDITORS
Ana Carcani Rold
Kirk L. Jowers
Barry Scholl
Courtney H. McBeth

CONTRIBUTORS
Tyler Anderson, Hinckley Institute of Politics, University of Utah
Dr. Raymond Baker, Global Financial Integrity
John Bavoso, Diplomatic Courier Magazine
Michelle Bernard, Independent Women’s Forum
Ambassador John Bruton, EU Delegation to the U.S.
Hiram E. Chodosh, University of Utah S.J. Quinney College of Law
Lincoln Davies, University of Utah S.J. Quinney College of Law
Brian J. Forest, Diplomatic Courier Magazine
Dustin Gardiner, Hinckley Institute of Politics, University of Utah
Erika George, University of Utah S.J. Quinney College of Law
Amos N. Guiora, University of Utah S.J. Quinney College of Law
Ryan Harding, Diplomatic Courier Magazine
Andrew Jensen, Hinckley Institute of Politics, University of Utah
Christian Johnson, University of Utah S.J. Quinney College of Law
Dr. Joseph S. Joseph, University of Cyprus
C.S. Eliot Kang, Bureau of International Security and Nonproliferation, U.S. Department of State
Minister Hala Lattouf, Jordan’s Ministry of Social Development
Secretary Michael O. Leavitt, U.S. Department of Health and Human Services
Chibli Mallat, University of Utah S.J. Quinney College of Law
Christopher Peterson, University of Utah S.J. Quinney College of Law
Dr. Maria Rost Rublee, University of Auckland
Rami Turayhi, Diplomatic Courier Magazine
Joseph M. Vandette, Jr., Hinckley Institute of Politics, University of Utah
Chris Whytock, University of Utah S.J. Quinney College of Law

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Table of Contents

Welcome Message from the President of L’Aquila, Italian 4 A Prescription for Development:
Welcome Message from the President of L’Aquila, English 6 Curing What Ails Foreign Aid to Africa
Welcome Message from the Director General of L’Aquila 8 By Erika George, Professor, of Law,
Publisher’s Note By Chris Atkins 10 University of Utah S.J. Quinney College Of Law 60
EDITORIAL 12 Mugabe’s Zimbabwe:
EDITORS’ Note - Return of the Summits A State’s Decline from Fragile Democracy to
By Ana Carcani Rold and Kirk L. Jowers, Executive Editors 21 Electoral Authoritarianism
All Roads Lead to Rome By Dustin Gardiner, Hinckley Scholar, University of Utah,
By Brian J. Forest, Correspondent – Diplomatic Courier Magazine28 Hinckley Institute of Politics 64
Addressing the Global Shadow Financial System European Union Enlargement and the Islamic Challenge
By Raymond Baker – Director of Global Financial Integrity (GFI) 30 By Dr. Joseph S. Joseph, Jean Monnet Chair in European
Global Economic Crisis and EU’s Response Foreign Policy and Security Policy, University of Cyprus 66
to Protectionism Between the Justice of Islam and the Injustice of Tradition
By Ambassador John Bruton – Ambassador of the Delegation By the Honorable Hala Bsaisu Lattouf,
of the European Commission to the United States 32 Minister of Social Development, Hashemite Kingdom of Jordan  70
Bank Capital and the Credit Crisis Pakistan, Afghanistan, India:
By Christian Johnson, Professor of Law, Report on the State of Conflict
University of Utah S.J. Quinney College of Law 34 By Amos N. Guiora, Professor of Law,
Can Sovereign Wealth Funds University of Utah S.J. Quinney College of Law 72
Be the Unlikely Saviors of Renewable Energy? From Zero-sum Conflicts to Federalism:
By Rami Turayhi, Senior Contributor – The Road Forward
Diplomatic Courier Magazine 38 By Hiram E. Chodosh, Dean and Professor, and Chibli Mallat,
Drafting a Carbon Emission Regulation Professor, S.J. Quinney College of Law 74
System for the U.S: Insight Provided by a Carbon Tax An International Agenda at a Time of Crisis
By Joseph Vandette, Hinckley Scholar, University of Utah Hinckley By Michelle Bernard, President and CEO Independent
Institute of Politics 42 Women’s Forum and MSNBC Political Analyst 76
Finding Security in Climate Change Mercantilism or Meeting Demand?
By Lincoln Davies, Associate Professor of Law, China’s National Oil Companies
University of Utah S.J. Quinney College of Law 46 and Multilateral Diplomacy
The G-8 Global Partnership By Tyler Anderson, Hinckley Scholar,
By Dr. C.S. Eliot Kang, ISN Acting Assistant Secretary – University of Utah Hinckley Institute of Politics 80
U.S. Department of State 48 Harmful Transnational Activity:
The Most Dangerous Threat Principles for Coordinated Domestic Legal Responses
By David Irvine, Retired Brigadier General – U.S. Army 50 By Chris Whytock, Associate Professor,
Encouraging Nuclear Nonproliferation & Disarmament: University of Utah S.J. College of Law 82
Lessons from Social Psychology Foreclosing on American Leadership
By Dr. Maria Rost Rublee – University of Auckland 52 By Christopher Peterson, Professor,
On Combating Global Terrorism University of Utah S.J. Quinney College of Law 84
By Ryan Harding, Correspondent - Diplomatic Courier Magazine 54 Pandemic Flu:
Democracy Promotion: Productive Long-term Preparedness in a Changing World
Strategy, Not Counterterrorism Answer By Secretary Michael O. Leavitt – Former Governor of Utah,
By Andrew Jensen, Hinckley Scholar, Administrator of Environmental Protection Agency, and 
University of Utah Hinckley Institute of Politics 56 Secretary of the U.S. Department of Health and Human Services 86
China’s Investment in Africa: Interview with His Excellency Klaus Scharioth of Germany 88
Development or Neo-Colonialism? Interview with His Excellency Pierre Vimont of France 90
By John Bavoso, Correspondent – Diplomatic Courier Magazine 58 Interview with His Excellency Ichiro Fujisaki of Japan 92

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EDITORS’ NOTE
Return of the Summits
By Ana Carcani Rold and Kirk L. Jowers
Executive Editors

When assessing the year 2009, historians will undoubtedly dub this the year of the return of grand summits.
The G20, the NATO 60th Anniversary Summit, the 5th Summit of the Americas, and the culmination of all summits:
the G8, hosted this year by the rotating presidency of the Republic of Italy. All of them were grand in their own
respects and the issues they sought to tackle, even bigger.

2009 may also be remembered as the year all countries turned to multilateralism and unilateralism both at the
same time. How is it possible?

The challenges of the global financial crisis called for unilateral protectionist measures by most countries in the
world. Naturally, when the economy is tough, nations will look to protect their own workforces and markets. At
the same time, the scope of the financial crisis is global and interconnected. It demands for a bigger and more
inclusive group of nations to work out their problems multilaterally. Thus the G20 became the biggest and most
important gathering this past spring, even overshadowing, for that moment, the G8.

Yet the G8 is itself becoming more inclusive, both in agenda and in membership. Historically, the G8 was one
of the most exclusive clubs in the world of grand summits. However, since the first meeting took place in 1975 at
the Château de Rambouillet, just outside Paris, much has changed.

At the time, the G6 of the major industrialized democracies gathered to informally discuss the economic crisis
plaguing the world in the early seventies. It may feel as though not much has changed since then. Indeed, the G8
still gets together every year to discuss mainly economic matters, but the gathering has become more formal and
much more important, and the agenda has become steadily more ambitious.

This year, besides the economic crisis, the G8 will be tackling four other significant issues affecting nations
globally: non-proliferation and terrorism, climate change and energy security, regional crises such as Pakistan and
Afghanistan, and development in Africa. These are the five priorities that the Italian presidency put forward but
recent and upcoming events may yet force themselves on to the G8’s crowded lineup.

A renewed discussion on a new form of world governance, based on an enhanced and structured form of dia-
logue with the major emerging economies has also been the focal point of the Italian presidency for this year’s G8
Summit. Coupled with the invitation of the BRIC countries and several other regional representatives from around
the world at this year’s G8 meeting testifies to the fact that the culmination of this year’s grand summits will be a
striking balance in which the G20 and the G8 will meet somewhere in the middle to better represent the world’s
economies and challenges toward a better future.

What will be the future of the G8? Will it be the G13 the next time around? Perhaps. As it stands, the summit of
all summits is already including more observer nations at the table. And perhaps the G8 will move completely away
from the informal discussions of yester years to an official assembly befitting the world order of today. Until then,
however, we will undoubtedly remember this year’s G8 Summit as the one that changed the course of history of all
subsequent summits.

Ana Carcani Rold Kirk L. Jowers

Executive Editors

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All Roads Lead to Rome
By Brian J. Forest, Correspondent – Diplomatic Courier Magazine

As President Barack Obama seeks to improve ties


with Russia and Iran, he may find an ally in Italy’s Prime
Minister, Silvio Berlusconi.

Italy has a distinctive reputation in Europe for forging


close ties with the United States as well as the nations
with which it has had the rockiest relations—namely
Iran and Russia. Berlusconi was one of former Presi-
dent George W. Bush’s strongest allies throughout his
presidency, contributing troops to the missions in Af-
ghanistan and Iraq against strong opposition at home.
He was one of the few world leaders Bush invited to give
a joint speech before the U.S. Congress, addressing the
body in 2006.

With Bush back at his ranch in Texas and a new


administration in power in the U.S., Italy is now seeking
to serve as a conduit between the United States and
some of its most cantankerous adversaries. President
Obama has openly talked of thawing relations with Iran’s
hard-line leadership and declared, “If countries like Iran
are willing to unclench their fists, they will find an ex-
tended hand from us.” He spoke of a “new beginning”
in a video message distributed to Iranian news agencies
in March, offering, “The United States wants the Islamic
Republic of Iran to take its rightful place in the commu-
nity of nations.”

Yet, the Obama administration has so far seen its


limited outreach to the Islamic republic rebuffed. Presi-
dent Mahmoud Ahmadinejad and Supreme Leader
Ayatollah Khamenei have openly criticized the new
administration. Secretary of State Hillary Clinton’s claim
of a dialogue between her envoy and Iran’s deputy for-
eign minister at a summit in March was met with a “cat-
egorical” denial from the foreign ministry.

Improving relations with Russia—which grew cool


under the Bush presidency—has also proven chal-
lenging. Disputes over pro-democracy movements in
Ukraine and Georgia, Kosovo’s independence, human
rights, and the war in Iraq led to a steady decline in rela-
tions between the two countries during the Bush years.
While the Obama administration has received a more
positive reception in Moscow than its predecessor,
Russian leaders have not forgotten candidate Obama’s
criticism over the conflict in Georgia, or his implicit
threat to block Russia’s bid to join the WTO.

Italy’s U.S. Ambassador, Giovanni Castellaneta, has


recently been promoting his nation’s “special relation-
ship” with Russia and has spoken of the need to in-
clude additional participants in nuclear talks with Iran—
G8 presumably his own country.
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Cover Story

Referring to the talks between Iran and the P5—


U.S., Britain, France, Russia, China—and Germany,
Castellaneta told the Washington Times, “The ‘P5 plus
1’ approach didn’t give us the results we hoped for.” He
suggested adding additional countries to the negotia-
tions, including, “Japan, India, even the (Persian) Gulf
states and Canada.”

Castellaneta served as Italy’s ambassador to Iran


from 1992-1995.

Italy has long had unique ties with Iran, dating back
to Marco Polo’s treks through Persian lands on his way
to China. Today, Italy is Iran’s largest European trading
partner and the two countries have more than doubled
their volume of bilateral trade over the past five years.
Berlusconi offered to help President Bush solve the
Iran nuclear issue on a farewell visit to Rome in
2008, offering to share his country’s knowledge of the
Islamic republic “from the inside” if it would help resolve
the dispute.

With Italy in charge of the rotating G8 presidency


this year, Italian Foreign Minister Franco Frattini has also
invited his Iranian counterpart to take part in a June G8
summit on Afghanistan. ANSA news agency quoted
Frattini as saying, “Iran could play a positive role and
with the Americans we are discussing how to involve
them, not whether to involve them.”

He added, “America wants us to talk with Iran be-


cause Italy is in a position to speak with Tehran.”

Berlusconi has also forged close commercial and


political ties with Russia, and is known to have a deep
personal friendship with Prime Minister Vladimir Putin.
He was one of the only pro-U.S. European leaders to
refrain from criticizing Russia over its military actions in
Georgia. Berlusconi has also publicly called for Russian
entry in the European Union, telling Italian reporters that
he considers Russia, “to be a western nation.”

As part of its G8 presidency, Italy hosted a confer-


ence titled “Overcoming Nuclear Dangers” in April. At
the conference, former U.S. secretaries of state con-
ferred with Mikhail Gorbachev and Franco Frattini on
global nuclear challenges, including Iran. April’s confer-
ence followed an agreement between Barack Obama
and Russian President Dmitri Medvedev to begin work
on an arms reduction treaty. Frattini applauded the
accord as “very important in reviving U.S.-Russian rela-
tions,” and American and Russian diplomats have been
working out the details of the agreement in Rome.

Brian J. Forest is a Senior Correspondent for the


Diplomatic Courier magazine where he covers global G8
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Addressing the Global Shadow Financial System
By Raymond Baker – Director of Global Financial Integrity (GFI)

The G8 has an extraordinary opportunity to begin that perhaps half of global trade and capital transactions
reshaping the international economy around principles pass through this shadow financial system somewhere
of legitimacy and equity. between origination and completion.

The outstanding issue that needs to be addressed These illicit financial flows damage both the devel-
is the global shadow financial system. Working in uni- oping countries and the industrialized economies of
son are tax havens, secrecy jurisdictions, disguised the G8. For developing countries, it drains hard curren-
corporations, anonymous trust accounts, fake founda- cy reserves, heightens inflation, reduces tax collection,
tions, transfer pricing arrangements, and money laun- worsens income gaps, cancels investment, hurts com-
dering techniques that move cumulatively trillions of petition, and undermines trade. In G8 economies it
dollars of illicit money across borders. This system equal- reduces tax collection, worsens income gaps, and shifts
ly facilitates shifts of the proceeds of bribery and theft tax burdens off of capital and onto labor. Affecting
by foreign government officials, criminal activity such all countries, it contributes to the culture of opacity
G8 as drug trading and racketeering, terrorist financing, that lies at the heart of the current financial crisis.
Summit 2009 and commercial tax evasion. Some estimates suggest
30
Global Financial Crisis

Global Financial Integrity (GFI) recently complet- to know with whom it is doing business. A Wall Street
ed an analysis of illicit financial flows out of develop- banker recently asked, “Do you have any idea how
ing countries, utilizing in part the World Bank Re- much it would cost us to determine the beneficial own-
sidual Method and IMF Direction of Trade Statistics. ers of all our accounts?” The answer is it costs nothing.
This is the first study to take these models and apply Banks should simply require the account holder to tell
them to the whole of the developing world. We show them who are the flesh and blood owners or the listed
that somewhere between $850 billion to more than company that is the owner of the account, in the ab-
$1 trillion a year of illicit money passes out of devel- sence of which the account is closed.
oping countries. Or put another way, for every $1 of
aid generously given to developing countries, some Third, countries cooperating with the Financial
$10 of illicit money flows out, passing through the Action Task Force in Paris should harmonize predicate
shadow financial system and ultimately into our west- offenses under anti-money laundering laws and add to
ern economies. This is the most damaging economic such predicate offenses knowingly handling the proceeds
condition hurting the global poor. of tax evasion. It is unacceptable that many countries
remain open to a wide range of criminal money and
Part of what is so difficult about the current crisis is equally unacceptable that many countries actively seek
that no one knows how big it is. We have no idea how the proceeds of commercial tax evasion.
much bad paper in the form of subprime mortgages,
credit default swaps, and derivatives contracts is hidden Fourth, country-by-country reporting of sales, profits,
away in tax havens and secrecy jurisdictions, in hedge and taxes paid by multinational corporations should be
funds and offshore banks and special purpose vehicles. agreed. Currently, corporations compile this information
Interbank lending has dried up because one bank does for internal purposes but do not provide disaggregated
not know the quality of assets in another bank. As a data in annual reports. Hence we see tens of billions in
result, other forms of lending have been pulled down stated profits and little or nothing paid in taxes. Country-
as well—corporate, trade, home, consumer, and more. by-country reporting has a number of very significant
The culture of opacity, so evident in this crisis, driven in advantages, including generating additional tax revenues
good part by the global shadow financial system, has for countries, accomplished without large regulatory
been hurting the developing countries for decades and burdens on either governments or businesses. It also
now has brought this harm home to industrialized econ- reverses the shift over recent decades of tax burdens
omies as well. increasingly onto labor, and in doing so it reverses the
growing inequality between rich and poor.
What can countries do? The goal should be to cur-
tail the flow of tax evading and other illicit money across There is a grand bargain between democracy and
borders, not to try to stop it. Stopping it would re- capitalism. Democracy offers to its people an equal mea-
quire draconian steps. Substantially curtailing it can be sure of political liberty. Capitalism is expected to offer to
achieved with a few broadly adopted and implemented its people a fair measure of economic opportunity and
measures. Some people assert that this is extremely economic prosperity. Across recent decades, capitalism
complex and technically difficult. Not correct; it is a mat- has not been holding up its end of the grand bargain. It has
ter of political will. not been doing a satisfactory job of spreading the ben-
efits of growth and prosperity to all people, either within
There are four measures that leaders of the G8 can countries or between countries. As a consequence, the
take now that will substantially curtail the problem. spread of democracy itself has been stagnating since the
mid 1990s and indeed slipping backwards in a number
First, exchange of tax information should be of countries. There is now substantial risk that this trend
automatic rather than by request. G8 leaders should may continue. Within the democratic-capitalist system,
make a commitment to automatic exchange of tax it is capitalism that needs to move closer to the ideals of
information across borders and place a target date democracy, closer to transparency, equity, and justice.
on its implementation. This would signal that we are And it is the G8 that needs to lead toward these goals.
dead serious about resolving this financial crisis and
preventing future such crises. Raymond W. Baker, Director of Global Financial
Integrity, is author of Capitalism’s Achilles Heel: Dirty
Second, beneficial ownership must be addressed. Money and How to Renew the Free-Market System
All financial institutions around the world should be re- (John Wiley & Sons, 2005)
quired to know the beneficial owners of entities with
which they do business. It is inexcusable in this age G8
of terrorism and crime for any financial institution not Summit 2009

31
Global Economic Crisis and
EU’s Response to Protectionism
By Ambassador John Bruton – Ambassador of the Delegation of the European Commission to the United States

In every crisis, there are opportunities that might oth- dividual room for fiscal maneuvering that each country
erwise be postponed. There is no question that we are has. We have also, in conjunction with the IMF, been
living in difficult times. The economic crisis is affecting providing funds to assist some EU Member States, as
all of us—big countries and small, the wealthy and the well as some European non-members, who have gotten
not-so-wealthy. Climate change is a reality; the Wilkins into particular difficulties.
Ice Shelf, which is the size of Connecticut, is breaking
away from the Antarctic Peninsula. Of course, not everyone always immediately agrees
on every detail. Each nation around the world wants
In many cases, these problems could have been to invest in its economy, in its industries and workers,
averted, or at least mitigated, if we had addressed the in the way that seems best and most productive in its
underlying causes sooner. But now, the arguments for individual situation. You could even call this “protec-
taking action are more compelling—in fact, we are rap- tion” against a volatile economic situation, in the broad-
idly running out of choices. est sense of the word. But that is entirely different from
protectionism.
The EU—like the United States—has already tak-
en forceful and coordinated steps to end the financial Open markets deliver huge economic benefits, in
crisis and build a stronger, more sustainable, more sta- terms of both supply and demand—they offer opportu-
ble economy for the future. We were the first to act on nities for our businesses and greater choice for our con-
credit rating agencies, capital requirements, and deposit sumers. But defending open markets is also important
guarantees, and we are working together to imple- politically, because they shape the future of international
ment a fiscal stimulus of at least 3.3 percent and up trade in a way that fosters a more just and prosperous
to four percent of GDP in 2009-2010, or more than world for all. Retreating to the safety of our own domes-
400 billion. tic markets would be a huge mistake—it is what tipped
recession into depression in the 1930s and what could
By dealing with impaired assets in a European turn a downturn into our downfall today.
framework, we are rebuilding confidence and stimulating
lending, and we are supporting industry where neces- The G8 Summit offers us the opportunity not only
sary while rejecting protectionism and preventing a de- to continue the worldwide coordination of fiscal stimulus
structive subsidy race. programs and reform of the financial markets, but also
to find ways to deliver on our climate change and devel-
But we haven’t stopped there. We have also mapped opment goals.
out a route toward sustainable long-term prosperity. By
investing in the sectors of the future and in intensify- The fight against climate change must not be
ing—not reducing—the fight against climate change, delayed by the economic crisis. By implementing mea-
repairing financial markets, and strengthening financial sures to green our economies, we can tackle the two
regulation and supervision, we are ensuring stability for issues simultaneously. The stimulus packages that will
ourselves as well as for future generations. get our economies moving again are creating green
jobs for our citizens by accelerating investment in build-
The coordinated EU strategy currently being imple- ing a lower-carbon economy that is vital for beating
mented would be a remarkable achievement even for climate change.
a single national government. For 27 Member States
and 500 million people, it is unprecedented. While it is As much as the EU is doing to fight climate change,
true that circumstances differ widely across the EU as a we cannot go it alone. Developed parts of the world,
whole, there is no two-speed Europe or new iron curtain. like Europe and the United States, have contributed
We all prospered in the good times, and we all are suf- and continue to contribute disproportionately to climate
fering in the bad times, though to different degrees. But change. With only 12 percent of the world’s population,
because every economy is different, we have adapted the EU and U.S. together account for 40 percent of
our instruments to the different national circumstances. all global emissions.

The EU has been providing funds to stimulate our Since we have played such a major role in creating
G8 individual national economies in accordance with the in- this global crisis, we must now take the lead in finding a
Summit 2009

32
Global Financial Crisis

solution. It is only fair that those of us who have already income could be reduced by at least 500 billion dollars.
put the most CO2 into the atmosphere make propor- That’s a large chunk of the fiscal stimulus—gone.
tionately the biggest contribution to fixing the problem.
Industrialized countries can and must lead through ex- This summer’s G8 meeting offers us the opportunity
ample, by putting a market price on carbon emissions, to tackle these issues in a coordinated forum, through
by investing in new technologies, and by helping others what our European Commissioner for External Relations
develop wisely. and European Neighborhood Policy Benita Ferrero-
Waldner has called “effective multilateralism.”
We also need to look at how we can best reform
the institutions governing the global economy to allow In reality, multilateralism is the only effective ap-
emerging economies to take their rightful place at the proach, not only for the financial and economic issues
table. To truly deliver on our commitment, we need to which dominate the agenda today, but for all issues
complete the Doha Round of world trade talks. This which affect the future of our planet. The EU is deter-
agreement would add hundreds of billions of dollars to mined to play our part in encouraging open and positive
the world economy every year, and allow the develop- debate. We will continue to engage with partners from
ing world to continue to lift its citizens out of poverty all over the world, to better understand their concerns,
through their own labor and their own ideas. and see how we can advance together.

Doha is also an insurance policy against protection- His Excellency John Bruton is Ambassador of the
ism. A recent study shows that if tariffs were raised to Delegation of the European Commission to the U.S.
levels still allowed under current WTO ceilings, global G8
Summit 2009

33
Bank Capital and the Credit Crisis
By Christian Johnson, Professor of Law, University of Utah S.J. Quinney College of Law

Starting in 2007, the world began slipping into an of nonperforming assets, such as mortgage-backed
intractable credit crisis resulting in financial institutions securities or commercial real estate loans that may be
of all types unwilling to lend to even their most credit- nonperforming. The balance sheet for ABC Bank as of
worthy customers. In spite of enormous efforts by the 1/1/2009 would be as follows: (See figure 1.)
Federal Reserve in the United States to increase liquidity
in the credit markets, the problem has proven remark- During 2009, ABC Bank is required to write-down
ably difficult to resolve the problem. Because financial its troubled assets by US$70 million due to defaults
Figure 1

Assets Liabilities & Capital


Performing Assets US$850,000,000 Deposits US$900,000,000
Troubled Assets 150,000,000 Capital 100,000,000

Totals US$1,000,000,000 US$1,000,000,000

institutions such as banks are highly leveraged (i.e. they on its troubled assets. A write-down of the troubled
hold only a minimal amount of capital), when banks suf- assets generates a corresponding loss that reduces
fer losses, they find themselves either having to raise ABC Bank’s capital. Assuming that ABC Bank otherwise
additional capital or reduce their total assets in order had no operating net income, ABC Bank’s balance sheet
to meet regulatory capital requirements and investors’ at 12/31/2009 would be the following: (See figure 2.)
expectations. These concerns are some of the chief
reasons why lending has effectively ground to a halt. Because of the loss, ABC Bank no longer meets the
10 percent regulatory capital requirement. ABC Bank
A simple example using a bank’s balance sheet may now has a capital ratio of 3.22 percent (30,000,000/
help explain the difficulties in resolving the crisis. A fi- 930,000,000). Both from a regulatory and a safety and
nancial institution (“ABC Bank”) is required by its regu- soundness perspective, ABC Bank will need to raise its
lator to maintain a capital ratio of 10 percent (capital/ capital ratio back up to ten percent or it will need to
assets), which represents the shareholder’s invest- reduce its total assets.
ment in the institution. Losses are first offset against
the shareholder’s investment. If losses exceed a bank’s Given the current economic climate, ABC Bank’s
capital, the creditors would then suffer losses and problems become obvious. If ABC Bank suffered losses
the bank would be insolvent. Assume that ABC Bank of $70,000,000 on its troubled assets, but wants to main-
has $850 million of performing assets and $150 million tain its current asset portfolio, ABC Bank will need to raise
additional capital either from current or new investors.
However, as the stock prices of banks have deteriorat-
ed, there is little, if any, interest on the part of investors
to put in new money in the form of capital into banks.
Recently, it has become almost impossible to raise capi-
tal without direct governmental investment.

If a bank is unable to raise capital, it can also sell


assets in order to get its capital ratios in compliance. In
the above example, however, due to the effect of lever-
age, ABC Bank would need to shrink its assets down
to $300 million, requiring ABC Bank to sell $630 million
in assets before its capital of $30 million would equal
ten percent of its assets. Asset sales are as problematic
as raising capital, however, because other banks at this
G8 time are not interested in purchasing these types of as-
Summit 2009 sets. Even if ABC Bank were to find a buyer for these
34
Bondurant

G8
Summit 2009

35
Global Financial Crisis

assets, ABC Bank would typically have to sell them at a The U.S. Congress believed that because of the
discount, generating additional losses. TARP equity investments, a bank would be more will-
ing to lend because it had more capital. Commentators,
A major reason for the current credit crisis stems however, generally do not believe that much additional
from this problem. In the event they suffer losses, lending has occurred because of TARP. This may be
banks are currently unable to either raise capital or because banks still fear additional losses from new lend-
sell assets to improve their capital ratios. As a result, ing. It may also be because the banks that received
they have stopped lending and taking risk. Banks are capital were in worse shape than anticipated. The TARP
Figure 2

Assets Liabilities & Capital


Performing Assets US$850,000,000 Deposits US$900,000,000
Troubled Assets 150,000,000 Capital 100,000,000
Write off (70,000,000) Loss (70,000,000)
Net Troubled Assets 80,000,000 Net Capital 30,000,000
Totals US$930,000,000 US$930,000,000

literally paralyzed by the fear of additional losses that investments may very well have simply stabilized a pre-
would further erode their capital. Instead of looking cariously weaker than understood banking system.
for opportunities to lend, banks are instead trying to
avoid incurring additional losses until they can rebuild The U.S. Treasury Department, under the Obama ad-
their capital. The effect of this is that banks are invest- ministration, appears to be moving away from the equity
ing in “riskless” assets such as bank balances at the investment approach, and is instead devising programs
Federal Reserve, U.S. government securities, repo to purchase troubled assets directly from the banks. It
transactions (which are fully collateralized) and other is believed that getting the troubled assets off of the
high credit quality assets as opposed to traditional lend- banks’ balance sheets will reduce the possibility of fu-
ing to businesses and consumers. In contrast to these ture write-downs that would further impair capital. Un-
current conservative investments where transactions fortunately, the concept has yet to be tested under cur-
continue, commercial real estate lending, for example, rent market stresses.
has virtually halted.
The success of the U.S. Treasury and the Federal
As capital has dwindled in the financial markets and Reserve in reversing the credit crisis through TARP and
the credit markets have seized up, the U.S. (as well as other actions still remain to be seen. It will take months
other governments across the globe) has engaged in before the effects of equity investments and purchases
two different approaches to the above problem. The by the U.S. government will have any effect on U.S.
U.S. responded in October of 2008 with the passage credit markets. In order to preserve its banking system,
of the Emergency Economic Stabilization Act of 2008 however, the U.S. appears to have little choice but to try
(commonly referred to as “TARP” for the Troubled Asset and strengthen the capital held by its banks.
Relief Program) in which the U.S. Congress authorized
the U.S. Treasury to spend up to US$700 billion to re- Professor Christian Johnson teaches corporate fi-
solve the credit crisis. The U.S. Treasury could do this nance and banking at the University of Utah S.J. Quin-
either (i) by purchasing troubled assets from banks, or ney College of Law and has written four books and
(ii) by making equity investments directly in them. From over three dozen articles on the subject. Professor
October 2008 through March 2009, the U.S. invested Johnson lectures both in the U.S. and abroad on the
approximately US$300 billion through TARP principally financial crisis.
through purchases of equity.

G8
Summit 2009

36
Knowlegis

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Summit 2009

37
Can Sovereign Wealth Funds Be the
Unlikely Saviors of Renewable Energy?
By Rami Turayhi, Senior Contributor – Diplomatic Courier Magazine

Low-hanging fruit almost always trumps its brethren tem that is enforced by global agreement. Arguments
higher up the tree. With so many of today’s green en- on behalf of renewable energy make it abundantly clear
ergy pundits focused on developing the next generation that, notwithstanding cost, green technologies are a net
of renewable energy technologies, policymakers have positive for the United States. The question, however,
missed some potentially easy solutions that are immedi- becomes more difficult when it comes time to determine
ately available to help spur investment and development exactly who is going to bear the brunt of the costs as-
in this heretofore undercapitalized industry. One such sociated with this renewable energy revolution in the
proposal combines the financial capital of the East with United States.
the human capital of the West, and could play a signifi-
cant role in promoting green energy investment during That is where the SWFs come in. While the United
this financial crisis. The proposed solution: use regulato- States will certainly have to bear the lion’s share of the
ry and tax incentives to promote sovereign wealth fund costs associated with renewable energy production, it
investment in renewable energy companies. should seek to offset at least some, if not a significant
portion, of these costs by promoting SWF investment in
For simplicity’s sake, this analysis is limited to Arab the renewable energy industry. Doing so would at once
Gulf sovereign wealth funds (“SWFs”) and American re- provide badly-needed capital to this fragile industry
newable energy companies, but the same basic con- during a time of curtailed lending in the United States,
cept applies to any large state-owned fund and recipient while also diverting SWF investment away from other
country company. The proposal is straightforward and industries where national security concerns might hold
seeks to find common economic ground where it ought greater sway.
to already exist.
The United States could seek to promote green en-
The economic and political power of SWFs has in- ergy investment by using a variety of means, but two
creased quite substantially over the past decade; the that appear to be promising are regulatory and tax in-
largest fund in the Gulf today maintains over half a tril- centives. Any significant investment in U.S. companies
lion dollars in assets, and most of the smaller ones hold by SWFs is subject to the relatively harsh and oftentimes
at least a few tens of billions in capital. These funds humiliating rigors of the CFIUS oversight process. SWFs
have sought to lessen their dependence on highly un- tend to desire privacy at all cost—they have little appetite
stable oil prices by diversifying their investment strategy for being subjected to any intense scrutiny by the Ameri-
and seeking out financially lucrative investment returns can public, especially after the Dubai Ports debacle of
around the world. Host governments—largely demo- 2006. One way to help target SWF investment in renew-
cratic—have sought to assure an often suspicious pub- ables, therefore, would be by allowing SWFs to proceed
lic that these funds seek to do no harm, especially with through a “fast track” CFIUS process. Given that the
regards to sensitive technologies and industries. The products of this investment are largely stationary—wind
United States has even set up a Committee on Foreign and solar farms are firmly rooted to the ground—there
Investment in the United States (“CFIUS”), in order to is little concern that SWFs would use their positions as
better regulate large investments by SWFs. Meanwhile, major shareholders or lenders to affect nefarious de-
SWFs insist—and practice has largely affirmed their re- signs. Quite the opposite could occur: SWF investors
peated assurances—that they are simply seeking finan- might use their clout to help disseminate technological
cial returns and nothing more. know-how to other parts of the world—a net plus for the
struggling international climate change regime.
Moving on to the other side of the equation, the
election of President Barack Obama has recently fo- Taxes could also be restructured to help promote SWF
cused a great deal of spotlight on renewable energy. The investment in renewables. While SWFs currently pay little
President has made a compelling case for using “green” or no taxes as a result of their “sovereign” status, there
technologies to help lift the United States out of reces- are ways in which additional tax incentives could help fo-
sion on sustainable and politically responsible terms. cus investment in renewables. A tax credit, for instance,
A robust renewable energy-fed grid would help wean could be granted to SWFs that invest in renewables.
the United States off of foreign oil and gas, allow firms to This tax credit could be used to help offset other in-
project more stable long-term energy costs, and assist vestments in less environmentally-friendly industries, or
G8 the United States in tackling global warming, perhaps could be traded to polluters for cash. The latter proposal
Summit 2009 within the rubric of a cap-and-trade or carbon tax sys- would be most effective within the confines of a carbon
38
Climate Change & Energy Security

cap-and-trade system, a regime whose prospects for Skeptics argue that these SWFs, especially those from
implementation in the near future look likelier by the day. energy-producing countries, have little incentive to
Even in the absence of a cap-and-trade regime, tax in- promote an industry that effectively diminishes the need
centives could largely mirror those within the Obama for their own greatest source of capital—oil and gas—in
stimulus plan. The idea would be, in effect, to use some the long-term. While the long-term effects of increased
government money to bring in even greater amounts of renewable energy production will indeed likely hurt the
capital—in this case foreign—to shore up an industry oil and gas industries, a number of factors suggest that
that most Americans want to see succeed. SWFs will still choose to invest in renewables, so long as
sufficient financial incentives are in place.
These two ideas—regulatory and tax incentives—are
but a couple of suggestions that seek to achieve one com- For starters, the fact that these SWFs even exist
mon aim: increased SWF investment in the renewable confirms the notion that capital-rich countries are seek-
energy industry. To the extent that other proposals com- ing to diversify their own assets away from just oil and
plement these ideas or promote investment by SWFs gas. These funds would not exist if oil and gas produc-
more efficiently, they should also be pursued. The main ers did not want to start planning for a future where
point is that something ought to be done to put this other revenue streams besides carbon-based ones start
excess SWF capital to work promoting renewables. The contributing to the countries’ fiscal stability. In addition,
timing could not be better: SWFs have lost billions in re- many of these countries, especially those in the Gulf,
cent months on account of losses sustained in the finan- are seeking major image makeovers. This is evidenced
cial industry where much of their investment capital was by the recent surge in enthusiasm for green energy in
located. They are thus sitting on their cash reserves, hold- the Gulf: Abu Dhabi is investing in a $20 billion carbon-
ing out for a sure bet. With the proper U.S. government free city, Dubai and Qatar have both recently announced
incentives in place, a financially-lucrative renewable en- massive investments in solar power plants, and green
ergy investment scheme could be exactly what these energy conferences are sprouting up throughout the re-
funds are looking for right now. gion. Simply put, the Gulf—which maintains by far the
largest SWFs in existence today—is on board with re-
One can foresee two major objections to any pro- newable energy. Indeed, it is in their interest to promote
posed incentive regime, but these can be either miti- solar power in particular—the Middle East has a com-
gated or dismissed by reframing the argument. The first parative advantage in promoting this technology, as the
objection was alluded to earlier: this notion that were sun is their greatest underutilized asset.
SWFs to become major shareholders in renewable
energy companies, they could potentially wreak havoc This proposal is as simple as it is novel. Use incen-
with U.S. energy infrastructure or disseminate sensi- tives, whether regulatory, tax, or something even more
tive technologies. Historic practice suggests otherwise. efficient, to promote renewable energy investment in the
SWFs have not been the activist investors that naysay- United States by capital-rich SWFs. It is hard to find a
ers predicted they would be; in fact, they may not be true loser in this proposal, as each major player seems
activist enough, but that is a topic for another day. Even to take at least something significant away from this
assuming that these funds would seek to take ac- grand bargain. The benefits of this scheme are many:
tions that were potentially harmful to renewable energy the U.S. receives sorely-needed capital to boost its re-
companies for some political purpose, ample legal au- newable energy sector, a revitalized labor-intensive re-
thority exists within both state and federal law to limit the newable industry helps create millions of “green” jobs,
ability of shareholders and lenders, even major ones, from the environment benefits without as much U.S.-led in-
acting in ways that harm companies and minority share- vestment, green technologies would be spread to the
holders. If this does not allay concerns, an alternative Arab Gulf and other parts of the developing world, and,
proposal recently floated by legal scholars Ronald best of all, the United States would effectively be us-
Gilson and Curtis Milhaupt could do the trick: suspend ing the money it spends on dirty, foreign-sourced fuels,
SWF shares’ voting rights, at least until they are sold namely oil and gas, to subsidize and promote the do-
to third-party investors. This regime would effectively mestic renewable energy sector. The irony is almost too
mitigate any explicit negative influence that a SWF wonderful for words.
investor would have on a company’s Board of Directors,
while at the same time allowing the fund to reap the Rami Turayhi is a senior contributor with the
financial benefits inherent in company ownership. Diplomatic Courier magazine where he reports on ener-
gy security and the Middle East. Mr. Turayhi is currently
The second and more substantive objection can pursuing a JD at Columbia Law School in New York.
actually be turned on its head to argue vociferously G8
for increased SWF investment in renewable energy. Summit 2009

39
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Summit 2009

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Summit 2009

41
Drafting a Carbon Emission
Regulation System for the United States:
Insight Provided by a Carbon Tax
By Joseph Vandette, Hinckley Scholar, University of Utah Hinckley Institute of Politics

Once deemed a viable alternative to reduce carbon A carbon tax level is predetermined and this additional
emissions in the United States, a national carbon tax has fixed cost attributed to energy prices will allow both en-
seen dwindling support. Momentum in favor of a market- ergy producers and energy users to more easily deter-
based cap-and-trade system has been growing steadily mine their cost structures. Although price certainty ex-
in the United States Congress, where draft bills of carbon ists under this scenario, carbon taxes do forfeit the ability
emissions cap-and-trade programs have outnumbered to guarantee an exact quantity of emission reduction.
national carbon tax proposals by a large margin. The Contrarily, under a cap-and-trade scheme, a limited
establishment of the European Union Emission Trading supply of emission permits are distributed, which guar-
System (EU-ETS) and other regional cap-and-trade ini- antees the total carbon emission levels can be reduced.
tiatives in the United States has furthered the justifica- The cost of emitting carbon in a cap-and-trade program,
tion for a similar nationwide system in the United States. however, is determined by the demand for the emis-
Moreover, President Obama’s 2010 budget has called sion permits, which correlates with factors such as the
for a cap-and-trade program to simultaneously generate level of economic activity, seasonal demand for energy,
revenues and reduce carbon emissions in the coming price speculation surrounding tradable permits, and gen-
years. Though a national carbon emissions tax currently eral energy prices. Because these factors are in constant
seems to be an unlikely candidate for regulating carbon flux, energy consumers under a cap-and-trade system
emissions in the United States, the unique advantages of a are likely to pay inconsistent prices for energy, which
national carbon tax should be considered when drafting is burdensome for businesses trying to manage and
a carbon emission reduction program. forecast costs. Draft carbon emissions cap-and-trade
bills will likely be effective in reducing specific levels of
Under either carbon emission reduction program, carbon emissions, but the program should also incor-
the potential exists for the program’s effectiveness to be porate a form of price regulation to ensure cost stability
undercut by political bargaining and manipulation that for consumers.
results in certain industries gaining exemptions from the
regulations. As exemplified in the EU-ETS, free carbon The urgency of the climate issue is grounds for
emission permits were allocated to energy producers swift implementation of a United States emission re-
in attempt to decrease financial burdens for these car- duction program. A national carbon emissions tax has
bon emission-intensive industries. This practice was the potential to be instituted relatively quickly via
partially responsible for the “windfall” profits realized the existing tax code by utilizing the time-tested
by energy companies1; energy producers passed on structure and collection mechanisms of the Internal
“implied” increased market costs to consumers2. The Revenue Service5. In contrast, the creation of a carbon
Obama administration has expressed interest in allo- emissions cap-and-trade market may require the
cating all carbon emissions permits through an auction formation of a corresponding regulating agency to
process, enabling a more equitable distribution. How- mentor the new commodity market, which could delay
ever, in recent draft cap-and-trade bills Congress has emission reductions.
utilized free emission allowances as a ploy to gain bi-
partisan and businesses support3. In contrast, a carbon The recent failure of the under-regulated and convo-
tax has the potential to be all-inclusive and non-bias by luted financial markets would likely necessitate a great
including bylaws that prohibit tax exemptions, though deal of transparency in a cap-and-trade program—a
the tax could be rendered ineffective if some industries difficult feat for a complex system. A national carbon
are successful in gaining exemptions. To ensure signifi- tax would be administratively simplistic and structur-
cant emissions reductions are achieved and to prevent ally transparent in comparison. A synergistic linkage of
“windfall” profits, draft carbon emission cap-and-trade different cap-and-trade systems throughout the world
bills should strive to employ only auction-based permit may further delay implementation of such a system. A
allocation schemes. carbo tax, however, would likely be more easily adapted
internationally because goods imported from countries
Energy price volatility, recognized as one fault in without carbon emission regulations could simply be
the EU-ETS4, should be a principal concern when draft- taxed at the border. U.S. lawmakers should consider
ing United States carbon emission regulation bills. As a transparency and expediency top priorities when drafting
G8 priced-based approach to regulate carbon emissions, carbon emission reduction legislation.
Summit 2009 a carbon tax would eliminate price volatility concerns.
42
The Noble Group

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Climate Change & Energy Security

Though the momentum surrounding an impend-


ing United States carbon emissions cap-and-trade 1 Ellerman, A. E., & Joskow, P.L. (2008). The European Union’s

market may have overwhelmed the possibility of emission trading system in perspective. Washington, DC: PEW
Center on Global Climate Change. Retrieved February 1, 2008,
a national carbon tax 6, the comparative advantages from http://www.pewclimate.org/docUploads/EU-ETS-In-Per-
of a tax should be incorporated into draft carbon spective-Report.pdf
emissions cap-and-trade programs. Relative price
2 Houser, T., Bradley, R., Childs, B., Werksman, J., & Heilmayr,
certainty should be a priority in a cap-and-trade
R. (2008). Leveling the carbon playing field: International compe-
program, which can be achieved by setting price tition and US climate policy design. Washington: Peterson.
ceilings for emission permits or by establishing other
cost-containment mechanisms as insurance against 3 Ibid.
drastic increases in price. While essentially serving the 4 Ellerman, A. E., & Joskow, P.L. (2008).
function of a complicated carbon tax, a modified
cap-and-trade system may prove more politically 5 Metcalf, G.E. (2007). A proposal for U.S. carbon tax swap: An

palatable than an outright tax. The Obama admin- equitable tax reform to address global climate change. (Discus-
istration’s call for an auction-based distribution of sion Paper 2007-12). Washington, DC: Brookings Institution.
Retrieved February 1, 2009, from http://www.brookings.edu/~/
permits should be considered a valuable appeal and media/Files/rc/papers/2007/10carbontax_metcalf/ 10_carbon-
political manipulation of this component of a cap- tax_metcalf.pdf
and-trade program should be limited. Moreover,
6 Metcalf, G. E. (2008, December). Analysis of a carbon tax. A
given the recent failures in the financial market, trans-
National Carbon Tax: Another Option for Carbon Pricing. Lecture
parency should be paramount in a United States at the Environmental and Energy Study Institute Congressional
cap-and-trade program. Briefing, Rayburn House, Washington, DC.

Joseph Vandette graduated with a B.S. in Envi-


ronmental Studies and Marketing from the University
of Utah and completed a Hinckley Institute of Politics
internship in Washington, DC with the Department
of Energy.

G8
Summit 2009

44
The Noble Group

G8
Summit 2009

45
Finding Security in Climate Change
By Lincoln Davies, Associate Professor of Law, University of Utah S.J. Quinney College of Law

It is easy to chronicle the ills of climate change. The


phenomenon threatens species, ecosystems, the very
fabric of the natural world. It endangers our economy,
the way in which agriculture now provides for us, the
water supplies we rely on. It imperils global security,
political stability, existing migration and disease pat-
terns. Climate change could, as one multi-expert report
recently concluded, “destabilize virtually every aspect of
modern life.” It is, quite simply, the most daunting chal-
lenge we now face.

Despite the near-certainty of climate change’s many


detriments, its emergence is not cause only for pessi-
mism. There is at least one silver lining in the looming
cloud of global warming.

Ecological protection often is maligned as forcing a


choice between “jobs or nature,” “the economy or the
environment.” For decades, naysayers have used this
false dichotomy as a foil to defeat environmental poli-
cies. Even now, as the United States Congress takes up
the climate change question in earnest for the first time,
advocates of the short-term point to the current global
economic crisis as cause for even further delay. What
such critics fail to recognize, however, is that climate
change does not present an either-or choice. As schol-
ars have long noted, acting to forestall climate change
promises an economic opportunity for which every na-
tion strives: energy security.

Preventing climate change, indeed, demands chang-


ing course on energy policy. Energy use and climate
change are inextricably intertwined. By far, the largest
source of greenhouse gas emissions comes from the nation’s energy insecurity quandary. Coal and natural gas
consumption of fossil fuels—the cars we drive, the elec- contribute heavily to greenhouse gas emissions, though
tricity we produce. By the same token, the source of our the former much more than the latter. Natural gas also
energy insecurity can be found in a virtually identical lo- poses security risks, particularly in transportation. Nu-
cus—the reliance on scarce fossil fuels controlled by for- clear fission technologies long have presented their own
eign nations and uncontrollable cartels. Thus, fixing one national security and environmental concerns, from the
problem naturally profits the other. Sufficiently reducing risk of proliferation to the dilemma that no nation has yet
fossil fuel consumption will eliminate the climate change solved: how to safely store nuclear waste.
risk. Shifting from fossil fuels to other energy sources
likewise will moderate the political and economic risks As governments face these tradeoffs, a clear path
engendered by energy insecurity. has emerged. Renewable energies such as wind, water,
and solar power offer a clean solution to both climate
Different nations have different resources, and thus, change and energy insecurity. The modern mantra
carry different visions of how to reach their own ener- of environmentalism is “sustainability,” the notion that
gy security. For the United States, electricity increas- sound policy should simultaneously protect the environ-
ingly appears the most ready substitute for petroleum ment, foster economic development, and ensure equity
consumption, at least in the transportation sector. But for the long-term. These renewables offer progress on
the United States’ current electricity mix is roughly 50% all three fronts. By reducing pollution, including green-
coal, 20% natural gas, and 20% nuclear. Consequently, house gas emissions, renewables are far more environ-
G8 simply switching from oil to electricity in the United States mentally sound than traditional fossil and nuclear fuels.
Summit 2009 would solve neither the climate change problem nor the By offering the possibility of new technological progress
46
Climate Change & Energy Security

and infrastructure overhauls, renewables hold immense


promise economically. And by shifting consumption
away from limited resources—oil, coal, and nuclear—
to those that virtually every nation already has—sun,
wind, and water—increased reliance on renewables
is likely to make health and wealth distribution much
more equitable.

Renewables do not come without limitations. Their


on-and-off availability throughout any given day means
that, currently, they can only supplement other tradi-
tional electricity production resources. Their nascence
means that the technologies for harnessing their power
are not nearly as efficient as they someday will be.
Moreover, the fact that there presently is no realistic
technology available for storing electricity en masse
means that a full transition to renewables likely remains
decades away.

But the limits of today should not cabin our vision of


what tomorrow can be. Simply because the path to a fully
secure, sustainable, and energy-independent society is
a long one does not mean we should not take the jour-
ney’s first steps.

Many nations already have begun. A majority of


European states have adopted “feed-in tariffs” that en-
sure renewable energy projects a preference price on
their power. Other European nations and, importantly,
more than two-thirds of the United States have adopted
“renewable portfolio standards” that obligate electric
utilities to acquire a given percentage of their power
from renewable resources by a date certain. Adoption
of any of these policies—or a combination of them—
can help spur the transition away from climate change
and energy dependence and toward sustainability and
energy security.

Increasingly, our tendency as a society is to focus


on the myriad ills that climate change, if unchecked,
may deliver. If this will yield action that prevents the
disaster of climate change from transpiring, so be it.

Perhaps, however, that view is too narrow. Perhaps


we should see in climate change not just a burden to be
lifted, but also an opportunity to rise up to. If we do, we
might just find in climate change a kind of security we
have never before enjoyed.

Lincoln Davies is an Associate Professor of Law at


the S.J. Quinney College of Law, University of Utah. He
teaches and researches on energy and environmental
law, administrative law, and civil procedure. G8
Summit 2009

47
The G-8 Global Partnership
By Dr. C.S. Eliot Kang, ISN Acting Assistant Secretary – U.S. Department of State

The proliferation of weapons and related materials The U.S. Department of Defense continues invest-
remains a concern for all of us in the international com- ing resources in close partnership with the Russian
munity, and President Barack Obama and Secretary Federation and other international partners to complete
of State Hillary Clinton have made plain that combat- the Shchuch’ye Chemical Weapons Destruction Facility
ing this threat worldwide is among the United States’ to eliminate the most dangerous type of chemical weap-
highest international security priorities. on—nerve agent—by 2012.

The G8 Global Partnership against the Spread In another area of success, the United States funds
of Weapons and Materials of Mass Destruction (GP) the elimination of one Russian strategic nuclear subma-
serves as the primary multilateral financial commitment rine per year, which has been budgeted through 2012,
to implement and coordinate chemical, biological, radio- depending on turnover of submarines for elimination.
logical, and nuclear (CBRN) threat reduction activities The program is also eliminating one Typhoon vessel and
worldwide.1 At Kananaskis, G8 leaders undertook a far- will shortly award a contract to eliminate a Delta III sub-
reaching and global commitment “to prevent terrorists, marine. Over the same period, funding is also budgeted
or those that harbor them, from acquiring or developing to help eliminate intercontinental and submarine ballistic
nuclear, chemical, radiological and biological weapons; missile launchers at least through 2012.
missiles; and related materials, equipment and technology.”
While GP activities have been focused in Russia and Key interim goals were also met at the end of 2008 with
the former Soviet Union (FSU) since the formation of the respect to the U.S.-Russia Bratislava Nuclear Security
GP in 2002, implementation of GP geographic expan- Initiative, including the completion of material protection,
sion to combat CBRN proliferation and terrorism threats control and accounting upgrades at all sites as defined
worldwide is now underway. in the Initiative.

The U.S. Government re- On scientist engagement, the


mains focused on fulfilling its United States and other GP mem-
GP commitments in Russia and bers have also made great progress
the FSU, while at the same time through the International Science and
working to implement the decla- Technology Center (ISTC) in Moscow
ration made by G8 leaders at the and the Science and Technology
2008 G8 Summit in Hokkaido Center in Ukraine (STCU). Dual-use
Toyako to begin GP geographic expertise that could be at-risk for
expansion to combat 21st cen- diversion is a global threat, and les-
tury threats. Going forward, the sons learned through the ISTC and
GP can serve as a mechanism to STCU can be applied worldwide to
secure critical financial support address the global threat posed
for concrete activities to combat by terrorists and proliferant states
global CBRN terrorism and pro- seeking weapons and applicable
liferation threats. expertise. There is a growing con-
sensus that the ISTC in Moscow
Current Successes: Meeting Commit- must be transformed to address emerging global sci-
ments in Russia and the FSU by 2012 entific, nonproliferation, and security needs recognized
by ISTC Parties. We look forward to working closely as
The U.S. has committed over $1 billion per year un- partners with the Russian Federation to accomplish this.
der the Global Partnership, and is on target to meet its
pledge of $10 billion over ten years by June 2012. Overall, the United States has made great strides
and is on target to meet GP commitments by 2012. That
Initial GP priorities identified at Kananaskis—the said, further progress must be made in turning Kanan-
destruction of chemical weapons, the dismantlement of askis pledges into concrete projects and activities. As
decommissioned nuclear submarines, the disposition the global financial crisis continues, it will be imperative
of fissile materials, and the employment of former to allocate funds precisely and to cooperatively develop
weapons scientists—remain critical initiatives, and plans to meet these critical commitments.
the U.S. continues to honor its commitments made in
these areas.
G8
Summit 2009

48
The Future of the Global Partnership (GP) ar weapons out of the hands of terrorists. Efforts will be
directed to implement President Obama’s call to se-
Expansion of the G8 GP is now a reality, and every cure all vulnerable nuclear materials around the world
effort must be made to make that expansion a success. within four years, and this goal will require the coordina-
The 2008 Hokkaido Toyako Summit leaders’ statement tion and support of our international partners, especially
endorsed the expansion by stating, “We also recognize within the Global Partnership mechanism.
that the GP must evolve further to address new, emerg-
ing risks worldwide if we are to prevent terrorists or In addition, the United States believes the GP is an
those that harbour them from acquiring chemical, bio- excellent venue to implement partnerships on meet-
logical, radiological, nuclear weapons and/or missiles.” 2 ing international commitments such as United Nations
Security Council Resolution 1540, the Global Initiative
The United States believes successful GP expan- to Combat Nuclear Terrorism, and the Biological and
sion will involve three elements: geographic expansion Chemical Weapons Conventions.
of GP projects into countries beyond Russia and the
FSU; expansion of GP membership to include new part- Going forward and beyond 2012, the United States
ners (both donors and recipients) from different regions remains committed to expanding global threat reduction
throughout the world; and implementation of new con- efforts worldwide in partnership with the G8, the entire
crete global threat reduction projects in priority interna- GP, and new potential members. G8 leadership on non-
tional security areas that GP members can support. proliferation and global threat reduction will be critical
to combat the threats we collectively face from terrorists
In addition to the $1 billion allocated per year and proliferant states seeking to acquire weapons and
for threat reduction activities previously mentioned, the related materials, technology, and expertise. The coop-
U.S. obligated more than $380 million in fiscal year 2008 erative spirit of CBRN threat reduction established under
to reduce the CBRN threat in nations outside the FSU. the GP is critical to achieving this objective, and the U.S.
The focus for that global funding has been ensuring that looks forward to continued close cooperation with the
dangerous materials, technology, and expertise are safe Global Partnership in the years ahead.
and secure in regions with high risk of terrorism, improving
export controls and border security, and engaging C. S. Eliot Kang, Ph.D., became the Acting Assis-
former weapons scientists in Iraq and Libya. tant Secretary for the Bureau of International Security
and Nonproliferation on 20 January 2009. Previously,
To further implement expansion, the GP is also he served as the Deputy Assistant Secretary for Threat
considering outreach to new members to provide new Reduction, Export Controls, and Negotiations and
resources, both financial and technical, to further the served, concurrently, as Special Adviser for North
goals of the GP and to aid in its geographic expansion. Korean Denuclearization.

In terms of new project areas, the United States


maintains flexibility in its authorities to maximize funding
opportunities across all areas of CBRN and missile 1 The G8 GP is a $20 billion commitment over 10 years, estab-
threat reduction. Developing specific focus areas for lished in 2002 at the Kananaskis Summit in Canada, and of which
global threat reduction projects could help other G8 and the U.S. has pledged $10 billion by 2012. There are currently
GP members gain financial support for new projects 22 member nations (including the G8) plus the European Union
now and beyond 2012. in the GP. See: http://www.canadainternational.gc.ca/g8/index.
aspx?lang=eng

On April 5, 2009, President Obama outlined his strat- 2 Report on the G8 Global Partnership: http://www.mofa.go.jp/

egy for nuclear security in a speech in Prague, Czech policy/economy/summit/2008/doc/pdf/0708_12_en.pdf


Republic that stressed the importance of keeping nucle-
G8
Summit 2009

49
The Most Dangerous Threat
By David Irvine, Retired Brigadier General – U.S. Army

The changes in American life and our politics wrought frittered away with North Korea and Iran by the refusal of
by 9/11 have been profound, but they would pale to in- President Bush to apply Churchill’s maxim: “Jaw-jaw is
significance should a terrorist nuclear attack take place better than war-war.”
in New York, Washington, or, for that matter, anywhere
in the world. It is highly probable that among the victims As for Pakistan, we seem to have fallen back on
would be the Bill of Rights, with all that would imply for hope as our plan: we hope that the government has full
our system of democratic government. Nuclear terror- control of its nuclear weapons; we hope that the intel-
ism from non-state actors and nuclear proliferation are ligence services are loyal to President Zardari, and we
the most dangerous threats we face and have the great- hope that Abdul Khan is not shipping atomic secrets
est likelihood of occurring. and material to North Korea, Iran, or bin Laden.

While we know where most of the world’s store of With each of these three nations, unless the fis-
warheads and fissionable material is likely to be, we have sionable cat is already out of the bag, our ability to en-
no way of knowing where all may be hidden away. Part sure that loose nukes, nascent nukes, and new nuclear
of the problem is of our own creation. For decades, the weapons remain secured or undeveloped—Graham Al-
U.S. has transferred enriched uranium to more than 40 lison’s three priorities for preventing nuclear terrorism—
nations, which, if misused, could construct more than will depend, not on our military strength, but on the
1,000 weapons; however, little has been recovered, vitality of American diplomacy and economic strength.
even though it was supposed to have been returned as These necessary tools cannot be deployed without di-
spent fuel. rect negotiation. To be successful with North Korea and
Iran, President Obama, personally, will have to refurbish
The importance of recovering that material cannot old alliances and work to create new ones. It isn’t so
be ignored, but the most urgent focus of our attention much a challenge of structuring new architecture that
should be the risk of theft or unauthorized transfer of will operate with greater effect, as it is getting more in-

weapons or weapons grade material from Pakistan and ternational commitment to and putting enough resourc-
North Korea, and the emerging Iranian uranium enrich- es into Cooperative Threat Reduction, the International
ment program which threatens the Middle East tinder- Atomic Energy Agency, the Nuclear Proliferation Treaty,
box like nothing else ever has. No challenge the Obama and the Nuclear Suppliers Group—to enable existing
administration faces during the next four or eight years programs to function as they were intended.
is of greater significance to American security than what
happens with these nations, and in each instance, this The full cooperation of Russia, India, Pakistan, Is-
president begins his term badly hobbled by the ap- rael, and China are indispensable to a global nuclear se-
G8 proach of his predecessor to all three. Eight years were curity effort that must come to grips with the danger of
Summit 2009

50
Non Proliferation & Terrorism

a nuclear-armed North Korea and Iran—and a Pakistan The focal point for defeating nuclear terrorism is
teetering on the verge of chaos. The world cannot af- where the weapons and weapons grade material are
ford to allow Pakistan’s weapons and technology to go stored. The Bush administration’s most glaring failure
astray. It is to the Obama administration’s credit that it was its mismatch of national resources to what and
is rethinking the U.S. presence in Afghanistan with more where the real threat is. A quantity of enriched ura-
of an eye to Pakistan’s security and stability. Whatever nium sufficient to construct a nuclear bomb is, in vol-
may be the definition of the military mission at the mo- ume no larger than a six-pack; the necessary plutonium
ment, we are perceived by the Iraqis, Afghans, and Pak- would equal a couple of cans. Lead shielding would
istanis as occupiers at best and imperialists at worst. add size and weight, but it would substantially reduce
Foreign occupation breeds resentment and hatred, and the probability of detection. In view of that, the detec-
our presence and cross-border operations become tion challenge cannot even be framed in the needle-
threats to the stability of the very governments we seek in-a-haystack comparison, because the linear scale of
to assist. We can’t deal with Iran without meaningful porous geographic borders to the size of the object of
Russian help. We might have had more of that had we any search defies imagination. We cannot successfully
been less eager to offer NATO membership to former interdict even the hundreds of tons of illegal drugs which
Soviet states. We can’t view (or treat) every Muslim as find their way into the U.S. every year.
a potential terrorist.
If the Obama administration is seeking an on-
The irrationality of our current national security strate- the-shelf set of excellent policy recommendations, it
gy becomes quickly evident when we compare resource need only look to “Securing the Bomb 2008,” a com-
commitment and attention focus to threat ranking. prehensive study commissioned by the Nuclear Threat
Nuclear terrorism is our most dangerous threat, yet over Initiative, headed by former Senator Sam Nunn. Much
the last 15 years; we have only committed $7 billion to time and money have been wasted, the task to be
the Cooperative Threat Reduction program, which has accomplished is very, very difficult, but the price of
made a good start (but not much more) with former USSR failure beggars description.
stockpiles. Neither Iraq or Afghanistan poses a nuclear
threat to us, but those wars are being financed on a Mr. Irvine is an attorney in private practice in Salt Lake
national credit card at a cost to date (depending on whose City. He was commissioned as a strategic intelligence
numbers are used) of $1.6 trillion. If the real focus of those officer in the Army Reserve in 1967 and retired as a brig-
wars is al Qaeda, the cost per potential terrorist killed adier general. He is a graduate of the Army War College,
to date is ridiculous. We are spending unsustainable and maintained a faculty assignment for 18 years with
sums of borrowed money in an attempt to kill off a terror the Sixth Army Intelligence School.
delivery system that can regenerate itself exponentially G8
faster than we can field combat battalions. Summit 2009

51
Encouraging Nuclear Nonproliferation & Disarmament:
Lessons from Social Psychology
By Dr. Maria Rost Rublee – University of Auckland

With continuing nuclear crises in the Middle East Social psychology also helps us understand how
and East Asia, the question of how to promote nonpro- the NPT changes the social cost-benefit equation of
liferation and disarmament is more important than ever. nuclear decision-making. Some states support nuclear
Recent social psychology research highlights multiple nonproliferation because they are persuaded that nu-
ways to encourage countries, organizations and even clear weapons are not in their best interest. However,
individuals to help stop the spread of nuclear weapons. other states refrain from nuclear weapons because they
are conforming; that is, they may wish to develop nucle-
Strengthening the Nuclear ar armaments, but consider the social costs too high.
Nonproliferation Regime Without the NPT, the cost-benefit equation changes
dramatically for these states, and not in favor of nuclear
The Nuclear Nonproliferation Treaty (NPT) and as- nonproliferation.
sociated agreements—known as the nuclear nonpro-
liferation regime—are more important than ever. The These normative benefits would disappear if the
regime embodies the nuclear nonproliferation norm— NPT were weakened or if the treaty collapsed. In that
that is, it provides the normative foundation for saying case, the normative costs of going nuclear would drop,
“civilized states don’t seek nuclear weapons.” Before and states around the world may reconsider their nu-
the NPT, acquiring nuclear weapons was an act of clear restraint. The policy conclusion is to maintain and
national pride; after, it became an “act of international strengthen the NPT so that embedded social mecha-
outlawry,” noted U.S. Ambassador Thomas Graham. nisms remain robust.

But the NPT does more than just draw a line in the Rethinking Our Approach to “Rogue”
sand. It also creates social mechanisms that can influ- States
ence how policymakers think about the value of nuclear
weapons. For example, social psychology has found Another relevant lesson from social psychology is
that the need to appear consistent is a powerful motiva- from the “in-group vs. out-group” literature. People are
tor of human behaviour. States that have signed and rati- more likely to accept normative pressure from those they
fied the NPT, as well as participated in treaty review con- like, while normative pressure from the “disliked” tends
ferences and other associated activities, are less likely to backfire—think of rebels who gain status by breaking
to later withdraw from the NPT and/or covertly seek the rules. For this reason, a rogue state is unlikely to
nuclear weapons. This is true not only because individu- respond well to lectures from the country benefiting
als feel a need to act consistently but also, because, over most from the status quo, which is why normative pres-
time, a bureaucracy dedicated to the goals of the NPT sure from the U.S. usually adds fuel to the fire.
grows within the state, gaining influence and leverage.
Such a bureaucratic establishment makes it harder to A better way to approach problem states is through
reverse course—a form of institutional consistency. countries and experts considered neutral. Libya, which
gave up its nuclear weapons program in 2003, would
Another social mechanism embedded in the NPT is be an especially good choice. The Libyans can argue
what psychologists call a “descriptive norm”—that is, from experience about the benefits of abiding by the
people notice what we do at least as much as what we NPT, including increased global economic integration
say. The more people who do X, the more everyone else and greatly reduced concerns about state security.
thinks that X is the right thing to do. In this way, the NPT Another good choice is China, whose experts can talk
creates a clear descriptive norm that shapes how policy- about the value of focusing on economic development
makers view those who do and do not adhere to it. Almost from the point of view of a developing country. Other
every state in the world is a member of the NPT, and neutral states that will not be seen as mouthpieces of
almost all of those states adhere to their treaty com- Washington are also better positioned to make effective
mitments. So the NPT is about more than words and normative arguments.
lectures—it’s also about overwhelming global compli-
ance, which helps to influence how elites conceptualize Social psychology also tells us that creating con-
nuclear weapons. Indeed, few countries are lining up to flict destroys the fertile ground necessary for normative
G8 become the next “rogue” state. influence. Conflict polarizes people, leading them to shut
Summit 2009

52
Non Proliferation & Terrorism

media coverage. For example, Peace Depot in Japan is a


small NGO with big impact. The group publishes reports
that outline the Japanese government’s promises on
nuclear issues, and then grades the government based
on their action (or inaction) that year. The Japanese me-
dia report extensively on Peace Depot materials, ampli-
fying their influence.

Peace groups are also acting creatively—and on


shoe-string budgets. For example, the New Zealand-
based Parliamentary Network for Nuclear Disarmament
(PNND) facilitates cooperation and information sharing
among anti-nuclear parliamentarians around the world.
If members in one country find a particular tactic effec-
tive, they can share it world-wide with other members,
who can then adopt the strategy for use at home.

Because they can leverage their influence and


adapt tactics to their local situation, peace NGOs are
a low-cost yet effective way to promote the twin norms
of nuclear nonproliferation and disarmament.

Small, Steady Steps on Disarmament


Atomic Bomb Dome in Hiroshima
Recent events have heartened supporters of nucle-
off normative messages from “enemies.” The policy les- ar disarmament—from U.S. President Barak Obama’s
son here is if we are negotiating to end a nuclear weapons speech in Prague to the Russian nod to further re-
program, we should avoid creating new points of conflict duce nuclear stocks. What can we do to continue the
in other areas, thus increasing the likelihood that prob- momentum toward nuclear disarmament? Social
lem state will comply. This does not mean that we should psychology might advise, “Small, steady steps.” When
avoid conflict over the issue of nuclear proliferation. Rath- asked to make big sacrifices, people often refuse. But
er, if stopping nuclear proliferation is our highest priority, people find it easier to make small sacrifices and will of-
we need to place all other conflicts on the back burner ten agree to do so, which makes them much more likely
until the issue is solved. Whether this is realistic or not to consent to larger sacrifices for the same cause later
is a judgment call for policymakers. The point is that in- on. This is because “commitments grow their own legs,”
troducing new areas of conflict will likely undermine ex- as psychology Robert Cialdini argues. Once a small
isting normative influence we have on the nuclear issue. commitment is made and kept, people often internalize
the commitment, making bigger sacrifices more likely.
Supporting Peace NGOs
So instead of pressuring nuclear weapons states to
A recent study showed that in three different move toward disarmament immediately, a better meth-
democracies, peace nongovernmental organizations od is to ask for small but sure steps in that direction,
(NGOs) helped keep the countries non-nuclear by such as ratification of the Comprehensive Test Ban Trea-
making the political costs of going nuclear prohibitive. ty, negotiations for a Fissile Material Cut-Off Treaty and,
So while conservative elites may have preferred the of course, further reductions in nuclear stocks. By getting
nuclear option, they instead decided to stay in power the ball rolling, these incremental efforts will likely lead
and settle on other ways to manage insecurity, such as to internalized commitment to nuclear disarmament,
accepting a security guarantee from another country. making the ultimate goal more likely.

While peace NGOs perform many tasks, activities Maria Rost Rublee is a lecturer at the University of
that attract media attention are particularly helpful in Auckland and author of the recently published Nonpro-
influencing government policy. By focusing public aware- liferation Norms: Why States Choose Nuclear Restraint
ness on the nuclear issue, peace NGOs make it harder (Athens: University of Georgia Press, 2009).
for governments to craft policy undermining either
nuclear nonproliferation or disarmament. Some peace G8
NGOs are becoming increasingly effective in leveraging Summit 2009

53
On Combating Global Terrorism
By Ryan Harding, Correspondent - Diplomatic Courier Magazine

Since September 11, 2001, discussions about ter- differences, the “shift in the nature of terrorism has been
rorism have centered largely on the state of al-Qaeda, exaggerated” inasmuch as “traditional terrorism” and
its membership, and its systematic circumscription. “new terrorism” have in common those very things used
With some success, pressure has been placed on main to divide them; their method, objective, and scope. In ad-
arteries providing al-Qaeda and other like-minded and dition to this, because terrorists have been described as
like-willed organizations with material support, leaving an amorphous enemy whose demands are incapable of
those organizations ischemic and depleted of financial being met, terrorism is seen as something seemingly in-
support. Yet, despite this attention, terrorism persists. surmountable, leaving us often to forget that “[t]he attacks
of 11 September 2001 by al-Qa’eda were not simply a
Now, America’s eye has shifted away from Iraq to Af- form of cathartic punishment; they also served a broader
ghanistan and Pakistan, the latter of which was recently strategic purpose with the aim of coercing the govern-
labeled “terrorism’s epicenter.” With fresh attacks occur- ment of the United States to change its foreign policy.”
ring in Mumbai, Lahore, and elsewhere in the region, the The question, therefore, is, if indeed conquering terrorism
challenges facing South Asia (particularly Pakistan) will is not an insurmountable goal (keeping in mind, however,
be difficult to surmount. However, preceding this great that the threat of terrorism should not be underestimat-
shift of attention and resources, it would be a beneficial ed), what is the appropriate response to terrorism?
exercise to take stock and consider the current state of
global terrorism both as an idea and a phenomenon. Is Terrorism Losing Ground?

Defining Terrorism Patrick Porter, in his aptly titled article “Long war
and long telegrams: Containing Al-Qaeda,” rehabilitates
Discursively, terrorism has come to take on many George Kennan’s Cold War strategy of containment.
different meanings and has been cast in numerous Porter develops, with great efficacy, a narrative about
lights. If there is one thing that can be said about the terrorism which runs counter to most. Citing success in
body of literature that exists on the subject of terrorism, disrupting the flow of capital to terrorist organizations, in
it is that there is a complete lack of consensus about not addition to “restricting the movements of militants and
only how “terrorism” should be countered strategically, tracking down principal leaders,” the U.S. could embark
but its meaning as an idea; what, as a term, it implies on a policy of containment. Porter’s idea of containment
and to whom it refers; and how it is currently manifesting is also predicated on the idea that al-Qaeda and like
itself. The issue is certainly semantic at its heart: without organizations will continue to alienate former supporters
international agreement about the meaning of terrorism, and offend most Muslims.
there can be no reconciliation between views. Nonethe-
less, in order to come to grips with the issue of global While attacks have not ceased and are becoming
terrorism, the definition of terrorism must be somewhat more visible (with attacks targeting high profile targets
flushed out. such as Sri Lanka’s cricket team), movements against
violent extremist brands of Islam also have not ceased.
The idea that 9/11—or even the decades preced- In Algeria, the organization known as the Salafi Group
ing it—ushered in a new era of terrorism has pervaded for Call and Combat (GSPC) has experienced difficulty
political discussions on terrorism and media coverage recruiting, one of which reasons is that “the GSPC no longer
of terrorism. Making taxonomical sense of this new spe- have the support within the population” due to a draw-
cies of terrorism, it was deemed that this new form of down of tensions in Iraq and a decline in Al-Qaeda
terrorism—typified by violent militant Islamic groups— activity. In Bhubaneswar, Muslims from across India
was different from earlier forms in terms of, among united at an anti-terrorism conference in condemna-
many things, its objective (seemingly nonpolitical and tion of terrorism. In Pakistan, an opinion poll taken by
religiously motivated), method (indiscriminate, nonstra- Terror Free Tomorrow, shows that Osama bin Laden’s
tegic killing of bystanders), and scope (global, instead of popularity has declined steeply, from 33 percent in
regional or local). August 2007 to 18 percent in January 2008, and
in the northwest territory, it has fallen from 70 percent
Antonoy Field of the University of Warwick, howev- in August 2007 to 4 percent in January 2008. Al-
er, points out that idea of a “new terrorism falls short of Qaeda and linked cells of support have overplayed
a useful analytical concept” insofar as by segregating their hand with the local population, systematically
contemporary examples of terrorism from past examples alienating many of their supporters. Instead of being
G8 we obscure, and obviate the need to thoughtfully con- “the knight of Islam… [Al-Qaeda] persecutes and impov-
Summit 2009 sider, history. Field points out that while there are indeed erishes Muslims.”
54
Nuclear Non Proliferation & Terrorism

Nonetheless, terrorism continues to be a problem. overestimated nor should the West’s ability to gain favor
In November 2008 the world watched as terrorists killed in the eyes of those in the Middle East who are thought
over 170 people in Mumbai, harming an already strained to look upon the West unfavorably. After the earthquake
relationship between Pakistan and India. Pakistan has in Pakistan in 2005 “Pakistanis with positive views of
currently taken five of the nine “alleged collaborators” in the United States” went up “from 23 per cent to 46 per
custody as it continues to experience strained relations cent.” And, after the Tsumani, the United States gained
with India. Pakistan has seen multiple terrorist attacks ground in opinion polls, including in Indonesia.
in Lahore recently, one of which—perpetrated by the
Taliban—was directed at the Sri Lankan cricket team When tailoring policies in response to terrorism
and left five Pakistani policemen dead and seven play- it might help to look at the War on Terror through a
ers injured. constructivist lens: it might be that perhaps the lan-
guage of the War on Terror has circumscribed America’s
While terrorism has persisted elsewhere, with insur- response to terrorism to primarily military action, and the
gents representing the group al-Shabab firing mortars prospect of a “new terrorism” has obscured the way in
at a plane carrying a U.S. congressman out of Mogadi- which terrorism is approached and countered.
shu, Pakistan has grabbed America’s attention. Unable
to effectively govern much of its tribal frontier territory, Projecting a positive image through humanitarian
policymakers worry about it being used as a staging work is one of the most effective ways of undermining
ground for terrorist organizations. Also of concern is terrorist support and “undercut[ting] the image of Amer-
the interconnection between unrest in the northwest ica” as “the imperialist predator.” Even though terrorism
of Pakistan, and the country bordering it, Afghanistan. persists, it might be that America has overlooked the
However, in designing policy meant to combat this ter- greatest weapon in its arsenal: humanitarian aid.
rorism, somewhat of a shift in thinking is required.
Ryan M. Harding reports on International Organi-
While the idea that the germ of the modern phe- zations, Global Governance, and Latin America for the
nomenon of terrorism is socio-economically related Diplomatic Courier magazine in Washington, DC.
is hotly contested on both sides, the support terrorist G8
groups receive among local populations should not be Summit 2009

55
Democracy Promotion: Productive Long-term
Strategy, Not Counterterrorism Answer1
By Andrew Jensen, Hinckley Scholar, University of Utah Hinckley Institute of Politics

Democracy promotion has been a fundamental prin- factors within democracies should be isolated.7 James
ciple of U.S. foreign policy since the end of the Cold War Piazza first takes on the so-called “rooted-in-poverty
and has been used to prevent political extremism and hypothesis” that argues terrorism is the result of socio-
transnational terrorist violence in the war on terrorism. economic discontent. He points out that only three of the
According to this strategy, when democratic standards top ten countries experiencing terrorism-related casual-
are infused in a state’s political structure, the occurrence ties had low socioeconomic development and the top
or probability of terrorist acts will decline. Yet the empiri- ten cases with “intense” terrorist violence were all “medi-
cal data and case studies on the causes of transnational um to high” on the scale of socioeconomic development.
terrorist violence demonstrate this assumption moder- Additionally, the case-study analyses on relative depriva-
ately inaccurate in many vital respects. tion are rooted in the 1970s and the authors are too loose
with their definitions, often interchanging civil conflict and
The correlational studies literature on democracy domestic insurgency with terrorist activity. Indicators
and transnational terrorism illustrates that the presence based on “social cleavage theory”— particularly social
of democracy—notably during its weak and untried and religious division, multipartism, and the tendency
stages—often provides an unpredictable environment toward extremism—more accurately predict if a country
where terrorism is able to flourish. Even more advanced is prone to terrorism.8
democracies, like India, are susceptible to terrorist acts
due to other significant variables, such as social and re- Indian Heterogeneity
ligious division, multipartism, and the tendency toward
extremism2. On the other hand, more authoritarian India serves as an important example to demonstrate
states, such as China, with excessive rule of law often the inaccuracies surrounding many U.S. leaders’ insis-
preempt terrorist groups from organizing and carrying tence that democracy and development are solutions to
out violent political acts. the problem of terrorism. In 2003, India accounted for
75% of terrorist incidents among countries classified as
Theoretical Interpretations of Events “free” with most attacks originating from Pakistan.9 In
Data 2007, if deaths caused by terrorism in Iraq and Afghani-
stan are factored out, 1,093 of 7,113 (or 15%) of global
Although the arguments concerning terrorism and fatalities happened in India.10
democracy seem to have reached a watershed in their
primary focus on failed, failing, and weak democratic The social cleavage model seems to be more pre-
states as most susceptible to terrorist violence, there cise in documenting the complexities of the Indian case.
are still many states that have/do not fit into these ide- India is one of the most diverse countries in South Asia,
al types. Using various methodologies, scholars have encompassing copious ethnic factions and political par-
shown that terrorists hailed most often from democratic ties. Significant caste and religious rifts divide the coun-
countries in the past; that historically, terrorist attacks try along provincial and linguistic lines. Although Hindi is
occurred more often in democratic countries; and that the official and dominant language, its use is consigned
transnational terrorism transpired more often in states primarily to the northern part of the country.11
experiencing regime change.3 The story has been nar-
rowed further by using the ITERATE4 to determine that On the national level, these social and religious
established democracies are less prone to terrorist activ- fissures prove detrimental. Lok Sabha—India’s lower
ity than non-democracies, but a causal relationship was house of parliament—had thirty-eight different parties
also drawn between new democracies and frequency of from 1999-2004 and the dominant party of Bharatiya
terrorist acts5. As was later shown, most terrorist vio- Janaata only constituted 23.7% of total seats during
lence has been committed by individuals of the same this time.12 The uncertain political party structure with
nationality as their victims and most often in (frequently numerous ethnic and religious cleavages contributes to
mature) democratic states.6 the precariousness of the situation and the persistence
of tension, often ending in terrorist violence
Other less quantitative, contributory factors were
later accounted for to fill in some of the existing gaps Chinese Homogeneity
in the literature. One scholar maintains that a more accu-
G8 rate indicator needs to be developed, so instead of look- From 2000-03, 203 international terrorist attacks
Summit 2009 ing solely at regime type in the aggregate, main causal were recorded in India and zero in China. From 1976
56
Nuclear Non Proliferation & Terrorism

to 2004, 400 incidents occurred in India and only 18 in 1 This essay is based on a previous paper I wrote (to be published)
China. As Gregory Gause points out, even if China is entitled, “Terrorism via Democracy? Assessing Democracy Promo-
underreporting and the number increases ten times, it tion as a Security Rationale,” Hinckley Journal of Politics, Vol. 10
(forthcoming).
still falls significantly short of the number of transnational
terrorist incidents occurring in India.13 2 James Piazza, “Rooted in Poverty? Terrorism, Poor Economic
Development, and Social Cleavages,” Terrorism and Political
China offers a striking contrast to the diverse cul- Violence, Vol. 18, No. 1 (2006), pp. 159-177.
tural, religious, and linguistic climate in India. The mostly 3 William Eubank and Leonard Weinberg, “Does Democracy En-
homogenous Chinese Communist Party (CCP) gov- courage Terrorism?” Terrorism and Political Violence, Vol. 6, No. 4
erns and maintains complete military control over all (Winter 1994), pp. 417-443. See also Eubank and Weinberg, Ter-
the provinces and allows relatively little opposition. The rorism and Democracy: What Recent Events Disclose,” Terrorism
and Political Violence, Vol. 10, No. 1 (1998), pp. 108-18.
National People’s Congress is a unicameral legislative
branch that acts according to demands of the Party and 4 ITERATE: International Terrorism: Attributes of Terrorist Events.
Politburo.14 Over 90 percent of the Chinese population See James Piazza, “Do Democracy and Free Markets Protect Us
is Han and most minority and political opposition groups From Terrorism?” International Politics, Vol. 45, No. 1 (2008), pp.
72-91.
have been alienated, integrated forcefully, and/or brand-
ed as dissidents. 5 JoeEyerman, “Terrorism and Democratic States: Soft Targets
or Accessible Systems,” International Interactions, Vol. 24, No. 2
Religion in China consists mainly of observing lo- (1998), pp. 151-70.
cal customs and traditional beliefs, though practice is 6 Weinberg and Eubank, “Terrorism and Democracy: Perpetra-
limited by the pervasive atheist political convention of tors and Victims,” Terrorism and Political Violence, Vol. 13, No. 1
the ruling Socialist leadership. Derived from mixtures of (2001) pp. 155-64.
Buddhism, Confucianism, and Taoism, this “religious 7 Piazza, “Rooted in Poverty?”
pluralism” evokes a more amiable atmosphere than
the Middle East and South Asia primarily because it is 8 Ibid.

practiced by similar people with the same ideals of “har-


9 SouthAsia Terrorism Portal, “India Assessment – 2007,” Ac-
mony” and “unity”.15
cessed 6/2/2008, http://satp.org/satporgtp/countries/india/index.
html.
Lastly, political extremism that followed the consid-
erable social and economic disruption after the Cold 10 National Counterterrorism Center, “2006 Report on Terrorism,”
War—notably in the Soviet Union—was likely curbed by http://wits.nctc.gov/reports/crot2006nctcannexfinal.pdf; Also,
“2007 Report on Terrorism,” http://www.terrorisminfo.mipt.org/
CCP limits on political transparency and democratizing pdf/NCTC-2007-Report-on-Terrorism.pdf
forces.16 China did experience significant growth as a
result of semi-free market policies and partial decentral- 11 Piazza, “Rooted in Poverty?”
ization, but its leaders have maintained significant con- 12 Ibid.
trol over political processes and groups.
13 Gregory Gause, “Assessing Middle East Security Prospects,” In-

Democracy Promotion Not Enough stitute for National Strategic Studies Symposium, Ft. McNair, April
20-21, 2005, http://www.ndu.edu/inss/symposia/topical2005/
gausepaper.pdf.
Democracy promotion is a worthy strategy and
should remain one of the pillars of U.S. foreign policy, but 14 BBC News, “Inside China’s Ruling Party,” http://news.bbc.
should not be seen as the crucial solution to the prob- co.uk/2/shared/spl/hi/asia_pac/02/china_party_congress/china_
lem of transnational terrorism. Instead, the focus should ruling_party/html/default.stm.
be on policies that promote rule of law, education and 15 ZhibinXie. Religious Diversity and Public Religion in China
assimilation, and that heal deep social and religious (Great Britain: Ashgate, 2006).
divides, rather than the unrelated focus of advancing
16 Kishore Mahbubani, “Understanding China” Foreign Affairs, Vol.
free and fair elections, socioeconomic development, and
84, No. 5 (Sep/Oct 2005), pp. 49-60.
reductions in economic disparity. The Indian and Chinese
cases viewed through the social cleavage model dem-
onstrate that a more nuanced and rigorous approach is
essential for the U.S. to develop an effective interna-
tional counterterrorism policy. Andrew Jensen graduated from the University of
Utah with an Honor B.S. in Political Science in 2009.,
and served a Hinckley internship in Washington, DC G8
with the House Committee on Foreign Affairs. Summit 2009

57
China’s Investment in Africa:
Development or Neo-Colonialism?
By John Bavoso, Africa Correspondent – Diplomatic Courier Magazine

Driving down any given road in the United States, its needs. Sub-Saharan Africa, with its vast stores of
one has very little occasion to contemplate who natural resources like oil, platinum, and copper, lack of
constructed said thruway or where the funds for its infrastructures in many areas, staggering levels of
completion originated. Travel down a newly paved road debt and increasing disdain for Western interference in
in a country like Liberia in West Africa or a reconstructed economic matters, has presented China with an oppor-
railway in Angola, in the continent’s southern region, tunity to meet its economic goals while also expanding
and consideration of the origins of such infrastructure its global influence.
projects results in delving into complex relationships
involving the international community and issues such Upwards of 85 percent of China’s oil imports now
as paternalism, accountability, resource dependence, come from five different African countries: Angola,
human rights, and neo-colonialism. Equatorial Guinea, Nigeria, the Republic of Congo, and
Sudan. The Asian giant also receives large amounts of
Such far-reaching associations are due to the other resources such as diamonds, timber, and copper
fact that the struggle between the West and China from the region. This has shot China into the position
has found a new ground-zero in the last decade: sub- of being Africa’s second biggest trading partner—be-
Saharan Africa. hind the United States, but ahead of the countries of
Western Europe. On the African side, individual coun-
Foreign aid makes up much of the national budget tries have been given impressive amounts of funds for
of many sub-Saharan African countries, and for decades projects such as road and railway reconstruction meant
most of this aid has been coming from Western coun- to boost infrastructure. China has agreed to forgive
tries and international organizations such as the Inter- large amounts of African debt, refuses to put condi-
national Monetary Fund (IMF) and the World Bank (WB). tions on money going to countries on the continent,
One of the downsides of this aid, from the perspec- and practices a policy of non-interference in terms
tive of many African leaders, is that these funds come of domestic issues such as governance and human
with strings attached: conditions, such as the creation rights protection. When asked, many Africans indi-
of anti-corruption and poverty-reduction plans and cate that they appreciate the fact that, unlike dealing
the privatization of public services, are attached to loans, with the IMF, the World Bank, or many Western do-
debt relief, and bilateral aid provided for sub-Saharan nor countries, dealing with China is a positive experi-
African countries. ence because the Chinese “treat Africans like adults,”
rather than children in need of disciplining and oversight.
Economically emerging countries within the interna-
tional system have taken note of how resentful of many The West has been quick to point out that China’s
of these conditions many sub-Saharan African states interest in the region, despite its rhetoric, is less than
have become, considering them the height of West- altruistic and that, despite its claims, the influx of cash
ern paternalism. This has led to the rise in popularity flooding the region is doing more harm than good.
in recent years of a phenomenon sometimes referred to Many parties in the international community see the
as “south-south cooperation,” a concept which posits country’s role in the region as more exploitative and par-
that developing countries, which comprise the “Global asitic than beneficial. For instance, while funds from Chi-
South,” are turning to other developing countries for na go towards many infrastructure improvements, the
assistance and trade rather than more developed actual projects are, more often than not, completed by
countries. The most striking example of this has been Chinese nationals who are brought in for the purpose,
China’s prodigious interest in sub-Saharan Africa and taking viable and much-needed jobs away from local Af-
the natural resources and opportunities for energy rican workers. Also, China’s policy of non-intervention
creation it offers. means that it pumps money into non-democratic re-
gimes and, in the case of the Sudan and Zimbabwe,
China’s growing population is known for being one for instance, keep human rights abusing governments
of the most energy-hungry in the world, leading the afloat despite condemnation and criticism from much of
Chinese government to constantly search for reliable the rest of the world.
sources of natural resources to power its continued de-
velopment. Tense relations with the West over issues such While it’s interesting to see so much renewed inter-
G8 as human rights and political ideology have resulted in est in an otherwise neglected region of the world, as with
Summit 2009 the country looking to other areas of the world to meet many other issues in the international community, the
58
voices of Africans tend to get lost in the shuffle. While The U.S., and the rest of the West, should also in-
both sides of the issue argue that they have sub-Saha- crease their diplomatic presence in sub-Saharan Africa
ran Africa’s best interests in mind, this current round of if they hope to balance China’s influence. The interna-
debate is reminiscent of the Cold War era, where Africa tional community doesn’t have a great track record in
was a battlefield upon which the conflicting interests terms of helping Africa when the region needs it the
of the world’s superpowers could unfold, much to the most when its own interests aren’t threatened, and a
detriment of Africans. greater interest in the area may go a long way towards
increasing credibility.
Within sub-Saharan Africa, a debate rages as well.
Many Africans appreciate the idea that they are “treated There are also other avenues which Africans can ex-
like adults” by the Chinese and they feel that this new plore. The “south-south cooperation” model doesn’t just
source of funds may be the impetus needed to help pull apply to countries outside of the region. South Africa, for
the continent out of decades of poverty. Others, howev- instance, is the only sub-Saharan African country to be
er, have expressed concerns about what China gets in included in the ranks of G8+5 and G20 countries, and
exchange for its raw materials: a market for its low-cost this offers an alternative opportunity for funding, which
consumer goods. The influx of foreign goods, taken to- is closer to home and represents a country with more of
gether with the Chinese insistence on using their own a stake in the prosperity and stability of the region.
laborers rather than the local workforce, leaves many
Africans worried about the future of domestic industries However the international community chooses to
and jobs. There is also a fear that, as the world’s natural proceed in the future, it is important to pause and con-
resources begin to become scarcer, a new “scramble” sider the fact that the lives of everyday Africans are
for Africa, this time between the West and China, will very much at stake when such economic decisions
once again overtake the continent. are made. There is a very real risk that sub-Saharan
Africa may once again become the victim of economic
With all of these competing interests, ideas and nar- colonization, but there also exists an equal potential
ratives, is there any way to develop a strategy which that renewed interest in the region may lead to lasting
benefits all parties and minimizes damage to the Afri- development. Greater inclusion of African voices this
cans who are often caught in the middle? time around may just help to avoid some of history’s
worst pitfalls.
From the Western perspective, in order for the U.S.
and its allies to have any credibility in decrying China’s John Bavoso is a graduate student at the School
non-interference and tacit support of human rights of International Service at American University focusing
abusers, they will have to reevaluate support of coun- on issues related to human rights, gender and sexu-
tries like Saudi Arabia, which provide steady oil supplies al equality, and sub-Saharan Africa at the Diplomatic G8
but have seriously questionable human rights policies. Courier magazine. Summit 2009

59
A Prescription for Development:
Curing What Ails Foreign Aid to Africa
By Erika George, Professor, of Law, University of Utah S.J. Quinney College Of Law

Far too often images emerging from Africa depict There are multiple motivations for offering aid. For
poverty, disaster, conflict, and suffering. With increasing example, a 2006 U.S. AID published primer illustrates a
regularity industrialized nations express their intentions perceived role for aid to play in promoting national security
to provide additional development aid to assist Africa and waging the “War on Terror.” Along with defense and
with ameliorating the poverty responsible for much of diplomacy, development is advanced as supporting U.S.
the suffering experienced by so many on the Con- geostrategic interests central to combating terrorism and
tinent. Despite the best intentions on the part of do- strengthening American security at home and abroad.
nor countries, efforts to uplift debtor nations frequently Aid is then an investment against instability, a “leverag-
fail to meet or fall far short of articulated expectations. ing instrument,” a device for perception management to
At the 2005 Summit, G8 members answered former British counter anti-American propaganda.
Prime Minister Tony Blair’s call for increasing aid to Africa
and pledged to commit additional resources to develop-
ment aid. Today however these pledged goals have not
been reached. In the current climate of global economic
downturn Africa’s actual receipt of these pledged re-
sources appears to be increasingly remote. In the mean-
time, images of African misery and suffering continue to
capture the public imagination.

The Diagnosis: What Ails Aid?

Sharp differences persist in the public debate over


the ability of foreign development aid to change and
improve the images coming out of Africa. Does foreign
aid promote or prevent development in Africa? Develop-
ment assistance has committed devotees who maintain
that aid, when responsibly distributed, has been suc-
cessful in saving and improving lives by increasing food
production, promoting disease control, and providing
safe drinking water among other things. Increasingly,
however, development assistance has detractors who
charge that aid has failed to accomplish its aims. Some
argue that aid actually perpetuates poverty.

Economist Jeffery Sachs advocates more rapid and


increased levels of aid for Africa in his book The End
of Poverty. According to African author and economist
Dambisa Moyo’s Dead Aid, aid to Africa needs to end
entirely and immediately. Those critical of aid can point
to instances of failure. They argue that aid distorts incen-
tives and promotes dependency. Those who champion
aid can point to some successes. They assert that lives
can be saved for as little as a dollar a day. Even if such Besides perceived self-interest, pity appears to play
assistance does not directly result in economic growth, a motivating role for some aid donors. A significant and
some forms of aid still remain effective. perhaps underexplored problem with aid concerns how
many see Africa—more as a charity case than a coop-
Although the debate is currently characterized by erative venture partner. Were the motivating intention
a sharp division over whether assistance is effective or animating interaction with Africa to invest in a future
whether it kills the kind of entrepreneurship imperative partner instead of self promotion or pity the incentive
for elevating people out of poverty, there appears to be structures in the aid enterprise could arguably look quite
G8 some emerging consensus that intervention is urgently different perhaps with benefits accruing to those within
Summit 2009 needed. But what ails aid? and outside of Africa.
60
G8
Summit 2009

61
Development in Africa

In addition to perception problems with respect to mutual monitoring mechanism may serve to yield better
Africa in particular and the aid enterprise more gener- mutual outcomes and could potentially set the stage for
ally, there are more practical difficulties with aid delivery. better understanding and adjusting incentives towards a
One problem has been the demand by some donors form of aid that is invested in and accountable to those
that in return for assistance aid recipients must use and most in need.
source goods from the donor nation. Restricting the re-
cipient from sourcing locally or finding better bargains Accountability could be advanced by a mutual
can leave a recipient country in a circumstance of al- monitoring mechanism with sufficient independence
ways paying back and not investing forward. Complex and transparency to permit a place for the voice of the
reporting requirements for recipient countries present neediest recipient to be heard and an opportunity for the
another problem by generating additional administra- donor to listen and learn. A mutual monitoring mech-
tive costs which in some instances diminish the benefits anism must also promote the development of a more
of aid significantly. Most significant, however, is the constructive reciprocal relationship between nations
unfortunate fact that recipients—the poor people in engaged in the aid exchange. Such a relationship may
debtor countries—have virtually no voice in the aid cure the imbalances afflicting the current aid system by
determination and delivery process. better ensuring that what is offered is aligned with the
interests of those in need.
A Prescription:
An Antidote in Mutual Accountability Erika George is a Professor of Law at the Univer-
sity of Utah’s S.J. Quinney College of Law where she
There are competing and contradictory claims over teaches international human rights and humanitarian
aid’s efficacy. Evidence seems inconclusive, so argu- law, international environmental law, constitutional law,
ments over how best to better the lot of the Continent’s and civil procedure. Professor George graduated from
poorest are unlikely to end soon. Certainly, the world’s Harvard Law School. She completed a M.A. in Interna-
“bottom billion” cannot wait for a consensus to build. tional Relations and earned her B.A. in Politics Econom-
Interventions to improve aid must include a mechanism for ics Rhetoric and Law with honors both from University
accountability to the intended beneficiaries of aid. of Chicago. She continues to conduct human rights ad-
vocacy and outreach projects, she is also a frequent
Much of the attention in the public debate over the lecturer and writer on issues of women’s human rights
efficacy of development aid to Africa has centered on and international human rights. Her human rights work
conditions in the recipient country. Donors and aid agen- has been covered by BBC, The Economist, NBC News,
cies have identified corruption and poor governance as CCN, and the Christian Science Monitor.
barriers to development and appropriately are demand-
ing more responsible management of aid resources Acknowledgements: Ben Lear and John Mbaku
received. While these concerns are appropriate, less
attention has been paid to responsible resource man-
agement on the part of aid agencies in donor countries.

Economist William Easterly has observed that aid


agencies are typically not accountable to their intended
beneficiaries. As a result, there are no incentives to de-
liver to intended beneficiaries. Moyo suggests that many
African governments have no incentives to help their
people and aid further exacerbates the lack of account-
ability and impunity already enjoyed by those in power.
The question then becomes—how better to set incen-
tives such that someone will accountable to the bot-
tom billion? Collectively, G8 member states should work
to design such an incentive structure. Donors and de-
velopment aid recipients together should consider the
design of mechanisms to mutually monitor aid resources.

Easterly has proposed that donors create “interna-


tional independent evaluation groups” separate from
G8 government but including nationals from the stakehold-
Summit 2009 er nations involved in aid. Some form of independent
62
G8
Summit 2009

63
Mugabe’s Zimbabwe: A State’s Decline from
Fragile Democracy to Electoral Authoritarianism
By Dustin Gardiner, Hinckley Scholar, University of Utah Hinckley Institute of Politics

If the outcome of Zimbabwe’s last presidential has accumulated in nearly thirty years as the country’s
election is an indication, President Robert Mugabe’s leader. In the absence of an embarrassing and grow-
strong foundation for authoritarian rule is beginning ing humanitarian crisis that drew the attention of many
to crumble. foreign leaders, Mugabe might have been able to avoid
forming a unity government entirely.
Although Mugabe has maintained his decades-long
grip on the presidency even after he lost the March In short, Mugabe maintains much of the foundation
2008 election by most accounts, he has since ceded to for authoritarian rule that has enabled his power-grab and
international pressure and formed a unity government Zimbabwe’s decline from a fragile democracy to electoral
with opposition leader Morgan Tsvangiari, who is acting authoritarianism, though his basis of power is weakening.
as prime minister.1 The term electoral authoritarianism is used to describe
regimes that present an “illusion of multi-party democ-
racy at the local and national levels while effectively
stripping elections of efficacy.”5 While elections are held
often, the state is not considered democratic because
the ruling leader or party uses government institutions
and informal powers to manipulate vote counts or
strip the opposition of its ability to effectively compete
against the incumbent regime. Unlike a fragile democ-
racy where elections are mostly free, fair and provide a
chance for real competition despite the existence of weak
institutions, elections in electoral authoritarian states
don’t allow any chance for real electoral competition.6

Mugabe’s stranglehold on power is perhaps most


apparent in his ability to maintain the presidency even
The move comes after a humanitarian and econom- after numerous international observers have discredited
ic crisis paralyzed the country last fall when Mugabe re- the results of the March 2008 presidential election as
fused to sign off on a final power-sharing agreement with fraudulent.7 The nation nearly descended into anarchy
Tsvangiari. As Mugabe’s government fell into disarray, when Mugabe refused to release the results of the hotly
basic services, such as access to clean water, deterio- contested election and ordered the violent suppression
rated, resulting in a cholera outbreak and widespread of protesters supporting Tsvangirai’s Movement for
food shortages.2 The humanitarian crisis coupled with Democratic Change.7
ongoing political disputes and violence led to a crash in
the value of the Zimbabwean currency, causing a mass After delaying for over a month and committing
exodus of capital and people from the country. The pan- numerous human rights violations, Mugabe released
ic sent the economy further into a downward spiral. fraudulent numbers showing Tsvangirai had beaten him
by a six percent margin, but failed to win a majority and
Seeing the growing crisis and Mugabe’s unwillingness to avoid a run-off election. Mugabe stalled again by
to engage in power sharing talks, international leaders, extending the date of the run off election until late
including several of Mugabe’s former allies, intensified June. Tsvangiari agreed to the runoff but withdrew and
their criticism and sanctions against Mugabe’s admin- fled the country after it became clear Mugabe’s govern-
istration. Kenyan Prime Minister Raila Odinga led the ment would continue to use violent means to secure
charge, calling for international military intervention to re- a victory. Following the results of the election, there
move Mugabe and end the Cholera outbreak.3 Mugabe were nearly 90 reported killings that resulted from
eventually succumbed to the pressure and growing need political violence, and members of Mugabe’s ZANU-PF
for international aid. Party were primarily responsible for the deaths.9 Many
more were injured and imprisoned. The intimidation
However, despite the formation of a unity govern- techniques even focused on MDC presidential candi-
ment, which gave Tsvangiari authority over day-to-day date Tsvangirai, who was arbitrarily arrested, beaten
G8 governing and calls for the creation of a new constitu- and later released without being charged on five
Summit 2009 tion4, Mugabe still retains much of the power that he separate instances.9
64
Regional Crises

1“Mugabe swears in rival Tsvangirai as Zimbabwe PM”. (2009,


February 11). The Guardian. Retrieved April 8, 2009, from http://
www.guardian.co.uk/world/2009/feb/11/tsvangirai-zimbabwe-
prime-minister-mugabe.

2 “Cholera epidemic is still ‘out of control’”. (2008, December 28).


The Associated Press. Retrieved April 8, 2009, from
http://www.guardian.co.uk/world/2008/dec/28/zimbabwe-chol-
era-epidemic-child-malnutrition.

3 Mudzwiti, M. (2008, December 8). “Mugabe buys more time”.


The Times of South Africa. Retrieved December 8, 2008, from
Underlying Mugabe’s basis for electoral authori- http://www.google.com/search?q=zimbabwe+us&ie=UTF-
8&oe=UTF-8.
tarian rule is his position in Zimbabwe’s deep-seated
military culture and a network of patronal relationships 4McGreal, C. (2009, February 10). “Tsvangirai to be sworn in
with elites. Violence and military intervention in political as Zimbabwe prime minister”. The Guardian. Retrieved April 10,
campaigns has been an ongoing problem in Zimbabwe, 2009, from http://www.guardian.co.uk/world/2009/feb/10/zimba-
bwe-coalition-tsvangirai.
particularly with the ZANU-PF. Mugabe, who is well-know
as a leader of the liberation forces that fought the British 5Tlemcani, R. (2007, May 24-30). “Electoral Authoritarianism”. Al
and white colonists for independence, first used the mil- Ahram Weekly Retrieved December 6, 2008, from Carnegie En-
itary to wage war against the forces of a major political dowment for International Peace Web site:http://www.carnegieen-
dowment.org/publications/index.cfm?fa=view&id=19176&prog=z
opponent shortly after Zimbabwe gained independence gp&proj=zdrl,zme.
in 1980.10 The 2008 election is just the latest example
of his using the military to intimidate and suppress 6 Waterbury, J. (1999). “Chapter 12: Fortuitous Byproducts”. In
opposition protesters to secure a victory. Anderson, L. (Ed.), Transitions to Democracy. New York: Columbia
University Press. Retrieved December 7, 2008, from http://www.
ciaonet.org.tproxy01.lib.utah.edu/book/anderson/anderson12.
Mugabe’s ability to remain in office despite wide- html.
spread support for the opposition and international con-
7“MDC seeks new Zimbabwe election”. (2008, October 21.) BBC
demnation of his tactics is also reflective of his ability
News. Retrieved November 17, 2008, from http://news.bbc.
to build a network of patronal relationship with political co.uk/2/hi/africa/7681468.stm.
elites, including military leaders, bureaucrats, and key
members of the ZANU-PF. The relationships generally 8 Whitaker, R. (2008). “Zimbabwe election violence spreads to
involve the trading of presidential favors in exchange for Harare.” The New Zealand Herald. Retrieved November 14,
2008, from http://www.nzherald.co.nz/world/news/article.cfm?c_
political support from elites. Because the elite tend to id=2&objectid=10517688.
support political leaders who serve their self-interest, a
willing president like Mugabe can yield a heavy amount 9 “Tsvangirai arrested in Zimbabwe”. (2008, June 4). United
of informal influence.11 Press International. Retrieved November 19, 2008, from
http://www.nzherald.co.nz/world/news/article.cfm?c_
id=2&objectid=10517688.
Mugabe seems to have gained a considerable amount
of leverage over elites through his re-appropriation of mil- 10 Lyman, P. N. (2007). “Zimbabwe: The Limits of Influence”. In

lions of acres of farmland seized from white plantation Lyman, P. N. & Dorff, P. (Eds.), Beyond Humanitarianism (89-100).
New York: Council on Foreign Relations.
owners without compensation. He seized most white land
holdings saying they would be given to rural blacks in ret- 11 Transparency International. (2008). “Corruption Perceptions
ribution for the fertile lands that were taken from natives Index.” Retrieved November 17, 2008, from http://www.transpar-
by colonial settlers. However, much of the land was given ency.org/news_room/in_focus/2008/cpi2008/cpi_2008_table.
out to top government and military officials to secure their 12 Human Rights Watch. (2008). “Our Hands Are Tied”: Erosion
loyalty.12 The unwillingness of elites to defect from Mugabe of the Rule of Law in Zimbabwe. Johannesburg: Human Rights
after the 2008 election is a testament to the strength of his Watch Africa Division. Retrieved December 7, 2008, from Ciao Net
patronal network. online database: http://www.ciaonet.org.tproxy01.lib.utah.edu/
book/anderson/anderson12.html.

While much of Mugabe’s foundation for authoritar-


ian rule remains intact, the formation of a unity govern-
ment has provided an opportunity for Tsvangirai and
the opposition to erode his power base. With the next
presidential election several years away and a new con- Dustin Gardiner graduated from the University of
stitution on the table, the opposition must work to re- Utah with B.S. degrees in Political Science and Mass
store the rule of law and prevent another sham election Communications and was the editor of the university G8
that simply reinstates Mugabe’s power. campus paper, the Daily Utah Chronicle. Summit 2009

65
European Union Enlargement
and the Islamic Challenge
By Dr. Joseph S. Joseph, Jean Monnet Chair in European Foreign Policy and Security Policy, University of Cyprus

The geographic expansion of the European Union


poses challenges and presents opportunities to the EU
itself, but also to the member states and the candidate
countries. It also affects the deepening of the Union
and its efforts for institutional reform, which is not an
easy task, as the failure of the constitutional treaty and
the difficulties faced by the Lisbon treaty have shown.
As of January 2009, there are three candidate coun-
tries: Turkey and Croatia, which started accession ne-
gotiations in 2005, and the Former Yugoslav Republic of
Macedonia (FYROM) which has been granted the status
of a candidate country, but has not yet started acces-
sion negotiations. There are also five potential candidate
countries: Albania, Bosnia and Herzegovina, Montene-
gro, Serbia, and Kosovo under Security Council Reso-
lution 1244. These countries have been promised the
prospect of EU membership as and when they are ready.

While accession talks and preparations are under way,


the debate over Turkey’s European prospects and iden-
tity is heating up and a variety of perspectives, positions,
opinions and arguments are put forward. The former pres-
ident of the European Commission, Romano Prodi, while
arguing for the commencement of accession negotia-
tions back in 2005 asked Turkey to show “determination
in pursuing further reforms and wisely conduct an acces-
sion process which, like all the others, will display both
periods of progress and moments of tension and
unavoidabledifficulties.” He also appealed to the mem-
ber states and the European public to demonstrate
equal perseverance, as “Europe has nothing to fear from
Turkey’s accession.”

After three years of accession negotiations, dif- memories of the Ottoman siege of Vienna by stat-
ficulties and Turco-skepticism are growing over Tur- ing that “the liberation of 1683 would have been
key’s membership prospects. Europe’s confusion and in vain” if Turkey joins the EU.
ambivalence about Turkey is not a new phenomenon,
although recently it has been becoming more visible. On the other hand, there are strong voices arguing
For example, in March 2007, Turkey’s government that Turkey can play the role of “a cultural and physical
was not invited to the Berlin Summit which marked bridge between the East and West [and] become one
the 50th anniversary of the Treaties of Rome, causing of Europe’s most prized additions.” Across the Atlantic,
disappointment in Ankara. the United States has a clear pro-Turkish position that
cannot be ignored. In June 2004, during the NATO sum-
A few years ago, the fear of many Europe- mit in Istanbul, the American President George W. Bush
ans about Turkish accession were expressed and underlined the position and called on Europe to prove
stirred up by the former French President and that it “is not the exclusive club of a single religion” and
head of the European constitutional convention, that “as a European power, Turkey belongs in the EU.”
Valery Giscard d’Estaing, who in a blunt manner
declared that Turkey was “not a European coun- The increasingly polarized discussion over Turkey’s
try” and that its inclusion in the EU “would be the position and role in Europe will continue for years to come
G8 end of Europe.” In a similar vein, echoing Turco- at various levels. The debate may even outlast the pro-
Summit 2009 skepticism, a European Commissioner brought back tracted period of accession negotiations during which
66
Regional Crises

not only negotiations on the acquis chapters will be In the long run and in a broader sense, the challenge
conducted, but also a lot of diplomatic maneuvering and for the EU will be to develop a forward-looking world-
political twisting will take place. Throughout this period, view based on a multicultural civilization that has ample
the Christian and Islamic worlds will have to show room for different religions including Islam. In a shrink-
that they can accommodate each other and prove false ing world of increasing interdependence and a new
Samuel Huntington’s argument about “the clash of civi- European order of deepening and widening integration,
lizations” and the reconfiguration of the political world this may no longer be a political option, but an urgent
“along cultural lines”. Both Europe and Turkey will find imperative. After all European integration is a process
out what they expect from each other and whether they of building unity through diversity. In a few years, not
can share a common future that will reconcile their dif- only Turkey, but also the Balkan enlargement, which
ferent pasts. The real question will be whether the inter- will include more countries with Moslem populations,
nal sociopolitical dynamics and external orientations of will pose the same challenge. In light of these develop-
Turkey can be compatible with the changing dynamics ments, Turkey is not a test case, but a turning point.
of European integration, which aims at deepening the
solidarity among peoples “while respecting their history, Dr. Joseph S. Joseph is Professor of Internation-
their culture and their traditions”, and creating “firm bas- al Relations and European Affairs and Director of the
es for the construction of the future Europe”. Jean Monnet Centre of Excellence at the University of
Cyprus. He is also a member of the Editorial Advisory G8
Board of the Diplomatic Courier magazine. Summit 2009

67
The message of European businesses to the G8
Short term priorities are crucial… but Europe remains decades behind the US...
Europe should look at longer-term too!
As the graphic left shows, the EU27 is lagging be-
The meeting of the G8 certainly represents an op- hind the United States for all key economic indicators
portunity for world leaders to work on a coherent in- (GDP per capita, productivity, investment in R&D) by an
ternational response to the crisis and to get the global average of 24 years. This means that the EU’s current
economy back on a pathway to growth. No doubt this performance on these indicators was already reached
is the main priority for the short term. by the US in the 1980s!

The European business community, however, urges Investment in R&D is the worst indicator, with the
decision-makers not to forget about the longer term current level of European investment in research and
perspective. They are concerned that, even when the development having been attained by the United States
economic downturn is over, Europe will still be lagging 30 years ago.
behind its international partners.
…and BRICs are catching up fast
EUROCHAMBRES’ most recent “Time-Distance
Study” supports this vision. This unique report com- The chart also shows that the EU remains well
pares the European economy with the USA and the ahead of all BRIC countries for every economic indica-
BRIC countries (Brazil, Russia, India and China) using tor, although to varying degrees.
several different key economic indicators…in terms of
years. Based on ‘what-if’ scenarios, the study shows Russia stands on average 35 years behind the EU,
how many years the EU would need to catch up with its Brazil nearly 40, China just over 40 years and India 68
competitors, as well as the conditions for growth that years. Yet high growth rates – which remain well above
developing countries would need to bridge the time dis- the EU’s growth even in times of crisis – are allowing
tance gap. these countries to close the gap.

Russia is the closest to catching up with the EU27


GDP per capita value, followed by Brazil and China. If
the current differential between EU and Chinese growth
remains around 10%, China could reach the current lev-
el of EU GDP in 2020, as illustrated in the graph below.

Commenting on these findings, Arnaldo Abruzzini,


Secretary General of EUROCHAMBRES, said: “These
figures tell us that if the EU is to maintain and enhance
its global competitiveness, it must put in place not only a
short term strategy to exit the recession, but also long-
G8 term structural reforms. Time is not on our side…we
Summit 2009 cannot afford to delay any longer the much needed in-
68
Sponsored Article

vestment in R&D and skills. Policy makers must provide 2) People


businesses with the right framework conditions to drive
Europe’s recovery and future growth.” Europe needs a highly skilled workforce to compete
on the global market. One of the key priorities in the
A healthy and growing global market – including A current crisis is thus to safeguard employment and to
stronger Europe, as well as a healthy and growing glob- prepare the workforce for the upswing after the crisis.
al market, is beneficial to businesses the world over; it Education systems should be adapted to the needs of
is to no-one’s advantage to pursue a larger slice of the European enterprises, eliminating skills mismatches and
cake if the cake itself is getting smaller. To this end, EU- creating a closer cooperation between academia and
ROCHAMBRES has consistently advocated more open businesses.
international markets and continues to push policy mak-
ers to take measures to reduce trade barriers, minimise 3) Infrastructure and energy
the risk of unfair practices and, especially in the current
climate, to resist protectionism. The European Chamber The emergency measures proposed in response
network looks to the G8 leaders to further these aims. to the crisis, namely improving the energy efficiency
of buildings and modernising different infrastructures
related to energy, ICT and transport, constitute an im-
portant step in the right direction. It is important that
the measures are translated into action rapidly, laying
the foundations for a more energy efficient Europe. At
the same time, research efforts for the development and
widespread use of renewable energies should be con-
siderably increased.

4) R&D and Innovation

Investment in research and development and the


conversion of this into innovative initiatives are key el-
ements in Europe’s competitiveness. During past cri-
ses, these elements have often been the first victims of
budget cuts. It is imperative that this trend is avoided
during the current crisis. Both public and private sector
A rnaldo A bruzzini , EUROCHAMBRES’ S ecretary G eneral
investment in research needs to increase significantly.

How Europe can close the gap


EUROCHAMBRES is the Association of European Chambers of
1) The business environment Commerce and Industry. It represents over 19 million enterprises in
Europe – 96% of which are SMEs – through members in 45 coun-
tries and a European network of 2000 regional and local Cham-
The current crisis necessitates measures to enhance
bers. The 2009 edition of EUROCHAMBRES’ Time-Distance Study
access to finance for businesses, to reduce administra-
can be downloaded from www.eurochambres.eu/content/default.
tive burdens and to promote entrepreneurship. Busi- asp?PageID=1&DocID=1792
nesses need quicker and simpler access to credit on
realistic terms and improvements in payment terms and
times from public and private sector clients. The reduc-
tion of administrative burdens should be accelerated to
further improve the business environment, with the me-
dium term focus on meeting the target of 25% red tape
reduction at EU and national level by 2012. Promoting
entrepreneurship is important in times of economic cri-
sis, as entrepreneurs are the true wealth creators and
are thus essential to re-launching the economy and
generating sustainable growth.

G8
Summit 2009

69
Between the Justice of Islam
and the Injustice of Tradition
By the Honorable Hala Bsaisu Lattouf, Minister of Social Development Kingdom of Jordan

If you search for the words “Women in Islam” on the them as part of a discriminated gender, despite the
internet you are likely to find two things: commentary situational differences between women across Muslim
suggesting Islam is derogatory to women, and attempts countries. Some may think it odd for a woman born and
to debunk this myth. Unfortunately, the image of Mus- raised in the heart of the Middle East to not experience
lim women in the world is that of rigid obedience and gender stereotyping. My parents made every effort to
supplication to men. In reality, we reflect the customs, raise me as a strong human being, with a very enlight-
practices and socially ascribed religious beliefs of our ened belief of Islam. I never felt inferior to men. Now,
culture. In preparing this paper a number of topics ran with children of my own, I try to instill the same sense of
through my mind. Poverty or democracy in Islam would equality I experienced growing up. I realize they do not live
have been fitting subjects due to my current service as in a vacuum, and that society and cultural values play an
Minister of Social Development. Yet, as a woman from important role in influencing how they think.
Jordan, I see women in Islam often being misrepresent-
ed and misjudged. Many Muslim women live happy and fulfilling lives
in their home countries. Why then, do I continually see
The other day my daughter told me she heard Mus- reports in the media suggesting acts of abuse and in-
lim women could not be leaders in government. As a tolerance are committed in the name of Islam? The Is-
woman working in government, this statement took lam I practice and read about in the Holy Quran does
me back. I wondered where she heard this idea. Here not condone these actions. However, tradition, much
in Jordan, we have been progressive in enhancing the which comes from pre-Islamic societies, perpetuates
rights of women. His Majesty King Abdullah II is a tire- this image. Some of these customs have led to cruel
less advocate for women and children, and has de- injustices. Sadly, many try to justify harmful traditions
scribed crimes against them as “sabotage” against the through their faith. This gives power and legitimacy to
community. We have also increased women’s partici- their actions.
pation in public life. The present Cabinet, Senate and
the Lower House of Parliament have a much greater Having said this, not all of these traditions are bad.
number of women than in times past. Jordan was even Drinking Arabic coffee during marriage proposals, help-
the first Middle Eastern country to have a female gar- ing strangers who have lost their homes and providing
bage truck and taxi driver. Surprisingly, 24 percent of generous hospitality for guests are some of the many
Jordanian youth who participated in a survey analyzing positive traditions in the Arab culture.
morals and values believed women were more suitable
than men as political leaders. Ten percent of these When I married my husband we signed a marriage
were young men. This is significant because it shows contract in accordance with Islamic teachings. This doc-
a male population who would put their political future in ument promotes equality, prevents abuse and is similar
the hands of women. to a prenuptial agreement. In it, I could specify condi-
tions my husband must legally meet. Such conditions
However, a recent survey of over five thousand Jor- may include the right of divorce, the ability to deny him
danian women contained some more intuitive statistics. additional wives, entitlement to servants, or the location
According to the study, 81.4 percent of these women of our future home. Women can even require payment
felt they were being treated unjustly due to existing for cooking and cleaning if they choose to do so, I per-
traditions and customs. In contrast, only 14.2 percent sonally prefer to do neither. Unfortunately, some women
held Islam responsible for discrimination. I interpret this feel they cannot take advantage of these rights either for
to mean the cultural norms need adjustment, not the fear of being denied marriage or because their cultural
Islamic faith. upbringing, under the guise of religion, has led them to
believe women are not equal to men.
Although a practicing Muslim, I have never con-
sidered myself solely a “Muslim” woman per se, Furthermore, Islam grants women exclusive finan-
rather a Jordanian-Arab Muslim. However, since cial independence. Not only do I have the opportunity to
9/11 I have come to identify myself with these wom- list the “cans” and “cannots” in my marriage, but any
en more than simply by nationality. I find myself of- money I bring into the relationship remains mine. Any
ten, if not always, “randomly selected” and searched wages I earn after I am married are also mine to spend as I
G8 by airport security just as frequently as other Mus- wish. While Islam requires a man to pay and support
Summit 2009 lim women. I am portrayed in the media alongside the needs of his family, the woman is exempt from this
70
Regional Crises

and society. In all offenses Islamic law punishes men


and women equally, and our secular laws attempt to do
the same.

The Shehada, or testimony, is also widely ques-


tioned. It is often thought that this means two women
are needed to testify before a court of law in the place of
one man. This is actually only limited to situations when
women were not directly involved. They are, however,
still allowed to testify, whereas men were prohibited
from testifying in cases pertaining specifically to women,
such as a woman’s virtue.

I often hear other human rights activists discussing


how they can rescue Muslim women from the presumed
responsibility. Yet tradition in some families requires horrors men afflict on their lives. This confuses me
girls to pass their inheritance on to their brothers, because I am certainly not the only woman who loves and
something we are working hard to change. treasures her father, brother, and son. I most certainly will
nor be the last. I come from a culture with many positive
Islam provides women with an extensive array of traditions. It is a culture where immediate and extend-
political rights. Early Muslim women gave a mone- ed family ties are strong. It is a culture where a mother
tary pledge of allegiance to the Prophet Muhammad can choose to work as a homemaker if she so desires.
(peace be upon him). According to the Hadith, Ca- Homemaking is viewed as a respectable career and
liph Omar consulted both men and women as to who not demeaning servitude. I come from a culture which
should be his successor. The Prophet Muhammad knows its neighbors and cares for their well being just as
(pbuh) was even employed by his future wife, Khadija. if they were their own family.
Additionally, the first convert to Islam, the first tor-
tured and killed for their beliefs in Islam, and the first The Prophet Muhammad (pbuh) instructed us, “God
Muslim judge were all women. enjoins you to treat women well, for they are your moth-
ers, daughters, aunts.” Although these words were spo-
Comparatively speaking, many women in modern ken centuries ago, they hold true for all people today.
Islamic societies have made advances much faster As Muslim women, we are caught between the justice
than in Europe or the United States. Various heads of Islam which provides protection and equal rights, and
of government such as Megawati Sukarnoputri, for- the injustice of certain traditions which subject some to
mer President of Indonesia have served in Muslim abuse. Muslim women are not alone in this struggle.
states. The office of Prime Minister has also been We, as an international community, must do more to
held numerous times by women such as Khaleda Zia guarantee equality among both men and women and
in Bangladesh, Tansu Ciller in Turkey, and the late overcome the negative aspects of our respective cul-
Benazir Bhutto in Pakistan. The United States has yet tures. Otherwise, we stand to lose our humanity.
to elect a female president, while Europe has made
some progress with female leaders such as Marga- Hala Bseisu Lattouf is Jordan’s Minister of Social
ret Thatcher and Angela Merkel. In addition, Turkey Development. Minister Lattouf earned a Masters Degree
and Sri Lanka were among the first to grant women in Financial Management and later served as Executive
the right to vote, while Switzerland waited until 1971. Director of World Links Arab Region making commend-
Undoubtedly, Muslim women have made substantial able achievements in the education of Arab youth. She
advances in Islamic nations. has also held important positions in the Office of Her
Majesty Queen Rania Al-Abdullah. Currently, she resides
Despite this political progress, harmful social tradi- in Amman, Jordan with her husband and two children.
tions exist which do not follow the council of Islam. Honor Acknowledgment to Maranda Skoubye.
killings, for example, are violent acts which find no root
in the Muslim faith. It is an abhorrent tradition handed
down from pre-Islamic times. Jordan has recognized its
existence and has spoken out against it. Under Islamic
law, adultery is nearly impossible to prove. To eliminate
honor killings, we need to change the cultural mindset G8
to understand that these murders are a crime in Islam Summit 2009

71
Pakistan, Afghanistan, India:
Report on the State of Conflict
By Amos N. Guiora, Professor of Law, University of Utah S.J. Quinney College of Law

In the immediate aftermath of Benazir Bhutto’s relationship. Simply put, an international law analysis sug-
assassination1 many commentators asked the appropri- gests the U.S. is violating Pakistani sovereignty. Whether
ate question: who is guarding Pakistan’s nuclear war- that is justified---in the context of anticipatory self-de-
heads. Although it is beyond the scope of this essay to fense—depends on an interpretation of the Bush Doctrine3
examine the development of Pakistani nuclear capability, which establishes that nations harboring terrorists are le-
suffice it to say that the combination of Pakistani nuclear gitimate targets. Pakistan must be viewed as presenting
capability along with troubling instability presents a tripartite threat—regional (India), terrorism (“hot-bed”
enormous potential for regional and international conflict. for radicalization) and nuclear. Whether that justifies
It may be the single greatest potential source of interna- preemptively attacking Pakistan depends on the degree
tional instability. of threat posed by Pakistan and to whom. From a geo-
political perspective, Pakistan may well represent the
President Obama’s decision to continue former most complicated—and dangerous—threat.
President Bush’s policy of conducing aggressive at-
tacks against Bin-Laden in Pakistan is manifestation of On the face of it, President Obama has adopted the
the widely agreed upon consensus of the international Bush doctrine. That said, the Pakistan dilemma requires
intelligence community that al-Qaeda’s leader is hiding decision makers, policy makers and commanders to de-
in Western Pakistan. Similarly, it is the working assump- termine the limits of self-defense with respect to multiple
tion of British radicalization experts that Pakistan is criti- threats posed by one country.
cal to the radicalization of British Muslim youth. Further-
more, according to Indian intelligence, the overwhelming The nuclear threat posed by Iran has been much
majority of terrorist attacks inside India are initiated discussed and analyzed4. Nuclear physicists and intel-
by Pakistan. ligence experts suggest a “window of opportunity” ex-
ists to exert diplomatic and economic pressure on the
Although Pakistan is a sovereign nation and a U.S. Iranian regime to cancel the program. If the Iranians re-
ally, America has conducted targeted killing attacks in- ject sanctions, then the critical question is when would
side that country2. The targets have been terrorists asso- a potentially “impacted” nation-state act in accordance
ciated either with al-Qaeda or the Taliban; nevertheless, with the principles of anticipatory self-defense? Whether
the violation of sovereignty cannot be ignored for it it is the U.S., Israel, a combination of the two, or a third
G8 speaks volumes about the nature of the U.S.-Pakistani nation-state is a matter of enormous speculation.
Summit 2009

72
Regional Crises

strategic importance that “losing Afghanistan” is “be-


yond the conceivable.”

This potential reality, then, raises significant ques-


tions regarding the “limits of power.” How far foreign
governments can (or will) go in protecting their inter-
ests—whether ill or well-defined—is the essence of the
Afghanistan question. Afghanistan does not present the
immediate threat Iraq did. Rather, Afghanistan is more
appropriately categorized as a perceived threat sug-
gesting clear operational limits.

That said, if any of the above mentioned threats be-


come “palpable” then decision makers would determine
whether their respective national interest are at stake.
The answer to that question would determine how the
limits of self-defense are applied.

Professor Amos Guiora teaches Criminal Law, Crim-


inal Procedure, International Law, Global Perspectives
on Counter-terrorism, and Religion and Terrorism. He is
a Research Fellow at the International Institute on Coun-
ter-Terrorism, The Interndisciplinary Center, Herzeliya, Is-
rael; a Corresponding Member, The Netherlands School
of Human Rights Research, University of Utrecht School
of Law and Has been awarded a Senior Specialist
Fulbright Fellowship for The Netherlands in 2008.
Guiora has published extensively both in the U.S. and
Europe on issue related to national security, limits of
interrogation, religion and terrorism and the limits of
power. Prof Guiora is the author of Global Perspectives
on Counterterrorism, Fundamentals of Counterterror-
ism, Constitutional Limits on Coercive Interrogation and
While the Caroline Doctrine5 and Article 51 of the Freedom from Religion. He served for 19 years in the
United Nations Charter6 articulate restrictive applications Israel Defense Forces Judge Advocate General’s Corps
of self-defense I would suggest the Iranian dilemma (Lt. Col. Ret.).
wilbring to the fore application of anticipatory self-de-
fense in its broadest sense. While there is, obviously,
1 http://news.bbc.co.uk/2/hi/south_asia/7161590.stm,
enormous uncertainty regarding “who, what, why, where
and when,” an attack on Iran would not be beyond the 2 See “Guess Who’s Coming to Dinner” Martha Minow and Amos
realm of the possible. Guiora, Boston Globe, January 21, 2006, http://www.boston.com/
news/globe/editorial_opinion/oped/articles/2006/01/21/guess_
In the realm of the “unknown”, obviously, is the pos- whos_coming_to_dinner/
sible Iranian response to such an attack. The essence 3 http://www.whitehouse.gov/nsc/nss.pdf
of geo-politics is weighing legal, political, policy and
military considerations regarding both operational 4 As examples see http://www.cfr.org/publication/8830/, http://

actions and possible responses. www.state.gov/t/us/rm/60254.htm, lhttp://www.time.com/time/


world/article/0,8599,430649,00.html

Afghanistan’s importance is manifested both in the 5 See http://findarticles.com/p/articles/mi_m1282/is_12_54/


continued presence of American forces and the resur- ai_87130362,
gence of the Taliban which has clear regional implica- 6 http://www.un.org/aboutun/charter/,
tions. Admittedly there are many “ifs” in the Afghanistan
discussion; it is perhaps the most “forward-looking”
of the threats addressed in this essay. Because of
its geographic reality—situated between Pakistan and G8
Iran—Western leaders may determine that it is of such Summit 2009

73
From Zero-sum Conflicts to Federalism:
The Road Forward
By Hiram E. Chodosh, Dean and Professor, and Chibli Mallat, Professor, S.J. Quinney College of Law

From Gujarat to Quebec, from Johannesburg to Je- Maintain the Status Quo
rusalem, from Kashmir to Kirkuk, our civilization faces a
crossroads of historic magnitude. As a common, uni- As in physics, in the realm of seemingly irreconcil-
versal, social condition, we live in close proximity with able conflicts, inertia is a powerful law, and we must
peoples of diverse language, culture, religion, power recognize its force to minimize the effect of weak in-
over resources, and identity, often shaped by powerful terventions and merely rhetorical commitments to jus-
historical narrative or recent experience of victimization tice, human rights, and peace. Yet the self-sustaining
by the other. We gain a sense of inspiration, place, logic of conflict for groups who see killing the other as
and purpose from these identities; however, they also their only option, combined with disturbing availabil-

carry a zero-sum logic in which the mightier wins, and ity of devastating military technologies, can only lead
in which empathy for the other is viewed as a betrayal to catastrophe. As the means of destruction become
of oneself and one’s own kind. more powerful, the likelihood of self-destruction in the
futile attempt to maintain the status quo only becomes
What are our options? greater. In this sense, survival of the mightiest is a for-
mula for mutual self-destruction. From the vantage
Conquest through Violence point of Israelis, is it safe to assume that over time the
Qassam rocket will remain the most advanced weapon
Historically, conflicts create justifications for the of destruction to penetrate the Southern border? And
elimination of one people by another. Lemkin coined from the Iranian point of view, is it reassuring to predict
a phrase for this after WWII: genocide. Even though that Israel will sit back and merely passively observe
we have achieved normative agreement that genocide the technological development of what it views as an
is a crime against our common humanity, legal com- existential threat?
mitments are weak against the underlying grammar of
deep-seated conflict that has no political outlet or con- Separation through Partition
structive form of expression through a shared political
system. Without the creation of the latter, we can sadly From the schoolyard to the battle zone, the tempo-
expect the next Rwanda or Darfur to emerge, and we ral truce and division of enemies are attractive alterna-
G8 can hardly continue to sit on the sidelines or even rely tives to the brutality of conflict. The more ambitious
Summit 2009 solely on military interventions to put a stop to it. jurisdictional notion of dividing intermixed peoples into
74
Regional Crises

territorial units, however, is demonstrably flawed and This is not just a fanciful notion in Iraq today. Re-
ultimately offers no solution at all. Dislocation through markably, the Iraqi Constitution considers the country to
partition has a disturbing past of immense violence, be a Federation. Both the Preamble and Article 1 of the
from Native American history to the Jewish ghettos, 2005 Constitution underline this fundamental character-
from the balkanization of the former Yugoslavia to the istic; and the constitutional text refers to federation and
subcontinent’s partition of India and Pakistan. The federalism extensively in three of its six chapters.
separation of Israelis and Palestinians into hermeti-
cally sealed states or the break-up of Iraq into three However, the second chamber of the legislative
separate nations may seem an attractive path to peace branch (a Federation Council) has not yet been de-
because this approach holds the theoretical promise veloped, and the federal system in Iraq will not be
of separating those engaged in heated conflict. How- completed without it. Without a Federation Council,
ever, partition does nothing to resolve the cycles of the country cannot fulfill its own definition as a fed-
violence—at best, it merely suspends them for another eral system as constitutionally mandated under Article
opportunity to advance an unmet historical claim from 48: ‘The federal legislative power shall consist of the
forced dislocation. Partition ignores overlapping and Council of Representatives and the Federation Coun-
intermixed conditions of identity and territory. The di- cil.’ This is at the heart of the discussion in Iraq, within
vision of Iraq into three nations would hardly resolve the current constitutional revision process and in the
the problem of Kirkuk, oil and gas, water, the rights country at large.
of minorities, who would control Baghdad, and so on.
And the two-state solution, while now nearly a conven- By offering a territorial (and arguably sectarian
tional wisdom, does not alone determine civil and hu- and ethnic) balance to central power, federalism pro-
man rights for Arab Israelis in Israel or Jewish settlers vides the most sophisticated constitutional instrument
in the West Bank. Partition is more likely to exacerbate to hold the country together. Federalism is arguably
historical conflicts than resolve them. the best institutional tool to reach solutions to hitherto
intractable problems such as Kirkuk and oil, in addi-
Political Condominia of Shared Powers: tion to likely problems of water distribution and family
Federalism law. A working federalism (advanced in part through
the Federation Council) can resolve present and future
Normative commitments to human and civil rights, constitutional issues of great importance to the coun-
peace and prosperity are necessary, but completely in- try and in an institutional and systematic manner, rath-
sufficient. Jean Monnet, the founder of the European er than as an ad hoc political arrangement that renders
Union, is reported to have said that every new idea most solutions, if reached, constantly elusive.
is a bad idea before it can be implemented through
an elaborating institution. From the differentiation of The future of federalism in Iraq is not only important
the township to the county or state, from the distinc- to the peoples of that country who have struggled over
tion between the province and the nation, the notion so many decades for human rights and peace. It is an
of federalism in the United States and the concept of experiment of consequential interest to all of us, from
subsidiarity in the economic and the political unification North America to Europe, from Asia to the Middle East,
of Europe all reflect attempts to capture these vertical to see if a society riddled by sectarian violence can
political strategies. Through these means, an Italian reject the undesirable alternatives of conquest, geno-
can be a European, a Quebecois can be a Canadian, cide, and partition in favor of a vertical political strategy
and a Kurd can be an Iraqi. and institution that accommodates self-determination
with shared values and purpose.
For those who are skeptical of this approach work-
ing in the context of highest conflicts, let’s take the
inspirational, though fragile, exemplar of Iraq. Professor Hiram Chodosh is Dean of the S.J.Quinney
College of Law, University of Utah, and director of the
Iraq presents the contemporary laboratory for Global Justice Project: Iraq. This is his personal opinion,
the examination of pressing alternatives: conquest which he contributed to The Daily Star.
through violence or occupation, chronic sectarian vi-
olence and civil war among Kurds, Sunni, and Shi‘i, Chibli Mallat is Presidential Professor of Law at
proposed political partition, and yes, implementation the University of Utah, and EU Jean Monnet Profes-
of vertically differentiated institutions under the rubric sor of Law, USJ, Lebanon. He is senior legal advisor
of federalism. of the gjpi. The authors are speaking here in their
personal capacity. G8
Summit 2009

75
An International Agenda at a Time of Crisis
By Michelle Bernard, President and CEO Independent Women’s Forum and MSNBC Political Analyst

There may never have been a more critical G8 meet- it will be with the help of abundant investment and trade
ing. Leaders of the world’s most important industrial through Western multinational corporations.
states are gathering as many nations fall deeper into
recession and some teeter on the brink of default. The Fifth, education should top the agenda for promot-
conflict in Afghanistan is growing more intractable, while ing domestic and international economic development.
North Korea is turning more hostile. Iran and Russia Transformational technologies have created profession-
pose differing challenges, while Africa continues to suf- al and financial opportunities that previous generations
fer from poverty, disease, and misgovernment. There is could only dream of. The world has shrunk as econo-
so much to do. mies have grown more complex. Industrialized societies,
like the U.S., have much work to do to educate their
Unfortunately, it will be hard to agree to a specific young to succeed in this new world. Poorer nations
policy agenda, but a broad consensus may become have even further to go, both in improving the quality of
possible if participants start by focusing on larger prin- and access to schooling. Particularly important is ensur-
ciples. The leaders should be able to agree on the ing that girls, minorities, and the very poor do not lose
direction that needs to be taken, even if they disagree on out to discrimination and prejudice.
some of the specifics.
Sixth, problems will not be solved through the blame
First, there should be no retreating from a market game. The U.S. and Europe sharply disagreed over the
economy. Even Karl Marx recognized that it was the rise invasion of Iraq. Today many waste time trying to as-
of capitalism that took impoverished societies from pen- sign blame for the current economic crash. Although it is
ury to plenty. We need better accountability and trans- important to reflect on past mistakes to make right
parency in markets, but government can never substi- decisions in the future, we should look to the future rath-
tute for the productivity of a free and open marketplace. er than wallow in unhelpful recriminations over the past.

Second, there should be no returning to the closed Seventh, economic, environmental, and health
economies of the past. Protectionism is rearing its dan- problems require both cooperation and a nonpartisan
gerous head in the U.S., Europe, and elsewhere around balancing of competing interests. The need for interna-
the globe. There has been much discussion of look- tional economic coordination must be compared to the
ing to the New Deal for remedies to today’s economic danger of regulation by unaccountable bureaucracies.
crisis. But a more relevant lesson is the role played by Concern over the impact of climate change must be
the Smoot-Hawley Tariff in turning a harsh recession in contrasted with the importance of preserving economic
America into a global depression. Opening markets has prosperity. In spite of what the world media often par-
benefited people the world over, and those gains must rots, the science of climate change is far from settled
be preserved. with many leading authorities now predicting a cool-
ing trend instead of catastrophic warming. It would be
Third, the greatest aid that wealthy nations can a mistake to exacerbate existing economic challenges
provide to the world’s poor is to create economic with rash, economy-crushing actions in the name of
opportunities for Third World states and then to train Third thwarting “global warming.”
World peoples to take advantage of those opportunities.
Foreign “aid” for development has a dismal record, hav- Eighth, a concerted international effort is needed
ing done more to enrich corrupt elites than empower to deal with the world’s hot spots. The U.S. cannot
impoverished masses. Despite our current economic alone bring peace and stability to Afghanistan. The Af-
travails, what those at the bottom most need economi- rican states have been unable to create peace in Con-
cally is the chance to be entrepreneurial and to suc- go and Sudan, and defend democracy in Zimbabwe.
ceed—both of which we in the West take for granted. Iraq’s future depends upon the behavior of its neighbors
as much as upon America’s military performance. Nei-
Fourth, meeting the practical challenges of poverty ther Washington nor Europe has the answer for the
and disease requires the cooperation of businesses, multiple conflicts between Israel, the Palestinians, and
foundations, NGOs, and governments. No one gains Israel’s neighbors.
from demonizing companies, which often provide the
best practical means of achieving the ends we all share. Ninth, leading global players have a special responsi-
If AIDS is cured, it will be by profit-making pharma- bility to find peaceful means to resolve potential conflicts.
G8 ceutical firms. If today’s developing states join nations Whatever the equities of the disputes between Russia
Summit 2009 such as South Korea among the world’s economic elite, and Georgia, China and Taiwan, and America and Iran, for
76
Envision

G8
Summit 2009

77
Editorial

instance, the price of war will always be high. Tragically,


war is sometimes necessary. However, countries which
aspire to international leadership must ensure that war
truly is a last resort.

Last, and perhaps most importantly, all participants


in today’s interconnected global order need to take a
long-term perspective. Peoples, companies, NGOs,
and governments alike have an important role to play
in meeting today’s challenges. But this crisis eventu-
ally will be just a distant memory. In addressing the
problems of the present, we must be careful not to
shortchange the future.

The world looks much darker at the G8’s 2009 meet-


ing than it did last year. But our nations have weathered
economic depression and global war in the past. We can
surmount the current challenges before us. However,
doing so will require a willingness to cooperate and
openness to new ideas not often seen at international
meetings. This year more than ever we cannot afford
to allow selfish politics to trump good policy.

Michelle D. Bernard is an MSNBC political analyst


and a Sunday columnist with The Washington Examiner.
Bernard is the President and CEO of the Independent
Women’s Forum and Independent Women’s Voice.
Bernard is author of Women’s Progress: How Women
and Are Wealthier, Healthier, and More Independent
than Ever Before.

G8
Summit 2009

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G8
Summit 2009

79
Mercantilism or Meeting Demand? China’s National
Oil Companies and Multilateral Diplomacy
By Tyler Anderson, Hinckley Scholar, University of Utah Hinckley Institute of Politics

Much has been said about the assertive, statist


ideology that encourages Chinese petroleum firms to
engage in unfair practices in international oil markets.
Gal Luft, executive director of the Institute for the
Analysis of Global Security and one of the most out-
spoken critics of China’s National Oil Companies
(NOCs), put it thusly:

“Sixty-seven years ago, oil-starved Japan embarked


on an aggressive expansionary policy designed to se-
cure its growing energy needs, which eventually led the
nation into a world war. Today, another Asian power
thirsts for oil: China…The seeds of what could be the
next world war are quietly germinating.”1

Henry Kissinger has also argued that competition for


oil will be the driving source of international conflict in the
near future.2

When viewed from afar, the current actions taken


by Chinese NOCs may certainly look like a mercantilist
grand strategy planned from Beijing in order to secure
long-term oil concessions and strategic partnerships
in rogue states (Syria, Iran, Sudan). However, that analysis
is fundamentally flawed—instead, the international
expansion of Chinese National Oil Companies is driven
primarily by market factors, and not by government
ideology or political calculations. This process is the
logical reaction to Chinese domestic market pressures
and supply shortages. 3;4

If anything, the Chinese government would prefer to


remain self sufficient rather than depend on NOCs op- limited opportunities to increase upstream production
perating in politically unstable countries where Western oil domestically and thin or negative margins on down-
companies are forbidden to operate.5 Under Mao, energy stream activities because of price controls, Chinese oil
self-sufficiency was once a centerpiece of Chinese en- companies have sought to boost reserve holdings, pro-
ergy policy.6 Even today the more internationally oriented duction, revenue, and clout by expanding overseas.”9
NOCs often contradict domestic governmental prefer- These factors, not political machinations in Bejing, com-
ences for increased spending on national infrastructure to pell expansion abroad.
“prop up” national oil fields like those in Daqing.7
Equally important is that Beijing simply does not
Unfortunately, the Chinese government faces a grim have the bureaucratic infrastructure to enforce such
statistical reality: consumption is vastly outpacing do- a mercantilist policy. Erica Downs, scholar of Chinese
mestic productive capabilities (BP’s statistical review energy security at the Brookings Institute, argues:
of world energy reported that in 2007 China imported “Where many international observers see a carefully
3,277,000 barrels a day of crude oil and 834,000 barrels devised strategy for the acquisition of overseas oil and
of refined petroleum),8 and the NOCs are hard pressed natural gas assets driven from the ‘top-down,’ Chinese
to find domestic or international sources of petroleum analysts see chaos generated from the ‘bottom-up.’”10
to meet this demand. Additionally, fuel subsidies further In fact, the Chinese government (notoriously bottle-
constrain NOCs by structurally incentivizing overseas necked as it is) has no single overriding government
G8 expansion. Scholars Rosen and Houser from the Peter- body overseeing its energy policy; two of its largest
Summit 2009 son Institute for International Economics contend, “With offices, the Energy Bureau and the State Energy Office,
80
Editorial

1Luft, Gal. U.S., China Are on Collision Course Over Oil. LA Times
Op-Ed, February 2, 2004.1.

2 Daniel,
Caroline. Kissinger Warns of Energy Conflict, Financial
Times, June 2, 2005. 8.

3 Downs, Erica. The Fact and Fiction of Sino-African Energy Rela-


tions. China Security, 3 (3), Summer 2007.

4 Alterman, Jon B. and Garver, John W. The Vital Triangle: China,


The United States and The Middle East, Significant Issue Series, 30
(2). Center For Strategic and International Studies. Washington DC.

5 Rosen, Daniel; Houser, Trevor. China Energy: A Guide for the Per-
plexed. China Balance Sheet. Center for Strategic and International
Studies & Peterson Institute for International Economics. May 2007.

6 Zha, Daozjiong (≤È£¨µ¿æº). China’s Energy Security and Its


International Relations. Third IISS Global Strategic Review, Geneva,
are run by fewer than 150 staff member, many of which 16-18, September 2005. Retrieved December 2008 www.silkroad-
have close ties to the petroleum industry.11 studies.org/new/docs/CEF/Quarterly/November_2005/Zha_Dao-
jiong.pdf

Furthermore, even if the Chinese government had 7 Rosen and Houser (2007). 22.
the bureaucratic capacity to leverage NOCs, there are
8 BP Statistical Review of World Energy, June 2008. 21.
political reasons why it cannot significantly manipu-
http://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_
late them from engaging in anti-market (and hence english/reports_and_publications/statistical_energy_review_2008/
non-profit maximizing) behaviors in order to accom- STAGING/local_assets/downloads/pdf/statistical_review_of_world_
plish additional policy objectives. Lee and Shalmon of energy_full_review_2008.pdf
Harvard’s Kennedy School of Government state, “The 9 Rosen and Houser (2007). 22.
profitability of the state oil companies is critical to Chi-
na’s efforts to meet its long-term energy security goals 10 Downs 2007. 47-48.
while supplying a significant percentage of the total
11 Rosen and Houser (2007). 18.
revenues realized from the struggling state sector.”12
As the New York Times has recently reported, it seems 12 Lee, Henry. Shalmon, Dan A. Searching For Oil: China’s Initiatives
that Chinese firms are more than willing to divest from in the Middle East. The Enviroment. Harvard University Press, June
their foriegn holdings if they feal they are in danger 2007. 4.
of being crippled economically.13 13 The New York Times. After Wall Street Losses, China Fund Said
to Shift Focus. The New York Times Dealbook, Edited by Andrew
It is time we acknowledge China’s bilateral relation- Sorkin. February 20, 2008.
ships with oil producing states are relationships defined http://dealbook.blogs.nytimes.com/2009/02/20/after-wall-street-
by economics and not geopolitical posturing, especial- losses-china-fund-said-to-shift-focus/
ly as it opens new opportunities for international coop- 14 Alterman, Jon B. and Garver, John W. The Vital Triangle: China,
eration on issues of energy security. In fact, the Center The United States and The Middle East, Significant Issue Series, 30
for Strategic and International Studies (CSIS) and the (2). Center For Strategic and International Studies. Washington DC.
US Government have both recently released papers 15 Kellerhals,
Mere D. US China Relations Show Progress. America.
arguing that China has begun to show just such flexi- gov, 5/27/08. Retrieved from http://www.america.gov/st/peacesec-
bility.14;15 Steps toward this cooperation should include english/2008/May/20080527135326dmslahrellek0.5858271.html
the addition of China in the International Energy Associ-
ation (IEA) and addressing China’s fuel price ceiling and
subsidies. Were fuel prices allowed to rise, demand for Tyler Anderson is an undergraduate student at the
refined petroleum would slacken, thus reducing the rate University of Utah in Economics and Political Science
the Chinese production/consumption gap is expand- and he served a Hinckley Institute of Politics internship
ing. China already leaves a large footprint on the global with the U.S. House Committee on Foreign Affairs.
energy market, and as Chinese energy markets con-
tinue to grow cooperation with China on energy issues
becomes even more important. As NOCs continue
to operate on the market conditions rather than poli-
tics, it is evident that policy steps can and should be
taken to insure that China becomes a responsible G8
member of the international energy community. Summit 2009

81
Harmful Transnational Activity: Principles
for Coordinated Domestic Legal Responses
By Chris Whytock, Associate Professor, University of Utah S.J. College of Law

Maritime piracy has recently made its way into world First, they should be designed to effectively reduce
headlines. While piracy has existed for centuries, it transnational harm by holding wrongdoers account-
has increased dramatically in the last decade and now able and deterring future harmful acts. But the ends
causes billions of dollars of damage annually, according do not justify the means. Hence, the second guiding
to a study published in the journal Foreign Affairs. principle: fairness. Domestic institutional responses to
transnational harms must follow procedures that ensure
Piracy is only one example of a wider phenome- that suspected transnational wrongdoers are detained,
non that confronts today’s world leaders: harmful acts tried, and (if convicted) punished consistently with inter-
committed by nonstate actors operating beyond na- national norms of due process and human rights. Third,
tional borders. Other examples include human traf- these responses should be developed and implemented
ficking, narco-trafficking, transnational terrorism, and in accordance with the principle of comity: each country
cross-border pollution. should develop and implement domestic responses in
coordination with other concerned countries, taking into
Unfortunately, the international legal system is ill account other countries’ legitimate interests.
equipped to deal with these challenges. The system
was built on the assumption that only states have rights
and obligations under international law. To be sure, the
emergence of human rights law and the advent of the
International Criminal Court challenge this assumption
and represent important steps in the development of the
international justice system. Individuals now have lim-
ited but nevertheless important rights and obligations
under international law. Yet compared to the magnitude
of the transnational threats now posed by nonstate ac-
tors, the international legal framework for responding to
those threats remains disproportionately weak.

As a result, the legal response to the new rise of While formal international legal arrangements may
piracy has relied primarily on domestic rather than often be optimal, policymakers should not automatically
international institutions. Once captured, suspected assume that this will always be the case. Domestic in-
pirates (if not released) have been delivered to domestic stitutional responses—if well-coordinated and based on
courts for trial. The United Kingdom and the United States the principles of effectiveness, fairness, and comity—
have entered memorandums of understanding with can also be appropriate. The essential point is that the
Kenya whereby suspected pirates captured by the for- character of particular transnational problems will deter-
mer can be tried in Kenyan courts. But for the most part, mine whether the best legal responses will rely primarily
arrangements have been ad hoc. The international on international, regional, or domestic institutional foun-
community’s responses to other types of transnational dations.
harms have also consisted largely of improvised reliance
on domestic legal institutions. Moreover, history shows that even in the face of
grave transnational threats, political realities often pre-
There are two basic alternatives to the prevailing ap- vent countries from agreeing upon formal international
proach. One is to establish new international courts to institutional solutions. Even when not optimal, coordi-
address challenges like these. However, world leaders nated and principled domestic institutional strategies
should not rush toward that solution without carefully may offer the best practicable responses to many of the
comparing the likely costs and benefits of formal inter- transnational challenges of our time.
national institutional initiatives to those of another alter-
native: well-coordinated and principled domestic institu- Dr. Christopher A. Whytock is an associate profes-
tional strategies. These strategies should be based on sor of law at the University of Utah S.J. Quinney College
three key principles: effectiveness, fairness, and comity. of Law, where he conducts research on transnational liti-
gation, international law, and the role of domestic courts
G8 in global governance.
Summit 2009

82
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G8
Summit 2009

83
Foreclosing on American Leadership
By Christopher Peterson, Professor, University of Utah S.J. Quinney College of Law

One of the surprising things about the U.S.’ home somewhere in the subprime refinance frenzy, the Fed-
mortgage foreclosure glut was how many different enti- eral Trade Commission forgot to act.
ties had a hand in sowing the seeds of tainted loans. It’s
widely understood that Congress’ tax break on home The American banking industry is made up of a com-
mortgage interest created an incentive to shift consum- plex hodgepodge of many different federal and state
er and medical debts into refinanced home mortgage chartered institutions. In the U.S. there are federal banks,
loans. Moreover, it is not hard to see that the Federal Re- thrifts, and credit unions—all three of which have differ-
serve’s sustained cheap money monetary policy through ent regulators. And, these same types of institutions can
the 1990s and 2000s created tempting spreads be- be chartered by any of the fifty states—and regulated
tween banks’ cost of funds and the promised yields on by more than fifty different state regulators, plus another
subprime home mortgage securities. But what may be federal deposit insurance watchdog of some sort. The
less clear is how many government institutions had the Comptroller of the Currency (federal banks), the Office
legal authority to make changes that would have pre- of Thrift Supervision (federal thrifts), the National Credit
vented—or at least moderated—the lending practices Union Administration, and all the other federal and state
that caused the foreclosure crisis. bank regulators had the authority to limit any practice
that would jeopardize the “safety and soundness” of the
financial industry. But none of them did.

Perhaps the easiest target of blame was the der-


eliction of President George W. Bush—the leader of an
administration that opposed virtually all regulation of
any form. But, his failure cannot explain how the Ameri-
can judiciary—an institution that was supposed to act
as a check and balance on the excesses of the politi-
cal branches of government—sat on the sidelines while
millions of fraudulent loans went undeterred. The custo-
dians of the Anglo-American common law tradition nev-
er laid the strong hand of the law on mortgage broker
kickbacks, “stated income” loans, or the commission
hungry investment banks that passed on faulty paper
to investors.

It is not as though abusive and poorly underwritten


In 1994 Congress recognized that, in the wake loans were something new. Courts, bankers, and bank
of Reagan era banking deregulation, a new breed of regulators have always dealt with this problem. What
“predatory” mortgage lenders had began taking ad- was different was that the home mortgages that came to
vantage of naïve borrowers that had significant equity clog America’s real estate markets with foreclosures and
in their homes. In a tragically forgotten law called the abandoned properties were bought, packaged, and sold
Home Ownership and Equity Protection Act, Congress to investors through a process known as securitization.
gave the Federal Reserve Board of Governors sweeping Unlike past generations where lenders retained mort-
authority to issue regulations constraining abusive con- gages in their own portfolio or sold them to relatively well
sumer mortgage lending practices. Basically, the Fed heeled government sponsored enterprises, private label
had the regulatory equivalent of a blank check that they securitization created a method of connecting one limit-
never bothered to cash. edly rational group, borrowers, to another, investors. All
along the way a host of middlemen wet their beaks in a
But, it wasn’t just the Federal Reserve Board. stream of commissions and fees little regard as to whether
The U.S. Federal Trade Commission has for gen- the loans actually made sense. But this recognition
erations had the authority to issue regulations limit- does not answer the puzzling question of why so many
ing “unfair and deceptive” practices by many of the different government agencies and institutions so com-
non-bank lenders that were the most reckless ac- pletely failed to stop such a large and—one would
tors in recent years. In the past the FTC had been a think—detectable problem?
leader in the American consumer movement adopt-
ing regulations that preserved consumers’ rights The answer may lie in the fundamental shift in the
G8 in retail installment lending and debt collections. But, political power and prestige of those that profited from
Summit 2009

84
Editorial

questionable lending. By enlisting world capital markets


and the most prestigious investment banking houses in
the once-shady fringe lending business, securitization
dramatically empowered the opponents of consumer
protection law. In the 1980s and early 1990s, American
academics generally referred to high-cost consumer
creditors as the ‘fringe lending industry.’ The appellation
invoked a picture, then accurate, of marginalized busi-
nesses that preyed on consumers by flying below the
radar screen of law enforcement and the courts. But in
the subprime home mortgage refinance glut, reference
to ‘fringe’ lenders became a misnomer. The reason is
not that fringe lenders went away, but rather that fringe
lenders became capitalized and politically embraced by
America’s most powerful financial institutions.

It remains to be seen whether the United States’


government and the American people will learn one of
the most important lessons of the financial crisis. Long
overdue, America must adopt comprehensive legal re-
form of its consumer financial services system. Not just
bailouts, America’s banks themselves need firm legal Christopher Peterson is a Professor of Law at the
change. Failing at this will risk the permanent loss of University of Utah, S.J. Quinney College of Law, where
international faith in not only American financial institu- he specializes in consumer financial services law.
tions and securities, but also American leadership.
Pandemic Flu: Preparedness in a Changing World
By Secretary Michael O. Leavitt – Former Governor of Utah, Administrator of Environmental Protection Agency, and
Secretary of the U.S. Department of Health and Human Services

Pandemics happen. They always have, they always The Spanish Flu was the most recent pandemic
will. They are a fact of biological life. However, discussing of historic scale, but others have since attacked with
them presents a political and cultural dilemma. Anything destructive consequences. Throughout two pandemic
one says in advance of a pandemic seems alarmist. Yet waves, the Asian Flu of 1956-58 maintained high infec-
after pandemics begin, all preparations and warnings tion rates among the so-called “transmitter population”—
will seem inadequate. notably school-aged children—and killed between one
and four million globally, including nearly 70,000 Ameri-
Periodically, a unique virus surfaces and swiftly diffus- cans. Later, as the mildest pandemic of the 1900s, the
es across a non-immune population, causing widespread Hong Kong Flu in 1968 brought about around 33,000
disease on a global scale. During the past five years, deaths globally, likely mitigated by a moderately immune
the H5N1 virus heightened the attention of the world to population and enhanced medical treatment. Though
pandemic danger. While the virus continues to spread counteractants were developed quickly and further
around the world among animals, no evidence has yet catastrophe preempted, unpreparedness and limited
emerged that it will mutate into an efficiently transmissi- vaccine supplies likely exacerbated the death toll in
ble human pandemic virus. However, if it is not the H5N1 each case.
virus that sparks the next pandemic, it will be another
virus. Pandemics happen. Most recently, the Avian Influenza (or H5N1s) that
transmitted from infected poultry has killed hundreds
Continual preparation is an imperative. World lead- with a more than 60% fatality rate since its detection in
ers must protect their citizens from the spread of in- 1997. Although H5N1 is a new multiple-strain, influenza
fluenza by working collaboratively to strengthen global virus subtype and has contaminated and sickened many
prophylactic production and treatment capacity, provide humans, it has failed to easily transmit and protract
and encourage targeted investments to production- across humanity as viable pandemics must. Still, trans-
ready companies, and promote transparency vis-à-vis missibility remains a plausible and volatile prospect.
virus and vaccination information and ideas.
A Framework for Pandemic Preparedness

Pandemics are a fact of biological life and experts


predict that one will eventually occur and affect the entire
international community. However, governments around
the world are not prepared, nor can they resolve the crisis
alone, but require assistance from corporate actors, com-
munity institutions, critical service providers, and others.
As a result, it is essential for the international commu-
nity to work collaboratively in implementing a pandemic
preparedness agenda.

To contain an initial outbreak, plans must be


coordinated between nations and their associated
governmental entities and between governments and
the private sector, with an emphasis on local organiza-
tions not wholly reliant on the federal government. Each
nation at appropriate public and private levels should de-
velop comprehensive strategies and contingency plans
Pandemic Influenza: Historical Back- with primary aims to strengthen the capacity of the vac-
ground cine and antiviral industries, advocate public and private
investment, and ensure transparency of information.
During the 20th century, three pandemics oc-
curred, triggering immense devastation to human life. A practical stockpiling and distribution counter-
The Spanish Flu of 1918 infected between 20 and 40% measure system maintained by health industries and
of the global population and killed more than 50 million supervised by national and local governments would
people, including 675,000 Americans. These acute in- provide critical and prompt vaccinations and medical
G8 fections were not prejudiced and killed even the young supplies—such as ventilators, syringes, and intrave-
Summit 2009 and healthy along with the old and infirm within days. nous antibiotics—to people in any country at the outset
86
Editorial

of pandemic influenza. To accomplish this, it is neces- viable vaccines from shared samples. Countries like
sary to bolster the vaccine industry by awarding con- Indonesia who want to hold H5N1 virus samples
tracts with substantial incentives to companies willing hostage by demanding payment need to reconsider
to build production facilities and generate sustainable their position and concede the fundamental principle
and adaptable inventories. that health risks outweigh intellectual property gains.

As with any remedy to global threats, a joint public Preparation is a Continuum


and private investment scheme can sufficiently prepare
against an attack. To deal with the relatively new H5N1 Pandemic preparedness generates many ancillary
subtype, the U.S. teamed up with health technology benefits in that it prepares the world for other natural
companies to develop new cell-based methods of pro- and manmade disasters. Preparation for pandemic
duction and advanced dose-sparing technology to limit influenza becomes a catalyst through which readi-
production constraints and lower vaccination costs. ness against all categories of risk can progress and
Due partly to these efforts, the U.S. has secured over will establish innovative processes to combat all other
26 million doses of H5N1 pre-pandemic influenza vac- global threats.
cine and over 50 million antivirals. Existing stockpiles
are made available to domestic health experts and for- Pandemic plans require active preparation for non-
eign countries for clinical trials, case reporting, and rap- routine emergencies and must be continuously adjusted
id viral diagnosis. to fit contemporary needs. If a pandemic influenza occurs
anywhere, it is a risk everywhere. As nations, cities, com-
If pandemic influenza spreads within one geographic munities, companies, and households prepare and pan-
location, it becomes an economic problem and tangible demic readiness progresses, antivirals and vaccines will
threat to the entire world. Due to the potency of global be allocated to everyone, not only the few. Global health
economic interconnectedness, as pandemic influenza is at stake, but more importantly, humanity is threatened
disrupts industrial or agricultural production in, for in- and as global cooperation is achieved, the current gen-
stance China, the effects are likely to cause setbacks in eration could be the first ever prepared in the event of
food trade and transportation routes everywhere. a pandemic outbreak.

The rapid spread and variation of a deadly influenza Secretary Michael Leavitt is the former Governor
strain accentuates the need for transparent information of Utah, Administrator of the Environmental Protection
and virus sample sharing among nations. As demonstrat- Agency, and Secretary of the U.S. Department of Health
ed in the SARS flare-up of 2003, no one country owns and Human Services.
the virus once it begins to spread. Such outbreaks are
effectively managed when doctors from various coun- Acknowledgements: Rich McKeown and Andrew G8
tries collaborate (rather than compete) and produce Jensen. Summit 2009

87
Interview with
His Excellency Klaus Scharioth
Ambassador of the Federal Republic
of Germany to the United States

Q: What are the major challenges and priorities for the German government at the upcoming G8
Summit?

We support the priorities of the Italian Presidency. The G8 should send a clear signal of a com-
mon effort to overcome the global financial and economic crisis. We want to emphasize that the glob-
al economic downturn hits the poorest countries especially hard and that we must show solidarity.
Another key issue is to mark the route to Copenhagen, i.e. plan the steps required to tackle climate change.
Finally we want to focus on our cooperation with Brazil, China, India, Mexico and South Africa in what we
call the “Heiligendamm Process”, an initiative taken by the German G8 Presidency in 2007.

Q: In a speech at the Paris Conference, titled “New World, New Capitalism” Chancellor Angela
Merkel said that: “The G8 is no longer the group that can create a global order for the world.
Under Germany’s G8 presidency, we started, in what is referred to as the Heiligendamm process,
to work together with five major partners—India, China, Mexico, Brazil, and South Africa—on a
permanent and continuous basis within the OECD.” Does Germany believe that the G8 is closer
than ever before to adding new members to the G8? How many more members should be added
besides the five already mentioned?

We witness the emergence of new actors like Brazil, China, India, Mexico and South Africa on
the world scene. Germany initiated during its G8 presidency the so-called Heiligendamm Process in
order to involve these major emerging economies in the work of the G8. The Italian presidency wants to
continue and intensify this process; we support this. A real partnership with these countries is essential
because we need to cooperate with them to solve the most pressing global problems (financial crisis,
food security, climate change, energy and resource supply). It is my impression that these countries show
readiness to shoulder responsibility, they are more and more open to acting together on issues of mutual
concern. Therefore our aim is to continue and to deepen the dialogue with them. Discussions within the
G8 regarding a possible enlargement process have just started. In any case: consensus among all G8
partners is necessary. Therefore it is too early to predict a precise outcome.

Q: The Italian government has indicated that it intends to push for a fresh approach to African
development by crafting a comprehensive strategy that treats African countries as equals and
makes more use of NGOs and private sector actors rather than following the old top-down
model of simply dispensing aid. Does Germany also embrace such an approach?

The approach is not entirely new, in fact, the whole G8-Africa partnership and the Action plan
have rested on this premise right from their outset. Various G8-presidencies, including the German one
in 2007, have highlighted this philosophy in various ways. One of the issues at the G8 Heiligendamm
summit in 2007 (Growth and Responsibility in Africa) was the strengthening of the private sector in Africa
in order to promote growth and sustainable development. The Joint EU-Africa-Strategy, which was in-
troduced during the German EU-Presidency in 2007, is another good example of a partnership amongst
equals. Over the past 40 years, German development cooperation has relied on a close cooperation with
nongovernmental organizations, from Germany and abroad. We value this partnership and will continue
to channel a significant proportion of development assistance through NGOs.

G8
Summit 2009

88
Q: The Italians plan to focus on ways to improve the security situation in Afghanistan. How does
the German government view the situation in Afghanistan and does Germany plan to contribute
to helping improve security and building civilian institutions in Afghanistan?

While living conditions of millions of Afghans have improved remarkably (health; education; water,
energy and transportation infrastructure), Afghanistan is still plagued by violence and intimidation from
the hands of an armed insurgency and extremist groups. The challenge of improving the security situ-
ation in Afghanistan is twofold. First, sustainable security gains will require building self-reliant Afghan
Security Forces along with capable civilian institutions to guide them. Secondly, and equally important,
Afghans must be convinced to firmly side with their government and support Afghanistan’s constitutional
order which requires reducing the appeal of the economic and ideological recruiting tools at the extrem-
ists’ disposal. To this end, the Government of Afghanistan must be enabled to deliver basic services,
economic opportunity and a sense of personal security and stability to Afghans throughout the country.

In all of these endeavors, Germany closely and actively partners with Afghanistan. Germany has
been NATO’s lead nation for the stabilization of Afghanistan’s north for almost six years. The German mili-
tary presence there has greatly contributed to improved security, economic reconstruction and the estab-
lishment of civilian institutions. In fact, Germany was the first country to establish a NATO presence outside
Kabul. German airlift and reconnaissance capabilities operate throughout Afghanistan. Overall, Germany is
the third largest troop contributor to Afghanistan. The German contingent will grow this year from 3,500 to
4,150 to safeguard presidential elections. Germany is heavily involved in building a capable Afghan National
Army (ANA) - with seven teams of military trainers and a pledge of 50 million Euros to the ANA Trust Fund.
With a view to establish a capable Afghan National Police (ANP), Germany has deployed 140 experts, ad-
visers, trainers and military police and funds the construction of critically needed police infrastructure such
as headquarters and academies. In the field of civilian reconstruction, Germany is the fourth largest bilat-
eral donor with an assistance total of over 1.2 billion Euros in the period 2002-2010. In addition, Germany
accounts for 20% of the assistance provided by the EU for Afghanistan. That assistance amounts to 1,5
billion Euros in the period from 2002-2009. Striving to provide tangible improvements in living conditions
for the Afghan populace, Germany is particularly engaged in providing energy, water, health, education,
infrastructure (e.g. hospitals in Balkh and Faizabad, airport in Mazar-e-Sharif), mine clearance and coun-
ter-narcotics projects. In addition, Germany provides 22 million USD to UNDP to support Afghan national
elections. Germany also helps build a capable Afghan justice sector and supports building administrative
capacity through training and exchange programs.

The German engagement in Afghanistan is part of a joint international effort with the G8 being
one of many frameworks to coordinate within the donor community. We will use the G8 summit in Italy
as another opportunity to jointly assess the situation in Afghanistan and to consult with partners on the
way ahead.

Q: In the midst of the global financial crisis, there are strong domestic pressures on govern-
ments to enact protectionist trade measures. What is the position of the German government on
protectionism?

In times of crisis, it is very tempting to fence off one’s own economy. From our perspective
that would absolutely be the wrong answer. It only would lead deeper into crisis, as is shown by painful
experiences in the past. For decades, we have all benefited together from the global reduction in trade
barriers. Open markets and freedom to invest are the foundations for growth and prosperity world-wide.
We therefore have to fend off protectionist tendencies vigorously. In this context, the German government,
for example, paid very close attention in its own stimulus programme to ensuring that it does not give
preferential treatment to domestic suppliers.
G8
Thank you Mr. Ambassador. Summit 2009

89
Interview with
His Excellency Pierre Vimont
Ambassador of France to the United States

Q: What are the most important priorities and challenges for the French government at the
upcoming G8 Summit?

I think there are three main priorities. The first one is the G8 collective response to the eco-
nomic crisis. The G8 is a natural actor in this area. Since last November, the G20 has worked intensely
to identify the root causes of the downturn and cope with its consequences including by improving the
regulation of the financial system and stimulating a sound recovery, but we have to work in concert. The
G8 will probably focus on the long term perspectives for recovery. We can come back to that later, but
the economic situation is the first priority for the French government. The second priority would be the
upcoming Copenhagen conference and the design of an ambitious and competitive international frame-
work that will deal with climate change. This is of paramount importance. The third one is the question
of development assistance particularly towards the most vulnerable in Africa, which is becoming one of
the major challenges that the G8 is addressing.

An overall priority in that context has to do with the G8 outreach towards emerging countries,
and as I was saying previously, this involves some coordination with the G20. I think that there will be
some discussions on how we are exercising the G20 process and how we organize relations between
the G20 and the G8. I think it will be necessary for the leaders that prompted the G8 meeting to have a
discussion on that and to see how things can be articulated.

You know that for some time, there has been a tradition in the G8 to allow at one point that the
eight countries that belong to the G8 meet with the five main emerging countries, Brazil, China, India,
Mexico, South Africa and I think that this has already been planned in the G8 agenda in Italy. This out-
reach activity will have to be put into the context of the new G20.

Q: Considering how popular the G20 summit in London was this year it seems like the G8 was
a little overshadowed, if only for a moment. Do you feel that in the coming years we will see a
revolutionary change between these two summits?

We will have to see. It is true that France is very much at the forefront of the idea that the G8
cannot be kept with the present format. President Sarkozy has been very clear about that; he has been of
the opinion for sometime now that the G8 should be transformed into a G13 with the five emerging coun-
tries I mentioned. In fact, at the time the financial crisis burst out with the Lehman Brothers bankruptcy
in September of last year, he said that there should be an international group to deal with the issues
that should be more inclusive than the G8. President Bush agreed to go forward and came up with this
G20 format. Now the important thing as we go along is to see of and how we keep those two processes
working side by side or if we should try at one point to simplify the way we proceed and coordinate
our policies.

Q: Of course no one has decided what the magic number will be for the Group.

When you have left the G20 out of the box it is very difficult to say to some of the members
to go back home and not participate anymore. But maybe at one point, once the economic and
financial situation is getting better, the leaders in the G8 will be able to find the right figure in order to
G8 enlarge the G8.
Summit 2009

90
Interview with His Excellency Pierre Vimont

Q: We spoke about expansion and how France feels about it. I wanted to talk a little bit about the
agenda that the Italian Presidency put forward. Italian Foreign Minister Frattini was in Washing-
ton a few months ago to discuss five focus areas for the summit’s agenda, which included de-
velopment in Africa, non-proliferation, counter-terrorism, and the financial crisis which in itself
is quite big considering the sub-issues of protectionism and trade. Do you feel that the agenda
of the G8 has become too ambitious to tackle in a few days?

Well, that has always been the case. If you look at the history of G7 and then G8 Summits you
will see that for a three-day meeting they were able to get through many international issues. The G7 and
the G8 meetings have always been much more than just meetings on economic issues, because when
you have important world leaders in one single place, it is natural that they wish to evoke political issues
on which they feel they can make some progress.

Q: I have to agree with you on that I think there are about eight meetings so far scheduled with
foreign ministers and financial ministers, so there is a lot of groundwork done before the summit.

You have to remember that in fact the idea for the summit originally was to just have one day
or one weekend talk in a very casual and informal way about economic issues. Quite quickly though, it
became this three-day meeting of heads of state that turned into a long and well prepared process.

Q: How does France view the situation in Afghanistan and Pakistan?

We are very much in line with what has been stated by President Obama on the strategy
towards Afghanistan and Pakistan. The fact is that Al Qaeda and the Taliban move from one country to
another and you have to take into account this element if you want to find a sustainable solution to this
conflict. Having said that, what we are trying to do is to be as practical as possible and to look at what
the priorities are in both countries. If you look at Afghanistan, the important issues at stake are how to
help and assist the Afghans in improving their institutions, training their security forces and equipping
them to carry out their mission. We are also looking at increasing our technical and financial assistance
to the central government but also to the provincial governments around the country. In other words,
we are looking at helping the country and their local and national leaders to build up a viable state in
all areas, from public health to justice or education and agriculture. We also have to work very closely
with the Pakistani authorities so that they can mobilize to fight the Taliban. The priority there is to help
the Pakistani army to be better equipped, to become more efficient in its fight against the Taliban. The
current army is certainly a very efficient army but an army that has so far been mostly trained for con-
ventional conflicts and not for those kinds of counter insurgencies and asymmetrical conflicts that we
are facing today.

Q: It is definitely a very sensitive situation for Pakistan. The Swat Valley for example is an area
full of civilians that are being used by the Taliban as a shield.

Looking at the reports that we have received, one can detect that the majority of the popu-
lation seems to oppose The Taliban rule. They are very reluctant and have shown a lot of reservation
towards the Taliban and I think that is something that we have to keep in mind.

Thank you Mr. Ambassador.

G8
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91
Interview with
His Excellency Ichiro Fujisaki
Ambassador of Japan to the United States

Q: What are the major challenges and priorities for the Japanese government at this upcoming
G8 Summit?

Before we get into that point, can I tell you what the G8 is from my perspective. The G8 Summit
is an annual health check up of our political and economic system. If we think of our system as an archi-
tecture, every year or all the time there are termites trying to bore into this structure. That could be in the
political field, the proliferation of weapons of mass destruction or it could be terrorism. In the economic
or social area, it could be a challenge to the market economy, a pandemic, or development issue. All in
all, you can think of our system as a building, a construction, where the west wing is the political system
and the east wing is the economic system. We always have to watch that this building is not attacked
by termites, and accordingly, a regular health check up is necessary. That is the very essence of the G8
Summit, from that point you are coming up with very similar issues every year, and similar prescriptions
as well. You address similar issues and also you are given similar prescriptions to not drink too much, to
jog a bit, etc. So, I would like you to know that is the very essence of how I see the G8.

This year this torch has been carried, passed on from last year’s Hokkaido Toyako Summit in Ja-
pan. But there are other changes as well. A big change is that the world economy has met huge challenges
since last year, so in our health check up that would be the first topic to be raised. Second or third would be
the issues carried on from the last summit, environmental issues like climate change, the fight against
terrorism, and the proliferation of weapons of mass destruction including nuclear. On top of that there
are regional issues.

Q: What are your thoughts on the G20? It seemed for a moment that the G20 Summit overshad-
owed the G8 Summit.

The G8 is very different from the G20. The G20 is very important because it covers 85 percent
of GDP of the world. As far as it addresses and copes with the global economy and financial issues today,
the G20 is a very useful tool and I think all of us should utilize this as much as possible. But the G20 is
not addressing proliferation, it is not addressing the flu pandemic, it is not addressing democracy, it is not
addressing the development issue per se. On the other hand, the G8 summit covers not only ecoonmic
and financial issues but also global issues such as the environmental issues, the fight against terrorism,
and the non-proliferation issues. Therefore, the importance of the G8 summit is not undermined or over-
shadowed by the G20 summit.

Q: Italian Foreign Minister Frattini was in Washington in January and said that in a financial crisis
where the whole world is suffering we shouldn’t let development ideas take the back seat. Would
you agree with that?

I agree with that idea. Japan is trying to increase our development assistance in Asia as well.
Of course there are two reasons that Asia should not be left behind. Asia is an engine for world develop-
ment so we think that we have to put an emphasis on Asian countries. While the Japanese economy
suffers the current situation more than those of the United States or Europe, in terms of GDP growth
prospects, we think that we should live up to our commitment because we cannot spill this economic
difficulty into developing countries.
G8
Summit 2009

92
Interview with His Excellency Ichiro Fujisaki

Q: I wanted to take you to the second priority of the G8 Summit this year, the climate change
discussions and the Copenhagen discussions coming up. What are your thoughts on the issue?

We think that climate change is very important. Our economy is one of the most energy ef-
ficient economies and we feel especially responsible because of the framework being started in Kyoto.
However, Kyoto was not a great success because the U.S., China, and India were not there. You may
already know that the U.S. and China each account for 20 percent of the emissions in the world. Japan
accounts for just 4.3 percent. So, we are already doing a lot not to repeat this in a next framework on
climate change.

Q: Do you think that the Copenhagen meeting will be a much more positive meeting than Kyoto?

It should be. The U.S. is much more positive and that is a hopeful sign. But it depends not only
on the U.S. but other countries as well, especially emerging countries. And for that Japan and the U.S.
have established a fund to assist developing countries for adaptation to climate change. Also Japan is
implementing technical cooperation to developing countries.

Q: I wanted to take you back to the financial crisis and what it does to trade. I know you men-
tioned quite a few things about the situation in Japan, do you feel that there will be more protec-
tionism measures coming up as a result of the financial crisis?

I don’t think so. Let me elaborate on my thoughts. Japan is dependent on foreign trade. If ever
one goes protectionist, we are one of the first ones that will be hit the most. Our energy self sufficiency is
4 percent, our food self sufficiency is 40 percent. U.S. energy self sufficiency is 61 percent, U.S. food self
sufficiency is 128 percent. The U.S. can survive on its own, Japan cannot. So we need foreign trade in Japan.
We think that leading countries like the U.S. and Japan and others should not be caught in a psychology
to protect our industry.

That is exactly what happened after the great depression and countries went into the protec-
tionist mode and started trade wars, which prompted the spirit stipulated in Article 1 of 1947 GATT in
the aftermath of post WWII. This vicious cycle should be avoided with our firm commitment to promote
global trade and investment and to reject protectionism.

Thank you Mr. Ambassador.

G8
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93
Yuishi Kimura
G8
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Stylex

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G8
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97
Think about the spirit of “ITADAKIMASU” Sponsored Article

1. Rationale for establishing the nese people have deeply bent down still usable.
class of “ITADAKIMASU” their head, which has been practiced _To run an excessive amount of
since the medieval times. “ITADAKU” tap water.
has originally been a noble conduct of _To consume too much tissue
appreciation. paper at a time.
Even in the modern times, a full _Wasteful spending of money.
of feelings of all the people concerned _To leave an electric light turned
are embraced in the act of eating a on.
meal. Eating animals and plants is _To leave food on the plate.
nothing more or less than “a noble B. Read to children a book “MOT-
behavior of eating lives”. TAINAI” about the word encountered
In schools, lively voices of “ITA- in Japan, written by Vice Environ-
DAKIMASU!” are heard at lunch time. ment Minister of Kenya who received
However, only fewer children than the Nobel Peace Price (published by
Waseda University affiliated expected know the original subtext. Planet Link, Magazine House in June
Waseda Jitugyo Elementary Course They need to clearly understand the 2005). Then children were assigned
meaning of “ITADAKIMASU” and must to write their feedback on their note-
During her visit to Japan in Febru- be proud as a Japanese of the word book. Representative comments are
ary 2005, Prof. Wangari Maathai (69), created by our forerunners. given below:
Nobel Peace Prize laureate in 2004 In the field of education, we want _There are poor people in the world.
met up with and was deeply moved to think of this word of weight with _In the future, try not to repeat
with a word “MOTTAINAI” that has the children without losing substance MOTTAINAI things that I used to do.
spirit of the unique language culture but to continue to inherit as a “living _It is shameful to hear that military
of Japan. Since then she has been word”. On the basis of this, we as expenditure is higher than the amount
carrying on a MOTTAINAI campaign Japanese want to confidently intro- of money given to developing coun-
to spread “MOTTAINAI” as a “world duce “ITADAKIMASU” to the world. tries.
common keyword” in every corner of _Instead of only we live a rich life-
the world to protect the environment. 2. Class descriptions style, we better collect contributions.
Prof. Wangari Maathai was award- (1) 1st Lecture _If we bring a war to an end, the
ed the Grand Cordon of the Order of Coursework is conducted with
the Rising Sun by the country of Japan all the children of 5th grade. Slides
through the Ambassador to Kenya in are used to let them know of Prof.
May of this year (2009). She said with Wangari Maathai’s campaign. With
joy that it is “very encouraging for her the information, they think of the
to continue to make efforts”. She then word “MOTTAINAI”. While citing vari-
showed her determination to further ous “MOTTAINAI” movements around
promote her grass roots movement them, they make the class as the
through environment protection. Am- place to think of the movement in their
bassador Iwatani stated the reasons position.
why she was awarded this Order were (2) 2nd Lecture
that she had contributed to globally Coursework is conducted in each
disseminate the spirit of “MOTTAINAI” class. With the opinions exchanged number of people dying will decrease
and introduced Japan’s efforts for ad- during the 1st lecture, children think and then we can give money.
dressing climate change. of its original meaning of “ITADAKIMA- _We must care for children.
In addition to MOTTAINAI, Japa- SU”. Before closing the class, each _I thought there were various
nese language has many other words child makes up a slogan to sum up types of MOTTAINAI in the world.
that have peculiarity to the Japanese the coursework. _It is cruel and inhuman that
language culture. From the perspec- a large amount of military spending
tive of the food culture, “ITADAKIMA- 3. From the look of the coursework is taken for granted.
SU” is one of them. (1)_1st Lecture (2)_2nd Lecture
“ITADAKI” in “ITADAKIMASU” A. The teacher s asked children to A. The teacher asked children to
was originally the verb “ITADAKU” in think of the situation in which they will think if there are any words of which
a grammatical sense. When receiv- deem it “MOTTAINAI” ‘in their daily Japan can be proud, other than
ing a reward from a person of higher life’. Children gave the following an- “MOTTAINAI”. In reply to this, they
G8 standing, or eating offerings made to swers: gave the following answers:
Summit 2009 Shinto and Buddhist deities, Japa- _To do away with things that are Arigatou (thank you), Magokoro
98
Sponsored Article

(sincerity), Ichigo-Ichie (meeting only the rice served, use up a thing clev- without knowing the meaning, but
once in a life time), Doryoku (make erly and separate recyclable things as from now on, I want to say it whole-
effort), Taisetsu (valued), Setuyaku much as I can. heartedly.
(saving), Omoiyari (compassion), To- _Japanese people of today almost _I want to spread ITADAKIMASU to-
modachi (friend), Iccho-Niseki (kill two forget this MOTTAINAI, so I now think gether with its meaning to the people
birds with one stone), Kiryoku (mental to value MOTTAINAI more. of other countries in the world. Then,
toughness). leftover food might be reduced. If left-
B. All the students in the class over food is reduced, many people
thought of a slogan to introduce could be saved. To make such a world,
“ITADAKIMASU” to the people of the I wish many more Japanese people
world. And each student wrote the desire to globally spread this phrase.
slogan on a strip of sheet and put it As was expected, people in old days
up for display. Following are slogans: are great!!
_ITADAKIMASU is a baton relay to _I think only six letters (when writ-
support our life. ten in Japanese) can convey the joy
_”ITADAKIMASU” is a set expres- and appreciation to those who raised
sion to thank for lives. Pronounce them.
“thanks” (arigatou) from the heart. _Some lives must be lost. Other-
_”ITADAKIMASU” is a feeling of wise, humans cannot survive. When I
gratitude for having lives of other _Poor children always tolerate their think of this, I feel very sorry for them.
things. living standards, so favored children Indeed our lives can be sustained and
_Pronounce ITADAKIMASU. ITADA- should not lead a life of luxury. Ev- our lives are nurtured in this way.
KIMASU with thankfulness. ery grain of rice seemingly in a small _I thought ITADAKIMASU was
_Do not forget the spirit of ”ITADA- amount is cropped with a lot of care very important. I like to share my
KIMASU”! given. I like to express my thanks to meals with those who cannot afford
_”ITADAKIMASU” is …that saves farming people by eating all the rice to have meals and are going to die.
lives. serviced in return. I have not thought Pork, beef and chicken meat are de-
_Desire to make ”ITADAKIMASU” a of such thing till now. licious but we must ITADAKU their
world common keyword. _ITADAKU means that we have (Ita- lives. Otherwise, we will not get our
_”ITADAKIMASU” with a feeling that daku) lives of others. They include food. So, Cows, swine and poultry
we are having (Itadaku) lives. cows, swine and vegetable and oth- are raised with care. When we say
_Desire to spread ”ITADAKIMASU” er various lives. By eating them, we ITADAKIMASU, say it with thankful-
globally. grow in height and feet, and become ness to all involved in providing food. I
_For ”ITADAKIMASU”, a feeling of healthy. So, we must say thanks to have said it without a thankful feeling,
thankfulness is important. these animals. But the people who but from today I will say it with feeling.
_Eat even one grain of rice if left. raised animals and plants are not _I have not said ITADAKIMASU
_The word to thank and respect here, so say ITADAKIMASU with a with much feeling, but I now say
for all. feeling of thankfulness to the animals it with feeling to all the people who
_Feel good saying ”ITADAKIMA- and the people involved. I am happy made the lives and food as I studied
SU!!” that I could have time today to think it on ITADAKIMASU. Lastly I would say
_Value your life. over. Because I have done this today, that I want to study on the ITADAKI-
_”ITADAKIMASU” is packed with I will be able to say “ITADAKIMASU” MASU again.
lots of thankfulness. seriously.
C. In finishing the coursework for _I practice some things. I accept
thinking of the spirit of “ITADAKIMA- and give hand-me-downs. My school
SU”, children were required to write slippers are also hand-me-downs.
their feedback down on their note- The ones that become small for me
book to confirm what they learned will be handed to my cousin or ac-
from the one-shot course. Following quaintance. I now understand that al-
are their feedbacks: though I think I live frugally, it is a life
_When I told to my grandmother of luxury to the people of Africa. I will
and grandfather about this, they said exercise saving as much as I can.
that they had been told by their grand- _I thought that there were many
mother and grandfather to “cherish good people among the Japanese.
what you have, not leave rice on the This is because they have the thank- G8
plate.” I now think that I will eat up all ful mind. I used to say ITADAKIMASU Summit 2009

99
Sponsored Article The Last Ark Called Survivability
by J. B. Kabua
Marshall Islands Ambassador to Japan

There is a saying that in every event in human affairs, including sea level rising and its
predicted calamity, there is an opportunity of creativity. The immensity of Nature’s force
on the human habitat arrives slow but can also take the unprepared by surprise. The op-
portunity of creativity presented by sea level rise has actually arrived. But its seascape
and physical future belongs to the survivor.

Profile of author:
current Marshall Is. Ambas-
sador to Japan served over
25 years (public policy),
critic, loves politics, classic
music and philosophy, is-
sue writer (essayist), boat/
canoe builder; interested in
fish industries

Marshall Islands
Friendship Association

And who might that be? I define this person or persons as those who are interested
in reading the “ark’s drawings” and willing to assemble the keel, ribs, rudder, etc. that
have been precut, laid before you, and ready to be assembled into a condition for human
survivability.
The debate on whose policy and way of life inadvertently destroyed another man’s
way of life and culture is finished long time ago. There is no more time for playing the
“blame game” or the “look for sympathy” overture. Instead, let us recognize and act
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I therefore propose this action for the survivor of the future (for the sake of others).
Will you help create wealth through economic cooperation that I will design to assure eq-
uitable profit sharing with a nation whose way of life has not created its own wealth and
predicted to be a victim of sea level rise? Will you help create a trust fund exclusively for
defraying the cost of migration, relocation and resettlement? Would you be interested in
the management of extensive coral reef systems and ocean regions and their resources?
Let’s connect at e-mail: camelot_pi@hotmail.com

NEXT GENERATION

Noah Tartan Kabua, 14, Yoshio Tanaka, 15, resident Hideaki Yasuda, 29, Kyoto
son of ambassador: “If of Tokyo: “I think there is resident: “Some planning
this thing were to hap- enough land to welcome by the people must be
pen tomorrow, l think I will Pacific islands people who done. Politicians are usu-
be okay, because there must migrate. I think there ally good in understanding
are good people who will is good chance to discuss this kind of problem. Who
help”. exchange arrangements. looks after the islands area
But this is a very difficult under the sea is very in-
problem.” teresting. I think many fish
will come there and many
businessmen will like to go
there to get the resource.
But I do not know when.”
G8
Summit 2009

100
Hyatt

G8
Summit 2009

101
Changing Ways Sponsored Article

Record high oil prices in 2007 aside. Companies that stick with carbon efficiency of the Group and
and 2008 prompted businesses to it know that sustainable business its subcontractors by 30 percent by
re-think one of the basic tenets of practices and environmental focus 2020. Within GoGreen, Deutsche
logistics in times of globalization: lead to innovation and a strong mar- Post DHL is doing so by optimiz-
produce in low-cost countries and ket position – a position that can be ing the fleet of vehicles and aircraft,
transport to home mar-kets. Within maintained for the long haul. improving energy efficiency in the
a short period of time and based on buildings it operates in more than
the understanding that high oil prices Focus on Sustainability 220 countries around the world,
are here to stay in the long run, major Given the economic imperative focusing on the development of inno-
international players such as fash- to handle natural resources, such as vative technologies at its DHL Inno-
ion retailer H&M and Sharp began oil, efficiently, as well as a focus on vation Center close to the headquar-
to buck the trend of globalization. sustainability and the environment, ters in Bonn, Germany, and involving
In what seemed a counter-intuitive logistics providers and their custom- its approximately 500,000 employ-
move, the companies actually made ers are examin-ing how ees as well as its customers and
rational, pragmatic calcula- to optimize glob- suppliers.
tions and moved al freight In the area of freight, DHL is also
working to reduce emissions. It is
developing intermodal trans-port,
re-thinking basic logistics concepts,
optimizing its fleet and training work-
ers to be more en-ergy efficient.

Intermodal Transport:
Reducing the Impact on
the Environment
What produces lower emissions
trans- and costs less than air transport but
port. They are is quicker than sending cargo by
produc- not only moving pro- sea? The answer: a combination,
tion closer to duction locations, they’re con- or intermodal transport. Intermodal
their customers sidering how to pack goods more transport is one of the most exciting
while looking for ways compactly, use transport contain- topics in the logistics world. Logis-
to make logistics more e f f i c i e n t . ers more efficiently, buy from local tics providers can help their custom-
They wanted to maximize profits and suppliers to cut down on transport ers save time, money and cut down
cut the carbon emissions for which kilometers and use a variety of on carbon emissions by intelligently
they were responsible, thereby modes of transport. Hermann Ude, combining transport by ship, plane,
boosting their standing with inves- CEO of DHL Global Forwarding and rail or truck - as long as the transfers
tors and customers alike. Freight, said, “In the area of Global are organized efficiently. The Euro-
Even as oil prices have tum- Forwarding, we have been thinking pean Intermodal Research Advisory
bled due to the financial crisis, the about the environment as a top pri- Council (EIRAC) estimates that the
pressure remains on companies to ority for quite some time.” share of intermodal transport in all
do their part for the environment. Deutsche Post DHL, the world’s goods transported in Europe will
Hence, the process of re-thinking largest logistics company, was the increase to 40 percent by 2020.
logistics operations hasn’t slowed or first company in the industry to Deutsche Post DHL has a so-
reversed in 2009. Companies con- come forward and acknowledge its phisticated offering of intermodal
tinue to look for ways to trim logistics responsibility for greenhouse gas transport options. For example,
costs and make logistics processes emissions. As the basis for world- goods destined from China for coun-
more efficient . In fact, sustainability wide trade, the logistics industry tries such as Tanzania, Angola and
analysts say that tough economic contributes considerably to global Nigeria can be sent us-ing the SeAir
times will prove a watershed for cor- carbon emissions. To acknowledge service. Transport time by sea for
porate environmental efforts. Those the fact, assume responsibility and mobile phones, clothing and com-
companies that are seri-ous about begin to change practices in the puters, as well as technical equip-
sustainability and the environment logistics in-dustry, Deutsche Post ment to support the booming tele-
will continue their efforts while orga- DHL has launched an own climate communications sector, would take
G8 nizations that only gave lip service to protection program called “Go- 32 days. By combining air and sea
Summit 2009 them will quickly brush their projects Green”. It focuses on improving the transport by transferring the goods
102
G8
Summit 2009

103
Sponsored Article

in Dubai, the SeAir tariff allows pro- ther changes in logistics practices. training, make a significant contribu-
ducers to cut transport time by 50 For instance, compa-nies may be tion. Considering the total number
percent, reduce costs about the forced to reconsider what was uni- of kilometers that DHL workers
same and reduce emissions. Dubai versally seen as a good business around the world drive each day, fuel-
is already a key shipping center, practice: avoid-ing high inventories. efficient driving practices can make
but capacity will expand greatly as Producing “just in time” means that a big difference overall.
the country builds the Dubai World goods are produced and delivered
Center. It will be the world’s larg- ex-actly to the point when needed, Climate Protection
est logistics platform, setting stan- without storage in between, even Program GoGreen
dards for intermodal transport. The if that meant the transport of goods “Deutsche Post DHL is not think-
region could become the first fully takes place in vehicles that are only ing just about the current financial
integrated logistics network in the half full. Given the outlook for high, crisis. We’re positioning our compa-
world when construction is com- long-term oil prices, the concept of ny for the long term and in a sustain-
pleted in 2015. Deutsche Post DHL just-in-time delivery may take a back able manner. We know that it’s criti-
is expanding its presence in Logis- seat in new logistics strategies. cal for our custom-ers and for the
tics City, a part of the Dubai World Companies may begin to have fuller environment that logistics compa-
Center. warehouses, a development that nies help improve efficient transport.
would mean fewer deliv-eries and Our activi-ties in this area build trust
Cutting Costs and Emis- fewer rush deliveries, and hence a with our customers, employees, in-
sions with Modal Shifts better use of capacity on trucks and vestors and contractors. They know
Deutsche Post DHL has a strong ships. that we think for the long term,” said
track record in developing intermo- Hermann Ude. Launched in April
dal logistics concepts. In 2005, the 2008, the GoGreen pro-gram has
company began running a so-called kicked-off successfully and is con-
block train from Lübeck/Travemünde stantly developed further.
in Germany to and from Verona, Ita- With its GoGreen offering,
ly. It was the first pan-European lo- Deutsche Post DHL gives compa-
gistics company to offer scheduled nies and individuals the chance to
transports with trains pulling trailers lower their carbon footprint. For in-
and conventional freight wagons. stance, business customers sent
The advantages were clear: The some 5.5 million GoGreen packages
shipments by train were more timely and more than100 million climate-
than those by truck, costs were de- neutral letters in Germany in 2008.
creased and carbon emissions were Deutsche Post DHL works con- In the U.K., DHL began to operate
reduced dramatically. More than stantly to optimize loads and routes. the first climate-neutral distribution
130,000 tons of goods are forward- In its DHL Innovation Center, it is de- center in November 2008. It heats
ed by train and not by truck as pre- veloping intelligent transport routing itself by extracting warmth from 8
viously. Emission were reduced by systems that make use of current kilometers of pipes that run through
70 percent, the equivalent to 15,000 traffic data, satellite-supported navi- the building. Even if the ground is
tons of carbon dioxide per year. “Our gation and current orders for pick- frozen, the temperature above it
customers are continuously asking ups and deliveries. It combines this stays constant throughout the year
for environmentally friendly logis- information to reduce unnecessary at 12 to 14 degrees Celsius. Other
tics solutions given rising transport trips and reach maximum possible examples: At the DHL Express hub
costs and limited resources,” said capacity use, thereby saving fuel in Leipzig/Halle, energy efficiency
Hermann Ude. “By further develop- and reducing emissions. Further- was built into the architecture. The
ing these solutions we are meeting more, the company is replacing its building participates in a commu-
our customers needs.” fleet of aircraft and ground vehicles nal power station. The ceiling is
with a focus on fuel efficiency when outfitted with 1,000 square meters
New Logistics Concepts possible. In Sweden, for example, of solar panels, and DHL is able to
Deutsche Post DHL sees it as more than 40 percent of the DHL contribute 100,000 kilowatt hours
part of its job to re-think logistics fleet uses alternative fuels, and the to the public electricity network. In
processes. The company is doing company plans in the next years addition, the company collects rain
so in ways big and small, includ- to replace all the vehicles it owns water for cleaning toilets and wash-
ing the development of intermodal with more environmentally friendly ing planes.
G8 transport. But in the long run, lim- models. But also supposedly “un-
Summit 2009 ited oil resources will require fur- important” measures, such as driver
104
G8
Summit 2009

105
CARING FOR THE CAREGIVERS Sponsored Article

When measuring of the signifi- Soon, such high-profile players workers as funding for established
cant weakness of healthcare infra- on the global health scene as BD posts disappeared. Illustrating the
structures in the sub-Saharan Afri- (Becton, Dickinson and Company) “brain drain” affecting the region’s
can region, few numbers stand so and PEPFAR (the US President’s healthcare sector, only 360 of the
starkly as those quantifying the vast Emergency Plan for AIDS Relief) ral- 1,200 physicians trained in Zim-
undersupply of healthcare workers lied around the concept. babwe during the 1990s were still
present to serve local populations. practicing in the country as of 2001.
These facilities have opened the In the 2002-2003 period, more than

Health care workers chatting in the reception area of the Swazi- Swaziland Wellness Centre receptionist and administrator Faith
land Wellness Centre. Dlamini welcomes a client at the Centre.

The sub-Saharan Africa region, door to improved retention practic- 3,000 nurses trained in South Africa,
for example, bears 75 percent of es, better health, and an increased Zimbabwe, Nigeria, Ghana, Zam-
the world’s HIV/AIDS burden, yet sense of being valued for the Afri- bia and Kenya registered in the UK.
employs only three percent of the can health workers who toil daily on And Ethiopia’s public health sector is
global health workforce. the front lines of the battle against losing nearly ten percent of its phy-
HIV/AIDS, TB and other infectious sicians every year, primarily to other
Global health advocates con- diseases. countries and to the private sector.
cur that this dire shortage of health
workers is the one of the most fun- An under-supply Making matters worse, the
damental health system challenges of health workers relatively few health workers on
facing Africa today. the scene function under hazard-
In Uganda, only 29,000 health ous working conditions and ex-
But there is new hope in the form care professionals serve a popula- perience a high prevalence of in-
of several recently established “Well- tion of 30 million people. And in Ma- fectious disease, especially HIV/
ness Centres for Health Care Work- lawi, according to 2006 data com- AIDS, tuberculosis and malaria.
ers®” in Swaziland, Lesotho and piled by WHO, only 25 nurses and Those who contract an infectious
other sub-Saharan nations with frag- one doctor were available for every disease face the same treatment
ile, understaffed healthcare systems. 100,000 patients. access challenges as the general
population. In addition they are re-
The centres were originally con- Contrast this to the United King- luctant to queue with their patients
ceived by the International Council dom, where every 100,000 patients for services and treatment.
of Nurses in collaboration with its have the opportunity to avail them-
member national nurses associa- selves of the services of 937 nurses “Wellness Centres help keep
tions (NNAs) in sub-Saharan Africa and 256 doctors. health workers healthy, in their jobs
and with support from sister NNAs and in their country, ” says David
in the North. The International Massive under-funding of na- Benton, Chief Executive Officer
Council of Nurses (ICN) is a federa- tional healthcare systems contrib- of ICN. “The Centres also deliver
tion of 132 national nurses associa- utes to a steady exodus of heath the powerful message that health
G8 tions representing the more than 13 workers from sub-Saharan Africa workers are valued and cared
Summit 2009 million nurses working worldwide. and a increase in unemployed health for. By stabilizing the local health-
106
Sponsored Article

care workforce, these centres same facility as one’s patients under- tions through technical training and
play a critical and strategic role in cuts their effectiveness as caregivers. support, expanding access to ap-
strengthening overall healthcare “If healthcare workers were in- propriate diagnostic and other
systems in developing countries.” fected with HIV, they would have medical technologies, and investing
to queue alongside their patients in new products suitable for use in
“The nature of the work done for treatment,” Masitsela Mhlan- these settings.
by health workers--especially those ga, former president of the Swa- Excited by the promise held
who are in touch with patients 24 ziland Nurses Association, told forth by the Wellness Centre for

Nurse Counsellor Selby Sukati is proud to serve his colleague- The immediate family members of health care workers are also
clients at the Swaziland Wellness Centre. welcome at the Centres.

hours a day -- exposes them to The Lancet last year. “So today, Health Care Workers® model first
stress, depression and various in- you are a patient and tomorrow launched by ICN, BD alerted PEP-
fections that, if not attended to im- you are a nurse or clinician. The FAR to the significant potential of
mediately, affects their health gross- health workers felt undermined this innovative, workforce retention
ly,” says Ugandan Commissioner for and they were losing their author- resource. This subsequently led to
Health Services/Nursing Margaret ity and the confidence of their pa- an October, 2008 agreement where-
Chota. “Many health workers are tients. They would be stigmatized.” by PEPFAR joined BD and ICN as a
sick but cannot access healthcare collaborator in support of the Ugan-
easily.” The Wellness Centres emerge da facility.

Sub-Saharan nations are thus To protect the health of health- A number of additional part-
experiencing a large and steady de- care workers and to promote their ners have been working with
cline in the number of already scarce retention, ICN and the Swaziland ICN, BD and PEPFAR to estab-
health workers due to death and Nurses Association created the first lish, develop and sustain Well-
disease, underinvestment and poor Wellness Centre in Swaziland in ness Centres. These include: the
retention practices. 2006. The Lesotho Wellness Centre Stephen Lewis Foundation; the
followed in 2007. BD (Becton, Dick- ministries of health in implement-
Overstressed and under- inson and Company) created a part- ing countries; the national nurses
valued nership with ICN in 2007 to expand associations of Swaziland, Lesotho,
and establish Wellness Centres for Uganda, Malawi, Zambia, Denmark,
Dysfunctional work environ- Health Workers in various countries Sweden and Norway; the World
ments contribute to the problem, in sub-Sahara Africa. Health Organization; the Rose
too. In regular consultation with its Foundation; and Nurses SOAR of
members in sub-Saharan Africa, BD is a leading global medical Georgetown University.
ICN found that a primary “push” fac- technology company that develops,
tor motivating health workers to mi- manufactures and sells medical “Health care workers are the
grate is that they feel overstressed devices, instrument systems and foundation of a health system,” said
and undervalued. reagents. The company’s Global Gary Cohen, BD Executive Vice
Furthermore, nurses and physi- Health Initiative works to strengthen President. “By addressing the fun- G8
cians report that being treated in the healthcare systems in developing na- damental needs of healthcare work- Summit 2009

107
Sponsored Article

A student nurses assists the president of the Lesotho Nurses Association in unveiling the sign at the official opening of the
Lesotho Wellness Centre for Health Care Workers in Maseru, Lesotho.

ers, such as protecting them from agement, and occupational safety in the world. National life expectan-
occupational hazards and providing training and professional training. cy is 32 years.
medical treatment when needed,
Wellness Centers strengthen a The facilities serve as a knowl- The centre’s land and building
country’s capacity to serve patients. edge and training centre for continu- were provided by the Swaziland
“By working in partnership with ous professional development, and Nurses Association. The site – the
ICN and PEPFAR in support of the also provide grief-related services. first of its kind in the region – is ac-
centres, we believe our company Health workers receive training in credited as an official antiretroviral
stands at the forefront of the most fun- disease prevention through needle- therapy (ART) facility.
damental issue affecting health sys- stick injury surveillance and immu-
tems in Africa,” Cohen added. “This nizations for healthcare workers, as Thanks to additional support
kind of social investment delivers well as post-exposure care. through PEPFAR, the Swaziland
unusually far-reaching results. For program also supports mobile out-
example, the Swaziland centre has Centres presently operate in reach to health workers situated in
the capacity to reach the country’s Swaziland and Lesotho. Facilities remote, rural areas.
entire healthcare workforce.” are scheduled to open in Zambia,
Malawi and Uganda this year. The global health community
Managed by nurses and sup- has been highly encouraged by the
ported by inter-sectoral partner- Swaziland: The first Centre results of the Swaziland centre to
ships, centres provide a number of date. According to its most recent
dedicated services for health work- The Swaziland Wellness Centre report, the site has served 6,225
ers and their families, including HIV for Health Care Workers – which health workers, a figure equal to 77
and TB prevention, treatment and opened in September 2006 – is situ- percent of the country’s total health
care in a discreet setting, psycho- ated in a country with a 26 percent workforce.
G8 logical counselling and stress man- HIV prevalence rate, the highest The centre launched a TB
Summit 2009

108
Sponsored Article

Thabsile Dlamini of the Swaziland Nurses Association waves from the entrance
of the Swaziland Wellness Centres for Health Care Workers in downtown Man-
zini, Swaziland’s largest metropolitan area.

and MDR-TB training program for received a variety of critical training “The next day it starts all
nurses, and also provides HIV and including in post-exposure prophy- over again”
TB training for support workers in- laxis, management of TB and MDR-
cluding kitchen, maintenance and TB, resilience for children below the The centres’ initial successes
cleaning personnel. Swaziland also age of 18, grief and loss, and be- reflect the high-functioning team-
started hepatitis B immunizations havior change and communication work among ICN, BD, PEPFAR and
for healthcare workers and has skills. other collaborators.
been conducting pubic education
programming via radio broadcasts. Three more in the pipeline And clearly, numbers and epide-
miological statistics help to inform
As one of the most promising Work on the structure for the us about the vital need for Wellness
outcomes to date, the president of Zambian Wellness Centre for Health Centres, their initial successes, and
the Swaziland Nurses Association Care Workers was completed in the tremendous promise they hold.
reported no cases of nurse migra- November 2008. The site will also
tion during 2007. receive PEPFAR support for mobile But some impacts cannot be
outreach to remote locations. The measured in numbers. The ven-
The Centre in Lesotho centre is scheduled to open later ues should also be viewed as a
this year. place of refuge and sharing for
Situated in a nation with a 23 people engaged in work that is
percent HIV prevalence and 35-year The Malawi Wellness Centre for physically, psychologically and
life expectancy, the Lesotho Well- Health Care Workers is now under emotionally demanding.
ness Centre served its first client in construction and also set to open
November 2007 and hosted a for- towards the end of 2009. “You accompany a patient
mal opening in April 2008. Like the through all the stages from diagno-
Swaziland facility, the centre is ac- And groundbreaking for the sis to death and when they die, you
credited as an official ART site and Ugandan Wellness Centre for Health feel like you have died,” Masitsela
receives PEPFAR funding for mobile Care Workers occurred in October Mhlanga told The Lancet. “Then
outreach to workers situated in out- 2008 with an opening scheduled for the next day it starts all over again
lying areas. the fourth quarter of 2009. PEPFAR with new patients. We all need a
funding will underwrite a significant place to share our experience.”
Since its opening, the centre expansion of the Uganda centre
has served more than 2, 338 health over the next three years. G8
workers. More than 200 have Summit 2009

109
Sponsored Article Muskoka is a great destination,
even if you’re not a world leader
Muskoka gets ready to meet the world
Canada’s Muskoka counting down to 2010
Key global issues and the
opportunity for face-to-face
discussions among the leaders
of the world’s major industrial
nations are the substance of
the G8 Summit.

But after the communiqués


are complete, it is often the
striking settings of these annual
retreats, captured in the requi-
site photo calls, that remain im-
printed on public memory.

LOCATION, LOCATION
Picture the stately white halls of
Heiligendamm, the swaying palms
of Georgia’s Sea Island, Hokkaido’s
serene mountain top, or Gleneagles
rolling greens.

In 2010, yet another postcard


location will join that list of interna-
tional hot spots.

The Government of Canada has


already selected Muskoka, and its
landmark Deerhurst Resort, as the
venue for its fifth turn at hosting the
event, from June 25 to 27 next year

Situated just two hours north of


Toronto, Canada’s largest city, Prime
Minister Stephen Harper dubbed it
“a jewel in the Canadian Shield and
an ideal location.”

This 2,500 square mile region of


1,600 lakes, granite cliffs and maple
forests is no stranger to globetrot-
ting, high profile travelers either.

STEAMSHIPS, TRAINS &


AUTOMOBILES
Once the summer preserve of
wealthy industrialists, Muskoka has
drawn visitors from far away places
like New York, Pittsburg and Phila-
delphia since before Canada be-
came a country.
Sponsored Article

First sportsmen’s clubs, fol-


lowed by families, would arrive by
train and then board steamships
that dropped them off for extended
stays at the region’s growing num-
ber of lakeside inns.

Founded by a transplanted York-


shire man intent on providing “first-
class English service” back in 1896,
Deerhurst itself has evolved from
a rustic 18-room lodge, where on
start-up a week’s accommodations
cost $3.50 per person including
meals, to a modern 400-room hotel
and conference centre, renowned
for offering the most on-site activi-
ties of any resort in Eastern Canada.

OH CANADA
A fixture of what is known na-
tionally as simply “cottage country,”
it has become a low-key icon of Ca-
nadians’ collective love for the rural
weekend retreat.

And much of Deerhurst’s 780


acres are designed with outdoor
relaxation in mind, from mountain
biking and horseback riding trails
to parasailing, paintball and, once
the snow flies, classic northern
pursuits like snowmobiling and dog-
sled rides.

Deerhurst and the region’s hun-


dreds of travel-oriented businesses
are also fortunate to be surrounded
by other touchstones of Canadian
life and culture

This is the very landscape that


fueled the country’s best known art-
ists, the Group of Seven.

The resort’s vibrant hometown


of Huntsville and a string of neigh-
bouring waterside communities
have retained an enviable balance
of main street charm and thriving
industry.

And the region encompasses


nearby Algonquin Provincial Park, an

G8
Summit 2009 Cont. p116

112
Hinckley
Verso paper

G8
Summit 2009

114
G8
Summit 2009

115
Sponsored Article

accessible yet unspoiled Ontario wil-


derness playground that has inspired
Canadian success stories from prime
ministers to musicians and the found-
ers of the internationally fashionable
Roots clothing brand.

TAKING CARE OF
BUSINESS
While Muskoka continues efforts
to diversify, tourism remains a piv-
otal draw. And even play is serious
business at a property that has put
itself on the map by hosting annual
events like the world’s largest pond
hockey championships and an Iron-
man 70.3 race.

Over the past two decades,


Deerhurst has strategically expand-
ed its business beyond peak sum-
mer leisure traffic into a full-service,
40,000 square foot conference facil-
ity known for its on-site teambuilding
program, turn-key themed events
and top-level meetings.

“And the Summit is, in essence,


the biggest, most important small
executive retreat on the planet,”
noted Deerhurst General Manager
Joseph Klein.

GREENS & GARDENS


Another big draw for the corpo-
rate crowd, as well as vacationers,
is Muskoka’s emergence as a major,
top level golf destination.

Deerhurst was the forerunner,


building the highly playable, par-72
Robert Cupp and Tom McBroom
designed Deerhurst Highlands in
1990 to flow harmoniously around
the rugged and craggy landscape.

Today, it has been joined by sev-


en more prime resort courses, not to
mention the area’s many other long-
term favorites including Deerhurst’s
own second 18-hole course, Deer-
hurst Lakeside.

Deerhurst’s kitchens also put its


golf course areas to good use, for-
G8 aging for edible ingredients served in
Summit 2009 the resort’s seasonal dishes.
116
BBC

G8
Summit 2009

117
Sponsored Article

“But somehow when you can


A founding member of the re- get people together to share over “For all of us it’s a summit in
gion’s Savour Muskoka culinary trail, a dinner table the world suddenly more than one sense,” said Klein.
Deerhurst is North America’s only seems a lot smaller,” he laughed.
resort that produces both maple “It takes a massive team effort
syrup and wildflower honey on its across the government, services,
own grounds as well as growing its our communities, the private sector
own supply of herbs, composting all COUNTING THE DAYS and the host venue to complete the
its green food waste and fueling the While the eyes of the world and mountain of preparations and make
resort’s back country Hummer tours the needs of its ultimate VIP guests it easy for the most powerful people
with biodiesel recycled from its used come inherent with plenty of chal- on the planet to relax with each oth-
frying oil. lenges, Deerhurst’s staff is steadily er and get down to business.”
getting ready.
The resort also works with about “Day-by-day we’re looking for-
20 different local food suppliers, Living in a high demand destina- ward to collaborating with everyone,
showcasing, like a dozen more area tion and in close proximity to nature especially our neighbors across the
chefs, small business partnerships seems to encourage resourceful- region. This is a tremendous op-
and what can be successfully pro- ness. portunity to showcase the Muskoka
duced in a relatively short northern region, Ontario and Canada around
growing season. And while there will be lots of the globe.”
famous names and crowds around
It remains to be seen if the Jap- next June, nobody in the various ho- “We are honored, we are proud,
anese Prime Minister will have an tels or neighbouring towns is fazed. we’re busy and we’re delighted.”
opportunity to feast on Deerhurst’s
third shiitake mushroom harvest Perhaps understandable when Before and after June 2010,
grown on recycled oak logs. you consider that Muskoka is al- one thing seems certain, Muskoka
ready a longtime mecca for Holly- will continue to be a great place to
But Deerhurst Resort Executive wood celebs, NHL stars and other meet, or just get away from it all.
Chef Rory Golden sees the Summit notables, since back when Clark
as a singular opportunity for Canada Gable, Ernest Hemingway and Prin- IF YOU GO
and every host nation to showcase cess Juliana of the Netherlands all For destination information visit
its heritage and bounty to the world. summered here. discovermuskoka.ca and huntsvil-
leadventures.com
“Wine, cheese, seafood, our Music superstar Shania Twain
country produces so many great, performed in Deerhurst’s popular
perhaps unexpected, flavours from stage shows before getting her big
coast to coast,” said Golden. break in Nashville.

“We all come from different And every summer theatre and
viewpoints and cultures.” music festivals across the region are G8
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Liat Airlines

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Sponsored Article

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Sponsored Article

Occasionally when cer- Brighton Equity Investments


tain individuals get together
with the same core values and Emerging as one of the most innovative
an obvious synergism exists, companies of the 21st century
companies are formed. This
is what happened in the cre-
ation of Brighton Equity Invest-
ments.
Brighton Equity Invest-
ments and it’s holding com-
pany Brighton Equity Partners
with affiliate companies in au-
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Brighton Equity Investments, charge for time periods measured munity”


has purchased a 50% interest in in years. The bottom line will be this:
Triox Technologies, Inc. (TTI).Triox “The coupling of material sci- cell phones batteries will never
is a research and development ence with the fundamental fre- need to be re-charged. Lap-top
contractor in the area of material quencies of nuclear spin is a computers batteries will be guar-
science and will be co-managed unique insight into ways to pro- anteed for up to six years, fire and
by Brighton Technologies. duce electricity” smoke detectors will never need a
From the natural energy within “The basic physical principle battery change. And the list goes
an atom, TTI has been able to har- of nuclear spin angular momen- on into circuit boards, medical de-
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ity, which will spontaneously and erator technology is based is well
continuously produce an electrical supported in the scientific com-

G8 To learn more go to www.brightonequity.com and www.selfvalet.com


Summit 2009

128 1-800-936-1168
Brighton Parking Systems
( www.selfvalet.com ) has the
potential of being the largest au-
tomated parking company in the
United States.
Brighton Parking Systems re-
duces space required for parking,
lowers constructions costs, and
provides secure and safe parking
while protecting the environment.

Brighton Technologies is also


acquiring a 50% interest in an
Alaska water bottling company.
This facility has the potential of
producing 100,000 liters of pure
glacier water per week and an ad-
ditional 1,000,000 gallons of wa-
ter to be shipped by bulk carrier
to third world countries.
The revolutionary discovery of
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will set Brighton a part from all
other water companies.
To our knowledge we’ll be the
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To learn more go to www.brightonequity.com and www.selfvalet.com G8


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Quinney
Hilton

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Quinney
Country profiles
Canada France Germany Japan

Leader: Leader: Leader: Leader:

Prime Minister President Chancellor Prime Minister


Stephen Harper Nicolas Sarkozy Angela Merkel Taro Aso

Geographical Geographical Geographical Geographical


information: information: information: information:

Area: 9,970,610 km2 Area: 550,000 km2 Area: 357,021 km2 Area: 377,864 km2
Population: 32.6 million Population: 63.0 million Population: 82.3 million Population: 127.7 million
(2006) (2006) (2006) (2006)
Annual population growth Annual population growth Annual population growth Annual population growth
rate: 1.0% (2006) rate: 0.5% (2006) rate: -0.2% (2006) rate: -0.003% (2006)
Capital: Ottawa Capital: Paris Capital: Berlin Capital: Tokyo
Official languages: Official language: Official language: Language:
English and French French German Japanese

Economic data: Economic data: Economic data: Economic data:

GDP (nominal) 2007 [2] GDP (nominal) 2007 [2] GDP (nominal) 2007 [2] GDP (nominal) 2007 [2]
- Total $1,436 billion - Total $2,593 billion - Total $ 3,321 billion - Total $ 4,382 billion
- Pro capita $43,674 - Pro capita $ 42,033 - Pro capita $ 40,400 - Pro capita $ 34,296
- % World GDP 2.6% [4] - % World GDP 4.8 [4] - % World GDP 6.2 [4] - % World GDP 8.0 [4]

GDP (PPP) 2007 [3] GDP (PPP) 2007 [3] GDP (PPP) 2007 [3] GDP (PPP) 2007 [3]
- Total $ 1,270 billion - Total $ 2,068 billion - Total $ 2,812 billion - Total $ 4,292 billion
- Pro capita $38,617 - Pro capita $ 33,508 - Pro capita $ 34.212 - Pro capita $ 33,596
- % World GDP 2%[4] - % World GDP 3.2 [4] - % World GDP 4.3 [4] - % World GDP 6.6 [4]

Form of government: Form of government: Form of government: Form of government:

Federal parliamentary Presidential republic Parliamentary federal Parliamentary


monarchy republic constitutional monarchy

G8s held to date: G8s held to date: G8s held to date: G8s held to date:

Kananaskis Summit (2002) Evian Summit (2003) Heiligendamm Summit Hokkaido Toyako Summit
Halifax Summit (1995) Lyon Summit (1996) (2007) (2008)
Toronto Summit (1988) Summit of the Arch (1989) Cologne Summit (1999) Kyushu-Okinawa Summit
Ottawa Summit (1981) Versailles Summit (1982) Munich Summit (1992) (2000)
Rambouillet Summit Bonn Summit (1985) Tokyo Summit (1993)
(1975) Bonn Summit (1978) Tokyo Summit (1986)
Tokyo Summit (1979)
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Italy United Kingdom United States of Russia
America

Leader: Leader: Leader: Leader:

Prime Minister Prime Minister President President


Silvio Berlusconi Gordon Brown Barack Obama Dmitriy Medvedev
Geographical
Geographical Geographical Geographical information:
information: information: information:
Area: 17,075,200 km2
Area: 301,255 km2 Area: 244,820 km2 Area: 9,629,091 km2 Population: 142.8 million
Population: 58.3 million Population: 60.5 million Population: 299.4 million (2006)
(2006) (2006) (2006) Annual population growth
Annual population growth Annual population growth Annual population growth rate: -0.5% (2006)
rate: 0.3% (2006) rate: 0.5% (2006) rate: 0.9% (2006) Capital: Moscow
Capital: Rome Capital: London Capital: Washington D.C. Official language:
Official language: Official language: Official language: Russian
Italian English English
Economic data:
Economic data: Economic data: Economic data:
GDP (nominal) 2007 [2]
GDP (nominal) 2007 [2] GDP (nominal) 2007 [3] GDP (nominal) 2007 [2] - Total $ 1,290 billion
- Total $ 2,105 billion - Total $ 2,804 billion - Total $ 13,808 billion - Pro capita $ 9,074
- Pro capita $ 35,745 - Pro capita $ 46,098 - Pro capita $ 45,725 - % World GDP 2.4 [4]
- % World GDP 3.9 [4] - % World GDP 5.1 [4] - % World GDP 25.3 [4]
GDP (PPP) 2007 [3]
GDP (PPP) 2007 [3] GDP (PPP) 2007 [2] GDP (PPP) 2007[3] - Total $ 2,090 billion
- Total $ 1,787 billion - Total $ 2,168 billion - Total $ 13,808 billion - Pro capita $ 14,705
- Pro capita $ 30,365 - Pro capita $ 35,634 - Pro capita $ 45,725 - % World GDP 3.2 [4]
- % World GDP 2.8 [4] - % World GDP 3.3 [4] - % World GDP 21.3 [4]

Form of government: Form of government: Form of government: Form of government:

Parliamentary republic Parliamentary constitu- Presidential federal re- Federal Republic


tional monarchy public

G8s held to date: G8s held to date:


G8s held to date: G8s held to date:
Gleneagles Summit (2005) Sea Island, Georgia (2004)
Genoa Summit (2001) Birmingham Summit Denver, Colorado (1997) Saint Petersburg Summit
Naples Summit (1994) (1998) Houston, Texas (1990) (2006)
Venice Summit (1987) London Summit (1991) Williamsburg, Virginia
Venice Summit (1980) London Summit (1984) (1983)
London Summit (1977)

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G5 Countries
Brazil - Total $ 1,099 billion South Africa
Geographical - Pro capita $ 977
information: - % World GDP 2.0

Area: 9,596,960 km2 GDP (PPP) 2007 [3]


Population: 1,331 million - Total $ 2,989 billion
(2008) - Pro capita $ 2,659
Capital: Beijing - % World GDP 4.58
Official language: Manda-
rin Chinese Form of Government:
Leader: Leader:
Economic data: Parliamentary Federal
President, Luiz Inácio Lula Republic President, Jacob Zuma
da Silva GDP (nominal) 2007
- Total $ 3,250 billion Geographical
Geographical - Pro capita $ 2,461 Mexico information:
information: - % World GDP 6.0
Area: 1,221,037 km2
Area: 8,514,876 km2 GDP (PPP) 2007 [3] Population: 47 million
Population: 192 million - Total $ 6,991 billion (2008) [1]
(2008) - Pro capita $ 5,292 Capital: Cape Town (leg-
Capital: Brasilia - % World GDP 10.82 islative), Pretoria (admin-
Official language: istrative), Bloemfontein
Portuguese Form of Government: (judicial)
Official language: Afri-
Economic data: Socialist Republic Leader: kaans, English

GDP (nominal) 2007 President Felipe Calderón Economic data:


- Total $ 1,314 billion India
- Pro capita $ 6,938 Geographical GDP (nominal) 2007
- % World GDP 2.8 information: - Total $ 283 billion
- Pro capita $ 5,906
GDP (PPP) 2007 Area: 1,972,550 km2 - % World GDP 0.5
- Total $ 1,836 billion Population: 108 million
- Pro capita $ 9,695 (2008) GDP (PPP) 2007
- % World GDP 2.8 Capital: Mexico City - Total $ 467 billion
Official language: Spanish - Pro capita $ 9,761
Form of Government: - % World GDP 0.71
Leader: Economic data:
Presidential Federal Form of Government:
Republic Head of Government: GDP (nominal) 2007
Manmohan Singh - Total $ 893 billion Constitutional Republic
- Pro capita $ 8,478
China Geographical - % World GDP 1.9
information:

Area: 3,287,594 km2 GDP (PPP) 2007 [3]


Population: 1,148 million - Total $ 1,346 billion
(2008) [1] - Pro capita $ 12,774
Capital: New Delhi - % World GDP 2.07
Official language: Hindi,
English Form of Government:

Leader: Economic data: Federal Republic

President: Hu Jintao GDP (nominal) 2007


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Nickel institute

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T he 2 0 0 9 G 8 S ummit magazine for V I P ’ s delegates and diplomats