Syria is trapped on a crumbling precipice, and however it might fall will entail significant risks for the United States and for the Syrian people.

The brutal regime of Bashar al-Asad is employing its loyal military forces and sectarian thugs to crush the opposition and reassert its tyranny. Even if Bashar fails, Syria may not be out of the woods: an increasingly likely alternative to the current regime is a bloody civil war similar to what we saw in Lebanon, Bosnia, Congo, and most recently in Iraq. The horrors of such a war might even exceed the brutal reassertion of Asad’s control, and would cause spillover into Syria’s neighbors—Turkey, Iraq, Jordan, Lebanon, and Israel—that could be disastrous for them and for American interests in the Middle East.

But the unrest in Syria, which is now entering its second year, also offers some important opportunities, ones that would come from the fall of the regime of Bashar al-Asad, whose family has ruled the country with an iron grip for over forty years. Syria is Iran’s oldest and most important ally in the Arab world, and the Iranian regime has doubled down on Asad, providing him with financial aid and military support to shore up his regime. Asad’s departure would deal a significant blow to Tehran, further isolating it at a time when it has few friends in the region or the world. In addition, Damascus is steadfast in its hostility toward Israel, and Asad’s regime is also a longtime supporter of terrorist groups like Hizballah and Hamas, and has at times aided al-Qa’ida terrorists and former regime elements in Iraq. The regime’s collapse, therefore, could have significant benefits for the United States and its allies in the region.

Actually ousting Asad, however, will not be easy. Although the Obama administration has for months called for Asad to go, every policy option to remove him is flawed, and some could even make the situation worse—seemingly a recipe for inaction. Doing nothing, however, means standing by while Asad murders his own people, and Syria plunges into civil war and risks becoming a failed state. Already the violence is staggering: as of March 2012, at least 8,000 Syrians have died and thousands more have been arrested and tortured in trying to topple the regime. At the same time, Syria is fragmenting. The Syrian opposition remains divided, and the Free Syrian Army is more a brand than a meaningful, unified force. Al- Qa’ida is urging fighters to join the fray in Syria, and sectarian killings and atrocities are growing. Should the violence continue to intensify, Syria’s neighbors may increase their meddling, and instability could spread, further weakening already-fragile neighbors like Iraq and Lebanon.

So to protect U.S. interests, Asad cannot triumph. But a failed Syria, one wracked by civil war, would be just as bad. Thus, U.S. policy must walk this tightrope, trying to remove Asad, but doing so in a way that keeps Syria an intact state capable of policing its borders and ensuring order at home. At the end of the day, however, removing Asad may not be doable at a price the United States is willing to pay. If so, the U.S. government may be forced to choose between living with a brutal but weakened Asad or getting rid of Asad regardless of the consequences.

This memo lays out six options for the United States to consider to achieve Asad’s overthrow, should it choose to do so:

1. Removing the regime via diplomacy;
2. Coercing the regime via sanctions and diplomatic isolation;
3. Arming the Syrian opposition to overthrow the regime;
4. Engaging in a Libya-like air campaign to help an opposition army gain victory;
5. Invading Syria with U.S.-led forces and toppling the regime directly; and
6. Participating in a multilateral, NATO-led effort to oust Asad and rebuild Syria.

The options are complex, and policymakers will probably try to combine several in an attempt to accentuate the positives and minimize the negatives, which will inevitably be difficult and bring out new complications. But by focusing on discrete approaches, this memo helps expose their relative strengths and weaknesses. For each course of action, this memo describes the strategy inherent to the option and what it would entail in practice. It also assesses the option’s advantages and disadvantages.

This memo does not endorse any particular policy option. Rather, it seeks to explain the risks and benefits of possible courses of action at this moment in time. As conditions change, some options may become more practical or desirable and others less so. The authors mostly agree on the advantages and disadvantages of each approach but weigh the relative rewards and costs differently.

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Volunteer, civil society and governmental delegates from 22 nations gathered in Johannesburg this month for the Southern Africa Conference on Volunteer Action for Development. The conference was co-convened by United Nations Volunteers (UNV) and Volunteer and Service Enquiry Southern Africa (VOSESA), in observance of the 10th anniversary of the United Nations International Year of Volunteers (IYV).

Naheed Haque, deputy executive coordinator for United Nations Volunteers, gave tribute to the late Nobel Laureate Wangari Mathai and her Greenbelt tree planting campaign as the “quintessential volunteer movement.” Haque called for a “new development paradigm that puts voluntarism at the center of community-centered sustainable development.” In this paradigm, human happiness and service to others would be key considerations, in addition to economic indicators and development outcomes including health and climate change.  

The international gathering developed strategies to advance three key priorities for the 15 nations in the Southern Africa Development Community (SADC): combating HIV/ AIDS; engaging the social and economic participation of youth; and promoting regional integration and peace. Research data prepared by Civicus provided information on the rise of voluntary service in Africa, as conferees assessed strategies to advance “five pillars” of effective volunteerism: engaging youth, community involvement, international volunteers, corporate leadership and higher education in service.

VOSESA executive director, Helene Perold, noted that despite centuries of migration across the region, the vision for contemporary regional cooperation between southern African countries has largely been in the minds of heads of states with “little currency at the grassroots level.” Furthermore, it has been driven by the imperative of economic integration with a specific focus on trade. Slow progress has now produced critiques within the region that the strategy for integrating southern African countries cannot succeed on the basis of economic cooperation alone. Perold indicated that collective efforts by a wide range of civic, academic, and governmental actors at the Johannesburg conference could inject the importance of social participation within and between countries as a critical component in fostering regional integration and achieving development outcomes. 

This premise of voluntary action’s unique contribution to regional integration was underscored by Emiliana Tembo, director of Gender and Social Affairs for the Common Market of Eastern and Southern Africa (COMESA). Along with measures promoting free movement of labor and capital to step up trade investment, Tembo stressed the importance of “our interconnectedness as people,” citing Bishop Desmond Tutu’s maxim toward the virtues of “Ubuntu – a person who is open and available to others.”

The 19 nation COMESA block is advancing an African free-trade zone movement from the Cape of South Africa, to Cairo Egypt. The “tripartite” regional groupings of SADC, COMESA and the East Africa Community are at the forefront of this pan-African movement expanding trade and development.

Preliminary research shared at the conference by VOSESA researcher Jacob Mwathi Mati noted the effects of cross border youth volunteer exchange programs in southern and eastern Africa. The research indicates positive outcomes including knowledge, learning and “friendship across borders,” engendered by youth exchange service programs in South Africa, Mozambique, Tanzania and Kenya that were sponsored Canada World Youth and South Africa Trust.   

On the final day of the Johannesburg conference, South Africa service initiatives were assessed in field visits by conferees including loveLife, South Africa’s largest HIV prevention campaign. loveLife utilizes youth volunteer service corps reaching up to 500,000 at risk youths in monthly leadership and peer education programs. “Youth service in South Africa is a channel for the energy of youth, (building) social capital and enabling public innovation,” Programme Director Scott Burnett stated. “Over the years our (service) participants have used their small stipends to climb the social ladder through education and micro-enterprise development.”

Nelly Corbel, senior program coordinator of the John D. Gerhart Center for Philanthropy and Civic Engagement at the American University in Cairo, noted that the Egyptian Arab Spring was “the only movement that cleaned-up after the revolution." On February 11^th, the day after the resignation of former Egyptian President Hosni Mubarak, thousands of Egyptian activists  removed debris from Tahrir Square and engaged in a host of other volunteer clean-up and painting projects. In Corbel's words: “Our entire country is like a big flag now,” from the massive display of national voluntarism in clean-up projects, emblematic of the proliferation of youth social innovation aimed at rebuilding a viable civil society.

At the concluding call-to-action session, Johannesburg conferees unanimously adopted a resolution, which was nominated by participating youth leaders from southern Africa states. The declaration, “Creating an Enabling Environment for Volunteer Action in the Region” notes that “volunteering is universal, inclusive and embraces free will, solidarity, dignity and trust… [creating] a powerful basis for unity, common humanity, peace and development.”  The resolution, contains a number of action-oriented recommendations advancing voluntarism as a “powerful means for transformational change and societal development.” Policy recommendations will be advanced by South African nations and other stakeholders at the forthcoming Rio + 20 deliberations and at a special session of the United Nations General Assembly on December 5, the 10^th anniversary of the International Year of the Volunteer.

       

INTRODUCTION

In December 2011, the United Nations State of the World’s Volunteering Report was released at the U.N. headquarters in New York along with a General Assembly resolution championing the role of volunteer action in peacebuilding and development. The United Nations Volunteers (UNV) Program report states that:

The contribution of volunteerism to development is particularly striking in the context of sustainable livelihoods and value-based notions of wellbeing. Contrary to common perceptions, the income poor are as likely to volunteer as those who are not poor. In doing so, they realize their assets, which include knowledge, skills and social networks, for the benefit of themselves, their families and their communities…Moreover, volunteering can reduce the social exclusion that is often the result of poverty, marginalization and other forms of inequality…There is mounting evidence that volunteer engagement promotes the civic values and social cohesion which mitigate violent conflict at all stages and that it even fosters reconciliation in post-conflict situations...

The “South Africa Conference on Volunteer Action for Development” convened in Johannesburg in October 2011, and the July 2012 “Africa Conference on Volunteer Action for Peace and Development” co-hosted with the Kenya’s Ministry of East African Community, the United Nations and partners in Nairobi give further evidence to the rise of and potential for volunteer service to impact development and conflict. Indeed, in the aftermath of the 2011 Arab Spring, youth volunteer service and empowerment have emerged as a pivotal idea in deliberations aimed at fostering greater regional cohesion and development.

In “Foresight Africa: Top Priorities for the Continent in 2012,” Mwangi S. Kimenyi and Stephen N. Karingi note that: “One of the most important pillars in determining whether the positive prospects for Africa will be realized is success in regional integration… This year is a crucial one for Africa’s regional integration project and actions by governments, regional organizations and the international community will be critical in determining the course of the continent’s development for many years to come.”

The authors note the expected completion of a tripartite regional free trade agreement by 2014 and the expected boost to intra-African trade, resulting in an expanded market of 26 African countries (representing more than half of the region’s economic output and population). At the same time, the declaration from the “South Africa Conference on Volunteer Action for Development” calls on “Governments of Southern African member states and other stakeholders to incorporate volunteering in their deliberations from Rio +20 and to recognize the transformational power as well as economic and social value of volunteering in achieving national development goals and regional priorities, which can be achieved by facilitating the creation of an enabling environment for volunteering to support, protect and empower volunteers.” This speaks directly to the urgent need to factor the social dimension into the regional integration agenda in the different African subregions.

This paper includes examples of the growth of volunteer service as a form of social capital that enhances cohesion and integration across three regions: southern, western, and eastern Africa. It further highlights civil society best practices and policy recommendations for increased volunteering in efforts to ensure positive peace, health, youth skills, assets and employment outcomes.

The importance of volunteering to development has been noted in recent United Nations consultations on the Rio+20 convening on sustainable development and the post-2015 development framework. As the U.N. reviews its Millennium Development Goals (MDG) process, Africa’s regional service initiatives offer vital lessons and strategies to further achieve the MDGs by December 2015, and to chart the way forward on the post-2015 development framework.

But how does volunteerism and civic service play out in sub-Saharan Africa? What are its institutional and non-institutional expressions? What are the benefits or impacts of volunteerism and civic service in society? Our specific purpose here is to provide evidence of the different manifestations and models of service, impact areas and range of issues in three African regions. In responding to these questions, this analysis incorporates data and observations from southern, western and eastern Africa.

In conclusion, we provide further collective insights and recommendations for the roles of the Africa Union and regional economic communities (RECs), youth, the international community, the private sector and civil society aimed at ensuring that volunteerism delivers on its promise and potential for impact on regional integration, youth development and peace.

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Suzy Khimm reports on a proposal from the Bipartisan Policy Center that would establish a framework for reaching a grand bargain on deficit reduction in 2013. In short, the BPC proposes that Congress and the president in the lame duck session would agree to a procedural framework for guiding enactment of major spending and tax reforms in 2013. In enacting the framework, Congress and the president would also avert going over the fiscal cliff. In exchange, Congress and the president would make a small down payment on deficit reduction in the lame duck, and would authorize a legislative “backstop” of entitlement cuts and elimination of tax expenditures that would become law if Congress and the president failed in 2013 to enact tax and spending reforms.

The procedural elements of the BPC’s proposal bear some attention. The BPC’s not-quite-yet-a-catchphrase is “accelerated regular order.” Although it sounds like a nasty procedural disease, it’s akin to the fast-track procedures established in the Congressional Budget Act and in several other statutes. In short, the framework proposed by the BPC would instruct the relevant standing committees in 2013 to suggest to the chamber budget committees entitlement and tax reforms that would sum to $4 trillion dollars in spending cuts and new revenues (assuming extension of the Bush tax cuts). The House and Senate budget panels would each report a grand bargain bill for their chamber’s consideration that would be considered (without amendment) by simple majority vote after twenty hours of debate. Failure to meet the framework’s legislated deadlines would empower the executive branch to impose entitlement savings and to eliminate tax expenditures to meet the framework’s target.

Loyal Monkey Cage readers will recognize that the BPC proposal resembles in many ways the procedural solution adopted in the Deficit Control Act in August of 2011. But there are at least two procedural differences from the 2011 deficit deal. First, rather than a super committee, the BPC envisions “regular order,” meaning that the standing committees—not a special panel hand-selected by party-leaders—would devise the legislative package. Like the August deficit deal, the BPC proposal then offers procedural protection for the package by banning the Senate filibuster and preventing changes on the chamber floors (hence, an accelerated regular order). Second, rather than a meat-axe of sequestration that imposes only spending cuts, the BPC offers a “backstop,” giving what I take to be statutory authority to the executive branch to determine which tax expenditures to eliminate and which entitlement programs to cut back.

These differences from 2011 are subtle, but the BPC believes that they would improve the odds of success compared to the failed Super-committee plus sequestration plan. As a BPC staffer noted:

"One of the reasons the Joint Select Committee on Deficit Reduction failed, in our view, was because only 12 lawmakers were setting policy for the entire Congress,” said Steve Bell, Senior Director of BPC’s Economic Policy Project. “The framework we propose today would both ensure an acceleration of regular budget order in the House and Senate, and it would involve all committees of relevant jurisdiction.”

This is an interesting argument worth considering. Still, I’m not so sure that accelerated regular order would improve the prospects for an agreement.

First, it strikes me that the real barrier to a grand bargain hasn’t been the Senate’s filibuster rule. The super committee was guaranteed a fast-track to passage, but that still didn’t motivate the parties to reach an agreement. The more relevant obstacle in 2011 and 2012 has been the bicameral chasm between a Republican House and a Democratic Senate. To be sure, eliminating the need for a sixty-vote cloture margin would smooth the way towards Senate passage. But we could easily imagine that the 60th senator (in 2013, perhaps a GOP senator like Lisa Murkowski) might be willing to sign onto a deal that would still be too moderate to secure the votes of House Republicans (assuming no change in party control of the two chambers). As we saw over the course of the 112th Congress, House passage required more than the consent of the House median (an ideologically moderate Republican) and more than the support of a majority of the GOP conference. The big deals in the 112th Congress only passed if they could attract the votes of roughly 90% of the House GOP conference. Expedited procedures can protect hard-fought compromises from being unraveled on the chamber floors but by themselves don’t seem sufficient to generate compromise in the first place.

Second, and related, I’m somewhat skeptical that the small size of the super committee precluded a viable agreement. By balancing parties and chambers, the group was (in theory) a microcosm of the full Congress. If true, then delegating to the super committee was more akin to delegating to a mini-Congress. Perhaps the BPC’s idea of allowing the standing committees to generate proposals would broaden legislators’ willingness to buy-in to a final agreement. More likely, I suspect that the framework would produce a House bill perched on the right and a Senate bill left of center (since the filibuster ban would reduce Democrats’ incentives to produce a bipartisan bill). That leaves the bicameral chasm still to be bridged, suggesting that accelerated regular order might not bring Congress all that much closer to a bipartisan agreement in 2013. Consent of party leaders remains critical for an agreement.

Third, the BPC proposal is unclear on the precise nature of the legislative backstop. But would either party agree in advance to the framework if they didn’t know whose ox would be gored by the administration when it exercised its power to reform entitlements and eliminate tax expenditures? Perhaps delegating such authority to the executive branch would allow legislators to avoid voters’ blame, making them more likely to vote for the framework. (That said, it’s somewhat ironic that the BPC’s embrace of accelerated regular order flows from its desire to broaden the set of legislators whose fingerprints are visible on the grand bargain.) Regardless, the prospects for cuts in entitlement programs could lead both parties to favor kicking the can down the road again before it actually explodes.

Fast-track procedures have a decent track record in facilitating congressional action. (Steve Smith and I have extolled their virtues elsewhere.) But the most successful of these episodes involve narrow policy areas (such as closing obsolete military bases) on which substantial bipartisan agreement on a preferred policy outcome is already in place. Expecting a procedural device to do the hard work of securing bipartisan agreement may be asking too much of Congress’s procedural tool kit in a period of divided and split party control.

      

       

Stephen was still a teenager on the north side of St. Louis when his dad, a police officer, was killed during a robbery in their neighborhood. Despite the trauma, Stephen later joined the police force to continue his dad’s legacy and commitment to safe and inclusive neighborhoods. But even before the fatal shooting of Michael Brown in Ferguson in 2014, Stephen (not his real name) yearned to right local wrongs through broader approaches. “The darkest forces weren’t necessarily the ones getting arrested,” he observed. “So I retired from the police force after 22 years, essentially to chase after a different type of perpetrator.” Wanting to focus on policies at multiple levels of government that “were causing the disparities that fueled increasing crime and violence in St. Louis,” Stephen pivoted to civil rights enforcement, tracking policy violations and innovations at a government agency in the St. Louis region.

I met Stephen in February while in St. Louis for a conference his agency organized on HUD’s recently strengthened Affirmatively Furthering Fair Housing (AFFH ) rule, which increases local accountability in promoting residential integration. He wasn’t a speaker at the event, but hearing his story reinforced the importance of combating the deeply entrenched and often invisible causes of segregation.

Recent events and new academic research, including landmark findings by Raj Chetty and colleagues testifying to the benefits of low-poverty neighborhoods for low-income kids, the updated AFFH rule, and the Supreme Court’s disparate impact decision upholding other tools to fight segregation have brought renewed attention to these challenges. Meanwhile, underlying these developments, poverty has failed to decline since the recession and, as recent Brookings research shows, has become more concentrated in neighborhoods of extreme poverty.

How can regional leaders and practitioners respond to these challenges? I was in St. Louis to discuss one part of the solution—advancing more mixed-income neighborhoods. In the Chicago region, our housing and community development-focused firm, BRicK Partners, is collaborating with the Chicago Metropolitan Agency for Planning (CMAP), the Illinois Housing Development Authority (IHDA), and 10 metropolitan Chicago public housing authorities, with support and leadership from HUD, to develop and operate the Regional Housing Initiative (RHI)

RHI is a small, systemic, and potentially scalable “work around” of a very specific set of programs and policies that contribute inadvertently to regional inequities. A flexible and regional pool of resources working across the many traditional public housing authority (PHA) and municipal jurisdictions in the Chicago region, RHI increases quality rental housing in neighborhoods with good jobs, schools, and transit access and provides more housing options to households on Housing Choice Voucher (HCV) waiting lists. Recognizing that the federal formulas allocating HCVs to each individual PHA are not responsive to population, employment, or poverty trends, RHI partners convert and pool a small portion of their HCVs to provide place-based operating subsidies in support of development activity that advances local and regional priorities. RHI supports both opportunity areas with strong markets and quality amenities as well as revitalization areas where public and private sector partners are planning and investing toward that end. In both cases, the bulk of RHI investments are in the suburbs, where the PHAs are smaller and the rental stock more limited. 

RHI has committed over 550 RHI subsidies to nearly 40 mixed-income and supportive housing developments across Chicagoland, supporting more than 2,200 total apartments, over half of which are in opportunity areas. The pooling and transferring of subsidies has allowed RHI to support proposals that local jurisdictions wouldn’t be able to undertake otherwise.

Although a number of innovative programs around the country provide assistance to households moving to opportunity areas, RHI is unique its focus on increasing the supply of housing in opportunity areas regionwide. Its approach is consistent with lessons learned from Brookings’ work on Confronting Suburban Poverty in America: With CMAP as a strong quarterback, RHI has addressed the shortage of rental housing in the suburbs by working across jurisdictions, developing shared priorities, metrics and selection criteria, and by working with IHDA and other stakeholders to leverage greater private sector investment.

This recipe for success is now being deployed in communities beyond Chicago. Baltimore is preparing to advertise for its first round of developer applicants under the leadership of the Baltimore Metropolitan Council, with regionwide PHAs, the State Housing Finance Agency, and a regional housing counselor lined up as supportive partners. In St. Louis, the regional planning and housing finance organizations both attended the February conference where I met Stephen, signaling the potential for greater collaboration for both these entities and the PHAs.

Like many housing advocates and professionals, my colleagues and I at BRicK Partners derive a lot of satisfaction from supporting communities like Baltimore and St. Louis and individuals like Stephen and his peers with replicable best practices. Given today’s political realities, we don’t expect major changes in the federal formulas and statutes behind some of the regional inequities, but “work arounds” such as RHI can still scale up. Nationwide, just a small percentage of HCVs have been converted for such flexible supply-side solutions, but there is reason to be hopeful that this will change. The Regional Mobility Demonstration proposed in the 2017 budget as well as federal public housing voucher legislation passed by the House of Representatives earlier this year are signs that there is real momentum to advance regional strategies that increase access to opportunity for low income residents and families. 

      

EXECUTIVE SUMMARY

Despite a long-standing policy debate, insurance remains the only major financial industry not to be regulated at the federal level, a tradition dating from the 19th century. However, recent financial turmoil has fundamentally changed the terms of this important discussion.

Many contend that as opposed to as many 51 separate regulators, a single federal insurance regulator would: allow insurers to pass substantial savings on to their consumers; preempt market distorting state regulation of rates; attract the expert talent needed to supervise the increasingly complex industry products; improve competition between insurers and non-insurance financial institutions for insurance-like products; better position insurers to compete globally and; make national policy with respect to insurer solvency.
 
However, state insurance regulators and some smaller insurers and insurance agents favor the current system, arguing that: they alone have the interest, expertise, and accessibility to consumers to handle best consumer complaints; insurance rates must be subject to oversight if not outright control to protect consumers; and state regulators have moved aggressively in recent years to improve their solvency regulation.

After weighing these arguments, I conclude in this essay that insurers and agents operating in multiple states should have the option to operate under a more streamlined regulatory system, and in particular to choose between being chartered and thus regulated by individual state regulators, or by a new federal insurance regulator. Congress has considered but not yet enacted legislation establishing this “optional federal charter” system, analogous (although not identical) to the regulatory system that has long governed the U.S. banking industry.

Further, the recent financial crisis and associated bailout of AIG make it is clear that, in addition to the optional federal charter, the government should require federal solvency and consumer protection regulation of the largest insurers that are deemed to be “systemically important financial institutions.” Clearly, if the federal government is potentially needed as a source of debt or equity funds for certain insurers, there is a strong case for having the federal authorities actively oversee the financial safety and soundness of at least those firms that may benefit from federal, and thus national taxpayer, assistance.

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EXECUTIVE SUMMARY

The ongoing financial crisis that began in 2007 has revealed a fundamental weakness in our financial regulatory system: the absence of a regulator charged with overseeing and preventing “systemic risk,” or the risks to the health of the entire financial system posed by the failure of one or more “systemically important financial institutions” (SIFIs).

On March 26, the Treasury Department released the first part of its plan to fix the financial system, which concentrates on reducing systemic risk. The Treasury’s suggestions, if enacted into law, would go a long a way toward achieving this objective. One of the central elements in the plan is to establish a systemic risk regulator. Treasury did not identify which agency or agencies should assume this job. I address this issue, among others, in this essay on systemic risk.

Ideally, all federal financial regulatory activities should be consolidated in two agencies, a financial solvency regulator and a federal consumer protection regulator, with systemic risk responsibilities being assigned to the solvency regulator. As a second-best option, clear systemic risk oversight authority should be assigned to the Fed. Either of these options is superior to creating a new agency or regulating systemic risk through a “college” of existing financial regulators.

The systemic risk regulator (SRR) should supervise all SIFIs, although the nature and details of this supervision should take account of the differences in types of such institutions (banks, large insurers, hedge funds, private equity funds, and financial conglomerates). The SRR should also regularly analyze and report to Congress on the systemic risks confronting the financial system.

There are legitimate concerns about vesting such large responsibilities with any financial regulator. But as long as there are financial institutions whose failure could lead to calamitous financial and economic consequences, and thus invite all-but-certain federal rescue efforts if the threat of failure is real, then some arm of the federal government must oversee systemic risk and do the best it can to make that oversight work.

While the United States should continue to cooperate with governments of other countries in reforming financial systems, notably through the G-20 process, policymakers here should not wait for international agreements to be in place before putting our own financial house in order.

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Editor's note: By any measurable standard, Egypt is more vulnerable to violence and insurgency today than it had been before the Arab Spring. Since the overthrow of former President Mohammed Morsi in 2013, Egypt has seen shocking levels of repression. In Shadi Hamid's August 6 piece in Foreign Policy, Hamid makes the argument that the end result of the Egyptian coup turned out to be a gift to the Islamic State group.

Egyptian President Abdel Fattah al-Sisi came to power on a classic strongman platform. He was no liberal or democrat — and didn’t claim to be — but promised stability and security at a time when most Egyptians had grown exhausted from the uncertainties of the Arab Spring.

Increasingly, U.S. President Barack Obama’s administration seems to accept this premise. In the span of the past week, the United States has delivered eight F-16s to Egypt, relaunched the U.S.-Egypt “strategic dialogue,” and said it would resume “Bright Star,” the joint military exercise suspended after the military coup of July 3, 2013.

Sisi’s raison d’être of security and stability, however, has been undermined with each passing month. By any measurable standard, Egypt is more vulnerable to violence and insurgency today than it had been before. On July 1, as many as 64 soldiers were killed in coordinated attacks by Egypt’s Islamic State affiliate, which calls itself the Province of Sinai. It was the worst death toll in decades, and came just days after the country’s chief prosecutor, Hisham Barakat, was assassinated.

If this is what a “stability-first” approach looks like, Egypt’s future is dark indeed. Of course, it shouldn’t be surprising that the country is growing less secure: Since the overthrow of the Muslim Brotherhood’s Mohamed Morsi on July 3, 2013, Egypt has seen shocking levels of repression. On Aug. 14, 2013, it witnessed the worst mass killing in its modern history, with at least 800 killed in mere hours when security forces violently dispersed two pro-Morsi sit-ins in Cairo. WikiThawra, a project of the Egyptian Center for Economic and Social Rights, estimates that nearly 36,500 people were arrested or detained from the day of the coup through May 15, 2014 — one can only imagine how high that figure has grown a year later.

Since April 2015, meanwhile, at least 163 Egyptians have “disappeared.” As one prisoner recalled of his time at Azouli, a military jail which can’t be seen by civilians: “There is no documentation that says you are there. If you die at Azouli, no one would know.”

This repression, which targets not just Islamists but also secular and liberal opposition activists, makes the resort to violence and terror more likely among at least some Egyptians. There is a growing trend of academic literature pointing to the link between tyranny and terror: In a widely cited 2003 study, for example, academics Alan Krueger and Jitka Maleckova conclude, “The only variable that was consistently associated with the number of terrorists was the Freedom House index of political rights and civil liberties.”

Not all repression is created equal, however. I have argued that low-to-moderate levels of repression do not necessarily have a radicalizing effect. What we are seeing in Egypt today, however, is not your run-of-the-mill authoritarianism but something deeper and more frightening. This is eradication, driven, no less, by popular and populist sentiment.

The end result is that the Egyptian coup turned out to be a gift to the Islamic State. You don’t have to take my word for this: The jihadi group itself clearly thinks it benefited from Morsi’s overthrow. In its first statement after the coup, Islamic State spokesman Abu Mohamed al-Adnani, addressing the Muslim Brotherhood and other mainstream Islamists, says, “You have been exposed in Egypt.” He refers to “democracy” and the Brotherhood as “the two idols [which] have fallen.”

Of course, jihadis had long been making this argument, particularly after the Muslim Brotherhood in Iraq took part in successive U.S.-backed governments after the 2003 Iraq war. Al Qaeda and its ilk gleefully described the Muslim Brotherhood as al-Ikhwan al-Muflisun, or the Bankrupt Brotherhood — a play on its Arabic name. But while al Qaeda may have achieved a measure of sympathy in the Middle East after the Sept. 11 attacks, it was never, and never could be, a real threat to the Brotherhood’s model of political change. It was proficient at staging terrorist attacks but proved unable to carry its successes into the realm of governance. More importantly, al Qaeda’s vision for state building, to the extent that it had one, failed to capture the attention of the world or the imagination of tens of thousands of would-be fighters and fellow travelers.

The same cannot be said about the Islamic State, whose seemingly irrational apocalyptic vision coexists with an unusually pronounced interest in governance. As Yale University’s Andrew March and Mara Revkin laid out in considerable detail, the group has, in fact, developed fairly elaborate institutional structures. In the ideological and theological realms, the Islamic State is not just Baathist brutality in Islamic garb: Rather, it has articulated a policy toward Christian minorities based on a 7th-century pact, an approach to Islamic economic jurisprudence, and even a theory of international relations.

The Islamic State’s unlikely successes in governance undermine a key premise of mainstream Islamists — that because of their gradualism, pragmatism, and “competence,” they, rather than extremists, are better suited to delivering on bread-and-butter issues. In fact, the opposite appeared to be true: Brotherhood-style gradualism and a willingness to work through the democratic process hadn’t worked. One senior Brotherhood official told me, as we sat in a café on the outskirts of Istanbul, “If I look at the list of mistakes the Brotherhood made, this is the biggest one: trying to fix the system from inside gradually.”

Even those who otherwise abhor the Islamic State’s ideology might find themselves susceptible to the argument that violence “worked,” while peaceful participation didn’t. It’s an argument that the Islamic State and its affiliates have repeatedly tried to drive home: In one recruitment video, a young Egyptian man — a judge in one of the Islamic State’s sharia courts — tells the camera that “[Islamist groups that participate in elections] do not possess the military power or the means to defend the gains they have achieved through elections. After they win, they are put in prison, they are killed in the squares, as if they’d never even won … as if they had never campaigned for their candidates.”

Needless to say, this particular pitch wouldn’t have been possible in 2013, when Morsi was still in power, or even in 2012, when the Supreme Council of the Armed Forces was in charge. In short, the Egyptian coup — coupled with the subsequent massacres and never-ending crackdown — has given the arguments made by al Qaeda in the 2000s more power than ever before.

There’s no denying that violence surged following the coup. According to the Tahrir Institute for Middle East Policy, the month of the coup, July 2013, saw a massive uptick in violence, from 13 attacks the month before to 95 attacks. The number of attacks dipped in subsequent months — to 69 in August and 56 in September — but remained significantly higher than before the coup. The pre- and post-coup discrepancy becomes even more obvious when we zoom out further: From July 2013 to May 2015, there were a total of 1,223 attacks over 23 months, an average of 53.2 attacks per month. In the 23 months prior to June 2013, there were a mere 78 attacks, an average of 3.4 attacks per month.

If the coup had nothing or little to do with this, it would stand as one of the more remarkable coincidences in the recent history of Middle East politics. Of course, other variables may have contributed to this surge in violence. The flow of arms from Libya and the Islamic State’s growing international stature, for instance, would have played a destabilizing role no matter what happened with Egypt’s domestic politics. But neither of those developments can account for such a sharp increase in attacks over such a relatively short period of time. Civil conflict in Libya resulted in a more porous border and an increase in arms smuggling as early as 2012, while the Islamic State’s expansion didn’t register in a serious way in the broader region until the summer of 2014, when the group took over the Iraqi city of Mosul.

That leaves us with the coup and what it wrought — namely the Sisi regime’s increasingly repressive measures — as the key event that helped spark the wave of violence. How many people, who otherwise wouldn’t have taken up arms, took up arms because of the coup and the subsequent crackdown? Obviously, there is no way to know for sure. The strength of Ansar Beit al-Maqdis, the group that eventually pledged allegiance to the Islamic State and renamed itself Province of Sinai, is estimated to be in the thousands, so even a tiny increase of, say, 500 militants — representing 0.00055 percent of Egypt’s overall population — would have an outsized effect. Recruitment, however, takes time, so it is unlikely this would have mattered in the days immediately after the coup.

The more likely short-term explanation is that militants viewed the coup as an opportune moment to intensify their activities. They would have done so for two main reasons: First, the Egyptian military — an organization, like any other, with finite resources — was preoccupied with securing major urban centers and clamping down on the Brotherhood. Second, militants likely wagered that they could seize on the wave of Islamist anger and anti-military sentiment.

Ansar Beit al-Maqdis exploited the “narrative” of the local Sinai population, which was already predisposed to distrust state institutions after years of economic neglect and heavy-handed security policies. Not surprisingly, then, residents were more likely to oppose the coup than most other Egyptians. The founders of Ansar Beit al-Maqdis, many of whom hail from North Sinai, knew this as well as anyone. The jihadi group, before pledging allegiance to the Islamic State in November 2014, was almost entirely focused on police and military targets, and would generally couch such attacks as “revenge for the security forces’ suppression of Islamist dissidents.”

Electoral results from 2011 to 2014 offer additional insight into patterns of political support in the Sinai. South Sinai has generally been more pro-regime and less supportive of militant activity, due in part to its economic dependence on the tourism industry. North Sinai, however, is a different story: In each of the four major electoral contests during the transition period, voters there supported Islamist positions and candidates at a significantly higher percentage than the national average. For example, in the 2012 presidential election, 61.5 percent of North Sinai voters cast their ballots for Morsi, compared to 51.7 percent nationally.

While the coup and its brutal aftermath contributed to a sustained increase in monthly attacks — as well as an increase in the lethality of attacks — we still see considerable variation in militant activity. From November 2013 to July 2014, for example, there is a dip, with the monthly average falling to about 22 attacks per month. Yet, even at this lower point, the average number of attacks is still more than 640 percent above the monthly pre-coup average. Starting in January 2015, militant activity jumps up sharply again to 107 attacks, from only nine in December. Again, there are any number of factors that could have played a role in this new surge in violence, but there is only one factor that changes dramatically during this period and that can account for such an unusual uptick in attacks: the military’s hasty creation of a “security zone” along the border with Gaza.

On Oct. 24, 2014, at least 33 Egyptian soldiers were killed, in what was, until then, the deadliest attack on security personnel since the coup. Ansar Beit al-Maqdis claimed responsibility. In response, Egyptian authorities moved to establish a buffer zone, forcing up to 10,000 residents to evacuate their homes, some with only 48 hours notice. The Egyptians military’s narrow security lens and harsh tactics have, in effect, further alienated local residents and helped fuel the insurgency. Shortly after the army began “relocating” villages, the number of attacks increased once again, but this time to previously unheard-of levels. The first five months of 2015 saw an average of 114.6 attacks, with an all-time high of 138 attacks in May.

This is not to say that the creation of a buffer zone transformed people into ideological hard-liners in a matter of weeks, but, rather, that groups like the Islamic State seek to exploit local grievances and depend on local sympathy to stage successful attacks. Zack Gold, a researcher who specializes on the Sinai, wrote that due to the army’s scorched-earth tactics, “whole swaths of North Sinai civilization no longer exist.” One resident of the border town of Rafah, after learning his home would be destroyed, said: “I won’t lie. I’m more afraid of the army than the jihadis. When you’re oppressed, anyone who fights your oppression gets your sympathy.” Another Sinai resident, according to journalist Mohannad Sabry, said that after 90 percent of his village was destroyed in a security campaign, around 40 people took up arms, where through 2013, he knew of only five Ansar Beit al-Maqdis members in the village.

It might be hard to imagine why the Egyptian army would appear so intent on alienating the very citizens whose help it needs to defeat the insurgency. Yet, this appears to be Sisi’s approach to conflict resolution across the country — more state power, more control, and more repression. As the saying goes, when all you have is a hammer, everything looks like a nail. Because authoritarian regimes are forged and sustained by force, they are perhaps the worst candidates to develop a nuanced, holistic counterinsurgency strategy.

Then again, Egypt starts from a different set of assumptions than the United States does. At the most basic level, the Egyptian government fails the first test of counterterrorism, which requires correctly identifying who the actual terrorists are. It continues to act as if the Islamic State and the Muslim Brotherhood are interchangeable — something that no Western intelligence agency takes seriously. As a result, Egypt has made itself a burden. The Egyptian regime is not — and, more importantly, cannot be — a reliable counterterrorism partner. This is no accident of circumstance. Hoping and claiming to fight terrorism, Egypt, however unwittingly, is fueling an insurgency.

      

       

      

      

       

       

       

The Center for Neighborhood Technology, a Chicago-area nonprofit promoting urban sustainability, has a long-run vision of a Chicagoland building energy-efficiency system, which, if started up quickly, would help to effectively deploy relevant stimulus dollars in the near-term. Its activities focus on ramping up existing weatherization and retrofit programs in the short-term to take best advantage of current stimulus dollars while at the same time building the institutional capacity to launch and sustain a new regional initiative aimed at coordinating energy efficiency information, financing, and service delivery for the seven-county region over the long-term.

The Center for Neighborhood Technology (CNT) is using ARRA and other resources to work toward a long-run vision of a sustainable regional energy efficiency system. CNT envisions a centrally-coordinated initiative— either through a new stand-alone entity or a formalized network—to manage the financing, marketing, performance monitoring and certification, information provision, supply chain development, and customer assistance required to efficiently scale up the delivery of retrofit services for all types of buildings across the Chicago region.

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