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2004 Brookings Blum Roundtable: America's Role in the Fight Against Global Poverty


Event Information

July 30-31, 2004

On July 30-31, 2004, more than 40 preeminent international leaders from the public, private, and non-profit sectors came together at the Aspen Institute to discuss "America's Role in the Fight Against Global Poverty" and to set out a forward-looking strategy for the United States.

Co-hosted by Richard C. Blum of Blum Capital Partners LP, the Brookings Institution's Poverty and Global Economy Initiative, the Aspen Institute, and Realizing Rights: The Ethical Globalization Initiative, the group's aim was to explore the dilemma of global poverty from different perspectives, to disaggregate the seemingly intractable problem into more manageable challenges, and to identify key elements of an effective U.S. policy agenda.

With roundtable participants hailing from around the world and representing diverse experiences and approaches, the dialogue was as multifaceted as the challenge of poverty itself. Rather than simply summarize conference proceedings, this essay attempts to weave together the thoughtful exchanges, impassioned calls to action, fresh insights, and innovative ideas that characterized the discussion, and to set the stage for ongoing collaboration in the struggle for human dignity.

Helping to define the issues, share and encourage what works, and build the intellectual framework for such an enterprise will be the guiding mission of the Richard C. Blum Roundtable in the years ahead.


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2005 Brookings Blum Roundtable: The Private Sector in the Fight Against Global Poverty


Event Information

August 3-6, 2005

From August 3 to 6, 2005, fifty preeminent international leaders from the public, private, and nonprofit sectors came together at the Aspen Institute for a roundtable, "The Private Sector in the Fight against Global Poverty."

The roundtable was hosted by Richard C. Blum of Blum Capital Partners and Strobe Talbott and Lael Brainard of the Brookings Institution, with the active support of honorary cochairs Walter Isaacson of the Aspen Institute and Mary Robinson of Realizing Rights: The Ethical Globalization Initiative. By highlighting the power of the market to help achieve social and economic progress in the world's poorest nations, the roundtable's organizers hoped to galvanize the private, public, and nonprofit sectors to move beyond argument and analysis to action. Put simply, as Brookings president Strobe Talbott explained, the roundtable's work was "brainstorming with a purpose."

With experts hailing from around the world and representing diverse sectors and approaches, the dialogue was as multilayered as the challenge of poverty itself. Rather than summarize the conference proceedings, this essay weaves together the thoughtful observations, fresh insights, and innovative ideas that characterized the discussion. A companion volume, Transforming the Development Landscape: The Role of the Private Sector, contains papers by conference participants, providing in-depth analysis of each conference topic.

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2006 Brookings Blum Roundtable: The Tangled Web - The Poverty-Insecurity Nexus


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In a world where borders matter less and where seemingly faraway threats can become immediate problems, the fight against poverty is no longer a matter of just doing the right thing – it is a matter of doing the smart thing to ensure security at home and abroad. As seen across the globe, by exhausting institutions, depleting resources, weakening leaders and crushing hope, extreme poverty fuels instability that often leads to armed conflict and can be a breeding ground for terrorists. The reverse is also true: insecurity stemming from conflict and demographic and environmental challenges makes it harder for leaders, institutions and other stakeholders to address poverty. Simply put, poverty is both a cause of insecurity and a product of it.

To explore this tangled web, in August 2006 the Brookings Blum roundtable discussed the challenges and possible solutions with a diverse group of leaders, including policymakers, business executives and academics, and developed recommendations for change.

2006 Brookings Blum Roundtable: Related Materials

2006 Brookings Blum Roundtable Agenda:
  1. Global Poverty, Conflict and Insecurity
  • Susan Rice, The Brookings Institution, "Global Poverty, Weak States and Insecurity"
  • Edward Miguel, University of California, Berkeley, "Global Poverty, Conflict and Insecurity"
  1. Operating in Insecure Environments
  • Jane Nelson, Harvard University, "Operating in Insecure Environments"
  1. Keynote Address: "Achieving Peace in an Inequitable World"
  • James D. Wolfensohn, Chairman of Citigroup International Advisory Board and Former President of the World Bank
  1. The Role of Leadership in Overcoming Poverty & Security in Africa
    Chaired by: Mary Robinson, Realizing Rights: The Ethical Globalization Initiative
  • Robert Rotberg, Harvard University, "The Role of Leadership in Overcoming Poverty & Insecurity in Africa"

Leadership Presentations:

    • Mohammed Ibrahim, Chairman, Celtel International
    • John Kachamila, Former Minister, Mozambique
    • Ketumile Masire, Former President of Botswana
  1. Resource and Environmental Insecurity
  • Colin Kahl, University of Minnesota, "Demography, Environment and Civil Strife"
  • Anthony Nyong, University of Jos, Nigeria, "Resource and Environmental Security"
  1. Keynote Address
  • Kemal Dervis, Administrator, United Nations Development Programme
  1. Youth and Conflict
  • Henrik Urdal, The International Peace Research Institute, "The Demographics of Political Violence: Youth Bulges, Insecurity and Conflict"
  • Marc Sommers, Tufts University, "Embracing The Margins: Working with Youth Amidst War and Insecurity"
  • Jane Nelson, Harvard University, "Operating in Insecure Environments: The Youth Demographic"
  1. Transformational Diplomacy and the Route to Security
  • Jennifer Windsor, Freedom House, "Breaking the Poverty-Insecurity Nexus: Is Democracy the Answer?"

Presentations:

    • Philip Zelikow, United States Department of State
    • Madeleine Albright, 64th Secretary of State
    • Mary K. Bush, Chairman, HELP Commission
    • Lael Brainard, The Global Economy and Development Program, The Brookings Institution
      
 
 




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Big Data for improved diagnosis of poverty: A case study of Senegal


It is estimated that there are 95 mobile phone subscriptions per 100 inhabitants worldwide, and this boom has not been lost on the developing world, where the number of mobile users has also grown at rocket speed. In fact, in recent years the information communication technology (ICT) revolution has provided opportunities leading to “death of distance,” allowing many obstacles to better livelihoods, especially for those in remote regions, to disappear. Remarkably, though, the huge proportion of poverty-stricken populations in so many of those same regions persists.

How might, then, we think differently on the relationship between these two ideas? Can and how might ICTs act as an engine for eradicating poverty and improving the quality of life in terms of better livelihoods, strong education outcomes, and quality health? Do today's communication technologies hold such potential?

In particular, the mobile phone’s accessibility and use creates and provides us with an unprecedented volume of data on social interactions, mobility, and more. So, we ask: Can this data help us better understand, characterize, and alleviate poverty?

Mapping call data records, mobility, and economic activity

The first step towards alleviating poverty is to generate poverty maps. Currently, poverty maps are created using nationally representative household surveys, which require manpower and time. Such maps are generated at a coarse regional resolution and continue to lag for countries in sub-Saharan Africa compared to the rest of the world.

As call data records (CDRs) allow a view of the communication and mobility patterns of people at an unprecedented scale, we show how this data can be used to create much more detailed poverty maps efficiently and at a finer spatial resolution. Such maps will facilitate improved diagnosis of poverty and will assist public policy planners in initiating appropriate interventions, specifically at the decentralized level, to eradicate human poverty and ensure a higher quality of life.

How can we get such high resolution poverty maps from CDR data?

In order to create these detailed poverty maps, we first define the virtual network of a country as a “who-calls-whom” network. This signifies the macro-level view of connections or social ties between people, dissemination of information or knowledge, or dispersal of services. As calls are placed for a variety of reasons, including request for resources, information dissemination, personal etc., CDRs provide an interesting way to construct a virtual network for Senegal.

We start by quantifying the accessibility of mobile connectivity in Senegal, both spatially and across the population, using the CDR data. This quantification measures the amount of communication across various regions in Senegal. The result is a virtual network for Senegal, which is depicted in Figure 1. The circles in the map correspond to regional capitals, and the edges correspond to volume of mobile communication between them. Thicker edges mean higher volume of communication. Bigger circles mean heavier incoming and outgoing communication for that region.

Figure 1: Virtual network for Senegal with MPI as an overlay

Source: Author’s rendering of the virtual network of Senegal based on the dataset of CDRs provided as a part of D4D Senegal Challenge 2015

Figure 1 also shows the regional poverty index[1] as an overlay. A high poverty index corresponds to very poor regions, which are shown lighter green on the map. It is evident that regions with plenty of strong edges have lower poverty, while most poor regions appear isolated. 

Now, how can we give a more detailed look at the distribution of poverty? Using the virtual network, we extract quantitative metrics indicating the centrality of each region in Senegal. We then calculate centrality measures of all the arrondissements[2] within a region. We then correlate these regional centrality measures with the poverty index to build a regression model. Using the regression model, we predict the poverty index for each arrondissement.

Figure 2 shows the poverty map generated by our model for Senegal at an arrondissement level. It is interesting to see finer disaggregation of poverty to identify pockets of arrondissement, which are most in need of sustained growth. The poorer arrondissements are shown lighter green in color with high values for the poverty index.

Figure 2: Predicted poverty map at the arrondissement level for Senegal with MPI as an overlay

Source: Author’s rendering of the virtual network of Senegal based on the dataset of CDRs provided as a part of D4D Senegal Challenge 2015.

What is next for call data records and other Big Data in relation to eradicating poverty and improving the human development?

This investigation is only the beginning. Since poverty is a complex phenomenon, poverty maps showcasing multiple perspectives, such as ours, provide policymakers with better insights for effective responses for poverty eradication. As noted above, these maps can be used for decomposing information on deprivation of health, education, and living standards—the main indicators of human development index.

Even more particularly, we believe that this Big Data and our models can generate disaggregated poverty maps for Senegal based on gender, the urban/rural gap, or ethnic/social divisions. Such poverty maps will assist in policy planning for inclusive and sustained growth of all sections of society. Our methodology is generic and can be used to study other socio-economic indicators of the society.

Like many uses of Big Data, our model is in its nascent stages. Currently, we are working towards testing our methodology at the ground level in Senegal, so that it can be further updated based on the needs of the people and developmental interventions can be planned. The pilot project will help to "replicate" our methodology in other underdeveloped countries.

In the forthcoming post-2015 development agenda intergovernmental negotiations, the United Nations would like to ensure the “measurability, achievability of the targets” along with identification of 'technically rigorous indicators' for development. It is in this context that Big Data can be extremely helpful in tackling extreme poverty.

Note: This examination was part of the "Data for Development Senegal" Challenge, which focused on how to use Big Data for grass-root development. We took part in the Data Challenge, which was held in conjunction with NetMob 2015 at MIT from April 7-10, 2015. Our team received the National Statistics prize for our project titled, "Virtual Network and Poverty Analysis in Senegal.” This blog reflects the views of the authors only and does not reflect the views of the Africa Growth Initiative.


[1] As a measure of poverty, we have used the Multidimensional Poverty Index (MPI), which is a composite of 10 indicators across the three areas: education (years of schooling, school enrollment), health (malnutrition, child mortality), and living conditions.

[2] Senegal is divided into 14 administrative regions, which are further divided into 123 arrondissements.

Authors

  • Neeti Pokhriyal
  • Wen Dong
  • Venu Govindaraju
     
 
 




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Around the halls: Brookings experts discuss the implications of the US-Taliban agreement

The agreement signed on February 29 in Doha between American and Taliban negotiators lays out a plan for ending the U.S. military presence in Afghanistan, and opens a path for direct intra-Afghan talks on the country's political future. Brookings experts on Afghanistan, the U.S. mission there, and South Asia more broadly analyze the deal and…

       




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From National Responsibility to Response – Part II: Internally Displaced Persons' Housing, Land and Property Rights

Editor's Note: This is the second part of a two piece series on internal displacement that originally appeared online in TerraNullius. The first part is available here.
 
This post continues our discussion of the study entitled "From Responsibility to Response: Assessing National Response to Internal Displacement" recently released by the Brookings-LSE Project on Internal Displacement.

Addressing housing, land, and property (HLP) issues is a key component of national responsibility. Principle 29 of the non-binding but widely accepted Guiding Principles on Internal Displacement emphasizes that competent authorities have a duty to assist IDPs to recover their property and possessions or, when recovery is not possible, to obtain appropriate compensation or another form of just reparation.

The 2005 Framework for National Responsibility – which set the benchmarks we applied in our current study – reaffirms this responsibility (in Benchmark 10, “support durable solutions”) and flags a number of the challenges that often arise, such as IDPs’ lack of formal title or other documentary evidence of land and property ownership; the destruction of any such records due to conflict or natural disaster; and discrimination against women in laws and customs regulating property ownership and inheritance. The Framework for National Responsibility stresses that, “Government authorities should anticipate these problems and address them in line with international human rights standards and in an equitable and non-discriminatory manner.”

The extent to which a government has safeguarded HLP rights, including by assisting IDPs to recover their housing, land, and property thus was among the indicators by which we evaluated the efforts of each of the 15 governments examined in our study. Our findings emphasized the importance of both an adequate legal and policy framework for addressing displacement related HLP issues and the role that bodies charged with adjudication and monitoring can play in ensuring implementation.

HLP Law and Policy Frameworks

One of the most encouraging signs of governments taking seriously their responsibility to address internal displacement has been the development, adoption and implementation in all regions of the world of specific laws and policies that respect the rights of IDPs. Some of the countries surveyed have developed laws, decrees, orders, and policies that protect IDPs’ HLP rights, but these measures are also not without their limits and challenges. A few examples are presented below.

In Colombia, while Law 387 on Internal Displacement (1997) stipulates the right of IDPs to compensation and restitution (Article 10), the government has been hard-pressed to establish measures enabling them to realize that right (see further, below). In Colombia, the constitutional complaint process – the acción de tutela petition procedure – has made the government accountable to IDPs and has influenced government policy toward IDPs, including the policy of allocation of government assistance such as housing subsidies.

In Georgia, the legal framework for IDP protection includes a property restitution law for IDPs from South Ossetia, adopted in 2007, which provided for the establishment of a Commission on Restitution and Compensation; however, this body never became operational and the status of the law is unclear following the August 2008 conflict. The State Strategy on IDPs, also adopted in 2007, protects IDPs against “arbitrary/illegitimate eviction” and sets out a large-scale program for improving the living conditions of IDPs in their place of displacement, all the while reaffirming their right to property restitution.[1]

Displaced families whose homes were destroyed or damaged during the August 2008 received $15,000 from the government to rebuild their homes, although many IDPs have held off reconstruction efforts due to concerns about insecurity. The RSG on IDPs recommended in 2009 the established of a comprehensive mechanism for resolving HLP claims for both the South Ossetia and Abkhazia conflicts. In addition, in 2010, Georgia adopted procedures for vacating and reallocating IDP housing, which, among other things, addresses those cases in which removal of IDPs from a collective center is ordered by the government and may require an eviction, and spells out safeguards for guaranteeing the right of IDPs.[2]

Iraq’s 2005 Constitution protects Iraqis against forced displacement (Article 44(2)). Through its Property Claims Commission, formerly the Commission on the Resolution of Real Property Disputes established by Order No. 2 (2006), Iraq has sought to recover property seized between 1968 and 2003, although significant gaps and challenges remain. For those internally displaced between 2006 and 2008, Prime Ministerial Order 101 (2008) sets out a framework for providing property restitution for registered IDPs with a view to encouraging and facilitating their return to Baghdad governorate, the origin of the majority of post-2006 IDPs and the location of the majority of post-2006 returnees. However, there have been few claims; many IDPs lack the necessary documentation, do not trust government institutions, fear retribution or cannot afford the requisite costs.[3]

In Afghanistan, where national authorities have not yet defined “internally displaced persons,” property and land rights of IDPs are either specifically addressed or generally implicated in substantive and procedural provisions found in a series of executive acts that have been issued since 2001, including the most IDP-specific of them, Presidential Decree No. 104 on Land Distribution for Settlement to Eligible Returnees and Internally Displaced Persons (2005). This decree sets forth a basic framework for distributing government land to both IDPs and returnees as a means of addressing their housing needs. However, IDPs seeking access to land are required to provide their national identity cards (tazkera) and documentation proving their internal displacement status—documentation which they may have lost. Moreover, the decree does not recognize other fundamental rights or needs of the internally displaced; it is valid only in areas of origin; and its implementation has been marred by inefficiency and corruption within the very weak ministry that is tasked with its implementation.

Although the 2006 peace agreement in Nepal  included a commitment to return occupied land and property and to allow for the return of displaced persons, four years after the peace agreement (and three years after the adoption of a national policy), between 50,000 and 70,000 people remained displaced.  Nearly half of the returnees interviewed by the Nepal IDP Working Group reported serious land, housing and property problems.  Of the more than 10,000 claims for compensation for property filed in 2007 only 2,000 families had received support to reconstruct or repair their houses by 2009.  It is widely reported that IDPs with non-Maoist political affiliations have been the least likely to recover land and property.

In Turkey, the government has yet to take full responsibility for displacement caused by its security forces against a largely Kurdish population. In its Law 5233 on Compensation of Damages That Occurred Due to Terror and the Fight against Terror (27 July 2004) and its Return to Village and Rehabilitation Program, displacement is defined in terms of “terrorism” or the “fight” against it. This law does not specifically focus on internal displacement, but it does benefit IDPs among other affected populations. Law 5233 and its related amendments and regulations compensate for “material damages suffered by persons due to terrorist acts or activities undertaken during the fight against terror” between 1987 and 2004. Compensation is provided for three types of damage: loss of property; physical injuries, disabilities, medical treatment, death and funerals; and inability to access property due to measures taken during “the fight against terrorism.”

According to the law, compensation is to be determined by damage assessment commissions (DACs) at the provincial level, with funding provided by the Ministry of the Interior. From 2004 to August 2009, the commissions received just over 360,000 applications. Of those, over 190,000 claims were decided: 120,000 were approved and the claimants awarded compensation; the remaining 70,000 were denied. Around $1.4 billion in compensation was awarded, of which close to $1.1 billion has been paid.[4] The existing legal and policy framework do not adequately address the obstacles to return, including the village guard system, insecurity and the presence of landmines and unexploded ordnance.

In Kenya, the government’s promotion of return included a National Humanitarian Emergency Fund for Mitigation and Resettlement of Victims of 2007 Post-Election Violence which was to meet the full costs of resettlement of IDPs, including reconstruction of basic housing, replacement of household effects and rehabilitation of infrastructure. But in practice, the government has been criticized for promoting return before conditions were safe. The government has also tended to focus on IDPs who own land and to attach durable solutions to land; there is no clear strategy for dealing with landless IDPs, such as squatters and non-farmers.

Awareness among IDPs as to their housing, land, and property rights under existing law – where there is law addressing those rights – is inadequate in many instances. For example, in Turkey, about half of IDPs surveyed in 2006 were not aware of their entitlements under the Return to Village and Rehabilitation Program or the Law on Compensation. [5]

National Human Rights Institutions and Constitutional Courts

In some cases, national human rights institutions (NHRIs) and constitutional courts have a critically important role to play in supporting as well as in holding governments accountable to guarantee the rights of IDPs. In a number of the countries our study examined, the work of NHRIs on internal displacement has included a focus on HLP issues.

In Georgia, for example, the Public Defender has been actively monitoring and reporting on the country-wide housing program begun in 2009 and has raised concerns about evictions of IDPs and the quality of housing in relocation sites. The Public Defender’s office also has undertaken a study on the conditions of the hidden majority of IDPs living in private accommodation rather than in collective centers.

The Afghanistan Independent Human Rights Commission has reported on and raised concerns about the large number of IDPs living in urban slums and informal settlements and about the fact that many IDPs were unable to return to their homes due to disputes over land and property.

Constitutional courts have in some instances played a role in strengthening the national legal framework for protecting the property rights of IDPs. Notably, Colombia’s activist Constitutional Court, in its Decision T-821 in October 2007, ordered the government to ensure respect for IDPs’ right to reparation and property restitution. In January 2009, the Constitutional Court ordered the government to comprehensively address land rights issues and to establish mechanisms to prevent future violations.

Subsequently, the government has sought to ensure these rights by adopting in 2011 the historic and ambitious Law 1448, known as the Victims and Land Restitution Law. In this law, government acknowledges for the first time ever the existence of an internal armed conflict in Colombia, and recognizes as “victims” those individuals or communities whose rights were violated under international humanitarian law or international human rights law. The law regulates reparations for all victims of the armed conflict since 1985 – numbering over 5 million – including through land restitution or compensation for IDPs which is to occur over the next decade.

However, restitution of land does not guarantee returnees’ security and may even endanger people given that land disputes and seizures remain a driving force of displacement. Aiming to prevent further victimization of returnees as a result of insecurity and violence, the government established a new security body, the Integrated Center of Intelligence for Land Restitution (Centro Integrado de Inteligencia para la Restitución de Tierras, also known as CI2-RT) within the Ministry of Defense. Additional participants include the Office of the Vice President, the Ministry of Justice and Interior, the Department of Administrative Security (DAS), Social Action (Acción Social), Incoder, and organizations representing victims of violence. Time will tell how successful the implementation of this ambitious law will be.

In Georgia, the Constitutional Court has also played an important role by recognizing the rights of IDPs to purchase property without losing their IDP status or in any way jeopardizing their right to return.

Conclusion

Securing HLP rights for IDPs is, of course, a key component of finding durable solutions to displacement. The study found that land and property disputes are almost always sources or manifestations of lingering conflict and often an obstacle to IDPs’ free exercise of their right to return.  While some governments have made efforts to provide mechanisms for property restitution or compensation, those mechanisms have rarely been adequate to deal—at least in a timely manner—with the scale and complexity of the problem. National human rights institutions and constitutional courts can play a key role in holding governments accountable for HLP and other rights and freedoms of IDPs.


[1] Government of Georgia, State Strategy for Internally Displaced Persons–Persecuted Persons, Chapter V.

[2] The Standard Operating Procedures for Vacation and Reallocation of IDPs for Durable Housing Solutions (2010) (www.mra.gov.ge)

[3] IDMC, Iraq: Little New Displacement but around 2.8 Million Iraqis Remain Internally Displaced: A Profile of the Internal Displacement Situation, 4 March, 2010, p. 240 (www.internal-displacement.org)

[4] IDMC, Turkey: Need for Continued Improvement in Response to Protracted Displacement: A Profile of the Internal Displacement Situation, 26 October 2009, p. 12, citing correspondence with the government of Turkey, 17 September 2009 (www.internal-displacement.org)

[5] Hacettepe University, Institute of Population Studies, "Findings of the Turkey Migration and Internally Displaced Population Survey," press release, 6 December 2006, cited in IDMC, Turkey: Need for Continued Improvement in Response to Protracted Displacement: A Profile of the Internal Displacement Situation, 26 October 2009, p. 11 (www.internal-displacement.org)

Authors

Publication: TerraNullius
      
 
 




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Webinar: Valuing Black lives and property in America’s Black cities

The deliberate devaluation of Black-majority cities stems from a longstanding legacy of discriminatory policies. The lack of investment in Black homes, family structures, businesses, schools, and voters has had far-reaching, negative economic and social effects. White supremacy and privilege are deeply ingrained into American public policy, and remain pervasive forces that hinder meaningful investment in…

       




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Averting a new Iranian nuclear crisis

Iran’s January 5, 2020 announcement that it no longer considers itself bound by the restrictions on its nuclear program contained in the Joint Comprehensive Plan of Action (JCPOA, aka the “nuclear deal”) raises the specter of the Islamic Republic racing to put in place the infrastructure needed to produce nuclear weapons quickly and the United…

       




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Experts assess the nuclear Non-Proliferation Treaty, 50 years after it went into effect

March 5, 2020 marks the 50th anniversary of the entry into effect of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). Five decades on, is the treaty achieving what was originally envisioned? Where is it succeeding in curbing the spread of nuclear weapons, and where might it be falling short? Four Brookings experts on defense…

       




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COVID-19 uncertainty and the IMF

In the run-up to this week’s Virtual Spring Meetings, the International Monetary Fund (IMF) has stepped up and provided much-needed leadership to assure countries and financial markets that they have the resources and tools necessary to help address the worst global economic crisis since the institution was created in 1945. But, precisely because the IMF…

       




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The help that Puerto Rico needs


After years of irresponsible fiscal management, Puerto Rico has few good options to address its growing debt crisis. But in most tales of bad behavior, there comes a point where continued punishment for past mistakes becomes counterproductive. We're reaching that point on Puerto Rico, and the Barack Obama administration has put forward a sensible new approach. 

(Citigroup, my employer, has various business relationships with Puerto Rico, including serving as underwriter and market maker in various securities. I've had no involvement in those activities, and this column represents my personal views, not those of Citi.)

Puerto Rico's population and its economy are about 10 percent smaller than they were a decade ago. The poverty rate is 45 percent, only about 40 percent of adults are in the labor force, and unemployment is more than 11 percent. 

Given these dire economic indicators, it's not surprising that Puerto Rico has a serious debt problem. At this point, the territory's total liabilities amount to more than 160 percent of the economy, and debt service is projected to be more than a third of government revenue. Over the next five years, the fiscal deficit looks to be $28 billion, and although the Puerto Rican government has proposed aggressive policy actions, these could, at best, only cut the deficit in half. Because the territory's fiscal dynamic is unsustainable, its uninsured debt is selling at discounts of 30 to 70 percent. 

Something has to give. Which brings us to the White House's plan.

The first imperative is to restore economic growth. For this, there are no magic bullets, but one useful strategy is to extend the Earned Income Tax Credit to Puerto Rico. The EITC is one of the most powerful, market-friendly mechanisms for encouraging labor force participation, and its absence in Puerto Rico makes no sense.

The Obama administration also proposes removing an anomaly in the Medicaid system. If Medicaid treated Puerto Rico in the same way as it does the 50 states, the federal government would pay for an estimated 83 percent of its Medicaid costs. But because Medicaid payments to the territory are capped, the federal government has generally paid only 15 to 20 percent. In addition, temporary Medicaid payments enacted as part of the Affordable Care Act are almost exhausted, posing a near-term threat to Puerto Rico's Medicaid program.

Establishing an EITC in Puerto Rico and adjusting the share of Medicaid payments paid by the federal government make sense from a fairness perspective. The EITC piece would encourage work, and the Medicaid component would attenuate fiscal pressure on the island. These steps would, though, come at a cost to the federal budget, probably in the billions of dollars per year. The administration should clarify both the amounts involved and how they would be financed. 

The island's fiscal governance also needs to be strengthened. Its accounting systems have been shoddy, and revenue estimates have been overly rosy. A period of external oversight is appropriate, to improve transparency and budgetary rigor. 

Finally, there's the hard question of what to do about the existing overhang of debt. Write-offs are inevitable; the only question is how to do them in a structured and timely way. We have bankruptcy laws precisely to handle this sort of situation, which would otherwise involve overlapping negotiations with multiple creditors (Puerto Rico has 18 different debt issuers and 20 creditor committees) and probably extended lawsuits. 

At the very least, Congress should extend Chapter 9 bankruptcy laws to Puerto Rico's cities and public corporations. Municipalities in the states enjoy this protection, and there's no reason to treat cities in Puerto Rico differently than those in Florida or Texas. This step would cover about a third of the territory's debt. 

The more controversial question, though, is whether Puerto Rico's government should also have access to bankruptcy protection. State governments do not, but the administration proposes that territories such as Puerto Rico should. 

Bankruptcy would not necessarily mean that less debt would be repaid. So it is not clear that the traditional argument against bankruptcy protection -- that it would raise future borrowing costs -- carries much force. Negotiated write-offs and default would have largely the same effect, but would probably take longer and be messier. Among the options left, the administration's is the least bad. 

The plan requires legislation, and in today's polarized Congress, that's a daunting prospect. But as former Treasury Secretary Tim Geithner once emphasized, in a crisis, "plan beats no plan." the administration has one. Its congressional opponents don't.

Editor's Note: this op-ed originally appeared on Bloomberg View.

Authors

Publication: Bloomberg View
      
 
 




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Ferguson, Mo. Emblematic of Growing Suburban Poverty


Nearly a week after the death of 18 year-old Michael Brown in Ferguson, Mo., protests continue in the 21,000-person suburban community on St. Louis’ north side and around the nation.

Amid the social media and news coverage of the community’s response to the police shooting of the unarmed teenager, a picture of Ferguson and its history has emerged.

The New York Times and others have described the deep-seated racial tensions and inequalities that have long plagued the St. Louis region, as well as the dramatic demographic transformation of Ferguson from a largely white suburban enclave (it was 85 percent white as recently as 1980) to a predominantly black community (it was 67 percent black by 2008-2012).

But Ferguson has also been home to dramatic economic changes in recent years. The city’s unemployment rate rose from roughly 7 percent in 2000 to over 13 percent in 2010-12. For those residents who were employed, inflation-adjusted average earnings fell by one-third. The number of households using federal Housing Choice Vouchers climbed from roughly 300 in 2000 to more than 800 by the end of the decade.

Amid these changes, poverty skyrocketed. Between 2000 and 2010-2012, Ferguson’s poor population doubled. By the end of that period, roughly one in four residents lived below the federal poverty line ($23,492 for a family of four in 2012), and 44 percent fell below twice that level.

These changes affected neighborhoods throughout Ferguson. At the start of the 2000s, the five census tracts that fall within Ferguson’s border registered poverty rates ranging between 4 and 16 percent. However, by 2008-2012 almost all of Ferguson’s neighborhoods had poverty rates at or above the 20 percent threshold at which the negative effects of concentrated poverty begin to emerge. (One Ferguson tract had a poverty rate of 13.1 percent in 2008-2012, while the remaining tracts fell between 19.8 and 33.3 percent.)

Census Tract-Level Poverty Rates in St. Louis County, 2000

Census Tract-Level Poverty Rates in St. Louis County, 2008-2012

As dramatic as the growth in economic disadvantage has been in this community, Ferguson is not alone.

Within the nation’s 100 largest metro areas, the number of suburban neighborhoods where more than 20 percent of residents live below the federal poverty line more than doubled between 2000 and 2008-2012. Almost every major metro area saw suburban poverty not only grow during the 2000s but also become more concentrated in high-poverty neighborhoods. By 2008-2012, 38 percent of poor residents in the suburbs lived in neighborhoods with poverty rates of 20 percent or higher. For poor black residents in those communities, the figure was 53 percent.

Like Ferguson, many of these changing suburban communities are home to out-of-step power structures, where the leadership class, including the police force, does not reflect the rapid demographic changes that have reshaped these places.

Suburban areas with growing poverty are also frequently characterized by many small, fragmented municipalities; Ferguson is just one of 91 jurisdictions in St. Louis County. This often translates into inadequate resources and capacity to respond to growing needs and can complicate efforts to connect residents with economic opportunities that offer a path out of poverty.

And as concentrated poverty climbs in communities like Ferguson, they find themselves especially ill-equipped to deal with impacts such as poorer education and health outcomes, and higher crime rates. In an article for Salon, Brittney Cooper writes about the outpouring of anger from the community, “Violence is the effect, not the cause of the concentrated poverty that locks that many poor people up together with no conceivable way out and no productive way to channel their rage at having an existence that is adjacent to the American dream.” 

None of this means that there are 1,000 Fergusons-in-waiting, but it should underscore the fact that there are a growing number of communities across the country facing similar, if quieter, deep challenges every day.

A previous version of this post misstated the Ferguson unemployment rate in 2000. It has since been corrected.

Image Source: Mario Anzuoni / Reuters
      
 
 




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New episode of Intersections podcast explores technology's role in ending global poverty and expanding education


Extreme poverty around the world has decreased from around 2 billion people in 1990 living under $2 per day to 700 million today. Further, nine out of 10 children are now enrolled in primary schools, an increase over the last 15 years. Progress in both areas since 2000 has been part of the United Nations Millennium Development Goals, which set targets for reducing extreme poverty in eight areas, and which were the guiding principles for global development from 2000 to 2015. Today, the global community, through the UN, has adopted 17 Sustainable Development Goals to continue these poverty reduction efforts. 

In this new episode of Intersections podcast, host Adrianna Pita engages Brookings scholars Laurence Chandy and Rebecca Winthrop in a discussion of how digital technologies can be harnessed to bring poverty reduction and education to the most marginalized populations.

Listen:

Chandy, a fellow in the Global Economy and Development program at Brookings, says that the trends in getting people digitally connected "are progressing at such speed that they’re starting to reach some of the poorest people in the world. Digital technology is changing what it means to be poor because it’s bringing poor people out of the margins.”

Winthrop, a senior fellow and director of the Center for Universal Education at Brookings, says that "I think [education] access is crucial. And I do think that’s almost the first wave because without it we could work on all the ed tech—fabulous apps, great language translated content—but if you do not have the access it’s not going to reach the most marginalized."

Listen to this episode above; subscribe on iTunes; and find more episodes on our website.

Chandy was a guest on the Brookings Cafeteria Podcast in 2013; Winthrop has been a guest on the Cafeteria a few times to discuss global education topics, including: access plus education; investing in girls' education; and getting millions learning in the developing world.

Authors

  • Fred Dews
Image Source: © Beawiharta Beawiharta / Reute
      
 
 




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A promising alternative to subsidized lunch receipt as a measure of student poverty

A central component of federal education law for more than 15 years is that states must report student achievement for every school both overall and for subgroups of students, including those from economically disadvantaged families. Several states are leading the way in developing and using innovative methods for identifying disadvantaged students, and other states would…

       




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The persistence of poverty in the Arab world


2016 ushered in the revamped UN Sustainable Development Goals (SDGs), which built on the Millennium Development Goals (MDGs), adopted in 2000. Poverty eradication is the number one developmental goal of both the MDGs and SDGs.

Over the past two decades, global efforts have been successful as the number of people living in poverty declined by more than half, from more than 1.9 billion in 1990 to 836 million in 2015. Despite such progress, the Arab world continues to lag in its efforts to combat poverty.

In fact, according to the UNDP, between 2010 and 2012, the percentage of the population in the region making less than $1.25 a day increased (PDF) from 4.1 percent to 7.4 percent. Previously, countries in the region had made progress in reducing poverty, but high levels of political unrest had reversed many of these improvements.

Poverty and conflict: A direct correlation

The persistence of conflict in Syria, Iraq, and Yemen remains one of the main drivers of poverty regionally. In Syria, after five years of civil war it is estimated that 80 percent of the population lives in poverty, and life expectancy has been cut by 20 years.

Almost a decade after the US-led invasion in 2003, poverty rates are on the rise in Iraq with statistics from the World Bank showing that 28 percent of Iraqi families live under the poverty line. The mass displacement from the Islamic State of Iraq and the Levant (ISIL) controlled areas, the decline in global oil prices and higher unemployment rates has meant that despite its oil wealth, the Iraqi government has failed miserably in addressing the poverty rate in the country.

Yemen's poverty rate has increased from 42 percent of the population in 2009, to an even more alarming 54.5 percent in 2012.

Despite an initial wave of optimism after the 2011 Arab uprisings, countries in North Africa continue to face economic challenges that have seen poverty rates increase in many areas.

In Egypt, the Arab world's most populous country, five years of political upheaval have taken a toll on the economy. Increased unemployment, lower tourist arrivals, dwindling foreign currency reserves, and a weaker Egyptian pound has meant that 26 percent of Egypt's 90 million people live under the poverty line.

Despite a relatively successful and ongoing political transition in Tunisia, one in every six Tunisians lives below the poverty line as well. Tunisia is one of the highest contributors of ISIL fighters per capita, and Tunisian leaders continue to make a direct correlation between poverty and terrorism.

In the Palestinian territories, a lack of employment opportunities due to restrictions imposed by the Israeli occupation continues to drive rising levels of poverty (PDF). Nearly two years after the war in Gaza, reconstruction efforts have slowed to a crawl. Such efforts promised employment for thousands of Palestinians; however, the slow trickle of foreign donations and a deficiency of construction materials indicate that the situation will not improve any time soon.

Although the outlook for the West Bank appears less grim than in Gaza, high levels of poverty persist as many Palestinians hold jobs that pay a meager wage. This shortage of suitable employment forces many Palestinians to seek employment from companies operating in settlements on occupied Palestinian territory.

Even with some Palestinians performing these jobs out of necessity, per capita income in the West Bank continues to decline. In Gaza, the situation is even worse with per capita income 31 percent lower than in 1994.

One step forward, two steps back

The SDGs provide an ambitious blue print for global development that includes a focus on education, the environment, women's rights, sustainable water, and many other critical areas. While all of these issues are of importance to the region, it will become increasingly problematic to progress these goals without a renewed emphasis on poverty eradication.

Countries currently in conflict pose the greatest challenge to poverty eradication efforts, as participants in these conflicts have pushed aside humanitarian concerns in the quest for victory. The international community should make preparations for post-war reconstruction in Syria and Yemen, while also remaining wary of incomplete political settlements that raise the prospect for the resumption of hostilities in the future.

Even though in Palestine it is unlikely that the Israeli occupation will end anytime soon, however Fatah and Hamas should work toward a reconciliation to improve the system of governance in the territories. This will provide Palestinians with a united front to tackle the challenges posed by the occupation and ease the suffering felt in both Gaza and the West Bank.

Arab countries must recognise that absolute poverty is only one dimension of the problem and that redistributive policies can only go as far to address the issue. The uprisings have shown that Arab youth not only protested against economic inequality, but also against marginalisation and political disenfranchisement. Any renewed push for more economic opportunities must also provide Arab youth with a chance to shape their future.

Lower oil prices will likely affect the level of aid wealthier Gulf Cooperation Council countries give to poorer countries in the region. Nonetheless, such aid should not simply dry up. The Saudi-led coalition has destroyed a large portion of the Yemeni infrastructure, so the Kingdom and members of its coalition should bear a large part of the reconstruction effort.

Arab governments should understand that poverty also has a security and stability dimension. The 2011 uprisings have shown that Arab societies have the ability to challenge incompetent governance and corruption.

Food security remains a huge challenge for a region that imports much of its key food staples. Should poverty and food security issues not be addressed, any future protest wave may constitute a "revolution of the hungry", that is likely to be more violent than the protest wave of 2011.

This article originally appeared in Al Jazeera English.

Authors

Publication: Al Jazeera English
Image Source: © ABDULJABBAR ZEYAD / Reuters
     
 
 




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How Israel’s Jewishness is overtaking its democracy


Editors’ Note: According to a new Pew poll, half of Israeli Jews have come to seek not only a Jewish majority but even Jewish exclusivity in Israel. That doesn’t bode well for Arab-Jewish coexistence in Israel, writes Shibley Telhami—even aside from what happens in the West Bank and Gaza. This post originally appeared on the Monkey Cage blog.

When U.S. leaders and commentators warn that the absence of a two-state solution to the Israeli-Palestinian conflict will make it impossible for Israel to be both a Jewish and democratic state, they generally mean that a Jewish democracy requires a Jewish majority; if Israel encompasses the West Bank and Gaza, Arabs will become a majority. What they may not have realized is that, in the meantime, half of Israeli Jews have come to seek not only a Jewish majority but even Jewish exclusivity.

That is one of the most troubling findings of a new Pew poll in Israel. And it doesn’t bode well for Arab-Jewish coexistence in Israel—even aside from what happens in the West Bank and Gaza.

This major study was conducted from October 14, 2014, to May 21, 2015, among 5,601 Israeli adults ages 18 and older. (Disclosure: I served as an adviser to the project). It found that 48 percent of all Israeli Jews agree with the statement “Arabs should be expelled or transferred from Israel,” while 46 percent disagreed. Even more troubling, the majority of every non-secular Jewish group, including 71 percent of Datim (modern orthodox Jews) agreed with the statement.

While age is not much of a factor when it comes to attitudes toward expelling Arabs from Israel, younger Israelis are slightly more likely to agree with the statement that Arabs should be expelled than older Israelis.

These attitudes are anchored in a broader view of identity and of the nature of the Israeli state. Overall, only about a third of Israeli Jews say their Israeli identity takes precedence over their Jewish identity, with the overwhelming majority of every group, except for secular Jews, saying their Jewishness comes first.

This view has consequences for citizen rights. Not surprisingly, the overwhelming majority of all Jewish Israelis (98 percent) feel that Jews around the world have a birthright to make aliya (immigration to Israel with automatic Israeli citizenship). But what is striking is that 79 percent of all Jews, including 69 percent of Hilonim (secular Jews) say that Jews deserve “preferential treatment” in Israel—so much for the notion of democracy with full equal rights for all citizens.

These attitudes spell trouble for Arab citizens of Israel who constitute 20 percent of Israel’s citizens. It’s true that attitudes are dynamic; they are partly a function of Jewish-Arab relations within Israel itself, but also outside, especially within the broader Palestinian-Israeli conflict. Like their Jewish counterparts, Arab citizens of Israel (mostly Muslim, but also including Christians and Druze), identify themselves with their ethnicity (Palestinian or Arab) or religion above their Israeli citizenship. And these ethnic/religious identities intensify when conflict between Israel and the Palestinians in the West Bank and Gaza intensifies. There is no way to fully divorce the broader Palestinian-Israeli conflict from Arab-Jewish relations within Israel.

In recent years, this latter linkage has become central for two reasons: loss of hope for a two-state solution, and the rise of social media that has displayed extremist attitudes that used to be limited to private space. In the era of Facebook and Twitter, Arab and Jewish citizens post attitudes that deeply offend the other: An Arab expresses joy at the death of Israeli soldiers killed by Palestinians, while a Jew posts a sign reading “death to Arabs.” Hardly the stuff of co-existence. Leave it to opportunist politicians, extremists and incitement to do the rest.

But there is also an American responsibility—not so much with regard to failure of diplomatic efforts, but with the very positing of the nature of the conflict itself, and the nature of the state of Israel. As President Obama considers steps he could undertake on the Israeli-Palestinian conflict before leaving office, he may contemplate addressing what has become a distorting and detrimental discourse that serves to give a pass to non-democratic attitudes, and diversion of attention from core problems.

First, there is something wrong with positing the possibility of Arabs as constituting a demographic problem for Israel. It legitimizes the privileging of Jewishness over democracy. It also distorts the reason why Israel is obligated to end occupation of the West Bank and Gaza; it has nothing to do with the character of Israel as such, but with international law and United Nations resolutions.

Second, while states can define themselves as they wish (and are accepted by the international community accordingly), the American embrace of the “Jewishness” of Israel, cannot be decoupled from the Palestinian-Israeli context, or from the overarching American demand that all states must be for all their citizens equally.

In part, this is based on the notion that the UN General Assembly (Resolution 181) recommended in 1947 dividing mandatory Palestine into an “Arab” and a “Jewish” State. In part, it’s based on the notion that the Palestinian-Israeli conflict is a political conflict that can be resolved through two states, one manifesting the self-determination of Jews as a people, and one manifesting the right of self-determination of Palestinians as a people. The two were bound together. An embrace of a Jewish state that excludes a Palestinian state defeats the principle.

If two states become impossible, America chooses democracy over Jewishness. In fact, this has been consistently reflected in American public attitudes across the political spectrum, most recently in this November 2015poll; in the absence of a two-state solution, 72 percent of Americans would want a democratic Israel, even if it meant that Israel ceases to be a Jewish state with a Jewish majority.

More centrally, even with two states—one manifesting Jewish self determination and one Palestinian self-determination—an overarching, principled American position takes precedence: If Israel is a state of the Jewish people, it must also be above all a state of all its citizens equally; (and if Palestine is to be a state of the Palestinian people, it must also be a state of all its citizens equally). This democratic principle, highlighted front and center in a reformulated American position, can help avoid legitimizing undemocratic attitudes in the name of Jewish identity.

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The prince of counterterrorism: The story of Washington’s favorite Saudi, Muhammad bin Nayef

The kingdom of Saudi Arabia, America’s oldest ally in the Middle East, is on the verge of a historic generational change in leadership. King Salman bin Abdul-Aziz Al Saud, 79, who ascended to the throne in January, following the death of King Abdullah, will be the last of the generation of leaders who built the…

       




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Anwar al-Awlaki, Yemen, and American counterterrorism policy


Event Information

September 17, 2015
10:00 AM - 11:30 AM EDT

Falk Auditorium
Brookings Institution
1775 Massachusetts Avenue, N.W.
Washington, DC 20036

On September 30, 2011, the U.S.-born radical Islamic cleric, Anwar al-Awlaki, was killed by an American drone strike in Yemen, marking the first extra-judicial killing by the United States government against a U.S. citizen. Placed at the top of a CIA kill list in 2010 by the Obama administration, al-Awlaki was known for his intimate involvement in multiple al-Qaida terrorist plots against U.S. citizens, including the 2009 Christmas Day airline bombing attempt in Detroit and the 2010 plot to blow up U.S.-bound cargo planes. His calls for violent jihad remain prominent on the Internet, and his influence has turned up in many cases since his death, including the Boston Marathon bombing of 2013 and the Charlie Hebdo shootings in Paris early this year. In a new book, “Objective Troy: A Terrorist, A President, and the Rise of the Drone” (Crown, 2015), The New York Times national security reporter Scott Shane, drawing on in-depth field research in Yemen and interviews with U.S. government officials, charts the intimate details of the life and death of al-Awlaki, including his radicalization, his recruiting efforts for al-Qaida in the Arabian Peninsula, and the use of drone strikes by the United States to prosecute its counterterrorism goals.

On September 17, the Intelligence Project hosted Shane to examine the roles played by al-Awlaki in al-Qaida plots against the United States, al-Awlaki’s continued influence on terrorism, and the current state of al-Qaida today. Brookings Senior Fellow Bruce Riedel, director of the Intelligence Project, provided introductory remarks and moderated the discussion.

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How do we end energy poverty?

Worldwide, over 1.2 billion people lack access to electricity. On May 24, the Brookings Institution hosted Ted Nordhaus and Daniel Kammen for a debate on solutions for addressing energy poverty moderated by ClimateWire Editor Lisa Friedman.

      
 
 




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Turning back the Poverty Clock: How will COVID-19 impact the world’s poorest people?

The release of the IMF’s World Economic Outlook provides an initial country-by-country assessment of what might happen to the world economy in 2020 and 2021. Using the methods described in the World Poverty Clock, we ask what will happen to the number of poor people in the world—those living in households with less than $1.90…

       




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Turning back the Poverty Clock: How will COVID-19 impact the world’s poorest people?

The release of the IMF’s World Economic Outlook provides an initial country-by-country assessment of what might happen to the world economy in 2020 and 2021. Using the methods described in the World Poverty Clock, we ask what will happen to the number of poor people in the world—those living in households with less than $1.90…

       




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Around the halls: Brookings experts on the Middle East react to the White House’s peace plan

On January 28 at the White House, President Trump unveiled his plan for Middle East peace alongside Israeli Prime Minister Benjanim Netanyahu. Below, Brookings experts on the peace process and the region more broadly offer their initial takes on the announcement. Natan Sachs (@natansachs), Director of the Center for Middle East Policy: This is a…

       




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Around the halls: Brookings experts discuss the implications of the US-Taliban agreement

The agreement signed on February 29 in Doha between American and Taliban negotiators lays out a plan for ending the U.S. military presence in Afghanistan, and opens a path for direct intra-Afghan talks on the country's political future. Brookings experts on Afghanistan, the U.S. mission there, and South Asia more broadly analyze the deal and…

       




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Turning back the Poverty Clock: How will COVID-19 impact the world’s poorest people?

The release of the IMF’s World Economic Outlook provides an initial country-by-country assessment of what might happen to the world economy in 2020 and 2021. Using the methods described in the World Poverty Clock, we ask what will happen to the number of poor people in the world—those living in households with less than $1.90…

       




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@ Brookings Podcast: Causes of and Solutions for U.S. Poverty's Continued Rise


Year after year, federal spending on poverty programs has been going up, but we still see more and more people who have no margin to guard against unexpected expenses or job loss. At the same time, for different reasons, Americans who are not impoverished have seen their wealth decline sharply. Expert Ron Haskins, co-director of the Center on Children and Families, says the problems are growing deeper, despite increased federal spending on programs to assist the poor. Haskins says everyone must sacrifice, but also says, that people in general, who finish high school, get a job, and get married and delay having children until age 21 are better off.

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The Political Economy of Poverty Reduction

Executive Summary

Large-scale antipoverty programs have achieved significant and positive results in many developing countries around the world in the past decade. This paper explores the challenges of “scaling up” small-scale antipoverty programs—taken here to mean the processes by which successful efforts to raise the incomes of the poorest citizens in developing counties are expanded in coverage over time and across geography. In particular, I advocate supplementing approaches that highlight resource and program constraints with an expanded focus on the political dynamics involved in expanding pro-poor policies. Thus, greater emphasis should be placed on understanding the political factors that limit the expansion and survivability of antipoverty programs. A broader view along these lines highlights the bargaining strength of beneficiaries, the need to secure public support, the potential for political misuse of antipoverty programs, and how institutional fragilities affect their sustainability. Antipoverty programs can be effectively scaled up if attention is paid to addressing these political and institutional challenges. An agenda for future research is also identified.

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Scaling Up the Fight Against Rural Poverty


ABSTRACT—

The International Fund for Agricultural Development (IFAD) has for many years stressed innovation, knowledge and scaling up as essential ingredients of its strategy to combat rural poverty in developing countries. This institutional review of IFAD’s approach to scaling up is the fi rst of its kind: A team of development experts were funded by a small grant from IFAD to assess IFAD’s track record in scaling up successful interventions, its operational policies and processes, instruments, resources and incentives, and to provide recommendations to management for how to turn IFAD into a scaling-up institution. Beyond IFAD, this institutional scaling up review is a pilot exercise that can serve as an example for other development institutions.

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Image Source: © STRINGER Argentina / Reuters
      
 
 




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From saving to spending: A proposal to convert retirement account balances into automatic and flexible income

Abstract Converting retirement savings balances into a stream of retirement income is one of the most difficult financial decisions that households need to make. New financial products, however, offer people alternative ways to receive retirement income. We propose a default decumulation solution that could be added to retirement plans to simplify decumulation choices in much…

       




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An automatic way to convert retirement savings into income

In a recent survey, almost three quarters of respondents said they do not have the financial skills to manage their money in retirement. And they are probably right. Converting retirement savings into income is one of the most complex financial tasks people face. The necessary decisions – made in the presence of uncertainty about investment…

       




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Ask the Expert: Former CMS Head Breaks Down ACO Lessons to Date

A new approach to delivering -- and paying for -- health care made its debut three years ago and has been picking up steam ever since. Accountable care organizations (ACOs) are growing rapidly nationwide, offering the promise of coordinated patient care at a lower cost.

Yet, making the transition away from operating as a single, discrete practice unit according to a fee-for-service payment model can, admittedly, be difficult. Created as part of the Patient Protection and Affordable Care Act, ACOs are drawing close scrutiny from many different stakeholders.

Mark McClellan, M.D., Ph.D., recently discussed with AAFP News some early returns on ACOs, including the fact that many physician-led groups are moving to the new payment model. A former administrator of CMS, McClellan now serves as director of the Health Care Innovation and Value Initiative at the Brookings Institution in Washington.

Q: Are ACOs just a repackaged version of HMOs from the 1990s?

A: No, they are different. First, the ACOs directly involve clinicians in accountability for a population of patients rather than simply relying on the health plan. Second, in contrast with the cost-control approach of many managed care plans in the 1990s, there are now more effective tools to do clinical management and handle some form of capitation-based payments.

Q: How does a physician practice make the transition to an ACO?

A: It's a shift from the fee-for-service model whereby the practice starts to take on the overall financial risk for their patients. This means their approach to care has to change to reduce costs, but it also means they have new resources to make those changes financially sustainable.

Access to physicians or nurses in the practice should increase, ideally, to have 24/7 staffing to help avoid costly complications and avoidable admissions. A patient registry of individuals with chronic diseases or risk factors can help identify where and how to intervene. These are the types of things that, under a fee-for-service payment system, you don't get paid for, but in an ACO model, you can.

Q: How would you characterize the growth in ACOs to date and into the future?

A: I think accountable care will continue to grow, including payments that are tied more directly to results and that give clinicians more flexibility in how they deliver care. Many ACOs are integrated organizations like Health Care Partners, Monarch HealthCare and the University of Michigan.

But recently, there has been more growth in smaller ACOs led by physician groups, often primary care (physicians). These ACOs may consist of 20 to 30 doctors and are not affiliated with a hospital. They are still physician-owned, but they may be jointly financed by other co-investing organizations, like health plans or practice management programs, that also share in the savings.

Q: Can smaller physician groups be successful within the ACO model?

A: There are some promising ACOs made up of small practices. Some of these practices formed an ACO in a way that builds upon the traditional IPA (independent practice association) model. One of the advantages of the newer, physician-led ACOs is that they have clearer financial benefits to the physicians when they are able to reduce costs.

In contrast to traditional fee-for-service payment, in a physician ACO, when the group takes steps to reduce outpatient visits or hospital visits, they capture the savings. For hospital-affiliated ACOs, some of those savings are offset by reduced payments to the hospital.

There is new, hard work that needs to be done in terms of tracking patients. It's not just about insurance claims. These smaller ACOs are collaborating on population health management tools and information technology tools. You do need technology infrastructure to support specific changes in care to improve outcomes for your patient.

Q: Can ACOs with no hospital affiliation succeed?

A: Yes. Some of these ACOs are achieving impressive early results, and a lot of physician-led groups are more comfortable taking on population risks. Our research indicates that physician-led ACOs do not have to have a huge impact on care to succeed. For example, a physician-led ACO that reduces hospital visits by 1 percent to 2 percent can double the net revenues for its physicians. It's a very promising opportunity. A lot of physician groups are interested, and we're learning more about what it takes to succeed.

Q: What's an average timeline for an ACO to be declared successful?

A: For those that do succeed, it's likely to be a marathon and not a sprint. Some ACOs are already reporting gains in terms of improved quality of care, care coordination and cost reduction through steps like better management of high-risk patients and modifying referral and admission patterns. Other steps may take longer. For diabetes management, it could take about 12 to 24 months for improvements in care to translate into significant cost savings. With congestive heart failure, it can happen sooner.

As clinicians in ACOs get more experienced and comfortable with coordinating care and managing a patient's overall care experience, it's likely that they will want to implement additional payment reforms to move away from fee-for-service, which, in turn, means more resources for innovative approaches to care.

Q: Overall, how is the first wave of ACOs doing in enhancing quality and reducing costs?

A: In general, the ACOs are doing pretty well in terms of quality of care and improving on important quality measures. Financially, about half of the 114 ACOs participating in the Medicare Shared Savings Program reported that they reduced Medicare spending in their first year of operation.

About 29 percent of physician-led ACOs and 20 percent of hospital ACOs demonstrated large enough savings to qualify for the shared-savings payments. Some private-sector ACOs, like the Alternative Quality Contract developed by Massachusetts Blue Cross, show growing effects on costs over time. It's likely to be the case that some ACOs won't succeed and others will.

Q: How do the shared-savings models used by Medicare today compare with ACOs in terms of moving away from fee-for-service?

A: Many private-sector ACO plans and some Medicaid programs are offering bigger shifts away from fee-for-service. As ACOs gain more experience, I think these payment reforms will be more attractive. In addition, some private-sector health plans are including financial and other incentives to attract patients. They might offer discounted premiums or copay discounts for patients who stay engaged with their ACO. In other words, the patients can share in the savings, too. As care continues to get more individualized, patient engagement in the ACO initiatives will be increasingly important.

Publication: AAFP News
      




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Averting the Threat of a New Global Crisis

Publication: The G-20 Cannes Summit 2011: Is the Global Recovery Now in Danger?
     
 
 




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The Iran deal, one year out: What Brookings experts are saying

How has the Joint Comprehensive Plan of Action (JCPOA)—signed between the P5+1 and Iran one year ago—played out in practice? Several Brookings scholars, many of whom participated prominently in debates last year as the deal was reaching its final stages, offered their views.

      
 
 




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To unite a divided nation, we must tackle both vertical and horizontal inequality

America was once a country defined by our confident self-perception that we sometimes called “American exceptionalism.” Our “can-do” spirit helped us win two world wars, land on the moon, invent much of the world’s economy, and create a working class that was the envy of the world. Now we wonder whether we are a nation…

       




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Navigating uncertainty: Qatar’s response to the global gas boom


Over the past year, much attention has been given to the growing production of shale oil and the challenge that these unconventional sources of energy pose to traditional producers in the Gulf. As the world’s leading exporter of liquefied natural gas (LNG), Qatar faces related concerns – mounting competition from new LNG exporters and more competitive pricing in key Asian gas markets. How will this global gas boom unfold? How can Doha develop a robust response to growing volatility in gas pricing and demand?

In a new Brookings Doha Center Analysis Paper, Naser al-Tamimi examines Qatar’s position on the global gas stage and assesses the prospects of new competitors. He argues that new LNG production and exports – from Australia, the United States, and other countries – present a challenge to Qatar’s dominant status in global gas markets, particularly in the Asia-Pacific region. At the same time, diversification and slowing growth in this region’s major economies, such as China, South Korea, and Japan, may reduce LNG demand across the board.

Read "Navigating uncertainty: Qatar’s response to the global gas boom"

Ultimately, Tamimi argues that Qatar’s pricing mechanisms and export revenues will come under significant pressure as a result of these developments, posing a potential challenge to Qatari finances. He contends that an effective response from Qatari officials must emphasize greater exports to the Middle East/North Africa region, greater contract flexibility to attract new buyers, and cooperation with other GCC members to improve Gulf bargaining power in key regional markets.

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Authors

  • Naser al-Tamimi
Publication: Brookings Doha Center
Image Source: © Fadi Al-Assaad / Reuters
      
 
 




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Around the halls: Experts discuss the recent US airstrikes in Iraq and the fallout

U.S. airstrikes in Iraq on December 29 — in response to the killing of an American contractor two days prior — killed two dozen members of the Iranian-backed militia Kata'ib Hezbollah. In the days since, thousands of pro-Iranian demonstrators gathered outside the U.S. embassy in Baghdad, with some forcing their way into the embassy compound…

       




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Around the halls: Experts react to the killing of Iranian commander Qassem Soleimani

In a drone strike authorized by President Trump early Friday, Iranian commander Maj. Gen. Qassem Soleimani, who led the Quds Force of the Islamic Revolutionary Guards Corps, was killed at Baghdad International Airport. Below, Brookings experts provide their brief analyses on this watershed moment for the Middle East — including what it means for U.S.-Iran…

       




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American-Nigerian cooperation: An uncertain start to the Buhari era

Editor's note: Below is an introduction and transcript from a WBEZ 91.5 interview with Richard Joseph on Nigerian President Muhammad Buhari. The hope that the July 20 meeting between President Barack Obama and President Muhammadu Buhari would heal the rift between their countries concerning the fight against Boko Haram was not fully realized. Two days…

      
 
 




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Turning back the Poverty Clock: How will COVID-19 impact the world’s poorest people?

The release of the IMF’s World Economic Outlook provides an initial country-by-country assessment of what might happen to the world economy in 2020 and 2021. Using the methods described in the World Poverty Clock, we ask what will happen to the number of poor people in the world—those living in households with less than $1.90…

       




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A conversation with the CIA’s privacy and civil liberties officer: Balancing transparency and secrecy in a digital age

The modern age poses many questions about the nature of privacy and civil liberties. Data flows across borders and through the hands of private companies, governments, and non-state actors. For the U.S. intelligence community, what do civil liberties protections look like in this digital age? These kinds of questions are on top of longstanding ones…

       




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The big snoop: Life, liberty, and the pursuit of terrorists

When Edward Snowden hit the send button on a laptop in Hong Kong last June, just shy of his 30th birthday, he became the poster boy for an acutely American conundrum: the tension between the government’s constitutional commitment to the privacy of individuals and its responsibility for the safety of the nation. A precocious computer…

       




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Brookings experts comment on oil market developments and geopolitical tensions

The global COVID-19 pandemic and ensuing sharp decline in oil demand, coupled with an ongoing price war between Saudi Arabia and Russia, have brought oil prices to the brink. This month, those prices fell to an 18-year-low, and world leaders have been meeting in emergency sessions to try to navigate the crisis. On April 10,…

       




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The geography of poverty hotspots

Since at least Adam Smith’s Wealth of Nations in 1776, economists have asked why certain places grow, prosper, and achieve a higher standard of living compared to other places. Ever since growth started to accelerate following the industrial revolution, it has been characterized by, above all, unevenness across places within countries. Appalachia, the Italian “Mezzogiorno,”…

       




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Presidential Summit on Entrepreneurship: Experts Volunteer Abroad


Over 200 delegates from 50 countries gather this week in Washington for the Presidential Summit on Entrepreneurship. The summit hosts entrepreneurs to teach and learn innovative ways to strengthen professional and social relationships between the U.S. and the Islamic world. During his first major address to the Muslim world, delivered in Cairo last June, President Obama pledged to increase engagement through entrepreneurship, exchange programs and multilateral service initiatives.

Volunteer-led development initiatives have begun to act on Obama’s call for citizen diplomacy and private-sector engagement. The Initiative on International Volunteering and Service at Brookings and the Building Bridges Coalition have fueled an emerging legislative initiative that calls for increasing the role of international volunteers in the U.S. diplomatic agenda and development programs. This Service World Initiative has drawn from Brookings research outlining options to advance the president’s call for multilateral service.

As seen last year, for the first time in history, the majority of the world’s population lived in urban areas. And this trend is accelerating at an unprecedented rate. By 2050, urban dwellers are expected to make up about 70 percent of Earth’s total population. These informed 21st century urban citizens demand 24-7 connectivity, smart electric grids, efficient transportation networks, safe food and water, and transparent social services. All these demands place a huge strain on existing city infrastructures and the global environment. Most affected by this rapid urban boom, are the emerging markets. So how do we tackle this development dilemma?

One way is for highly-skilled experts, from a range of countries, to volunteer their time in emerging markets to help improve economic development, government services and stimulate job growth. This type of pro-bono program has many benefits. It benefits the urban areas in these emerging markets by leveraging intelligence, connecting systems and providing near-term impact on critical issues such as transportation, water, food safety, education and healthcare. It benefits the expert volunteers by fostering their teamwork skills, providing a cultural learning experience, and broadening their expertise in emerging markets.

IBM, which chairs the Building Bridges Coalition’s corporate sector, hosts a range of volunteer-led global entrepreneurship programs that improve economic stability for small- and medium-sized businesses, increase technology in emerging markets and open doors for the next generation of business and social leaders. This program connects high-talent employees with growing urban centers around the world and fosters the type of leadership to help IBM in the 21st century.

Recently, IBM sent a group of experts to Ho Chi Minh City as part of its Corporate Service Corps, a business version of the Peace Corps. This was the first Corporate Service Corps mission to be made up of executives, and the first to help a city in an emerging market analyze its challenges holistically and produce a plan to manage them. As a result, the city has now adopted a 10-year redevelopment plan that includes seven pilot programs in areas ranging from transportation to food safety. IBM will also help the city set up academic programs to prepare young Vietnamese to launch careers in technology services. IBM will continue this program throughout the next couple years to evolve the next set of global business and cultural hubs utilizing the volunteer hours of some of its most seasoned experts.

The Presidential Summit this week will further Obama’s call to “turn dialogue into interfaith service, so bridges between peoples lead to action.” The policy initiative of the Building Bridges Coalition, coupled with entrepreneurial innovations such as IBMs, can foster greater prosperity and service between the U.S. and our global partners.

Authors

Image Source: © STR New / Reuters
     
 
 




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Health care priorities for a COVID-19 stimulus bill: Recommendations to the administration, congress, and other federal, state, and local leaders from public health, medical, policy, and legal experts

       




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New BPEA Research on Partisanship, Poverty, Unemployment, Homebuyer Perceptions and Capital Controls


BPEA co-editor Justin Wolfers describes new research that found: people dropped out of the labor force before the recession started; there are better ways to forecast unemployment; homebuyer expectations helped inflate the bubble; the U.S. is not actually as politically polarized as most people think; central banks’ recent experiments with capital controls haven’t delivered results; and the U.S. is making inroads fighting poverty.

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Expert Consultation on the Development of the World Bank’s New Education Strategy

Event Information

March 26, 2010
9:00 AM - 1:00 PM EDT

The Brookings Institution
1775 Massachusetts Ave., NW
Washington, DC

On March 26, the Center for Universal Education at Brookings hosted an expert consultation on the development of the World Bank Group's new Education Strategy. The consultative meeting brought together a small group of experts from diverse fields. The purpose of the discussion was to gather input and suggestions aimed at strengthening the World Bank Group's work in the education sector.

Elizabeth King, Director of Education in the Human Development Network at the World Bank, opened the event by providing an overview of the Bank’s current approach to education, and how it has evolved over the last several decades. She described the Bank’s priorities as reconnecting education to the broader development agenda, supporting more equitable access, ensuring better learning, and strengthening education systems. The Bank’s main operating principals are taking a whole-sector approach, building the evidence base in education, and measuring the results and impact. Beginning with this extensive consultation process, the Bank is demonstrating its willingness to work with others in the development community to build a larger and more robust evidence base from which to draw lessons to improve the quality of limited staff to maximize the impact of Bank activities, to underscore its commitment to partnerships with other organizations and civil society groups, and to move toward improving the measurement of results so as to be able to further improve the Bank’s education programs around the world.

View the event summary »

Event Materials

     
 
 




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Webinar: Valuing Black lives and property in America’s Black cities

The deliberate devaluation of Black-majority cities stems from a longstanding legacy of discriminatory policies. The lack of investment in Black homes, family structures, businesses, schools, and voters has had far-reaching, negative economic and social effects. White supremacy and privilege are deeply ingrained into American public policy, and remain pervasive forces that hinder meaningful investment in…

       




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Israel's inertia on the Palestinian conflict has a price: American support


Editors' Note: U.S.-Israeli relations have taken a hit in recent years as the United States has become increasingly frustrated with the Netanyahu government's lack of initiative on advancing a peace process with the Palestinians. Tamara Wittes examines the domestic Israeli and American trends poised to further strain relations if the countries' leaders do not address these challenges head on. This article originally appeared in Haaretz on December 3, 2015—before the annual Saban Forum.

The past year brought unprecedented tensions in the U.S.-Israeli relationship, with many arguments and counterarguments about who is to blame. Beyond the tactical debates—about personality clashes, or the propriety of Israel parachuting into arguments between Congress and the U.S. president—are deeper challenges facing these two close allies. Last weekend, the Center for Middle East Policy at Brookings convened the Saban Forum in Washington to address these issues and to understand the future trajectory of the U.S.-Israeli relationship.

The first question that needs to be asked is why a bilateral relationship that for so long was kept above politics has now become a subject of bitter partisanship—in Israel, as well as in the United States. How did distasteful personal rhetoric become politically acceptable in a relationship that used to be carefully protected? Why did politicians lose their self-restraint about using the U.S.-Israel relationship as a wedge issue against their opponents? Why were opponents of the Iran nuclear deal, in Israel and in the United States, prepared to drag the American Jewish community and Democratic friends of Israel into the fray and force them to choose between supporting Israel and supporting their president?

Some argue that these trends result from differing levels of public support for Israel among Democratic and Republican voters. Polls show that Democratic voters are less supportive of the current Israeli government’s policies than Republican voters. If voters in the United States are splitting on partisan lines, the theory goes, then their elected representatives should follow. But polls that ask simplistic questions produce crude results.

more detailed survey by my colleague Shibley Telhami shows us something deeper: the lenses Americans use to evaluate Israel’s conflict with the Palestinians have changed over time. Today, Americans increasingly look at the Israeli-Palestinian conflict through the lens of human rights—and this is especially true for younger Americans, African Americans and Hispanic Americans. This makes them sensitive to the suffering of Palestinian civilians, and to heavy handed Israeli counter-terrorism policies. These groups form a larger proportion of the voting public than they have in past, and a growing proportion of the Democratic Party’s core constituency. Likewise, American Evangelical Christians look at Israel through a lens of prophetic fulfillment, which combined with their conservative political preferences puts them squarely on the side of more hawkish Israeli policies. And Evangelicals are a core constituency for the Republican Party. These underlying changes in attitudes have shifted the calculus for American politicians. But that doesn’t mean a partisan split on “support for Israel” is inevitable. It does point to specific aspects of Israeli policy that affect how Israel is viewed. As American society becomes “majority-minority,” where no group, including Americans of European origin, constitutes a majority of the population, Israelis should keep these underlying lenses in mind.

[T]he lenses Americans use to evaluate Israel’s conflict with the Palestinians have changed over time.

A second issue to examine is Israelis’ combination of vulnerability and national pride. Even in a post-9/11 era, Americans have a hard time appreciating the sense of vulnerability and fear that Israelis face from ongoing terrorism and rocket fire. The Gaza War last year brought this vulnerability into sharp focus—the war went on longer than any in Israel’s history other than War of Independence, and the rocket threat affected most of the country’s civilian population. The large numbers of Palestinians killed and wounded led some in America to question Israeli tactics.  U.S.-Israeli cooperation on Iron Dome produced impressive results and was trumpeted in the American media—but when you are walking outside and an air raid siren goes off, your faith in Iron Dome does not erase your sharp sense of fear.

Israelis’ sense of vulnerability is compounded by the asymmetric nature of the threats Israel is facing, and by the sense among many Israelis that their effort to reach a resolution of their conflict with the Palestinians has reached a dead end. The fear of another war and a sense that the neighborhood has turned deeply hostile, weigh heavily, in a way Americans have trouble understanding. Israelis become all the more anxious when they sense that their most important international ally might not see their security threats the same way they do.

Paradoxically, though, this sense of vulnerability coexists for Israelis with a sense of greater self-confidence about Israel’s military strength, its economic dynamism, and its wider relationships with the world. Particularly on the Israeli political right, there is today a stronger strain of nationalism and national pride (as evidenced in the “No Apologies” slogan of the Jewish Home Party in the last elections). In many countries around the world, including U.S. allies, the rise of right-wing nationalism is marked in part by politicians thumbing their nose at the global superpower: the United States. Israel, it appears, is no longer an exception to that rule.

Israelis become all the more anxious when they sense that their most important international ally might not see their security threats the same way they do.

These issues—Americans’ perceptions of Israeli policy toward the Palestinians, and Israelis’ combination of fear and self-confidence—go beyond the personalities of leaders or the choices of politicians. To bridge these gaps, the U.S.-Israel dialogue must reach beyond government meetings and Israel-Diaspora engagement— instead, Israelis and Americans must commit to understanding one another’s societies better than we do today.

Finally, and unavoidably, there is a policy problem driving U.S.-Israeli tensions—but it’s not what you might think. The Israeli and American governments are both struggling to deal with the disintegration of a twenty-year-old framework for settling the Israeli-Palestinian conflict. After the Oslo Declaration was signed in September, 1993, Americans, Israelis and Palestinians shared an approach to settling the conflict: direct bilateral negotiations mediated by the United States. But after the failure of the Kerry talks last spring, the two leaders in Jerusalem and Ramallah have no inclination to return to direct bilateral talks, and each of them in their own way emerged from the latest effort with questions about the role of the United States.

In the international community and the region, meanwhile, the loss of faith in the U.S.-led bilateral process has led to experiments with other modes of shaping the conflict, from economic pressure on Israel to new proposals for action by the UN Security Council. Netanyahu’s controversial words before Election Day last spring— that there would be no Palestinian state under his watch—were less of a unilateral declaration than a recognition of reality. The White House now more-or-less agrees, with Obama aides telling reporters that they did not expect peace on Obama’s watch. The longstanding, bilateral negotiating process was Washington’s main leverage in pushing back against other international efforts—and now that the negotiating process has ended, these efforts will inevitably escalate. Without U.S.-Israeli agreement on a way forward, further policy gaps are likely.

The Israeli and American governments are both struggling to deal with the disintegration of a twenty-year-old framework for settling the Israeli-Palestinian conflict.

This begs a question many American officials and analysts are asking: If there is no prospect for renewed bilateral talks toward a two-state solution, what is Israel’s Plan B? Does the Israeli government have a clear vision for its future relationship with the Palestinians? Israel expects American understanding as it takes steps it deems necessary to protect its citizens and ensure their future security. But American patience with Israel’s control over the West Bank is predicated on that control being temporary. There is impatience in Washington that Israel’s leadership has not tried to articulate a path forward beyond the immediate crisis—indeed, my colleague Natan Sachs argues that the current Israeli leadership has embraced “anti-solutionism” as a strategy. That's a very difficult position for any American administration to support.

If their modern history is any guide, Israelis will not remain passive before the forces now reshaping the Middle East; instead, they will insist on charting their own path into the future. When Israelis finally do develop a clear view of their chosen road, their first stop to explain it and seek support will inevitably be Washington. But Washington may not wait forever—especially as the stalemate is generating sustained violence. The time is now to lay the foundations for that crucial policy discussion, by updating American and Israeli understandings of one another’s dynamic societies, and by building on the Saban Forum and similar platforms to enrich our bilateral dialogue.

Image Source: © Larry Downing / Reuters
     
 
 




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The Iran deal, one year out: What Brookings experts are saying


How has the Joint Comprehensive Plan of Action (JCPOA)—signed between the P5+1 and Iran one year ago—played out in practice? Several Brookings scholars, many of whom participated prominently in debates last year surrounding official congressional review, offered their views.

Strobe Talbott, President, Brookings Institution:

At the one-year mark, it’s clear that the nuclear agreement between Iran and the major powers has substantially restricted Tehran’s ability to produce the fissile material necessary to build a bomb. That’s a net positive—for the United States and the broader region.

Robert Einhorn, Senior Fellow, Center for 21st Century Security and Intelligence and Senior Fellow, Arms Control and Non-Proliferation Initiative, Foreign Policy program:

One year after its conclusion, the JCPOA remains controversial in Tehran and Washington (as I describe in more detail here), with opponents unreconciled to the deal and determined to derail it. But opponents have had to scale back their criticism, in large part because the JCPOA, at least so far, has delivered on its principal goal—blocking Iran’s path to nuclear weapons for an extended period of time. Moreover, Iran’s positive compliance record has not given opponents much ammunition. The IAEA found Iran in compliance in its two quarterly reports issued in 2016.

But challenges to the smooth operation and even the longevity of the deal are already apparent.

A real threat to the JCPOA is that Iran will blame the slow recovery of its economy on U.S. failure to conscientiously fulfill its sanctions relief commitments and, using that as a pretext, will curtail or even end its own implementation of the deal. But international banks and businesses have been reluctant to engage Iran not because they have been discouraged by the United States but because they have their own business-related reasons to be cautious. Legislation proposed in Congress could also threaten the nuclear deal. 

For now, the administration is in a position to block new legislation that it believes would scuttle the deal. But developments outside the JCPOA, especially Iran’s regional behavior and its crackdown on dissent at home, could weaken support for the JCPOA within the United States and give proponents of deal-killing legislation a boost. 

A potential wildcard for the future of the JCPOA is coming governing transitions in both Washington and Tehran. Hillary Clinton would maintain the deal but perhaps a harder line than her predecessor. Donald Trump now says he will re-negotiate rather than scrap the deal, but a better deal will not prove negotiable. With President Hassan Rouhani up for re-election next year and the health of the Supreme Leader questionable, Iran’s future policy toward the JCPOA cannot be confidently predicted.

A final verdict on the JCPOA is many years away. But it is off to a promising start, as even some of its early critics now concede. Still, it is already clear that the path ahead will not always be smooth, the longevity of the deal cannot be taken for granted, and keeping it on track will require constant focus in Washington and other interested capitals. 

Suzanne Maloney, Deputy Director, Foreign Policy program and Senior Fellow, Center for Middle East Policy, Foreign Policy program:

The Joint Comprehensive Plan of Action has fulfilled neither the worst fears of its detractors nor the most soaring ambitions of its proponents. All of the concerns that have shaped U.S. policy toward Tehran for more than a generation—terrorism, human rights abuses, weapons of mass destruction, regional destabilization—remain as relevant, and as alarming, as they have ever been. Notably, much the same is true on the Iranian side; the manifold grievances that Tehran has harbored toward Washington since the 1979 revolution continue to smolder.

An important truth about the JCPOA, which has been wielded by both its defenders and its detractors in varying contexts, is that it was transactional, not transformational. As President Barack Obama repeatedly insisted, the accord addressed one specific problem, and in those narrow terms, it can be judged a relative success. The value of that relative success should not be underestimated; a nuclear-armed Iran would magnify risks in a turbulent region in a terrible way. 

But in the United States, in Iran, and across the Middle East, the agreement has always been viewed through a much broader lens—as a waystation toward Iranian-American rapprochement, as an instrument for addressing the vicious cycle of sectarian violence that threatens to consume the region, as a boost to the greater cause of moderation and democratization in Iran. And so the failure of the deal to catalyze greater cooperation from Iran on a range of other priorities—Syria, Yemen, Iraq, to name a few—or to jumpstart improvements in Iran’s domestic dynamics cannot be disregarded simply because it was not its original intent. 

For the “new normal” of regularized diplomatic contact between Washington and Tehran to yield dividends, the United States will need a serious strategy toward Tehran that transcends the JCPOA, building on the efficacy of the hard-won multilateral collaboration on the nuclear issue. Iranians, too, must begin to pivot the focus of their efforts away from endless litigation of the nuclear deal and toward a more constructive approach to addressing the deep challenges facing their country today. 

Bruce Riedel, Senior Fellow, Center for Middle East Policy and Center for 21st Century Security and Intelligence and Director, Intelligence Project, Foreign Policy program:

As I explain more fully here, one unintended but very important consequence of the Iran nuclear deal has been to aggravate and intensify Saudi Arabia's concerns about Iran's regional goals and intentions. This fueling of Saudi fears has in turn fanned sectarian tensions in the region to unprecedented levels, and the results are likely to haunt the region for years to come.

Riyadh's concerns about Iran have never been primarily focused on the nuclear danger. Rather, the key Saudi concern is that Iran seeks regional hegemony and uses terrorism and subversion to achieve it. The deal deliberately does not deal with this issue. In Saudi eyes, it actually makes the situation worse because lifting sanctions removed Iran's isolation as a rogue state and gives it more income. 

Washington has tried hard to reassure the Saudis, and President Obama has wisely sought to build confidence with King Salman and his young son. The Iran deal is a good one, and I've supported it from its inception. But it has had consequences that are dangerous and alarming. In the end, Riyadh and Tehran are the only players who can deescalate the situation—the Saudis show no sign of interest in that road. 

Norman Eisen, Visiting Fellow, Governance Studies:

The biggest disappointment of the post-deal year has been the failure of Congress to pass legislation complementing the JCPOA. There is a great deal that the legislative branch could do to support the pact. Above all, it could establish criteria putting teeth into U.S. enforcement of Preamble Section III, Iran's pledge never to seek nuclear weapons. Congress could and should make clear what the ramp to seeking nuclear weapons would look like, what the triggers would be for U.S. action, and what kinds of U.S. action would be on the table. If Iran knows that, it will modulate its behavior accordingly. If it does not, it will start to act out, and we have just kicked the can down the road. That delay is of course immensely valuable—but why not extend the road indefinitely? Congress can do that, and much more (e.g. by increasing funding for JCPOA oversight by the administration and the IAEA), with appropriate legislation.

Richard Nephew, Nonresident Senior Fellow, Center for 21st Century Security and Intelligence, Arms Control and Non-Proliferation Initiative, Foreign Policy program:

Over the past year, much effort has gone into ensuring that the Iran deal is fully implemented. To date, the P5+1 has—not surprisingly—gotten the better end of the bargain, with significant security benefits accruing to them and their partners in the Middle East once the International Atomic Energy Agency (IAEA) verified the required changes to Iran's nuclear program. Iran, for its part, has experienced a natural lag in its economic resurgence, held back by the collapse in oil prices in 2014, residual American and European sanctions, and reluctance among banks and businesses to re-engage.

But, Iran's economy has stabilized and—if the deal holds for its full measure—the security benefits that the P5+1 and their partners have won may fall away while Iran's economy continues to grow. The most important challenge related to the deal for the next U.S. administration (and, presumably, the Rouhani administration in its second term) is therefore: how can it be taken forward, beyond the 10- to 15-year transition period? Iran will face internal pressure to expand its nuclear program, but it also will face pressure to refrain both externally and internally, should other countries in the region seek to create their own matching nuclear capabilities. 

The best next step for all sides is to negotiate a region-wide arrangement to manage nuclear programs –one that constrains all sides, though perhaps not equally. It must ensure—at a minimum—that nuclear developments in the region are predictable, understandable, and credibly civilian (something Bob Einhorn and I addressed in a recent report). The next White House will need to do the hard work of convincing countries in the region—and beyond—not to rest on the victory of the JCPOA. Rather, they must take it for what it is: another step towards a more stable and manageable region.

Tamara Wittes, Senior Fellow and Director, Center for Middle East Policy, Foreign Policy program

This week, Washington is awash in events and policy papers taking stock of how the Iran nuclear deal has changed the Middle East in the past year. The narratives presented this week largely track the positions that the authors, speakers, or organizations articulated on the nuclear deal when it was first concluded last summer. Those who opposed the deal have marshaled evidence of how the deal has "emboldened" Iran's destabilizing behavior, while those who supported the deal cite evidence of "moderated" politics in the Islamic Republic. That polarized views on the deal last year produce polarized assessments of the deal's impact this year should surprise no one.

In fact, no matter which side of the nuclear agreement’s worth it presents, much of the analysis out this week ascribes to the nuclear deal Iranian behavior and attitudes in the region that existed before the deal's conclusion and implementation. Iran has been a revisionist state, and a state sponsor of terrorism, since the 1979 Islamic Revolution. The Saudi-Iranian rivalry predates the revolution; Iran's backing of Houthi militias against Saudi and its allies in Yemen well predates the nuclear agreement. Most notably, the upheavals in the Arab world since 2011 have given Iran wider opportunities than perhaps ever before to exploit the cracks within Arab societies—and to use cash, militias, and other tools to advance its interests and expand its influence. Iran has exploited those opportunities skillfully in the last five years and, as I wrote last summer, was likely to continue to do so regardless of diplomatic success or failure in Vienna. To argue that the nuclear deal somehow created these problems, or could solve them, is ahistorical. 

It is true that Iran's access to global markets might free even more cash for these endeavors, and that is a real issue worth tracking. But since severe sanctions did not prevent Iran from spending hundreds of millions of dollars to support and supply Hezbollah, or marshaling Islamic Revolutionary Guard Corps (IRGC) and militia fighters to sustain the faltering regime of Bashar Assad in Syria, it's not clear that additional cash will generate a meaningful difference in regional outcomes. Certainly, the nuclear deal's conclusion and implementation did not alter the trajectory of Iranian policy in Yemen, Iraq, Syria, or Lebanon to any noticeable degree—and that means that, no matter what the merits or dangers of the JCPOA, the United States must still confront and work to resolve enduring challenges to regional instability—including Iran's revisionist behavior.

Kenneth M. Pollack, Senior Fellow, Center for Middle East Policy, Foreign Policy program: 

When the JCPOA was being debated last year, I felt that the terms of the deal were far less consequential than how the United States responded to Iranian regional behavior after a deal was signed. I see the events of the past 12 months as largely having borne that out. While both sides have accused the other of "cheating," the deal has so far largely held. However, as many of my colleagues have noted, the real frictions have arisen from the U.S. geostrategic response to the deal.

I continue to believe that signing the JCPOA was better than any of the realistic alternatives—though I also continue to believe that a better deal was possible, had the administration handled the negotiations differently. However, the administration’s regional approach since then has been problematic—with officials condemning Riyadh and excusing Tehran in circumstances where both were culpable and ignoring some major Iranian transgressions, for instance (and with President Obama gratuitously insulting the Saudis and other U.S. allies in interviews). 

America's traditional Sunni Arab allies (and to some extent Turkey and Israel) feared that either the United States would use the JCPOA as an excuse to further disengage from the region or to switch sides and join the Iranian coalition. Their reading of events has been that this is precisely what has happened, and it is causing the GCC states to act more aggressively.

I think our traditional allies would enthusiastically welcome a Hillary Clinton presidency. She would likely do all that she could to reassure them that she plans to be more engaged and more willing to commit American resources and energy to Middle Eastern problems. But those allies will eventually look for her to turn words into action. I cannot imagine a Hillary Clinton administration abrogating the JCPOA, imposing significant new economic sanctions on Iran, or otherwise acting in ways that it would fear could provoke Tehran to break the deal. Our allies may see that as Washington trying to remain on the fence, which will infuriate them. 

So there are some important strategic differences between the United States and its regional allies. The second anniversary of the JCPOA could therefore prove even more fraught for America and the Middle East than the first. 


      
 
 




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The POLITICO 50: Robert Kagan and Victoria Nuland

Editor's note: POLITICO Magazine released a list of the top 50 influential people in Washington, D.C., including Brookings Senior Fellow Robert Kagan and Assistant Secretary of State for European and Eurasian Affairs Victoria Nuland, described as "the ultimate American power couple."

Victoria Nuland and Robert Kagan fell in love “talking about democracy and the role of America in the world” on one of their first dates. It’s a shared passion that hasn’t faded over time.

It was just two years ago that President Obama was gushing to aides about an essay that Kagan, a historian and author, wrote about the myth of American decline—a theme Obama echoed in his State of the Union that January. This year, Kagan’s sprawling New Republic essay, “Superpowers Don’t Get to Retire,” insisted on America’s enduring responsibility to shape the world order—and issued a direct challenge to a president who has summarized his own foreign-policy doctrine with a minimalist “don’t-do-stupid-s—t” directive. Obama promptly invited Kagan in for a West Wing consult, but it was also clear that Kagan had helped rouse the president’s Republican critics, who have been increasingly adopting Kagan’s argument that just because it’s been a decade of wearying war in Iraq and Afghanistan doesn’t mean America can roll up its superpower carpet and stay home when new crises, from Iraq to Russia to Syria, beckon.

Nuland, overseeing European and Eurasian Affairs at the State Department, has been a strong advocate of the engaged approach her husband favors as a crisis with Russia has unfolded on her diplomatic turf this year. The point was made, rather sensationally, in February, when a leaked audio recording of her F-bomb-laden diatribe about the fecklessness of the European Union, which she accused of not exactly playing a constructive role trying to end the growing conflict in Ukraine, appeared on the Internet. Nuland, a career Foreign Service officer, has been an impassioned advocate for democracy-building in Eastern Europe, and while she got pushback from European counterparts over her “f—k the EU” comment, the United States has been leading the effort to impose sanctions on Russia since President Vladimir Putin seized Ukraine’s Crimean Peninsula and waged a proxy war in the country’s east—dragging a reluctant Europe along pretty much every step of the way.

Publication: POLITICO Magazine