INTRODUCTION

Influencing the Islamic Republic of Iran has proven to be a perennial conundrum for American presidents. The complexity of Iranian politics and the intractability of the problems posed by Tehran’s revolutionary theocracy may explain why, over the course of three decades, each U.S. administration has been forced to revise its initial approach to Iran in hopes of achieving better outcomes. The overall result has been an American tendency to oscillate between engagement and pressure, with frustratingly limited results.

And so it goes for the Obama administration. After an initial, high-profile effort to draw Tehran into a serious dialogue both to resolve the nuclear issue as well as transcend it, Washington now finds itself pivoting away from diplomatic engagement to a more coercive policy centered around economic pressure. The shift comes amidst a dramatic new context within the Islamic Republic, characterized by historic turmoil on the streets and bitter divisions among the elites, and at a moment when the international urgency surrounding Tehran’s nuclear ambitions has never been greater. This context raises the stakes and heightens the sensitivities of getting U.S. policy on Iran right after so many years of failure.

The turn toward sanctions is a predictable one. Sanctions have proven to be an instrument of American policy toward Tehran for the past thirty years. American use of economic pressure as a means of dissuading Iranian malfeasance began with the freezing of Iranian assets after Iranian students seized the U.S. Embassy in Tehran in 1979 and culminated in the nearly comprehensive ban on trade and investment in Iran that has been in place since the Clinton administration. But, despite the appeal of sanctions, their protracted duration underlines their limitations—particularly when they are unilateral—as a mechanism for categorically revising Iranian policy. Still, many find sanctions attractive because the overall track record of Iranian decision-making demonstrates that Tehran often considers the costs and benefits of its policy options in determining its course. As Iran’s internal strife exacerbates the regime’s vulnerabilities, the prospects for international consensus around new economic restrictions appear more realistic than ever before.

To examine the options and implications for using sanctions to address the multi-faceted challenges of Iran, the Saban Center for Middle East Policy at the Brookings Institution held a half-day symposium in late October 2009. The workshop featured off-the-record panel discussions led by experts on Iranian internal politics and the key actors shaping the diplomatic landscape. The conclusions from that session are presented below.

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Created within a year of each other, the World Bank and the United Nations were born out of a shared response to the Second World War. The war created a constituency willing to invest resources and ideals in a system of multilateral cooperation. In the words of one of their architects, these institutions were to create a “New Deal for a new world.”

Today we face another period of global disorder. The number of armed conflicts worldwide has tripled from four to 11 since 2007. 2014 was the most lethal year since the end of the Cold War, according to the Uppsala Conflict Data Program. In the same year, the total number of deaths from terrorism increased by 80 percent, to close to 37,000, the largest yearly increase in the last 15 years, according to the Institute for Economics and Peace.

The fallout is clear. The number of people affected by humanitarian crises has almost doubled in the past decade, with 125 million people requiring humanitarian assistance. Displacement is at a post-World War II high with 60 million people around the world forced from their homes, often within their own countries. Roughly two-thirds of U.N. peacekeepers today and almost 90 percent of personnel in U.N. Special Political Missions are working in and on countries where there is little peace to keep.

Responding to this challenge, the U.N. and its member states led major reviews in 2015 of the tools and approaches used to respond to conflict. These reviews looked at peacekeeping operations, the implementation of Security Council Resolution 1325 on Women, Peace, and Security, and the U.N.’s peacebuilding architecture.

These reviews underscored that while humanitarian assistance can mitigate suffering, and peacekeepers can stabilize situations, they alone cannot create lasting peace, development, and prosperity. 

Responding to this challenge requires a new global partnership to prevent violent conflict, reduce humanitarian need, and sustain peace. This partnership must reaffirm our commitment to humanity and chart a course for change, as the secretary-general has called for in his recent report for the World Humanitarian Summit.

Taking place just before the World Humanitarian Summit, the ministerial meeting of the International Dialogue on Peacebuilding and Statebuilding (IDPS) in Stockholm is a key moment at which the principles of the New Deal for Engagement in Fragile States, in particular the TRUST and FOCUS components, could be used to provide a foundation for this effort.

Peacebuilding and statebuilding, however, are political. Technical instruments must be aligned with and informed by a political strategy owned by national governments and developed in consultation with its people. This is as true at the global level as it is in each country.

The first step is normative. In 2015, through the Addis Ababa Action Agenda and the 2030 Agenda for Sustainable Development, member states committed to a future that aims to leave no one behind. The International Dialogue, the New Deal, and the g7+ were important foundations, asserting the links between development and peace captured in the Sustainable Development Goals (SDG). However, the SDGs are universal. Goal 16 on just, peaceful, and inclusive societies is an ambition of all countries, not only those identified internationally as conflict-affected, and other goals—for example SDG 1 on ending poverty and SDG 10 on reducing inequality—are critical to peace in conflict-affected states. A statement at Stockholm should be made clarifying the linkages between the specific focus of the New Deal and the universal goals of the SDGs (and their affiliated processes).

The second is ownership. Peace and development are first and foremost a national responsibility. The New Deal provides a framework that brings together multilateral and bilateral partners of conflict-affected countries. However, it has functioned primarily as a tool for the targeting of aid, not its management. To achieve the SDGs in 2030 we need to equip national partners with the tools to address the drivers of conflict. That is where a revitalized New Deal can play an important role. While the SDGs are now the overarching framework, making more significant progress on the TRUST and FOCUS components of the New Deal will be essential contributions to the implementation of the 2030 Agenda. Commitments to ownership, the use of country systems, and mobilization of national resources should be restated and given life in Stockholm.

The last is resources. Resolving conflict requires multi-year financing addressing the drivers of conflict rather than short-term responses.  While official development assistance (ODA) to conflict-affected countries has increased over the last dozen years or so, in 2013, peacebuilding support to legitimate politics, security, and justice systems represented only 16 percent (or $6.8 billion) of the $42 billion in gross development assistance for 31 conflict-affected countries (see Figure 1). At a very moment of global crisis, as of January 1, 2016 and for the first time in its history, the United Nations Peacebuilding Fund will not reach its $100 million annual allocation target endorsed by the secretary-general and donors. Stockholm needs to demonstrate a commitment to peacebuilding and statebuilding that goes beyond words, and commit to more resources devoted to conflict-affected countries and more resources targeting the drivers of conflict.

The U.N. has been a supporter of the New Deal from the beginning, recognizing it as a model for partnership between conflict-affected states and their development partners. A political, prioritized strategy for peacebuilding and statebuilding is necessary to support full implementation of the Sustainable Development Goals in conflict-affected states. The New Deal provides inspiration for such a strategy. The question for Stockholm is whether inspiration alone will be sufficient.

Note: Special thanks goes to Jago Salmon for his contributions. This blog reflects the views of the author only and does not reflect the views of the Africa Growth Initiative. Similarly, the views expressed herein are those of the author(s) and do not necessarily reflect the views of the United Nations.

Super PACs and other lightly regulated political organizations are dumping hundreds of millions of dollars into American elections. What should be done about it? Unlike many candidates for federal or state office, so-called independent expenditure groups face no restrictions on how much individuals and groups can give to them. And thanks to several federal court decisions, including Citizens United v. Federal Election Commission, independent groups can spend unlimited amounts to influence elections. The public understandably worries about the political clout of wealthy groups—especially since donors often can hide their identities.

Reformers have proposed various remedies: disclosure rules, the appointment of a liberal Supreme Court justice to reverse Citizens United, even a constitutional amendment to overturn that decision. Those long-shot strategies, however, are unlikely to create the kind of small-donor democracy that many reformers seek. Money, like water, will inevitably flow into the political system. Laws can’t do much to reduce the amount of money in politics; what they can change is where the money goes.

An easier path to improving politics

In our new Brookings paper, The State of State Parties, we suggest an easier path to improving politics—one that is right under our nose. Strengthening state political parties can help offset the clout of super PACs.

Our study, based on a survey of 56 state-party organizations plus detailed interviews with 15 of their leaders, points to the distinctive and constructive role that state parties play in American politics. In an era when politics seems to be spinning out of control, party organizations are among the few actors that seek to integrate and balance interests—for instance, by recruiting candidates with broad appeal, by playing honest broker among contending partisan factions, and by building coherent strategies among campaigns up and down the ticket. Party organizations also generate a lot of grassroots activity to mobilize volunteers and voters.

How regulations on parties increase super PAC spending

State parties are among the most heavily regulated entities in American politics, a situation that diminishes their influence relative to non-party groups. For instance, the vast majority of state parties face restrictions on the source and size of donations, and some contribution limits are unrealistically low. In Massachusetts, no donor can give more than annual aggregate of $5,000 to all local and state parties. That’s a paltry sum in statewide elections that can easily cost $55 million, including $20 million in independent expenditures.

Super PACs and other groups naturally fill the vacuum because they do not have to contend with limits on raising and spending money. Often, outside groups effectively drown out the parties. In our survey, only half the parties said they advertise on TV and radio sometimes or often, usually because they lack the resources to do more.

The figure below shows that parties’ independent spending is miniscule compared to the growing expenditures of non-party groups over the past five election cycles. In the 2014 election cycle, the parties accounted for just six percent of total independent spending in the states for which we had good data.

An especially significant finding is that restraints on political parties seem to amplify the activities and influence of outside groups. As illustrated in the table below, 65 percent of respondents in states with contribution limits to parties said that independent groups sponsor more than half or almost all political ads, compared to only 23 percent in states without contribution limits. 

In other words, independent spending is significantly lower when parties are not limited. These differences translate into electoral clout. In states with contribution limits, 65 percent of respondents said independent spending is often a key factor in gubernatorial elections, while fewer than half said the same in states with no limits.

Correlation does not prove causality, but our findings provide strong circumstantial evidence that when you restrict the parties, you get more independent expenditures by non-party groups.

It’s not hard to strengthen state parties

We recommend changes to strengthen state parties and restore them to a place of prominence in campaigns. First, state governments should raise or eliminate contribution limits so the parties can acquire sufficient resources to compete with outside actors. This would allow state parties to serve as clearinghouses for campaign money, which would bring more “dark money” toward accountability and transparency.

Second, parties should be allowed full freedom to coordinate their activities with their candidates and allied groups. This would make them more valuable to candidates and would allow the parties to perform their irreplaceable role of supporting candidates across the party ticket.

We also suggest giving parties favorable tax treatment so that donors are more likely to give to parties than candidate-sponsored super PACs or interest groups. We also recommend other regulatory changes that would encourage parties to do more grassroots work with voters.

Loosening the constraints on state parties would not stop the flow of money into politics (nothing can do that), but would channel more of the money to accountable actors. That’s why we think of this solution as building canals, not dams. And the incremental steps we propose require no sea-changes in public opinion or heroic legislation. In fact, they command support in both parties’ establishments, making them a good starting point for reform. That’s why we conclude that strengthening state parties is a realistic path toward a better balanced, more effective, and more accountable political system.

Policy Brief #182

Protection of people from oppressive governments, civil conflict and disasters has moved to the top of the international agenda. The United Nations Security Council authorized all measures necessary to protect civilians in Libya as the airstrikes began. Humanitarian agencies-working in more places and under more difficult conditions than ever before-are grappling with the aftermath of Japan's massive earthquake even as they are also working with displaced people in Haiti and Ivory Coast and responding to hundreds of thousands of people fleeing Libya. And increasingly these agencies are not only trying to assist people through provision of relief items, but also trying to protect them. But with so many global organizations mobilizing to protect civilians when disasters strike and conflicts break out, the concept of protection has begun to lose its distinctive meaning.

Can anyone "do" protection? In The Politics of Protection: The Limits of Humanitarian Action (Brookings Institution Press, 2011), I describe how protection has been stretched to include all manner of important activities-from provision of food to curriculum development, from advocacy to monitoring, from building latrines to voter registration. Beyond affirming the responsibility of governments to protect their people, international law offers no clear guidance on how to translate the principles of protection into action.

Given the likelihood that conflicts will continue and natural disasters will increase in the future, much more attention is needed on the question of protection, which has emerged over the years from international humanitarian law, refugee law and human rights law. The most visible part of the international humanitarian system is the vast array of U.N. agencies and nongovernmental organizations. Yet military forces, the International Committee of the Red Cross, and thousands of civil society organizations are also major actors in humanitarian response. This brief describes observations and recommendations on protection in humanitarian work culled from my forthcoming book.

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With international attention focused on the humanitarian emergencies in Syria and Iraq, the escalating crisis in Libya has gone overlooked. Scores of those displaced during the 2011 Libyan revolution have been unable to return to their homes, while over a million more have been uprooted in the subsequent violence. Hundreds of thousands of Libyans remain displaced within their country, while countless more have sought shelter in neighboring states such as Tunisia. At the same time, human traffickers are taking advantage of the collapse of order in Libya, sending more and more boats across the Mediterranean filled with asylum seekers and migrants desperate to reach Europe. With the vast majority of international actors having pulled out of Libya in the summer of 2014, humanitarian assistance for needy populations is in short supply, and solutions to the crisis seem far from sight.

On April 24, the Brookings-LSE Project on Internal Displacement convened a discussion on the humanitarian consequences of the violence in Libya, focusing on the implications for those in Libya and for the country’s neighbors. Brookings Nonresident Fellow Megan Bradley drew on recent research on Libya’s displacement crisis. Speakers also included Kais Darragi of the Embassy of the Republic of Tunisia and Shelly Pitterman of the United Nations Office of the High Commissioner for Refugees (UNHCR). Elizabeth Ferris, senior fellow and co-director of the Brookings-LSE Project on Internal Displacement moderated the event and offered opening remarks.

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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.

A 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.

First it was the Europeans who sought an escape from the tragic realities of power that had bloodied their 20th century. At the end of the Cold War, they began to disarm themselves in the hopeful belief that arms and traditional measures of power no longer mattered. A new international system of laws and institutions would replace the old system of power; the world would model itself on the European Union—and if not, the U.S. would still be there to provide security the old-fashioned way.

But now, in the wake of the wars in Iraq and Afghanistan, it is the U.S. that seems to be yearning for an escape from the burdens of power and a reprieve from the tragic realities of human existence.

Until recent events at least, a majority of Americans (and of the American political and intellectual classes) seem to have come close to concluding not only that war is horrible but also that it is ineffective in our modern, globalized world. "There is an evolving international order with new global norms making war and conquest increasingly rare," wrote Fareed Zakaria of CNN, borrowing from Steven Pinker of Harvard, practically on the eve of Russia's invasion of Ukraine and the Islamic State's march across Syria and Iraq. Best-selling histories of World War I teach that nations don't willingly go to war but only "sleepwalk" into them due to tragic miscalculations or downright silliness.

For a quarter-century, Americans have been told that at the end of history lies boredom rather than great conflict, that nations with McDonald's never fight one another, that economic interdependence and nuclear weapons make war among great powers unlikely if not impossible. Recently added to these nostrums has been the mantra of futility. "There is no military solution" is the constant refrain of Western statesmen regarding conflicts from Syria to Ukraine; indeed, military action only makes problems worse. Power itself isn't even what it used to be, argued the columnist Moisés Naím in a widely praised recent book.

History has a way of answering such claims. The desire to escape from power is certainly not new; it has been the constant aspiration of Enlightenment liberalism for more than two centuries.

The impossibility of war was conventional wisdom in the years before World War I, and it became conventional wisdom again—at least in Britain and the U.S.—practically the day after the war ended. Then as now, Americans and Britons solipsistically believed that everyone shared their disillusionment with war. They imagined that because war was horrible and irrational, as the Great War had surely demonstrated, no sane people would choose it.

What happened next, as the peaceful 1920s descended into the violent and savage 1930s, may be instructive for our own time. Back then, the desire to avoid war—combined with the surety that no nation could rationally seek it—led logically and naturally to policies of appeasement.

The countries threatening aggression, after all, had grievances, as most countries almost always do. They were "have-not" powers in a world dominated by the rich and powerful Anglo-Saxon nations, and they demanded a fairer distribution of the goods. In the case of Germany, resentment over the Versailles peace settlement smoldered because territories and populations once under Germany's control had been taken away to provide security for Germany's neighbors. In the case of Japan, the island power with the overflowing population needed control of the Asian mainland to survive and prosper in competition with the other great powers.

So the liberal powers tried to reason with them, to understand and even accept their grievances and seek to assuage them, even if this meant sacrificing others—the Chinese and the Czechs, for instance—to their rule. It seemed a reasonable price, unfortunate though it might be, to avoid another catastrophic war. This was the realism of the 1930s.

Eventually, however, the liberal powers discovered that the grievances of the "have-not" powers went beyond what even the most generous and conflict-averse could satisfy. The most fundamental grievance, it turned out, was that of being forced to live in a world shaped by others—to be German or Japanese in a world dominated by Anglo-Saxons.

To satisfy this grievance would require more than marginal territorial or economic adjustments or even the sacrifice of a small and weak state here or there. It would require allowing the "have-not" powers to reshape the international political and economic order to suit their needs. More than that, it would require letting those powers become strong enough to dictate the terms of international order—for how else could they emerge from their unjust oppression?

Finally, it became clear that more was going on than rational demands for justice, at least as the Enlightenment mind understood the term. It turned out that the aggressors' policies were the product not only of material grievances but of desires that transcended mere materialism and rationality.

Their leaders, and to a great extent their publics, rejected liberal notions of progress and reason. They were moved instead by romantic yearnings for past glories or past orders and rejected Enlightenment notions of modernity. Their predatory or paranoid rulers either fatalistically accepted (in the case of Japan) or positively welcomed (in the case of Germany) armed conflict as the natural state of human affairs.

By the time all this became unmistakably obvious to the liberal powers, by the time they realized that they were dealing with people who didn't think as they did, by the time they grasped that nothing short of surrender would avoid conflict and that giving the aggressors even part of what they demanded—Manchuria, Indochina, Czechoslovakia—only strengthened them without satisfying them, it was too late to avoid precisely the world war that Britain, France, the U.S. and others had desperately tried to prevent.

This searing experience—not just World War II but also the failed effort to satisfy those who couldn't be satisfied—shaped U.S. policy in the postwar era. For the generations that shared this experience, it imposed a new and different sense of realism about the nature of humankind and the international system. Hopes for a new era of peace were tempered.

American leaders and the American public generally if regretfully accepted the inescapable and tragic reality of power. They adopted the posture of armed liberalism. They built unimaginably destructive weapons by the thousands. They deployed hundreds of thousands of troops overseas, in the heart of Europe and along the rim of East Asia, to serve as forward deterrents to aggression. They fought wars in distant and largely unknown lands, sometimes foolishly and sometimes ineffectively but always with the idea—almost certainly correct—that failure to act against aggressors would only invite further aggression.

In general, except for a brief bout of fatalism under President Richard Nixon and former Secretary of State Henry Kissinger, they were disinclined to assuage or even acknowledge the grievances of those who opposed them. (President Harry Truman and Secretary of State Dean Acheson, the architects of armed liberalism, never had much interest in bargaining with the Soviets, while President Ronald Reagan was interested chiefly in bargaining over the terms of their surrender.)

Behind the actions of the U.S. architects of containment lay the belief, based on hard experience, that other peoples couldn't always be counted on to value what the liberal world valued—prosperity, human rights or even peace—and therefore the liberal world had to be constantly on its guard, well-armed and well-prepared against the next stirring of the non-liberal, atavistic urges that were a permanent feature of humankind.

How much easier it was to maintain this tragic vigilance while the illiberal, conflict-based ideology of communism reigned across more than half of the Eurasian continent—and how much harder has it been to sustain that vigilance since the fall of communism seemingly ushered in a new era of universal liberalism, and with it the prospect, finally, of a Kantian peace in a world dominated by democracy.

For a time in the 1990s, while the generations of World War II and the early Cold War survived, the old lessons still guided policy. President George H.W. Bush and his national security adviser, Brent Scowcroft, sent half a million American troops to fight thousands of miles away for no other reason than to thwart aggression and restore a desert kingdom that had been invaded by its tyrant neighbor. Kuwait enjoyed no security guarantee with the U.S.; the oil wells on its lands would have been equally available to the West if operated by Iraq; and the 30-year-old emirate ruled by the al-Sabah family had less claim to sovereign nationhood than Ukraine has today. Nevertheless, as Mr. Bush later recalled, "I wanted no appeasement."

A little more than a decade later, however, the U.S. is a changed country. Because of the experiences in Iraq and Afghanistan, to suggest sending even a few thousand troops to fight anywhere for any reason is almost unthinkable. The most hawkish members of Congress don't think it safe to argue for a ground attack on the Islamic State or for a NATO troop presence in Ukraine. There is no serious discussion of reversing the cuts in the defense budget, even though the strategic requirements of defending U.S. allies in Europe, Asia and the Middle East have rarely been more manifest while America's ability to do so has rarely been more in doubt.

But Americans, their president and their elected representatives have accepted this gap between strategy and capability with little comment—except by those who would abandon the strategy. It is as if, once again, Americans believe their disillusionment with the use of force somehow means that force is no longer a factor in international affairs.

In the 1930s, this illusion was dispelled by Germany and Japan, whose leaders and publics very much believed in the utility of military power. Today, as the U.S. seems to seek its escape from power, others are stepping forward, as if on cue, to demonstrate just how effective raw power really can be.

Once again, they are people who never accepted the liberal world's definition of progress and modernity and who don't share its hierarchy of values. They are not driven primarily by economic considerations. They have never put their faith in the power of soft power, never believed that world opinion (no matter how outraged) could prevent successful conquest by a determined military. They are undeterred by their McDonald's. They still believe in the old-fashioned verities of hard power, at home and abroad. And if they are not met by a sufficient hard-power response, they will prove that, yes, there is such a thing as a military solution.

This lesson won't be lost on others who wield increasing power in other parts of the world and who, like Vladimir Putin's autocratic Russia and Abu Bakr al-Baghdadi's fanatical Islamic State, have grievances of their own. In the 1930s, when things began to go bad, they went very bad very quickly. Japan's invasion of Manchuria in 1931 exposed the hollow shell that was the League of Nations—a lesson acted upon by Hitler and Mussolini in the four years that followed. Then Germany's military successes in Europe emboldened Japan to make its move in East Asia on the not unreasonable assumption that Britain and the U.S. would be too distracted and overstretched to respond. The successive assaults of the illiberal aggressors, and the successive failures of the liberal powers, thus led to a cascade of disasters.

The wise men and women of our own time insist that this history is irrelevant. They tell us, when they are not announcing America's irrevocable decline, that our adversaries are too weak to pose a real threat, even as they pile victory upon victory. Russia is a declining power, they argue. But then, Russia has been declining for 400 years. Can declining powers not wreak havoc? Does it help us to know that, in retrospect, Japan lacked the wealth and power to win the war it started in 1941?

Let us hope that those who urge calm are right, but it is hard to avoid the impression that we have already had our 1931. As we head deeper into our version of the 1930s, we may be quite shocked, just as our forebears were, at how quickly things fall apart.

This piece was originally published by Wall Street Journal.

Financial advisors offer their clients many advantages, such as setting reasonable savings goals, avoiding fraudulent investments and mistakes like buying high and selling low, and determining the right level of risk for a particular household. However, these same advisors are often incentivized to choose funds that increase their own financial rewards, and the nature and amount of the fees received by advisors may not be transparent to their clients, and small-scale savers may not be able to access affordable advice at all.  What is in the best interest of an individual may not be in the best interest of his or her financial advisor.

To combat this problem, the Department of Labor (DoL) recently proposed a regulation designed to increase consumer protection by treating some investment advisors as fiduciaries under ERISA and the 1986 Internal Revenue Code.  The proposed conflict of interest rule is an important step in the right direction to increasing consumer protections.  It addresses evidence from a February 2015 report by the Council of Economic Advisers suggesting that consumers often receive poor recommendations from their financial advisors and that as a result their investment returns on IRAs are about 1 percentage point lower each year.   Naturally, the proposal is not without its controversies and it has already attracted at least 775 public comments, including one from us .

For us, the DoL’s proposed rule is a significant step in the right direction towards increased consumer protection and retirement security.  It is important to make sure that retirement advisors face the right incentives and place customer interests first.  It is also important make sure savers can access good advice so they can make sound decisions and avoid costly mistakes.  However, some thoughtful revisions are needed to ensure the rule offers a net benefit. 

If the rule causes advisors’ compliance costs to rise, they may abandon clients with small-scale savings, since these clients will no longer be profitable for them.  If these small-scale savers are crowded out of the financial advice market, we might see the retirement savings gap widen.  Therefore we encourage the DoL to consider ways to minimize or manage these costs, perhaps by incentivizing advisors to continue guiding these types of clients.  We also worry that the proposed rule does not adequately clarify the difference between education and advice, and encourage the DoL to close any potential loopholes by standardizing the general educational information that advisors can share without triggering fiduciary responsibility (which DoL is trying to do).  Finally, the proposed rule could encourage some advisors to become excessively risk averse in an overzealous attempt to avoid litigation or other negative consequences.  Extreme risk aversion could decrease market returns for investors and the ‘value-add’ of professional advisors, so we suggest the DoL think carefully about discouraging conflicted advice without also discouraging healthy risk.

The proposed rule addresses an important problem, but in its current form it may open the door to some undesirable or problematic outcomes.  We explore these issues in further detail in our recent paper.

Introduction

I would like to thank the Department for giving me the opportunity to testify on this important issue. The document I submitted to you is more general than most of the comments you have received, talking about the issues facing retirement savers and policymakers, rather than engaging in a point-by-point discussion of the detailed DOL proposal¹.

Issues around Retirement Saving

1. Most workers in the bottom third of the income distribution will rely on Social Security to support them in retirement and will save little. Hence it is vital that we support Social Security in roughly its present form and make sure it remains funded, either by raising revenues or by scaling back benefits for higher income retirees, or both.

2. Those in the middle and upper middle income levels must now rely on 401k and IRA funds to provide income support in retirement. Many and perhaps most households lack a good understanding of the amount they need to save and how to allocate their savings. This is true even of many savers with high levels of education and capabilities.

3. The most important mistakes made are: not saving enough; withdrawing savings prior to retirement; taking Social Security benefits too early² ; not managing tax liabilities effectively; and failing to adequately manage risk in investment choices. This last category includes those who are too risk averse and choose low-return investments as well as those that overestimate their own ability to pick stocks and time market movements. These points are discussed in the paper I submitted to DoL in July. They indicate that retirement savers can benefit substantially from good advice.

4. The market for investment advice is one where there is asymmetric information and such markets are prone to inefficiency. It is very hard to get incentives correctly aligned. Professional standards are often used as a way of dealing with such markets but these are only partially successful. Advisers may be compensated through fees paid by the investment funds they recommend, either a load fee or a wrap fee. This arrangement can create an incentive for advisers to recommend high fee plans.

5. At the same time, advisers who encourage increased saving, help savers select products with good returns and adequate diversification, and follow a strategy of holding assets until retirement provide benefits to their clients.

Implications for the DoL’s proposed conflicted interest rule

1. Disclosure. There should be a standardized and simple disclosure form provided to all households receiving investment advice, detailing the fees they will be paying based on the choices they make. Different investment choices offered to clients should be accompanied by a statement describing how the fees received by the adviser would be impacted by the alternative recommendations made to the client.

2. Implications for small-scale savers. The proposed rule will bring with it increased compliance costs. These costs, combined with a reluctance to assume more risk and a fear of litigation, may make some advisers less likely to offer retirement advice to households with modest savings. These households are the ones most in need of direction and education, but because their accounts will not turn profits for advisors, they may be abandoned. According to the Employee Benefits Security Administration (EBSA), the proposed rule will save families with IRAs more than $40 billion over the next decade. However, this benefit must be weighed against the attendant costs of implementing the rule. It is possible that the rule will leave low- and medium-income households without professional guidance, further widening the retirement savings gap. The DoL should consider ways to minimize or manage these costs. Options include incentivizing advisors to continue guiding small-scale savers, perhaps through the tax code, and promoting increased financial literacy training for households with modest savings. Streamlining and simplifying the rules would also help.

3. Need for Research on Online Solutions. The Administration has argued that online advice may be the solution for these savers, and for some fraction of this group that may be a good alternative. Relying on online sites to solve the problem seems a stretch, however. Maybe at some time in the future that will be a viable option but at present there are many people, especially in the older generation, who lack sufficient knowledge and experience to rely on web solutions. The web offers dangers as well as solutions, with the potential for sub-optimal or fraudulent advice. I urge the DoL to commission independent research to determine how well a typical saver does when looking for investment advice online. Do they receive good advice? Do they act on that advice? What classes of savers do well or badly with online advice? Can web advice be made safer? To what extent do persons receiving online advice avoid the mistakes described earlier?

4. Pitfalls of MyRA. Another suggestion by the Administration is that small savers use MyRA as a guide to their decisions and this option is low cost and safe, but the returns are very low and will not provide much of a cushion in retirement unless households set aside a much larger share of their income than has been the case historically.

5. Clarifications about education versus advice. The proposed rule distinguished education from advisement. An advisor can share general information on best practices in retirement planning, including making age-appropriate asset allocations and determining the ideal age at which to retire, without triggering fiduciary responsibility. This is certainly a useful distinction. However, some advisors could frame this general information in a way that encourages clients to make decisions that are not in their own best interest. The DoL ought to think carefully about the line between education and advice, and how to discourage advisors from sharing information in a way that leads to future conflicts of interest. One option may be standardizing the general information that may be provided without triggering fiduciary responsibility.

6. Implications for risk management. Under the proposed rule advisors may be reluctant to assume additional risk and worry about litigation. In addition to pushing small-scale savers out of the market, the rule may encourage excessive risk aversion in some advisors. General wisdom suggests that young savers should have relatively high-risk portfolios, de-risking as they age, and ending with a relatively low-risk portfolio at the end of the accumulation period. The proposed rule could cause advisors to discourage clients from taking on risk, even when the risk is generally appropriate and the investor has healthy expectations. Extreme risk aversion could decrease both market returns for investors and the “value-add” of professional advisors. The DoL should think carefully about how it can discourage conflicted advice without encouraging overzealous risk reductions.

The proposed rule is an important effort to increase consumer protection and retirement security. However, in its current form, it may open the door to some undesirable or problematic outcomes. With some thoughtful revisions, I believe the rule can provide a net benefit to the country.

^{1. Baily’s work has been assisted by Sarah E. Holmes. He is a Senior Fellow at the Brookings Institution and a Director of The Phoenix Companies, but the views expressed are his alone.}

^{2. As you know, postponing Social Security benefits yields an 8 percent real rate of return, far higher than most people earn on their investments. For most of those that can manage to do so, postponing the receipt of benefits is the best decision.}

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Super PACs have already spent tens of millions of dollars in the race for the GOP presidential nomination, with more to come. Expert Anthony Corrado says that the unlimited spending by the PACs, made possible by two Supreme Court decisions, is giving wealthy individuals unprecedented influence in the 2012 elections.

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The release of 2015 NAEP scores showed national achievement stalling out or falling in reading and mathematics.  The poor results triggered speculation about the effect of Common Core State Standards (CCSS), the controversial set of standards adopted by more than 40 states since 2010.  Critics of Common Core tended to blame the standards for the disappointing scores.  Its defenders said it was too early to assess CCSS’s impact and that implementation would take many years to unfold. William J. Bushaw, executive director of the National assessment Governing Board, cited “curricular uncertainty” as the culprit.  Secretary of Education Arne Duncan argued that new standards typically experience an “implementation dip” in the early days of teachers actually trying to implement them in classrooms.

In the rush to argue whether CCSS has positively or negatively affected American education, these speculations are vague as to how the standards boosted or depressed learning.  They don’t provide a description of the mechanisms, the connective tissue, linking standards to learning.  Bushaw and Duncan come the closest, arguing that the newness of CCSS has created curriculum confusion, but the explanation falls flat for a couple of reasons.  Curriculum in the three states that adopted the standards, rescinded them, then adopted something else should be extremely confused.  But the 2013-2015 NAEP changes for Indiana, Oklahoma, and South Carolina were a little bit better than the national figures, not worse.[i]  In addition, surveys of math teachers conducted in the first year or two after the standards were adopted found that:  a) most teachers liked them, and b) most teachers said they were already teaching in a manner consistent with CCSS.[ii]  They didn’t mention uncertainty.  Recent polls, however, show those positive sentiments eroding. Mr. Bushaw might be mistaking disenchantment for uncertainty.[iii] 

For teachers, the novelty of CCSS should be dissipating.  Common Core’s advocates placed great faith in professional development to implement the standards.  Well, there’s been a lot of it.  Over the past few years, millions of teacher-hours have been devoted to CCSS training.  Whether all that activity had a lasting impact is questionable.  Randomized control trials have been conducted of two large-scale professional development programs.  Interestingly, although they pre-date CCSS, both programs attempted to promote the kind of “instructional shifts” championed by CCSS advocates. The studies found that if teacher behaviors change from such training—and that’s not a certainty—the changes fade after a year or two.  Indeed, that’s a pattern evident in many studies of educational change: a pop at the beginning, followed by fade out.  

My own work analyzing NAEP scores in 2011 and 2013 led me to conclude that the early implementation of CCSS was producing small, positive changes in NAEP.[iv]  I warned that those gains “may be as good as it gets” for CCSS.[v]  Advocates of the standards hope that CCSS will eventually produce long term positive effects as educators learn how to use them.  That’s a reasonable hypothesis.  But it should now be apparent that a counter-hypothesis has equal standing: any positive effect of adopting Common Core may have already occurred.  To be precise, the proposition is this: any effects from adopting new standards and attempting to change curriculum and instruction to conform to those standards occur early and are small in magnitude.   Policymakers still have a couple of arrows left in the implementation quiver, accountability being the most powerful.  Accountability systems have essentially been put on hold as NCLB sputtered to an end and new CCSS tests appeared on the scene.  So the CCSS story isn’t over.  Both hypotheses remain plausible. 

Reading Instruction in 4^th and 8^th Grades

Back to the mechanisms, the connective tissue binding standards to classrooms.  The 2015 Brown Center Report introduced one possible classroom effect that is showing up in NAEP data: the relative emphasis teachers place on fiction and nonfiction in reading instruction.  The ink was still drying on new Common Core textbooks when a heated debate broke out about CCSS’s recommendation that informational reading should receive greater attention in classrooms.[vi] 

Fiction has long dominated reading instruction.  That dominance appears to be waning.

After 2011, something seems to have happened.  I am more persuaded that Common Core influenced the recent shift towards nonfiction than I am that Common Core has significantly affected student achievement—for either good or ill.   But causality is difficult to confirm or to reject with NAEP data, and trustworthy efforts to do so require a more sophisticated analysis than presented here.

Four lessons from previous education reforms

Nevertheless, the figures above reinforce important lessons that have been learned from previous top-down reforms.  Let’s conclude with four:

1.  There seems to be evidence that CCSS is having an impact on the content of reading instruction, moving from the dominance of fiction over nonfiction to near parity in emphasis.  Unfortunately, as Mark Bauerlein and Sandra Stotsky have pointed out, there is scant evidence that such a shift improves children’s reading.[vii]

2.  Reading more nonfiction does not necessarily mean that students will be reading higher quality texts, even if the materials are aligned with CCSS.   The Core Knowledge Foundation and the Partnership for 21^st Century Learning, both supporters of Common Core, have very different ideas on the texts schools should use with the CCSS.[viii] The two organizations advocate for curricula having almost nothing in common.

3.  When it comes to the study of implementing education reforms, analysts tend to focus on the formal channels of implementation and the standard tools of public administration—for example, intergovernmental hand-offs (federal to state to district to school), alignment of curriculum, assessment and other components of the reform, professional development, getting incentives right, and accountability mechanisms.  Analysts often ignore informal channels, and some of those avenues funnel directly into schools and classrooms.[ix]  Politics and the media are often overlooked.  Principals and teachers are aware of the politics swirling around K-12 school reform.  Many educators undoubtedly formed their own opinions on CCSS and the fiction vs. nonfiction debate before the standard managerial efforts touched them.

4.  Local educators whose jobs are related to curriculum almost certainly have ideas about what constitutes good curriculum.  It’s part of the profession.  Major top-down reforms such as CCSS provide local proponents with political cover to pursue curricular and instructional changes that may be politically unpopular in the local jurisdiction.  Anyone who believes nonfiction should have a more prominent role in the K-12 curriculum was handed a lever for promoting his or her beliefs by CCSS. I’ve previously called these the “dog whistles” of top-down curriculum reform, subtle signals that give local advocates license to promote unpopular positions on controversial issues.

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The recent outbreak of hostilities between Israel and Hamas is a serious setback to ongoing Turkish-Israeli normalization efforts. Israel launched Operation Protective Edge, its third operation against Hamas since leaving Gaza in 2005, in response to rockets and missiles fired by Hamas from Gaza into Israel. As in Israel’s two previous Gaza campaigns, Operation Cast Lead (2008-09) and Operation Pillar of Defense (2012), Turkey quickly condemned Israel’s actions, yet offered to mediate, together with Qatar, between Israel and Hamas.

After Turkish Prime Minister Recep Tayyip Erdogan, in the midst of his presidential campaign, equated Israeli policy towards Gaza to a “systematic genocide” and accused Israel of surpassing “Hitler in barbarism,” Israel accepted an Egyptian cease-fire proposal. Israeli Foreign Minister Avigdor Lieberman accused Turkey and Qatar of “sabotaging the cease-fire proposal,” and Israeli Prime Minister Benjamin Netanyahu complained to U.S. Secretary of State John Kerry about Erdogan’s statements.

Turkish leaders’ harsh rhetoric sparked violent demonstrations in front of Israel’s embassy in Ankara and its consulate in Istanbul, lead the Israeli government to evacuate diplomats’ families, and issue a travel warning advising against travel to Turkey, which prompted numerous cancellations of tourist travel. On Sunday, Netanyahu refrained from declaring Turkish-Israeli reconciliation dead, but accused Erdogan of anti-Semitism more aligned with Tehran then the West.

These heightened Israeli-Turkish tensions come just as the two countries were negotiating a compensation deal for families of victims of the May 31, 2010 Mavi Marmara incident. The deal was intended to facilitate a long-awaited normalization between the two countries, more than a year after Israel’s official apology. The draft stipulated an estimated $21 million in Israeli compensation, the reinstatement of each country’s ambassador, and the reestablishment of a senior-level bilateral dialogue. However, a series of issues has prevented the deal’s finalization, including: Turkish domestic political considerations about the timing (related to March 2014 municipal elections and August 2014 presidential elections) and Israeli demands for Turkish commitments to block future lawsuits related to the Marmara incident.

With the ongoing Gaza conflict, prospects for normalization have again faded at least in the short term, and policymakers on both sides seem to have accepted a limited relationship. Erdogan even declared publicly that as long as he’s in power, there is no chance “to have any positive engagement with Israel”, dismissing any prospect for normalization. Israeli-Turkish animosity runs deep, not only among leaders, but at the grassroots level as well. While it may be difficult to look beyond the short term, a focus on the broader regional picture suggests four reasons why the two countries would benefit from restoring ties.

• First, they share strategic interests. Turkey and Israel see eye to eye on many issues: preventing a nuclear Iran; concerns over spillover from the Syrian civil war; and finally, the rise of the Islamic State of Iraq and the Levant (ISIS/ISIL) and security and stability in Iraq. A resumed dialogue and renewed intelligence sharing can pave the way for more concrete cooperation between Turkey and Israel on all these regional issues, with development of a joint approach toward Syria topping the agenda.
• Second, regional environment may be beyond their control, the bilateral relationship is not. Normalization can eliminate one factor of instability in an unstable region.
• Third, Washington sees greater cooperation and cohesiveness in the U.S.-Turkey-Israel triangle as essential. President Obama has sought to restore a dialogue between Ankara and Jerusalem, including efforts to “extract” an Israeli apology and Turkish acceptance. Senior U.S. officials remain active in trying to improve the Turkish-Israeli relationship.
• Fourth, normalization may convey benefits in the economic sphere, with possible cooperation on natural gas, tourism, and enhanced trade. Gas in particular is viewed as a possible game-changer. In 2013, bilateral trade first crossed the $5 billion mark, and data from the first six months of 2014 indicates a continued rise. A political thaw can help accelerate these joint business opportunities. 

Nevertheless, at this stage it is clear that serious U.S. involvement is required for Turkish-Israeli rapprochement to succeed, even in a limited fashion. At present, there are far greater challenges for U.S. foreign policy in the region. The question now is whether the relationship between two of America’s closest regional allies reflects a new “normal,” or whether the leaders of both countries – and the U.S. – can also muster the political will to reconnect the US-Turkey-Israel triangle along more productive lines.

Check back to Brookings.edu for Dan Arbell’s upcoming analysis paper: The U.S.-Turkey-Israel Triangle.