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6831. U.S. Policy on Caspian Energy Development and Exports: Mini-Case and Paradigm

Author:
Graham T. Allison and Emily Van Buskirk
Publication Date:
05-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The date is July 1, 2001. Real world history and trends occurred as they did through March 19, 2001 — except for the hypothetical departures specified in the case below. Events after March 19 that are not specified in this case are assumed to be straight - line projections of events as they stand on March 19. Assume, for example, that sporadic violence continues in the Middle East at the current level of intensity; Britain and the U.S. are nearing the end of their review of UN sanctions against Iraq, and will soon make recommendations on refocusing the sanctions to make them “smarter”; as expected, Mohammad Khatami was reelected as President of Iran on June 8 with a mandate for continued reform; the price of oil is $25/barrel; events in Chechnya and Ukraine, and negotiations over Nagorno - Karabagh will continue as before.
Topic:
Conflict Resolution, Security, Democratization, and Energy Policy
Political Geography:
Britain, Russia, United States, Iraq, Ukraine, Middle East, Asia, and United Nations

6832. Negotiations on Nagorno-Karabagh: Where Do We Go From Here? (Summary and Transcript Publication, with Photographs)

Author:
Brenda Shaffer, Carey Cavanaugh, Hamlet Isaxanli, and Ronald Suny
Publication Date:
04-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
From April 3 - 7, 2001 the Organization for Security and Cooperation in Europe convened negotiations in Key West, Florida, aimed at achieving a peace settlement for the Nagorno - Karabagh conflict. U.S. Secretary of State Colin Powell opened this set of talks between Azerbaijani President Heydar Aliyev and Armenian President Robert Kocharian, each of whom met separately with Secretary Powell in Florida and, subsequently, in Washington D.C. with President Bush. The United States, France and Russia were the mediators at the negotiations, as co - chairs of the OSCE “Minsk Group” (which includes 13 countries) established in 1992 as part of an effort to end the conflict. The chief negotiator on the U.S. side at Key West was Ambassador Carey Cavanaugh, who is the State Department's Special Negotiator for the conflict on a constant basis. The negotiations were held in proximity format, meaning that the facilitators held separate talks with each of the heads of Azerbaijan and Armenia.
Topic:
Conflict Resolution, Security, Democratization, and Energy Policy
Political Geography:
Russia, United States, Europe, Washington, Asia, Armenia, Azerbaijan, and Florida

6833. Sea of Instability: Caspian Politics and Pipelines (Event Summary)

Author:
Thomas Goltz
Publication Date:
04-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Journalist Thomas Goltz gave a seminar on April 10 entitled, "Sea of Instability: Caspian Politics and Pipelines," and jointly sponsored by the Caspian Studies Program and the Davis Center for Russian Studies. Goltz provided his own unique perspective on the Caspian Region and its complex geo-political situation. He did this by means of a twenty-minute video presentation entitled "Oil Odyssey 2000" (of the epic delivery of the first barrel of oil, via the planned route of the Baku-Tbilisi-Ceyhan pipeline, on three-wheeled motorcycle) and a subsequent talk on the events that took place following the trip. Video summary: The documentary (needs to be seen to be believed) candidly charts the events surrounding the attempt to transport the first barrel of "Caspian crude" from Baku to Ceyhan. The video follows 26 intrepid travelers as they wind their way (Azerbaijan, Georgia, Turkey) through the Caucasus on wheels. While the group has its fair share of misfortune (breakdowns, border crossing issues and even an unfortunate accident), the film clearly shows how the people along the way are very excited by the prospects of the pipeline — almost every stop looked like a party! A public relations coup de grace for everyone involved, Oil Odyssey manages to cover the Caucasus — from the larger-than-life leaders to the everyman to the ex-patriots (and shows how they are all willing to jump through hoops in the name of crude!) — in its imagined mystery and hardened reality. Seminar presentation: In a brief follow-up to the video, Goltz added that partially as a result of delivering the first symbolic barrel of Caspian crude: the Turkish oil establishment became more serious about the Baku-Ceyhan pipeline; a Sponsors' Group put down approximately $25 million to fund the basic engineering studies for the pipeline (engineers are currently mapping and examining the route), which will conclude in May/June. Support for the Baku-Tbilisi-Ceyhan pipeline has been building among the oil companies. One year ago, Goltz reminded, the Clinton administration was repeatedly sending delegations to England to lure John Brown (of BP Amoco) into sponsoring Baku-Ceyhan project. This year, the roles have been reversed, with John Brown sending delegations to Washington to convince the new U.S. administration not to change official policy on the pipeline or the Iran-Libya Sanctions Act (which might open up a new route for Caspian oil). Goltz noted other factors that have increased the lure of Baku-Ceyhan, including significant finds of natural gas at the Shah Deniz oil fields, raising the possibility of the construction of a parallel pipeline (without extra engineering cost) and the discovery of "historic levels" of hydrocarbon levels in the Kazakh section of the Caspian sea (Kashagan). This, followed by the unexpected announcement by Nursultan Nazarbayev (President of Kazakhstan) to commit a significant portion of the oil from this field to the Baku-Ceyhan pipeline, has also raised interest. Rumor also has it that there is a split between the Russian Federation and the Russian oil oligarchs operating in the Caspian, who might want BTC as an option for exporting their product. Goltz identified both regional and local security as important concerns both in policy towards the pipeline and in the region on the whole. On a regional level, there are the continuing Caucasus conflicts (in Ossetia and Abkhazia, for example). On the local level, there are the drastically reduced social conditions outside of the capital cities. Goltz notes that the rural/urban dichotomy in the Caucasus is perhaps more pronounced now than ever before, citing Yerevan as the most extreme example. Goltz noted that the current debate on Armenia is focused on when it will go from a dying state to a dead one — in other words, when there is no one left, because of massive emigration. Goltz also pointed to the Russian Federation's decision to impose the visa regime upon Georgia as a potential catalyst for regional change. He theorizes that the estimated 500,000+ Georgians will now de facto become loyal towards the Russian state as it is providing them with the means to live. The same process of out-migration is occurring in Azerbaijan, where an entire generation of youth has left the provincial cities for Russia to try and make a living. According to Goltz, the oil companies are picking up the "social slack" in an attempt to compensate for this phenomenon. They are providing services (schools, wells, drinking water, etc.) in what Goltz terms "enlightened self-interest" — as they do not want to see a revolution on their hands. Q A Session: In response to a question about where the final pipeline will actually end up (i.e. is there a chance it will go through Armenia because of the Bush administration's design), Goltz recalled the initial stages of the Baku-Ceyhan project in 1992, when Armenia was prepared to drop the issue of "genocide" under the Ottoman Empire to have the pipeline go through its territory. Even though that didn't happen, Goltz pointed out that Turkish and Armenian officials do have some sort of a dialogue, and that the U.S is indeed promoting the dialogue heavily. Even though he views this exchange as positive, Goltz expressed no real hope for an impending resolution. Goltz expressed doubt that the pipeline might be moved, as logistically so much has already been done to get the project to its current engineering phase that drastic changes would ultimately reshape the entire endeavor. Goltz explained BP's turnaround on Baku-Ceyhan as being simply a matter of the number crunchers in London deciding that the Caspian region will play a serious role in BP's future (as it views itself over the next two decades). When asked if the Armenian route is purely geographically better, Goltz answered that of course the easiest route would be across Karabagh and Armenia — every inch you shorten the pipeline, the more money you save (cutting out swaths of pipeline). However, we can't simply eliminate all of the politics surrounding the situation that prevent this scenario from taking place. Goltz noted that there is a general need to separate U.S. policy from that of the mega-nationals (oil companies). He hinted that there is more enthusiasm on the part of oil companies right now, and not the U.S. government. And if the Russian Federation had been able to get their act together in the late 80s / early 90s and hadn't broken contracts and deals made on Siberia, the oil companies wouldn't have traveled down to Baku in the first place. Of course now corruption in Azerbaijan is forcing some companies to reconsider their position. While Iran would be geographically easier (to transport oil) than even Armenia, there remains the issue of which Iran are you dealing with (there are many levels). It is far easier to work in Azerbaijan, where once you have Aliyev's support, anything will get done. When the topic of presidential succession arose, Goltz mentioned that Ilham (President Aliyev's son) has not mentioned anything about running for presidential office in 2003. In fact, Goltz offered that the most likely scenario would involve someone else assuming office first, so that this person could make all the mistakes and then Ilham could come to the 'rescue'. Goltz also discounted the "certain chaos" that will supposedly occur after Aliyev is gone. Instead he feels there will be a credible succession, most likely led by someone who is studying abroad and interacting with the West. n response to a question regarding apparent discrepancies in statements make by President Aliyev and his son on issues as Armenia and Russia, Goltz offered the point that Azerbaijan is essentially a friendless state. It has to keep as many balls up in the air as possible — leading the Mr. Aliyevs to say whatever is necessary to keep other nations involved and interested in Azerbaijan. Things such as Section 907 and the embargo of Armenia, both of which prevent the U.S. and the E.U., respectively, from becoming true friends of Azerbaijan, bolster this position. Goltz dismissed the idea that underground movements in Azerbaijan will rise up to lead the large refugee population to recapture Armenian-occupied territory. In his opinion, while the refugee population wants its land back, it also simply wants peace. Goltz feels that Aliyev successfully neutered much of the pro-war opposition by having the three current peace proposals translated into Azeri, published in the newspapers and forcing his opponents in parliament to debate the possibilities. Unfortunately, the Azeri government has ignored the refugees, both financially and socially. The refugees are an uprooted and socially displaced group that lacks ties to formal Azerbaijan — this is one of the reasons why there are so many young men leaving for Russia to find work. At the same time, however, the only people talking about war are power-thirsty politicians from Baku who have never been to the regions and are not in touch with current refugee sentiments. Refugees are more concerned with living day-to-day than they are with mounting an armed attack on occupied territory. When asked about the refugee population's thoughts on the possibility of resettlement, Goltz agreed that the people are, by necessity, settling down. As each year passes, they take more steps towards solidifying their current living situation simply as a means of survival. Of course, in all refugee situations, governments are reluctant to endorse permanent settlement as it means forsaking their occupied territory. There is a strong resentment towards the U.S. — as it has been involved in many of the processes (democratization, etc.) that have changed Azerbaijan significantly from its former communist self, yet there have been no obvious improvements in the average person's living situation. The people are becoming frustrated with the "let's wait a little while longer" approach, as there has been no sign of trickle-down from oil investments and foreign aid.
Topic:
Conflict Resolution, Security, Democratization, and Energy Policy
Political Geography:
Russia, United States, Europe, and Asia

6834. Overview of Federal Programs to Enhance State and Local Preparedness for Terrorism with Weapons of Mass Destruction

Author:
Gregory D. Koblentz
Publication Date:
04-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Over the past five years, the United States has launched an unprecedented series of initiatives to prepare for the possibility of a terrorist attack employing a weapon of mass destruction (WMD) within the United States. These initiatives, originating in Congress, the White House, and Cabinet departments, have resulted in a complex web of programs to improve the preparedness and response capabilities of local, state, and federal agencies by providing specialized equipment, training, and planning assistance. While a debate has raged over the risk posed by terrorist groups seeking to cause mass casualties with chemical, biological, nuclear, or radiological weapons, federal spending on domestic preparedness has climbed steadily despite the lack of consensus on the severity of the threat. From 1997 to 2000, federal spending to prepare for WMD terrorism swelled from roughly $130 million to $1.4 billion, a tenfold increase. Almost one-quarter of the entire domestic preparedness budget, and roughly one-half of federal spending on preparedness and response for WMD terrorism, has been in the form of federal assistance to state and local governments.
Topic:
Environment and Terrorism
Political Geography:
United States

6835. U.S. Preparations for Biological Terrorism: Legal Limitations and the Need for Planning

Author:
Juliette N. Kayyem
Publication Date:
03-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The threat of terrorism has focused the attention of the United States on domestic preparedness. Although the likelihood of a domestic terrorist attack may be relatively low, the country is nonetheless preparing first responders, local, state and federal officials, and the public on what to do and what to expect should one occur. Lawyers have only recently begun to consider the issue of domestic preparedness. Any steps to improve preparedness must, of course, involve an assessment by the proper legal authorities to determine their lawfulness and legitimacy.
Topic:
Environment, National Security, and Terrorism
Political Geography:
United States

6836. The Epidemiology of Microeconomic Expectations

Author:
Christopher D. Carroll
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Since the foundational work of Keynes (1936), macroeconomists have emphasized the importance of agents' expectations in determining macroeconomic outcomes. Yet in recent decades macroeconomists have devoted almost no effort to modeling actual empirical expectations data, instead assuming all agents' expectations are 'rational.' This paper takes up the challenge of modeling empirical household expectations data, and shows that a simple, standard model from epidemiology does a remarkably good job of explaining the deviations of household inflation and unemployment expectations from the 'rational expectations' benchmark. Furthermore, a microfoundations or 'agent-based' version of the model may be able to explain, in a way that still permits aggregation, stark rejections of the pure rational expectations framework like Souleles's (2002) finding that members of different demographic groups have sharply different predictions for macroeconomic aggregates like the inflation rate.
Topic:
Economics and International Trade and Finance
Political Geography:
United States and Latin America

6837. Nasty, Brutish and Long: America's War on Terrorism

Author:
Ivo H. Daalder and James M. Lindsay
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The post–cold war era ended abruptly on the morning of September 11, 2001. From the moment terrorists turned jetliners into weapons of mass destruction, the United States was inescapably engaged in a new “war” against global terrorism. The Bush administration now intends to make that war the central organizing principle of America's foreign and defense policies.
Topic:
Security, Defense Policy, and Terrorism
Political Geography:
United States and America

6838. The Aid and Reconstruction Agenda for Afghanistan

Author:
Michael E. O'Hanlon
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
With the Taliban and al Qaeda largely defeated, a temporary coalition government taking power in Afghanistan, the Freedom Bridge near Uzbekistan finally open to relief efforts, and foreign donors promising significant aid more generally, the future looks increasingly promising for the Afghan people. But many challenges remain, even beyond the immediate priority of completing the military operation. Without rapid delivery of sufficient food, shelter, and medical supplies, Afghanistan could still experience a humanitarian catastrophe this winter. Without great care to shore up the coalition government, it could fail, just as state-building efforts have failed with disastrous consequences in places such as Angola, Rwanda, and Somalia in recent years. Without sufficient delivery of reconstruction aid, Afghanistan could remain mired in the same poverty and chaos that gave rise to the Taliban in the first place.
Topic:
Security, Defense Policy, and Terrorism
Political Geography:
Afghanistan, United States, Uzbekistan, Rwanda, Somalia, and Angola

6839. Evolution of Japan's Policy Toward Economic Integration

Author:
Naoko Munakata
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
On October 22, 2000, Japanese Prime Minister Yoshiro Mori and Singapore Prime Minister Goh Chok Tong agreed to formal negotiations for the Japan-Singapore Economic Agreement for a New Age Partnership (JSEPA) in January 2001, in light of the September 2000 report from the Japan-Singapore Free Trade Agreement (JSFTA) Joint Study Group. It was the first time Japan entered into negotiations concerning regional economic integration. With a strong emphasis on the need to address the new challenges globalization and technological progress pose; the Joint Study Group explored a possible .New Age FTA. between the two countries, which Prime Minister Goh proposed in December 1999. Thus, for Japan the JSEPA marked a major turning point in promoting regional economic integration.
Topic:
Security, Foreign Policy, and International Trade and Finance
Political Geography:
Russia, United States, Japan, China, Europe, Israel, and Asia

6840. Pakistan's Madrassahs: Ensuring a System of Education not Jihad

Author:
P.W. Singer
Publication Date:
11-2001
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Pakistan's religious schools, Madrassahs, trace their traditions back through nearly a thousand years of Islamic teaching. Over the last decades, however, they increasingly have played a role contrary to their original intent. Founded as centers of learning for the next generation of Islamic scholars and clerics, the schools now increasingly dominate the education sphere. The present danger is that a minority of these schools have built extremely close ties with radical militant groups and play a critical role in sustaining the international terrorist network. Madrassahs. displacement of a public education system is also worrisome to the stability of the Pakistani state and its future economic prospects.
Topic:
Security, Defense Policy, and Terrorism
Political Geography:
Pakistan and United States