[RED DEMOCRATICA] CFR.org Daily Brief, June 25, 2010

 

June 25, 2010 View this newsletter as a web page on CFR's website. EXECUTIVE SUMMARY - G20 Leaders Gather in Toronto - Koreas Observe War Anniversary - Somalia Named Most Failed State - Compromise on U.S. Financial Reform Top of the Agenda: G20 Leaders Gather in Toronto G20 leaders began gathering in Toronto for this weekend's summit amid warnings that their failure to agree on major financial and economic issues (WashPost) could cost the world tens of millions of jobs. After coming together to craft policies stave off the financial crisis in 2008, leaders come to the summit this time divided by national interests. Regulating the global financial regime remains a contentious issue, including how strict new bank capital requirements should be and whether to impose an international financial transaction tax. Analysts say the increasing divide between the United States and Europe over addressing their economic woes could hamper action within the G20. With the EU still reeling from Greece's debt crisis, European delegates want to push deficit-cutting austerity measures (al-Jazeera), while U.S. officials desire to continue stimulus spending to encourage growth. Speaking ahead of the G8 and G20 meetings, U.S. Treasury Secretary Timothy Geithner said Europe should focus on growth (BBC) as well as cut deficits. However, German Finance Minister Wolfgang Schaeuble rejected calls for more stimulus (Daily Finance) saying: "While U.S. policymakers like to focus on short-term corrective measures, we take the longer view and are, therefore, more preoccupied with the implications of excessive deficits and the dangers of high inflation." Analysis: CFR's Stewart Patrick says this weekend's G8 and G20 conferences mark a shift to a "multipolar age," particularly if the G20 is able to agree on a continuing path to a stable global recovery. CFR's Laurie Garrett examines how the dramatic shift in global power from the G8 to the G20 creates new uncertainties for commitments to global health and development. In the Wall Street Journal, Geithner and Lawrence Summers of the National Economic Council outline the U.S. agenda for the G20. Background: This CFR Backgrounder outlines the agendas of all twenty members of the summit. This interactive on global governance looks at the challenges of regulating the international financial system. MIDDLE EAST: Congress Approves Unilateral Iran Sanctions The U.S. Congress approved new unilateral energy and financial sanctions (al-Jazeera) against Iran in an effort to continue exerting pressure on the country's suspected nuclear weapons program. Gregory L. Schulte in Foreign Affairs examines whether it's too late to convince North Korea and Iran to dismantle their nuclear programs. And a number of experts weigh in on deterring a nuclear Iran in this CFR series of reports. Israel: Supporters of Gilad Shalit, an Israeli soldier held in Gaza by Hamas, are set to mark the fourth anniversary of his capture by holding rallies in Tel Aviv (BBC). Iraq: A series of attacks in Mosul and Baghdad killed nine police officers (NYT) late Wednesday and Thursday as the country's political turmoil continues. PACIFIC RIM: Koreas Observe War Anniversary North and South Korea commemorated the sixtieth anniversary of the beginning of the Korean War (AP). The two countries presented significantly different views of the origins of the conflict. This CFR Crisis Guide looks at the continuing struggle on the Korean Peninsula. China: Officials see new growth in domestic demand as a move away from a skewed economic model (NYT) that depends too heavily on exports for foreign consumption. SOUTH AND CENTRAL ASIA: Indian Official Heads to Islamabad Indian Home Minister P. Chidambaram and his Pakistani counterpart, Rehman Malik, will meet in Islamabad over the weekend (WSJ) in the latest in a series of high-level talks meant to improve relations between the nations. Chidambaram released four Pakistanis from Indian prisons ahead of the talks as a gesture of good will (AFP) and is likely to press for more action against the leaders of the 2008 Mumbai attacks. Afghanistan: Pakistan and Afghanistan agreed to strengthen their cooperation (Dawn) in fighting terrorism and extremism for the sake of regional security and development. U.S. and Pakistani officials say U.S. military troubles in Afghanistan have given Pakistan the opportunity to present itself to the Afghan government as a viable alternative partner (IHT). AFRICA: Somalia Named Most Failed State Somalia tops the Foreign Policy/Fund for Peace Failed States Index--as a country with a raging Islamist insurgency, a government that controls a few city blocks, and African Union peacekeepers with no peace to keep. CFR's Michael L. Baker examines international attempts to address Somalia-based piracy. In this Council Special Report, Bronwyn Bruton proposes a strategy to combat terrorism and promote development and stability in Somalia. Zimbabwe: After four days of talks, members of the Kimberly Process Certification Scheme--created to block conflict diamonds from world markets (VOA)--remained deadlocked on whether to remove a ban on the sale of diamonds from the Marange field in eastern Zimbabwe. AMERICAS: Compromise on U.S. Financial Reform Compromise by U.S. lawmakers on sweeping new rules for the financial sector could pave the way for a vote on the financial reform bill (WashPost) in both houses next week that could send the legislation to the president by July 4. United States: Defense Secretary Robert Gates said the United States is not bogged down in Afghanistan (USAToday), despite the delay of a planned offensive in the southern city of Kandahar. CFR President Richard Haass says President Obama should review Afghan policy with a focus on scaling back U.S. military presence and inducing Taliban leaders and troops to reject working with al-Qaeda and join the Afghan political process. This CFR Analysis Brief says in replacing General Stanley McChrystal with General David Petraeus, a well-known counterinsurgency strategist, Obama is betting that new leadership and old policy will equal victory in Afghanistan. EUROPE: U.S.-Russia Economic Summit With recent agreements on national security behind them, Presidents Barack Obama and Dmitry Medvedev turned to economics (IHT) at a summit Thursday. Obama pushed for more exports to Russia and Medvedev sought more U.S. business investment, especially in technology. CFR's Stephen Sestanovich called Medvedev's meetings in Silicon Valley, shortly before the summit, the "most interesting element" of his trip. Germany: Next week's presidential election will test Chancellor Angela Merkel's ruling center-right coalition (FT), which faces plummeting popularity in opinion polls.

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