Annual Report 2018

Annual Report 2018 Waves hit a fishing boat crewed Global relations are always With multilateralism under by Rohingya refugees in the Bay changing, always presenting threat, relations between of Bengal—near Cox’s Bazar in southeast Bangladesh—in June. new challenges. A constant is peoples and nations become (Clodagh Kilcoyne / Getty Images) the institute’s effectiveness that much more important. This in driving dialogue between is the unique value proposition countries that are not seeing of the EastWest Institute. eye-to-eye. — Maria Livanos Cattaui — Vartan Gregorian EWI’s unique formula This institute is distinguished of building trust among by its effective multinational adversaries and addressing dialogue work as well as its the sources of conflict is the success in integrating business necessary first step towards in the public policy debate. Its government engagement that results speak for themselves. leads to lasting solutions. — Condoleezza Rice — Amb. Thomas Pickering

“Building Trust, Delivering Solutions” is not only a slogan— it’s the EastWest Institute’s enduring appeal. — Adm. James Stavridis

Copyright © 2019 EastWest Institute Photos: Getty Images On the cover: Visitors at the Mori Building Digital Art Museum: teamLab Borderless—a nerve center of 520 computers and 470 projectors—in the Tokyo waterfront district of Odaiba. TeamLab’s interactive, digital art is a product of endless programming, testing and retesting— meant to dissolve barriers.

The EastWest Institute works to reduce international conflict, addressing seemingly intractable problems that threaten world security and stability. We forge new connections and build trust among global leaders and influencers, help create practical new ideas, and take action through our network of global decision-makers. Independent and nonprofit since our founding in 1980, we have offices in New York, Brussels, Moscow and San Francisco.

The EastWest Institute 10 Grand Central 155 E. 44th Street Suite 1105 New York, NY 10017 U.S.A. +1 (212) 824-4100

[email protected] www.eastwest.ngo Chairman’s President’s Letter Report Many observers argue More than ever, that in today’s age the conflict of growing distrust prevention work and nationalistic of the EastWest fervor, multilateralism Institute is of is receding. We critical importance. wholeheartedly disagree.

he events of 2018 continue to reflect geopolitical uncertainty and tensions. any observers argue that in today’s age of growing distrust and nationalistic fervor, multilateralism Differences between the United States, China and Russia are disrupting is receding. We wholeheartedly disagree. During my recent travels to India, Pakistan and China, Tglobal alliances; cyberspace presents a unique challenge of competing Meveryone seems to be in a mode of wait and see. Absent are the expectations of bold changes political, cultural and economic forces; and conflict in the Middle East has to the international order. Instead, I see India focused on upcoming elections, Pakistan on political and produced a serious refugee crisis. economic reforms and China on whether the U.S. administration will raise trade tariffs.

More than ever, the conflict prevention work of the EastWest Institute is of As the global order shifts, one should not automatically anticipate an inevitably bleak future. We at the critical importance. EastWest Institute see this as a time of enormous potential for the entire global community.

EWI prides itself on responding to and addressing these threats, driving dialogue This past year, the institute rapidly expanded its programmatic work in South Asia and the Balkans, between opposing groups and thus contributing to global stability. Instead of launching dialogues among experts and decision-makers across both regions that reveal those points of sitting on the sidelines, we bring together key policymakers, business leaders, friction that may undermine solidarity along political, cultural and economic lines. experts and groundbreaking innovators to develop practical solutions. When governments are at a stalemate, we bring opposing groups to the table to We continue to play a role in seeking common ground between the U.S. and Russia at a precarious facilitate trust-building. We are proud to fulfill this vital role. juncture, while also tackling security and economic issues between the U.S and China—two countries whose relations are critical to global stability. In the Middle East, the institute maintains a unique Iran- As the institute embarks on its 38th year of global engagement, EWI remains Saudi dialogue—an initiative designed to find navigational rules to help prevent incidents at sea in the unique and instrumental. We remain committed to engaging influencers at the Gulf—and is increasingly recognized as an organization capable of framing the security risks of climate touchpoints of conflict—today and in the future. change across the region.

Please help us continue to provide a foundation for global stability and conflict EWI remains globally recognized for its work on cybersecurity, from convening the first ever trilateral avoidance. On behalf of the board of directors, thank you for your continued meeting between China, India and the United States on cyberspace stability and cooperation, to support. developing cutting edge analysis on encryption and smart cities, to launching and administering the Global Commission on the Stability of Cyberspace, a unique multistakeholder body advocating for more responsible behavior by the major powers in cyberspace.

Ross Perot, Jr. Our worldwide staff and experts will continue to find solutions and strengthen the relationships that are Chairman of the Board most critical for a more secure and peaceful future.

Cameron Munter CEO and President 4 5 Who We Are teamLab Borderless, Tokyo, 2018.

We are a global Our Mission Our Impact The EastWest Institute (EWI) is an We measure our success by our 38-year history of network committed independent NGO that promotes peace influencing outcomes on global security problems—from by creating trusted settings for candid, hosting the first ever military-to-military dialogue to building trust and global discourse among leaders to tackle between NATO and Warsaw Pact countries, to developing intractable problems that threaten world ground rules for protecting digital infrastructure and the preventing conflict security and stability. EWI not only responds stability and security of cyberspace, and hosting the only to issues as they arise, it anticipates three-party dialogue between the U.S. Democratic and around the world. problems that could flare into conflict. Republican Parties and the Communist Party of China.

A Global Network for Peace 6 7 Our Work Asia-Pacific South Asia Deepen dialogue Facilitate a Pakistan-Afghanistan-India between U.S. and Middle East trilateral dialogue, analyze the impact of Chinese military and the Belt and Road Initiative and support party leaders to advance & North Africa rational dialogue and diplomatic insight Provide a platform for dialogue Cyberspace understanding of U.S.- into U.S.-Pakistan bilateral relations. (5) Mobilize governments, between regional rivals to identify China relations. (3) companies and civil U.S.-Russia common ground in tackling society to develop and Lead joint U.S.-Russia climate change, decrease the role implement norms of expert working groups on of media in inciting sectarianism, counterterrorism in Afghanistan Balkans behavior in cyberspace prevent incidents at sea in the Engage key stakeholders and and address cyber during this critical period Gulf region and initiate dialogue in U.S.-Russia relations. (2) experts to assess and deliver policy crime, encryption and on post-ISIS recovery of Iraq. (4) recommendations to ensure the long- security risks from term stability of the region. (6) connected devices. (1)

(2)

EWI Brussels

(6) EWI Moscow EWI San Francisco EWI New York (5)

Our offices connect a diverse network (1) of influencers and (4) experts around the globe, providing substantive, political and financial support for our work. (3)

Building Trust, Delivering Solutions 8 9 Board of Directors

LEADERSHIP Sir Peter Bonfield (UK) Amb. Wolfgang Ischinger Adm. (ret.) William A. Owens (U.S.) CHAIRMEN EMERITI Emil Constantinescu (Romania) Chairman (Germany) Chairman President Ross Perot, Jr. (U.S.) NXP Semiconductors Chairman Red Bison Advisory Group LLC Martti Ahtisaari (Finland) Institute for Regional Cooperation and Chairman Munich Security Conference 2008 Nobel Peace Prize Laureate Conflict Prevention (INCOR) EastWest Institute Matt Bross (U.S.) Dr. William J. Parker III (U.S.) Former President of Finland Former President of Romania Chairman Chairman and CEO Ralph Isham (U.S.) President and CEO Hillwood Development Co. LLC Compass-EOS Managing Director National Defense University Foundation Berthold Beitz† (Germany) William D. Dearstyne (U.S.) GH Venture Partners LLC Former President Former Company Group Chairman R. William Ide III (U.S.) Robert N. Campbell III (U.S.) Sarah Perot (U.S.) Alfried Krupp von Bohlen und Johnson & Johnson Counsel and Secretary Founder and CEO Anurag Jain (U.S.) Director and Co-Chair for Development Halbach-Stiftung Chair of the Executive Committee Campbell Global Services LLC Chairman Dallas Center for Performing Arts John W. Kluge† (U.S.) EastWest Institute Access Healthcare Ivan T. Berend (Hungary) Former Chairman of the Board Partner Maria Livanos Cattaui Laurent M. Roux (U.S.) Professor Metromedia International Group Dentons US LLP (Switzerland) Gen. (ret.) James L. Jones (U.S.) Founder and President University of California, Los Angeles Former Secretary-General Former U.S. National Security Advisor Gallatin Wealth Management, LLC Amb. Maria-Pia Kothbauer Amb. Cameron Munter (U.S.) International Chamber of Commerce Former Supreme Allied Francis Finlay (UK) (Liechtenstein) CEO and President Commander Europe Mike Sarimsakci (Turkey) Former Chairman Ambassador of Liechtenstein to Austria, EastWest Institute Michael Chertoff (U.S.) Former Commandant of the Marine Corps Founder and President Clay Finlay LLC the OSCE and the United Nations in Vienna Executive Chairman and Co-Founder Alterra International, LLC The Chertoff Group George Kadifa (U.S.) Hans-Dietrich Genscher† (Germany) William E. Murray† (U.S.) CO-FOUNDERS Former Secretary of the U.S. Department Managing Director Ikram ul-Majeed Sehgal Former Vice Chancellor and Federal Former Chairman of Homeland Security Sumeru Equity Partners (Pakistan) Minister of Foreign Affairs of Germany The Samuel Freeman Trust John Edwin Mroz† (U.S.) Chairman Former President and CEO David Cohen (Israel) Haifa Al Kaylani Security & Management Services Ltd. Donald M. Kendall (U.S.) John J. Roberts (U.S.) EastWest Institute Chairman (Lebanon/Jordan) Former Chairman and CEO Senior Advisor F&C REIT Property Management Founder and Chairperson Amb. Kanwal Sibal (India) PepsiCo Inc. American International Group (AIG) Ira D. Wallach† (U.S.) Arab International Women’s Forum Former Foreign Secretary of India Former Chairman Roger Cohen (U.S.) Whitney MacMillan (U.S.) Daniel Rose (U.S.) Central National-Gottesman Inc. Op-Ed Columnist Sezgin Baran Korkmaz (Turkey) Kevin Taweel (U.S.) Former Chairman and CEO Chairman The New York Times CEO CEO Cargill Inc. Rose Associates Inc. SBK Holding Asurion MEMBERS Joel H. Cowan (U.S.) Mark Maletz (U.S.) Leo Schenker (U.S.) Professor Zuhal Kurt (Turkey) Alexander Voloshin (Russia) Former Chairman, Executive Committee Former Senior Executive Vice President Peter A. Altabef (U.S.) Georgia Institute of Technology Chairman of the Board Chairman of the Board EastWest Institute Central National-Gottesman Inc. Chairman and CEO Kurt Group JSC Freight One (PGK) Senior Fellow Unisys Corporation Addison Fischer (U.S.) Non-Executive Director Harvard Business School Mitchell I. Sonkin (U.S.) Chairman and Co-Founder Gen. (ret.) T. Michael Moseley (U.S.) Yandex Company Managing Director Hamid Ansari (U.S.) Planet Heritage Foundation President and CEO George F. Russell, Jr. (U.S.) MBIA Insurance Corporation President and Co-Founder Moseley and Associates, LLC Adm. (ret.) Patrick M. Walsh (U.S.) Chairman Emeritus Prodea Systems, Inc. Stephen B. Heintz (U.S.) Former Chief of Staff Vice President Russell Investment Group Thorvald Stoltenberg† (Norway) President United States Air Force U.S. Navy and Marine Corps Services Founder Former President Tewodros Ashenafi (Ethiopia) Rockefeller Brothers Fund Boeing Global Services Russell 20-20 Norwegian Red Cross Chairman and CEO Karen Linehan Mroz (U.S.) Southwest Energy (HK) Ltd. Hon. Steven S. Honigman (U.S.) President Amb. Zhou Wenzhong (China) H.E. Dr. Armen Sarkissian (Armenia) Liener Temerlin (U.S.) Counselor Roscommon Group Associates Secretary-General President Chairman Mark Joseph Bild (U.S.) Information and Infrastructure Boao Forum for Asia Republic of Armenia Temerlin Consulting Managing Partner Technologies, Inc. F. Francis Najafi (U.S.) BAI Corporation CEO John C. Whitehead† (U.S.) Dr. Hu Yuandong (China) Pivotal Group NON-BOARD COMMITTEE DIRECTORS EMERITI Former Co-Chairman Mary McInnis Boies (U.S.) Chief Representative MEMBERS Goldman Sachs Counsel UNIDO ITPO-China Amb. Tsuneo Nishida (Japan) Jan Krzysztof Bielecki (Poland) Former U.S. Deputy Secretary of State Boies, Schiller & Flexner LLP Professor Hilton Smith, Jr. (U.S.) CEO John Hurley (U.S.) The Institute for Peace Science at President and CEO Bank Polska Kasa Opieki S.A. Managing Partner Hiroshima University East Bay Co., LTD Former Prime Minister of Poland Cavalry Asset Management Former Permanent Representative of † Deceased Japan to the United Nations

10 11 Our Programs

Asia-Pacific

The institute engages with political, military and academic leaders across the region, facilitating highly constructive official and semi-official dialogues between China, the United States and other key Asia-Pacific nations.

In a historic summit, U.S President Trump appears with North Korea’s Kim Jong-un in Singapore on June 12. (Kevin Lim/AFP/Getty Images)

12 13 Asia-Pacific

The Challenges The 10th anniversary of the U.S.-China Sanya Initiative continued discreet, high-level dialogue 2018 marked a year of transformative and often between retired U.S. and Chinese senior flag offi- dramatic developments throughout the Asia- cers during a time of mounting tensions in the bi- Pacific. lateral military relationship. Held in Beijing at the Diaoyutai State Guesthouse, discussion yielded Portents of an arising “new Cold War” between concrete recommendations for better U.S.-China the United States and China signaled the military-to-military ties along a wide array of is- potential reemergence of great-power rivalry. sues, including the South China Sea, Taiwan and Numerous incidents—the escalation of trade the application of emerging technologies. conflicts, sharp political divergences, exchanges of bitter rebukes, allegations of undercover As U.S.-China trade tensions escalated influence operations and election interference, throughout the year, EWI initiated a new series of and grating friction between armed forces in the high-level roundtable discussions at its New York South China Sea—had sent the already fragile headquarters. The U.S.-China Strategic Seminar U.S.-China relationship into a downward spiral. Series engaged a select group of senior officials, entrepreneurs and policy influencers to develop Both countries pursued multi-faceted initiatives innovative ideas and solutions that impact long- designed to influence the Asia-Pacific region term U.S. strategic planning in the Asia-Pacific and beyond. China’s Belt and Road Initiative region. The first two roundtables held in 2018 of- continued to gain traction across the Eurasian fered clear recommendations to improve bilateral continent, while the U.S. advanced its pursuit of relations for the next 20 years. a “Free and Open Indo-Pacific,” both attempting to bring smaller countries into their spheres of Following the dissemination of the U.S. National influence. Security Strategy and National Defense Strategy and just prior to the release of Japan’s National In South Asia, exacerbated by longstanding ter- Defense Program Guidelines and Medium-Term ritorial disputes and historical enmities, nations Defense Program, EWI convened the second U.S.- continued to contend with a host of emerging Japan Military-to-Military Dialogue in Tokyo. With challenges linked to transforming demograph- an eye toward enhanced strategic coordination ics, economic development, environmental between the two allies through concrete policy degradation and resource scarcity. recommendations, retired flag officers from both militaries exchanged views on defense planning to effectively address the changing regional power dynamics concerning China, Russia and EWI Action Clockwise from left: U.S. North Korea. delegation at the 10th U.S.- Innovative diplomatic initiatives are more neces- China High-Level Political sary than ever. Greater stability and growth The newly established and far-reaching Asia- Party Leaders Dialogue in throughout the Asia-Pacific and beyond hinges Pacific Fellows Network expanded EWI’s geo- Beijing; Delegates at the on closing the widening gap, and the EastWest graphic and programmatic scope to include both 10th U.S.-China High-Level Institute is uniquely poised to help bridge the eminent and emerging officials, academics and Political Party Leaders divide. entrepreneurs from nearly 20 countries span- Dialogue; RNC Treasurer Tony Parker and Minister ning Asia and Oceania. The diverse backgrounds Song Tao; Gen. (ret.) Li In 2018, EWI’s Asia-Pacific program engaged of the Fellows Network will continue to enhance Andong and Gen. (ret.) with and leveraged its network of senior political regional perspectives and add value to EWI’s Qi Jianguo at the 10th and military leaders in China, Japan, Pakistan, thought leadership. anniversary meeting of the India and the United States through Track 1.5 U.S.-China Sanya Initiative and Track 2 diplomatic initiatives, while simul- In 2018, EWI launched the South Asia Initiative, in Beijing; Adm. (ret.) taneously expanding outreach and connectivity which aims to advance cooperation among key William A. Owens and Adm. throughout Asia. players on the issues and challenges confronting Miao Hua; EWI welcomes Morningside Scholars one of the world’s most dynamic regions. from China. 14 15 Asia-Pacific Shaping Global Trends Although the U.S. remains the lone superpower, China arguably has already Next Steps The World’s Economic replaced it as the driver of global change.

In 2019, the Asia-Pacific program plans to: Center of Gravity The economic center of the Commemorate the 40th anni- globe is calculated using an • • Gauge regional responses to the China’s per versary of the establishment of average of countries’ locations U.S. Free and Open Indo-Pacific person GDP diplomatic relations between the weighted by their GDP. Strategy and Chinese Belt and grew 910%, United States and China by assem- Road Initiative, in coordination with from 1990 to bling delegations of U.S. Democrat- the Asia-Pacific Fellows Network As China has regained 2018 ic and Republican Party leaders, and EWI’s Global Cooperation in economic leadership, the senior officials from the Communist Cyberspace program. center is now retracing its Party of China and global busi- footsteps towards the east. ness leaders to address issues of • Launch EWI’s Belt and Road Japan’s economic boom foreign policy, the U.S.-China trade Initiative (BRI) online database made it the second-largest 2018 2000 2010 2025 and commercial relationship and to inform analyses on the transfor- economy in the world, pulling the center north. domestic governance. mative impacts of the BRI’s land, 1800 maritime and digital footprints 1950 1980 • Bring together retired U.S. and and to provide empirical data on 1960 1900 1850 1600 Chinese four-star generals and each infrastructure project for the admirals to strengthen military- benefit of political, corporate and 1 CE to-military ties and to serve as academic experts. European In 1 CE, China and India a stabilizing force in the overall industrialization were the world’s largest strategic relationship. • Leverage EWI’s extensive network and the rise of the U.S. economies. and conflict resolution method- drew the economic • Expand the U.S.-Japan military- ologies to address South Asia’s center of gravity to-military dialogue process to complex political and territo- towards the Atlantic. include four-star generals and rial disputes, to facilitate break- admirals from India and China. throughs in regional partnerships and sustainable peacebuilding • Continue to increase the impact of within the region. the U.S.-China Strategic Seminar Sources: Economist Intelligence Unit; Series by targeting specific issues Global Carbon Project; and offering concrete, innovative Maddison Project recommendations for U.S.-China Database; SIPRI; relations. World Bank; World Intellectual Property Organisation; The Economist. CO2 emissions Military spending Poverty Patent applications Cumulative change since 1990, Cumulative change since 1990, People living on less than $1.90 a day, By origin (m) in tonnes (bn) at 2016 prices (bn) at 2011 purchasing-power parity (bn) 8 200 2.0 3 China China 1.5 China China 4 0 2 1.0 Rest of world 0 -200 1 0.5 Rest of world Rest of world Rest of world -4 -400 0 0

16 1990 95 2000 05 10 15 18 1990 95 2000 05 10 15 18 1990 95 2000 05 10 2015 1990 95 2000 05 10 15 18 17 Our Programs

The Way of the Sea in the Crystal World, Interactive Digital Installation, teamLab borderless, Tokyo, 2018.

Global Cooperation in Cyberspace

The Global Cooperation in Cyberspace program seeks to reduce conflict, crime and other disruptions in cyberspace and promote stability, innovation and inclusion.

18 19 Ubiquitous Global Cooperation in Cyberspace Encryption and Lawful Government Access Framed a set of balanced approaches to provide law The Challenges enforcement access to plaintext while minimizing The centrality of cyberspace as an infrastructure is self-evident, with digital tech- risks to cybersecurity and nologies serving as an essential aspect of life. Cyberspace has become a conflict human rights. zone that reflects competing political systems, cultural norms and economic interests—the perfect crime scene where malicious actors can brazenly and surrepti- tiously steal or tamper with critical information and disrupt business processes. These threats disturb the delicate equilibrium that allows cyberspace to provide the goods, services and connections that make it an engine of innovation. Secure, Resilient Cities and the Internet of Things Developed a security guide for city managers who are building “smart” cities.

Systemic Risk and Cyber Insurance Examined the potential for major losses from large-scale cyber incidents and their effect on the insurance industry.

Increasing the Global Availability and Use of Secure ICT Products and Services Promoted EWI’s Secure ICT Buyers Guide and began work on trade policy guidance that will promote free trade in secure ICT products Clockwise from top left: and services. EWI cyber panel at the EWI Action Convene In September, 50 members of EWI’s international net- Munich Security Confer- work attended an annual strategic roundtable in Palo ence; GCSC Chair Marina We convene discreet conversations across In June, EWI convened the second trilateral Alto to analyze global trends, discuss recent accomplish- Kaljurand; EWI Global governments and private institutions who might cyberspace cooperation dialogue between ments, debate proposals for new work and define the Vice President Bruce W. Promoting Norms of otherwise not meet. We help them reframe dif- China, India and the United States. Delegates program’s agenda. A focused workshop dealt with the McConnell; EWI Senior fleshed out proposals for improved operational rising tide of technology nationalism, including govern- Responsible Behavior Associate Andreas Kuehn; ficult questions and devise win-win approaches. cooperation on cyber incidents among com- ment efforts to restrict foreign technology through bans, in Cyberspace GCSC commissioners at We then mobilize support for the results to Created and supported the Paris Peace Forum; make change happen, working through our puter emergency response teams (CERTs) and restrictive requirements and tariffs. This discussion crys- the Global Commission GCSC meeting with the extensive networks of key individuals in capitals deepened mutual understanding of divergent talized plans to continue to develop and promote objec- on the Stability of Singapore Foreign Minister and corporate headquarters around the world. perspectives on strategic stability in cyber- tive criteria for procurement decisions involving sensitive Vivian Balakrishnan. space, norms of behavior, data protection and information and communications technology (ICT). Cyberspace. privacy and cyber sovereignty. 20 21 Global Cooperation in Cyberspace

EWI convened and participated in more than in limited circumstances. This report reflects ture, inserting vulnerabilities into products and will propose recommendations for the future a dozen small, off-the-record meetings with the contributions and advice from a wide range services, commandeering others’ devices to of the international security framework in senior policymakers and influencers in the of stakeholders and experts from organizations create botnets, and non-state actors conduct- cyberspace. major cyber powers, continuing to build mutual around the world. ing offensive cyber operations. understanding and deepen trust in the face of More specifically, EWI has identified three increasing cyber conflict. As part of its work on the development of norms Advocate concrete areas for action. First, the program of behavior in cyberspace, EWI, along with The will publish a report—Smart and Safe: Risk Reframe Hague Centre for Strategic Studies, serves as EWI’s cyber staff, fellows and experts in its Reduction in Tomorrow’s Cities—designed to the Secretariat of the Global Commission network of business, academic and civil society provide guidance for city executives and admin- EWI’s policy development efforts are driven on the Stability of Cyberspace (GCSC). leaders advocated for increased security, stabil- istrators to make Smart Cities safe and secure primarily by five working groups—called break- Launched in 2017 at the Munich Security ity and cooperation in cyberspace. EWI staff by connecting and managing new technologies through groups—that develop, refine and Conference, the Commission is a unique multi- appeared at more than 40 events reaching an effectively. This guide will recommend action advocate recommendations for national and stakeholder body working to develop proposals audience of over 2,500. The recommendations in four areas: cybersecurity, cyber resilience, pri- corporate policies. for norms and policy initiatives to improve the in its reports have generated discussion of key vacy and data protection, and collaboration and stability and security of cyberspace. cyber topics, such as encryption, receiving coordination in governance. In 2018, EWI published Encryption Policy in praise from industry stakeholders and govern- Read the full Democratic Regimes: Finding Convergent Chaired by distinguished world leaders, the ment officials. The program continued its strong Our work on Increasing the Global Availability report at Paths and Balanced Solutions, a report pro- Commission brings together government, track-record of building trust through private and Use of Secure ICT Products and Services eastwest.ngo/ posing recommendations on encryption policy industry, technical and civil society experts discussions among major cyber powers—in- will focus on trade, supply chain and cyber- encryption designed to help find a balance between the from around the world to complement the work cluding China, Russia and the United States. security with international ICT companies legitimate needs of law enforcement and strong of intergovernmental initiatives, such as the and academic experts to analyze technology GLOBAL COMMISSION protections for digital information. The report United Nations Group of Governmental Experts. nationalism and develop recommendations for provides nine normative recommendations on Building on its 2017 “Call to Protect the Public Next Steps businesses and governments to address the ON THE STABILITY OF CYBERSPACE encryption policy to ensure strong cyberse- Core of the Internet,” the Commission produced many challenges that it creates. curity, while enabling law enforcement lawful a definition of the public core of the Internet The chief activities of the Global Cooperation access to the plaintext of encrypted information and proposing norms on electoral infrastruc- in Cyberspace program will be the five break- Finally, the breakthrough group on Systemic Learn more at through groups, focused meetings on specific Risk and Cyber Insurance will examine how eastwest.ngo/gcsc issues, bringing together major powers and cyber insurance can increase cybersecurity, continuing to support the GCSC as it enters and will recommend steps to ensure that the its third year. The Commission will continue market can absorb systemic failures from major The Rules of the Road discussions on the implementation of proposed cyber incidents. Norms are foundational for better governance, and therefore the initial norms, defining elements of cyber stability and focus of the Commission’s work. They form a test of “what needs to be done” to achieve some measure of “cyber stability.”

NORM TO PROTECT NORM TO PROTECT NORM TO AVOID NORM AGAINST NORM FOR STATES NORM TO REDUCE NORM ON BASIC NORM AGAINST THE PUBLIC CORE THE ELECTORAL TAMPERING COMMANDEERING TO CREATE A AND MITIGATE CYBER HYGIENE OFFENSIVE CYBER OF THE INTERNET INFRASTRUCTURE OF ICT DEVICES VULNERABILITY SIGNIFICANT AS FOUNDATIONAL OPERATIONS BY INTO BOTNETS EQUITIES PROCESS VULNERABILITIES DEFENSE NON-STATE ACTORS

22 23 Our Programs

Middle East and North Africa

EWI’s MENA program provides a platform for conflicting and competing state and non-state actors to engage in confidential, constructive dialogue on a multitude of current and potential future security threats facing the region.

Civilians in a truck flee Afrin, a predominantly Kurdish city in northern Syria, on March 18—the day it fell to militias backed by Turkey. The city was both the latest front in Syria’s eight-year war and a showcase for the tortured politics that are driving the conflict. (Bulent Kilic/AFP/Getty Images)

24 25 Irrigation and Water Stress Middle East and North Africa High, baseline water stress makes wide areas within the region more vulnerable to conflict.

The Challenges EWI Action

The Middle East and North Africa (MENA) The MENA program monitors and analyzes region continues to undergo rapid, complex conflict triggers that could emerge from na- and unpredictable transformations and transi- tional, regional and international politics. EWI tions across all sectors of society. These have then facilitates confidential dialogues where Top: EWI’s Vice President resulted in further fragmentation, polariza- political and social leaders, organizations, aca- of the Middle East and tion and competition for influence between demics and media professionals can engage North Africa Program principal rivals on the regional and international in constructive conversations, find innovative Kawa Hassan; level. In the absence of a defined regional order ways to defuse tensions and mitigate conflict, Bottom: Members of EWI’s board of directors and security structure, and with the erosion and generate balanced recommendations. EWI meet with His Majesty of international norms and agreements, EWI’s works to raise awareness of under-recognized King Abdullah II on May 9, role as a trusted intermediary between rivaling security threats facing the region and proposes in Amman, at the spring and competing parties becomes even more actions to mitigate them. board meeting. valuable and necessary. Iran-Saudi Arabia Dialogue

Iran and Saudi Arabia remain in a state of rivalry and contest for power and influence over the region; the bilateral relationship is a major Sources: WRI, Natural Earth, GDAM. driver of instability, conflict and sectarianism in the Middle East. Relations remain at an all-time low—mutual distrust and accusations tential for future economic development in the Next Steps are prevalent and reinforced by the weakening region, as well as a group of senior academics to of international agreements, such as the Joint address the role of academia and think-tanks in In 2019, EWI will continue to provide a platform Comprehensive Plan of Action (JCPOA). For knowledge production and how they can influ- for confidential Track 2 dialogue between the the past three years, EWI, in partnership with ence the understanding of “the other.” major regional actors with the aim of mitigat- Center for Applied Research in Partnership with ing rivalries and tensions and minimizing their the Orient (CARPO), has convened confidential Environmental Degradation harmful effects. EWI will continue to contribute dialogues between influential individuals from as a Security Threat thought leadership on climate-related security the policy, government, academic, business risks, particularly in and around Iraq. and media communities to exchange views EWI is strongly engaged in thought leadership and perceptions on issues of mutual interest. on the impact of environmental degradation Iraq’s strained relations with its neighbors In 2018, EWI convened a group of economic and the resulting security risks in the MENA will be an area of particular focus in 2019 and experts from both countries to explore the po- region. EWI co-authored a report for the beyond. EWI will organize discreet Track 1.5 and Swedish Foreign Ministry and the Stockholm Track 2 dialogues among influential stakehold- International Peace Research Institute (SIPRI) ers and experts to lay the foundation for an on Iraq: Climate Related Security Risks As- inclusive regional security order focused on sessment. The report was used in the United stability and reconstruction, and unlock the Nations Security Council debate in July 2018 on untapped areas of mutual interest, including the nexus between climate change and security, trade, environment, water, counterterrorism brought forward under the Swedish Presidency and economic cooperation. of the Council. EWI has been a leader in the con- versation, elevating awareness of the effects of EWI will also engage more actively in the climate change as a security risk, presenting the Maghreb to unlock potential economic coop- report’s findings at numerous conferences and eration though private sector, business-to- media appearances. EWI also held a joint expert business dialogues. exchange with the Konrad-Adenauer-Stiftung (KAS) to address environmental challenges and how climate action can be a tool to tackle migration flows and violent extremism. 26 27 A member of the Russian press does a stand up interview ahead of the start of the joint press conference between U.S. President Donald Trump and Russian President Vladimir Our Putin after their summit on July 16 in Helsinki, Finland Programs (Chris McGrath/Getty Images).

Russia and the United States

EWI is focused on rebuilding strategic trust between Russia and the United States, seeking to broaden engagement and the scope of cooperation between the two former Cold War rivals.

28 29 Russia and the United States

The Challenges panel discussion, “After Syria: The United States, Russia, and the Future of Terrorism,” addressing what construc- U.S.-Russia relations remained fraught through- tive roles both countries can play in shaping the counter- out 2018. While Presidents Donald Trump and terrorism agenda. At the Brussels meeting, experts heard Vladimir Putin have both voiced commitment perspectives from officials representing the European toward improving relations, the much-anticipat- Union External Action Service and North Atlantic Treaty ed Helsinki summit and other overtures have Organization. done little to thaw the frosty impasse between the former Cold War rivals. Tensions surround- Beyond Afghanistan and counterterrorism, EWI sought to ing alleged elections interference in the U.S., generate constructive dialogue on other areas of bilateral the Skripal controversy and military escalation cooperation, including in cyberspace. On the heels of the in the Sea of Azov—as well as the sanctions Trump-Putin summit in Helsinki in July, EWI hosted Fy- war and the U.S. decision to withdraw from odor Lukyanov, editor-in-chief of Russia in Global Affairs, the Intermediate-range Nuclear Forces Treaty for an off-the-record roundtable discussion on the pros- (INF)—continued to color political rhetoric in pects for improved U.S.-Russia relations. In conjunction both countries and mar the potential for any with its activities, EWI also conducted discreet meetings improvement. with officials in both the U.S. and Russian governments, as well as those of key stakeholder countries, and inter- In the face of such challenges, EWI’s Russia and locutors in the think-tank, media and business sectors. the United States program sustained substantive Track 2 dialogue, leveraging its extensive Next Steps network and reputation as a trusted convener. The year ahead will prove as challenging—if not more— EWI Action for U.S.-Russia relations. In the United States, ongoing investigations into and additional sanctions resulting Recognizing the urgent need for increased from Russia’s alleged activities will continue to hamper U.S.-Russia cooperation and the potential of prospects for improved relations. Further, the shaky Afghanistan and counterterrorism as points future of the bilateral nuclear arms control framework of common interest, EWI’s Joint U.S.-Russia carries repercussions for regional and global security. In Working Group on Counterterrorism in Afghani- this uncertain climate, EWI will seek out spots for con- stan facilitated Track 2 dialogue in these critical structive engagement and facilitate Track 2 dialogue to areas, convening in Washington, D.C. in March dispel misperceptions and minimize tensions. and in Brussels in October. As part of this effort, the Joint U.S.-Russia Working Group Counterterrorism on Counterterrorism in Afghanistan will convene for a fourth and final meeting in Central Asia in summer 2019 Expanding on discussions from the previous and formally conclude with the publication of its Joint year, the Working Group touched on several Threat Assessment, which will provide policymakers issues, including U.S. and Russian interests and an independent, up-to-date assessment of the ter- Clockwise from left: counterterrorism strategies in Afghanistan; rorist threat in Afghanistan and recommendations for EWI’s Director of terrorist actors and trans-border networks action. Leveraging its global network of influence, EWI the Russia and the will disseminate the report to U.S. and Russian govern- United States Program in Afghanistan; regional perspectives on the Vladimir Ivanov; Amb. terrorist threat in Afghanistan; border management officials, as well as key regional and international Roland Kobia and ment; and terrorist financing, arms trafficking stakeholders. Ivan Safranchuk; Amb. and other means of terrorist support. Against Mikhail Konarovsky a backdrop of rapidly evolving political and In 2019, EWI will look to create a platform for shared and Cameron Munter; security developments, experts exchanged geopolitical, security and economic interests, engaging EWI Professorial Fellow views on U.S. and Russian perspectives on and policymakers, experts, business leaders and other influ- Greg Austin (left) at approaches to the Afghan peace process, as encers from both the public and private sectors. To that the “Cyberstability: Ap- end, EWI will launch special U.S.-Russia dialogues in 2019 proaches, Perspectives, well as how current U.S.-Russia dynamics affect Challenges” in Moscow counterterrorism cooperation in the war-torn to help deescalate hostile rhetoric and constructively on December 13-14. country. The March meeting included a public reshape public discourse in both countries. 30 31 EastWest Audited Financial Supporters Information

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CHAIRMAN’S DIPLOMAT’S INSIDER’S Nawaz Wahla SOCIETY SOCIETY CIRCLE Nazareth Festekjian TOTAL Carnegie Corporation of 20-20 Investment Aaron Kozmetsky Olivia Fussell (USD) New York Association Adrienne Alexanian Peter Francis Revenue John A. Gunn Catsimatidis Family Allen Clarke Collinsworth R. William Ide III Donor contributions 2,852,447 Sarah and H. Ross Perot, Jr. Foundation Andre Andonian Ralph Layman Shelby Cullom Davis Trust Henry Sarkissian Aram Grigorian Red Bison Advisory Group Grants 64,888 Maria Livanos Cattaui Bryan Ardouny Robert Foresman Investment gain 557,571 Robert N. Campbell III PRESIDENT’S Mars Incorporated Cameron Munter In-kind contributions 258,391 SOCIETY McKenzie Household Chuck Stetson Sam Luft Other 241,625 AIK Banka Medical Transcription Dental Health Management Search for Common Ground Anonymous Billing Company Solutions Soofian Zuberi M.D. Loss due to uncollected contributions* (10,000,000) Enzo Viscusi Stephen B. Heintz Anurag Jain Total public support and revenue (6,025,078) Bob A. Manoukian PEACEKEEPER’S Federal Ministry of Foreign Stephen Philibosian Deutsche Gesellschaft SOCIETY Affairs of Switzerland Foundation für Internationale A. Steven Raab and First Degree Global Asset T. Michael Moseley Zusammenarbeit (GIZ) Ginny Jackson Management Tania Zouikin Ed Glassmeyer Berge Setrakian Francis Finlay Tim Wierzbicki Francis Najafi Darcy Anderson Gegham Mkhitaryan Vartan Gregorian Expenses Huawei Technologies David Cohen George Sheer Vasken Setrakian John K. Hurley Dolby Laboratories Global Peace Foundation William A. Owens Program services 3,995,904 William and Flora Hewlett JPMorgan Chase Donaldson Charitable Trust, Greg Hunter Management and general expenses 1,275,869 Kaspersky Lab Hilton J. Smith, Chairman James Basil Godwin Foundation Fundraising 647,334 Kevin Taweel Emil Hubinak James P. Flynn William Dearstyne Mary McInnis Boies Hagop Kouyoumdjian Jerry Hirsch Wolfgang Rosenbauer Total operating expenses 5,919,107 Microsoft Jeffrey Tucker Joel H. Cowan The Hague Centre for John A. Roberts, Jr. John Jovanovic SUPPORTERS Strategic Studies Johnson & Johnson John Winslow Al Jazeera Unisys Laurent M. Roux and Jorge Vartparonian Anahid Yeremian Lori C. Roux Joyce Stein Bobby Henebry Net assets AMBASSASDOR’S Maryfrances Metrick Karen Linehan Mroz Daniel Silver Kathryn Pilgrim Jacob H Yahiayan SOCIETY Mehmet Kurt Change in net assets before foreign translation loss (11,944,185) Ken Goldberg John E. Savage Addison Fischer Seta Marie Nazarian Kevork Marachelian Peter Skrzypczak Foreign translation loss (17,746) Anonymous Steven S. Honigman Kevork Toroyan Sandra Shahinian Leitner Aso O. Tavitian Stockholm International Change in net assets (11,961,931) Khajak Keledjian China-United States Peace Research Net assets, beginning of year 25,116,741 Laura Danforth Exchange Foundation Institute (SIPRI) Lena Adalian Sarkissian Net assets, end of year 13,154,810 George Kadifa Ted Mangassarian Levon Nazarian Haig H. Didizian The Procter & Gamble M. Joseph and Almira Bild Hurford Foundation Company Mark E. Frazier Ikram ul-Majeed Sehgal William J. Parker III Mary Springer Institut für Matt Bross Auslandsbeziehungen * In December 2016, the institute received a $10 million pledge to be collected over a 5-year period. This pledge was Maurice Tempelsman and NXP Semiconductors provided to the institute to establish the EastWest Institute Center for Peace and Regional Stability in Turkey. Due to the Kitty Pilgrim Qihoo 360 * All donors listed deteriorating economic conditions in Turkey over the past two years, EWI has not received any payments on this pledge. Michael Silverman As such, the institute has recorded a loss due to uncollected contributions in the consolidation statement of activities and Ralph Isham contributed between Michael Wheeler Jan. 1 - Dec. 31, 2018. has removed the associated purpose and time restriction from net assets with donor restrictions. 32 33 4 1 2 3 8 9 (1) 2018 Awards Gala; (2) H.E. Dr. Armen Sarkissian; (3) Zuhal Kurt; (4) Allen Collinsworth and Mary Springer; 7 5 6 (5) EWI board members at the fall board meeting; (6) Hon. Steven S. Honigman; Matt and Janice Bross; (7) Reena Ninan; The Year 14 (8) Vladimir Ivanov (right); (9) F. Francis Najafi; (10) Gen. (ret.) James L. Jones ; (11) Amb. Kanwal Sibal and Franz-Stefan Gady; 10 11 12 13 in Pictures (12) Kevin Taweel and Maria Livanos Cattaui; (13) Bruce W. McConnell; (14) EWI Board members at the fall board meeting.

34 35 3 4 2 1 5 (1) John Hurley and Anurag Jain; (2) Karen Linehan Mroz; (3) Addison Fischer; (4) Amb. Wolfgang Klapper and Kawa Hassan; 6 7 9 (5) EWI staff members; (6) Haifa Al Kaylani; (7) Aso Tavitian; (8) Joel H. Cowan, Bruce W. McConnell and Mark Joseph Bild; The Year 8 (9) Francis Finlay and Tewodros Ashenafi; (10) Amb. Wolfgang Ischinger; (11) Ross and Sarah Perot, Jr.; Nouneh and H.E. Dr. 10 11 12 in Pictures Armen Sarkissian; Cameron Munter and Aso Tavitian; (12) Ross Perot, Jr., Richard N. Haass and Cameron Munter.

36 37 1 3 4 5 2 (1) Mary McInnis Boies and R. William Ide III; (2) Cameron Munter, Dr. William J. Parker III and Ross Perot, Jr.; (3) Darcy Anderson and Lori C. Roux; (4) Stephen B. Heintz; (5) Vladimir Ivanov and Dr. Lora Saalman; (6) Adm. (ret.) William A. Owens; (7) Maryfrances 6 7 9 10 11 The Year 8 Metrick and Robert N. Campbell III; (8) Sarah Perot (9) Darcy and Kay Anderson; Laurent M. Roux; (10) Mara O’Connell and Teresa 12 13 14 in Pictures Val; (11) Ryan D. McCarthy; (12) Vartan Gregorian; (13) Peter Altabef; (14) Irum Chaudhry, Shahnaz Sehgal and Aliya Haroon.

38 39 Our People Staff Fellows Interns EWI New York EWI Brussels EWI Moscow 10 Grand Central Rue de Trèves 59-61 7/5 Bolshaya Dmitrovka Str. Bldg. 1, Cameron Munter Farwa Aamer Najam Abbas Brita Achberger 155 E. 44th Street 1040 Brussels Entrance 2, 6th Floor CEO and President Wael Abdul-Shafi Rizwana Abbasi Michael Akopian Suite 1105 +32-2-743-4610 125009 Moscow Emma Adams Greg Austin Eren Bagis New York, NY 10017 +7-495-234-7797 Bruce W. McConnell Evgenii Antasevich Merritt Baer Alexander Campbell +1-212-824-4100 Global Vice President Tony Bricktua Kamlesh Bajaj Elizabeth Chen Christopher Bush Danila Bochkarev Yiyi Chen Kawa Hassan Jessica Cavanaugh Rethy Chhem Brian Choquette Vice President, Annie Cowan James Creighton Dominique Craige Middle East and Ingo Dean Franz-Stefan Gady Jill Danne North Africa Michael Depp Sandro Gaycken Theresa Ding Allison Doenges James Basil Godwin James Disalvatore Conrad Jarzebowski Charles Elkins Bernard Goonetilleke Alex Hunter Vice President, Kathryn Floyd Davis Hake Shannon Kandell Communications Noel Gonzalez Robert Holleyman Olivia Lin Daniela Kaisth Jeremy Hébert Irene Finel-Honigman Hongmo Liu 25 Vice President, Vladimir Ivanov Tara Kangarlou Heyward Manning languages spoken Development Kathryn King Ananda Raj Khanal William Persing among EWI staff Andreas Kuehn Keiko Kono Akhil Ramesh EWI San Francisco 201 Spear Street countries Wolfgang Klapper Sieneih Lewis Nadiya Kostyuk Sam Reynolds 177 Suite 1100 in EWI’s extensive Vice President, Christopher LaBianco Khin Khin Kyaw Kyee Nikolai Rubanovskii San Francisco, CA 94105 Regional Security Abagail Lawson Ronald Mendoza Divya Ryan network of partners Zoe Leung Jonathan Miller Natalie Shutts 12 Lora Saalman Gayané Nanushyan Joy Mitra Cristian Tracci consecutive Vice President, Mara O’Connell René Pattiradjawane Elee Wakim years among Asia-Pacific Program William Parker Kathryn Pilgrim Wendi Zheng 35 top U.S. think Gail Pierre Maja Piscevic 2018 in major events tanks in Penn Natalie Pretzer-Lin Adrian Phua in 17 countries University rankings Anna Renard-Koktysh Dulyapak Preecharush Numbers Anneleen Roggeman Naveed Qamar Lana Schmidt-Goertz Latha Reddy Alex Schulman Paul Richards Top played podcasts: Oliver Senft John Savage Elizabeth Economy: Xi Jinping 30 episodes 973k Dragan Stojanovski Bhagya Senaratne and the New Chinese State of EWI Podcasts, unique visitors Eda Tekeoglu Pavel Sharikov David E. Sanger: a new series on EWI website The Perfect Weapon Liliya Troshina Sazali Bin Sukardi of discussions, Teresa Val Brandon Jack Tara Nicholas Burns: A Changing Konstantin Vidrenko Yongyuth Teerakul U.S. Foreign Policy introduced in 2018 Meredith Walker Ahmed Thohir Francis Fukuyama: Jace White Heiko Thoms The Demand for Dignity and Tune in to EWI Podcasts 850k the Politics of Resentment downloads of EWI Andrew Yu Jiang Tianjiao on SoundCloud, iTunes and Michael Zumot Tughral Yamin Ian Bremmer: eastwest.ngo/podcast policy reports Jackson Yuasise Has Globalism Failed?

40 41 Buildings lay in ruins on September 22 in Mocha, Yemen. The city was retaken from Houthi rebels in early 2017 as part of Yemen’s Saudi-led, coalition-backed military campaign, which moved west along Yemen’s coast. (Andrew Renneisen/Getty Images)

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