In This Issue

IN THIS ISSUE

SECURITY STUDIES

2006 RMSSP Launches its Second Semester

RMSSP Scholars’ Visit to Washington DC

Special Guest Lecture: Financial Aspects of War on Terror

Prof. John Kriendler Meets with Security Scholars

CORPORATE COUNCIL

PSSI NEWSLETTER N° Successful Debut: Club of Prague Conference

MESSAGE FROM THE DIRECTOR the demand for participation in it al- David Elliman Joins PSSI Board One of the reasons that led to the ways exceeded the Institute’s capacity. founding of the Prague Security I am, therefore, very happy to report Studies Institute nearly five years ago that, aer nearly three years of prepa- IMPORTANT EVENTS was the sad fact that, so many years rations and negotiations with Charles aer the changes in 1989, Charles University, we managed to complete Central Europe’s Contribution University was not able to offer a pro- all phases of the accreditation pro- to the EU’s CFSP gram of security or strategic stud- cess both with the university and the ies. is is why, in 2002, we opened Czech Ministry of Education. Expectations for NATO’s Riga Summit our first two terms, Robinson-Martin According to the agreement signed Security Scholars Program, offering by myself and Rector Václav Hampl, a series of lectures presented by dis- PSSI will help to fund, configure and PSSI NEWS tinguished current and former pol- teach a Master’s Degree program in icy practitioners from the Czech security studies, which will open in Alexandr Vondra Elected Republic, Central, Eastern and the autumn of 2007 at the Faculty of to the Czech Senate Western Europe and the US. Vojtěch Social Sciences. PSSI will support Cepl, Saša Vondra, Roger Robinson, this program for the first three years. PSSI Welcomes New Intern Martin Walker, Luboš Dobrovský, Hopefully, by then, security studies Josef Zieleniec, Craig Stapleton, Jiří will become a permanent fixture in Jiří Schneider at Forum Růžek, Jaromír Štětina were among Charles University’s curriculum. Hospodarskych Novin those who shared their views with our students on a variety of topical issues Olda Černý Jiří Schneider in International over the last four years. Executive Director Herald Tribune RMSSP became known as a high- PSSI ly prestigious course and every year Oldřich Černý in Sarajevo

William F. Martin Elected Chairman of the UPEACE Council

Václav Hampl, Rector of Charles University and Oldřich Černý, PSSI Executive Director SECURITY STUDIES

PSSI NEWSLETTER N° N° PSSI NEWSLETTER

Jessica Morrey, International Fellow at the Pew Center on Global Climate Change; Anna Kacerovská; Jakub Kulhánek; V.P.Lago, Executive Secretary Prof. John Kriendler, George C. Marshall European Center of of National Security Council; Bill Martin, Member of the PSSI Board of Directors; Nicholas Martin, Visiting Fellow at UN University for Peace Security Studies and Oldřich Černý, PSSI Executive Director

RMSSP LAUNCHES alumni, Anna Kacerovská and Jakub At the State Department, Mr. David ITS SECOND SEMESTER Kulhánek, participated in a three-week Kremer, Deputy Assistant Secretary Entering its second half, the Robinson- internship program in the United of European and Eurasian Affairs, Martin Security Scholars Program fo- States. Anna and Jakub continue in focused on Russia and Ukraine, cused on more area-specific issues. As what PSSI hopes to become an annual and especially on last year’s natu- global terrorism is properly viewed as opportunity for RMSSP alumni to en- ral gas crisis. Giulia Bisconti, Senior one of the most pressing security chal- rich their skills and future employment Nuclear Security Policy Advisor lenges of our time, the second semes- prospects. at the U.S. Department of Energy, ter aimed at exploring various aspects Hosted by Bill Martin in Washington Office of Nuclear Energy, discussed of terrorism. e roots and origins of D.C., Anna and Jakub had a chance the pace of energy-related expendi- terrorism, for example, were discussed to gain a unique insight into the pol- tures. To learn more about the role by security expert Jan Schneider, while icy-making process of the United of international financing, Anna and Ivo Šilhavý from the Czech Ministry of States. ey visited various govern- Jakub met with Nr. Graeme Wheeler, Foreign Affairs focused on the recent de- ment agencies, think tanks as well as Vice President and Treasurer of the velopments in the Middle East. Former private sector meetings. eir pro- World Bank. head of the Czech Intelligence, Mr. Karel gram began with a visit to Pentagon, Jakub and Anna also visited nu- Randák spoke about various methods where Assistant Secretary of Defense merous public policy groups based in to combat terrorism and the former head for International Security Affairs, Mr. Washington D.C. such as the Heritage of the Czech Military Intelligence, Mr. Peter W. Rodman, shared with them Foundation, Brookings, Washington Ándor Šándor, outlined the current secu- his thoughts on the US military pos- Institute for Near East Policy, rity situation in the Czech Republic. ture in the Middle East. Jamestown Foundation, American In the lectures that followed, our During the meeting with the Enterprise Institute and Center for security scholars had an oppor- Executive Secretary of National Security Policy. An appropriate cap- tunity to interact with the former Security Council, Mr. V.P. Lago, stone to their extraordinary intern- Czech Ambassador to Russia, Luboš RMSSP Alumni learned about this ship was a visit to United Nations Dobrovský, former Czech Minister of key NSC position and the process of Headquarters and its sister agencies in Interior, Jan Ruml, and Program direc- craing the President’s national secu- New York City. tor of RFE/RL, Joyce Davis. rity strategy. Anna and Jakub then discussed with Mr. Lago the increasing volatility of world energy markets, par- PROF. JOHN KRIENDLER MEETS RMSSP SCHOLARS’ VISIT ticularly with a view toward the grow- WITH SECURITY SCHOLARS TO WASHINGTON D.C. ing oil appetites of China and India. In conjunction with the NATO sem- anks to the sponsorship of Bill “We can’t solve this energy issue when inar of November 14, 2006, a meet- Martin, member of the PSSI Board of the EU and USA are separated. We ing was arranged between the students Directors, Security Studies Program have to stand united,” asserted Lago. of our Security Scholars Program and SECURITY STUDIES

Prof. John Kriendler of the George C. Marshall European Center for Security Studies. e main topic of discussion was the upcoming NATO summit in Riga, which will address the se- rious challenges currently facing the Alliance. As Prof. Kriendler explained, the principal issue of this “transformation summit” will be NATO’s defense capabilities. A number of commitments to this area were made during the Prague Summit, including the creation of the NATO response force. e decision, however, to increase NATO’s ability to react rapidly and efficiently to security challenges is limited by the principle of national sovereignty. Progress on the Prague Summit commitments will be evaluated in Riga. N° PSSI NEWSLETTER According to Prof. Kriendler, even more challenging than the issue of NATO’s transformation are the different views of NATO’s role among Roger Robinson, Co-founder of PSSI and Oldřich Černý, PSSI Executive Director the Allies. This long-standing dis- agreement, primarily between the United States and France, combined concentrated on reducing its annu- or eliminate their business operations with the need for consensus decision- al hard currency income. e United in terrorist-sponsoring countries if in- making endangers the dynamism and States also sought to put pressure on vestors resisted purchasing their stock even viability of the Alliance. Prof. Western banks and governments deal- or divested present holdings. Kriendler expressed his skepticism ing with the Soviets to end their tax- e concept developed by Mr. toward seeking to define a new stra- payer-subsidized lending activities. Robinson in his lecture is referred to tegic concept, as it might accentuate is, in turn, substantially contribut- as “terror-free investing” and involves Alliance differences rather than cre- ed to the collapse of communism later security-minded shareholder activism ate greater cohesion. in the decade. and corporate governance. Like the In conclusion, Prof. Kriendler Presently, Washington has imposed South Africa divestment campaign of called for more commitment on sanctions on the Banco Delta Asia in the 1980’s, this kind of “values-based” the part of NATO members in the Macau, which was trafficking in coun- investing is on the rise. Moreover, course of the Riga Summit, the 2006 terfeit U.S. currency and engaged in the U.S. Securities and Exchange Summit and the 60th Anniversary of money laundering for North Korea. Commission has established an the Alliance in 2009. Mr. Robinson argued that such an ini- “Office of Global Security Risk” be- tiative helped to persuade bankers cause of the asymmetric financial risk across Asia to curtail sharply their fi- to share value of doing business with SPECIAL GUEST LECTURE: nancial dealings with Pyongyang or these dangerous regimes. FINANCIAL ASPECTS OF risk exclusion from the U.S. financial In summary, Robinson asserted that WAR ON TERROR system. sanctioning selected financial insti- During his lecture, PSSI Co-Founder In the case of Iran, the U.S. Treasury tutions involved in wrong-doing and and former Senior Director of the Department banned any American fi- the wide-spread adoptions of “terror- White House National Security nancial dealing with Bank Saderat, one free investing” could do more to com- Council, Roger Robinson, aimed of Iran’s principal financial institu- bat terrorism and the proliferation of at putting the ongoing war on ter- tions. is action chilled relations be- WMD than any other non-military pol- ror into a broader perspective as well tween European and Asian banks and icy initiatives. as stressing its financial dimension. Iran for fear of triggering a U.S. retal- Speaking before the Robinson-Martin iatory response against them similar to More information on the Robinson Security Scholars Program members, Banco Delta Asia. lecture can be obtained at Robinson pointed out that using fi- Robinson also argued that a pull-out www.terrorfreeinvesting.com. nancial tools to combat an enemy is of a number of public-traded compa- nothing new. In fact, the US policy nies could have a debilitating impact in the early 1980’s broke new ground on the Iranian regime, particularly in by pursuing an economic and finan- the energy sector. Public companies, cial strategy against the USSR that he said, could be persuaded to reduce CORPORATE COUNCIL PSSI NEWS

ALEXANDR VONDRA ELECTED TO THE CZECH SENATE PSSI would like to congratu- late a distinguished member of its International Advisory Board and former PASS* Coordinator, Mr. Alexandr Vondra, for his election to the Czech Senate. We are confident that this former Czech Ambassador to the U.S., Commissioner of the 2002 NATO summit and current Czech Minister of Foreign Affairs will significantly strengthen the Czech Parliament’s upper chamber. Vladimir Schmalz, Director of Mergers and Acquisitions of CEZ, a.s., and Andris Piebalgs, EU Energy Commissioner *Program of Atlantic Security Studies is a program of PSSI SUCCESSFUL DEBUT: CLUB Former President Václav Havel’s contri- OF PRAGUE CONFERENCE bution stressed the need for a fundamen- Commenting on the world’s increas- tal change in humanity’s attitude toward PSSI WELCOMES NEW INTERN N° PSSI NEWSLETTER ing energy dependency, former Czech the world and the values of life. A more Chloé Simeha, a student from President Václav Havel once noted: technical session followed, which looked the prestigious Paris Institute of “Let us do everything that is in our po wer to to the expansion of existing sources of oil, Political Sciences (Sciences Po), avoid becoming prisoners of ever increasing gas, coal, nuclear and renewable supplies joined PSSI in September 2006 energy consumption and to protect ourselves to meet rising global demands. It also for a one-year internship. While in from its dire consequences.” Consistent considered efforts to modify the energy Prague, Chloé will be helping de- with President Havel’s cautionary vi- demand side of the equation, especially velop the Club of Prague, as well as sion, PSSI launched a new initiative in at a local level. e last panel discussed a various PSSI programs and activi- the field of energy security called e set of sustainable policies focusing on en- ties. Her academic interests include Club of Prague. ergy security and energy efficiency. e the expansion of the European PSSI took action to create an Asian- central objectives of the Club of Prague Union, the transformation of East European-American forum for en- was to combine a) the higher ideals of European and Central European hancing the dialog, skills and level of writers and philosophers with the func- societies, transatlantic issues and cooperation among the regions’ lead- tional focus of engineers and energy ex- international security affairs. In ad- ing energy experts. e conference fo- perts; and b) blend universal values with dition to her native French, Chloé cused on the following key issues: (l) energy requirements, and humanitarian is fluent in English, and also speaks Developing different energy usage sce- vision with physical infrastructure. German and Czech. nario (2) New ways of thinking about e speakers at the Club of Prague energy from the cultural perspectives of gathering included: EU Energy the rich cultural base of our members Commissioner Andris Piebalgs, Fmr. JIŘÍ SCHNEIDER IN (3) Constructing a technology matrix to Prime Minister of Canada Kim Campbell, INTERNATIONAL identify promising advances in research Czech Foreign Minister Alexander HERALD TRIBUNE and development of key energy resourc- Vondra, CEOs of Japanese and EU cor- 24.10.2006 Jiří Schneider, PSSI es (4) Meeting future needs through al- porations, and Presidents of US and Program Director, was quoted in ternative fuels and systems of transpor- Middle Eastern National Laboratories, as the International Herald Tribune tation (5) Identifying universities and well as European and Chinese scientists. on October 19, 2006. He stat- urban projects to model Zero Energy ed, “Unexpectedly, East European Neighborhoods and (6) Strategies for states struggle to unify poli- investing in the energy future. DAVID ELLIMAN JOINS cy” according to the author Judy e first meeting of the Club of Prague PSSI BOARD . . Dempsey, who wrote about Central was convened on October 10-12, 2006 at David Elliman, Chairman of Elmrock European countries relations with the Czech Ministry of Foreign Affairs. Capitol, Inc., a New York-based in- Russia. Schneider also noted that e likely energy crisis that will face the vestment firm, has joined PSSI’s EU should adopt a unified energy international community in the com- Board of Directors. His membership policy toward Russia. ing decades, both in terms of security will greatly contribute to strengthen- of supply and the environment, was the ing the relationship between multina- To review the article, please go lead-off topic. is was followed by a ses- tional corporations and PSSI; one of to http://www.iht.com/bin/ sion focusing on the importance of val- the primary goals of PSSI’s Corporate print_ipub.php?file=/articles/ ues in energy demand and supply, with Council Program. An interview with 2006/10/19/news/east.php an emphasis on the necessity of multidis- David Elliman is available in PSSI’s ciplinary approaches. In this connection, first Quarterly Report of 2006. PSSI NEWS IMPORTANT EVENTS

JIŘÍ SCHNEIDER AT FORUM CENTRAL EUROPE’S tries. e organizers hope to bring to- HOSPODARSKYCH NOVIN CONTRIBUTION TO THE gether experts from the four Visegrad 31.10.2006 Jiří Schneider, PSSI EU’S COMMON FOREIGN countries to focus on specific aspects Program Director, participated AND SECURITY POLICY: of the European Neighborhood Policy. in the roundtable discussion en- Strategic Framework for the EU’s Eastern Policy e project envisions a series of titled „What is the cost of the en- In a Search of a New Approach high-level annual policy-related con- ergy independence of the Czech Bratislava, November –, ferences in the Visegrad countries and Republic?“ e forum was orga- follow-up seminars in Brussels. e nized by Hospodarske noviny and e three-year project coordinated by topics discussed will include the stra- took place on November 1, 2006 at the Prague Security Studies Institute tegic framework of the EU Eastern the Jalta Hotel. and involving the Warsaw-based Policy, EU-Russian and EU-Ukrainian Center for International Relations, the relations, EU Energy Policy and the For more information, please Research Center of the Slovak Foreign implications of the full integration of go to http:// forumhn.cz Policy Association, and the Center for the new EU member states into the EU Enlargement Studies of Central Schengen System. European University in Budapest, has OLDŘICH ČERNÝ IN SARAJEVO entered its first phase. e project is made possible thanks PSSI’s Executive Director, Oldřich e Research Centre of the Slovak to the support of the International Černý attended a two-day workshop Foreign Policy Association hosted the Visegrad Fund and the German PSSI NEWSLETTER N° N° PSSI NEWSLETTER in Sarajevo (September 25–27, 2007). first conference associated with this Marshall Fund of the United States. e workshop, designed to bring project, entitled „Strategic Framework together representatives of Bosnia for the EU’s Eastern Policy: In a Herzegovinan security agencies, Search of a New Approach.“ e con- EXPECTATIONS FOR was organized by Geneva Centre ference was held in Bratislava on NATO’S RIGA SUMMIT for Democratic Control of Armed November 9–12, 2006. On November 14, 2006, the Prague Forces. Mr. Černý lectured on coop- e aim of the conference was: to Security Studies Institute (PSSI) in co- eration between different agencies examine the existing policy frame- operation with the Embassy of Latvia, in the country and on proper na- work for the EU’s relations with East Jagello 2000- Association for Euro- tional intelligence coordination. European countries; to identify the Atlantic Cooperation and the American most challenging deficiencies of cur- Information Center organized a confer- rent EU policy toward Russia and the ence on the upcoming NATO Summit WILLIAM F. MARTIN East European countries; and to for- in Riga. e conference was hosted by ELECTED CHAIRMAN OF mulate recommendations to enhance the Czech Ministry of Foreign Affairs, THE UPEACE COUNCIL the EU’s capabilities in pursuing its which facilitated a live video link with We are pleased to announce that foreign policy goals in the region. NATO Headquarters in Brussels. William F. Martin, member of e next scheduled event, to be held In his introductory remarks, NATO PSSI’s Board of Directors, was in Brussels in January 2006 under the Secretary General Jaap de Hoop elected Chairman of the Council title „EU Eastern Policy: Visegrad Scheffer, outlined the main agenda of the UN-mandated University for Impulses,“ will gather European deci- for the Riga summit and referred to Peace headquartered in Costa Rica sion-makers to brief them about the pro- his recent visit to Prague. e debate in October, 2006. His responsabil- ceedings of the Bratislava Conference. which followed featured Jamie Shea, ities include the establishment of e project aims at enriching the Director of Policy Planning and Gen. a Peace Complex in San Jose – a public policy expert debate in the Ray Henault, Chairman of the NATO monitoring, teaching and research Visegrad countries concerning the Military Committee in Brussels. It fo- facility utilizing the latest electron- Eastern dimension of EU policy. It cused on expected deliverables dur- ic technologies to assess existing also intends to help increase the role of ing the Riga Summit. Other speak- and potential conflicts around the the Visegrad countries in shaping the ers included Czech Foreign Minister world. political agendas of various EU institu- Alexandr Vondra, Defense Minister Jiří tions as well as those of member coun- Šedivý, Janis Karlbergs, Latvia’s Deputy State Secretary for Defense, John Kriendler from the George C. Marshall European Center for Security Studies, and Petr Luňák from the NATO Public Diplomacy Division. Current NATO operations, major undertakings associated with military transformation and new global challenges were discussed at length. Members of Prague’s diplo- matic corps, security community and Oleksandr Pavlyuk, Head of External Cooperation, OSCE Secretariat, journalists took part in this wide-rang- Jiří Schneider, PSSI Program Director; Vladimír Bilčík, Member of the Research Center of the Slovak Foreign Policy Association ing discussion. ABOUT PSSI

foto: Czechtourism, Jiří Matula PSSI NEWSLETTER N° N° PSSI NEWSLETTER

ABOUT PSSI International Advisory Board The Prague Security Studies PSSI’s mission is to help build an ever- Václav Havel • Elie Wiesel • Institute would like to thank growing group of informed and securi- R. James Woolsey • Alexandr the following corporations ty-minded policy-makers dedicated to Vondra • Timothy Garton Ash • and institutions for their kind the development of democratic institu- Michael Žantovský • Michael Novak support and cooperation: tions and values in the Czech Republic • Adam Michnik • Robert Pfaltzgraff Atlas Economic Research Foundation and its regional neighbors. PSSI of- • Dorothy Stapleton • H.R.H. NATO Public Diplomacy Division fers programs that meet the critical re- Prince Hassan • Nobuya Minami Canadian Defence & Foreign Affairs quirement to equip new generations of • Roger W. Robinson, Jr. • Institute young leaders to manage the complex, Karel Schwarzenberg • ČEZ security-related challenges of the 21st Madeleine Albright Czech Coal century. PSSI also aims to identify and e German Marshall Fund of the analyze foreign policy and security-re- Executive Committee United States lated issues in the area of transatlantic R. Daniel McMichael, Chairman Jagello 2000 relations, and to propose practical and James Q. Whitaker • Konrad Adenauer Stiung prudent policies to address these and Curtin Winsor, Jr. • Jan Ruml • Ministry of Foreign Affairs of the other security challenges. Ingrid Aielli • Alejandro Chafuen • Czech Republic To fulfill its mission, PSSI under- Frank J. Gaffney, Jr. International Visegrad Fund takes to organize a variety of activities Open Society Fund Czech Republic under its Security Scholars Program; Board of Directors Chubu Electric Company Co. Program of Atlantic Security Studies; Jiří Pehe,Chairman • Tepco Electric Company Co. Corporate Council Program; and other William F. Martin • Josef Jařab • Kansai Electric Company Co. outreach projects and training courses. David Elliman • Vojtěch Cepl Tohuku Electric Company Co.

CONTACT INFO: Prague Security Studies Institute | Pohořelec 6, 118 00 Prague 1 | Czech Republic Tel./fax: +420 233 355 735 | [email protected] | www.pssi.cz Queries about PSSI activities and projects can also be directed to Petr Lang ([email protected]), Program Coordinator.

Your Support is Appreciated As PSSI is rapidly expanding its programs, we would welcome your support for our eﬀorts. Tax deductible contribu- tions can be made to PSSI through the Atlas Economic Research Foundation: Atlas Economic Research Foundation, 2000 North 14th Street, Suite 550, Arlington, VA 22201, U.S.A., phone: (703) 934-6969, fax: (703) 352-7530. Our primary contact at the Foundation is Mr. Bradley Lips, Chief Operating Oﬃcer ([email protected]).

Bank Account Our direct PSSI Account is located at the Komerční banka, a.s. (Na Příkopě 33, 11407 Prague 1, Czech Republic): IBAN CZ7401000000512281850237 | BIC/SWIFT Code: KOMBCZPP