HUDSON INSTITUTE News & Review

WWW.HUDSON.ORG SPRING 2009

HUDSON WELCOMES EXECUTIVE VICE PRESIDENT JOHN WALTERS AND FOUR NEW SCHOLARS

John P. Walters, who served as Hudson Scholar Director of the Office of National Plays Key Role Drug Control Policy (ONDCP) from in Passage of December 2001 until January 2009, joins Hudson Institute as Executive Anti-Trafficking Vice President. Legislation At Hudson, Walters will build on his broad public policy experience, In December, President Bush including running the cabinet-level signed into law the historic ONDCP, to develop research-based William Wilberforce Trafficking initiatives in fields ranging from crime Victims Protection Reauthori - and drug policy to international zation Act, which gives the U.S. government expanded powers affairs. Under Walters’s leadership at to prevent trafficking in the John Walters ONDCP—where his portfolio inclu- United States and abroad, pro- ded coordinating all aspects of U.S. tect victims, and bring criminal drug policy, from interdiction to prevention and treatment—youth drug use charges and harsher punish- declined to its lowest levels in nearly two decades, with a 25 percent reduction ment upon those engaged in in overall youth drug use during the past seven years. human trafficking. The bill also “John is a noted policy intellectual with a clear record of accomplishment in empowers the U.S. to at tempt public life,” says Hudson Insti tute CEO Kenneth Weinstein.“My col- to halt other countries’ use of leagues and I are looking forward to benefiting from his judgment, ex perience, child soldiers. Hudson Institute Senior and knowledge of policy and the nonprofit world.” Fel low MICHAEL HOROWITZ “I was honored to serve in President Bush’s administration and am pleased to played a crucial role in uniting a join Hudson Institute, a dynamic and growing organization that has become broad coalition of anti-traffick- one of America’s leading think tanks,” Walters noted. ing experts and advocates, in- Prior to serving as the nation’s “Drug Czar,” Walters, a native of East Lans- cluding Ambassadors John ing, Michigan, served as President of the Philanthropy Roundtable; Executive Miller and Mark Lagon of the Director of The New Citizenship Project; Deputy Director and Chief of Staff at State Department’s Trafficking the Office of National Drug Control Policy; and was on the staff of the Nation- in Persons CONTINUED ON PAGE 21 al Endowment for the Humanities and the U.S. Department of Education. He served as a Visiting Fellow at Hudson Institute in 1993. CONTINUED ON PAGE 22

SPRING 2009 / HUDSON INSTITUTE 1 CONTENTS CHAIRMAN’S Spring 2009 LETTER

1 Hudson Welcomes Dear Friend of Hudson Institute, New EXECUTIVE VICE PRESIDENT JOHN Since the dark days of the Cold War, Hudson Institute has held a reputation for tack- WALTERS ling even the most intractable of problems. We may not be able to choose the chal- and Four Scholars lenges we face, but we will choose the means by which we face them—for better or worse. In this spirit, our team of leading economists has responded to the financial and economic news by working to shape effective responses to the global credit cri- Hudson Scholar Plays sis based on sound and practical economic principles. Key Role in Passage of I believe that the creativity and resolve required to shape a better future define ANTI-TRAFFICKING Hudson Institute as much today as they have throughout the last five decades. LEGISLATION In this edition of News and Review you will read about the crucial role Senior Fellow Michael Horowitz played late last year in shaping the passage of historic leg- 2 Chairman’s LETTER islation against human trafficking, to protect victims of modern-day slavery and halt the use of child soldiers. 3 Hudson MEDIA Highlights Tenacity is the trademark of many of our scholars. I think of Visiting Fellow Andrei Piontkovsky who has not wavered from producing honest, critical assess- 4 Hudson’s role in PNSR ments of events in his native , despite intimidation from the Russian govern- ment. Late last year, Andrei courageously returned to Russia to face charges for ille- 5 New York BRIEFING gal extremist activity. The court absolved him, and he returned to America and con- tinues his work at Hudson. COUNCIL As Washington’s political landscape has shifted, Hudson has seized on new opportunities that have arisen with the new administration. Our scholars produced 6 Hudson EVENTS a series of studies offering advice for President Obama on dealing with the most pressing global and domestic issues. In addition, numerous Hudson scholars have 12 Hudson Scholar already been called on to brief the new administration. ANDREI PIONTKOVSKY We are very proud of the impact our scholars’ efforts have in shaping public Absolved of policy both here and abroad. This is certain to grow as we continue to welcome Extremism Charges distinguished public policy practitioners from the highest levels of government to our in Russia team. With this thought, I want to extend a warm welcome to all of our new schol- ars featured in this issue, noting with particular pleasure the arrival of John Walters, 13 Scholar in the Spotlight: who until recently served as the nation’s cabinet-level “Drug Czar,” and joins us as CHRISTOPHER SANDS Hudson’s Executive Vice President. Finally, I want to thank all our contributing supporters who donated to the Institute during the giving season. Your contribution means a great deal to Hudson 14 Hudson PUBLICATIONS and its scholars, and we look forward this year to enhancing your Hudson experi- ence and keeping you informed firsthand of our scholars’ exciting work. 18 COMMENTARY With best wishes, 23 CONGRESSIONAL TESTIMONY

Photos by Philip Ross ALLAN R. TESSLER Chairman

2 HUDSON INSTITUTE / SPRING 2009 HUDSON MEDIA HIGHLIGHTS

■ C-SPAN ■ CTV (Canada) ■ FOX NEWS Zeyno Baran discusses Secretary Kenneth Weinstein on the Ronald Radosh discusses the Clinton's meetings with Russian Israeli election February 10 Rosenberg spy case diplomats and missile defense December 26 March 9 ■ Russia TV Richard Weitz on the Munich ■ NPR ■ NPR Security Conference Alex Avery on organic food farms John Walters on drug violence February 3 December 24 in Mexico February 26 ■ C-SPAN Paul Marshall featured on his book Blind Spot (co-authored with Lela Gilbert and Roberta Green Ahmanson) February 2

■ BBC TV ■ FOX NEWS ■ CTV (Canada) Zeyno Baran discusses the Herbert discusses vacant Christopher Sands discusses Nabucco pipeline Senate seats December 23 Obama’s visit to Canada January 28 February 19 ■ C-SPAN ■ NPR Covers Hudson event on presiden- ■ BBC TV Douglas Feith on U.S. foreign tial advisers December 1 Irwin Stelzer discusses policy January 22 the recession February 13 ■ Voice of America ■ FOX NEWS RADIO Jaime Daremblum on Russian Meyrav Wurmser on the Middle officials’ visit to Caracas East peace process November 25 January 21 ■ Radio Liberty ■ CNN David Satter on Russia’s economy Dennis Avery on climate change November 25 January 13 ■ FOX NEWS ■ C-SPAN Betsy McCaughey on healthcare ■ PBS Covers Bradley Center event on provisions in the stimulus bill Hillel Fradkin on the Gaza conflict Funding Fathers February 10 January 8 November 20

SPRING 2009 / HUDSON INSTITUTE 3 HIGHLIGHTS CONTINUED FROM PAGE 5

■ ARTE TV (France) HUDSON’S ROLE IN PNSR Laurent Murawiec discusses the U.S. election The Project on National Security Reform (PNSR) is a multiyear, November 15 multi-institutional project that examines the U.S. national sec- urity system to identify and make recommendations for needed ■ Al Hurra TV reforms. It is guided by a coalition that includes Hudson CEO Nina Shea on the U.N. Interfaith KENNETH WEINSTEIN and other think tank leaders, as well as Conference former senior government policymakers. November 12 PNSR aims to contribute to a better understanding of how the national security arena has changed to include new missions that require a more sophisticated international response. PNSR focus- es on the relationships between the Executive Office of the President (EOP) and cabinet secretaries, rather than on the inter- nal components of departments and agencies. RICHARD WEITZ, Director of Hudson’s Center for Political- Military Analysis, leads the PNSR Case Study Working Group responsible for producing studies that identify causes of recur- ring strengths and weaknesses to generate recommendations for ■ C-SPAN enhancing U.S. government structures and practices. PNSR just S. Enders Wimbush discusses secu- published its first volume of case studies, which is available on rity and defense issues Hudson’s website. This volume includes a study of how the U.S. November 11 government has managed crises with China, as well as reviews of recent American counterintelligence efforts and the U.S. mili- ■ Belgian TV tary interventions in Vietnam, Somalia, and the Gulf War. Rod Hunter on the U.S. election Weinstein and others at Hudson have been assisting PNSR November 5 to develop recommendations that could lead to substantial reg- ulatory, statutory, and congressional reforms, including a new Na - tional Security Act, presidential directives to implement changes that do not require prescription in law, and changes to congres- sional rules governing committee structure and practice to pro- vide support oversight of interagency operations, activities, and programs.

■ CNBC Diana Furchtgott-Roth discusses Obama’s agenda November 4

■ PBS Carol Adelman discusses her annual report, The Index of Global Philanthropy October 26

4 HUDSON INSTITUTE / SPRING 2009 HUDSON INSTITUTE’S NEW YORK BRIEFING COUNCIL

The spring 2009 edition of Hudson Institute’s New York Briefing Council, hosted by Hudson President Herbert London, is in formation. Confirmed speakers include:

TUCKER CARLSON GORDON CHANG BETSY MCCAUGHEY HENRY KISSINGER ED ROLLINS MORTIMER B. ZUCKERMAN

For more information, please contact Vijay Kumar at 212-476-8064 or email [email protected]. Also, please be sure to visit Hudson New Hudson President Herbert London York’s new website for commentary with author and historian Andrew McCarthy at www.hudsonny.org.

SPRING 2009 / HUDSON INSTITUTE 5 William Kristol Hudson MARCH Juan Carlos Zarate, former Deputy Assistant to the Pres- ident and Deputy National Security Advisor for Com - EVENTS bating Terrorism, discussed the state of the War on Terror, the changes in policy announced by the Obama admin- istration, and the persistent challenges likely to face Pres- ident Obama’s national security team. Zarate reviewed the evolution of al Qaeda and the terrorist threats to the United States. Richard Weitz, Director of Hudson’s Cen - ter for Political-Military Analysis, moderated.

FEBRUARY

Harvard Professor Harvey C. Mansfield is among the most noted political theorists of our time. Mansfield has written brilliantly for the past half-century on such themes as constitutionalism, executive power, party government, and indirect rule. A new compendium of essays in Mansfield’s honor, The Arts of Rule: Essays in Honor of Harvey C. Mansfield, contains the contributions of 19 of his former students. Hudson hosted a discussion of this new volume with several of Mansfield’s most notable former students: Sharon Krause, Professor of Political Science at Brown University; Mark Blitz, Claremont McKenna Professor of Political Philosophy; William Kristol, Editor of the Week- Video and audio ly Standard; and Mary Ann McGrail, an attorney with the of Hudson events are U.S. Department of Justice. Walter Berns, Resident Scho- lar at the American Enterprise Institute, moderated. available on our website Hudson Institute CEO Kenneth Weinstein introduced at www.hudson.org the event.

6 HUDSON INSTITUTE / SPRING 2009 Senator Rick Santorum, Archbishop Harvey C. Mansfield Raphael Cheenath, and Nina Shea

DEMOCRACY IN CENTRAL AMERICA: duped by Hitler and that the was a victim of HOW STRONG? Nazi aggression. Suvorov was joined in this discussion by Andrei During the 1970s and 1980s, Central America was a major Piontkovsky, Hudson Institute Visiting Fellow, and Cold War battleground, but this threat tapered off as a David Satter, Hudson Senior Fellow. Richard Weitz, wave of democratization swept the region. Today, howev- Director of Hudson’s Center for Political-Military Anal- er, the influence of Venezuelan President Hugo Chavez and ysis, moderated. his brand of populism, Iranian adventurism, organized crime and drug trafficking, and the worldwide economic JANUARY downturn pose a direct threat to democratic gains in Cen- tral America. To shed light on these challenges, Hudson’s CONVERSIONS TO CHRISTIANITY IN Center for Latin American Studies, directed by Ambassa- INDIA: CAUSES AND REPERCUSSIONS dor Jaime Daremblum, in partnership with the Institute for Foreign Policy Analysis, brought together a distin- In conjunction with the Ethics and Public Policy Center, guished group of experts on the region. Hudson Institute’s Center for Religious Freedom, directed Discussants included Jorge Vargas, a columnist for La by Nina Shea, hosted a discussion with Archbishop Nacion in San Jose, Costa Rica; Anne Krueger, a Pro- Raphael Cheenath, the Catholic Archbishop of Cuttack, fessor of International Economics at the John Hopkins’s India, and Bhubaneswar, India. Cheenath discussed the School of Advanced and International Studies; and Caleb violent attacks against Christians in India that have oc - McCarry, Senior Associate with Creative Associates Inter - curred since August 2008. He critiqued local govern- national. Hudson Executive Vice President John P. ments’ responses to the killings and their slow response to Walters, the former “Drug Czar” in George W. Bush’s the crisis. administration, gave the keynote address. Ambassador In addition to Cheenath, the event featured introducto- Daremblum moderated. ry remarks by former Pennsylvania Senator Rick San - torum, a Senior Fellow at the Ethics and Public Policy CHIEF CULPRIT: STALIN’S GRAND Center. Shea moderated. DESIGN TO START WORLD WAR II A POST-RACIAL AMERICA? Best-selling author and former Soviet army intelligence officer Viktor Suvorov has examined newly released Drawing upon ideas presented in a recent article in the Soviet documents and reevaluated existing material to Washington Post by retired columnist William Raspberry , analyze former Soviet leader Joseph Stalin’s strategic this conference addressed the question of whether or not design to conquer Europe and his reasons for supporting America has entered a “post-racial era.” Nazi Germany. Suvorov debunks theories that Stalin was In this discussion, which was co-sponsored by the

SPRING 2009 / HUDSON INSTITUTE 7 Reverend DeForest Blake “Buster” Soaries, Jr., William Christopher Sands, Gerard Boychuk, Schambra, Edward W. Norton, and Robert Woodson Ronald Dworkin, and Hanns Kuttner

Center for Neighborhood Enterprise and Hudson Insti - THE FUTURE OF DEMOCRACY tute’s Bradley Center for Philanthropy and Civic Renewal, a panel, featuring Raspberry, Reverend DeForest Blake Given recent setbacks for democracy in almost every “Buster” Soaries, Jr., Edward W. Norton, and Robert region of the world—in countries as disparate as Russia, Woodson, discussed the racial implications of Obama’s Venezuela, and Zimbabwe—serious questions have arisen election and administration. The discussion was moderat- about whether meaningful democratic reform is a realistic ed by William Schambra, Director of the Bradley Center. possibility and whether democracy promotion is an appropriate anchor for American foreign policy. IMPROVING EDUCATION Hudson Institute and the Pew Charitable Trusts con- AND EARNINGS vened a panel of distinguished experts to discuss these and FOR LOW-INCOME other questions. Panelists included Zeyno Baran, Direc - STUDENTS tor of Hudson’s Center for Eurasian Studies; Hoover Insti - tution Senior Fellow Larry Diamond; Carl Gersh man, Hudson Institute hosted a conference focused on improv- President of the National Endowment for Democracy; ing education for low-income students. Highlighting the Senior Fellow Michael McFaul; importance of postsecondary education is now essential Columbia Professor Jack Snyder; Ambassador Richard for getting a high-paying job, the speakers at the confer- Williamson, Special Envoy to Sudan; and Leon Wies - ence posited that students from low-income families are eltier, Literary Editor at the New Republic. underrepresented at every milestone in the educational George Stephanopoulos, ABC News’s Chief Wash- pipeline. CNA Senior Economist Louis Jacobson and ing ton Correspondent, moderated, and Amy Kauffman, CNA Research Analyst Christine Mokher presented new Hudson Research Fellow, introduced the event. The dis- evidence from the state of Florida that relates educational cussion was covered by C-SPAN, Al Hurra TV, and Voice achievement to earnings. Funded by the Bill and Melinda of America. Gates Foundation, the findings were documented in a Hudson Institute report entitled Pathways to Boosting the ANOTHER LOOK AT THE Earnings of Low-Income Students by Increasing Their RUSSIA-GEORGIA WAR Educational Attainment. Other discussants included Professor Thomas Bailey Many questions about the August 2008 war in Georgia of the Columbia University Teachers’ College, George- still remain. The answer to “who started the war” de - town Professor Anthony Carnevale, Chester E. Finn pends to a large degree on whether one considers the war of the Thomas B. Fordham Foundation, Hudson Insti- to have begun on August 6-8, or instead views it as part of tute’s Director for Employment Policy Diana Furchtgott- a longer period of heightened conflict that began in 2004. Roth, and Frederick Hess of the American Enterprise Given Russia’s continuing occupation of undisputed DECEMBER Institute. Georgian territory, as well as its unilateral recognition of

8 HUDSON INSTITUTE / SPRING 2009 Amb. Richard Williamson, Larry Diamond, Zeyno Baran, Richard Weitz, Viktor Suvorov, George Stephanopoulos, and Amy Kauffman Andrei Piontkovsky, and David Satter

South Ossetia and Abkhazia as “independent states,” Director of Global Governance at the Balsillie School of questions about the tactics used in early August have International Affairs, discussed his new book, National become less important than the broader intentions of the Health Insurance in the United States and Canada: Race, Kremlin. Territory and the Roots of Difference. Hudson’s Center for Eurasian Policy, directed by Zeyno Hudson Senior Fellow and practicing physician Ronald Baran, convened a panel of experts to discuss these topics. Dworkin and Visiting Fellow and former health policy Discussants included Malkhaz Mikeladze, Deputy Chief adviser in the George H.W. Bush administration Hanns of Mission at the Embassy of Georgia; Svante Cornell, Kuttner joined Boychuk in this panel discussion. Hudson Research Director and Assistant Research Professor, Cen- Senior Fellow Christopher Sands, a specialist on U.S.- tral Asia-Caucasus Institute; Andrei Illarionov, Senior Canadian relations, moderated. Fellow at the Cato Institute’s Center for Global Liberty and Prosperity. BLIND SPOT: WHEN JOURNALISTS RUSSIAN IDENTITY DON’T GET RELIGION

In his new book, Russian Identity, Hudson Institute Hudson Institute’s Center for Religious Freedom, directed Visiting Fellow Andrei Piontkovsky analyzes Russian by Nina Shea, hosted a panel discussion of the new book events from early 2006 through the fall of 2008, including Blind Spot: When Journalists Don’t Get Religion written the rise of systemic corruption, the cultivation of xenopho- by Senior Fellow Paul Marshall, Adjunct Fellow Lela bia, and a growing assault on independent media, and Gilbert, and journalist Roberta Green Ahmanson. shows how they reflect the failure of Russia’s attempt to Discussants included Marshall; Allen Hertzke, Pres i- enact reforms. dential Professor of Political Science at University of Okla - Panelists discussing the book included Stephen Ses- homa; Steven Waldman, Founder and Editor-in-Chief of tanovich, Senior Fellow for Russian and Eurasian Studies at Beliefnet; and Amy Sullivan, a former national corre- the Council on Foreign Relations, and Andrei Illarionov, a spondent for Time magazine. Hillel Fradkin, Director of former adviser to , now at Cato Institute. Hudson’s Center on Islam, Democracy, and the Future of Hudson President Herbert London moderated. the Muslim World, chaired the panel, which was carried by C-SPAN. IS CANADIAN HEALTHCARE A MODEL FOR THE U.S.? DISCUSSION OF THE CIVILIAN RESPONSE CORPS The recent debate about the U.S. healthcare system has placed much focus and acclamation upon Canada’s single- Douglas J. Feith, Director of Hudson’s Center for Nation - payer health care system. At this event, Gerard Boychuk, al Security Strategies, led a meeting of key congressional

SPRING 2009 / HUDSON INSTITUTE 9 Irwin Stelzer, William Hogan, Linda Stuntz, and Roger Sant Paul Marshall

and committee staff members in a discussion of the FUNDING FATHERS: THE UNSUNG Civilian Response Corps. As part of a joint Hudson Insti - HEROES OF THE CONSERVATIVE tute/Harvard University-Kennedy School of Government MOVEMENT project, meeting attendees discussed overcoming obstacles to the development and funding of a properly organized At a moment when conservative philanthropy is in a criti- Civilian Response Corps (CRC). The CRC will provide cally self-reflective mood, Ron Robinson and Nicole President Obama with a civilian capability to conduct sta- Hoplin of Young America’s Foundation have written a bilization and reconstruction operations in partnership book about the original funders of conservative causes. with the military, resolving problems that might otherwise Their book, Funding Fathers: The Unsung Heroes of the develop into threats or conflicts. Conservative Movement, is the first account of such fun- ders and activists as William Volker, Antony Fisher, Dean NOVEMBER Clarence Manion, and Joseph Coors, Sr. Robinson and Hoplin argue that a new generation of conservative funders LIVING WITH ENERGY DEPENDENCE should draw inspiration from examples in their book. Hudson Institute’s Bradley Center for Philanthropy and At this event, Irwin Stelzer, Director of Hudson Insti- Civic Renewal hosted Ron Robinson, as well as Aaron tute’s Economic Policy Studies, discussed his report, Dorfman of the National Committee for Responsive Phi- “Energy Policy: Abandon Hope All Ye Who Enter Here,” lanthropy, and National Review’s John Miller to discuss in which he argues in favor of a market-based approach the new volume. The Bradley Center’s William Schambra to energy policy that incorporates measures to include in moderated. This event was covered by C-SPAN. the price the cost of such externalities as the effects of pol- lution and the need to defend our oil-supply sources. A IRAN, HEZBALLAH, AND HAMAS: panel of energy experts, including William Hogan of TEHRAN’S WAR AGAINST THE WEST Harvard’s Kennedy School of Government; Roger Sant, BY PROXY? co-founder of AES Corporation and the Chairman of the Smithsonian Board of Regents; and Linda Stuntz, former Since Iran revealed its nuclear intentions in 2002, the U.S. Deputy Secretary of the Department of Energy, joined and its allies have remained focused on the question of Stelzer to comment on his conclusions. what a nuclear Iran would mean for the Middle East. To For the foreseeable future, Stelzer writes, the United address implications of Iran’s nuclear threats and the recent States will be dependent on imported oil from unfriendly actions of Hamas and Hezballah, Hudson Institute’s Cen- nations, whether or not we decide to drill at home. ter for Middle East Policy, directed by Meyrav Wurmser, Neither nuclear nor alternative fuels can be developed hosted a conference featuring a series of panel discussions. quickly enough to meet our energy needs, even if politics Panelists included Shmuel Bar, Director of Studies at and environmental concerns were not an issue. the Interdisciplinary Center Herzliya; Martin Kramer of

10 HUDSON INSTITUTE / SPRING 2009 Shmuel Bar, Meyrav Wurmser, and Martin Kramer Kenneth Weinstein

Harvard University’s Olin Institute; David Schenker, CANADA’S 2008 FEDERAL ELECTION: Director of the Program on Arab Politics at the Wash - A PREVIEW OF THINGS TO COME IN ington Institute for Near East Policy; Tony Badran of the THE UNITED STATES? Foundation for Defense of Democracies; Gilad Danen- berg of the Interdisciplinary Center Herzliya; Hussain Just days before Canada’s October 14 parliamentary elec- Abdul Hussain, a Washington Correspondent at Al Rai tions, Hudson Institute held a panel discussion with Newspaper; Hillel Fradkin, Director of Hudson Institute’s Canadian Senator Hugh D. Segal and Hudson Senior Center for Islam, Democracy, and the Future of the Muslim Fellow Christopher Sands. The two panelists considered World; Jonathan Schanzer of the Jewish Policy Center; whether the campaign north of the border offers any les- Shmuel Bachar of the Interdisciplinary Center Herzliya; sons on how voters may react to similar issues in the Matthew Levitt of the Washington Institute’s Stein Pro- upcoming U.S. elections. They also discussed the pros- gram on Counterterrorism and Intelligence; and Michael pects for future U.S.-Canada relations. Hudson CEO Oren, a Visiting Professor at Georgetown University. Kenneth Weinstein moderated.

OCTOBER THE MIND OF JIHAD

LATIN AMERICA’S RADICAL POP- The Mind of Jihad by Hudson Institute Senior Fellow ULISM CHALLENGE: WHAT’S NEXT Laurent Murawiec examines contemporary jihad and its FOR A NEW U.S. ADMINISTRATION? ideology. Murawiec traces the political technologies used by modern jihad to the Bolsheviks, whose doctrines of terror as Venezuelan President Hugo Chavez’s regime, benefiting a system of rule were appropriated by radical Islam through from high energy prices and military ties with Russia, con- multiple lines of communication. Ralph Peters, a retired tinues its push to spread radical populism throughout U.S. Army Lieutenant Colonel and essayist, and Robert Latin America. What should the new administration Lieber, Professor of Government and International Affairs anticipate? at Georgetown University, provided commentary. Hudson’s Discussants included Thelmo Vargas, Costa Rica’s for- Director of the Center for Islam, Democracy, and the Future mer Finance Minister; Javier Corrales, Associate Pro- of the Muslim World Hillel Fradkin moderated. fessor of Political Science at Amherst College; David Myers, Associate Professor of Political Science at Penn- THE COMMUNITY REINVESTMENT sylvania State University; Carl Meacham of the Senate ACT AND THE SUBPRIME MORTGAGE Foreign Relations Committee; and Nelson Cunningham , CRISIS: IS THERE A CONNECTION? Managing Partner at McLarty Associates. Jaime Darem- blum, Director of Hudson’s Center for Latin American The Community Reinvestment Act (CRA) is intended “to Studies, moderated. encourage depository institutions to help meet the credit

SPRING 2009 / HUDSON INSTITUTE 11 needs of the communities in which they operate, including PROMOTING RELIGIOUS FREEDOM low- and moderate-income neighborhoods,” according to IN SUDAN the Federal Reserve Board. Now, in the aftermath of the subprime mortgage crisis, questions are being raised about More than two million people were killed and over five mil- the operations of banks subject to CRA, as critics have lion more were displaced during the two decades of conflict charged that banks were compelled to make risky loans to in Sudan, which began when Khartoum threatened to for - unprepared borrowers and in neighborhoods with declin- cibly impose Sharia law on the country’s non-Muslim south. ing property values. Such critiques have led many to ques- A fragile peace has held since the 2005 Comprehensive tion whether there is a connection between the subprime Peace Accord, which states that non-Muslim Sudanese liv- mortgage crisis and the Community Reinvestment Act. ing in Khartoum should have complete religious freedom. The Bradley Center for Philanthropy and Civic Renew- Hudson Institute’s Center for Religious Freedom and al, directed by William Schambra, and the Center for its Director Nina Shea hosted Joshua Dau Diu, Com- Housing and Financial Markets, directed by John Weicher, misµsioner of the Special Commission for the Rights of co-hosted a panel of experts, including the National Fair Non-Muslims in the National Capital of Sudan. Diu’s Housing Alliance’s Deborah Goldberg, Howard Husock commission is charged with implementing the religious of the Manhattan Institute, Russell Roberts of George freedom of non-Muslim residents of Khartoum. At Hud- Mason University, and the Consumer Federation of Amer- son he discussed the commission’s work and his other pas- ica’s Barry Zigas, to discuss the relationship between the sions, which include supporting the country’s Inter nally subprime crisis and the CRA. Weicher moderated. displaced persons camps.

Hudson Piontkovsky, described by the “I feel tremendously relieved after Washington Post as “one of Russia’s the enormous pressure of my trial. And Scholar most pungent political commenta- I’m proud of many Russian people— Absolved of tors,” has harshly criticized Russian my academic colleagues, my readers, leader Vladimir Putin in his Novaya my lawyers, and especially the group Extremism Gazeta column and in his books, in- of experts appointed by court—who Charges in cluding Another Look Into Putin’s courageously supported me and pre - Soul (Hudson Institute, 2006) and his vented an unjustice,” Piontkovsky said. Russia most recent Russian Identity (Hudson In a profile of Piontkovsky during Institute, 2008). his trial, noted: During a first hearing in September “Civil-rights groups said the pressure More than a year after being accused 2007, government prosecutors failed on Piontkovsky…was by far the high- of “extremist activities” by the govern- to prove that material in Piontkovsky’s est-profile move to silence a Kremlin ment of his native Russia, Hudson Vis- writings constituted extremist activi- critic.” iting Fellow ANDREI PIONTKOVSKY ty. As a next step, the circuit judge has been exonerated of all charges. In sent Another Look into Putin’s Soul, a an echo of the Soviet era, Piontkovsky critical look at Russia’s former presi- was twice summoned to Moscow for dent, to a panel of experts to deter- allegedly violating a law that that has mine whether the material is indeed, widely expanded the scope of illegal by Russian law, extremist. In unex- “extremist activities.” So-called ex- pected defiance of authorities, the ex- tremist acts now include “abasement perts from Moscow University Philo - of national dignity” and “slander of a logical found Piontkovsky’s writings public official.” do not contain extremism.

12 HUDSON INSTITUTE / SPRING 2009 CHRISTOPHER SANDS is a Hudson Senior Fellow whose work focuses on Canada and the North American economy. Since joining Hudson in March of 2007, Sands has writ- ten on exchange rate instability, North American energy, border security, and the auto industry, as well as trends in international democracy assis- tance, Quebec separatism, the Afghanistan mission and the future of NATO, and the Security and Prosperity Partnership of North America. “Hudson Institute has a long tradition of research on North America. I can’t think of anyone better suited to carrying this tradition forward than Chris Sands. He’s an astute observer of both U.S. and Canadian politics and economics and has added real depth to our research bench,” says Hudson CEO Ken- neth Weinstein. The concentration of Canadian media in Washington has made Sands a familiar interpreter of the United States for audiences across Canada. He is a regular commentator on Canadian TV, including the CBC, CTV, and Glob- al TV, and his articles and op-eds have been published in Canada’s National Post, Globe and Mail, and Macleans. He is regularly cited in a variety of Canadian newspapers and magazines, such as Canadian Readers’ Digest, the Calgary Herald, and the Edmonton Journal. Sands has also provided commentary on Canadian affairs, the North American economy, and U.S. politics for Fox News, CNN, and the BBC. Sands plans to launch a major study of a problem that confronts virtually every level of government in North America: how to reconcile competing demands for energy supplies, environmental stewardship, economic growth, transportation, and infrastructure. The project, “Alternative Energy Futures for North America,”will use methods pioneered by Hudson founder Herman Kahn and others to develop normative, multi-sector scenarios of the near-term future to illustrate various options for policymakers. Sands hopes to present the scenarios to state and provincial governments whose regulatory and land use decisions will shape outcomes over the next decade. SCHOLAR In 1999-2000, Sands was a Fulbright Scholar and Visiting Fellow at the Norman Paterson School of International Affairs at Carleton University in IN THE Ottawa. A native of Michigan, he holds a B.A. in political science from Macal - ester College in St. Paul, Minnesota, and an M.A. and Ph.D. in Canadian stud- SPOTLIGHT ies and international economics from the Paul H. Nitze School of Advanced International Studies at the . He is a member of the American Political Science Association, the International Studies Associa- tion, and the Association for Canadian Studies in the United States. Hudson Institute’s interest in Canadian affairs dates back to the leader- ship of Herman Kahn, who viewed Canada as a country that holds a unique combination of resource wealth, productive energy, and democratic val- ues. Hudson maintained a branch office in Montreal, and produced a sem- inal 1976 study, Canada HAS a Future by current Hudson Trustee and Sen- ior Fellow Marie-Josée Kravis and former Hudson policy analyst B. Bruce Briggs (with an introduction by Herman Kahn), which is still cited today.

SPRING 2009 / HUDSON INSTITUTE 13 ■ Hudson Institute ■ A Time to Speak Perspectives for the By Judge Robert Bork New Administration (ISI) Series By Seth Cropsey, In A Time to Speak, Judge Robert Jaime Daremblum, Bork, Hudson Institute’s Distin- Douglas Feith, guished Fellow, has gathered his most Christopher Ford, important writings. The volume in - Hillel Fradkin, cludes more than 60 contributions on Diana Furchtgott-Roth, topics ranging from President Nixon Charles Horner, to St. Thomas More, from abortion Hanns Kuttner, to antitrust policy, and from civil lib- Herbert London, erties to natural law. The book also Hassan Mneimneh, includes several of his judicial opin- Laurent Murawiec, ions and transcribed oral arguments. Nina Shea, Advice for Irwin Stelzer, John Weicher, ■ Blind Spot: the Obama Kenneth Weinstein, When Journalists administration, and S. Enders Wimbush Don’t Get Religion (Hudson Institute) By Paul Marshall, religion and the Lela Gilbert, and Hudson Institute released a series of Roberta Green media, Russia, policy papers aimed at advising the Ahmanson foreign aid, transition team and the Obama ad- (Oxford) ministration on a host of critical glob- capitalism, al and domestic policy issues. Paper This book, co-authored by Senior Fel- the Muslim topics include the new “Greater Mid- low Paul Marshall and Adjunct Fel- dle East,” challenges in Latin America, low Lela Gilbert, with Roberta Green Brotherhood, repairing public diplomacy, regulatory Ahmanson, examines how the media and more policy, healthcare, housing, religious frequently miss or misunderstand sto- freedom, infrastructure, intelligence, ries on religion. To the extent that international negotiations, and more. journalists do not grasp events’ reli-

14 HUDSON INSTITUTE / SPRING 2009 gious dimensions, both global and ■ Foreign Aid: in investigating and understanding local, the authors argue they are hin- What Works and modern jihad. Hudson Senior Fellow dered from, and sometimes incapable What Doesn’t Laurent Murawiec examines the sim- of, describing what is happening. By Carol Adelman and ilarities between Europe’s medieval Blind Spot has been re viewed in the Nicholas Eberstadt apocalyptic and millenarian insurrec- Wall Street Journal, the Weekly Stan- (American Enterprise tions and modern Mahdism in the dard, and other publications. Institute) world of Islam. This work is a compi- lation and update of two books he Carol Adelman, Director of Hudson’s published with Hudson Institute, The ■ Current Trends Center for Global Philanthropy, co- Mind of Jihad (2005) and Pandora’s in Islamist authored this monograph with Ameri- Boxes: The Mind of Jihad Vol. 2 Ideology: can Enterprise Institute Resident Fel- (2007). Of the book Fouad Ajami has Volume VII low Nicholas Eberstadt. The paper written, “This is a work that will Edited by offers a critique of the current foreign make for itself a sure place in the Hillel Fradkin, aid model, arguing that today’s devel- writings on Islamic radicalism.” The Eric Brown, and opment assistance operates in a differ- Mind of Jihad has been reviewed in Hassan Mneimneh ent environment than it did in the past. the New York Post,theWeekly (Hudson Institute) The factors common to previous suc- Standard, and National Review. cessful foreign aid projects are also This volume of Current Trends fea- identified. Adel man and Eberstadt tures an essay by Hudson Visiting propose a new business model for for- ■ The New Capitalism Scholar Nibras Kazimi entitled “The eign aid—one that does away with the By Irwin Stelzer Caliphate Attempted,” which des - “one size fits all solution” and instead (Hudson Institute) cribes the dispute that has developed offers a flexible, tailored approach to within al-Qaeda over the move- each country’s changing conditions In The New Capitalism, Irwin ment’s failed efforts to reconstruct an and development opportunities. Stelzer, Director of Hudson’s Eco- Islamic Caliphate in Iraq. The vol- nomic Policy Studies, offers an inno- ume also includes essays on religious vative analysis of the forthcoming politics in Pakistan, the Sunni and ■ The Mind of Jihad economic order. “The New Capit al - Shiite revival in post-Soviet Azerbai - By Laurent Murawiec ism” is characterized by reforms jan, jihadism in Italy and Germany, (Cambridge) designed to reduce individual and and the Muslim Brotherhood’s con- systemic risk. It reflects growing un- cept of education. The Mind of Jihad breaks new ground ease with the effects of free trade and

SPRING 2009 / HUDSON INSTITUTE 15 excessive executive compensation. ines case studies of 145,000 students ■ The Robertson Free-market capitalism as we have in the State of Florida from 1996 to v. Princeton Case: known it since the last round of 2007 and presents new evidence that Too Important reforms during Franklin Roosevelt’s relates educational achievement to To Be Left New Deal is gone, and is being re- earnings. This study is the largest ever to the Lawyers placed by a New Capitalism. The to correlate education and income By Neal Freeman, monograph’s findings were cited in levels. The conclusion: a two-year With Comments by , Boston Herald, degree in the health care field holds Pablo Eisenberg, Atlanta Journal Constitution, on Fox the promise of a well-paying career Peter Frumkin, News’s Special Report, and in many for students of many degrees of abili- Heather Higgins, other media outlets. ty. The report’s findings have been Adam Meyerson, cited in Inside Higher Education. Anne Neal, James Piereson, ■ Pathways to Terrence Scanlon, Boosting the ■ Russian Identity Jack Siegel, Earnings of By Andrei Piontkovsky Tim Walter, and Low-Income (Hudson Institute) Martin Morse Wooster, Students by and a Response by Increasing Andrei Piontkovsky’s Russian Iden - Neal Freeman Their tity is the sequel to his bestselling (Hudson Institute) Educational Another Look into Putin’s Soul Attainment (Hud son Institute, 2006), which cov- In this paper commissioned by Hud- By Louis Jacobson, ered modern Russian history from son Institute’s Bradley Center for and Christine Mokher 1999-2006. In Russian Identity, Philanthropy and Civic Renewal, (Hudson Institute) Piont kovsky, a Hudson Visiting Sen- foun dation management consultant ior Fellow, analyzes the events from Neal Freeman gives an insider’s anal- Hudson Institute’s Center for Em - early 2006 through the fall of 2008, ysis of the settlement of Robertson v. ployment Policy, directed by Diana including the rise of systemic corrup- Princeton University, arguably the Furchtgott-Roth, released a new tion, the cultivation of xenophobia, most important court case on donor study by CNA economists Louis and a growing assault on independent intent in a generation. The case was Jacobson and Chris tine Mokher. media, and shows how they reflect the settled in late 2008 when Princeton Funded by the Bill and Melinda failure of Russia’s attempt to enact agreed to pay nearly $100 million to Gates Foundation, the paper exam- reforms. a new foundation created by the

16 HUDSON INSTITUTE / SPRING 2009 Robertson family. Freeman, who was ■ Sources of Islamist Institute for Policy Strategy. The part of the family’s litigation support Strategic Thought monograph examines the diversity team, offers his thoughts on the By Shmuel Bar of strategic visions within the world- reasons Princeton may have settled, (Hudson Institute) wide Islamist movement and exam- how the Robertson family viewed the ines how these vis ions have shaped outcome, and what the settlement—a This monograph, written by Adjunct the operational con duct of Islamist just one in Freeman’s opinion— Fellow Shmuel Bar, is the result of actors like al Qaeda, the Muslim means for donors, grantees, and phil- findings from a year-long research Brotherhood, Hizb ut Tahrir, and the anthropy in America. Freeman’s essay pro ject by Hudson Institute and the Islamic Republic of Iran. is followed by comments from opin- ion leaders in philanthropy.

HUDSON INSTITUTE ■ Strategies of the Muslim Brotherhood LEADERSHIP AND Movement COMMUNICATIONS 1928-2007 By Israel Elad Altman (Hudson Institute) Kenneth R. Weinstein Herbert I. London This monograph is the second in Chief Executive Officer President Hud son’s series of monographs on John P. Walters S. Enders Wimbush Islamist strategies published by Hud- Executive Vice President Senior Vice President, International son’s Center on Islam, Demo cracy, Programs and Policy and the Future of the Muslim World. Deborah L. Hoopes Grace Paine Terzian The monograph looks at the Muslim Vice President and Vice President, Chief Financial Officer Communications Brotherhood movement in contem- porary Egypt, Syria, Jordan, and Ga - Amanda Sokolski Rachel DiCarlo Currie Director of Development Managing Editor za, and details the evolving range of jihadist, political, and ideological Katherine Smyth Mitzi H. Pepall Corp. Sec. and Program Manager Art Direction and Design stra t egies the movement has em - ployed in its pursuit of power since its Philip Ross Ioannis Saratsis Audio Visual Specialist and Research Associate and creation in Egypt in 1928. Events Coordinator Communications Coordinator

Intern Joan Niesen provided assistance with this newsletter.

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SPRING 2009 / HUDSON INSTITUTE 17 believe in genuine democracy, and his alliance with one of the most corrupt leaders in recent history has crippled his Commentary country’s democratic institutions. Weekly Standard, January 26

SETH CROPSEY “WE SHOULD BUILD A To read the full text of each article, Reuters, February 5 BIGGER NAVY” please visit www.hudson.org. Aircraft carriers are not only important Sunday Times, March 1 DIANA FURCHTGOTT-ROTH as a symbol of a great or growing mili- “HOW CONGRESS IS HURTING tary power. They are useful and tre - IRWIN STELZER THE ECONOMY” men dously adaptable instruments of “OBAMA SETS THE RED INK force. We are still witnessing only the FLOWING” At the very time that the Senate is debat- beginning of China’s naval build-up, ing whether to spend $800 billion or but the carriers will have a profound The estimates for this budget assume $900 billion to stimulate the economy, impact on its ability to project military that the economy, which declined at an the government is considering other leg- force as disputes with its neighbors, in - annual rate of 6.2 percent in the final islative and regulatory initiatives that cluding Japan, over potentially energy- quarter of last year, will grow at a rate of would im pede economic recovery. By rich sea beds and islands in the South 3.2 percent next year and more than 4 inserting protectionist provisions that and East China Seas fester. percent in 2011, 2012 and 2013. It as - re quire some goods financed by the sumes the farm lobby will allow Con- stimulus bill to be made in America, European Voice, January 22 gress to end subsidies to agribusinesses, Congress is risking a trade war with and that military spending can be cut important trading partners in Europe ROD HUNTER without imperiling national security. and Asia. A trade war would reduce “A THREE-PART PLAN Most crucially, it assumes that a spend- exports, po te ntially destroy ing millions FOR REFORMING THE thrift Congress will change its ways to of American jobs. TRANSATLANTIC MARKET” please the president. The American, February 3 The transatlantic market remains cen- Bloomberg, February 27 tral to the global economy. Yet barriers JAIME DAREMBLUM mar the transatlantic market and stunt CHUCK BLAHOUS “DEMOCRACY IS UNDER ATTACK growth. While tariffs are generally low “SOCIAL SECURITY FIX IN NICARAGUA” (about 3 percent), the combined effect of DEMANDS HONEST NUMBERS” tariff and non-tariff barriers amounts to As Central America’s poorest country— an average tariff rate of about 7 percent The pattern unleashed by the 1983 So cial and the second poorest in Latin America, for the U.S. and 10 percent for the E.U., Security reforms—large annual surplus- behind only Haiti—Nicaragua desper- according to the World Bank. es, followed by large annual deficits—is ately needs the combination of political call for grander ambition for the transat- so striking that it’s natural for many to and economic freedom that has fueled lantic market and its role in the world. assume that it was willful, that negotia- impressive growth elsewhere in the tors in 1983 thought the trust funds Western Hemisphere and around the Forbes.com, January 12 could be built up and used to pre-fund world. This is especially true at a time of Baby Boomer benefits in the deficit years. global economic crisis. Regrettably, the DAVID SATTER The documentary evidence refutes this. current Nicaraguan president does not “THE COLD WAR OVER HEATING”

18 HUDSON INSTITUTE / SPRING 2009 Even if gas starts flowing to the West, the nature of incitement to religious hatred core dispute between Russia and Ukraine such as anti-Semitism, Christian-phobia Wall Street Journal, December 9 is unlikely to be quickly resolved. Ukraine and, more particularly, Islamophobia.” has stockpiled enough gas to last until DOUGLAS J. FEITH April. For her part, Russia has little incen- Weekly Standard, December 22 “INDIA IS A KEY ALLY IN THE WAR tive to relent because the conflict has ON TERROR” already become a test of strength. The RONALD DWORKIN confrontation takes place, moreover, in a “SLICE OF LIFE” The Bush administration has bolstered murky and opaque but critical sector that U.S. homeland security and disrupted is shaped by corruption, the nature of the What feature of modern America has not terrorist networks around the world gas infrastructure, and the rising political been blamed on advertisers and con- through direct action against individual tensions between Russia and Ukraine. sumerism? Sociologists have been work- terrorists, the overthrow of the Taliban ing this angle since the 1950s, when C. and Saddam Hussein regimes, pressure Wall Street Journal, January 8 Wright Mills accused slick Madison Av - on terrorist finances, law enforcement, enue executives of manipulating people’s and intelligence cooperation with num- BETSY MCCAUGHEY fears and preying on their “status panic” erous foreign partners. But there is no “HOSPITAL SCRUBS ARE A to get them to buy certain products. This denying that the administration has fall- DEADLY, GERMY MESS” is nothing new. Nor can the advertising en down on the job of countering ideo- industry’s aggressiveness explain why logical support for terrorism. The presi- Dirty scrubs spread bacteria to patients Americans are so receptive to the cosmet- dent’s frequent talk of promoting in the hospital and allow hospital super- ic surgery message. Advertisers can only demo cracy in the Muslim world is far bugs to escape into public places such as sell people what they want. short of a systematic, comprehensive restaurants. Some hospitals now prohib- effort to wage a battle of ideas against al it wearing scrubs outside the building, The Independent, December 18 Qaeda and the jihadist movement gen- partly in response to the rapid increase in erally. This is an area where President- an infection called “C. diff.” A national JEREMIAH NORRIS elect Obama can make an important hospital survey released last November “QUALITY FEARS OVER AIDS new contribution to national security. warns that Clostridium difficile (C. diff) GENERIC DRUGS” infections are sickening nearly half a mil- Pajamas Media, December 6 lion people a year in the U.S., more than The annual World AIDS Day saw health six times previous estimates. activists lobby their governments to CHRISTOPHER FORD spend ever larger sums and to achieve “MUMBAI MADE CLEAR THE Forbes.com, December 24 “universal” anti-retroviral treatment by DANGERS OF NUCLEAR 2010. This ambitious target will only be PROLIFERATION” ANNE BAYEFSKY met if political considerations continue to “THE U.N.’S DANGEROUS HIGH trump science and to endanger HIV/- The Mumbai terrorist attacks and their COMMISSIONER FOR HUMAN AIDS patients. The World Health Organ- potential to re-poison the relationship RIGHTS” ization (WHO) is the brains behind this between India and Pakistan suggest that “universal” supply of anti-retrovirals for we should not be too sanguine about the In addition to demonizing Israel, Durban 9.7 million HIV/AIDS patients by 2010. stability of nuclear deterrence in a prolif- II’s draft outcome document contains It is based on the massive use of copy erated world. Even if nuclear weapons eight condemnations of “Islamopho- drugs from India, bringing the numbers tend to encourage mutually-deterring bia,” four more worries about Islam, 12 of patients in poor countries on treatment relationships between possessor states worries about Muslims, 11 criticisms of up from virtually none in the early 2000s (an assumption that, while plausible, is the defamation of religions (i.e. Islam), to 3.5 million today. While activists have no more than an extrapolation from a along with a few phrases like “Calls upon applauded the speed of this “scale-up,” it single U.S.-Soviet case study and a mere States to pay attention to the serious creates dangers. decade of sometimes tension-filled Indo-

SPRING 2009 / HUDSON INSTITUTE 19 Pakistani nuclear confrontation), there is might be described as excellent. The con- class voters now deserting the GOP for no guarantee that any actual possessors’ sequence, of course, is decline at the top more government-friendly policies? And relationships will be stable. of the achievement pyramid, some up- will not the GOP thus be kept out of ward movement at the bottom, and a power by what David Brooks of the National Post, December 6 bulge in the middle. New York Times sees as the divide be- tween “reformers” who recognize these CHRISTOPHER SANDS Weekly Standard, November 24 realities and “traditionalists” who want “CANADA’S PEACE, ORDER, AND the old-time anti-government religion UNRELIABLE GOVERNMENT” NINA SHEA (not to mention actual religion)? These “WORLDWIDE arguments wilt under examination. The United States has over the past four HATE SPEECH LAWS?” years relied frequently on unilateral ap- National Review Online, November 17 proaches when it came to border secur - Especially since 9/11, Islam has been ity, or defense of the continent against pub licly scrutinized, criticized, and JOHN WEICHER missile attacks. It has also left Canada some times ridiculed in the West to an “FOR THE GSES THE GOAL WAS alone on economic issues, including extent never seen (or permitted) in Mus - ALWAYS PROFIT” some that matter, such as climate lim lands. Many Muslims feel deeply change. Engaging Canada is time-con- offended by this, as well as troubled by If the affordable-housing goals don’t suming and ultimately futile if Can- the violent responses the criticism has account for the Government Sponsored a dian governments cannot—or will sometimes drawn from Muslims—riots, Enterprises’ (GSEs’) behavior, what not—act. Scores of Canadian foreign- death threats, even murders. Their lead- does? the best explanation is the sim- policy scholars have offered variations ers’ solution is to try to halt the cycle by plest: The GSEs badly misjudged the risk on the opinion that Canada must be able demanding an end to criticism of Islam, of subprime mortgages. So did other to do things, not just talk about things, in even in private speech. For the past dec - lenders. But the GSEs—because they order to regain influence in international ade, the Saudi-based Organization of the were bigger, were required to hold less affairs. The problem is acute when deal- Islamic Conference (OIC) has pushed capital, and carried the implicit backing ing in Washington, a city of bluff players the U.N. to adopt a universal ban on de- of the U.S. government—took the skeptical of words and attentive to faming Islam. This measure would aim biggest risk and had the biggest fall. deeds. to curb the freedom not only of Danish cartoonists but also of scholars, writers, Chronicle of Philanthropy, Nov. 13 American Spectator, December 3 dissidents, religious reformers, human rights activists, and anyone at all any- WILLIAM SCHAMBRA HERBERT LONDON where in the world who criticizes Islam. “THE FAILURE OF “COMPRESSION AT THE MEAN” CONSERVATIVE Globe and Mail, November 18 PHILANTHROPY?” Almost all recent education funding has been designed to assist those in the bot- JOHN O’SULLIVAN Whatever successes American conser- tom quartile of performance. Schools “A FUTURE FOR U.S. vatism enjoyed since the 1960s owe very that are not performing well receive more CONSERVATIVES” little to the conniving of wealthy donors, funding than schools that meet state and a great deal to fratricidal impulses guidelines, based on the assumption that Conventional wisdom maintains that within liberalism, some of them fueled additional funding can influence per- even if conservatives are well-placed by the largest American foundations. At formance. And in some cases, this has electorally, they will be dragged down by the peak of liberalism’s last moment of proven to be the case. The bottom moves broader ideological failures and cultural triumph—President Lyndon Johnson’s closer to the middle of the pack. Yet total- divisions. Does not the financial crisis Great Society, in the early ’60s—Ameri- ly ignored in this distribution scheme are show the bankruptcy of free-market eco- ca saw an unprecedented outpouring of those in the highest quartile, those who nomics? Are not well-educated middle- social and economic change. But unlike

20 HUDSON INSTITUTE / SPRING 2009 social-change movements of the past, as ber 11 brought home the serious flaws to discover that “markets can stay irra- Daniel Patrick Moynihan famously that the national security establishment tional longer than you can stay solvent”— observed in Maximum Feasible Misun- suffers. as Keynes put it. der standing, this one was driven not by mass political mobilization but rather by Cambridge University Press Online, Oct. 16 Hudson Institute, September 11, 2008 elites trained in professions like social welfare, law, urban planning, sociology, LAURENT MURAWIEC DENNIS AND ALEX AVERY psychology, and public policy. “CAN TERROR BE UNDERSTOOD?” “THE WORLD BANK URGES A NEW GREEN REVOLUTION” , October 29 Mahdist jihad cannot be understood as a zweckrational organizational outlook: it Katherine Sierra, the World Bank’s Vice ZEYNO BARAN occurs and flourishes in societies that are President for Sustainable Development, “U.S. AND CHINA HAVE SHARED tribal, pre-modern, where family and says climate change will mean more INTERESTS” clan play far more of a role than institu- droughts, floods, more outbreaks of pests tions of state, to which no loyalty is felt and disease, more heat stress for livestock For more than a decade, the U.S. has or due. This is the case from Pakistan to and less arable land for crops. She warns worked to ensure that oil and gas from Egypt, from Iran to Algeria. The default the world “dropped the ball” on agricul- central Asia would reach global markets organizational form taken by all rebel- tural science after the Green Revolution via multiple pipelines, avoiding Iran and lious, youth-oriented groups in the Mid- saved a billion people from starvation and promoting alternatives to Russian con- dle East is the futuwwah, riotous young preserved 16 million square miles of forest trolled routes. U.S. companies hold big men’s clubs that were now opposing, from being plowed for more low-yield stakes in Kazakhstan’s two largest oil and now allied to government, and operate as crops. We are delighted that Sierra now gas projects, Tengiz and Kashagan, both semi-secret societies, with Sufi-based ide- agrees with us—that the world faces its of which lead to export pipelines in a west- ologies and a great deal of violence. biggest-ever food production challenge in erly direction via the Caspian Pipeline the next 40 years—but global warming Con sortium (CPC) line. CPC needs to be Forbes.com, September 26 doesn’t have much to do with it. expanded to account for an increase in production, but the dispute with Russia MARIE-JOSÉE KRAVIS HOROWITZ CONTINUED FROM PAGE 1 over Georgia has prevented progress so far. “HARDLY UNFETTERED!” office and many grassroots organizations, to negotiate the details of the legislation and en- Christian Science Monitor, October 19 Despite the need for a government rescue sure the bill’s passage in Congress. of our shambolic financial markets, re - Horowitz and others were invited to the KENNETH WEINSTEIN ports of the death of the free market sys- Oval Office to witness Bush sign the bill into AND RICHARD WEITZ tem have been greatly exaggerated. Quite law. “Trafficking is the slavery of our time,” “U.S. NATIONAL SECURITY’S the contrary, the lessons of the past week - says Horowitz. “Every effort of mine was CHALLENGE: COMMUNICATION” —or rather the past year—confirm that made to bring together the right and left, reli- markets work all too well. Sooner or later, gious and secular, to focus on this issue we all Bureaucratic barriers and cultural ten- markets punish voracious and imprudent care deeply about.” sions between the departments of State risk taking, loose money, misdirected or Of Horowitz’s role the Washington Times and Defense circumscribed effective in- inadequate regulation and lax oversight, wrote, “It is safe to say the legislation would teragency cooperation in the aftermath all of which played a role in the current not exist without the wholehearted passion of the invasion of Iraq, despite the rela- debacle. and incredible commitment, dedication, skill, tively successful example of interagency The foundations of a free market sys- and determination of Michael Horowitz.” planning for Kosovo that had been facil- tem are discipline, restraint, rationality, “We’re extremely proud of Michael’s hard itated by a 1997 presidential directive. de layed gratification, enterprise, rule of work and the major influence he had in this Once again knowledge did not bridge the law, and accountability. More or less every extremely important bill,” Hudson President change in administrations. Then Septem- 10 years, these conditions are tested, only Herbert London said.

SPRING 2009 / HUDSON INSTITUTE 21 SCHOLARS CONTINUED FROM PAGE 1 Hudson is also pleased to announce the HUDSON INSTITUTE BOARD OF TRUSTEES arrival of four new scholars, Chuck Allan R. Tessler, Chairman of the Board Bla hous, Hanns Kuttner, Mario Chairman, International Financial Group, Inc., Wilson, WY Mancuso, and Elizabeth Sam- Walter P. Stern, Chairman Emeritus son. “These ac complished scholars dem - Vice Chairman, Capital International, Inc., New York, NY onstrate the expanding strength of Hud- son’s research portfolio,” Chairman Allan Linden S. Blue, Ebrahim Moussazadeh, Tessler said. Vice Chairman, General Atomics, Matrix Creations, San Diego, CA New York, NY Previously, Chuck Blahous served in Rudy Boschwitz, Neil H. Offen, George W. Bush’s administration as Dep uty Chairman, Home Valu Interiors, President, Direct Selling Association, Minneapolis, MN Washington, DC Director of the National Econ omic Coun cil and Executive Direct or of the President’s Gerald Dorros, MD, Yoji Ohashi, Com mis sion to Strengthen Social Se curity. William Dorros-Isadore Feuer Chairman, All Nippon Airways Co., Ltd., He joins Hudson as a Senior Fellow. Interventional Cardiovascular Disease Tokyo, Japan Foundation, Buckeye, AZ At Hudson, Blahous will continue to Carolyn S. Parlato, write on issues within his broad portfolio of Roy Innis, President economic expertise, including several of the National Chairman, C&C Shorelands, Inc., most urgent challenges facing the U.S. econ- The Congress of Racial Equality, Mamaroneck, NY New York, NY omy. A leading expert on retirement policy E. Miles Prentice, III, and the author of Reforming Social Securi- Jan Henrik Jebsen, Partner, Eaton & Van Winkle LLP, ty (Greenwood Publishing, 2000), Blahous Gamma Applied Visions Group New York, NY Holding SA, Nyon, Switzerland will publish his research on challenges fac- Steven Price, ing the employer-provided pension system. Lawrence Kadish, FiveWire Media He also plans another book detailing the Old Westbury, NY New York, NY current state of the Social Security debate.

Deborah Kahn Cunningham, Jack Rosen, Blahous will continue to analyze several Consultant, DKC Group Rosen Partners, New York, NY other issues confronting the new adminis tra - New York, NY tion and Congress, including Federal budget Nina Rosenwald, policy, entitlement reform, demo gra phic Marie-Josée Kravis, Senior Fellow, American Securities, Hudson Institute, New York, NY change, economic stimulus, financial mar- New York, NY ket stabilization, housing, and energy. William D. Siegel, Prior to serving as Deputy NEC Direc- George Lichtblau, New York, NY New Canaan, CT tor, Blahous served as a Special Assistant to Max Singer, the President for Economic Policy from Herbert I. London, Senior Fellow, 2001 to 2007, during which time he also President, Hudson Institute, Hudson Institute, served as Exec utive Director of the biparti- New York, NY Washington, DC san Presi dent’s Commission to Strengthen Robert Mankin, Kenneth R. Weinstein, Independent Management Consultant, Chief Executive Officer, Financial Services, New York, NY Hudson Institute, Washington, DC Robert H. McKinney, Chairman, Executive Committee Curtin Winsor, Jr., First Indiana Corporation, McLean, VA Indianapolis, IN John C. Wohlstetter, Stephan M. Minikes, Senior Fellow, Xenophon Strategies, Discovery Institute, Washington, DC Washington, DC Chuck Blahous

22 HUDSON INSTITUTE / SPRING 2009 Social Security. Blahous holds a Ph.D. in 2005 to 2007, Mancuso served as the Dep- com putational quantum chemistry from the uty Assistant Secretary of Defense for Spe- CONGRESSIONAL TESTIMONY University of Califor nia/Berkeley. He has cial Operations and Combating Terrorism. pub lished on topics ranging from Social Mancuso graduated from Harvard Uni- Security, federal entitlements and demo- versity and received his law degree from graphics, to chemistry and baseball statistics. New York University School of Law. A for- mer Army infantry officer, he is a combat Hanns Kuttner joins Hudson as a Vis- veteran of Operation Iraqi Freedom. iting Fellow. His current research projects focuses on healthcare. Previously, he was a Elizabeth Samson, an attorney spe- JAIME DAREMBLUM Research Associate at the University of cializing in international and Constitutional TESTIFIES BEFORE THE HOUSE Michigan’s Economic Research Initiative on law, also joins Hudson as a Visiting Fellow. COMMITTEE ON FOREIGN AFFAIRS the Uninsured. During the presidency of She will work on the Free Speech Project. MARCH 3 George H.W. Bush, Kuttner was part of the Samson formerly served as an Adjunct Pro- White House domestic policy staff with fessor of In ternational Law and Con - Political polarization and ethnic ten- sions in Bolivia have increased sub- responsibility for health and social service stitutional Law at the City University of New stantially. Bolivia suffers from ex - programs. He has written extensively about York, Queens College. She also worked in tremely high levels of poverty and issues relating to Americans’ health insur- the New York State Legislature from 2005 to inequality, and is divided sharply ance status and the potential for improving 2006 on legislation that amended the penal along racial and geographic lines. the American health care system. law and criminal procedure law. She has Economic disparities, cultural re - Kuttner has an A.B. from Princeton Uni- published extensively on First Amendment sentments, and repeated attacks on versity. His graduate training was at the Uni- issues, international law, and the misuse of democracy by the Morales govern- versity of , where he received an foreign and domestic judicial systems. ment have turned Bolivia into a bub- M.A. degree from the Irving B. Harris Grad- Samson holds a B.A. in Political Science bling cauldron of instability. Morales uate School of Public Policy Studies. from Queens College, a J.D. from Fordham seems to be copying the authoritari- Law School, and an LL.M. in International an leftism of Venezuelan President Mario Mancuso joins Hud son as a and European Law from the University of Hugo Chávez. Visiting Senior Fellow. His research will Amsterdam, the Netherlands. ZEYNO BARAN focus on port security. From 2007 to 2009, TESTIFIES BEFORE THE SENATE he served as Under Secretary of Commerce FOREIGN RELATIONS COMMITTEE in George W. Bush’s ad minis tration. As Un - FEBRUARY 26 der Secretary, Mancuso was responsible for promoting U.S. leadership across strategic Why is Islamism a threat to dem oc - industry and technology sectors to advance racy? Because sharia regulates every U.S. security and economic objectives. In aspect of an individual’s life; more- this role, Mancuso identified and opened over, since it is considered to be key export markets around the world for God’s law, no compromises are pos- sible. The holistic nature of Islamist U.S. technology products and services con- Mario Mancuso sistent with U.S. security interests. From ideology makes it fundamentally incompatible with the self-criticism and exercise of free will necessary for human beings to form truly liber- al and democratic societies…. It is therefore important to shine a light on what is truly going on under the so-called Islamic regimes—so Mus - lims can see for themselves that life under a sharia-based legal system is not, in fact, better than under liberal Hanns Kuttner Elizabeth Samson democracy.

SPRING 2009 / HUDSON INSTITUTE 23 HUDSON INSTITUTE

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