S. HRG. 108–646 THE GREATER MIDDLE EAST INITIATIVE: SEA ISLAND AND BEYOND HEARING BEFORE THE COMMITTEE ON FOREIGN RELATIONS UNITED STATES SENATE ONE HUNDRED EIGHTH CONGRESS SECOND SESSION JUNE 2, 2004 Printed for the use of the Committee on Foreign Relations ( Available via the World Wide Web: http://www.access.gpo.gov/congress/senate U.S. GOVERNMENT PRINTING OFFICE 96–429 PDF WASHINGTON : 2004 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 11-MAY-2000 12:29 Nov 10, 2004 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 96429.TXT SFORELA1 PsN: SFORELA1 COMMITTEE ON FOREIGN RELATIONS RICHARD G. LUGAR, Indiana, Chairman CHUCK HAGEL, Nebraska JOSEPH R. BIDEN, JR., Delaware LINCOLN CHAFEE, Rhode Island PAUL S. SARBANES, Maryland GEORGE ALLEN, Virginia CHRISTOPHER J. DODD, Connecticut SAM BROWNBACK, Kansas JOHN F. KERRY, Massachusetts MICHAEL B. ENZI, Wyoming RUSSELL D. FEINGOLD, Wisconsin GEORGE V. VOINOVICH, Ohio BARBARA BOXER, California LAMAR ALEXANDER, Tennessee BILL NELSON, Florida NORM COLEMAN, Minnesota JOHN D. ROCKEFELLER IV, West Virginia JOHN E. SUNUNU, New Hampshire JON S. CORZINE, New Jersey KENNETH A. MYERS, JR., Staff Director ANTONY J. BLINKEN, Democratic Staff Director (II) VerDate 11-MAY-2000 12:29 Nov 10, 2004 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 96429.TXT SFORELA1 PsN: SFORELA1 CONTENTS Page Biden, Hon. Joseph R., Jr., U.S. Senator from Delaware, opening statement ... 10 Cronin, Dr. Patrick M., Senior Vice President and Director of Studies, Center for Strategic and International Studies, Washington, DC ................................ 48 Prepared statement .......................................................................................... 52 El Hassan Bin Talal, His Royal Highness of the Hashemite Kingdom of Jordan, Royal Palace, Amman, Jordan .............................................................. 28 Prepared statement .......................................................................................... 35 Hagel, Hon. Chuck, U.S. Senator from Nebraska, prepared statement sub- mitted for the record ............................................................................................ 12 Larson, Hon. Alan P., Under Secretary of State for Economic, Business and Agricultural Affairs, U.S. Department of State, Washington, DC ................... 13 Prepared statement .......................................................................................... 15 Lugar, Hon. Richard G., U.S. Senator from Indiana, opening statement ........... 1 ‘‘A New Partnership for the Greater Middle East: Combating Terrorism, Building Peace,’’ delivered at The Brookings Institution, Washington, DC, March 29, 2004 ...................................................................................... 4 Proposal for A Greater Middle East 21st Century Trust .............................. 8 Richards, Dr. Alan R., Professor of Economics and Environmental Studies, University of California at Santa Cruz, Santa Cruz, CA ................................. 55 Prepared statement .......................................................................................... 58 (III) VerDate 11-MAY-2000 12:29 Nov 10, 2004 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 96429.TXT SFORELA1 PsN: SFORELA1 VerDate 11-MAY-2000 12:29 Nov 10, 2004 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 96429.TXT SFORELA1 PsN: SFORELA1 THE GREATER MIDDLE EAST INITIATIVE: SEA ISLAND AND BEYOND WEDNESDAY, JUNE 2, 2004 U.S. SENATE, COMMITTEE ON FOREIGN RELATIONS, Washington, DC. The committee met at 9:39 a.m., in room SH–216, Hart Senate Office Building, Hon. Richard G. Lugar (chairman of the com- mittee), presiding. Present: Senators Lugar, Hagel, Chafee, Brownback, Alexander, Biden, and Bill Nelson. OPENING STATEMENT OF SENATOR RICHARD G. LUGAR, CHAIRMAN The CHAIRMAN. This hearing of the Senate Foreign Relations Committee is called to order. As the United States and our allies continue to seek stability and security in Iraq, we must consider how to address broader political and economic issues in the Greater Middle East. Ultimately, a new social and political environment must develop in the region, which is the source of most terrorist threats confronting the international community. Too often, the United States policy in the Greater Mid- dle East is focused exclusively on the immediate crisis. Con- structing a secure future in an age of terrorism requires that we not limit our thinking to the problems of the moment. We must also work with like-minded nations to develop solutions to under- lying social, political, and economic conditions that breed hatred and conflict. Although home to some of the world’s oldest civilizations, with deep reserves of talent and wealth, the Greater Middle East region has become a land apart from the modern world. That is the con- clusion of Arab intellectuals and scholars themselves in two reports for the United Nations on Arab human development. They said the region suffers from widespread illiteracy, economic stagnation, and isolation from other cultures. These experts concluded that this backwardness results from three important deficits: the lack of freedom, the lack of women’s empowerment, and the lack of knowl- edge, particularly with regard to science, technology, computers, and the Internet. These deficits have created throughout the Greater Middle East an atmosphere of hopelessness and frustration that has helped fuel extremist organizations, terrorist ideologies, and reflexive resent- ment of the West. To help foster a new environment of hope, opportunity, and progress in the region, I have proposed the creation of a Greater (1) VerDate 11-MAY-2000 12:29 Nov 10, 2004 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 96429.TXT SFORELA1 PsN: SFORELA1 2 Middle East 21st Century Trust. The Bush administration has pro- posed its own Greater Middle East initiative to achieve many of the same ends. These ideas will be on the agenda of the G–8 summit in Sea Island, Georgia. I hope this hearing can provoke debate and provide valuable input for the G–8 leaders. I believe that multilateral participation is central to the success of any initiative to encourage economic and political reform in the Greater Middle East. The United States can and should continue to provide unilateral aid to the region. The Bush administration and Congress launched the Middle East Partnership Initiative in 2002 to support economic, political, and educational reform, as well as women’s empowerment in the region. The other G–8 countries have similar programs. But if we want to leverage resources for greater effect and emphasize the broader international responsi- bility for improving opportunity and hope in the region, we must have a mechanism that includes other nations. Organizing a Great- er Middle East Trust around the G–8 would maximize the partici- pation and provide the imprimatur of the international community. The Greater Middle East 21st Century Trust that I have pro- posed would be modeled on the principles of the Global AIDS Fund, the G–8 Africa Action Plan, and the U.S. Millennium Challenge Ac- count. The concept would unite the G–8 countries with donor coun- tries in the Greater Middle East. The donors would pool resources to deliver grants and would work together with recipients to define the funding criteria. It is important the Trust’s contributors include wealthy countries from the Middle East, such as Saudi Arabia, that are willing to in- vest in the Trust’s success. This would increase resources and guar- antee Middle Eastern voices on the donor side of the equation. In addition, it would give donors in Saudi Arabia and other countries a secure vehicle for charitable donations to its neighbors. Saudi Arabia has completely banned its citizens from donating to char- ities in foreign countries because it feared that funds were being diverted to terrorist causes. To be sensitive to cultural concerns, the Trust also could be structured to respect Islamic financial prin- ciples. What I have proposed is different from the Bush administration’s proposal in several key respects. Rather than a set of programs to be created and funded, the Greater Middle East 21st Century Trust would set broad goals and criteria. Specific programs would be de- veloped and offered by the recipient countries themselves, and eval- uated by the Trust based on the standards it sets. In this way, we can confer ownership of the reform process on the recipients. The Trust would go beyond the primary development paradigm of growth, infrastructure, and health. It would help realize what Arab Human Development Reports called ‘‘a restructuring of the region from within.’’ Ultimately, the Trust would seek to promote changes in many of the structures that the Development Reports identify as roadblocks to modernization in the Greater Middle East. The Trust concept could be a vehicle for achieving economic re- form goals in the Greater Middle East that have resisted progress for years. These include reforming economic systems, reducing state control of economies, diversifying industries, reforming labor markets to promote productivity and avenues for advancement, re- VerDate 11-MAY-2000 12:29 Nov 10, 2004 Jkt 000000 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 96429.TXT SFORELA1 PsN: SFORELA1 3 vamping weak education systems, creating new roles for women, and improving