Carnegie Endowment for International Peace
With 26 delegations and a daunting list of economic issues to address, next week’s G20 Summit is unlikely to accomplish as much as the world is hoping.
In light of the Obama administration's forecast that the government will borrow $3.7 trillion in the next two years, there are growing concerns over the willingness and ability of global investors to finance American debt.
With Chinese economic growth rates decelerating beyond even the most pessimistic predictions and a leadership succession in three or four years, the CCP is more concerned about quelling internal unrest than engaging with the United States on pressing global issues.
In the wake of Kyrgyzstan’s decision to close its American airbase the U.S. must find a Central Asian location for its logistical operations outside of Afghanistan to ensure they remain uninterrupted in case the war deteriorates further.
Despite Treasury Tim Geitner's recent comments that China is manipulating its currency, it is difficult to assess China's monetary policies because its economy is in such flux.
Though Secretary of State-designate Hillary Clinton laid out some basic policy positions in her confirmation hearings – the Obama administration will engage directly with Iran and will close Guantanamo, for example – the details of how the administration will pursue these objectives remain unclear.
President-elect Obama will inherit a number of foreign policy challenges from the Bush administration when he takes office. Key areas where the new administration must focus to reverse the Bush administration's failings include Afghanistan, diplomacy, unilateralism, arms control, and climate change.
Most of the items on the foreign policy agenda awaiting President Obama require global cooperation, including climate change, nonproliferation, and the war in Afghanistan. History suggests, however, that nations are less cooperative during times of upheaval, and the economic crisis – itself a problem requiring multinational action – may hinder the new administration’s ability to find solutions.
One of President-elect Obama’s main foreign policy challenges will be figuring out the proper approach to dealing with Russia. Although ties with Russia have been damaged because of the August Russia-Georgia crisis, Russia, a re-emerged power, is a key player in issues such as Iranian nuclear proliferation and the Middle East peace process.
As lawmakers appears to be finalizing a bailout package for the automobile industry, experts disagree over the prudence of this bailout. Many believe that the government should stick to what it has historically done best—regulating and adjusting incentives to guide industry—rather than attempting to invest in and manage the auto industry.