Carnegie Endowment for International Peace
The return of former President Musharraf to Pakistan has the potential to complicate the already fraught elections coming in May 2013.
Without proactive U.S. engagement in the peace process, the chances of a two-state solution are increasingly slim.
Given continuing sectarian strife and a rise in terrorist cells in Iraq, the U.S. invasion of the country could be a considered a military victory but is increasingly seen as the wrong political decision.
China may need a bigger military budget to match its growing global presence.
The United States will probably continue to limit its presence in global affairs because Barack Obama is committed to a more moderate U.S. role in foreign affairs.
Proliferation threats from North Korea remain acute given Pyongyang's alliance with rogue states.
North Korean nuclear issues, territorial disputes, and the relationship with the United States are the key issues affecting China’s foreign policy in 2013.
The situation in the South Caucasus continues to be perilous as leaders of both Armenia and Azerbaijan find themselves increasingly boxed in by domestic political constraints.
A 60-year dispute between Russia and Japan could be resolved if Russia gives up the South Kuril Islands. Also, both countries should de-militarize the area as they work toward a solution.
Recent hacking attempts against the United States likely couldn't have penetrated the Great Firewall in such volume without some support by the Chinese government.