Global Economies

Joint Peace Endeavours to Benefit all Stakeholders

In an interview with the BBC in Urdu, EWI Senior Fellow Najam Abbas discusses the instability of the Afghan-Pakistani border. Whenever international troops exit from Afghanistan, he says, the need for peace and stability will never be more important. 
 
 
Abbas believes that a stable relationship between India and Pakistan – one that up till now has been governed by fear and insecurity – is the key to stabilizing Pakistan’s western border and managing the crisis in Afghanistan. If peaceful, the relationship between India and Pakistan has the ability to greatly bolster regional security.

 

 

In order to reduce threat levels, Abbas believes that India should announce a plan to implement confidence building measures along its eastern border with Pakistan. The possible success of such measures might then encourage Pakistan to improve security along its western border with Afghanistan. 
 
Since India’s economy is one of the fastest growing in the world, that country needs to make a genuine investment in regional stability. Eventually, Pakistan will be able to open the doors to regional trade with Afghanistan and Central Asia, as well as help India meet its growing energy needs with exports from Iran and Turkmenistan, but this change must start with India.  
 

To achieve peace in this region, Abbas maintains, Afghanistan’s neighbors must transform themselves  from belligerent enemies to benevolent partners. The result, he concludes, would be a win-win situation for everyone.

 
Source

The WTO and the Reset

It took Barack Obama several months and some tough lobbying to finally win congressional approval for the New START treaty last December, which was seen as the key to the administration’s reset with Russia. Another fight could already be brewing over Obama’s support for Russia’s World Trade Organization (WTO) membership, which is the next big goal of the administration’s Russia policy. Citing Russian human rights abuses and lack of democratic development, congressional critics want to keep Russia subject to the Jackson-Vanik amendment—a Cold War relic that, if left in place, would effectively nullify both Russian and U.S. gains from Russian WTO membership. But, somewhat surprisingly, the administration could develop a win-win outcome by taking a page from its dealings with China, another country whose human rights practices stir congressional unease.

The Jackson-Vanik amendment to the 1974 Trade Act denies permanent normal trade relations (PNTR) to non-market economies that restrict emigration. The amendment was passed unanimously by both houses of Congress to pressure the Soviet Union to allow Soviet Jews to emigrate. In 1994, the Clinton administration found Russia to be in full compliance with the amendment’s freedom-of-emigration requirements. And in 2002, the United States officially began describing Russia as a market economy. Presidents Clinton, Bush, and now Obama all declared their intention to work with Congress to repeal the legislation as it applies to Russia, but no action has been taken. The reason: Congress still sees Jackson-Vanik as a lever to punish Russia for its human rights record even when the executive branch is prioritizing the security aspects of the bilateral relationship.

Jackson-Vanik’s ongoing application has been a major symbolic irritant in the relationship, even though the United States has granted Russia a waiver every year since 1992. But once Russia joins the WTO, which could happen next year, Jackson-Vanik will go from being a symbol of mistrust to inflicting actual harm both to Russia and the U.S.-Russia relationship.

Jackson-Vanik is inconsistent with WTO requirements on unconditional application of most-favored nation status. If Russia enters the WTO and is still subject to Jackson-Vanik, the United States will have to invoke the non-application principle, by which a member can opt out of its obligations to a newly acceded member. The United States has invoked non-application before—and is the only WTO member to have done so. Non-application, however, is reciprocal. U.S. businesses would face market barriers in Russia that other companies would not be subject to. Congressional refusal to pass legislation to permanently graduate Russia from Jackson-Vanik would then hurt the U.S. economy.

With U.S. support and some of the hardest negotiations behind it, Russia is, according to some observers, 95 percent of the way to WTO membership, after first applying nearly 18 years ago. By comparison, China’s accession process took 15 years; the average is five to seven years. And although there are still economic and political barriers to Russian accession—Georgia has a significant role as a possible spoiler of Russian WTO ambitions—the United States is actively working to support Russia’s bid.  As Vice President Joe Biden puts it, membership would produce “stronger ties of trade and commerce that match the security cooperation we have achieved.”

There are clear benefits that would accrue to Russia from joining the WTO—including an expected 3 percent increase in GDP. There are also significant benefits that would accrue to U.S. companies that do business or want to do business in Russia, including greater predictability, transparency, and access to mechanisms for dispute resolution.  All of which would translate into greater access to the world’s tenth largest economy—and the largest economy currently outside of the WTO. The President’s Export Council estimates that U.S. exports to Russia, totaling nearly $6 billion in 2010, could double or triple once Russia joins the WTO. But if the United States has to invoke the non-application principle, this could make U.S. products more expensive and U.S. companies less competitive in the Russian market. This is not the first time that Congress has grappled with how to support WTO membership for a country that many members feel does not respect human rights and the rule of law. China was graduated from Jackson-Vanik shortly after it joined the WTO in December 2001, despite such concerns. But the legislation granting China PNTR also created the Congressional Executive Commission on China, which is tasked with monitoring human rights and the rule of law. This provides a workable model for how to decouple the economic and political issues, without downplaying the legitimate political considerations stressed by members of Congress from both parties. There is still a forum for addressing those highly sensitive issues, but the economic relationship isn’t held hostage to them.

Even if the administration decides to propose this kind of solution for Russia, however, it may not be willing to push hard for it.  While it claims it is prioritizing the economic aspect of the reset, the administration has relegated Russia to at least fourth place in its queue of priorities. It is currently pursuing congressional approval of free trade agreements with South Korea, Colombia, and Panama, and the Republican leadership in the House has indicated it will not consider Russia’s Jackson-Vanik status before these FTAs are considered. While these three countries are larger trading partners for the U.S. than Russia, there is also a compelling strategic interest in promoting the U.S.-Russia relationship that goes beyond pure economics.

The administration should start laying the groundwork now for the repeal of Jackson-Vanik rather than waiting for Congress to consider the FTAs for South Korea, Colombia, and Panama. And the administration should offer a way forward for Jackson-Vanik graduation for Russia that separates the economic issues at hand from long-standing congressional concerns about Russia’s dubious record on human rights and the rule of law. The legislation approving China’s PNTR status provides a ready example of how to move forward. WTO accession would be good for Russia, it would be good for the United States, and it would be especially good for American business.

Miller is a senior associate at the EastWest Institute.

EWI News from China

EWI President John Mroz and China Program Associate Piin-Fen Kok recently met with China’s Foreign Minister, Yang Jiechi, to discuss EWI’s China-related work for 2011: the U.S.-China High-Level Political Party Leaders Dialogue; the High-Level Security Dialoguecybersecurity; and work on other issues in U.S.-China relations, including U.S. arms sales to Taiwan.

On the topic of the U.S.-China High-Level Political Party Leaders Dialogue, Mroz and Kok briefed Minister Yang on the second round of talks, which took place in Washington, D.C, in December 2010. This dialogue was the first ever visit to the United States by a delegation of Communist Party of China (CPC) officials, and they exchanged candid views with a distinguished U.S. delegation led by former U.S. Secretary of State Madeleine K. Albright (D) and former U.S. Ambassador to the United Nations Richard S. Williamson (R).

Minister Yang conveyed his appreciation for EWI’s meaningful contributions to improving U.S.-China relations and noted that many areas would benefit from cooperation between the United States and China.

While in Beijing, Mroz and Kok also met with the U.S. Ambassador to China, Jon Huntsman, and a number of other Chinese government officials, including those at the International Department of the Central Committee of the CPC (IDCPC), the National Defense University of the People’s Liberation Army (NDU-PLA), and the State Council Information Office (SCIO).

Click here to see this link online

Challenging Obama on China

There is a fundamental divide among the U.S. foreign policy establishment as to whether the rise of China as a global power presents a threat to U.S. interests and policy. And, unlike so much in Washington right now, this divide is not partisan and crosses all facets of China policy. It reflects the deep mistrust still evident in Congress and elsewhere of Chinese intentions, which could imperil the administration’s efforts at its “reset” with China. The looming confirmation process for Commerce Secretary Gary Locke to replace Jon Huntsman as U.S. ambassador to China provides congressional critics a prominent platform from which to criticize the administration’s China policies on a gamut of issues—from the economic relationship to nonproliferation to human rights to security. What this means is that for Obama, the trust-building process may need to begin on Capitol Hill.

The most persistent and most vocal congressional criticism of the administration focuses on economic policy, especially the issue of China’s currency policy. There is widespread concern in the United States that the Renminbi (RMB) is significantly undervalued, which has an adverse effect on U.S. trade and economic interests. In the two-plus years since Treasury secretary Tim Geithner’s confirmation hearing and his declaration (later walked back by the White House) that China was manipulating its currency, congressional critics have found the administration’s efforts sorely lacking. The administration has sought to address those concerns within the context of the larger bilateral relationship, using diplomacy to try to prod the Chinese government into appreciating the RMB. But congressional dissatisfaction has been evident in the bipartisan letters that have been sent to the administration and in aggressive proposals for legislation to pressure the Chinese and the Obama administration on currency appreciation and remedies.

Locke is certain to face some tough questions on the currency issue and other facets of economic policy closely related to his tenure as Commerce secretary. In particular, he will be pressed on perennial U.S. concerns on intellectual property rights and the U.S. trade deficit with China, which rose by more than 20 percent in 2010 over the previous year. China’s recent taking of the top manufacturing spot from the United States and the persistence of the global economic crisis ensure that economic issues will continue to be high on the agenda.

Another highly-contentious issue is China’s adherence to the Iran sanctions regime. A recent letter to President Obama from Senators Joseph Lieberman (I-CT) and Mark Kirk (R-IL), sent on the eve of the Hu-Obama summit, called China’s record on sanctions enforcement and nonproliferation “inadequate and disappointing.” Kirk has indicated that he plans to use the confirmation process to force the issue of the administration’s willingness to initiate sanctions against Chinese companies that are doing business with Iran in violation of Iran sanctions laws. And on March 10, Hillary Clinton received a letter from 10 Senators from both parties (led by Senators John Kyl (R-AZ) and Robert Menendez (D-NJ)) stating: “It appears that Chinese firms in the energy and banking sector have conducted significant activity in violation of U.S. law. We cannot afford to create the impression that China will be given free rein to conduct economic activity in Iran when more responsible nations have chosen to follow the course of action we have asked of them.”

Many senators are hardly satisfied by the administration’s claim that China has begun to improve its export control regime, especially given the latest news from Iran. A recent International Atomic Energy Agency report cited concern over Iran’s lack of engagement with the agency and fears of “possible military dimensions” of Iran’s nuclear program. All of which means that the issue will come to the fore during Locke’s hearing, raising more difficulties for the administration’s efforts to improve U.S.-China relations.

The division in the administration’s China policy is not just between the executive and legislative branches. The bilateral security relationship has also highlighted differences between some in the defense and intelligence communities on what China’s military modernization and burgeoning force-projection capabilities means for the United States. On March 10th, Director of National Intelligence James Clapper labeled both China and Russia “mortal threats” to the United States.   Although he was talking about capabilities rather than intent, Clapper’s remarks undermine the administration’s efforts to frame China as a strategic partner rather than a competitor and provide additional fodder to the administration’s critics on China. Other congressionally-mandated reports have also undermined the administration’s China message: both the Quadrennial Defense Review and the annual review of Chinese military power highlighted concerns that China’s economic and military modernization will ultimately be harmful to U.S. strategic interests. Clapper’s comments will only add to that perception.

What the consistent bipartisan congressional criticism of the administration’s China policy has shown in the past, and what the Locke confirmation process will demonstrate just as vividly, is that Obama’s efforts to improve the U.S.-China bilateral relationship will continue to be challenged at every turn. That is, unless the administration finds a way to involve Congress in the strategic trust-building process it is seeking to promote with China.

Iran defeats Russia, Europe overtakes USA

International competition has many levels. In Brussels this past week, Prime Minister Putin felt the need to disparage the leadership of Iran as a negative outcome of European foreign policy. After railing against alleged “European” support of Ayatollah Khomeini before 1979, Putin took on Palestine.

"Not long ago at all, our partners came out actively for honest democratic elections in the Palestinian territories," Putin said. "Wonderful! Well done, lads! And it turns out Hamas wins, the same people you are calling a terrorist organization and have started to fight against." (Moscow Times).

At one level of politics, Putin’s analysis of Iran and Palestine is rational. On another level, there is a deep neuralgia in Russia about the Muslim world. Putin said that Russia was concerned about the consequences of the recent uprisings in Arab countries for Russian security. He also warned (correctly) that the events could have negative consequences for Europe. The underlying anxiety here is not unique to Mr Putin. He is showing a discomfort here many Western leaders share and that will only grow. 

The anxiety comes about because of shifting power relationships in many fields of national endeavor. On a much lower level, this was symbolized in a tantalizing way in the shock defeat of Russia by Iran (1-0) in a football friendly in Dubai on 9 February. Perhaps the patriotic, sports-loving Mr Putin was smarting from the defeat. The Dubai game, a warm-up for the Euro 2012 qualifiers, was only held in Dubai so that the Russian football federation could get the money from the TV rights involved in playing a team from the region.

More seriously though, the Putin visit to Brussels and the concerns he expressed reflect fundamental shifts in world power at a time when, with the uprisings, revolts and wars in the Muslim world, there is an historic shift under way in world politics. Russia’s relations with the European Union (EU) now look very different from three years ago. Russia has overtaken China as an economic partner of the EU and Putin is determined to make Russia and the EU partners in international security affairs as well.

At exactly the time when the world press was trumpeting the statistic that the Chinese economy had overtaken the Japanese economy, and would eventually surpass the American economy, a different data set from the IMF revealed another shift. The US economy was correctly reassigned to number two spot behind the European Union in GDP on a Purchasing Power Parity basis. And Indian GDP is within a whisker of Japan’s. The bargaining power relationships within the G20 and IMF are shifting and on the global stage have shifted in Europe’s favor.

So, the EU is not a country, some might say. Yes, but it is an “economy”, a single economy, in a world where, as a good Marxists might tell you, economics is in command. The Articles of Agreement of the IMF (Section XIII) dictate that “The principal office of the Fund shall be located in the territory of the member having the largest quota”. Well the European Union now has almost double the quota of the United States, around 30 per cent of the total for the EU compared with just over 17 per cent for the United States, and China’s un-naturally low 3.72 per cent. So the IMF headquarters really should move to Europe.

Journalistic flourishes aside, what does this growing list of re-alignments of politics and power mean? At the very least, in economic and social terms, it means that the initiative for change, the impulse for reform and the power for transformation are slipping even faster from American hands. Russia knows it and is looking for European partnership, especially to secure the southern flanks not just of Russia but of Europe as a whole.

Click here to read this piece in New Europe

The Davos Whirl

The World Economic Forum’s annual meeting in Davos, was upstaged by events in Egypt and Tunisia, EWI board member Ikram Sehgal writes in his weekly article in The News, but its central themes were quite apt: “Shared Norms for the New Reality.”

“The erosion of common values is growing in a world that is increasingly becoming more complex and interconnected as well as undermining public trust in leadership, future economic growth and political stability,” Sehgal writes.

In heated discussions about terrorism, Indian and Pakistani representatives were, as often is the case, very much at odds with each other—and Sehgal was disappointed with the Indian contributions. But he admires the way the Indian private sector is leveraging its Davos contacts, suggesting Pakistani businessmen should do the same. He also reflects on the possible implications of the Egyptian military’s response to the protests in that country for the Pakistani military.

Many of the world’s leaders including President Sarkozy, Chancellor Merkel, President Medvedev and former U.S. President Bill Clinton addressed  panels at Davos.  Sehgal concludess: “Davos provides a unique platform for leaders of governments, civil society, industry and the media as well as a wide spectrum of decision-makers to trade ideas on how to solve common pressing problems.” 

Click here to read Sehgal’s article online

2011 Megatrends: What's New, What's Not

It’s that time of year again when the commentators like to identify the big themes. Consider this sampling:

A Polish essayist castigates Europeans in general for their “euro-centrism” that blinds them to the continent’s decline while new centers of economic and political power emerge elsewhere. He morbidly asks: “Will European civilization outlive Europe, or will it collapse with her?”

A French author, true to form, discusses the even bigger challenge all countries are facing: “The information revolution is a political revolution and an intellectual revolution. It calls into question both power and culture. It challenges the distinction between governors and governed.”

Americans have their own worries about their country’s apparent decline. “Increasingly, many of today’s problems are associated with the historic shift from an economic and financial regime dominated by the United States and the dollar to an unstable and multipolar system,” a New York Times article proclaims.

And then, as always, there’s Russia. One of that country’s few genuinely independent voices warns: “In political terms, his [the Kremlin leader’s] recent strategy can be described as a campaign to achieve democratic change through nondemocratic means. The way I see it, it is an extremely dangerous strategy, threatening to bring forth unworkable antidemocratic structures we’ll have to contend with for a long time.”

You hear such talk a lot these days, of course. But these opinions are hardly new—far from it. The first quotation is from the lead essay by Juliusz Mieroszewski in the March 1950 issue of Kultura, the Paris-based Polish émigré monthly. The French author who discussed the information revolution was Jean-François Revel, writing in his book “Without Marx or Jesus: The New American Revolution Has Begun,” published in 1970. The quotation about the increasingly multipolar world is from an article by Ann Crittenden in The New York Times dated February 4, 1979. And the independent Russian voice is that of dissident Andrei Sakharov, speaking at the Woodrow Wilson Center in Washington on November 14, 1988; the Kremlin leader he was referring to was Mikhail Gorbachev.

My father zealously monitored the Zeitgeist on such issues all his life. Since he is now ailing and unable to do so, I recently started sorting through his remarkable collection of clippings, and found myself intrigued by the eerie similarities to so many of today’s discussions about supposedly new trends and shifting power relationships.  While my father collected articles on everything from the wars in Korea and Vietnam to the John F. Kennedy assassination and John Paul II’s first visit to the United States, he was especially attracted to the writings of anyone who tried to make sense of the big ideas that flowed from the daily headlines.

As I sifted through his collection, I was struck by the degree to which certain preoccupations have been with us for decades—not, as we sometimes tend to believe, just in recent years. We aren’t so much discovering but constantly rediscovering the major global trends of the postwar era: the shift of power from West to East; Europe’s struggle to define its role and identity; the chronic debates about America’s supposed decline; and Russia’s seeming inability to transition to a system that assures its citizens fundamental rights, since even the self-proclaimed reformers too often have failed to embrace democratic principles.

All those are legitimate issues and concerns. And, yes, some trends—most notably, the shift to a genuinely multipolar world as demonstrated by the emergence of China and India as major players—have accelerated significantly in the past decade. The information revolution that Revel wrote about even before the dawn of the digital era, basing his observations on the growing power of television, hasn’t just accelerated: it’s now moving at warp speed. But none of this negates the fact that we are debating many of the same questions that policy analysts grappled with on a daily basis during the last half of the twentieth century.

It’s worth keeping this in mind since it helps put our current preoccupations in perspective. Europeans agonize whether they are losing out to the rising powers in the East, whether the euro-zone can survive its current spate of economic crises, and whether they can handle the cultural tensions produced by their growing immigrant populations. But if they took a step back, they’d see that the current era—when EU and NATO membership binds most of the countries on the continent together as never before—looks pretty good as compared to the 1990s when the Balkans were exploding in violence, or, earlier, when the continent was divided into two heavily armed, hostile camps.

According to a recent Pew Charitable Trusts poll, 50 per cent of Americans viewed the first decade of this century as generally negative, and only 27 per cent saw it as generally positive. In assessing earlier decades, including the 1960s which was dominated by the Vietnam War, protests and assassinations, Americans were far more upbeat. To be sure, terrorism accounts for a large part of that somber mood, but Americans need to remember this was a phenomenon that was widespread earlier, although it hadn’t reached American soil in a way that registered. And anti-Americanism is hardly new either. One of my keepsakes from my father is a mounted chunk of concrete that was thrown through his office window when protesters attacked the U.S. Embassy in Cairo in 1961, where he was serving as press attaché.

Revel’s underlying thesis about the United States—that it was in the best position to embrace and creatively exploit the technological leaps of the new information age—still applies today. That’s why he was convinced that much of the talk about America’s decline, along with knee-jerk anti-Americanism in his country and others, was off the mark. Its combination of entrepreneurial spirit and comfort level with broad freedoms would allow it to maintain its leading role in far more than just military might.

Since then, the United States has added cause for optimism because of its population trends. Writing in the current issue of Foreign Affairs, Nicholas Eberstadt points out that, barring a severe backlash against immigration, the country “will avoid the demographic stagnation and decline that faces most other OECD countries.” In fact, the U.S. population is projected to grow from 310 million to 374 million in the next twenty years. As he points out, this will keep the country relatively young, with much better economic prospects than Western Europe or Japan.

True, the world today is genuinely more multipolar than before, and America’s leaders have to take that into account. The digital age cries out for more international coordination on cybersecurity, in particular, since everything from trade, finance and critical infrastructure is vulnerable without new protective mechanisms that span borders as effectively as web connections do. And given their push for nuclear weapons, countries like North Korea and Iran can no longer be seen merely as regional threats—or only as America’s problem. That certainly applies to disparate terrorist movements as well.

But there’s hope in those kinds of realizations. That may account for the recent indications that NATO and Russia could cooperate on ballistic missile defense, and that China is beginning—ever so tentatively—to reconsider how it should handle its North Korean neighbor. And that on cybersecurity there’s a growing realization that national policies will fail without concerted international cooperation.

Of course that isn’t a new idea either, as my father would be quick to point out—and he has the articles to prove it. The question is whether a more sensible approach is developing based on the premise that joint actions to meet joint challenges aren’t just an idealistic vision anymore but a necessity for survival. Economic, political and, yes, military competition will continue. But maybe—just maybe—the next half century of articles will be less concerned with who is rising or falling and more with how we pulled together when it really mattered.

Andrew Nagorski is vice president and director of public policy at the EastWest Institute. This article was written for Newsweek Polska, the Polish edition of Newsweek (www.newsweek.pl).

Undersea Cables: The Achilles Heel of our Economies

In December 2008 within milliseconds, Egypt lost 70 percent of its connection to the outside Internet. In far away India, 50 to 60 percent of online connectivity similarly was lost. In Pakistan, 12 million people were knocked offline suddenly, and in Saudi Arabia, 4.7 million were unable to connect to the Internet. The economic costs of this 24-hour outage: approximately 64 million dollars.

The recent revelations by WikiLeaks of U.S. national security interests in critical infrastructure vulnerabilities mention the often neglected underpinning of the current connectivity revolution sweeping the planet--undersea cables. In December 2008, four undersea cables were cut simultaneously, affecting Internet users all over the world. While cable cuts happen from time to time nothing, the scope of the cuts illustrate the exposure of our economies to disruption once we lose connectivity.

Hardly any people know that our global digital connectivity rests upon a relatively few fiber optic cables lying at the bottom of the Atlantic, Pacific, and Indian Oceans. They wrongly believe that their international communications are carried via satellite links. The truth is that 99 percent of transcontinental Internet traffic travels through these connecting cables; these are the lifelines of our economies. For proof, simply take a quick look at the financial services sector. In 2004 alone, nine million messages and approximately $7.4 trillion a day were traded via undersea cables worldwide. The Society for Worldwide Interbank Financial Telecommunication (SWIFT), a provider of financial messaging, sends about 15 million messages a day over cables. 1 million of these are financial transactions, amounting to over $4.7 trillion dollars a day commuting via the same undersea cables. The finance hub Hong Kong doubles its dependency, i.e. the volume of messages going through these cables, every 18 months.

Most of the cable cuts occur because of ship anchors, natural disasters such as earthquakes or fishing nets. While the technical reliability of these cables is very high, international politics have created three particular problem zones in the world -- three cable chokepoints where undersea cables converge and where if cut, outages could have severe consequences. The first is in the Luzon Strait, the second in the Suez Canal-Red Sea-Mandab Strait passage, and the third is in the Strait of Malacca.

Let's take a closer look at the Luzon Strait. The reason why cables go through the Luzon Strait rather than taking an alternative route through the Taiwan Strait to avoid this single point of failure is because of the ongoing political tensions between Taiwan and China. The result is that Hong Kong, a major financial hub, is one of the most vulnerable spots to outages in the world. The Hengchun earthquake in 2006 severed the Luzon Strait cables, which, according to Chinese newspapers, "catastrophically affected financial transactions, particularly in the foreign exchange market." Simultaneous cuts in the Luzon Strait or the Suez Canal-Red Sea-Mandab Strait chokepoints -- again largely the result of the political unwillingness of the countries on the Arabian Peninsula to cooperate with regard to overland cables through their territories -- could cut Hong Kong off from New York or London, as terrestrial routes would have insufficient capacity to carry the undersea cable load. Payments suddenly could not be made, orders not processed, and bond trading halting on the stock exchange. Given our volatile economic climate, an incident where a number of these cables are cut could have devastating consequences.

When cables are cut at one chokepoint, the loss of connectivity might last from a few days to a few weeks depending on how well the cable system owner, the operator of the repair vessel, and the national government involved coordinate their efforts. A few countries are notorious for delaying repair permits if the cuts appear in their territorial waters.

The good news is that there is the chance for "undersea cable diplomacy" to bring countries together. The IEEE Reliability of Global Undersea Communications Cable Infrastructure (ROGUCCI) Report, released earlier this year, provides a thorough analysis of these and other concerns, and, most importantly, provides bold, actionable recommendations for addressing each of these problems in order to strengthen the resilience of the global undersea communications cable Infrastructure (GUCCI).

The international, non-profit "think and do tank" EastWest Institute has been recruited to champion international policy aspects of the recommendations and is making encouraging progress. There is hope that China and Taiwan could reduce tensions and build trust by allowing the installation of undersea cables in the Strait of Taiwan. It would be a win-win situation for both sides and the world since it decreases the vulnerability of the global economy to communication outages. The same is true for other chokepoints. Undersea cables might serve as the initial building block in inter-country collaboration in some of the most contested regions of the world. This was a notion already recognized by Queen Victoria in her first cable across the Atlantic in 1858 when she expressed hope that undersea cables would prove "an additional link between the nations whose friendship is founded on their common interest and reciprocal esteem."

Franz-Stefan Gady is a foreign policy analyst at the EastWest Institute. 

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