Oil
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Many resource dependent states have to varying degrees, failed to provide for the welfare of their own populations, could threaten global energy markets, and could pose security risks for the United States and other countries.  Many are in Africa, but also Central Asia (Turkmenistan, Kazakhstan, Azerbaijan), Southeast Asia (Cambodia, Burma, East Timor), and South America (Bolivia, Colombia, Ecuador) Some have only recently become – or are about to become – significant resource exporters.  Many have histories of conflict and poor governance.  The recent boom and decline in commodity prices – the largest price shock since the 1970s – will almost certainly cause them special difficulties.  The growing role of India and China, as commodity importers and investors, makes the policy landscape even more challenging.

We believe there is much the new administration can learn from both academic research, and recent global initiatives, about how to address the challenge of poorly governed states that are dependent on oil, gas, and mineral exports.  Over the last eight years there has been a wealth of new research on the special problems that resource dependence can cause in low-income countries – including violent conflict, authoritarian rule, economic volatility, and disappointing growth.  The better we understand the causes of these problems, the more we can learn about how to mitigate them.

There has also been a new set of policy initiatives to address these issues: the Kimberley Process, the Extractive Industries Transparency Initiative, the World Bank’s new “EITI plus plus,” Norway’s Oil for Development initiative, and the incipient Resource Charter.  NGOs have played an important role in most of these initiatives; key players include Global Witness, the Publish What You Pay campaign, the Revenue Watch Institute, Oxfam America, and an extensive network of civil society organizations in the resource-rich countries themselves.

Some of these initiatives have been remarkably successful.  The campaign against ‘blood diamonds,’ through the Kimberley Process, has reduced the trade in illicit diamonds to a fraction of its former level, and may have helped curtail conflicts in Angola, Liberia, and Sierra Leone.  Many other initiatives are so new they have not been have not been carefully evaluated.

This workshop is designed to bring together people in the academic and policy worlds to identify lessons from this research, and from these policy initiatives, that can inform US policy towards resource-dependent poorly states in the new administration.

» Workshop memos (password protected)

Philippines Conference Room

Stephen Haber Speaker Stanford
Brian Phipps Speaker State Department
Petter Nore Speaker Norad
Nilmini Gunaratne Rubin Speaker Senate Foreign Relations
Michael Ross Moderator UCLA
Macartan Humphreys Speaker Columbia
Kevin Morrison Speaker Cornell

CISAC
Stanford University
Encina Hall
Stanford, CA 94305-6165

(650) 725-1314
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Senior Fellow at the Freeman Spogli Institute for International Studies
Theodore and Frances Geballe Professor in the School of Humanities and Sciences
Professor of Political Science
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PhD

James Fearon is the Theodore and Frances Geballe Professor in the School of Humanities and Sciences and a professor of political science. He is a Senior Fellow at FSI, affiliated with CISAC and CDDRL. His research interests include civil and interstate war, ethnic conflict, the international spread of democracy and the evaluation of foreign aid projects promoting improved governance. Fearon was elected to the National Academy of Sciences in 2012 and the American Academy of Arts and Sciences in 2002. Some of his current research projects include work on the costs of collective and interpersonal violence, democratization and conflict in Myanmar, nuclear weapons and U.S. foreign policy, and the long-run persistence of armed conflict.

Affiliated faculty at the Center for International Security and Cooperation
Affiliated faculty at the Center on Democracy, Development, and the Rule of Law
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Date Label
James D. Fearon Speaker Stanford
Karin Lissakers Speaker Revenue Watch Institute
Basil Zavoico Speaker International Monetary Fund (former)

N/A

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CDDRL Postdoctoral Fellow 2008-2009
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Desha Girod is a postdoctoral fellow at the Center on Democracy, Development and Rule of Law at Stanford University where she manages the program Evaluating International Influences on Democratic Development.  Her research focuses on the influence of external actors on political and economic development.  In 2009, she will join the faculty of the Department of Government at Georgetown University.
Desha Girod Speaker Stanford
Ian Gary Speaker Oxfam

CDDRL
Stanford University
Encina Hall
Stanford, CA 94305-6055

(650) 723-0676 (650) 724-2996
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Senior Fellow at the Freeman Spogli Institute for International Studies, Emeritus
Graham H. Stuart Professor of International Relations
Senior Fellow at the Hoover Institution, Emeritus
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MA, PhD

Stephen Krasner is the Graham H. Stuart Professor of International Relations. A former director of CDDRL, Krasner is also an FSI senior fellow, and a fellow of the Hoover Institution.

From February 2005 to April 2007 he served as the Director of Policy Planning at the US State Department. While at the State Department, Krasner was a driving force behind foreign assistance reform designed to more effectively target American foreign aid. He was also involved in activities related to the promotion of good governance and democratic institutions around the world.

At CDDRL, Krasner was the coordinator of the Program on Sovereignty. His work has dealt primarily with sovereignty, American foreign policy, and the political determinants of international economic relations. Before coming to Stanford in 1981 he taught at Harvard University and UCLA. At Stanford, he was chair of the political science department from 1984 to 1991, and he served as the editor of International Organization from 1986 to 1992.

He has been a fellow at the Center for Advanced Studies in the Behavioral Sciences (1987-88) and at the Wissenschaftskolleg zu Berlin (2000-2001). In 2002 he served as director for governance and development at the National Security Council. He is a fellow of the American Academy of Arts and Sciences and a member of the Council on Foreign Relations.

His major publications include Defending the National Interest: Raw Materials Investment and American Foreign Policy (1978), Structural Conflict: The Third World Against Global Liberalism (1985), Sovereignty: Organized Hypocrisy (1999), and How to Make Love to a Despot (2020). Publications he has edited include International Regimes (1983), Exploration and Contestation in the Study of World Politics (co-editor, 1999),  Problematic Sovereignty: Contested Rules and Political Possibilities (2001), and Power, the State, and Sovereignty: Essays on International Relations (2009). He received a BA in history from Cornell University, an MA in international affairs from Columbia University and a PhD in political science from Harvard.

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Stephen D. Krasner Moderator Stanford
Corinna Gilfillan Speaker Global Witness
Workshops

There is a potential for large gains in the efficiency of energy use with substantial economic payoffs: in buildings, motor vehicles, traffic control, electricity grids, industry. All of these applications involve the use of information technologies. This workshop will focus on demand and efficiency topics that are becoming increasingly salient.

This invitation-only workshop involves three important actors on the world energy scene: California and Mainland China are large consumers of oil while Taiwan, for its size a substantial consumer of oil and emitter of greenhouse gases, plays a leading role in information technologies. California’s size and commitment to energy efficiency makes its role an important one within the US while China’s ongoing urbanization has major energy implications.

This workshop is the first in a series with the goal of convening leading experts from these three regions to focus on key energy-economic efficiency issues, form a research agenda and collaborate on possible solutions.

Topics for discussion will include:

  • strategic policy choices, especially the challenges posed by cap-and-trading of carbon emissions
  • improving industry use of energy
  • urbanization 2.0: transportation and buildings
  • how IT helps green the planet, including the use of smart meters 
  • how consumers respond to better data
  • new venture capital investments in clean tech
  • energy efficiency start-ups in Silicon Valley

Preliminary agenda:

Day 1: Tuesday, February 17

8:00 am – 8:30 am Check-in and Continental Breakfast

8:30 am – 8:45 am Introduction

Professor Henry Rowen, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

8:45 am – 9:45 am Keynote

“How to Think About Energy Efficiency” 
Dr. James Sweeney, Director, Precourt Institute for Energy Efficiency, Stanford University

10:00 am Strategic Choices

Moderator: Marguerite Hancock, Associate Director, SPRIE 

10:00 am – 10:45 am

Overview: “Trading Carbon in California”   
Dr. Lawrence Goulder, Chair, Economics Department, Stanford University; Member, California Public Utilities Commission

10:45 am – 12:00 pm Panel

“Taiwan’s 2025 Carbon Reduction Goals: Options and Challenges” 
Dr. Robert J. Yang, Senior Advisor, Industrial Technology Research Institute

“A Synthesis of Energy Tax, Carbon Tax and CO2 Emission Trading System in Taiwan” 
Dr. Chi-Yuan Liang, Research Fellow, Institute of Economics, Academia Sinica & Professor, National Central University

“Measurement of Energy Efficiency in Taiwan and Relevance to CO2 Decoupling” 
Dr. Chung-Huang Huang, Dean, College of Transportation and Tourism, Kainan University and Professor, Department of Economics, National Tsing Hua University

1:00 pm Industry Uses

Moderator: Dr. Chin-Tay Shih, Dean of College of Technology Management, National Tsing-Hua University

1:00 pm – 1:45 pm

Overview: “Improving Energy Efficiency in Industry” 
Dr. Eric Masanet, Principal Scientific Engineering Associate, Energy Analysis Dept., Lawrence Berkeley National Laboratory

1:45 pm – 3:00 pm Panel

“Technology R&D and Industry Development of Distributed Energy System in Taiwan”
Dr. Hsin-Sen Chu, Executive Vice President, Industrial Technology Research Institute

“Energy Saving Potential and Trend Analysis in Taiwan” 
Dr. Jyh-Shing Yang, Senior Consultant, IEK/ITRI and Professor, National Central University

“Industrial innovation toward low carbon economy in Hsinchu Science Park”
Dr. Kung Wang, Professor, School of Management, National Central University, Taiwan

3:15 pm – 5:30 pm The Urban Environment: Buildings and Transportation

Moderator: Dr. William Miller, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

Framing Remarks: Dr. Lee Schipper, Precourt Institute for Energy Efficiency, Stanford University

"Integrated management of energy performance of buildings, building portfolios, and cities"
Dr. Martin Fischer, Professor of Civil and Environmental Engineering, and Director, Center for Integrated Facility Engineering, Stanford University

“Challenges, priorities and strategies for energy efficiency in the electric car industry”
Mr. Fred Ni, General Manager, BYD America Corporation

"Urban Motorization in China: Energy Challenges and Solutions"
Ms. Wei-Shiuen Ng, Consultant, previously with World Resources Institute

Title TBA—delivered via video link
Mr. David Nieh, General Manager of Planning and Development, Shui On Land Corporation

 

Commentator: Dr. Fang Rong, Researcher, Center for Industrial Development & Environmental Governance, Tsinghua University

 

Day 2: Wednesday, February 18

8:00 am – 8:30 am Check-in and Continental Breakfast

8:30 am How IT Helps Green the Planet

Moderator: Dr. John Weyant, Deputy Director, Precourt Institute for Energy Efficiency

8:30 am – 9:00 am

“Challenges for Energy Efficiency Innovation and Convergence with Green Environmental Technology”
Dr. Simon C. Tung, General Director, Energy and Environmental Research Laboratories, ITRI

9:00 am – 10:00 am Panel: Two Perspectives on California Initiatives

“Demand Response: Time-differentiating technologies, rates, programs, metrics and customer behavior” 

Dr. Joy Morgenstern, California Public Utilities Commission

“The PG&E Smart Meter Program” 
Ms. Jana Corey, Director of AMI Initiatives, The Pacific Gas and Electric Co.

10:00 am – 10:30 am

Overview: “Behavioral Responses”
Dr. Carrie Armel, Research Associate, Precourt Institute for Energy Efficiency

10:45 a.m. – 12:00 p.m. A Conversation on IT’s Impact on Energy

Moderator: Professor Henry Rowen, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

  • Dr. Banny Banerjee, Associate Professor, Mechanical Engineering, Stanford University
  • Dr. Sam Chiu, Professor, Management Science and Engineering, Stanford University 
  • Dr. Hsin-Sen Chu, Executive Vice President, Industrial Technology Research Institute
  • Dr. Lee Schipper, Precourt Institute for Energy Efficiency, Stanford University

1:00 p.m. – 3:00 p.m. Operating in the Cleantech Space

Moderator: Dr. Craig Lawrence, Accel Partners

  • Mr. Mike Harrigan, VP Business Development, Coulomb Technology (charging hardware and software infrastructure for electric vehicles)
  • Mr. David Leonard, CEO Redwood Systems (LED lighting management systems)
  • Mr. Frank Paniagua, Jr., CEO GreenPlug (intelligent DC charging for consumer electronics devices)

3:15 p.m – 4:30 p.m. A Venture Capital Perspective

Moderator: Dr. William Miller, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

  • Mr. Maurice Gunderson, Senior Partner, CMEA Capital
  • Dr. Marc Porat, CEO, Calstar Cement
  • Dr. Marianne Wu, Mohr Davidow Ventures

    Bechtel Conference Center

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    FSI Senior Fellow Emeritus and Director-Emeritus, Shorenstein APARC
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    Henry S. Rowen was a senior fellow at the Hoover Institution, a professor of public policy and management emeritus at Stanford University's Graduate School of Business, and a senior fellow emeritus of the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). Rowen was an expert on international security, economic development, and high tech industries in the United States and Asia. His most current research focused on the rise of Asia in high technologies.

    In 2004 and 2005, Rowen served on the Presidential Commission on the Intelligence of the United States Regarding Weapons of Mass Destruction. From 2001 to 2004, he served on the Secretary of Defense Policy Advisory Board. Rowen was assistant secretary of defense for international security affairs in the U.S. Department of Defense from 1989 to 1991. He was also chairman of the National Intelligence Council from 1981 to 1983. Rowen served as president of the RAND Corporation from 1967 to 1972, and was assistant director of the U.S. Bureau of the Budget from 1965 to 1966.

    Rowen most recently co-edited Greater China's Quest for Innovation (Shorenstein APARC, 2008). He also co-edited Making IT: The Rise of Asia in High Tech (Stanford University Press, 2006) and The Silicon Valley Edge: A Habitat for Innovation and Entrepreneurship (2000). Rowen's other books include Prospects for Peace in South Asia (edited with Rafiq Dossani) and Behind East Asian Growth: The Political and Social Foundations of Prosperity (1998). Among his articles are "The Short March: China's Road to Democracy," in National Interest (1996); "Inchon in the Desert: My Rejected Plan," in National Interest (1995); and "The Tide underneath the 'Third Wave,'" in Journal of Democracy (1995).

    Born in Boston in 1925, Rowen earned a bachelors degree in industrial management from the Massachusetts Institute of Technology in 1949 and a masters in economics from Oxford University in 1955.

    Faculty Co-director Emeritus, SPRIE
    Senior Fellow, Hoover Institution
    Henry S. Rowen Moderator
    William F. Miller Moderator
    Marguerite Gong Hancock Moderator
    Workshops
    Authors
    Aranzazu Lascurain
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    In a Jan. 12 press conference, Stanford President John Hennessy announced a new interdisciplinary initiative on energy issues and $100 million in new spending for energy research. The initiative will be housed at the Precourt Institute for Energy Efficiency and will draw upon intellectual resources from the entire university, including FSI's Program on Energy and Sustainable Development (PESD), which has been studying the production and consumption of energy and its effects on sustainable development since 2001.

    One of the issues Hennessy singled out - finding an alternative to coal that is environmentally friendly yet cheap enough to sell to China - is at the core of PESD's Global Coal Markets platform, one of the program's four active research platforms. Richard K. Morse and others are tracking power generation in China, India, and the U.S. and finding that coal use is on the rise but the whole picture is complex due to the current world economic crisis. On the issue of climate change, David G. Victor recently proposed a new policy framework, "climate accession deals," for more successfully engaging developing nations in a post-Kyoto world.

    On Feb. 12, PESD will host a public conference titled "Public Forum: How Will Global Warming Affect the World's Fuel Markets?", as part of the program's winter seminar on coal. Peter Hughes, director of Arthur D. Little's Global Energy & Utilities Division, will talk about whether natural gas is the "default climate change option." Hughes' presentation will be followed by a panel discussion with FSI Director Coit D. Blacker, Stu Dalton from EPRI, and PESD Director David Victor.

    PESD research findings are regularly featured in the New York Times, energy blogs, Newsweek, scholarly journals, and in printed book publications. The relevancy of its research findings derives from its interdisciplinary look at energy through law, political science, and economics.

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    Larry Diamond
    Larry Diamond
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    Bush gave democracy promotion a bad name, Larry Diamond writes in Newsweek. The new administration needs to get it right.

    The new U.S. President will face more than one kind of global recession. In addition to the economic downturn, the world is suffering a democratic contraction. In Russia, awash with oil money, Vladimir Putin and his KGB cronies have sharply restricted freedom. In Latin America, authoritarian (and anti-American) populism is on the rise. In Nigeria, the Philippines and once again in Pakistan, democracy is foundering amid massive corruption, weak government and a loss of public faith. In Thailand, the government is paralyzed by mass protests. In Africa, more than a dozen fragile democracies must face the economic storm unprepared. And in the Middle East—the Bush administration's great democratic showcase—the push for freedom lies in ruins.

    In the past decade, the breathtaking democratic wave that swept the world during the final quarter of the 20th century reversed course. Making democracy work proved harder than bringing down authoritarian rule. And receptive peoples everywhere were alienated by the arrogance and unilateralism of President George W. Bush's approach, which associated "democracy promotion" with the use of force and squandered America's soft power. Advancing democracy abroad remains vital to the U.S. national interest. But the next president will have to craft a more modest, realistic and sustainable strategy.

    It's easy today to forget how far freedom has advanced in the past 30 years. When the wave of liberation began in 1974 in Portugal, barely a quarter of the world's states met the minimal test of democracy: a place where the people are able, through universal suffrage, to choose and replace their leaders in regular, free and fair elections. Over the course of the next two decades, dictatorships gave way to freely elected governments first in Southern Europe, then in Latin America, then in East Asia. Finally, an explosion of freedom in the early '90s liberated Eastern Europe and spread democracy from Moscow to Pretoria. Old assumptions—that democracy required Western values, high levels of education and a large middle class—crumbled. Half of sub-Saharan Africa's 48 states became democracies, and of the world's poorest countries, about two in every five are democracies today.

    This great shift coincided with an unprecedented moment of U.S. military, economic and cultural dominance. Not only was America the world's last remaining superpower, but U.S. values—individual freedom, popular sovereignty, limited government and the rule of law—were embraced by progressive leaders around the world. Opinion surveys showed democracy to be the ideal of most people as well.

    In recent years, however, this mighty tide has receded. This democratic recession has coincided with Bush's presidency, and can be traced in no small measure to his administration's imperial overreach. But it actually started in 1999, with the military coup in Pakistan, an upheaval welcomed by a public weary of endemic corruption, economic mismanagement and ethnic and political violence. Pakistan's woes exposed more than the growing frailty of a nuclear-weapon state. They were also the harbinger of a more widespread malaise. Many emerging democracies were experiencing similar crises. In Latin America and the post-communist world, and in parts of Asia and Africa, trust in political parties and parliaments was sinking dramatically, as scandals mounted and elected governments defaulted on their vows to control corruption and improve the welfare of ordinary people.

    Thanks to bad governance and popular disaffection, democracy has lost ground. Since the start of the democratic wave, 24 states have reverted to authoritarian rule. Two thirds of these reversals have occurred in the past nine years—and included some big and important states such as Russia, Venezuela, Bangladesh, Thailand and (if one takes seriously the definition of democracy) Nigeria and the Philippines as well. Pakistan and Thailand have recently returned to rule by elected civilians, and Bangladesh is about to do so, but ongoing crises keep public confidence low. Democracy is also threatened in Bolivia and Ecuador, which confront rising levels of political polarization. And other strategically important democracies once thought to be doing well—Turkey, South Africa and Ukraine—face serious strains.

    This isn't to say there haven't been a few heartening successes in recent years. Indonesia, the world's most populous Muslim country, has become a robust democracy nearly a decade after its turbulent transition from authoritarian rule. Brazil, under the left-leaning Luiz Inácio Lula da Silva, has also strengthened its democratic institutions while maintaining fiscal discipline and a market orientation and reducing poverty. In Africa, Ghana has maintained a quite liberal democracy while generating significant economic growth, and several smaller African countries have moved in this direction.

    But the combination of tough economic times, diminished U.S. power and the renewed energy of major authoritarian states will pose a stiff challenge to some 60 insecure democracies in Asia, Africa, Latin America and the former Soviet bloc. If they don't strengthen their political institutions, reduce corruption and figure out how to govern more effectively, many of these democracies could fail in the coming years.

    Part of the tragedy is that Washington has made things worse, not better. The Bush administration was right that spreading democracy would advance the U.S. national interest—that truly democratic states would be more responsible, peaceful and law-abiding and so become better contributors to international security. But the administration's unilateral and self-righteous approach led it to overestimate U.S. power and rush the dynamics of change, while exposing itself to charges of hypocrisy with its use of torture and the abuse of due process in the war on terror. Instead of advancing freedom and democracy in the Middle East, 2005 and 2006 witnessed a series of embarrassing shocks: Hamas winning in the Palestinian territories and Islamist parties winning in Iraq; Hizbullah surging in Lebanon and the Muslim Brotherhood surging in Egypt. After a brief moment of optimism, the United States backed away and Middle Eastern democrats grew embittered.

    The new American administration will have to fashion a fresh approach—and fast. That will mean setting clear priorities and bringing objectives into alignment with means. The United States does not have the power, resources or moral standing to quickly transform the world's entrenched dictatorships. Besides, isolating and confronting them never seems to work: in Cuba, for example, this policy has been a total failure. This does not mean that the United States should not support democratic change in places like Cuba, Burma, Iran and Syria. But it needs a more subtle and sophisticated approach.

    The best strategy would be to open up such places to the freer flow of people, goods, ideas and information. The next administration should therefore start by immediately lifting the self-defeating embargo on Cuba. It should offer to establish full diplomatic ties with Havana and free flows of trade and investment in exchange for a Cuban commitment to improve human rights. Washington should also work with Tehran to hammer out a comprehensive deal that would lift economic sanctions, renounce the use of force to effect regime change and incorporate Iran into the WTO, in exchange for a verifiable halt to nuclear-weapons development, more responsible behavior on Iraq and terrorism, and improved human-rights protection and monitoring. Critics will charge that talking to such odious governments only legitimizes them. In fact, engaging closed societies is the best way to foster democratic change.

    At the same time, the United States should continue to support diaspora groups that seek peaceful democratic change back home, and should expand international radio broadcasting, through the Voice of America and more specialized efforts, that transmits independent news and information as well as democratic values and ideas.

    In the near term, however, Washington must focus on shoring up existing democracies. Fragile states need assistance to help them adjust to the shocks of the current economic crisis. But they also need deep reforms to strengthen their democratic institutions and improve governance. This will require coordinated help from America and its Western allies to do three things.

    First, they must ramp up technical assistance and training programs to help the machinery of government—parliaments, local authorities, courts, executive agencies and regulatory institutions—work more transparently and deliver what people want: the rule of law, less corruption, fair elections and a government that responds to their economic and social needs. This also means strengthening democratic oversight.

    Second, we know from experience that these kinds of assistance don't work unless the political leaders on the receiving end are willing to let them. So we need to generate strong incentives for rulers to opt for a different logic of governance, one that defines success as delivering development and reducing poverty rather than skimming public resources and buying support or rigging elections. This will mean setting clear conditions that will have to be met before economic and political aid is doled out to governments.

    The third priority is to expand assistance to independent organizations, mass media and think tanks in these fragile states that will increase public demand for better governance and monitor what governments do. This means aiding democratic professional associations, trade unions, chambers of commerce, student groups and organizations devoted to human rights, women's rights, transparency, civic education, election monitoring and countless other democratic activities. Ordinary people must be educated to know their rights and responsibilities as citizens—and be ready to defend them.

    While Western countries have provided this kind of aid for more than two decades, economic assistance handed out at the same time has often undermined democracy efforts by subsidizing corrupt, abusive governments. Aid donors should thus strike a new bargain with recipients, telling them: if you get serious about containing corruption, building a rule of law and improving people's lives, we will get serious about helping you. Those that show a real commitment should get significant new rewards of aid and freer trade. Those unwilling to reform should get little, though the West should continue to fight disease and directly help people in dire need wherever they are.

    Finally, the new president should keep in mind the power of example. Washington can't promote democracy abroad if it erodes it at home. The contradictions between the rhetoric of Bush's "freedom agenda" and the realities of Abu Ghraib, Guantánamo, torture, warrantless surveillance and boundless executive privilege have led even many of the United States' natural allies to dismiss U.S. efforts as hypocritical. Thus the new president must immediately shut down Guantánamo and unequivocally renounce the use of torture; few gestures would restore American credibility more quickly. The United States should also reduce the power of lobbyists, enhance executive and legislative transparency and reform campaign-finance rules—both for its own good and for the message it would send.

    Make no mistake: thanks to the global economic crisis and antidemocratic trends, things may get worse before they get better. But supporting democracy abroad advances U.S. national interests and engages universal human aspirations. A more consistent, realistic and multilateral approach will help to secure at-risk democracies and plant the seeds of freedom in oppressed countries. Patience, persistence and savvy diplomacy will serve the next president far better than moralistic rhetoric that divides the world into good and evil. We've seen where that got us.

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    David G. Victor
    David G. Victor
    Varun Rai
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    Coal is looking like the energy winner in the current economic crisis, David Victor and Varun Rai say in Newsweek.

    "2009 was shaping up to be the year the world got its environmental act together. Now it's looking like the global environment may be one of the biggest losers in the current financial crisis."

    Saving the planet was never going to be easy. Avoiding the most catastrophic effects of climate changes will require cutting carbon emissions by 50 to 80 percent over the next four decades, scientists say. After years of deadlock, 2009 was shaping up to be the year the world got its environmental act together. Now it's looking like the global environment may be one of the biggest losers in the current financial crisis.

    Lower prices for oil-which some analysts predict will hit $25 a barrel-is bad news for investors in green energy. But the big winner is likely to be dirty coal. It already accounts for about 40 percent of the world's emissions of carbon dioxide, the leading cause of global warming. The fuel is plentiful, and its price has fallen about one third since last summer's peak to $80 per ton. In China, the world's largest coal burner, prices have fallen by half and are likely to plummet further. All the top emitters of greenhouse gases depend mainly on coal for electric power. Dirty coal is now getting cheaper relative to other fossil fuels, such as natural gas and oil.

    New "clean coal" plants would capture carbon and store it away underground, or at least to extract as much energy as possible for each kilogram of carbon pollution. The problem is that clean-coal plants are a lot more expensive than conventional "dirty coal" technology, and the financial crisis is obliterating schemes that would have paid the extra cost. Before the crisis, a team at Stanford University found that the world was investing only about 1 percent of what's needed on advanced coal technologies to meet carbon-emissions targets. Now a spate of canceled projects darkens the picture. There are lots of ways, in theory, to build low-emission power plants. One option is to turn coal into a gas and burn it in an ultra-efficient turbine. This "gasification" approach is not only highly efficient but it also produces nearly all of its carbon dioxide pollution in a concentrated stream that could be pumped safely underground, where it won't warm the atmosphere. So far, few investors are building plants that offer a model for how the technology would be deployed at scale. Before the crisis, a few power companies tried to build just the efficient gasification units, which are cheaper than the whole integrated plant, but most of those plans have evaporated in the last month. Only one large plant is still going forward in the United States, and that one won't include carbon storage.

    Another route is to burn coal in pure oxygen without gasification, which also yields pure waste that can be pumped underground. A 30-megawatt demonstration plant is operating in Germany. A consortium of utilities is also testing a technology to remove CO2 from plant emissions, but no investor is willing yet to build a full-scale project. These options could double or triple the cost of a power plant.

    A 300-megawatt plant that cut emissions nearly 90 percent would cost $1 billion to $2.5 billion, and the United States would need about 1,000 such plants to match its current coal-power output. China would need another 1,000. Since the 1960s, when U.S. utilities last made major investments in new plants, their average bond rating has fallen from AA to BBB, and now the credit crisis has made it all but impossible to finance any new plant, much less an expensive, clean one. The European Union has no money for its plan to build a dozen "zero-emission plants." The price of CO2 in Europe is too low to attract investors to this technology. The latest scheme to fix the problem—a giveaway of emission credits to investors who build clean-coal plants—is falling victim to the financial crisis, which has halved the price of emission permits, and thus the value of emission credits. The U.K. has been holding a contest for public funds to jump-start clean-coal technology. In November 2008 BP pulled out of the competition, citing its inability to form a successful consortium. Early in 2008 the U.S. government killed its investment in advanced coal due to exploding costs.

    Environmentalists, in their opposition to coal of any kind, may provide the coup de grâce. Greenpeace, riffing on James Bond, is hawking a "Coalfinger" spoof on the Internet and is deep in a campaign to stop all new coal plants. U.S. environmental groups recently announced a campaign to expose clean coal as a chimera. Thanks to such efforts, in the United States it's now nearly impossible to build any kind of coal plant, including tests of clean technology. As the world economy recovers, nations will once again turn to their old stalwart, dirty coal.

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    Lowell Feld is founder and editor of Raising Kaine, the largest progressive blog in Virginia. In 2003, Feld was heavily involved in the Draft Wesley Clark movement, running two grassroots websites — Environmentalists for Clark and Hispanics for Clark. In early 2006, Feld co-founded the Draft James Webb movement, gathering 1,000 signatures and $40,000 in pledges for a Webb candidacy in just a few weeks. In July 2006, Feld joined the Webb for Senate campaign as its netroots coordinator, helping to raise more than $4 million online (out of about $8 million total).  In 2008, Feld consulted for the South Dakota Democratic Party and the Judy Feder for Congress campaign. He is co-author of the book, “Netroots Rising: How a Citizen Army of Progressive Bloggers and Online Activists is Changing American Politics.” In addition, Feld has 17+ years of experience in world oil markets as an analyst and team leader with the U.S. Energy Information Administration.

    Nate Wilcox is an award-winning political consultant with over 10 years of experience at the nexus of traditional political communications and the internet. He has worked on more than 36 campaigns including serving as Online Communications Director for Mark Warner’s Forward Together PAC. In 2004 he ran Richard Morrison’s historic challenge to Tom DeLay which was the first congressional campaign to raise more than $500,000 online and was the first campaign endorsed by DailyKos.com and Democracy for America. Morrison’s unexpectedly stiff challenge to DeLay helped precipitate the downfall of the powerful majority leader in 2005/2006. In the 1990s, Wilcox was the first Director of Internet and New Media for Public Strategies, Inc. the powerhouse public affairs firm from Texas where he worked worked for former Texas Governor Ann Richards, future Bush advisors Matthew Dowd and Mark McKinnon, as well as Clinton Staffers Paul Begala and Jeff Eller. He is currently a Senior Advisor at Jerome Armstrong’s WebStrong Group where he advises clients such as Mark Warner and John Kerry.

    CISAC Conference Room

    Lowell Feld Founder Editor Speaker Raising Kaine
    Nate Wilcox Award Winning Political Consultant Speaker The Nexus of Traditional Political Communications and the Internet
    Seminars

    Instruments of Energy Policy, hosted by the Program on Energy and Sustainable Development and the Freeman Spogli Institute for International Studies, brings to Stanford four notable researchers working in the policy and academic arena of energy policy. They will present their current energy research drawing from their respective backgrounds in economics, political sience, and environmental science and policy.

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    David G. Victor
    David G. Victor
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    David G. Victor comments on the current flattening of investment in green technology due to market forces. What is emerging, he says, is a shift towards a green economy of scale that is based on government intervention such as regulation, mandates, and subsidies. Such mechanisms are more reliable in the long run because a large part of green's success will need to be based on larger scale industrial complexes such as off-shore wind parks and electrical grids capable of storing and delivering intermittent power.

    Serious greenery is about efficiency--not only in the use of energy but also labor and capital.

    (Excerpt) The winds of economic destruction are flattening not just retirement accounts but also naive visions for a green economy. Public support for costly new green mandates is weakening, and government budgets to fund them are bleeding red ink. Plummeting prices of oil and other fossil fuels have made it harder for green to compete in the marketplace. IPOs of firms working on "clean tech" green energy that have fueled fantasies of the coming energy revolution have crashed to a halt. In all the bad economic news, a new face of green is coming into focus. Whereas the old view of green tech was based on many small, decentralized sources of power and a green economy that harnessed the power of the marketplace, the new version will rely more heavily on regulation and subsidies. It will also embrace the wisdom, true in most of the energy business, that bigger is better for weathering economic storms.

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    Authors
    David Hults
    David Hults
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    Sanctuary for the State: National Oil Companies in Brazil, Mexico, and Venezuela

    As the pro-market "Washington Consensus" has unraveled, this decade has seen the emergence of two new Latin American trends: One group of countries favoring continued liberalization (Brazil, Chile, Mexico), and another opting for increasing state intervention (Argentina, Ecuador, Venezuela). Energy policy tells some of the story behind these two trends. This talk will focus on energy policy for three Latin American countries-- Brazil, Mexico, and Venezuela-- within the context of a larger fifteen-country study on National Oil Companies. The speaker will address how oil has both facilitated greater state control and created, though typically to a lesser degree, some pressures for market liberalization, as well as suggest some implications from recent oil market trends (new oil field discoveries in Brazil, falling oil prices globally) for state control in the region. 

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    Authors
    Brian Burton
    John Paul Schnapper-Casteras
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    President-elect Barack Obama will inherit an Iraq that has experienced substantial improvements in security, but remains rife with unresolved internal issues. If not handled carefully, Iraq's fragile progress could dissolve and the country could become a dangerous foreign policy minefield for yet another American president. Here are the top 10 issues the next administration must address:

    1. Determination of Objectives: The Bush administration invested vast resources in the hopes of achieving maximalist aims in Iraq. Though the results in Iraq have clearly fallen short of those aims, the Obama administration needs to formulate a policy that is more comprehensive and nuanced than "end this war." What can the U.S. realistically achieve? What are the outcomes that the U.S. can or cannot live with? How does Iraq fit in to a cogent strategy for the broader region, including Afghanistan, Pakistan, and Iran?
    2. Approach to Withdrawal: The Status of Forces Agreement moving forward between the U.S. and Iraqi governments, combined with the urgent need for reinforcements in Afghanistan, will shape the contours of withdrawal. But what if Baghdad wants to change the schedule? Will changing conditions on the ground affect the pace and process of withdrawal? Is Washington willing to extend or accelerate the current "time horizon" if the security situation significantly deteriorates?
    3. Management of the Security Transition: Earlier attempts to transfer security responsibility to Iraqi forces in 2006 encountered many problems. Do current assessments of when provinces will be ready for transition accurately reflect conditions on the ground? Can the U.S. effectively "thin out" its forces, while maintaining robust enabling capabilities (intelligence, air support, medical evacuation) in critical areas?
    4. Development of the Iraqi Security Forces (ISF): America must help the Iraqi forces foster competence and professionalism and prevent the reemergence of sectarianism in the ranks. To make this happen, U.S. military advisors will likely be needed for years to come, particularly to help develop support capabilities that the Iraqis currently lack. Is this advisory effort effective as currently organized and prepared? How will advisors be allocated to meet growing demands in Afghanistan as well as Iraq? Can the Defense Department accelerate its Foreign Military Sales program to provide the ISF with badly-needed equipment?
    5. Sunni Reintegration: The Sunni Awakening and Sons of Iraq groups are facing an uncertain future as they transition from American control to Iraqi payroll and command structures. How can the U.S. help ensure that Sunnis are reintegrated into Iraqi society so they have a stake in the political system and do not return to the insurgency?
    6. Status of Kirkuk: Kirkuk, the oil-rich city of northern Iraq claimed by both Kurds and Arabs, will be a flashpoint for continued conflict. What role can the U.S. play to minimize the potential for re-escalation of Arab-Kurd violence over Kirkuk? Should U.S. policy emphasize indefinite postponement of this issue, broker a territorial compromise, or encourage Iraqis to "give" the city to one side and focus instead on sharing oil revenues?
    7. Dealing with Iranian influence: As Iraq's neighbor, Iran has a natural interest in influencing Iraq's domestic affairs. However, Tehran's political obstructionism and support for militants ultimately undermines Iraqi as well as American interests. How much and what types of Iranian influence in Iraqi affairs can the U.S. tolerate? How can the U.S. help Iraqis counter the most destabilizing and pernicious Iranian influences?
    8. Future of Political Relations with Iraq: How does the U.S. envision its relations with an emerging sovereign Iraq that is likely to exhibit erratic behavior on the international stage? How and to what extent should America insert itself in Iraqi politics? Should the U.S. government actively seek a balance of power between Iraq's major factions, so as to spread the risk and avoid linking itself to the fortunes of any one group? Or should it remain on the sidelines, so as to extricate ourselves as best we can?
    9. Economic Development: Iraq's economy is currently 90 percent dependent on oil exports, resulting in substantial volatility in revenue. How can the U.S. help Iraq diversify its economic base? How can the U.S. encourage greater foreign investment in the Iraqi economy beyond the energy sector? What incentives could Baghdad provide provincial and local officials to improve transparency and revenue sharing mechanisms?
    10. Return of Refugees: Huge numbers of Iraqis fled to Jordan and Syria to escape sectarian violence. Does Baghdad owe those nations financial aid? As refugees return, what is the best way to handle this influx? Is America committed to reestablishing the mixed-sect districts that existed prior to 2006? Is a level of sectarian separation necessary to keep the peace?

    No panacea exists for Iraq's remaining ills, and no amount of planning will account for all of its complex and sometimes contradictory dynamics. But with America's direct influence likely to wane as its troop presence diminishes, it is increasingly important to anticipate the full spectrum of difficult issues and choices ahead, in order to devise the best way forward for the United States and Iraq.

    Brian M. Burton is a research assistant at the Center for a New American Security and a graduate student at the Georgetown University Security Studies Program. John Paul Schnapper-Casteras is a predoctoral fellow at Stanford University's Center for International Security and Cooperation.

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