ThelessonsofstatefailureTraditionaldiplomacydealswithrisksofconflictbetweennation-states.Theserisksareofcoursestillpresent,butamorepervasivedangeristhatstateswillsimplycollapse.OfadozenorsoconflictsinAfricainrecentyears,few,ifany,haveinvolvedcross-borderaggression.Instead,bankruptandimpoverishedstateshaveimploded,thevacuumfillednotbyregimeswithnewlyconsolidatedpowerbutbybrutalviolenceengulfingcivilians.Thedisasterthenfansouttoneighboringcountries,andeventuallymuchfartherafield.Aspecial"taskforceonstatefailure"setupbyAmerica’’sCIAhasfoundthatthreevariablesaremostpredictiveofstatestabilityorinstability:theopennessoftheeconomy;democracy;andinfantmortality.Insub-SaharanAfrica,wheremuchofthepopulationlivesontheedgeofsubsistence,povertyandsloweconomicgrowth,oroutrightdecline,increasedthelikelihoodoffuturestatecollapse,therebytrappingthecountriesinaviciouscircleofpovertyandpoliticalinstability.Richcountries,ontheotherhand,tendtomaintainpoliticalstabilitywhich,inturn,promotesfurthereconomicdevelopment.Whencountrieswereclassifiedin1990bytheirstatusintheUnitedNationsHumanDevelopmentIndex(anindexofincome,literacyandhealth),high-developmentcountriesachievedrobustandstableeconomicgrowthduring1990-98,withaveragegrowthratesofaround2.3%ayearandwith35outof36countriesenjoyingrisinglivingstandards.Middle-developmentcountriesachievedaslightlylowergrowthrate,1.9%ayear,but7outof34countriesexperiencedoutrightdeclinesinlivingstandards.Thepoorestcountriesaveragednoeconomicgrowthatall,with15outof39experiencingfallinglivingstandards.Theflip-sidetothepovertytrap,however,isthatthegainsofdevelopmenttendtobesustained,oncecountriesbreakthroughtosufficientlevelsofincome,healthandliteracy.ConservativesinAmericaoftenaskwhyitmattersifanimpoverishedcountrycollapses.Theansweristhat,asidefromhumanitarianconcerns,crisesinsuchfarawayplacesoftensucktheUnitedStatesintocrisisaswell.Since1960,AmericahasbeendraggedintomilitaryconflictsinCuba,Thailand,Laos,Congo,Vietnam,theDominicanRepublic,Cambodia,Cyprus,Lebanon,Zaire,ElSalvador,Libya,Lebanon,Honduras,Nicaragua,Chad,Liberia,Bosnia,Somaliaand,morerecently,KosovoandColombia.Statefailures,orevenmilderstateinstability,havealsounderminedAmericanandglobalintereststhroughgloballytransmittedfinancialcrises,drug-trafficking,money-laundering,terrorism,thespreadofdiseasessuchasAIDSandmassrefugeeflows.Onthepositiveside,sustainedeconomicdevelopmentwouldcreatenewandpotentiallylargegainsfromtrade,aswellasmuch-neededcooperationinscienceandculture.Evenwhenaproblemiscorrectlyidentified,thereisastunningdisconnectbetweenriskandactioninAmerica’’sforeigneconomicpolicy.TheglobalAIDSepidemic,forexample,hasrecentlyandwiselybeenidentifiedasarisktothesecurityoftheUnitedStates.WhatactionhasbeentakenPresidentGeorgeBushhascalleduponAmericanstogivejust$200million,or70centseach,tothenewglobalfundtofightthedisease.Thefailuretomakeevenbasicinvestmentsinforeignpolicyhasbeenpervasive,andtheexamplesarelegion.Elevenyearsago,thelastprimeministerofunifiedYugoslavia,AnteMarkovic,launchedalast-ditchplanforeconomicstabilization.HeappealedtoEuropeandtheUnitedStatesforareductionindebt-servicingandothermodestfinancialsupport,butwasturneddownbythecreditorgovernments.Economicstabilisationwasundermined,andthishelpedSlobodanMilosovictogettheupperhand.Therest,astheysay,ishistory.InthepasttwoyearsAmericaandEuropeancountrieshavemadethesamemistakeinNigeria,animpoverishedandunstablecountryemergingfromyearsofcorruptdespotism.AlthoughNigeria’’soilearnings,netofproductioncostsandincometoforeignoilcompanies,amounttoaroundonly$90perNigerianayear,theUnitedStatesandEuropecontinuetoprevaricateoverurgentlyneededdebt-reductionbecausetheoilearningsareeasytosqueezefordebt-servicepayments.ThenewdemocraticregimeofPresidentOlesegunObasanjoisputatrisk,andLibya’’sleader,MuammarQaddafi,doesnotmissachancetoinflamemattersinNigeria’’sIslamicnorthernstates.Areaafterareaofneglectcanbecatalogued,fromthestrife-tornAndestoregionsaroundtheworldunderminedbyclimatechange.Throughallofit,theUnitedStatesbarelyliftsafinger.ItsomehowthinksthatsendingtheimpoverishedandunstablegovernmentsdownPennsylvaniaAvenuetogetloansfromtheIMFandtheWorldBankwilldothejob,butevensomestaffofthoseorganisationsnowpubliclyacknowledgethattheyhavefailed:makingloanswhengrantsareneeded,imposingexcessiveausteritybycollectingratherthancancelingdebts,andfailingtofindpartner-institutionswiththescientificexpertisetotackleunderlyingproblemsofdisease,lowfoodproduction,climaticstressandenvironmentaldegradation.
ThelessonsofstatefailureTraditionaldiplomacydealswithrisksofconflictbetweennation-states.Theserisksareofcoursestillpresent,butamorepervasivedangeristhatstateswillsimplycollapse.OfadozenorsoconflictsinAfricainrecentyears,few,ifany,haveinvolvedcross-borderaggression.Instead,bankruptandimpoverishedstateshaveimploded,thevacuumfillednotbyregimeswithnewlyconsolidatedpowerbutbybrutalviolenceengulfingcivilians.Thedisasterthenfansouttoneighboringcountries,andeventuallymuchfartherafield.Aspecial"taskforceonstatefailure"setupbyAmerica’’sCIAhasfoundthatthreevariablesaremostpredictiveofstatestabilityorinstability:theopennessoftheeconomy;democracy;andinfantmortality.Insub-SaharanAfrica,wheremuchofthepopulationlivesontheedgeofsubsistence,povertyandsloweconomicgrowth,oroutrightdecline,increasedthelikelihoodoffuturestatecollapse,therebytrappingthecountriesinaviciouscircleofpovertyandpoliticalinstability.Richcountries,ontheotherhand,tendtomaintainpoliticalstabilitywhich,inturn,promotesfurthereconomicdevelopment.Whencountrieswereclassifiedin1990bytheirstatusintheUnitedNationsHumanDevelopmentIndex(anindexofincome,literacyandhealth),high-developmentcountriesachievedrobustandstableeconomicgrowthduring1990-98,withaveragegrowthratesofaround2.3%ayearandwith35outof36countriesenjoyingrisinglivingstandards.Middle-developmentcountriesachievedaslightlylowergrowthrate,1.9%ayear,but7outof34countriesexperiencedoutrightdeclinesinlivingstandards.Thepoorestcountriesaveragednoeconomicgrowthatall,with15outof39experiencingfallinglivingstandards.Theflip-sidetothepovertytrap,however,isthatthegainsofdevelopmenttendtobesustained,oncecountriesbreakthroughtosufficientlevelsofincome,healthandliteracy.ConservativesinAmericaoftenaskwhyitmattersifanimpoverishedcountrycollapses.Theansweristhat,asidefromhumanitarianconcerns,crisesinsuchfarawayplacesoftensucktheUnitedStatesintocrisisaswell.Since1960,AmericahasbeendraggedintomilitaryconflictsinCuba,Thailand,Laos,Congo,Vietnam,theDominicanRepublic,Cambodia,Cyprus,Lebanon,Zaire,ElSalvador,Libya,Lebanon,Honduras,Nicaragua,Chad,Liberia,Bosnia,Somaliaand,morerecently,KosovoandColombia.Statefailures,orevenmilderstateinstability,havealsounderminedAmericanandglobalintereststhroughgloballytransmittedfinancialcrises,drug-trafficking,money-laundering,terrorism,thespreadofdiseasessuchasAIDSandmassrefugeeflows.Onthepositiveside,sustainedeconomicdevelopmentwouldcreatenewandpotentiallylargegainsfromtrade,aswellasmuch-neededcooperationinscienceandculture.Evenwhenaproblemiscorrectlyidentified,thereisastunningdisconnectbetweenriskandactioninAmerica’’sforeigneconomicpolicy.TheglobalAIDSepidemic,forexample,hasrecentlyandwiselybeenidentifiedasarisktothesecurityoftheUnitedStates.WhatactionhasbeentakenPresidentGeorgeBushhascalleduponAmericanstogivejust$200million,or70centseach,tothenewglobalfundtofightthedisease.Thefailuretomakeevenbasicinvestmentsinforeignpolicyhasbeenpervasive,andtheexamplesarelegion.Elevenyearsago,thelastprimeministerofunifiedYugoslavia,AnteMarkovic,launchedalast-ditchplanforeconomicstabilization.HeappealedtoEuropeandtheUnitedStatesforareductionindebt-servicingandothermodestfinancialsupport,butwasturneddownbythecreditorgovernments.Economicstabilisationwasundermined,andthishelpedSlobodanMilosovictogettheupperhand.Therest,astheysay,ishistory.InthepasttwoyearsAmericaandEuropeancountrieshavemadethesamemistakeinNigeria,animpoverishedandunstablecountryemergingfromyearsofcorruptdespotism.AlthoughNigeria’’soilearnings,netofproductioncostsandincometoforeignoilcompanies,amounttoaroundonly$90perNigerianayear,theUnitedStatesandEuropecontinuetoprevaricateoverurgentlyneededdebt-reductionbecausetheoilearningsareeasytosqueezefordebt-servicepayments.ThenewdemocraticregimeofPresidentOlesegunObasanjoisputatrisk,andLibya’’sleader,MuammarQaddafi,doesnotmissachancetoinflamemattersinNigeria’’sIslamicnorthernstates.Areaafterareaofneglectcanbecatalogued,fromthestrife-tornAndestoregionsaroundtheworldunderminedbyclimatechange.Throughallofit,theUnitedStatesbarelyliftsafinger.ItsomehowthinksthatsendingtheimpoverishedandunstablegovernmentsdownPennsylvaniaAvenuetogetloansfromtheIMFandtheWorldBankwilldothejob,butevensomestaffofthoseorganisationsnowpubliclyacknowledgethattheyhavefailed:makingloanswhengrantsareneeded,imposingexcessiveausteritybycollectingratherthancancelingdebts,andfailingtofindpartner-institutionswiththescientificexpertisetotackleunderlyingproblemsofdisease,lowfoodproduction,climaticstressandenvironmentaldegradation.