CE Week #15: “End of the Line for Islamabad”

Unless Pakistan changes how it conceives of its interests and strategy, it will remain an unstable and distrusted place.
Fareed Zakaria
NEWSWEEK
From the magazine issue dated Dec 15, 2008

If the Mumbai attacks were India’s 9/11, then it has responded quite differently than the United States did in the weeks following that horrible event. Much of the debate among Indians has looked inward, focusing on their government’s lack of preparedness, poor intelligence and bungling response to the attack. Senior Indian officials have resigned, some evidence links the terrorists to the Pakistani militant group Lashkar-e-Taiba, but the Indian government has not rushed to war. Even the Hindu fundamentalist Bharatiya Janata Party, traditionally ultrahawkish, is advocating “coercive diplomacy,” calling on the world community to insist that Pakistan implement its U.N. treaty obligations to fight terrorism. India is showing restraint for some wise reasons—the two nations are nuclear-armed and a military strike would only inflame Pakistani nationalism. But a democratic government, approaching an election season, can only remain restrained if its restraint yields something. If not, South Asia—and that includes Afghanistan—is going to get a lot more unstable.

Some have argued that India should use its intelligence and air power to go after some of Lashkar’s camps in the borderlands of Kashmir. But one would not need spies and airplanes to find the head of Lashkar, Hafiz Mohammed Saeed. He lives and works in Lahore. Of course, Lashkar was banned by the Pakistani government in 2002, but Saeed now runs its “charitable” arm, Jamaat-ul-Dawa, a large and growing force in the country. The problem with Islamic militant groups in Pakistan is not that they are hard to find but rather that they are in plain sight. The Pakistani government has never made a fundamental decision to turn its back on the culture of jihad.

When one speaks of the Pakistani government, it’s necessary to be precise. The elected, civilian government appears to be something of an innocent bystander in this affair. Initially, President Asif Ali Zardari denounced the terrorists and offered full assistance to Indian investigators. His prime minister offered to send the head of Pakistan’s Inter-Services Intelligence agency to New Delhi to help. Then, after the Army weighed in, the offer was withdrawn. Zardari’s statements became more evasive and defensive. If anyone wondered who actually ran the country, it soon became clear.

Whether the Pakistani military was involved in the Mumbai attacks remains unclear. The Indians certainly think so. “The attackers were trained in four places in Pakistan by men with titles like colonel and major. They used communication channels that are known ISI channels. All this can’t happen without the knowledge of the military,” one Indian official told me. They’re not alone in their suspicions. “This was a three-stage amphibious operation. [The attackers] maintained radio silence, launched diversionary attacks to pull the first responders out of the way, knew their way around the hotels, were equipped with cryptographic communications, credit cards, false IDs,” says David Kilcullen, a counter-insurgency expert who has advised Gen. David Petraeus. “It looks more like a classical special forces or commando operation than a terrorist one. No group linked to Al Qaeda and certainly not Lashkar has ever mounted a maritime attack of this complexity.” Which would be worse: if the Pakistani military knew about this operation in advance, or if they didn’t?

The situation in South Asia is very complicated. But one thing is clear. All roads lead through Rawalpindi, the headquarters of the Pakistani military. For decades it has sponsored militant groups like Lashkar and the Taliban as a low-cost strategy to bleed India and influence Afghanistan. It now faces a choice. Unless Pakistan changes how it conceives of its interests and strategy, the country will remain an unstable place, distrusted by all its neighbors. Even the Chinese, longtime allies, have begun worrying about the spread of Islamic extremism. Pakistan needs to take a civilian, not a military, view of its national interest, one in which good relations with India lead to trade, economic growth and stability. Of course, in such a world Pakistan wouldn’t need a military that swallows up a quarter of the government’s budget and rules the country like a privileged elite.

The one country that could do more than any other to change the military’s mind-set is America. For India to bomb some Lashkar training camps would be to attack the symptoms, not the source of the rot—and would only fuel sympathy for the militants among ordinary Pakistanis. To the contrary, what the world needs is for Pakistan to decide on its own that its prospects are diminished by tolerance of such groups. American diplomacy has been fast and effective so far. But we must keep the pressure on Islamabad, and get countries like China and Saudi Arabia involved as well. President-elect Barack Obama has proposed aid to Pakistan that has sensible conditions attached, meant to help modernize the country.

America also has much to lose if things fall apart in South Asia. If tensions between India and Pakistan rise, distracting the Pakistani military from the jihadists in its tribal areas, it will lead to much greater instability in Afghanistan and a freer hand for the Taliban and Al Qaeda. Washington, too, needs to see results.

URL: http://www.newsweek.com/id/172567
Published in: on December 8, 2008 at 10:05 am Comments (4)

CE Week #15: “Detroit Bailout Is Set to Bring on More U.S. Oversight”

December 8, 2008

WASHINGTON — Congressional Democrats were drafting legislation Sunday for tight government control of the crippled American auto industry, including the possible creation of an oversight board made up of five cabinet secretaries and the head of the Environmental Protection Agency and led by an independent chairman or “car czar.”

While the form of oversight was still to be negotiated by Congressional Democrats and the White House, the talks made clear the extent to which the auto companies would have to submit to substantial government supervision in order to receive a taxpayer-financed bailout.

Whatever oversight entity is created, it would direct the drastic reorganization plans that the auto companies have said they were willing to undertake in exchange for billions of dollars in short-term government loans to keep them in business, a senior Congressional aide said. A main factor complicating the deliberations was the imminent transition between the Bush and Obama administrations.

The discussions of how strong a hand the government should take with the auto industry came as Congressional and White House negotiators sought to put the final touches on emergency bridge loans of about $15 billion to keep General Motors, Chrysler and Ford afloat.

The final legislation is also expected to impose stringent taxpayer protections, including stock warrants that would give the government an equity stake in the three companies, new limits on executive pay and a ban on stock dividends while the loans are outstanding. One proposal would require the auto companies to seek government approval for any business transaction of $25 million or more.

Once a bill offering aid to the industry is completed by Congressional Democrats and the White House, it would still need the approval of some Senate Republicans. Senator Carl Levin, Democrat of Michigan, one of the auto industry’s biggest supporters, said on Sunday that it was uncertain whether the plan would win the 60 votes needed to advance in the Senate.

President-elect Barack Obama, whose transition team has been involved in the talks, made starkly clear in an interview and at a brief news conference on Sunday that any aid to the Big Three auto companies should not come without significant concessions.

“They’re going to have to restructure,” Mr. Obama said in an interview on “Meet the Press” on NBC. “And all their stakeholders are going to have restructure. Labor, management, shareholders, creditors — everybody is going to recognize that they have — they do not have a sustainable business model right now, and if they expect taxpayers to help in that adjustment process, then they can’t keep on putting off the kinds of changes that they, frankly, should have made 20 or 30 years ago.”

Still, the bill seemed likely to stop short of authorizing the broad powers that some lawmakers had urged to allow what could have amounted to an out-of-court bankruptcy proceeding, in which the automakers’ creditors could be forced to accept reduced payments, labor contracts could be rewritten and executives could be summarily dismissed.

Senator Christopher J. Dodd, the chairman of the banking committee that is drafting the legislation, called for the dismissal or resignation of Rick Wagoner, the chief executive of G.M., which is the most imperiled automaker.

“I think you’ve got to consider new leadership,” Mr. Dodd said Sunday in an interview on “Face the Nation” on CBS. “If you’re going to really restructure this, you’ve got to bring in a new team to do this, in my view.”

Asked specifically about Mr. Wagoner, Mr. Dodd said: “I think he has to move on.”

A G.M. spokesman, Steve Harris, said that the company was grateful for Mr. Dodd’s assistance and that it was willing to accept tough oversight, but that it retained confidence in Mr. Wagoner.

“We appreciate Senator Dodd’s support in trying to provide some assistance for the industry, but General Motors’ employees, dealers, suppliers and the G.M. board of directors feel strongly that Rick Wagoner is the right person to continue the transformation of the company that he began and has presented plans to Congress to continue and accelerate,” Mr. Harris said.

All of the proposals made clear that Congressional Democrats and the White House, furious over the need for another huge corporate bailout, intended to make the automakers pay a price far greater than the 5 percent interest on the emergency loans.

Congressional Democrats said that if any of the companies failed to meet government requirements by the end of March, the emergency loans could be called in for immediate repayment.

At the news conference in Chicago, Mr. Obama affirmed his position that it would be unacceptable to allow the auto industry to collapse. But using somewhat tougher language than he had before, he said it made “no sense for us to shovel more money into the problem” if the companies are unwilling to reorganize.

The Bush White House, in its proposal for an auto rescue plan, called for the creation of a “financial viability adviser” within the Commerce Department charged with negotiating a “long-term financial viability plan” for each of the auto companies.

If such a viability plan could not be negotiated, the White House proposal called for allowing the adviser to mandate one.

Democrats were weighing counterproposals calling for the creation of a full oversight board, made up of the secretaries of commerce, energy, labor, transportation and of the Treasury, and the administrator of the Environmental Protection Agency.

Many lawmakers in both parties say they are troubled by the Bush administration’s handling of the $700 billion financial system rescue, which Congress approved in October. Several lawmakers said they did not want to be pressured again into spending billions of taxpayer dollars to rescue private companies.

“I think Congress is tired of being stampeded,” Senator Jeff Sessions, Republican of Alabama, said on “Face the Nation.” “We haven’t even seen a bill yet. So I think there’s still a lot of skepticism out there.”

Senator Richard C. Shelby of Alabama, the senior Republican on the banking committee, on “Fox News Sunday” urged his Republican colleagues to filibuster a bailout bill. “I think this is a bridge loan to nowhere,” he said.

As lawmakers grappled with ways to aid the auto industry. Mr. Obama cautioned on “Meet the Press” that it was critical to think about both short- and long-term solutions to the nation’s economic woes. “Things are going to get worse before they get better,” Mr. Obama said.

David M. Herszenhorn reported from Washington, and Jackie Calmes from Chicago. Peter Baker and John M. Broder contributed reporting from Washington, and Bill Vlasic from Detroit.

Oversight Definition (answers.com):  In general usage, oversight usually means something that has been forgotten or overlooked. But in Congress it means just the opposite. When Congress performs its oversight functions, it is supervising, or looking over, the business of executive branch departments.

The Legislative Reorganization Act of 1946 assigned to each committee or subcommittee with jurisdiction over legislation relating to a particular agency, or with the power to appropriate its funds, the power to exercise “continuous watchfulness” over that agency. Through their oversight functions, congressional committees monitor how well agencies are administering the laws and if they are spending federal money properly. The General Accounting Office conducts regular audits of agency finances. Committees also call agency heads to testify during oversight hearings. By contrast to investigations, which are usually special hearings concerned with a single issue or event, oversight is a regular, year-to-year, ongoing procedure. Consequently, Congress’s oversight functions get less attention from the media than dosplashier investigations. (1946 and 1970)