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Michael A. McFaul
Abbas Milani
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CDDRL Faculty Associate, Michael McFaul and Hoover Institution Fellow, Abbas Milani argue that Iran's nuclear program does not pose a direct threat to the United States. US leaders, therefore, need a radical new approach that would nurture change from within Iran rather than impose change from without.

Even when the European-Iranian agreement to halt Iran's uranium-enrichment program looked solid, the United States was blunt in its disapproval. The ink was barely dry on the accord when the Bush administration, it appears, began trying to derail it.

First, rather than endorse the accord, Secretary of State Colin Powell essentially accused the Iranians of lying when they said their nuclear program was for peaceful purposes. He announced that new intelligence showed Iran is developing a nuclear warhead to arm its Shahab-3 ballistic missiles. Then, at a Nov. 20 meeting of heads of state in Santiago, Chile, President Bush stated unequivocally that Iran is trying to build a nuclear weapon.

Why would the administration take such a combative stance? Because hard-liners within the administration thought Tehran would use the settlement to buy time for building nuclear weapons, and that the United States would be better off bombing Iran's suspected weapons sites.

Proponents of using military force against Iran have not yet won the argument within the Bush administration. But the past two weeks of strong pronouncements about the threat Iran poses suggest that the military option may be gaining ground. And Iran's last-minute attempts to maintain some enrichment capabilities -- which by press time Friday were threatening to kill the European agreement -- no doubt strengthened the hard-liners' hand.

Before the United States even considers such a drastic step as airstrikes against suspected nuclear weapons sites -- or even trying to compel the United Nations to endorse new economic sanctions against Iran -- it is essential that our leaders be clear about what they are trying to accomplish in Iran and whether such actions will help or hurt.

If the ultimate goal is to create a democracy -- one that would not fear the United States and therefore have less use for the bomb -- then dual-track diplomacy with Iran's government and with its people is more likely to work than military action.

Probably the most important question the administration's leaders should ask themselves is whether Iran, even a nuclear-armed Iran, poses a direct threat to the United States and its allies.

The answer, we believe, is no.

The mullahs who rule Tehran long ago gave up their ideological quest to "export'' revolution. Like the last generation of octogenarians who ruled the Soviet Union, Iran's leaders today want nuclear weapons as a means to help them preserve their power, not to help them spread their model of theocratic rule to other countries.

Deterrence works

In other words, even if Iran's rulers succeeded in building nuclear bombs, they would be very unlikely to take on the United States and its vast nuclear arsenal or to attack Israel. (The mullahs in Tehran understand that any nuclear attack against Israel would trigger full retaliation from the United States.) In dealing with Iran, deterrence works.

Tehran would also be unlikely to pass a bomb to Islamist terrorists, despite its support of Arab terrorist organizations that continue to attack Israel. One reason, again, is deterrence. Iran's rulers know that the United States would probably be able to trace the weapon back to them and retaliate.

The threat of a nuclear Iran comes, instead, from the reaction it is almost sure to spark in the region and the world, possibly sending Egypt and Saudi Arabia on their own quests for nuclear weapons.

Such an arms race would undermine the longstanding Treaty on the Non-Proliferation of Nuclear Weapons, an agreement signed by nearly 190 countries, that has proved indispensable in preventing the spread of nuclear weapons.

Bush administration hard-liners want to save that arms-control treaty by using arms. In advocating a "surgical'' military strike against Iran's most important nuclear facilities, including the once hidden enrichment plant in Natanz, they cite Israel's airstrike against Iraq's nuclear complex at Osirak in 1981 as a model of success. They argue that an American (or Israeli) strike would not end Iran's nuclear aspirations, but would dramatically slow its program and make the mullahs reconsider the costs of trying to restart it.

Attack would backfire

But a pre-emptive military strike would instead do just what the hard-liners in Tehran hope for: It would unite their people behind them.

Even a precise bombing campaign would kill hundreds if not thousands of innocent Iranians; destroy ancient buildings of historical and religious importance; trigger an Iranian counterstrike, however feeble, against American targets and friends in the region, and spur the mullahs to increase their direct support for American enemies in the Shiite part of Iraq.

Even more important, an attack would only encourage Tehran to redouble its efforts to build a bomb, just as Saddam Hussein sped up his efforts after the 1981 strike. It would also hurt the democratic opposition movement inside Iran, which is already in retreat and cannot afford another setback. After an attack, Iranians, not unlike Americans, are sure to rally around the flag and their government.

If the administration decides, in the end, that American military options are limited and counterproductive, the only serious way to impede the development of Iranian nuclear weapons is through negotiation. Iran's recent accord with France, Britain and Germany is only temporary, and negotiations are expected to continue.

If the United States were to jump in now, it could try to ensure that our European allies accept nothing less than a permanent and verifiable dismantling of Iran's enrichment capabilities, as well as banning any plutonium production.

Allowing the Iranians to enrich even some uranium, which they say will be used merely to feed their nuclear power plant, makes it too easy to cheat. To make the deal work, the United States would need to join with Europe, Russia and China in pledging to guarantee Iran a permanent and continuous supply of enriched uranium. To make the deal even more attractive, the fuel could be offered at reduced prices.

Even under the strictest inspection regime, Iran's leaders will cheat, as they have often done in the past, and they will eventually divert enriched uranium from peaceful to military purposes. But the harder and more transparent the allies can make it, the longer it will take Iran to begin building bombs.

In the long run, the world's only serious hope for stopping Iran from developing nuclear weapons is the development of a democratic government in Tehran. A democratic Iran will become an ally of the Western world no longer in need of a deterrent threat against the United States.

Democracy in Iran therefore obviously serves U.S. national interests. Yet Bush administration officials (as well as their predecessors in the Clinton, Bush and Reagan administrations) have not succeeded in developing a strategy for advancing the cause of Iranian democracy.

New strategy

What is needed is a radical new approach that would nurture change from within the country, in alliance with Iran's democratic movement, rather than impose change from without.

A first step would be to establish an American presence in Tehran, as many in Iran's democratic opposition have proposed. Now decades old, the U.S. policy of isolating Iran has not weakened but instead strengthened its autocratic government.

Of course, we are not suggesting that the United States open an embassy in Tehran and turn a blind eye to human rights abuses; that would only contribute to the further consolidation of the mullahs' hold on power. But we are suggesting a new strategy that would allow American government officials, as well as civic leaders, academics and business people, to engage directly with Iranian society.

This engagement cannot occur on a widespread scale without some level of diplomatic relations and some revision of the American sanctions against Iran. Then, more Western foundations would be able to make grants to pro-democracy Iranian organizations, while business people -- and especially the Iranian-American business community in the United States -- would be able to leverage their capital and know-how to influence economic and political change inside Iran. A U.S. presence in Iran would, not incidentally, also enhance the West's ability to monitor Iran's nuclear program.

Critics of engagement argue that diplomatic relations with Iran will reward this "axis of evil'' member for years of supporting terrorism and pursuing nuclear weapons. In fact, an American presence in Iran is the mullahs' worst nightmare.

Iran's government has long used its ongoing tensions with the United States, as well as the embargo, as an excuse for the economic difficulties that are, in fact, the direct results of the regime's incompetence and corruption. Tehran's leaders have conveniently labeled nearly all of their opponents as "agents of America.''

Most important, part of the regime's self-declared legitimacy lies in its claim to be the only Muslim country fighting what it sees as U.S. imperialism. If the United States could prove it's not an enemy of the Iranian people, the legitimacy of Iran's leaders would diminish.

Reagan's course

In the first years of his presidency, Ronald Reagan labeled the Soviet Union the "evil empire'' and went out of his way to avoid contact with such a regime.

Over time, however, Reagan charted a new course of dual-track diplomacy. He engaged Kremlin leaders (well before Gorbachev) in arms control, while also fostering contacts and information flow between the West and the Soviet people in the hope of opening them up to the possibilities of democracy.

In the long run, it was not arms control with the Soviets, but democratization within the Soviet Union, that made the United States safer.

If George W. Bush desires a foreign-policy legacy as grand as Reagan's, now is the time to think big and change course as dramatically as Reagan did.

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Three experts on Russian elections analyze the surprising degree to which Russian voters supported their leaders, especially Putin, in the December 2003 Duma elections and the March 2004 presidential election. Drawing on the results of surveys of a nationally representative sample of Russians of voting age made between December 19, 2003, and February 15, 2004, and then between April 4 and May 11, 2004, the authors identify some distinctive trends in voting behavior. The results of the election are analyzed in terms of the views and characteristics of the people who voted in particular ways. The trends revealed by the surveys and the authors' analysis are used to consider how Putin's Russia compares to "delegative democracies" in Latin America.

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Post-Soviet Affairs
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Michael A. McFaul
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Which of the democratic checks and balances - opposition parties, the judiciary, a free press - is the most forceful? Peru has the full set of democratic institutions. In the 1990s, the secret-police chief Montesinos systematically undermined them all with bribes. We quantify the checks using the bribe prices. Montesinos paid television-channel owners about 100 times what he paid judges and politicians. One single television channel's bribe was five times larger than the total of the opposition politicians' bribes. By revealed preference, the strongest check on the government's power was the news media.

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Big dams built for irrigation, power, water supply, and other purposes were among the most potent symbols of economic development for much of the twentieth century. Of late they have become a lightning rod for challenges to this vision of development as something planned by elites with scant regard for environmental and social consequences, especially for the populations that are displaced as their homelands are flooded. In this book, Sanjeev Khagram traces changes in our ideas of what constitutes appropriate development through the shifting transnational dynamics of big dam construction.

Khagram tells the story of a growing, but contentious, world society that features novel and increasingly efficacious norms of appropriate behavior in such areas as human rights and environmental protection. The transnational coalitions and networks led by nongovernmental groups that espouse such norms may seem weak in comparison with states, corporations, and such international agencies as the World Bank. Yet they became progressively more effective at altering the policies and practices of these historically more powerful actors and organizations from the 1970s on.

Khagram develops these claims in a detailed ethnographic account of the transnational struggles around the Narmada River Valley Dam Projects, a huge complex of thirty large and more than three thousand small dams. He offers further substantiation through a comparative historical analysis of the political economy of big dam projects in India, Brazil, South Africa, and China as well as by examining the changing behavior of international agencies and global companies. The author concludes with a discussion of the World Commission on Dams, an innovative attempt in the late 1990s to generate new norms among conflicting stakeholders.

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In a May 14 lecture hosted by the Center on Democracy, Development and the Rule of Law, Francis Fukuyama, PhD -- professor of international political economy at Johns Hopkins University and renowned author of The End of History and the Last Man -- discussed the problem of weak, underdeveloped nation-states; the effectiveness of various approaches to strengthening such states; and the importance of culture, context and history in the task of state-building. His lecture, titled "State-building: A Framework for Thinking about the Transfer of Institutions to Developing Countries," drew a full room of attendees to the Bechtel Conference Center in Encina Hall

A former member of the RAND Corp. and the U.S. Department of State who has written widely on issues of democratization and international political economy, Fukuyama first presented a framework with which nation-states can be evaluated according to two key criteria: the strength of the state, and the scope of its functions. The first refers to a state's ability to enforce its own laws and policies; the second refers to how involved the state becomes in carrying out various societal functions, ranging from basic functions such as maintaining law and order and protecting public health, to more "activist" functions such as running industries and redistributing wealth.

Fukuyama asserted that from a development standpoint, nation-states should be strong but should carry out only the minimum necessary functions. He said that only one country he has studied -- New Zealand -- has effectively moved toward this ideal in recent years. He noted that many struggling, developing nations, such as Brazil, Mexico, Pakistan and Turkey, are overly ambitious in their scope -- attempting to run vast industries, for example -- but are weak and unable to carry out their policies because of factors like corruption. Other states that Fukuyama identified as "failed states," such as Haiti and Sierra Leone, are both limited in scope and weak, attempting to carry out only the most basic governmental functions and not doing it very well.

Fukuyama then discussed and evaluated various approaches to strengthening developing nations. He noted that in recent years much emphasis has been placed on encouraging such nations to reduce the scope of their functions, through deregulation and privatization, but said the effectiveness of this approach is now in question. A more effective approach, he said, is helping weak nation-states build their own strong institutions, such as political parties, public health networks and central banking.

Unfortunately, Fukuyama said, sometimes the efforts of outside organizations to strengthen a country's institutions only make things worse, because solutions are imposed from outside rather than developed from within. "Ideally, we would want a country's own public health system to handle that country's problems with AIDS or malaria," he said. "But when you flood the country with your organization's own doctors and nurses and infrastructure, what do the local doctors do? They quit their government posts to get on the payroll of your NGO." In a few months or years, when the organization withdraws its support, Fukuyama noted, the system collapses, because it was not built to be self-sustaining.

At the end of his talk, Fukuyama emphasized the importance of understanding local culture, context and history in the task of state building. For example, he said, those who run programs aiming to reduce the spread of HIV/AIDS in Africa should consider working with traditional faith healers, as they are an important part of the healthcare system in Africa.

Francis Fukuyama is dean of faculty and the Bernard L. Schwartz Professor of International Political Economy at the Paul H. Nitze School of Advanced International Studies of Johns Hopkins University. His book The End of History and the Last Man was published in 1992 and has appeared in more than 20 foreign editions. It made the bestseller lists in the United States, France, Japan and Chile, and has been awarded the Los Angeles Times' Book Critics Award.

Fukuyama received a BA in classics from Cornell University and a PhD in political science from Harvard University. He was a member of the Political Science Department of the RAND Corporation from 1979-1980, then again from 1983-89, and from 1995-96. In 1981-82 and in 1989 he was a member of the policy planning staff of the U.S. Department of State. In the early 1980s he was also a member of the U.S. delegation to the Egyptian-Israeli talks on Palestinian autonomy. He is a member of the President's Council on Bioethics, the American Political Science Association, the Council on Foreign Relations, the Pacific Council on International Policy, and the Global Business Network.

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Francis Fukuyama is Dean of Faculty and Bernard L. Schwartz Professor of International Political Economy at the Paul H. Nitze School of Advanced International Studies of Johns Hopkins University.

Dr. Fukuyama's book, The End of History and the Last Man, was published by Free Press in 1992 and has appeared in over twenty foreign editions. It made the bestseller lists in the United States, France, Japan, and Chile, and has been awarded the Los Angeles Times' Book Critics Award in the Current Interest category, as well as the Premio Capri for the Italian edition. He is also the author of Trust: The Social Virtues and the Creation of Prosperity (1995), The Great Disruption: Human Nature and the Reconstitution of Social Order (1999), and Our Posthuman Future: Consequences of the Biotechnology Revolution (2002). His book State-Building: Governance and World Order in the 21st Century will be published by Cornell University Press in the spring of 2004.

Dr. Fukuyama has written widely on issues relating to questions concerning democratization and international political economy. He has, in recent years, focused on the role of culture and social capital in modern economic life, and on the social consequences of technological change.

Bechtel Conference Center

Encina Hall, C148
616 Jane Stanford Way
Stanford, CA 94305

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Olivier Nomellini Senior Fellow at the Freeman Spogli Institute for International Studies
Director of the Ford Dorsey Master's in International Policy
Research Affiliate at The Europe Center
Professor by Courtesy, Department of Political Science
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Francis Fukuyama is the Olivier Nomellini Senior Fellow at Stanford University's Freeman Spogli Institute for International Studies (FSI), and a faculty member of FSI's Center on Democracy, Development and the Rule of Law (CDDRL). He is also Director of Stanford's Ford Dorsey Master's in International Policy, and a professor (by courtesy) of Political Science.

Dr. Fukuyama has written widely on issues in development and international politics. His 1992 book, The End of History and the Last Man, has appeared in over twenty foreign editions. His book In the Realm of the Last Man: A Memoir will be published in fall 2026.

Francis Fukuyama received his B.A. from Cornell University in classics, and his Ph.D. from Harvard in Political Science. He was a member of the Political Science Department of the RAND Corporation, and of the Policy Planning Staff of the US Department of State. From 1996-2000 he was Omer L. and Nancy Hirst Professor of Public Policy at the School of Public Policy at George Mason University, and from 2001-2010 he was Bernard L. Schwartz Professor of International Political Economy at the Paul H. Nitze School of Advanced International Studies, Johns Hopkins University. He served as a member of the President’s Council on Bioethics from 2001-2004. He is editor-in-chief of American Purpose, an online journal.

Dr. Fukuyama holds honorary doctorates from Connecticut College, Doane College, Doshisha University (Japan), Kansai University (Japan), Aarhus University (Denmark), the Pardee Rand Graduate School, and Adam Mickiewicz University (Poland). He is a non-resident fellow at the Carnegie Endowment for International Peace. He is a member of the Board of Trustees of the Rand Corporation, the Board of Trustees of Freedom House, and the Board of the Volcker Alliance. He is a fellow of the National Academy for Public Administration, a member of the American Political Science Association, and of the Council on Foreign Relations. He is married to Laura Holmgren and has three children.

(October 2025)

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Francis Fukuyama Bernard L. Schwartz Professor of International Political Economy Speaker Paul H. Nitze School of Advanced International Studies of Johns Hopkins University
Lectures
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In this paper, I draw on the experience of the European Union (EU) to ask under what conditions economic integration furthers democratization. Scholars agree that incentives at the European level have helped democratic transitions in Southern and Eastern Europe. However, there is no agreement on (i) the exact causal mechanisms involved, (ii) the relative size of the effects, (iii) whether this success can be replicated outside or Europe. I address these issues by offering a theory of how integration furthers democratization. I argue economic integration can help citizens resolve the coordination dilemmas they face in holding their rulers accountable. Integration works in two ways: (a) through diffusion of civic culture, it enables citizens to second-guess each other's likely actions in the event of government abuse, (b) through credible conditionality, integration removes the ability of the ruler to lean on some support coalitions while abusing others. An empirical test of the theory strongly confirms that economic integration leads to democracy when its culture-spreading aspect is strongly backed by conditionality. An important aspects of the theory is that it generalizes. The theory and evidence suggest that there are substantial unexploited opportunities for encouraging democracy in Latin America, the Middle East, Africa and Asia.

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Nikolay Vladimirov Marinov Fellow CDDRL
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Professor McMillan presents a paper co-authored by Pablo Zoido in which they descibe secret-police chief Vladimiro Montesinos Torres' effectiveness in undermining Peru's democratic institutions through bribery.

One single television channel's bribe was five times larger than the total of the opposition politicians' bribes. By revealed preference, the strongest check on the government's power was the news media.

Encina Ground Floor Conference Room

John McMillan Professor Graduate School of Business
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