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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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The Center on Democracy, Development, and the Rule of Law (CDDRL) at Stanford University is pleased to announce its new class of %fellowship1%. This year’s fellows – 26 outstanding civic, political, and economic leaders from 23 countries in transition – have been selected from more than 800 applications. They will be on the Stanford campus for three weeks, from July 28 to August 15, 2008.

Since its inception, the Summer Fellows Program has created a network of more than 90 emerging leaders from 30 transitioning countries including Iraq, Afghanistan, Iran, Pakistan, China, Russia, Nigeria, Kenya, and Rwanda. Draper Hills Summer Fellows are former prime ministers and presidential advisors, senators and attorneys general, journalists and civic activists, academics and members of the international development community. They are united in their dedication to improving or establishing democratic governance, economic growth, and the rule of law in their countries.

The three-week program is led by an interdisciplinary (and all-volunteer) team of leading Stanford University faculty associated with the center. Class sessions, however, are not only led by CDDRL-affiliated faculty and researchers but also by the fellows themselves, who focus discussions on the concrete challenges they face in their ongoing development work. In this way, fellows have the opportunity to learn from one another’s rich experiences in the field of international political and economic development.

One of the selected fellows, an opposition politician from Singapore, was prevented from leaving her home country shortly before the program began.

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“Emerging democracies must demonstrate that they can solve governance problems and meet citizens’ expectations for freedom, justice, a better life, and a fairer society.”

If the big global story of the 1980s and 1990s was the remarkable expansion of democracy, the bad news of this decade is that democracy is slipping into recession. In the two decades following the Portuguese revolution in 1974, the number of democracies tripled (from 40 to 120) and the percentage of the world’s states that are at least electoral democracies more than doubled (to about 60 percent). Since the late 1990s however, there has been little if any net progress in democracy. To be sure, significant new transitions to democracy took place in countries like Mexico, Indonesia, Serbia, Georgia, and Ukraine. But globally, the democratic wave has been neutralized and is now at risk of being overtaken by an authoritarian undertow, which has extinguished democracy in such states as Pakistan, Russia, Nigeria, Venezuela, Bangladesh and Kenya. In fact, two-thirds (15) of all the reversals of democracy (23) since 1974 have taken place just in the last eight years, since the October 1999 military coup in Pakistan.

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Fortunately, breakdowns of democracy do not always persist for long. Pakistan held remarkably vibrant parliamentary elections in February 2008, in which the party of the autocratic, unelected president, Pervez Musharraf, was crushed. Should the legitimate parties succeed in curtailing Musharraf’s power or forcing him from office, a transition back to democracy could be completed. Thailand has made a similar cycle of return, Bangladesh figures to do so this year, and Nepal is trying to do so. The remote mountain kingdom of Bhutan has quickly gone from absolute to constitutional monarchy, and Mauritania, a desert-poor Muslim-majority country, has also made a democratic transition. But many of the new democracies of recent decades are shallow and in trouble. And freedom has been lurching backwards. By the ratings of Freedom House, last year was the worst year for freedom since the end of the Cold War, with 38 countries declining in their levels of political rights and civil liberties and only 10 improving.

Two other negative trends are important to note. One is the implosion of democratic openings in the Arab world. Under pressure from the George W. Bush administration beginning in 2003, several authoritarian Arab regimes liberalized political life and held competitive, multiparty elections. Then, Islamist political forces made dramatic gains in Egypt and Lebanon and won a majority of seats in Palestine and Iraq — and suddenly the Bush Administration got cold feet. Arab democrats who had surfaced and mobilized felt abandoned and betrayed. The liberal secular politician Ayman Nour, who had the temerity to challenge President Hosni Mubarak in Egypt’s first contested presidential election, languishes in prison three years later. The country’s political opening is now frozen, while more than a billion dollars in American aid continues to flow to the regime.

The second negative trend is that authoritarian states have, unfortunately, learned some of the lessons of democratic breakthroughs of the past decade, particularly the color revolutions that brought down neocommunist autocracies in Serbia, Georgia, Ukraine, and Kyrgyzstan. As a result, they have closed political space, swallowed up or arrested independent media, crushed independent political opposition, sabotaged or shut down innovative uses of the Internet, and sought to block or sever external flows of democratic assistance. Vladimir Putin’s Russia (with its sinister cabal of savvy Kremlin “political technologists”) has blazed the trail in this authoritarian pushback, but China, Belarus, Iran, Azerbaijan, Uzbekistan, and other “post” communist and Middle Eastern dictatorships have followed suit. To make matters worse, China and Russia have drawn together with the Central Asian dictatorships in a new club, the Shanghai Cooperation Organization, to formalize and advance their authoritarian pushback.

To renew democratic progress in the world, we must understand the reasons for the democratic recession. Authoritarian learning is one. Another has been the inconsistent and often unilateralist policies of the United States. Although President Bush has done much to put democracy promotion at the center of American foreign policy and has substantially increased funding for U.S. democracy assistance programs, he has also alienated potential allies in the effort to advance democracy globally by associating democracy promotion with the use of (largely unilateral) force, as in Iraq; by promoting democracy with a tone that was often self-righteous and a style that was too often poorly coordinated with our democratic allies; and then by failing to sustain pressure for democratic change when the going got rough in the Middle East.

Structural factors have also driven the recession of democracy. One has had to do with the global political economy. As the price of oil has gone up, the prospects for democracy have receded. Russia, Nigeria, and Venezuela have all seen their democracies slip back into authoritarianism as oil prices have skyrocketed, sending huge new infusions of discretionary revenue into the hands of autocratic leaders, which they have used to buy off opponents and strengthen their security apparatuses. In Iran and Azerbaijan, surging oil revenues have shored up authoritarian states that once seemed vulnerable.

A second and more pervasive factor has had to do with the performance of the new democracies. Some new democracies are holding their own (like Mali) and even making progress (like Brazil and Indonesia) in the face of enormous accumulated problems and challenges. But the general reality, even in these countries, is that democracy often does not work for average citizens. Rather, it is blighted by multiple forms of bad governance: abusive police and security forces, domineering local oligarchies, inept and indifferent state bureaucracies, corrupt and pliant judiciaries, and ruling elites who routinely shred the rule of law in the quest to get rich in office. As a result, citizens grow alienated from democracy and become susceptible to the patronage crumbs of corrupt political bosses and the demagogic appeals of authoritarian populists like Putin in Russia and Hugo Chávez in Venezuela.

“If democracies do not work better to contain crime and corruption, generate economic growth, relieve economic inequality, and secure freedom and a rule of law, people will eventually lose faith and turn to authoritarian alternatives.”Before democracy can spread further, it must take deeper root where it has already sprouted. Emerging democracies must demonstrate that they can solve governance problems and meet citizens’ expectations for freedom, justice, a better life, and a fairer society. If democracies do not work better to contain crime and corruption, generate economic growth, relieve economic inequality, and secure freedom and a rule of law, people will eventually lose faith and turn to authoritarian alternatives. Struggling democracies must be consolidated, so that all levels of society become enduringly committed to democracy as the best form of government and to the country’s constitutional norms and restraints. Western governments and international aid donors can assist in this process by making most foreign aid contingent on key principles of good governance: a free press, an independent judiciary, and vigorous, independently led institutions to control corruption. International donors also need to expand their efforts to assist these institutions of horizontal accountability as well as initiatives in civil society that monitor the conduct of government and press for institutional reform.

The only way to stem the democratic recession is to show that democracy really is the best form of government — that it can not only provide political freedom but also improve social justice and human welfare.

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Just look at the number of construction cranes around you and you’ll immediately know that you have landed in a petrostate. What’s special about the Caspian oil giant Kazakhstan is the fact that there are two types of cranes—the idle ones and the busy ones. This becomes nowhere more apparent than in the country’s new capital Astana. The idle cranes stand on private construction sites and the busy ones on public construction sites.

Kazakhstan is probably one of the countries worst hit by the global credit crunch. After years of aggressive borrowing on international markets Kazakh banks have had to pull the plug on many domestic projects after their own cash stream evaporated and it became clear that they would need to settle most of the $14 billion in scheduled principal repayments on external debt this year. The International Monetary Fund (IMF) had been warning about the unsustainability of the ever growing debt ratio for the past two years, but to little avail. Growth rates above 9 percent for the past seven years and great future prospects thanks to ever expanding oil production earned Kazakhstan a credit rating of “stable” from Standard & Poor's rating agency. Now, the bubble burst, the S&P rating turned “negative”, and the private cranes stopped.

The busy cranes—in contrast—run 24/7. No effort is spared to make sure that the fancy new government building, the pavement, the flower-adorned square will be finished in time for the highlight of the year: the birthday of both the President Nursultan Nazarbayev and the capital on July 6 (their 68th and 10th, respectively). This simultaneity is no coincident. Astana is largely Nazarbayev’s creation. It was him who anointed the city in the middle-of-nowhere the new capital of the young Republic, who chose its no-nonsense name (“Astana” literally means “capital”), and who caused its population to triple. The upcoming celebrations almost turned into a Nursultan & Nursultan party. If Mr. Sat Tokpakbaye and his fellow parliamentarians had gotten their way, the capital would yet again have undergone a name change—this time to honor its creator more explicitly by endowing it with the President’s first name (there is already an oil field named after him). But out in his modesty, the President declined. With his proposal Mr. Tokpakbayev, achieved the near-impossible: to distinguish himself by loyalty in a Parliament whose members all come from the same Nur-Otan party.

The idle and the busy cranes both stand for different answers to petrostates’ most burning policy question—how to best use the ballooning governmental revenues from the thriving oil and gas sector. Save or spend?—is the 500 billion dollar question (to take the value OPEC earned from net oil export in 2007). Kazakhstan, like 23 other oil and gas producing countries, followed the IMF’s advice and established an oil fund with the goal of sterilizing, stabilizing, and saving governmental oil revenues. The so-called National Fund of the Republic of Kazakhstan (NFRK) has accumulated more than $26 billion in the eight years since inception, and the total value of all oil-related funds around the world is estimated to surpass the astronomical sum of $2.300 trillion. While the theoretical logic underlying the creation of oil funds is compelling, their actual track record in achieving macroeconomic stability and fair intergenerational income distribution is more mixed. As a number of recent studies demonstrate (e.g. Shabsigh and Ilahi 2007; Usui 2007), oil funds are no substitute for the strengthening of all institutions involved in the revenue management and budgeting process. Strong expenditure and deficit control mechanisms are indispensable because such richly endowed funds make it easier for the government to borrow money on international financial markets whereby the fund acts--explicitly or implicitly—as a collateral, which in turn undermines the fiscal prudence that the fund was meant to ensure in the first place. More indirectly, the accumulation of large sums of money creates a moral hazard problem also with respect to private sector spending. The temptation is huge for private (and state-owned) companies to take overly risky decisions in the hope that the oil fund will bail them out in case their speculations turn sour. When oil fund assets correspond to more than a quarter of the country’s GDP—as it is the case in Kazakhstan—this temptation is hard to resist. Recent demands by Kazakh banks to dip into the NFRK for alleviating their liquidity problems provide just one case in point, and the national oil company KazMunaiGas may soon follow suit.

However, spending, rather than saving, does not provide a panacea either and is fraught with its very own set of problems.

First, governments of oil rich countries faces a challenge similar to that of rich parents who want to raise their children to become productive members of society. As the US billionaire investor Warren Buffet was once quoted saying: “a very rich person should leave his kids enough to do anything but not enough to do nothing.” Political scientists refer to this concern as the risk of a growing “rentier mentality” (Beblawi 1990), i.e. the tendency of citizens in petrostates to expect the government to solve all their problems rather than relying on their own initiative. The resulting societal dependency may actually suit governments very well since who will bite the hand that feeds him/her? Innovation and entrepreneurship are undermined and undemocratic structures perpetuated. Second, pro-cyclical spending of highly volatile oil revenues results in a series of negative macroeconomic consequences ranging from soaring inflation, exchange rate appreciation, and a further accentuation of the crowding-out of private investments. Finally, a massive explosion in government revenues (e.g. the newly introduced oil export tariff alone is expected to add another $1.5 billion per year) makes it close to impossible for the governmental apparatus to identify and supervise a sufficient number of new spending projects with a satisfactory social return. The floodgates are wide open to white elephant projects, mismanagement, and corruption.

The Kazakh government is acutely aware of this dilemma. Like all other oil producing nations around the world, Kazakhstan is desperately trying to navigate safely between Scylla (saving) and Charybdis (saving). As a possible solution to this dilemma a number of scholars and activists are now proposing the direct distribution of oil revenues to all citizens (and thus the ultimate owners of a country’s natural resource endowment), thereby empowering them to decide for themselves how they want to spend the monetized share of their subsoil assets.

The only real world examples of direct distribution arrangements can be found in the US state Alaska and the Canadian province Alberta. This option has also been proposed for Nigeria (Sala-i-Martin and Subramanian 2003), Iraq (Birdsall and Subramanian 2003; Palley 2003; Sandbu 2006), and Kazakhstan (Makmutova 2008).

While direct distribution arrangements may mitigate some of the problems highlighted above, they have to be greeted with some degree of caution. High levels of corruption and patronage-driven politics not only undermine the effectiveness of top-down development projects but can also jeopardize the fair distribution of oil revenues. Furthermore, even if every entitled citizen does receive his or her share of oil revenues, the long-term impact on a country’s economic development may be small or possibly even negative because of increased inflation and spending on unproductive goods and services imported from abroad. These considerations are not of particular relevance in the two existing examples of direct distribution of oil revenues. Alaska and Alberta both enjoy a relatively good record in fighting corruption and in observing the rule of law. They are both part of a larger, highly developed economy which helps to mitigate inflationary pressure and the risk that citizens will spend most of their additional income on goods imported from abroad. But the picture looks very different in most other oil dependent countries.

One possibility for addressing the risk that directly distributed oil revenues will be spent unproductively is to combine the direct distribution scheme with certain conditions that are intended to encourage citizens to invest in ways that boost their own productivity. This approach has so far not been discussed in academic or policy circles, but the conditional distribution of oil revenues (CDOR) offers the potentials of marrying the merits of two programs that are generally considered to be successful, namely the direct distribution of oil revenues and conditional cash transfer programs employed throughout the world to fight poverty in a more targeted and bottom-up fashion. A whole range of different design options are compatible with this overarching concept. CDOR schemes do not have to adopt the exclusive pro-poor focus of conditional cash transfer programs. In fact, both in Alaska and in Alberta oil revenues are deliberately distributed in an income-blind manner, staying true to the logic that citizens are entitled to a share of oil revenues in their capacity as the ultimate owners of these resources. Also in contrast to most existing conditional cash transfer programs (e.g. Oportunidades in Mexico), the conditions attached to the direct distribution of oil revenues would probably be primarily linked to the use of these revenues rather than some pre-qualifying behavior (e.g. taking infants to regular health check-ups). Eligible spending areas would be selected based on their potential to maximize productivity gains and could include education, health, energy efficiency, start-up capital for small enterprises. Additional design options worth examining include the saving and pooling of CDOR money, which would allow citizens to realize a medium to larger scale common project within the approved spending priorities. For instance, the most promising strategy for greater productivity in Kazakhstan’s agricultural sector lies in the creation of larger units (co-operatives, publicly traded agricultural complexes), and specific incentives may therefore be built into the CDOR scheme to promote such a move away from subsistence farming.

The conditional distribution of oil revenues under any of these design options presents a promising discussion platform for a new initiative the World Bank announced in April 2008—tentatively labeled EITI++. This initiative is meant to help resource rich countries to “manage and transform their natural resource wealth into long-term economic growth that spreads the benefits more fairly among their people”, by focusing not only on the transfer of oil revenues from companies to governments (as does the “original” Extractive Industry Transparency Initiative (EITI) of 2002) but also on the generation, management, and distribution of oil revenues. The transparency mechanism of double disclosure pioneered by EITI could thereby be used to ensure that all citizens receive the share of oil revenues they are entitled to. Transparency could be further enhanced by tools currently developed by the Google Foundation’s Inform & Empower program.

The implementation of the CDOR scheme could build directly upon the experience gained under conditional cash transfer schemes, including the scientific testing of its effectiveness in a randomized experiment setting. The bottom-up development philosophy underlying the conditional distribution of oil revenues ties nicely in with other approaches to strengthen the consumers of public goods and services that have gained currency over the past decade (e.g. vouchers for health and education services).

With this sketch of a conditional distribution of oil revenues scheme in my pocket (and and unconditional love for the kicking baby in my belly) I navigated my way through yet another construction site to see Mr. Kuandyk Bishimbayev, one of Kazakhstan’s young and rising stars (now the head of the so-called “Division of Socio-Economic Monitoring” within the Presidential Administration). During our meeting I got the impression that my enthusiasm for this novel approach to oil revenue management proved contagious, and since my return to Stanford I have rolled out my networking machinery to spread the virus among my academic colleagues. The time is certainly ripe. With oil prices set to remain high for the foreseeable future Kazakhstan and all other petrostates cannot afford to miss this historic opportunity to promote the diversification of their economies and to create the foundation for a future where oil may lose its dominant position to alternative sources of energy.

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In a 1999 article profiling six of “China’s bright young stars,” the New York Times described Junning Liu as “one of China’s most influential liberal political thinkers.” Today, sitting in a delegate-style conference room, Liu wants to add a point to Thomas C. Heller’s discussion of risk assessment and the role of law in doing business. If assets are not protected by legal institutions, Heller argues, foreign direct investment becomes a riskier prospect and economic growth suffers as a result. Except, he points out, in China. The legal system doesn’t manage risk but China is growing extremely fast.

“There are more businesspeople in Chinese prisons than dissidents,” Liu says evenly, with a suggestion of a smile. “So you see … Chinese people mind the situation more than you [the foreign investors] do.”

Liu is one of 26 change-makers from developing democracies who were selected from more than 800 applicants to take part in this year’s Stanford Summer Fellows on Democracy and Development Program, which is offered by FSI’s Center on Democracy, Development, and the Rule of Law (CDDRL). His colleagues in the program are presidential advisors and attorneys general, journalists and civic activists, academics and members of the international development community. They traveled to Stanford from 21 countries in transition, including Iraq, Afghanistan, Iran, Pakistan, China, Russia, Egypt, and Nigeria. And like their academic curriculum during the three-week program, which examines linkages among democracy, economic development, and the rule of law, their professional experiences and fields of study center on these three areas, assuring that each fellow brings a seasoned perspective to the program’s discussions.

“For most of the fellows … democracy is seen not as a luxury or an option, but rather as a necessity for achieving broad-based development and a genuine rule of law.”The curriculum for the first week focused on democracy, with leading comparative democracy scholars Michael A. McFaul, Larry Diamond, and Kathryn Stoner team-teaching the morning seminars. Using selected articles and book chapters as starting points for discussion, McFaul, Diamond, and Stoner-Weiss began the weeklong democracy module with an examination of what democracy is and what definition or definitions might apply to distinguish electoral democracy, liberal democracy, and competitive authoritarianism. Another question discussed was whether there was such a thing as Islamic democracy, Asian democracy, Russian democracy, or American democracy.

As the week progressed, fellows and faculty discussed institutions of democracy, electoral systems, horizontal accountability, development of civil society, democratic transitions, and global trends in democracy promotion. Fellows led sessions themselves in the afternoons, comparing experiences and sharing insights into how well political parties and parliaments constrained executive power and how civil society organizations contributed to democratic consolidation and/or democratic transitions.

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In addition to discussing their personal experiences with democracy promotion, fellows met with a broad range of practitioners, including USAID deputy director Maria Rendon, IREX president Mark Pomar, MoveOn.org founder Joan Blades, Freedom House chairman and International Center on Nonviolent Conflict founding chair Peter Ackerman, International Center on Nonviolent Conflict president Jack DuVall, Otpor cofounder Ivan Marovic, A Force More Powerful documentary filmmaker Steve York, and Advocacy Institute cofounder David Cohen. Guest speakers talked about their fieldwork, offered practical advice, and answered fellows’ questions. This component grounded the classroom discussions in a practical context. “It was important for our visiting fellows to interact with American practitioners, both to learn about innovative techniques for improving democracy practices but also to hear about frustrations and failures that Americans also face in working to make democracy and democracy promotion work more effectively,” explains McFaul. “We Americans do not have all the answers and have much to learn from interaction with those in the trenches working to improve governance in their countries.”

The following two weeks would focus in turn on development and the rule of law, but democracy continued to serve as the intellectual lynchpin of the program, with economies and legal institutions analyzed vis-à-vis their relationship to the development of democratic systems.

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“For most of the fellows, who come from national circumstances which once suffered (or still do suffer) prolonged authoritarian rule, democracy is seen not as a luxury or an option, but rather as a necessity for achieving broad-based development and a genuine rule of law,” says Diamond. “Unless people have the ability to turn bad rulers out of office, and to hold rulers accountable in between elections through a free press and civil society, countries stand a poor prospect of controlling corruption, protecting human rights, correcting policy mistakes, and ensuring that government is responsive to the needs and aspirations of the people.”

Among the fellows, this idea of democracy as a “necessity,” a fundamental platform from which to pursue economic and legal reforms, was widely recognized. “It appears that like-minded people were selected to participate,” notes Sani Aliyu, a broadcast journalist and interfaith mediator from Nigeria. “Each of us is interested in the development of humanity, and it appears that we have accepted that democracy seems to be the vehicle through which human development can be accessed reasonably. We share this."

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As the program’s curriculum shifted to development issues for week two, the all-volunteer assemblage of Stanford faculty expanded to include professors and professional research staff from Stanford Law School, the Graduate School of Business, and the Department of Economics. Avner Greif established the context for the development module with an overview of institutional foundations of politics and markets, followed by discussions of growth restructuring in transitional economies with GSB professor Peter B. Henry and Stanford Center for International Development deputy director Nicholas Hope. Terry L. Karl analyzed corruption in developing economies and the “resource curse,” and Carl Gershman, president of the National Endowment for Democracy, joined Diamond, McFaul, and Karl in discussing how the spectrum of democratic to autocratic systems of government affected a country’s development.

Another salient component of the development module centered on the role of media in promoting democracy and development. The field trip to San Francisco, which included a session with KQED Forum host Michael Krasny, a briefing on international reporting at the San Francisco Chronicle, and a discussion of media strategies at the Family Violence Prevention Fund, provided particularly rich practical content, as did the fellows’ roundtable on maintaining media independence in semi-autocracies.

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At KQED Radio, Cuban-born Raul Ramirez, the executive producer of Forum, talked with fellows about the concept of “civic journalism” and KQED’s goal of creating space for civic discussion. Forum host Michael Krasny and Ramirez, who runs workshops on civic journalism at the European Journalism Centre in Maastricht, then fielded a barrage of questions from fellows: How does KQED maintain independence from government and commercial funding? If Rush Limbaugh attacked you, would you respond in your program? Is it possible to have neutral, nonpartisan public radio? How do you manage to deal with political issues, particularly when you start to affect the power structures with your programming? Are there any words, like “terrorist,” that you are banned from using on the air?

“Discussion of this kind is of great importance to both media professionals and the audience,” notes Anna Sevortian, a journalist and research coordinator at the Center for Development of Democracy and Human Rights in Moscow. “It helps you to clarify how a particular newspaper, TV, or radio station is dealing with matters of public policy or of political controversy.”

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The third week’s curriculum layered rule-of-law issues onto the conceptual modules of democracy promotion and economic development, drawing on the teaching caliber of constitutional scholar and Stanford president emeritus Gerhard Casper, Erik Jensen, Helen Stacy, Allen S. Weiner, Tom Heller, and Richard Burt. After establishing a theoretical framework through discussions of the role of law, constitutionalism, human rights, transitional justice, the role of law in business and economic development, and strategies for promoting the rule of law, fellows compared experiences defending human rights, met with American immigration and civil liberties lawyers, and had a session with Circuit Court Judge Pamela Rymer on judging in federal courts. Field trips to Silicon Valley-based Google and eBay again put into practical context the free market, rule-of-law components discussed theoretically in the classroom.

Despite the intellectual rigor of the coursework and discussion, and the exploration of practical applicability with guest speakers and field trips, the Stanford Summer Fellows on Democracy and Development Program was designed as much to stimulate connections among field practitioners and to provide a forum in which to exchange ideas. Weekend dinners, stretching late into the evening at the homes of Diamond and Stoner-Weiss, helped to gel the collegiality developing in the classroom. Led by Violet Gonda, a Zimbabwean journalist living in exile in London, and Talan Aouny, director of a major Iraqi civil society development program, the fellows organized a multicultural party, a potluck-style affair in which guests made a dish from their home country to share with their colleagues and friends of the program.

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Program directors McFaul and Stoner-Weiss hope this social network will endure well into the weeks and months after the program. “We envision the creation of an international network of emerging political and civic leaders in countries in transition who can share experiences and solutions to the very similar problems they and their countries face,” says Stoner-Weiss. To ensure they fulfill their goal of building a small but robust global network of civic activist and policymakers in developing countries, CDDRL recently launched its Summer Fellows Program Alumni Newsletter. The newsletter is based on an interactive website that will allow the center to strengthen its network of leaders and civic activists and facilitate more groundbreaking policy analysis across academic fields and geographic regions, the results of which will be promptly fed back to its activist alumni in a virtual loop of scholarship and policymaking.

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Earlier this year, CDDRL also moved to professionalize the Stanford Summer Fellows on Democracy and Development Program by hiring a program manager, Laura Cosovanu, an attorney with experience in foundations and other nonprofit organizations, to oversee its advancement. The logistical acrobatics Cosovanu performed throughout the three weeks quickly became the object of good-natured teasing for some of the fellows, all of whom seemed to realize and appreciate the work required to get fellows and faculty into the same room.

As Kenza Aqertit, a National Democratic Institute for International Affairs field representative from Morocco, told program faculty at the graduation dinner, “You’ve done a great job and you should be proud of all your efforts. Plus you’ve won so many friends in so many autocracies and semi-autocracies.

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Larry Diamond—Hoover Institution senior fellow, CDDRL democracy program coordinator, and former senior advisor to the Coalition Provisional Authority in Iraq—has just discussed causes and consequences of corruption and international efforts to control it with a room full of visiting fellows. This is not just a group of learned political scientists, however, and Diamond does not hesitate to follow a sophisticated piece of analysis with a hard-nosed, view-from-the-ground assessment. He has, for instance, just told the fellows what he thinks of a major development institution. (“I think the World Bank needs to be ripped apart and fundamentally restructured.”) He has extended the concept of a “resource curse” to include not just oil but also international assistance. (“In many countries, aid is like oil; it’s used for outside rents.”) He has recommended that institutions learn the “dance of conditionality” and exercise selectivity, choosing countries to invest in based on demonstrated performance. But the 27 fellows around the table know a thing or two about corruption. Most of them face it in their home countries; many of them have made fighting it part of their work. And almost all of their hands go up to tell Diamond that there is something he missed, or something he got right.

This year’s 27 Stanford Summer Fellows on Democracy and Development—outstanding civic, political, and economic leaders from developing democracies—were selected from more than 500 applicants to take part in the program, which FSI’s Center on Democracy, Development, and the Rule of Law (CDDRL) hosted July 30–August 17, 2007. They traveled to Stanford from 22 countries in transition, including Iraq, Afghanistan, Iran, Pakistan, China, Russia, Egypt, Nigeria, Kenya, and the Democratic Republic of the Congo. And like their academic curriculum during the three-week program, which examines linkages among democracy, economic development, and the rule of law, their professional experiences and fields of study center on these three areas, assuring that each fellow brings a seasoned perspective to the program’s discussions.

“Should the United States promote democracy? Can the United States promote democracy?” The curriculum for the first week focused on defining the concepts of “democracy,” “development,” and the “rule of law” and identifying institutions that support democratic and market development. Using selected articles and book chapters as starting points for discussion, CDDRL Director Michael A. McFaul and Marc Plattner, National Endowment for Democracy vice-president for research and studies, began the weeklong module with an examination of what democracy is and what definition or definitions might apply to distinguish electoral democracy, liberal democracy, and competitive authoritarianism. Another question discussed was whether there was such a thing as Islamic democracy, Asian democracy, Russian democracy, or American democracy.

Faculty including Diamond, CDDRL associate director for research Kathryn Stoner, Stanford president emeritus and constitutional law scholar Gerhard Casper, Stanford Law School lecturer Erik Jensen, and economists Avner Greif and Seema Jayachandran “team-taught” individual sessions as the week progressed. Fellows and faculty discussed how to define and measure development, the role and rule of law in societies, how legal systems affect democratic development, constitutionalism, electoral systems, parliamentary versus presidential systems, horizontal accountability, and market development. Fellows worked in groups to discuss and present their conclusions about an issue to their colleagues, comparing experiences and sharing insights into how well political parties and parliaments constrained executive power and how civil society organizations contributed to democratic consolidation.

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In addition to discussing their personal experiences with democracy promotion, economic development, and legal reform, fellows met with a broad range of practitioners, including USAID deputy director Maria Rendon Labadan, National Endowment for Democracy president Carl Gershman, U.S. Court of Appeals Ninth Circuit Judge Pamela Rymer, IREX president Mark Pomar, Freedom House chairman and International Center on Nonviolent Conflict founding chair Peter Ackerman, International Center on Nonviolent Conflict president Jack DuVall, The Orange Revolution documentary filmmaker Steve York, and government affairs attorney Patrick Shannon. Guest speakers talked about their fieldwork, offered practical advice, and answered fellows’ questions.

This component grounded the classroom discussions in a practical context. “It was important for our visiting fellows to interact with American practitioners, both to learn about innovative techniques for improving democracy practices but also to hear about frustrations and failures that Americans also face in working to make democracy and democracy promotion work more effectively,” explained McFaul. “We Americans do not have all the answers and have much to learn from interaction with those in the trenches working to improve governance in their countries.”

As the program’s curriculum shifted to democratic and economic transitions for week two, McFaul and Stoner-Weiss balanced the structure of the classroom with guest lecturers, a documentary film premiere, and field trips to Google headquarters and San Francisco media organizations to put into practical context the components discussed theoretically in the classroom. The field trip to San Francisco included a session with KQED Forum executive producer Raul Ramirez, a briefing with the editorial board at the San Francisco Chronicle, and a discussion of links between violence against women and children and poverty, health, and security at the Family Violence Prevention Fund.

“We are building an extraordinary community of democratic activists and officials who have a deeper understanding of the types of institutions that secure freedom, control corruption, and foster sustainable development.” The third week’s curriculum looked at international and domestic efforts to promote democracy, development, and the rule of law. This integrative module drew on the teaching caliber of Stephen D. Krasner (FSI senior fellow), Peter B. Henry (Graduate School of Business), Allen S. Weiner and Helen Stacy (Stanford Law School), and Nicholas Hope (Stanford Center for International Development) as well as Casper, Jensen, McFaul, and Stoner-Weiss. Through case studies and, in particular, comparison of successes and failures in the fellows’ own experiences, faculty and fellows explored and assessed international strategies for promoting rule of law, reconciliation of past human rights abuses, democracy, and good governance. The discussions, occasionally contentious, circled in on a set of central questions: Should the United States promote democracy? Can the United States promote democracy? What are the links between democracy and increasing the rule of law, controlling corruption, rebuilding societies shattered by massive human rights violations, and promoting good governance?

Despite the intellectual rigor of the coursework and discussion, and the exploration of practical applicability with guest speakers and field trips, the Stanford Summer Fellows on Democracy and Development Program was designed as much to stimulate connections among field practitioners and to provide a forum in which to exchange ideas. “Through the summer fellows program, we are building an extraordinary community of democratic activists and officials who have a deeper understanding of the types of institutions that secure freedom, control corruption, and foster sustainable development, and who are keeping in touch with us and with one another,” said Diamond. “When I meet our ‘alumni’ fellows in subsequent years, they speak movingly of the bonds they formed and the insights they gained in these three fast-paced weeks.”

To ensure they fulfill their goal of building a small but robust global network of civic activist and policymakers in developing countries, CDDRL launched a Summer Fellows Program Alumni Newsletter. The newsletter is based on an interactive website that will allow the center to strengthen its network of leaders and civic activists and facilitate more groundbreaking policy analysis across academic fields and geographic regions, the results of which will be promptly fed back to its activist alumni in a virtual loop of scholarship and policymaking. “We envision the creation of an international network of emerging political and civic leaders in countries in transition,” said Stoner-Weiss, “who can share experiences and solutions to the very similar problems they and their countries face.”

 

SSFDD ALUMNI FOCUS: VIOLET GONDA
A producer and pre s ent er for SW Radio Africa (London), Violet Gonda was a Stanford Summer Fellow on Democracy and Development in 2006, the same year her station was named the International Station of the Year by the Association of International Broadcasters. "CDDRL brings together a cross-section of people from different backgrounds, different careers," Gonda said. "Politicians, lawyers, activists ... all in the same room. It is an amazing group of people."

Banned from returning to her home country because of her journalism work at the radio station-"we are welcome in Zimbabwe but only in the prisons"-Gonda "literally eat[s], breathe[s], and dream[s] Zimbabwe." The summer fellows program, she said, gave her a broad perspective on what's going on in other countries; "it is so intensive ... you can really compare and contrast democracy on every continent." One thing Gonda found is that "when you look at these leaders, you'd think they all were born of the same mother ... and the ways people respond to these crises are the same."

Gonda had such a positive experience at Stanford that she decided to apply for, and was accepted to, the prestigious John S. Knight Fellowships for journalists for the academic year 2007-08. "It's always been Zimbabwe, Zimbabwe, Zimbabwe," she said. "Now I finally have time to sit down and read a book, write an article, go to seminars, sharpen my skills." She is not exactly sitting still however. In December she gave a presentation on Zimbabwe's political situation for the Center on African Studies, and will also be discussing Zimbabwe at the Palo Alto Rotary Club and the Bechtel International Center. "Media in America does not have a lot of international news, particularly on Africa," Gonda said. "So it's a good opportunity to talk about Zimbabwe, and I will take advantage of it."

She is also working on developing new content for SW Radio Africa and plans to interview FSI scholars she met through the summer fellows program so "We are building an extraordinary community of democratic activists and officials who have a deeper understanding of the types of institutions that secure freedom, control corruption, and foster sustainable development." that Zimbabweans can understand what is going on in different countries. Close contact with program alumni means that she has friends and colleagues in other parts of that world who can be called on for their perspective on situations. While SW Radio Africa's mission is "to record and to expose" developments in Zimbabwe, Gonda explained, "it's good to compare, to show people we are not alone, that this is happening elsewhere."

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Larry Diamond is a senior fellow at the Hoover Institution, a professor of political science, and sociology by courtesy, and coordinator of the Democracy Program at CDDRL. He is a specialist on democratic development and regime change and on U.S. foreign policy affecting democracy abroad. His research examines comparative trends in the quality and stability of democracy in developing countries and post-communist states, and public opinion in new democracies. As a core member of the scientific team of the East Asia Barometer, he is investigating attitudes and values toward democracy in eight East Asian political systems. His research and policy analysis also address the relationship between democracy, governance and development in poor countries, particularly in Africa. In the past two years he has served as consultant to the U.S. Agency for International Development and was a contributing author of its report, "Foreign Aid in the National Interest." He is also co-director of the International Forum for Democratic Studies of the National Endowment for Democracy, and founding co-editor of the Journal of Democracy.

During the first three months of 2004, Diamond served as a senior adviser on governance to the Coalition Provisional Authority in Iraq. He is now lecturing and writing about the challenges of post-conflict state-building in Iraq and other countries. He also recently served with a group of Europeans and Americans who produced a report on "Transatlantic Strategy for Democracy and Human Development in the Broader Middle East," published by the German Marshall Fund of the United States.

Diamond has written extensively on the factors that facilitate and obstruct democracy in developing countries and on problems of democracy, development, and corruption, particularly in Africa. He is the author of Developing Democracy: Toward Consolidation, Promoting Democracy in the 1990s, and Class, Ethnicity, and Democracy in Nigeria. His recent edited books include Islam and Democracy in the Middle East (with Marc F. Plattner and Daniel Brumberg), Political Parties and Democracy (with Richard Gunther), The Global Resurgence of Democracy and The Global Divergence of Democracies (both with Marc F. Plattner), Consolidating Democracy in Korea (with Byung-Kook Kim), and Institutional Reform and Democratic Consolidation in Korea (with Doh Shin). Among his other 20 edited books are the series Democracy in Developing Countries (with Juan Linz and Seymour Martin Lipset); The Self-Restraining State: Power and Accountability in New Democracies (with Andreas Schedler and Marc F. Plattner); and Democratization in Africa and Democracy in East Asia (both with Marc F. Plattner).

Diamond has lectured in more than 20 countries on problems of democratic development. He taught sociology at Vanderbilt University from 1980 to 1985 before joining Stanford and the Hoover Institution. He was a visiting scholar at the Academia Sinica (Taiwan, 1997-98) and a Fulbright Visiting Lecturer at Bayero University (Kano, Nigeria, 1982-83). He received all of his degrees from Stanford University, including a BA in 1974, an MA in 1978, and a PhD in sociology in 1980.

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Larry Diamond is the William L. Clayton Senior Fellow at the Hoover Institution, the Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies (FSI), and a Bass University Fellow in Undergraduate Education at Stanford University. He is also professor by courtesy of Political Science and Sociology at Stanford, where he lectures and teaches courses on democracy (including an online course on EdX). At the Hoover Institution, he co-leads the Project on Taiwan in the Indo-Pacific Region and participates in the Project on the U.S., China, and the World. At FSI, he is among the core faculty of the Center on Democracy, Development and the Rule of Law, which he directed for six and a half years. He leads FSI’s Israel Studies Program and is a member of the Program on Arab Reform and Development. He also co-leads the Global Digital Policy Incubator, based at FSI’s Cyber Policy Center. He served for 32 years as founding co-editor of the Journal of Democracy.

Diamond’s research focuses on global trends affecting freedom and democracy and on U.S. and international policies to defend and advance democracy. His book, Ill Winds: Saving Democracy from Russian Rage, Chinese Ambition, and American Complacency, analyzes the challenges confronting liberal democracy in the United States and around the world at this potential “hinge in history,” and offers an agenda for strengthening and defending democracy at home and abroad.  A paperback edition with a new preface was released by Penguin in April 2020. His other books include: In Search of Democracy (2016), The Spirit of Democracy (2008), Developing Democracy: Toward Consolidation (1999), Promoting Democracy in the 1990s (1995), and Class, Ethnicity, and Democracy in Nigeria (1989). He has edited or coedited more than fifty books, including China’s Influence and American Interests (2019, with Orville Schell), Silicon Triangle: The United States, China, Taiwan the Global Semiconductor Security (2023, with James O. Ellis Jr. and Orville Schell), and The Troubling State of India’s Democracy (2024, with Sumit Ganguly and Dinsha Mistree).

During 2002–03, Diamond served as a consultant to the US Agency for International Development (USAID) and was a contributing author of its report, Foreign Aid in the National Interest. He has advised and lectured to universities and think tanks around the world, and to the World Bank, the United Nations, the State Department, and other organizations dealing with governance and development. During the first three months of 2004, Diamond served as a senior adviser on governance to the Coalition Provisional Authority in Baghdad. His 2005 book, Squandered Victory: The American Occupation and the Bungled Effort to Bring Democracy to Iraq, was one of the first books to critically analyze America's postwar engagement in Iraq.

Among Diamond’s other edited books are Democracy in Decline?; Democratization and Authoritarianism in the Arab WorldWill China Democratize?; and Liberation Technology: Social Media and the Struggle for Democracy, all edited with Marc F. Plattner; and Politics and Culture in Contemporary Iran, with Abbas Milani. With Juan J. Linz and Seymour Martin Lipset, he edited the series, Democracy in Developing Countries, which helped to shape a new generation of comparative study of democratic development.

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Former Director of the Center on Democracy, Development and the Rule of Law
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Hicham Ben Abdallah received his B.A. in Politics in 1985 from Princeton University, and his M.A. in Political Science from Stanford in 1997. His interest is in the politics of the transition from authoritarianism to democracy.

He has lectured in numerous universities and think tanks in North America and Europe. His work for the advancement of peace and conflict resolution has brought him to Kosovo as a special Assistant to Bernard Kouchner, and to Nigeria and Palestine as an election observer with the Carter Center. He has published in journals such Le Monde,  Le Monde Diplomatique,Pouvoirs, Le Debat, The Journal of Democracy, The New York Times, El Pais, and El Quds.

In 2010 he has founded the Moulay Hicham Foundation which conducts social science research on the MENA region. He is also an entrepreneur with interests in agriculture, real estate, and renewable energies. His company, Al Tayyar Energy, has a number of clean energy projects in Asia and Europe. 

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