Market reactions to regulations on minerals from the democratic republic of the Congo

Using an event study approach to analyze stock market data from the United States, I investigate how regulations on conflict minerals sourced in the Democratic Republic of the Congo were perceived by investors. I find that for a subset of mining companies, stock returns were abnormally high when regulations in the US became more likely. I also find that returns were higher for communications equipment manufacturing companies when strong regulations in the DRC were announced. I argue that these responses were due to the competitive environments faced by each of these company types. These findings relate to debates surrounding the effects of the conflict mineral regulations. While some critics argue that reporting requirements were tantamount to a ban on minerals from the DRC, I find that stock returns for a subset of companies were sensitive to legislation in the DRC after legislation became law in the US, suggesting that market participants did not expect a complete trade ban on regulated mining and trading activities.     

NEW TERRORISM

New or contemporary international terrorism associated with Islamic fundamentalism and the struggle against Zionism and American interests is a recent phenomenon in Kenya, different to that experienced during the struggle against colonialism. Many explanations have been offered as to why Kenya is being targeted, but have not sufficiently explored its close relationship with the West—especially Britain and the United States, the perceived connection between Israel and the former Presidency of Daniel Arap Moi, domestic forces and government policy. Externally the most important explanations for the increase in regional terrorism are the three waves of global terrorism since 1967, the most recent and significant of which is associated with Osama bin Laden and the Palestinian Intifada. These events reverberated in the region, Sudan and Somalia in particular, but also internally. Both internal and external attribution factors explain the resurgence of new terrorism in Africa. In the case of Kenya, terrorist attacks are associated with the country's internal domestic processes and a naïve approach to broader international issues.     

COURTING THE GLOBAL SOUTH WITH “DUAL-BENEFIT” NONPROLIFERATION ENGAGEMENT

President Barack Obama and an array of other Western leaders continue to assert that the spread of weapons of mass destruction (WMD) to non-state actors is one of most pressing challenges to global security today. Yet, Western efforts to engage governments—particularly governments across the global South—in a practical nonproliferation dialogue have largely yielded disappointing results. This viewpoint examines the need for a new strategy to engage the developing world in nonproliferation programs. It argues that strategies focused strictly on WMD nonproliferation are unsustainable, and ultimately are destined for failure. An alternative “dual-benefit” nonproliferation engagement strategy utilizes the enlightened self-interest of partner governments needed to achieve broad-based buy-in among all partners. In a concluding section, we recommend that the “Group of 8” Global Partnership Against the Spread of Weapons and Materials of Mass Destruction standardize this model of nonproliferation engagement as it sets out to identify and fund WMD nonproliferation capacity-building initiatives beyond the states of the former Soviet Union.     

ACHIEVING THE VISION OF THE NPT

This article assesses the prospects for a strategy of incrementalism to lead to achievement of the core bargain of the Treaty on the Non-Proliferation of Nuclear Weapons: non-nuclear weapon states' nuclear nonproliferation in exchange for nuclear weapon states' nuclear disarmament to the point of “global zero.” Game theory, prospect theory, and liberal international theory are used to evaluate the potential of a strategy of incrementalism. While separately each has insights to offer, it is when all three theoretical approaches are used in tandem that meaningful explanatory gains emerge. The article concludes that incrementalism probably cannot lead to complete nonproliferation and global nuclear zero. Instead, signal events (as described by prospect theory) are needed to “punctuate” incremental processes in negotiations (best explained by liberal international theory) in order to move past hindrances such as international structural constraints (exemplified by game theory) and the conservative risk-taking propensities of state elites (described by prospect theory).     

THE PROLIFERATION SECURITY INITIATIVE

The Asia-Pacific is emerging as a critical region in the fight against the proliferation of weapons of mass destruction. The Proliferation Security Initiative (PSI) is an aggressive global strategy designed to interdict the transport of these weapons and associated technologies. However, some observers have suggested that the Asia-Pacific has given the PSI a less than enthusiastic reception. The authors posit a more sanguine view. They caution against taking such a holistic approach to the region. Asia does not speak with one voice when it comes to security, and opposition to the PSI is not as widespread nor deep-rooted as may have been anticipated. In addition, the PSI's informal structure encourages flexibility, enabling states to participate in certain activities while eschewing others that may be technically or politically untenable.     

ALBANIA'S CHEMICAL WEAPONS CON

In 2003, the Albanian government declared that in late 2002 it had discovered a heretofore unknown cache of 16 tons of chemical weapons. Tirana requested and received assistance from the West in securing and destroying the materials, a task completed in 2007. Albania has been lauded for its responsible handling of the discovery and for being the first nation to complete the destruction of its chemical weapons under the terms of the Chemical Weapons Convention (CWC). This article argues that the Albanian government has always knowingly possessed the weapons, keeping them a secret until a post-September 11, 2001 international focus on weapons of mass destruction made it politically worthwhile for Tirana to declare and destroy them. The likelihood that the governments of the West turned a willful blind eye to this chain of events is troubling for the credibility of the CWC and confidence in nonproliferation measures in general. Finally, the author recommends measures to avoid and address similar situations in the future.     

CALLING FOR ACTION

International Atomic Energy Agency (IAEA) safeguards are under more stress today than at any time in their history. Compliance concerns, a shortage of resources and technology, and growing responsibilities threaten to undermine the effectiveness and credibility of this vital and fundamental pillar of the nonproliferation regime. To address this challenge, the United States recently launched the Next Generation Safeguards Initiative. The goal of this initiative is to ensure the IAEA makes the fullest possible use of its existing authority to prevent the diversion of safeguarded material and to investigate suspicious activities. The initiative will advance state-of-the-art technology, foster the development of a new generation of safeguards experts, and promote technology collaborations and safeguards-conscious infrastructure in states using or pursuing nuclear power. Although it has a domestic focus, the initiative's intent is to catalyze a much broader commitment to international safeguards in partnership with other governments and the IAEA.     

VERIFIABILITY,RELIABILITY, AND NATIONAL SECURITY

The rejection of the Comprehensive Nuclear-Test-Ban Treaty (CTBT) by the U.S. Senate in October 1999 could have been avoided, and the consequences of that vote still loom in the minds of supporters of the treaty. President Barack Obama has embraced the vision of a world free of nuclear weapons, and a key element of the Obama administration's arms control agenda is delivering on U.S. CTBT ratification. In order to secure the two-thirds majority in the Senate necessary to ratify the treaty, senators that remain skeptical of nuclear disarmament must also be convinced that the entry into force of the CTBT is in the national security interest of the United States. This article provides an analysis of the issues surrounding U.S. CTBT ratification divided into three segments—verifiability of the treaty, reliability of the U.S. stockpile, and the treaty's impact on U.S. national security—and concludes that CTBT ratification serves the security objectives of the United States. The CTBT constitutes an integral component of the multilateral nonproliferation architecture designed to prevent the proliferation of nuclear weapons, and it constrains the qualitative development of nuclear weapons, thereby hindering efforts by states of concern to develop advanced nuclear weapons.     

探析美国新军事战略

奥巴马政府2011年以来发布的一系列军事文件,标志着美国新军事战略的形成。文章依据这些文件,结合三年来美军在世界范围内尤其是亚太地区的实际动向,从战略威胁判断、战略指导方针、战略部署调整、作战指导思想和军事力量建设五个方面对新军事战略的内容及实施情况进行了分析。