FSI convened its second annual international conference on November 16, bringing scholars from across the university together with visiting security experts, policymakers, members of the international community, and practitioners in the fields of political science, economics, law, business, and medicine. The theme of this year's conference was "A World at Risk," juxtaposing debate and discussion on hard security issues such as nuclear proliferation, terrorism, and failed states with problems presented by "softer" security threats such as pandemic diseases, energy shocks, natural disasters, and food security and the environment.

The conference opened with welcoming remarks from Stanford Provost John Etchemendy and FSI director Coit D. Blacker, who shared their perspectives on pressing global issues and their sense of how Stanford's mission of interdisciplinary research and teaching fits into a changing world. Rounding out the opening session were remarks from former secretary of defense William J. Perry and former secretaries of state Warren Christopher and George Shultz. Secretary Perry analyzed how security threats have evolved in the 10 years since he was secretary of defense, while Secretary Christopher addressed the strategic importance of the Middle East and need for renewed diplomacy and Secretary Shultz discussed the opportunity and imperative for the United States to assume a global leadership role. The three secretaries' institutional knowledge and experience collectively established a rich context for discussion in the plenary and breakout sessions that followed.

The morning and afternoon plenary sessions offered scholarly analysis of two types of risk, with the morning session focusing on systemic issues - measuring risk, managing the nuclear nonproliferation regime, and controlling fissile materials - and the afternoon, on human security issues - improving the resiliency of critical infrastructure and managing energy shocks to oil, natural gas, and electricity markets. Plenary I was moderated by Coit D. Blacker, with Elisabeth Paté-Cornell, Scott D. Sagan, and Siegfried S. Hecker as panelists; Plenary II was moderated by Michael A. McFaul, with Stephen E. Flynn and David G. Victor as panelists.

Drawing on Pate-Cornell's earlier discussion of statistical risk analysis, Michael Osterholm, director of the Center for Infectious Disease Research and Policy at the University of Minnesota, assured conference participants over lunch that unlike other issues being debated that day, the risk of a human influenza pandemic "is one; it is going to happen...the issue is what will it mean when it happens." His assessment showed how our global just-in-time economy makes our world extremely vulnerable to an influenza pandemic. This vulnerability, Osterholm argued, will need to be managed on a local level through family preparedness, community leadership, and business preparedness and continuity.

Overlapping breakout sessions followed the morning and afternoon plenary sessions, allowing for interaction and dialogue in smaller, less formal settings. FSI's five centers and two of FSI's programs sponsored sessions that drilled down into some of the issues discussed in the larger forum throughout the day, including:

• Center for Environmental Science and Policy (CESP): "Food Security and the Environment"
  Rosamond L. Naylor, Kenneth Cassman, and Scott Rozelle
• Center for Health Policy/Center for Primary Care and Outcomes Research (CHP/PCOR): "Pandemics, Infectious Diseases, and Bioterrorism"
  Alan M. Garber, Michael Osterholm, Douglas K. Owens, and Lawrence M. Wein
• Center for International Security and Cooperation (CISAC): "Insurgencies, Failed States, and the Challenge of Governance"
  Jeremy M. Weinstein, Larry Diamond, and Stephen J. Stedman
• Center on Democracy, Development, and the Rule of Law (CDDRL): "Responding to a World at Risk: U.S. Efforts at Democracy Promotion in Russia, Iraq, and Iran"
  Michael A. McFaul, Abbas Milani, David S. Patel, and Kathryn Stoner
• Forum on Contemporary Europe (FCE): "The European Union: Politics, Economics, Terrorism"
  Amir Eshel, Josef Joffe, Hugo Paemen, and James J. Sheehan
• Program on Energy and Sustainable Development (PESD): "China's Rise: Implications for the World Economy and Energy Markets"
  Thomas C. Heller, Fred Hu, and Edgard Habib
• Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC): "Cross Currents: Nationalism and Regionalism in Northeast Asia"
  Daniel C. Sneider, Michael H. Armacost, Gi-Wook Shin, and Xiyu Yang

The conference concluded with a cocktail reception and dinner. Peter Bergen, CNN's counterterrorism analyst and the first Western journalist to have interviewed Osama bin Laden, offered closing remarks on the successes and failures in the war on terrorism since 9/11.

To read the seismic signal sent from an abandoned coal mine in the mountains of North Korea's coast, you must first recognize that it represents four major failures, two grave dangers, and one big opportunity.

The apparent explosion of a nuclear device, coming after two decades of trying to stop North Korea from achieving this goal, is a manifest failure of policy on four fronts -- a failure of U.S. nuclear non-proliferation policy, a failure of international diplomacy, a failure of Chinese leadership and a failure of South Korea's strategy of engaging the North.

Having failed so completely, the world now faces two grave dangers. The first is the very real threat of war on the Korean Peninsula, triggered by a series of escalatory actions in the wake of the bomb test. The second is the danger that North Korea will proliferate its nuclear technology, materials or know-how to others -- not the least to another nuclear hopeful, Iran.

But there remains a lone and tenuous opportunity. Having removed all ambiguity about its nuclear ambitions, North Korea may finally have created a common sense of threat that will galvanize the kind of concerted international action that so far has been absent.

THE FOUR FAILURES

Non-proliferation failure

The United States has spent two decades trying to stop North Korea from going nuclear, a turbulent period of crisis and negotiation that even went to the brink of war. At least three administrations confronted this problem and none, certainly not the Bush administration, can escape blame.

North Korea agreed to sign the Nuclear Non-Proliferation Treaty (NPT) in 1985, but it stalled before signing an agreement with the International Atomic Energy Agency (IAEA) in 1992 to place its nuclear facilities under international safeguards and inspections. During that time the North Koreans reprocessed some spent fuel from their reactor into plutonium - an amount that American intelligence believes was enough for building one or two warheads.

North Korea's resistance to full inspections, while it kept pulling spent fuel rods out of its reactor, provoked a crisis in 1994 and led the Clinton administration to ready military forces to strike the North's nuclear facilities. In a last-minute deal, North Korea froze its reactor and reprocessing facilities, effectively halting plutonium production under IAEA supervision. In exchange, the United States, Japan, South Korea and others agreed to construct two light-water reactors for North Korea and to supply fuel oil until the reactors came online.

The deal was troubled from the start. Neither party was satisfied with the compromise or the way it was to be implemented. By the late 1990s, the North had begun a secret effort to acquire uranium-enrichment technology from Pakistan and, in 1998, tested a long-range ballistic missile. Despite this, the plutonium freeze remained in place. But it did not survive the Bush administration.

The Bush administration came into office challenging the value of the agreement and froze contacts with the North. After receiving intelligence showing moves to build enrichment facilities, it confronted North Korean officials at an acrimonious meeting in Pyongyang in October 2002.

The United States halted fuel shipments a month later, and, in early 2003, the North Koreans expelled IAEA inspectors and withdrew from the Non-Proliferation Treaty. They proceeded to reprocess the fuel rods they had stored for a decade, producing enough plutonium, intelligence estimates say, for four to six nuclear warheads. In February 2005, the North Koreans announced they had manufactured nuclear weapons. Last week, they apparently made good on that declaration.

Blame aside, North Korea's emergence as the world's ninth nuclear power may be the most serious failure in non-proliferation history. Unlike India and Pakistan, which remained outside the system of international treaties, North Korea acted in defiance of those controls. Who might be next?

Diplomatic failure

Unlike Iraq, the attempt to stop North Korea's nuclear program has relied on the tools of diplomacy, accompanied by economic incentives and coercive sanctions.

But serious questions have been raised from the start about the sincerity and methods of the diplomatic efforts, particularly on the part of the United States and North Korea. The Bush administration has insisted -- and the president continues to make this argument -- that direct talks with North Korea do not work. Pyongyang has tried to frame everything as an issue with Washington, undermining talks that involved others, including South Korea.

Bush's stance lends credibility to those who charge the administration seeks "regime change," not a compromise that it believes will lend legitimacy to Kim Jong Il. The North Koreans now appear to have used the talks to buy time and build bombs.

Diplomacy has, at American insistence, consisted of six-party talks, held under Chinese auspices and including both Koreas, Japan and Russia. In truth, little real negotiating went on at these gatherings, at least until the last full round of talks in September 2005. In contrast to the thousands of hours of negotiations between Americans and North Koreans that led to the 1994 deal, there have been only tens of hours of actual give and take.

It is intriguing that the September agreement on a statement of principles for denuclearization came only after the State Department's chief negotiator was finally allowed to talk to his North Korean counterpart at length. Even then, their agreement evaporated almost immediately as they dueled publicly over the deal's meaning. American financial sanctions against North Korean currency counterfeiting further clouded the atmosphere, and direct contacts ground to a halt.

China's failure

The North Korean nuclear crisis is also a failure of China's bid for regional, if not global leadership. North Korea is an ally of China, a relationship that goes back more than half a century to the Korean War, when Chinese "volunteers" poured across the border to prevent an American victory. Their relationship has become more difficult since China embarked on market reforms while North Korea clung to its peculiar brand of Stalinism.

China has been torn between its loyalty to Pyongyang, its desire to maintain a stable balance of power in the region and its fear that the North's nuclear ambitions could provoke conflict on its borders. By becoming host for the six-party talks, Beijing stepped into an unusual leadership role.

The Bush administration was eager to move the burden of the North Korean problem onto the Chinese. Some administration hard-liners argued that China had the power to trigger the collapse of Kim Jung Il's regime by cutting off energy and food supplies.

Time and again, Beijing dragged the North Koreans back to the negotiating table, while also pushing Washington to engage Pyongyang in the talks. But Chinese irritation over American inflexibility has now been trumped by North Korea's defiance. Chinese policy-makers now wonder how they can punish the North without creating chaos, or war.

Failure of engagement

The final failure lies on the doorstep of South Korea's 10-year-long policy of engagement. The "sunshine policy" asserted that the North could be induced to give up its nuclear option by opening up the isolated communist state and promoting the forces of Chinese-style reform.

After a historic summit meeting in 2000, South Korean aid and trade, even tourists, flowed into the North. South Koreans lost their fear of a former foe, seeing it more as an impoverished lost brother than a mortal threat. Tensions with their American allies rose because of a gap in the North's perceived threat. The United States wondered why its troops should continue to defend South Korea.

Now South Koreans must confront the possibility that the North may have used engagement only to buy time.

THE TWO DANGERS

Threat of war

With eyes on Iraq and the Middle East, the Korean Peninsula has been far from the center of American attention. American forces based in South Korea and Japan have been dispatched to Iraq.

Yet the demilitarized zone that separates the two Koreas remains the most militarized frontier on the planet, with hundreds of thousands of well-armed soldiers poised against each other. Clashes along that frontier used to be commonplace and there are signs of a renewal of tensions. The danger of unintended escalation cannot be dismissed.

What might happen if a U.S. naval vessel, moving to inspect a North Korean freighter - as the U.N. resolution may authorize - is fired on or even captured, as the USS Pueblo was in 1968? It is a frightening scenario already worrying some at the Pentagon and the State Department.

Risk of proliferation

More than anything else, American policy-makers fear that North Korea, emboldened by its nuclear success and perhaps desperate for funds amid economic sanctions, might sell its nuclear expertise to Iran and others, including terrorist groups.

For Pyongyang, an alliance with Iran is a logical response to American and global pressure. The North Koreans have sold ballistic missiles to Tehran since the 1980s and rumors of nuclear cooperation persist.

An American effort to interdict the movement of ships and planes to Iran -- with possible U.N. backing - is probable. But the most likely transit is across the long and loosely controlled land border with China. The amount of plutonium needed to make a warhead is the size of a grapefruit and hard to detect - creating yet another nightmare scenario.

THE OPPORTUNITY

In this otherwise bleak landscape, there is an opportunity. For the first time, there is a chance of a consensus among the key players -- China, Japan, South Korea, Russia and the United States. The passage of a U.N. resolution is a small step in that direction. But the real test will come next, as the nations must cooperate to put pressure on North Korea, while coolly navigating the perils of war and making sure to leave open a diplomatic exit.

There is a slim chance of such concerted action, and a limited window for achieving it. Not everyone sees the dangers the same way. Signs of rethinking errors of the past are no more evident in Beijing and Seoul than they are in Washington or Tokyo. Ultimately, however, if they are to seize this moment of opportunity, all parties must face up to the fact that the policies of the past have failed.

The nuclear regime in place since the Nonproliferation Treaty (NPT) took effect in 1970 is broken and needs to be fixed, the world's highest-ranking nuclear official told a half-full Memorial Auditorium in a wide-ranging lecture about the future of nuclear energy and weapons yesterday afternoon.

"We have a dysfunctional system -- system that cannot endure," said Mohamed ElBaradei, the director general of the International Atomic Energy Agency (IAEA). "We're reaching the fork in the road. Events in the last few years have made it clear that we need to change course."

The big news from ElBaradei's speech was his support for American entreaties to Iran. But the 2005 Nobel Peace Prize recipient also commented on North Korea, India, Pakistan, Iraq, terrorism, disarmament and the future of nuclear energy.

He said there are probably eight current nuclear states, excluding North Korea. He worried aloud that countries which can currently produce nuclear energy peacefully are only six months away from developing nuclear weapons for military purposes.

"Acquiring the technology to enrich uranium or reprocess uranium basically is the key to develop nuclear weapons as we have seen in Asia and Iran," he said. "They are virtually weapons states because in six months time if they decide for security reasons to develop their own weapon, they are there."

Iraq

While not a household name, ElBaradei was a prominent figure in the news as the lead weapons inspector in Iraq during the run-up to the 2003 American invasion. He said at the time that he could not find evidence of Iraqi weapons of mass destruction, but he would not conclude that there were no weapons in the country or that Saddam Hussein did not have a program.

ElBaradei asked for more time to complete inspections, but the Bush administration declined his request and decided to invade. The U.S. never found the nuclear and biological material that some had promised existed.

"Luckily...well I'm not sure luckily...we were proven right that there was no nuclear or any weapon of mass destruction in Iraq," he said. "But I hope that all of us have learned from the Iraq experience that we cannot just jump the gun. You have to be absolutely sure of the facts."

India

ElBaradei surprised observers when he supported the U.S. agreement with India earlier this year, which allowed the country to continue developing nuclear weapons and energy. He said the agreement with India did not endorse its proliferation activities but was indicative of the kind of outside-the-box thinking the international community needs when considering the spread of nuclear weapons and material.

"The end result is India coming closer and working with the rest of the world," he said. "It is not a perfect agreement, but it has a lot of advantages. From the safety, security and nonproliferation perspective, I see that agreement as a win-win situation."

Pakistan

Pakistan developed nuclear weapons as a response to India. Some have criticized Pakistan for its poor stewardship and control of the bomb, pointing out that weapons were almost fired during a skirmish over the disputed Kashmir region.

AQ Kahn, a senior nuclear scientist who helped Pakistan join the exclusive nuclear club, was caught selling compact discs and other information about bombs to several other countries.

"How much damage was done in the process we don't know," ElBaradei said.

The release of this nuclear material demonstrates the need for a "more robust verification system," he said, adding that Pakistan has come closer to the international community in recent years.

North Korea

Kim Jong Il expelled all IAEA inspectors in Dec. 2002, withdrew from the NPT in Jan. 2003 and announced in February 2005 that his military had a nuclear deterrent.

"North Korea is still a major problem," ElBaradei said. "We don't talk about it enough, but North Korea is declaring right now that they have a nuclear weapon. And the longer that they continue to be in that status, the more it is accepted in the collective conscious. This would be terrible because it will have a lot of negative ramifications in South Korea and Japan."

ElBaradei said ongoing negotiations are an important development but more needs to be done.

"What we see with the current six-party talks should have taken place years ago," he said.

Nuclear Proliferation

ElBaradei stressed that he understands the value of nuclear power, which produces much of the developed world's energy. Reducing its use would create more dependence on greenhouse gas-creating fossil fuels, he said.

"We need to use nuclear energy responsibly to maximize benefit and minimize risk," he said.

He said his "number one nightmare scenario" is a terrorist group acquiring nuclear technology since terrorists are not deterred by the possibility of reprisal.

In the post-Cold War world, ElBaradei said he could see no justification for the U.S. and Russia to maintain their nuclear arsenals on ready alert to fire with thirty minutes notice. He called on America to lead by example and continue to disarm its nuclear stockpile.

"Rather than pass judgment, I'd definitely like to say the U.S. should do more in leading by example in terms of nuclear disarmament," he said.

In September 2005, ElBaradei was reappointed to a third term as director general of IAEA. The United States had considered holding up his nomination but dropped its objections under pressure from European allies, who admire the former law professor from New York University.

Diplomat to the Core

The Egyptian native's sometimes broken English was interspersed with self-corrections and careful legalese nuance. ElBaradei answered questions posed by Political Science Prof. Scott Sagan, the director of the Center for International Security and Cooperation.

When Sagan made bold pronouncements about different country's nuclear activities, including the United States' "colossal failure" when North Korea violated the NPT, ElBaradei seemed careful not to point fingers, play the blame game or make enemies. Nonetheless, for a senior United Nations official, his speech was notably blunt.

"There's no international public servant whose integrity and work I admire more than yours," Sagan told ElBaradei.

Accompanied by his wife, ElBaradei spent the day at the University visiting with faculty and students. He spoke at a lunch sponsored by the Freeman Spogli Institute for International Studies and traveled to Sagan's home for a dinner with invited guests. He left the area at 8:30 p.m.

The nuclear deal reached during President Bush's recent visit to India unleashed a predictable wave of criticism. From editorial and op-ed pages to Congress, led by the left but supported on the right, the administration has been assailed for making a bad bargain.

Under the agreement, which still needs congressional approval, India would open much of its nuclear facilities to international inspections in return for gaining access to the world's supplies of uranium and U.S. nuclear expertise.

The attacks on the deal reflect the view of the nonproliferation lobby -- the experts and policymakers whose central concern is to stop the spread of nuclear weapons. I share their aim. But American arguments against the India deal are misleading and only expose the deep contradictions, if not hypocrisy, of our own nuclear policies.

There are two main criticisms of the agreement: first, it undermines the Nuclear Nonproliferation Treaty, the NPT, and second, it permits, even encourages, India to expand its nuclear weapons production.

The NPT issue is particularly sensitive at a time when the international community is trying to persuade Iran to give up certain nuclear technologies which many nations fear are part of a secret bomb program.

The NPT created two sets of global rules -- one for the five nuclear weapons powers it recognizes (China, the United States, Russia, Britain and France) and another for everyone else. The five, for example, allow only "voluntary'' international safeguards on their civilian nuclear facilities. They have no obligation to open their military programs to any kind of scrutiny. And the NPT places no real limits on their arsenals, other than a vague commitment to reduce and eventually eliminate all nuclear weapons.

The rest must open their nuclear energy programs fully to international inspection and agree never to build bombs. In exchange, they gain access to the peaceful uses of nuclear energy.

Iran -- and North Korea -- made that bargain and can be held to account for breaking the rules. But India consistently regarded that as an unequal trade-off and never signed the NPT; neither did Pakistan and Israel, two other nuclear weapons states.

India's nuclear program is the product of decades of largely indigenous effort; it did not result from secretive proliferation in violation of the NPT.

The deal with India turns the five into six. It treats India as a de facto member of the inner club. The deal would require changes in U.S. law to remove existing restrictions on the transfer of nuclear energy technology, changes that would allow India to be treated no differently from China.

That does not weaken the NPT -- it strengthens it. It brings it more into accord with reality and gives India a stake in a system it had previously rejected as unfair. It paves the way for India to join the Nuclear Suppliers Group, the international organization that controls nuclear exports.

The critics are right that the deal enables India to expand its production of fissile materials to make nuclear warheads. Eight of India's 22 power reactors will remain outside international controls, along with a new breeder reactor. The Indians fought for that exemption because they feel their nuclear arsenal may not be large enough to deter a nuclear first strike by Pakistan or China in the future. Critics fear that with increased access to uranium and limited inspections, India will set off an arms race in South Asia.

Again, the agreement simply treats India like the five. Nonproliferation experts claim that unlike India, however, the five have halted their production of plutonium and highly enriched uranium that could be used to build new weapons. This is true, but misleading.

The five have massive stockpiles of fissile material built up during the Cold War. "If I've got a full pantry, it's easy for me to swear off trips to the supermarket,'' said Michael Levi, an arms-control expert at the Council on Foreign Relations.

Moreover, the United States has embarked on a new program to rebuild its nuclear weapons production capability, including creating new facilities to produce plutonium cores for warheads and to assemble them.

India has agreed to back a global pact to cut off fissile-material production. But the Bush administration does not support a treaty that would actually verify this is taking place. And the U.S. Senate has refused to ratify the Comprehensive Test Ban Treaty that would permanently halt any new testing of nuclear weapons.

A Congress that can support those policies is hardly in a position to challenge the administration's agreement with India. Rather than block the U.S.-India deal, it makes more sense to improve it. This could include reaching agreements for cooperation between the two countries to ensure the safety and security of nuclear facilities, including those for military purposes, suggested Stanford Professor Scott D. Sagan, a leading expert on nuclear safety and nonproliferation. "Reducing the risk of terrorist theft of nuclear materials or weapons in India would also help protect the United States,'' argues Sagan.

Beyond that, the six acknowledged nuclear powers should begin to seriously fulfill their part of the NPT bargain -- to cap fissile-material production, to ban nuclear testing, and to eventually radically reduce stored arsenals of nuclear weapons and materials.