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Plan B for Obama: 14 Points as a Way out of the Crisis

Nouriel Roubini et al. | Foreign Policy | December 2010

Things do not look good for Obama in the wake of the congressional elections in early November. Yet all is not lost. If the White House was to adhere to the following plan, it could still save the day:

• Economy: Allowing Bush-era tax cuts for the rich to expire could finance the reduction of payroll taxes on employees and employers over the next to years. This would encourage consumption and create jobs.

• Public Diplomacy: The Obama Administration should take its foreign policy to the American people. Barack Obama should again rely upon the town hall forum in order to get public opinion on his side.

• Energy: “Get Off Oil.” Americans need one billion dollars a day in credit in order to finance their oil imports. Five steps are necessary to overcome this addiction: 1) incentives for the production of plug-in hybrid and electric cars 2) mandate city transport to convert to natural gas 3) promote flexible-fuel vehicles and use of ethanol (follow Brazil’s example) 4) dramatically improve the efficiency of internal combustion engines 5) promote the use of carbon composites by auto companies in order to make vehicles lighter and engines smaller.

• Middle East: Build up institutions of a Palestinian state on the West Bank.

• South Asia: Create one command responsible for the region (including Afghanistan, Pakistan, and India) at the Pentagon and the State Department respectively.

• Muslim Allies: Deal with shortcomings even of allied Muslim states (i.e. violations of human rights) openly and frankly.

• Fifth Geneva Convention: A new international convention is needed to establish binding norms for the war on terror.

• “Green Check”: Levy a CO2 tax on domestic production of fossil fuels or at their points of entry. Give the American people a monthly “green check.” For about 60 percent of the population, this payment would exceed additional expenses due to increased energy prices.

• Cut Military Spending: The US military needs to concentrate on its core mission and should no longer attempt to play the role of an armed policeman for the rest of the world.

• Proactive disarmament: Obama should immediately cut strategic weapons to the 1,550 allowed by the new START treaty. Nuclear weapons should be scrapped gradually (450 per year). The active US arsenal should be reduced to 1,000 weapons and the 200 remaining nuclear bombs in Europe should be withdrawn.

• Pakistan: The US needs to break its dependency on Islamabad by relying more heavily on the northern route through Kyrgyzstan and Uzbekistan. • Iran: In close cooperation with Europe, Turkey, Russia, and China, Obama should advocate a cultural and economic opening in the country in order to support moderate forces there and divide the Iranian leadership.

• Human Right Violations: Arresting the mass murderer Joseph Kony in central Africa would underline that the US is still capable of effective military action despite Afghanistan and Iraq. • Global South: Instead of paying $100 billion in fossil fuel subsidies, that money should be transferred to developing countries to assist them in their fight against climate change.

This summary was prepared by the Atlantic Community editorial team from “A Plan B for Obama” published here by Foreign Policy.