The Failure of Reset
The reset button Hillary Clinton gave to the Russians symbolized Obama's strategy. Obama wanted to reset U.S. foreign policy to the period before 9/11, a period when U.S. interventions, although frequent, were minor and could be justified as humanitarian. Economic issues dominated the period, and the primary issue was managing prosperity. It also was a period in which U.S.-European and U.S.-Chinese relations fell into alignment, and when U.S.-Russian relations were stable. Obama thus sought a return to a period when the international system was stable, pro-American and prosperous. While understandable from an American point of view, Russia, for example, considers the 1990s an unmitigated disaster to which it must never return.
The problem in this strategy was that it was impossible to reset the international system. The prosperity of the 1990s had turned into the difficulties of the post-2008 financial crisis. This obviously created preoccupations with managing the domestic economy, but as we saw in our first installment, the financial crisis redefined the way the rest of the world operated. The Europe, China and Russia of the 1990s no longer existed, and the Middle East had been transformed as well.
During the 1990s, it was possible to speak of Europe as a single entity with the expectation that European unity would intensify. That was no longer the case by 2010. The European financial crisis had torn apart the unity that had existed in the 1990s, putting European institutions under intense pressure along with trans-Atlantic institutions such as NATO. In many ways, the United States was irrelevant to the issues the European Union faced. The Europeans might have wanted money from the Americans, but they did not want 1990s-style leadership.
China had also changed. Unease about the state of its economy had replaced the self-confidence of the elite that had dominated during the 1990s in China. Its exports were under heavy pressure, and concerns about social stability had increased. China also had become increasingly repressive and hostile, at least rhetorically, in its foreign policy.
In the Middle East, there was little receptivity to Obama's public diplomacy. In practical terms, the expansion of Iranian power was substantial. Given Israeli fears over Iranian nuclear weapons, Obama found himself walking a fine line between possible conflict with Iran and allowing events to take their own course.
Limiting Intervention
This emerged as the foundation of U.S. foreign policy. Where previously the United States saw itself as having an imperative to try to manage events, Obama clearly saw that as a problem. As seen in this strategy, the United States has limited resources that have been overly strained during the wars. Rather than attempting to manage foreign events, Obama is shifting U.S. strategy toward limiting intervention and allowing events to proceed on their own.
Strategy in Europe clearly reflects this. Washington has avoided any attempt to lead the Europeans to a solution even though the United States has provided massive assistance via the Federal Reserve. This strategy is designed to stabilize rather than to manage. With the Russians, who clearly have reached a point of self-confidence, the failure of an attempt to reset relations resulted in a withdrawal of U.S. focus and attention in the Russian periphery and a willingness by Washington to stand by and allow the Russians to evolve as they will. Similarly, whatever the rhetoric of China and U.S. discussions of redeployment to deal with the Chinese threat, U.S. policy remains passive and accepting.
It is in Iran that we see this most clearly. Apart from nuclear weapons, Iran is becoming a major regional power with a substantial sphere of influence. Rather than attempt to block the Iranians directly, the United States has chosen to stand by and allow the game to play out, making it clear to the Israelis that it prefers diplomacy over military action, which in practical terms means allowing events to take their own course.
This is not necessarily a foolish policy. The entire notion of the balance of power is built on the assumption that regional challengers confront regional opponents who will counterbalance them. Balance-of-power theory assumes the leading power intervenes only when an imbalance occurs. Since no intervention is practical in China, Europe or Russia, a degree of passivity makes sense. In the case of Iran, where military action against its conventional forces is difficult and against its nuclear facilities risky, the same logic applies.
In this strategy, Obama has not returned to the 1990s. Rather, he is attempting to stake out new ground. It is not isolationism in its classic sense, as the United States is now the only global power. He appears to be engineering a new strategy, acknowledging that many outcomes in most of the world are acceptable to the United States and that no one outcome is inherently superior or possible to achieve. The U.S. interest lies in resuming its own prosperity; the arrangements the rest of the world makes are, within very broad limits, acceptable.
Put differently, unable to return U.S. foreign policy to the 1990s and unwilling and unable to continue the post-9/11 strategy, Obama is pursuing a policy of acquiescence. He is decreasing the use of military force and, having limited economic leverage, allowing the system to evolve on its own.
Implicit in this strategy is the existence of overwhelming military force, particularly naval power.
Europe is not manageable through military force, and it poses the most serious long-term threat. As Europe frays, Germany's interests may be better served in a relationship with Russia. Germany needs Russian energy, and Russia needs German technology. Neither is happy with American power, and together they may limit it. Indeed, an entente between Germany and Russia was a founding fear of U.S. foreign policy from World War I until the Cold War. This is the only combination that could conceivably threaten the United States. The American counter here is to support Poland, which physically divides the two, along with other key allies in Europe, and the United States is doing this with a high degree of caution.
China is highly vulnerable to naval force because of the configuration of its coastal waters, which provides choke points for access to its shores. The ultimate Chinese fear is an American blockade, which the weak Chinese navy would be unable to counter, but this is a distant fear. Still, it is the ultimate American advantage.
Russia's vulnerability lies in the ability of its former fellow members of the Soviet Union, which it is trying to organize into a Eurasian Union, to undermine its post-Soviet agenda. The United States has not interfered in this process significantly, but it has economic incentives and covert influence it could use to undermine or at least challenge Russia. Russia is aware of these capabilities and that the United States has not yet used them.
The same strategy is in place with Iran. Sanctions on Iran are unlikely to work because they are too porous and China and Russia will not honor them. Still, the United States pursues them not for what they will achieve but for what they will avoid -- namely, direct action. Rhetoric aside, the assumption underlying U.S. quiescence is that regional forces, the Turks in particular, will be forced to deal with the Iranians themselves, and that patience will allow a balance of power to emerge.
Read more: The State of the World: Explaining U.S. Strategy | Stratfor