It’s been another busy week for President Barack Obama, who started the week laying the foundation for a new arms control agreement with Russian President Dmitry Medvedev, then moved on to discuss a range of issues including food security and climate change at the G8 summit in Italy, before concluding the week with a visit to Ghana, where he delivered a speech calling for more effective and accountable leadership in Africa.
In other news from the previous week:
1. In a surprising move, Russian President Dmitry Medvedev announced on Friday that Russia was still interested in securing membership in the World Trade Organization. In doing so, President Medvedev reversed Prime Minister Vladimir Putin’s June announcement that Russia was ending its bid to secure WTO membership, moving forward instead with a customs union incorporating several of the former Soviet republics. While Medvedev’s spokesperson sought to minimize the differences between Medvedev and Putin’s approaches the policy reversal nevertheless represents the most dramatic policy clash between Russia’s two top political leaders. The uncertainty surrounding Russia’s position on WTO membership further complicates ongoing talks between Russia and its trade partners.
2. A series of denial-of-service attacks against the United States and South Korea on Wednesday were likely the result of a North Korean cyber attack. In a denial-of-service attack, thousands of simultaneous electronic information requests are made, causing computer servers to crash. Wednesday’s attacks were directed against South Korean and U.S. financial sector and government computers, including Department of Defense and FBI networks. The attacks followed a series of increasingly aggressive missile test launches by North Korea, including several launched over the July 4th weekend, and highlighted the vulnerability of U.S. computer networks to relatively simple cyber attacks. Many analysts believe this sort of denial-of-service attack—in an effort to inhibit communications—would precede a North Korean military attacks against the South.
3. Israel’s National Security Advisor, Uzi Arad, considered by many to be Prime Minister Benjamin Netanyahu’s closed political advisor, announced that Israel would not return the Golan Heights to Syria as part of any peace deal. The two countries are currently engaged in indirect talks aimed at reaching a “comprehensive peace.” But the status of the Golan Heights remains disputed, as both countries seek control of the region, which is of strategic importance, as well as being a major source of water and a popular tourist destination in the water-scarce region. Israel seized the Golan Heights in 1967, after the Syrian army used the strategic position to shell Israeli positions in the Hula Valley below. The status of the Golan Heights, along with the status of Israeli settlements in the West Bank, remains the major stumbling blocks for a comprehensive peace between Israel and its neighbors.
4. Talks intended to resolve the political crisis in Honduras began in Costa Rica on Thursday. The crisis began two weeks ago, when President Manuel Zelaya was removed from office and put on a military transport out of the country. Roberto Micheletti has been named interim president, but his government is not recognized by the international community. The Organization of American States has taken the lead on addressing the standoff, sponsoring talks to peacefully resolve the standoff. But so far, both sides are unwilling to compromise on the central question: who should rule in Honduras?
5. The United States and the European Union appear to be on a collision course with respect to new financial regulations intended to prevent another global financial crisis like the one that ripped through markets late last year. The U.S. Congress is currently considering a new regulatory system that would impose stricter regulation on derivatives, including bans on some of the riskiest financial instruments. But many are concerned that stricter regulations in the United States would encourage regulatory arbitrage, where financial companies would simply relocate to jurisdictions with weaker regulatory systems.