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...Pakistan Army's three-month-old offensive against the Pakistan Taliban in South Waziristan. And it reinforced a growing perception across the country that the government is in no position to mount a robust response. Stopping determined terrorists is difficult for even the most able governments, but analysts say that Islamabad - whose government is in growing disarray - has failed to take basic steps toward a counterterrorism strategy in the heartlands...
...Iceland's defiance goes to the heart of the debate about what caused the country's stunning economic collapse - and who has to pay in the aftermath. Critics say Iceland has only itself to blame: the sparsely populated island had a mainly fish-based economy until the early 2000s, when it deregulated its banks and tried to reinvent itself as a global financial power - with disastrous results. Banks such as Landsbanki moved aggressively into European markets and racked up incredible debts - partially because of poor government oversight - which they were then unable to refinance...
...many Icelanders say they are being unfairly persecuted. They are still smarting from Britain's decision to use antiterrorism laws in 2008 to freeze Iceland's assets and force the country to agree to reimburse the British savers. "The British government used gunboat diplomacy, putting us in the same category as al-Qaeda and the Taliban," says Magnus Arni Skulason, a founding member of InDefence, a grass-roots campaign that helped secure 62,000 names - over a quarter of Iceland's 320,000 people - on a petition calling for the referendum. Skulason says Iceland has become the whipping...
...Other analysts say that Iceland's future may not be as imperiled as the British and Dutch suggest. "When you have a debtor who cannot repay immediately, what do you do? Do you beat Iceland to pieces? If you do, the chances of getting the money back goes down the drain," says Daniel Gros, director of the Centre for European Policy Studies in Brussels and a board member of the Central Bank of Iceland. "The U.K. and Netherlands may feel that it would be easier to be repaid if Iceland is in the E.U." (Read "Iceland's Urgent...
...good news, sources in Seoul say, is that the South Korean government and the Obama Administration are "not only on the same page, but on the same paragraph" when it comes to dealing with the North, as one adviser to President Lee Myung Bak put it recently. One senior diplomat adds that his "gut instinct" is that the North will in fact return relatively soon to the nuclear bargaining table. But even if that happens, Seoul concurs with Bosworth's assessment, on returning from Pyongyang last month, that the sequencing of reciprocal steps by the two sides is likely...