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Current Article
The Top Ten Stories You Missed in 2004
Page 1 of 3
Posted December 2004
While the world’s attention was riveted on the U.S. presidential election and the ongoing conflict in Iraq, several other less-noticed events occurred in 2004 that will have a lasting impact in the years ahead. Find out what you missed in this exclusive overview by the FP editors.

1. Nous Sommes Tous Chinois

Whenever Taiwan holds an election, Beijing puts on a show of military might to demonstrate that, one way or another, Taiwan will remain part of China. Prior to Taiwan’s first direct presidential election in 1996, China lobbed missiles that landed within 50 miles of Taiwan’s coast. Last March, four days before the Taiwanese elections, China carried out a naval exercise off the coast of Taiwan—its largest-ever joint military exercise with a foreign power. Who was China’s partner in intimidation? France. Also in 2004, the French government began lobbying the European Union (EU) to lift the arms embargo placed on China after the Tiananmen Square massacre in 1989. So, what explains France’s newfound fraternité with China? France clearly sees China as a counterbalance to the U.S. “hyperpower”; French President Jacques Chirac says that France and China’s “global partnership” is “founded first of all on a common vision of the world—a multipolar world.” France is also keen to gain from the economic action in China and believes that lifting the arms embargo would allow its defense contractors to win lucrative contracts from the Chinese military. Small surprise that in 2004 the French celebrated “The Year of China in France.”

2. The Eurotaxman Cometh

The European Parliament made headlines when it rejected Italian politician Rocco Buttiglione for the post of EU justice commissioner due to his strict Catholic views on social issues such as abortion. But amid this culture war, a far more important development received scant attention: The replacement of Latvian Ingrida Udre as taxation commissioner. The parliament took exception to her belief in the benefits of low taxation and tax competition between member states and raised concerns over alleged financial irregularities in her past. Her replacement? Hungarian socialist—and former Communist—Laszlo Kovacs, who favors the “creation of a common consolidated corporate taxation base.” His appointment is sure to spark tensions between Brussels and Europe’s low-tax economies, such as Britain and Ireland, and strengthen the hand of countries that want to raise corporate taxes throughout the EU.

3. Not Iraqification, but Kurdification

When trouble flared in the Iraqi town of Mosul in late November, the only Iraqi troops that U.S. forces trusted to help restore order were Kurdish, according to reports in the BBC and the New York Times. With strong memories of their suffering under Saddam Hussein, the Kurds feel far less conflicted than Iraq’s Arabs about joining the United States to fight remnants of the Baathist regime. Yet, U.S. reliance on the Kurds to police ethnically mixed towns such as Mosul could exacerbate tensions in Iraq. Juan Cole, a Middle East expert at the University of Michigan, fears a “backlash against the Kurds” among Shiite and Sunni Iraqis in the near future.

4. Putin to Kvashnin: “You’re Fired!”

On July 19, 2004, Russian President Vladimir Putin fired the army’s chief of staff, Gen. Anatoly Kvashnin, and replaced him with Yuri Baluyevsky, a general who is more supportive of Putin’s long-running—and so far unsuccessful—struggle to reform the military. Since becoming president, Putin has sought to purge the Russian military of its Cold War mindset and retool it for counterinsurgency operations. The military establishment, however, has resisted change, and it still maintains a war-fighting capability oriented toward fighting NATO, as opposed to militants within Russia’s own borders. And, despite Putin’s call for an end to the draft in 2001, it still exists, and conscripts will continue serving in Chechnya until 2006. Until Putin can push his reforms through, Russia will likely have little success in defeating insurgencies in secessionist regions such as Chechnya. The ineptitude of elite military units during the Beslan hostage crisis in September 2004—when 80 percent of the hostages were killed or wounded during the storming of a school held by Chechen militants—reveals just how much work still needs to be done.


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