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Interview With Aaron David Miller

Aired May 09, 2003 - 15:11   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


JUDY WOODRUFF, CNN ANCHOR: With the combat phase mostly over in Iraq, the question is, will the United States now concentrate on stopping the Israeli-Palestinian violence?
We're joined now by Aaron David Miller. He's a former senior State Department adviser for Arab-Israeli negotiations.

Aaron Miller, is this proposal for a free trade zone likely to be enough of an incentive to make a difference to the countries?

AARON DAVID MILLER, FORMER STATE DEPARTMENT ADVISER: Well, I think it's more an effort on the part of the administration to try to create the impression, which is very real, that it has an overall strategy for pursuing a prosperous and stable and more secure Middle East.

And certainly, the economic component is absolutely critical. If, in fact, you offer the prospects of free trade agreements, then these states and nations have to reform, they have to create the right kind of climate to attract private investment.

So it's an effort to create an incentive, in addition to create the sense that the administration has an overall approach beyond a military and counter-terrorism strategy.

WOODRUFF: Well, do you think it's an approach that makes sense? Do you think countries are actually likely to take advantage of this to do what's necessary in order to buy into the free trade arrangement?

MILLER: Well, I think the Israelis and Jordanians have taken advantage of it. There's currently a set of negotiations, I believe, with the Moroccans under way to do the same. So yes, to certain countries, it could be a tremendous advantage and it's the right kind of policy for the United States to be promoting.

WOODRUFF: What do you expect the trade-off to be? What are these countries going to have to agree to do, do you expect, in order to participate, to benefit from this free trade arrangement?

MILLER: I think it has to do more with how to create the right kind of stable environment in order to attract private investment and to enhance exports. That means creating a set of banking laws, insurance laws that private sector representatives and hard-nosed business people would feel are congenial to investment of their capital. So I think in large part, it's an effort to create an incentive and the quid for the quo is clearly economic reform, which is clearly necessary in most of these states.

WOODRUFF: And what's to stop many of these countries from doing just what you described?

MILLER: I'm sorry, Judy, I didn't hear that.

WOODRUFF: What's to prevent the -- why wouldn't every country take advantage of this? What's to prevent them from doing that?

MILLER: Because I think you've got a series of regimes, and it differs from case to case, in which over-centralization has been the case, in which corruption and economic mismanagement have stopped the kinds of reforms that are absolutely necessary in order to connect this region in a positive sense to the forces of globalization and economic opportunity that other regions of the world have taken advantage of.

WOODRUFF: Do you think this is going to make a tangible difference?

MILLER: Look, I think in the Middle East, time is the critical variable. It's a question of proceeding in the right direction.

And if, in fact, you can begin the path of economic reform, which will lead to economic recovery and private sector investment, then I think you can, in fact, make a difference.

But like the Arab-Israeli peace, Judy, it's going to take time to move this forward.

WOODRUFF: Any countries you can think of off the bat that are likely to take advantage of it in the short-term?

MILLER: Well, I think the Moroccans clearly would and as I mentioned before, the Jordanians have already taken advantage of it. There may be some opportunities in the Gulf and in North Africa, as well.

WOODRUFF: Aaron Miller, a former senior adviser to the State Department on the Middle East, now president of Seeds for Peace. Thanks very much.

MILLER: Thank you, Judy.

WOODRUFF: Appreciate your talking with us.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired May 9, 2003 - 15:11   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JUDY WOODRUFF, CNN ANCHOR: With the combat phase mostly over in Iraq, the question is, will the United States now concentrate on stopping the Israeli-Palestinian violence?
We're joined now by Aaron David Miller. He's a former senior State Department adviser for Arab-Israeli negotiations.

Aaron Miller, is this proposal for a free trade zone likely to be enough of an incentive to make a difference to the countries?

AARON DAVID MILLER, FORMER STATE DEPARTMENT ADVISER: Well, I think it's more an effort on the part of the administration to try to create the impression, which is very real, that it has an overall strategy for pursuing a prosperous and stable and more secure Middle East.

And certainly, the economic component is absolutely critical. If, in fact, you offer the prospects of free trade agreements, then these states and nations have to reform, they have to create the right kind of climate to attract private investment.

So it's an effort to create an incentive, in addition to create the sense that the administration has an overall approach beyond a military and counter-terrorism strategy.

WOODRUFF: Well, do you think it's an approach that makes sense? Do you think countries are actually likely to take advantage of this to do what's necessary in order to buy into the free trade arrangement?

MILLER: Well, I think the Israelis and Jordanians have taken advantage of it. There's currently a set of negotiations, I believe, with the Moroccans under way to do the same. So yes, to certain countries, it could be a tremendous advantage and it's the right kind of policy for the United States to be promoting.

WOODRUFF: What do you expect the trade-off to be? What are these countries going to have to agree to do, do you expect, in order to participate, to benefit from this free trade arrangement?

MILLER: I think it has to do more with how to create the right kind of stable environment in order to attract private investment and to enhance exports. That means creating a set of banking laws, insurance laws that private sector representatives and hard-nosed business people would feel are congenial to investment of their capital. So I think in large part, it's an effort to create an incentive and the quid for the quo is clearly economic reform, which is clearly necessary in most of these states.

WOODRUFF: And what's to stop many of these countries from doing just what you described?

MILLER: I'm sorry, Judy, I didn't hear that.

WOODRUFF: What's to prevent the -- why wouldn't every country take advantage of this? What's to prevent them from doing that?

MILLER: Because I think you've got a series of regimes, and it differs from case to case, in which over-centralization has been the case, in which corruption and economic mismanagement have stopped the kinds of reforms that are absolutely necessary in order to connect this region in a positive sense to the forces of globalization and economic opportunity that other regions of the world have taken advantage of.

WOODRUFF: Do you think this is going to make a tangible difference?

MILLER: Look, I think in the Middle East, time is the critical variable. It's a question of proceeding in the right direction.

And if, in fact, you can begin the path of economic reform, which will lead to economic recovery and private sector investment, then I think you can, in fact, make a difference.

But like the Arab-Israeli peace, Judy, it's going to take time to move this forward.

WOODRUFF: Any countries you can think of off the bat that are likely to take advantage of it in the short-term?

MILLER: Well, I think the Moroccans clearly would and as I mentioned before, the Jordanians have already taken advantage of it. There may be some opportunities in the Gulf and in North Africa, as well.

WOODRUFF: Aaron Miller, a former senior adviser to the State Department on the Middle East, now president of Seeds for Peace. Thanks very much.

MILLER: Thank you, Judy.

WOODRUFF: Appreciate your talking with us.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com