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Strategic Objective 2.1: Build a New Stability in the Middle East and North Africa

Strategies for Achieving the Objective

The United States will build regional stability by working toward a comprehensive Middle East peace; forging strong partnerships to address regional threats; supporting economic growth and prosperity; and promoting democratic governance and political reforms, among other measures.

Working to preserve the possibility of a two-state solution to the Israeli-Palestinian conflict, and toward a comprehensive regional peace:

The achievement of a negotiated two-state solution to the Israeli-Palestinian conflict remains a core U.S.

national security objective. The U.S. government pursues this foreign policy objective by working with both parties to try to preserve the possibility for a negotiated settlement and by supporting Palestinian institution-building so that a future state will possess the capacity to govern, provide services, and ensure security and stability within its borders and with its neighbors.

Build strong partnerships to address regional security threats:

The United States is building strong partnerships to address regional security threats. U.S. strategic partnerships, globally and within the region, enhance our security efforts on counterterrorism and nonproliferation.

The United States will continue to work with the global Counter-Da’esh Coalition to degrade and defeat Da’esh in Iraq, Syria, Libya, and other locations. The United States will empower our partners in the region to combat Da’esh by providing security assistance to build their military capacity and will provide financial and technical assistance to support stabilization efforts in areas liberated from Da’esh. The United States will also coordinate broad efforts to counter terrorist financing and the flow of foreign fighters within and through the region. The United States will provide, and encourage others to provide, humanitarian assistance to help mitigate the displacement and refugee crisis caused by violence in Iraq and Syria. Additionally, U.S. security cooperation and assistance to our partners will cover all aspects of counterterrorism, including legal frameworks and rights-respecting security approaches. The United States will undertake efforts to prevent and mitigate extremism, sectarian conflicts, and mass atrocities, and will counter Iran's destabilizing activities in the region. The United States will also emphasize our work with states undergoing democratic transitions to assist them in establishing the capacity to provide a stable and rights-respecting domestic security environment.

The United States will continue to work with the P5+1 (the United States, United Kingdom, Germany, France, Russia, and China, facilitated by the European Union), the broader international community, and international organizations like the International Atomic Energy Agency (IAEA) to ensure that Iran meets its commitments under the Joint Comprehensive Plan of Action (JCPOA) to ensure that its nuclear program remains exclusively peaceful and that it complies with its obligations under the Nuclear Nonproliferation Treaty (NPT), and relevant UN Security Council resolutions.

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The United States, in cooperation with its P5+1 partners, has achieved a comprehensive deal with Iran that has cut off all Iran’s pathways to acquiring sufficient fissile material for a nuclear weapon. Syria’s accession to the Chemical Weapons Convention was a major accomplishment. In cooperation with like-minded international partners, the United States has dismantled one of the largest remaining chemical weapons arsenals in the world and eliminated those weapons as a strategic threat to Israel.

The United States will work with international partners to ensure that Syrian chemical weapons are removed and eliminated and that Syria complies with the Chemical Weapons Convention, UN Security Council resolutions, and Organization for the Prohibition of Chemical Weapons requirements. The United States will continue to deliver humanitarian assistance to affected communities inside Syria and in neighboring countries, and to work to achieve a negotiated political solution that ends the violence in Syria and begins a political transition.

The conflict in Yemen that began when Houthi rebels took over the capital and prompted the legitimate government to take exile in Saudi Arabia has killed over 2,500 Yemenis, wounded over 5,000 others, created a humanitarian crisis, and opened space for AQAP and Da’esh to operate. The United States will continue to support the Saudi-led coalition’s campaign to defend the Saudi border from Houthi attacks and to return the legitimate government to Yemen. At the same time, the United States will press all parties to participate in UN-mediated political talks, will support transition agreements that emerge from that process, and will press all parties to increase humanitarian access and take steps to reduce civilian casualties.

In Libya, the United States continues to provide strong support for the UN-facilitated Libyan political process that aims to heal Libya’s political divisions and complete formation of the Government of National Accord. The political process has taken several significant steps forward in recent months. Libyans representing diverse factions signed the Libyan Political Agreement in December 2015 and the House of Representatives approved the Agreement in January 2016, endorsing members of the Presidency Council. The Libyan political process remains fragile, but it is the best path for Libya to form the unified national government it needs to partner with the international community and address the threat of terrorism, its serious economic and humanitarian challenges, and migrant flows. At the same time, the growing threat from Da’esh in Libya underscores the urgency of finalizing the formation of the new government. The United States will not hesitate to defend U.S.

national security interests and is committed to dislodging Da’esh from Libya.

The Syrian regime could resist a negotiated settlement to its current situation. Terrorist organizations may take advantage of regional instability, fragile security environments in transition countries, and ongoing conflicts to launch attacks. Governments backsliding on democratic transitions could further endanger long-term regional stability. The United States must continue to undermine the violent extremist narrative by encouraging states to establish democratic and accountable institutions thereby supporting our needs to advance our broader regional security priorities.

Promote economic growth, job creation, open markets, and energy security:

The United States will address economic marginalization through the promotion of economic growth, job creation, open markets, and energy security. Economic growth and inclusive prosperity fueled by private sector development, increased investment, and inclusive employment are fundamental to regional stability and to

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counter the terrorist narrative. Sound regulatory, economic, education, and health policies are needed for enduring private sector expansion and stable employment. Achieving these goals requires coordination with partners to design and implement reforms. The United States will partner with governments and the private sector in the region as they develop economic incentives, protect critical infrastructure, and achieve local backing for reforms. The United States will support implementation of projects that increase access to finance for small and medium enterprises. The U.S. Government will encourage sound fiscal and economic policies and improved regulation to attract private investment and spur growth. The United States also will support

development of improved regulatory and rules-based markets to attract foreign investors to the region, including U.S. businesses.

The free flow of energy resources to the global economy is critical to promoting economic prosperity. The collapse of the global oil market will continue to have profound negative effects in the region. It is unclear how long it will last and could be affected by the re-entry of Iranian oil into the market, which will also lead to a fight for market share during a current glut of supply. Regional conflicts, security deterioration, and increased acts of terrorism would deter investment, undermine growth, and threaten energy supplies. The influx of Syrian refugees into neighboring countries could have a crippling effect on the respective country’s financial stability.

The United States will work to sustain the positive synergies and mutual reinforcement between security, democratic political reforms, and economic growth.

Promote improved, democratic governance, empowered and effective civil society, and respect for the rule of law and human rights:

The United States will continue to support democratic governance, civil society, and respect for the rule of law and human rights. Responsive, inclusive, and accountable governance serves as the strongest foundation for long-term regional stability. Governments and societies that are more inclusive, equitable, and representative are better positioned to address challenges and to partner with the United States. The United States will, therefore, promote government institutions that are democratic, responsive to citizens, respect minority rights, and deliver public services transparently and equitably; legislatures that represent constituent interests; and expanded opportunities for meaningful political participation by all citizens. Many civil society groups in the region lack capacity. The United States will support the development of civil society that is effective,

empowered, and able to interact constructively with government. And the United States government will work to strengthen and improve legal systems and weak government institutions in the region, expand access to justice, promote greater respect for human rights, and empower women, minorities, and other marginalized groups.

Factors beyond the U.S. government's control may affect our efforts in the region. The Syrian regime could resist a negotiated settlement to the conflict. Terrorist organizations may take advantage of regional instability, fragile security environments in transition countries, and ongoing conflicts to launch attacks. Governments rejecting or backsliding on reform could further endanger long-term regional stability. Other factors that may affect our efforts include: a decline or slow-down in traditional markets; decreases to historically reliable regional donor countries (as a result of persistently low oil prices on wealthier, more stable countries in the Gulf and North Africa); setbacks to the global economic recovery which have helped stabilize the impact of economic

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downturn; and unsustainable economic policies and high unemployment in the MENA region. Regional

conflicts, security deterioration, and increased acts of terrorism could deter investment, undermine growth, and threaten energy supplies. The influx of Syrian refugees into neighboring countries also places added financial costs and demands on the infrastructure in hosting communities, as well as on social services, such as education and health care.

Countries in the region face serious challenges, including stagnant growth and lack of economic opportunity;

internal and cross-border conflicts and associated refugee flows; resource scarcity; religious and ethnic tension and discrimination; and a demographic youth bulge. Responsive and accountable governments are more capable of addressing those challenges, and are committed to use our engagement, influence, and assistance to help address them.

Strategic Objective Progress Update

The Department of State and USAID, in consultation with the Office of Management and Budget, have highlighted this objective as a focus area for improvement.

The region's crises, particularly the on-going regional conflict against Da’esh in Syria and Iraq, pose serious challenges to regional stability and our national interests. Neighboring states, including Lebanon, Jordan, and Turkey are struggling to cope with significant refugee flows, spillover violence, and, in the case of Lebanon, serious threats to political stability. Da’esh’s growing presence in Libya and Yemen as well as the instability posed to Tunisia, Egypt, and the Gulf further challenge stability and security. Across the region, the need for improved security will continue to demand our attention and resources to deal with immediate threats and rapidly changing developments on the ground. Recent events have again demonstrated the need to look beyond traditional security concerns and to consider the full range of issues that impact and contribute to regional stability. The current crisis in Syria and Iraq's struggle against Da’esh, the breakdown in national governments in Libya and Yemen, as well as the dramatic economic challenges faced by oil-exporting countries embody these complex challenges. In addition, finalizing the JCPOA and ensuring that Iran’s nuclear program remains exclusively peaceful remains a top priority; it is clear that terrorist groups active in the region continue to seek the capability to attack our allies, our interests, and homeland and that the region's strategic energy supplies are vital to support a growing global economy. Regional stability and Middle East peace efforts will also continue to impact Israel's security.

In an effort to respond to both immediate security and to develop long-term security capacity, U.S. efforts continue to build security partnerships with key states. The U.S. assistance continues to help ensure that Israel maintains its qualitative military edge (QME) over potential regional threats, preventing a shift in the security balance of the region and safeguarding U.S. interests. Through U.S. government support, successful police training program for the Palestinian Authority Security Forces (PASF), increased support for the Tunisian security forces and our strong support of the Lebanese Armed Forces (LAF) continue to bolster stability in the region.

Such progress on the security side has been met with modest success on the political side, where the U.S.

government has supported democratic political processes in several countries in the region, with particular success in Tunisia. The United States has also worked closely with the United Nations in Libya and in Yemen to support their negotiations for peaceful resolution of conflict.

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To ensure stability and prosperity, governments must be responsive to the demands of their populace. A new approach to promoting stability is built on the premise that increased democracy with respect for the rights of all citizens, including a focus on increased gender equality and right of minorities, will benefit both the region and the United States. Therefore, regional stability must be rooted in a foundation of responsive and

accountable governance, inclusive economic growth, the advancement of the status of women and girls, and rights-respecting and capable security institutions. This strategic objective remains a challenge as governments in the region are increasingly wary of civil society and are developing new methods of restricting support to civil society and democratic processes. The U.S. government will continue to work with partners to build a new stability in the MENA region, including by working toward a comprehensive Middle East Peace; building strong partnerships to address regional threats; supporting economic prosperity; and promoting inclusive democratic governance and political reform, among other measures. Success in this endeavor is essential to U.S. global interests, and developments in the region will continue to have a direct impact on U.S. national security;

achieving policy goals requires committing resources equal to the challenges faced.

Performance Goal 2.1.1: Expanded Trade and Investment in the Middle East and

Outline

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