The World Bank's outdated financial structure is a threat to its continued relevance. Paul Wolfowitz, the bank's new president, should begin closing the wing of the bank that lends to middle-income countries.

For nearly a decade, U.S. policy toward Latin America has been narrowly focused on a handful of issues, such as China's growing influence in the region and the power of Venezuelan President Hugo Chávez. Latin Americans want economic ties with the United States but feel slighted by Washington and uneasy about the U.S. role in the world. The costs of the estrangement will be high for both sides.

The relative ease of the Gaza withdrawal has fooled many observers into thinking that the Palestinian Authority can now concentrate on consolidating its hold over the territory. Washington and its allies are pushing hard for the PA to do so. But everyone is ignoring the West Bank, where chaos is quickly mounting. If wide-scale violence erupts there, it could quickly bury the entire peace process.