The war on terrorism is not just about security or military tactics. It is a battle of values, and one that can only be won by the triumph of tolerance and liberty. Afghanistan and Iraq have been the necessary starting points of this battle. Success there, however, must be coupled with a bolder, more consistent, and more thorough application of global values, with Washington leading the way.

Not long ago, the expansion of free trade worldwide seemed inevitable. Over the last few years, however, economic barriers have started to rise once more. The forecast for the future looks mixed: some integration will probably continue even as a new economic nationalism takes hold. Managing this new, muddled world will take deft handling, in Washington, Brussels, and Beijing.

Although many governments say that they will not negotiate with terrorists, in practice they often do. And their rhetoric has prevented the systematic analysis of how to do so best. The goal should be to buttress moderates among the terrorists without strengthening hard-liners -- by promising legitimate political involvement, but only if the terrorists eschew violence and accept democratic principles.