In Asia several governments have been pleased with the re-election of Bush as US President, in part because he is expected to be resolute on security issues.

But resoluteness, while necessary, may not by itself be sufficient to make progress in Iraq and the war on terrorism. There was ample resoluteness during the first Bush term, yet the international security situation has worsened in some important respects in the past two years. If the sorts of policy flaws witnessed over the past few years are repeated during the second term, the world could be a more dangerous place four years from now when Bush leaves office.

Iraq is turning out to be a major strategic setback, largely as a result of errors of judgment made by the Bush team about the post-invasion occupation and administration of the country. It has become an epicenter of terrorism, threatening the stability of the surrounding region, from where the world gets most of its oil, and America's power and prestige in the world.

Anti-Americanism has grown in the Muslim world, in part because of the perceived pro-Israel bias of the Administration which has complicated the fight against terrorism. America's alliances with key European states and its soft power have been damaged.

Even if the charge of unilateralism leveled by critics against this Administration is exaggerated, a deep impression has been created in significant parts of the world that the Administration is dismissive of the views of others on important international issues and determined to go its own way. In world affairs perceptions are an important reality with important consequences especially when they are about the sole superpower whose policies affect so many other countries.

The Administration's fiscal policies have been described by reputable economists as irresponsible. An impressive budget surplus inherited from the Clinton Administration has been turned into a huge deficit. If this trend continues, the resulting damage will not just be economic, both to America and the world, but also strategic. The world needs a strong America to fight the war against terrorism and to maintain the strategic balance; America cannot be strong if its finances are in shambles.