This seminal work argues that the disastrous raid in Mogadishu in 1993, and America's resulting aversion to intervening in failed states, led to the Rwanda and Bosnia genocides and to the 9/11 attacks. Contrary to conventional wisdom, this book argues, it was not the 9/11 attacks that transformed the international security environment. Instead, it was "Somali Syndrome," an aversion to intervening in failed states that began in the wake of the1993 U.S./UN action in Somalia. The botched raid precipitated America's strategic retreat from its post-Cold War experiment at partnership with the UN in nation-building and peace enforcement and engendered U.S. paralysis in the face of genocide in Rwanda, Bosnia, and Darfur. The ensuing international security vacuum emboldened al-Qaeda to emerge and attack America and inaugurated our present era of intrastate conflict, mass killings, forced relocations, and international terrorism. As this even-handed treatment shows, the Somali crisis can be connected to seven key features of the emerging post-Cold War world security order. These include the fact that failed states are now the main source of world instability and that new wars are driven by racial, ethnic, and religious identity issues.

A systematic critical survey of American strategic thinking and the strategic culture in which it is formed. In particular, this book seeks to interrogate the theory and strategy of nuclear deterrence, and its relationship to the concept of missile defence. Drawing widely on the theoretical literature in international relations and strategic studies, it identifies the key groups that have competed over America's nuclear policy post-1945 and examines how the concept of missile defence went through a process of gestation and intellectual contestation, leading to its eventual legitimization in the late 1990s. Steff sheds light on the individuals, groups, institutions and processes that led to the decision by the Bush administration to deploy a national missile defence shield. Additionally, Steff systematically examines the impact deployment had on the calculations of Russia and China. In the process he explains that their reactions under the Bush administration have continued into the Obama era, revealing that a new great power security dilemma has broken out. This, Steff shows, has led to a decline in great power relations as a consequence.

The remarkable growth of financial markets over the past decades has been accompanied by an equally remarkable explosion in financial engineering, the interdisciplinary field focusing on applications of mathematical and statistical modeling and computational technology to problems in the financial services industry. The goals of financial engineering research are to develop empirically realistic stochastic models describing dynamics of financial risk variables, such as asset prices, foreign exchange rates, and interest rates, and to develop analytical, computational and statistical methods and tools to implement the models and employ them to design and evaluate financial products and processes to manage risk and to meet financial goals. This handbook describes the latest developments in this rapidly evolving field in the areas of modeling and pricing financial derivatives, building models of interest rates and credit risk, pricing and hedging in incomplete markets, risk management, and portfolio optimization. Leading researchers in each of these areas provide their perspective on the state of the art in terms of analysis, computation, and practical relevance. The authors describe essential results to date, fundamental methods and tools, as well as new views of the existing literature, opportunities, and challenges for future research.