Today we're seeing fundamental conflicts within political Islam, with the fundamentalists on the one side and the moderates on the other. Who gains the upper hand means a great deal to the world.

I don't believe that military intervention is always the right approach. What we need is a comprehensive strategy, one that advances democratization, economic reforms and equal rights for women.

The U.S. and Iraq will work together next year to shift Iraqi resources from unproductive subsidies to productive uses that enable Iraqis to earn livelihoods.

Besides, many Islamic movements will change as soon as they gain political responsibility. I'm not at all pessimistic in this regard. Just think of Turkey, where the Islamists are now behaving like a sort of Christian Democratic party in Europe.

I constantly signal to the Iraqi leaders that our patience, or the patience of the American people, is running out.

It is important that the Iraqi people have confidence in the election results and that the voting process, including the process for vote counting, is free and fair.

We're dealing with such enormous problems today that we have no other choice but to work together. If Iraq fails, if a religious civil war breaks out and the neighboring states are drawn into this conflict, if the Kurds declare independence and al-Qaida takes over an entire province - that's when the consequences will be dramatic.