The military face-off in the Persian Gulf does seem, as George Bush puts it, to be Iraq vs. the world. Twenty-four countries have sent powerful armies, fleets and air squadrons to confront a nation of 17 million people. If anyone needed proof that the days of old-fashioned gunboat diplomacy are gone, that should fill the bill. Iraq, along with many other Third World countries, has acquired such sophisticated, destructive armaments that even a superpower feels more comfortable about standing up to Baghdad with the help of allies.
Now a new stage in regional arms races is approaching. One reason Western governments...