How Smart Is Hillary's "Smart Power"?

From Hillary Clinton's speech at the Council on Foreign Relations today:

I speak often of smart power because it is so central to our thinking and our decision-making. It means the intelligent use of all means at our disposal, including our ability to convene and connect. It means our economic and military strength; our capacity for entrepreneurship and innovation; and the ability and credibility of our new President and his team. It also means the application of old-fashioned common sense in policymaking. It’s a blend of principle and pragmatism.

Smart power translates into specific policy approaches in five areas. First, we intend to update and create vehicles for cooperation with our partners; second, we will pursue principled engagement with those who disagree with us; third, we will elevate development as a core pillar of American power; fourth, we will integrate civilian and military action in conflict areas; and fifth, we will leverage key sources of American power, including our economic strength and the power of our example.

Our first approach is to build these stronger mechanisms of cooperation with our historic allies, with emerging powers, and with multilateral institutions [so, bashing Israel is...smart?],

...Now I’m well aware that time alone does not heal all wounds; consider the Palestinian-Israeli conflict. That’s why we wasted no time in starting an intensive effort on day one to realize the rights of Palestinians and Israelis to live in peace and security in two states, which is in America’s interests and the world’s. We’ve been working with the Israelis to deal with the issue of settlements, to ease the living conditions of Palestinians, and create circumstances that can lead to the establishment of a viable Palestinian state. For the last few decades, American administrations have held consistent positions on the settlement issue. And while we expect action from Israel, we recognize that these decisions are politically challenging.

And we know that progress toward peace cannot be the responsibility of the United States – or Israel – alone. Ending the conflict requires action on all sides. The Palestinians have the responsibility to improve and extend the positive actions already taken on security; to act forcefully against incitement; and to refrain from any action that would make meaningful negotiations less likely.

And Arab states have a responsibility to support the Palestinian Authority with words and deeds, to take steps to improve relations with Israel, and to prepare their publics to embrace peace and accept Israel’s place in the region. The Saudi peace proposal, supported by more than twenty nations, was a positive step. But we believe that more is needed. So we are asking those who embrace the proposal to take meaningful steps now. Anwar Sadat and King Hussein crossed important thresholds, and their boldness and vision mobilized peace constituencies in Israel and paved the way for lasting agreements. By providing support to the Palestinians and offering an opening, however modest, to the Israelis, the Arab states could have the same impact. So I say to all sides: Sending messages of peace is not enough. You must also act against the cultures of hate, intolerance and disrespect that perpetuate conflict.