• This is a rush transcript from "The Journal Editorial Report," December 23, 2006.

    PAUL GIGOT, FOX HOST: This week on "Journal Editorial Report," Rwanda, Darfur and oil-for-food — Kofi Annan says good-bye after a decade as U.N. chief. We'll examine his legacy.

    And getting tough on Tehran — Iranian voters deal a blow to the radical regime. Will the Security Council follow suit?

    Plus, a crisis in North Korea that Kim Jung Il doesn't want you to know about. And the people here in America who are making a difference.

    But first, these headlines.


    GIGOT: Welcome to the "Journal Editorial Report." I'm Paul Gigot.

    Secretary General Kofi Annan is preparing to step down after a decade at the United Nations, signaling a big transition at an institution that plays an increasingly large role in American foreign policy.

    Earlier this week I spoke with Claudia Rosett, journalist in residence with the Foundation for the Defense of Democracies. And I asked her what Annan's legacy would be.

    CLAUDIA ROSETT, JOURNALIST IN RESIDENT, FOUNDATION FOR DEFENSE OF DEMOCRACIES: His legacy is a U.N. that is much larger, much more prominent on the world scene, much more corrupt and much more dangerous.

    GIGOT: Wow. When you say larger and more corrupt and more dangerous, what do you mean?

    ROSETT: The U.N. under Kofi Annan's watch has expanded greatly in one area after another. Peacekeeping has become this vast boom business.

    GIGOT: Some 20-some different peacekeeping operations around the world.

    ROSETT: Eighteen, employing something like 90,000 peacekeepers at this point, a graft-ridden operation. That's where the peacekeepers, sex for — rape scandals came from.

    They've also greatly expanded on the aid front. And again, it's a big issue whether this is actually helping poor people or helping the U.N.

    And they are, once again, sort of front burner in the major crises of the hour — the North Korean nuclear crisis, the Iran nuclear showdown. And on these fronts, the U.N. is not helping us. In fact, it offers a sort of false hope. It is actually standing in the way of real solutions at this point.

    GIGOT: I want to get to that. But let's talk about this corruption issue. We had the oil-for-food scandal, which some people have called the largest bribery scandal in the history of the world. A lot of talk after that of reform. Has there been any reform? Has it led to any changes at the U.N.?

    ROSETT: No. No, actually it hasn't. There has been a great deal of talk. But if you look at — there is no greater transparency. In fact, the archives of the investigation itself have been deep-sixed back into the U.N. legal department, which won't answer any questions at all from the press about this sort of thing.

    You still can't get at Kofi Annan's personal affairs, even when they involve public money. There is really no level on which there has been a significant improvement. And it is not for lack of some decent people trying.

    You know, Chris Burnham passed through the Management Department, a U.S. official, and I think really did make an effort to fix things. John Bolton really tried to bring some reform. It is like...