The Economic Dimensions Of National Security

On August 24-25, 2010, the National Defense University held a conference titled “Economic Security: Neglected Dimension of National Security?” to explore the economic element of national power. This special collection of selected papers from the conference represents the view of several keynote speakers and participants in six panel discussions. It explores the complexity surrounding this subject and examines the major elements that, interacting as a system, define the economic component of national security.

The end of the Cold War and the associated dramatic changes in the geopolitical environment have led many observers to conclude that much of our past thinking about U.S. national security interests and policies is now outmoded and that a fundamental rethinking of these interests and policies is required. In particular, the notion is becoming widespread that economic factors and concerns will play a more prominent role in defining and pursuing U.S. national security objectives. The authors' aim in convening the conference was to advance understanding of the emerging 'economic dimensions' of U.S. national security policymaking. The aim of this report is the same. It is meant as a contribution to the task of defining a useful frame of reference for what will undoubtedly be a continuing discussion of the relation between economics and national security. Although it is not intended as a summary of conference proceedings, this report draws heavily on the ideas and hypotheses put forward during the conference. In accordance with the ground rules established at the conference, the authors have not attributed any of the ideas noted in this report to particular conference participants. They have tried to retain the exploratory and speculative tone of the conference discussions.

This is an examination of the interaction between economics and national security, which explores why the area of security studies has long been neglected by economists, even though defence and wartime expenditures regularly consume large portions of government income. The contributors demonstrate that the history of the relationship between economics and national security is far richer than previously thought.

Historically, national security includes the strength of our nation's infrastructure, the foundation upon which the continuous growth of our society depends. This includes our strong societal and moral codes, the rule of law, stable government, social, political, and economic institutions, and leadership. Also included are our nation's schools and educational programs to ensure a knowledgeable citizenry and lifelong learning-a must for a democracy. Our nation's strength also requires investments in science, engineering, research and development, and technological leadership. We cannot be strong without a viable way to power our cities, feed ourselves, and move from one place to another. Most of all, a strong economy is an essential ingredient of a global superpower. Without it, we will lose our superpower status, and quickly. National security must include a healthy market-based economy, with a strong base of globally competitive products and services that produce jobs. This economy must include sound government policies to promote responsible choices and reduce our debt, and grand strategies for energy and environmental sustainability, science and technology leadership (at least in some areas), human capital capabilities, manufacturing, and the industrial base. And these are not the only components. National security goes to the very core of how we define who we are as a people and a free society. It concerns how we view our world responsibilities. Economic security is a major element of national security, even as borders are less important than ever. No matter how we look at national security, there can be no question of the need to include the economic viability of our nation. Without capital, there is no business; without business, there is no profit; without profit, there are no jobs. And without jobs, there are no taxes, and there is no military capability. The viability of a nation's industrial infrastructure, which provides jobs for its people, creates and distributes wealth, and leverages profits, is essential. Without jobs, the quality of peoples' lives deteriorates to a point where society itself can disintegrate. It can also lead to strife on many different levels. As a nation, we need to find a strategy to deal with this, and we will discuss the ideas of expeditionary economics. But poverty is not only a problem in Third World countries. It can occur at home, too-especially during a deep recession. No community, local or global, can sustain indefinitely whole populations of "haves" and "have nots." And that gap is now growing within the United States. There is no question that a part of the infrastructure of a nation must include a sound economy. It was the relative deterioration of the Japanese and German economies that led those nations into World War II. Poverty around the world is a global systemic issue that frequently can and does lead to political instability. But we cannot help others if we cannot help ourselves, and our current economic crisis is a warning. National security is societal, political, and economic strength. In today's world, national security for a superpower is meaningless without a strong military capability as well. The sovereignty and security of the United States, and the protection of its citizens and property around the world, remain the bedrock of national security. The execution of U.S. national security strategy is conducted in a highly volatile global environment characterized by quantum changes in technology; unprecedented social, economic, and political interdependencies; broadened opportunities to foster democratic principles; and allegiances and alliances frequently founded on interests other than traditional nationalism. Understanding the complex systems nature of national security and why the economy is a part of the equation is crucial. National Defense University.

Uncorrected galley and page proofs.

The Political Economy of National Security is the only text on the market that analyzes the economic dimensions of national security. Given the specialization of writings in international relations, authors tend to treat "security studies" and "political economy" as separate spheres with no apparent linkage. By probing the interface between economics and security, this text offers a deeper understanding of both.