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1. U.S. Strategy and Economic Statecraft: Understanding the Tradeoffs

Author:
Christopher S. Chivvis and Ethan Kapstein
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Few would dispute that U.S. economic policy has enormous consequences for America’s national security and role in the world. But economic policy is too often made without a clear picture of the strategic tradeoffs it entails. The purpose of this paper is to help clarify some of these tradeoffs by considering three alternative models of U.S. economic statecraft. The first model examined here, America First, has several national security and economic disadvantages. It would not only antagonize some of Washington’s key military allies but probably also undermine U.S. international competitiveness. It might even induce countries to turn their economic attention toward China, reducing the United States’ global influence accordingly. A better approach would be a blend of two other models, namely alliance economics and globalization 2.0. Together these approaches could help orient the United States for the geopolitical challenges of the next decade. By emphasizing commercial relations with U.S. military allies, such a blend would recall Article 2 of the North Atlantic Treaty, which calls for international economic cooperation among NATO member states. And by leading a reformed multilateral system, the United States would again put itself at the center of the rules-based global economic order that brought prosperity to millions.
Topic:
Foreign Policy, NATO, Geopolitics, Economy, Economic Cooperation, and Strategy
Political Geography:
North America and United States of America

2. U.S.-China Technological “Decoupling”: A Strategy and Policy Framework

Author:
Jon Bateman
Publication Date:
04-2022
Content Type:
Special Report
Institution:
Carnegie Endowment for International Peace
Abstract:
A partial “decoupling”2 of U.S. and Chinese technology ecosystems is well underway. Beijing plays an active role in this process, as do other governments and private actors around the world. But the U.S. government has been a primary driver in recent years with its increased use of technology restrictions: export controls, divestment orders, licensing denials, visa bans, sanctions, tariffs, and the like. There is bipartisan support for at least some bolstering of U.S. tech controls, particularly for so-called strategic technologies, where Chinese advancement or influence could most threaten America’s national security and economic interests. But what exactly are these strategic technologies, and how hard should the U.S. government push to control them? Where is the responsible stopping point—the line beyond which technology restrictions aimed at China do more harm than good to America? These are vexing questions with few, if any, clear answers. Yet the United States cannot afford simply to muddle through technological decoupling, one of the most consequential global trends of the early twenty-first century. The U.S. technology base—foundational to national well-being and power—is thoroughly enmeshed with China in a larger, globe-spanning technological web. Cutting many strands of this web to reweave them into new patterns will be daunting and dangerous. Without a clear strategy, the U.S. government risks doing too little or—more likely—too much to curb technological interdependence with China. In particular, Washington may accidentally set in motion a chaotic, runaway decoupling that it cannot predict or control. Sharper thinking and more informed debates are needed to develop a coherent, durable strategy. Today, disparate U.S. objectives are frequently lumped together into amorphous constructs like “technology competition.” Familiar terms like “supply chain security” often fail to clarify such basic matters as which U.S. interests must be secured and why. Important decisions are siloed within opaque forums (like the Committee on Foreign Investment in the United States [CFIUS]), narrow specialties (like export control law), or individual industries (like semiconductors), concealing the bigger picture. The traditional concerns of “tech policy” and “China policy” receive outsized attention, while second-order implications in other areas (such as climate policy) get short shrift. And as China discourse in the United States becomes more politically charged, arguments for preserving technology ties are increasingly muted or not voiced at all. This report aims to address these gaps and show how American leaders can navigate the vast, perilous, largely unmapped terrain of technological decoupling. First, it gives an overview of U.S. thinking and policy—describing how U.S. views on Chinese technology have evolved in recent years and explaining the many tools that Washington uses to curb U.S.- China technological interdependence. Second, it frames the major strategic choices facing U.S. leaders—summarizing three proposed strategies for technological decoupling and advocating a middle path that preserves and expands America’s options. Third, it translates this strategy into implementable policies and processes—proposing specific objectives for U.S. federal agencies and identifying the technology areas where government controls are (or are not) warranted. The report also highlights many domestic investments and other self-improvement measures that must go hand in hand with restrictive action.
Topic:
National Security, Science and Technology, Intellectual Property/Copyright, Authoritarianism, Economy, Espionage, Military, and Interdependence
Political Geography:
China, Asia, North America, and United States of America

3. Russia in the Arctic—A Critical Examination

Author:
Eugene Rumer, Richard Sokolsky, and Paul Stronski
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Russia has big Arctic plans, but how they will be realized is uncertain. For the United States this will likely mean the return to a Cold War–like environment rather than a new chapter in great-power competition in the Arctic. Russia’s Arctic ambitions have attracted increasing attention in the West over the past decade as climate change opens up new opportunities in the region for navigation and exploration of its riches. For its part, Moscow casts a wary eye on what it sees as a challenge from the United States and the North Atlantic Treaty Organization (NATO) to its position and ambitions there. The Kremlin’s rhetoric about Western encroachment has become more strident, in sync with its enhanced military posture and ambitious economic and infrastructure projects.
Topic:
NATO, Cold War, Infrastructure, Geopolitics, and Economy
Political Geography:
Russia, Eurasia, North America, Arctic, and United States of America

4. U.S. Foreign Policy for the Middle Class: Perspectives From Nebraska

Author:
Salman Ahmed, Allison Gelman, Tarik Abdel-Monem, Wendy Cutler, Rozlyn Engel, David Gordon, Jennifer Harris, Douglas Lute, Jill O'Donnell, Daniel M. Price, David Rosenbaum, Christopher Smart, Jake Sullivan, Ashley J. Tellis, Eric Thompson, Janell C. Walther, and Tom Wyler
Publication Date:
05-2020
Content Type:
Special Report
Institution:
Carnegie Endowment for International Peace
Abstract:
U.S. foreign policy has not come up often in the 2020 presidential campaign. But when it has, candidates on both sides of the aisle frequently have stressed that U.S. foreign policy should not only keep the American people safe but also deliver more tangible economic benefits for the country’s middle class. The debate among the presidential contenders is not if that should happen but how to make it happen. All too often, this debate takes place within relatively small circles within Washington, DC, without the benefit of input from state and local officials, small business owners, community leaders, local labor representatives, and others on the front lines of addressing the challenges facing middle-class households. That is why the Carnegie Endowment for International Peace convened a bipartisan task force in late 2017 to lift up such voices and inject them into the ongoing debate. The task force partnered with university researchers to study the perceived and measurable economic effects of U.S. foreign policy on three politically and economically different states in the nation’s heartland—Colorado, Nebraska, and Ohio. The first two reports on Ohio and Colorado were published in December 2018 and November 2019, respectively. This third report on Nebraska has been prepared in partnership with a team of researchers at the University of Nebraska–Lincoln (UNL). To gauge perceptions of how Nebraska’s middle class is faring and the ways in which U.S. foreign policy might fit in, the Carnegie and UNL research teams reviewed household surveys and conducted individual interviews and focus groups, between July and August 2019, with over 130 Nebraskans in Columbus, Scottsbluff/Gering, Kearney, Lincoln, North Platte, and Omaha.
Topic:
Foreign Policy, Climate Change, Politics, Immigration, Economy, Domestic Politics, Class, and Trade
Political Geography:
North America and United States of America

5. Making U.S. Foreign Policy Work Better for the Middle Class

Author:
Salman Ahmed, Wendy Cutler, Rozlyn Engel, David Gordon, Jennifer Harris, Douglas Lute, Daniel M. Price, Christopher Smart, Jake Sullivan, Ashley J. Tellis, and Tom Wyler
Publication Date:
09-2020
Content Type:
Special Report
Institution:
Carnegie Endowment for International Peace
Abstract:
If there ever was a truism among the U.S. foreign policy community—across parties, administrations, and ideologies—it is that the United States must be strong at home to be strong abroad. Hawks and doves and isolationists and neoconservatives alike all agree that a critical pillar of U.S. power lies in its middle class—its dynamism, its productivity, its political and economic participation, and, most importantly, its magnetic promise of progress and possibility to the rest of the world. And yet, after three decades of U.S. primacy on the world stage, America’s middle class finds itself in a precarious state. The economic challenges presented by globalization, technological change, financial imbalances, and fiscal strains have gone largely unmet. And that was before the novel coronavirus plunged the country into the worst economic crisis since the Great Depression, exposed and exacerbated deep inequities across American society, led long-simmering tensions over racial injustice to boil over, and launched a level of societal unrest that the United States has not seen since the height of the civil rights movement.
Topic:
Foreign Policy, Economy, Class, and Trade
Political Geography:
North America and United States of America

6. Regaining U.S. Global Leadership on Anticorruption

Author:
Abigail Bellows
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The stakes for the United States to escalate the fight against corruption have never been higher. U.S. security, economic, and political interests demand a greater focus on countering corruption internationally. The next administration could substantially increase U.S. impact on anticorruption through taking the following measures: Defending against the weaponization of corruption; Providing politically responsive anticorruption assistance; Mainstreaming anticorruption; Enabling U.S. leadership.
Topic:
Security, Corruption, Leadership, and Economy
Political Geography:
North America and United States of America

7. U.S. Foreign Policy for the Middle Class: Perspectives from Colorado

Author:
Salman Ahmed, Allison Gelman, Wendy Cutler, Rozlyn Engel, David Gordon, Jennifer Harris, Brian Lewandowski, Douglas Lute, Daniel M. Price, Christopher Smart, Jake Sullivan, Ashley J. Tellis, Richard Wobbekind, and Tom Wyler
Publication Date:
11-2019
Content Type:
Special Report
Institution:
Carnegie Endowment for International Peace
Abstract:
The American middle class is already taking center stage in the 2020 presidential electoral campaign, even in relation to debates about foreign policy. While the U.S. economy has been growing and unemployment rates have fallen, too many Americans still struggle to sustain a middle-class lifestyle. Meanwhile, major multinational corporations, China, and other foreign competitors reap enormous benefits from a global economy that U.S. leadership and security has helped underwrite. Therefore, candidates on both sides of the aisle have ample cause for debating whether changes to U.S. foreign policy are required to better advance the economic well-being of America’s middle class, even if middle-class fortunes largely depend on domestic factors and policies. This debate will be relevant long after the electoral cycle is over, however, and will influence the trajectory of U.S. global leadership and international affairs for decades to come. National security and foreign policy professionals in government need to be fully involved in this discussion, yet many are understandably consumed by geopolitical and security developments abroad and are, therefore, often distant or disconnected from economic realities at home. They rarely get to hear what Americans beyond Washington, DC, think about how U.S. foreign policy–related efforts may or may not intersect with these realities. Thus, the Carnegie Endowment for International Peace initiated a new line of research on “foreign policy for the middle class” to help address this gap and bridge an important divide. In 2017, Carnegie convened a bipartisan task force of former senior policymakers to provide strategic direction to this research and ultimately make concrete recommendations. To inform these recommendations, the task force and a research team—including Carnegie scholars and university researchers—are gathering data on both the perceived and measurable economic effects of U.S. foreign policy on the middle class in three U.S. states in the nation’s heartland (Ohio, Colorado, and Nebraska). This report on Colorado, prepared with economists at the University of Colorado Boulder, is the second of the three case studies. The first study on Ohio, undertaken with The Ohio State University, was published in December 2018.1 Across multiple locales in Colorado, the research team conducted interviews and focus groups with state and local officials, economic developers, small business owners, employees, community leaders, teachers, nurses, tradesmen, and others who comprise, employ, and/or advance the interests of middle-class households. The conversation focused on how those interviewed assessed the economic well-being of Colorado’s middle class and whether they believed any significant changes in U.S. foreign policy could yield a better outcome. The interviews and focus groups took place between February and May of 2019, reflecting the events and policies up to that time.
Topic:
Foreign Policy, Politics, Economy, Class, and Defense Industry
Political Geography:
North America and United States of America