Economics and national security - address by Under Secretary Robert M. Kimmitt before the American Bar Association - transcript

US Department of State Dispatch, June 3, 1991

Thanks for that very kind introduction. I speak to a number of audiences during the course of the year, but it's always an honor for me to address fellow members of the bar. Although I've been engaged in the policy process for over 2 years, as mentioned, I consider it a special privilege to have this chance to address the section this morning. You have a long and respected tradition as a forum for serious discussion of issues that affect uas all--issues rooted in the legal landscape which also look out onto the larger landscape we inhabit as citizens.

The subject of this morning's timely program, economics and national security, is worthy of our attention both as lawyers and as students and practitioners of public policy. As you will hear later this morning, the economic dimension to national security has spurred phenomenal growth in both the public and private sides of the profession. Those of you who chose a career in the law principally to avoid a life filled with numbers and statistics have no cause for joy at this prospect.

For those of us who work the policy side of the street, it is impossible to speak of national security any longer without also speaking about economics. It is now an accepted truth that there is an essential economic dimension cutting across the more familiar political and military aspects of our overall national security strategy. Though once neglected by the strategists of the early post-war era, economics has clearly become the growth sector of the national security business, and there is no sign of the boom subsiding.

There is no better illustration of the importance of the economic dimension of our national security policy than the Persian Gulf crisis. I will spend the latter part of my remarks this morning discussing this aspect of the crisis. But first I would like to spend a few minutes sketching out the framework of national security strategy and then highlighting the economic dimension of that strategy. As mentioned, I would be glad afterward to take a few questions, but I hope at least to lay down some markers to stimulate both panel comment and your exchange with the panel.

National Security Structure

As I think everyone in this room knows, our national security system is based on the structure outlined by Congress in the National Security Act of 1947. That act established the National Security Council "to advise the President with respect to the integration of domestic, foreign and military policies relating to the national security."

The hallmark of our national security system is policy integration and coordination. The task of integrating domestic, foreign, and military policies requirs more than bureaucratic coordination, though that is no small feat in itself. True integration, however, requires coordination of the three basic components of national security strategy--defense, diplomacy, and economics--all resting on a firm intelligence base.

* First, we need to maintain strong, deployable military forces and stable military relationships with our allies around the world. As our recent experience in the Gulf makes plain, a formidable military capability remains a necessary means of last resort to protect vital American interests. Moreover, the fact that we possess substantial military resources augments our diplomatic leverage.

* The second element of our national security strategy is diplomacy. Our bilateral relationships with other governments are the basis for protecting our vital interests. It is only through continuous and extensive consultation with foreign capitals that we are able to coordinate policies with our allies and understand the intentions of our adversaries. And, as the world becomes increasingly interdependent, it is largely through those bilateral relationships that we advance the cause of multilateral cooperation and understanding. The renewed vigor of the United Nations, which played a central role in reversing Iraq's unprovoked aggression against Kuwait--and which I'm sure will be a topic of discussion with [US Ambassador to the United Nations] Tom Pickering tomorrow--is due in arge part to the vigor of our bilateral diplomatic efforts.

* The third element of our strategy, and the subject I wish to explore in detail later, is economics. We must focus as never before on the economic dimensions of security as it relates both to economic health at home and protection of American security interests abroad.

Finally, it is important that we have a reliable and effective intelligence base for military, diplomatic, and economic matters. Without timely and relevant information, policymakers would be unable either to formulate or execute these components of our national security strategy.

Economics and National

Security: An Overview

The Rise of Economic-Based Power. In the post-war period, when the Cold War dominated international relations, national security professionals thought largely in two dimensions: political and military. Security structures took the form of politico-military groupings: from NATO and the Warsaw Pact to the Central Treaty Organization (CENTO), the South East Asia Treaty Organization (SEATO), the Australia, New Zealand, United States security treaty (ANZUS), and a host of others. Planners and strategists thought in terms of alliances of like-minded political systems, often bound together by the common bond of ideology. These alliances or groupings were thought to be the exclusive building blocks of the international political system.