“…our problems have never respected dividing lines between global economics and international diplomacy. And neither can our solutions. That is why I have put what I call economic statecraft at the heart of our foreign policy agenda.”
–Secretary of State Hillary Rodham Clinton
The world’s economic system has evolved. So must America’s foreign policy. Emerging nations increasingly deal in economic power as their primary means of measuring and exercising influence. At the same time, America’s global leadership is linked to the vitality of its domestic economy. Simply put, America’s economic strength and its global leadership are a package deal. A strong economy always has been a pillar of American power, and we must position ourselves to lead in a world where security is shaped in boardrooms and on trading floors, as well as on battlefields.
Secretary Clinton is placing economics and market forces at the center of U.S. foreign policy. Economic Statecraft means both harnessing global economic forces to advance America’s foreign policy and employing the tools of foreign policy to shore up our economic strength. We have backed this vision with an ambitious agenda, covering four broad elements:
For the last decade, our foreign policy has, by necessity, focused on the places where we faced the greatest dangers. Responding to threats will always be central to our foreign policy, but it cannot be our foreign policy. In the decade ahead, we need to focus just as intensely on the places where we have the greatest opportunities, including:
Future U.S. competitiveness depends on our ability to curb the growing host of market distortions that too often skew the playing field against U.S. firms—including unfair subsidies and regulatory regimes, lax labor and environmental standards, and sub-market export financing.
Many of America's national security objectives hinge on key economic dimensions, and economics must play a central role in our policy responses. The Department is better harnessing market forces to advance U.S. political and security interests. For example:
We are expanding our capacity to advance this agenda by ensuring that our diplomats have the knowledge, skills and resources to execute it. Actions include: