Synopses & Reviews
Economic turmoil has spread throughout the western world, but terrorists and other threats to national security have not been put out of business by the Great Recession. Economic Instruments of Security Policy explores the critical question: does the United States and its allies still maintain effective economic tools to influence the behavior of those who seek to cause us harm? Governments have at their disposal many economic instruments to promote national security, such as sanctions, foreign aid, international trade, international finance, and laws blocking funds for international terrorism. This book examines the use of theses economic policies and addresses how best to measure their effectiveness.
Review
"The authors blend classic economic analysis, behavioral economics, and practical experience to present an original and realistic vision of the dynamics that affect global security decisionmaking." —Secretary Michael Chertoff, former United States Secretary of Homeland Security and chairman of the Chertoff Group"An important book, Professors Shiffman and Jochum uniquely use case studies of economic policies to animate a discussion of national security." —General Michael V. Hayden, former Director of the US Central Intelligence Agency "In Economic Instruments, Professors Shiffman and Jochum give us an interesting and accurate account of the realities of national security policymaking; the economic framework provides a structure for innovation for current and future policymakers." —US Senator Connie Mack "This book is an important reminder that trade and economic engagement can lead to a more peaceful world and that economic and national security are inextricably intertwined." —Ambassador Mickey Kantor, former United States Trade Representative and Secretary of Commerce. "Professors Shiffman and Jochum bring a rare combination of practical experience and rigorous academic economics to urgent questions of national security. Specific policies such as counterterrorism, foreign aid and international law are approached in a framework that considers institutions of government and respects individual incentives. They have crafted an engaging book that we'd like to see our policymakers reading on airplanes." —Eli Berman, University of California San Diego, author of Radical, Religious and Violent: The New Economics of Terrorism “Shiffman and Jochums important book illuminates the levers—some open, many hidden, all subject to interpretation—that drive the decision-making behaviors of individuals within institutions and systems. Their insights suggest that in a very real sense economic security is national security and vice versa, and that an economic approach to the analysis of decision-making has much to offer scholars, leaders and practitioners in the field.” —David J. Kilcullen, former Special Advisor for Counterinsurgency to the U.S. Secretary of State and Senior Counterinsurgency Advisor to General David Petraeus
Synopsis
Governments have at their disposal many economic instruments to promote national security, such as sanctions, foreign aid, international trade, international finance and laws blocking funds for international terrorism. This book examines the use of theses economic policies and addresses how best to measure their effectiveness.
Synopsis
A much-needed new look at National Security post-2005 and the economic factors that influence it
About the Author
Gary M. Shiffman is Professor and the Director of Homeland Security Studies at the Center for Peace and Security Studies, School of Foreign Service, at Georgetown University, and Managing Director of the Chertoff Group. An economist, he focuses his academic and professional energies on innovative approaches to national and homeland security challenges. Previously he served as Senior Vice President and General Manager of a critical infrastructure protection and emergency management business unit at L-3. He has also served at the U.S. Department of Homeland Security in the Senior Executive Service (SES) as Chief of Staff at U.S. Customs and Border Protection and in the U.S. Senate as a National Security and Senior Policy Adviser. He is a decorated military veteran, having served in policy, planning, and operational positions in the U.S. Department of Defense.
James Jochum is an Adjunct Professor in the Security Studies Program at Georgetown University. He is the founding member of both Jochum Shore & Trossevin PC and Black Swan LLC. Mr. Jochum advises clients on all aspects of international trade law and regulations, including antidumping and countervailing duty matters, U.S. export controls, and national security controls (CFIUS).
Table of Contents
Acknowledgments * Forward to the Second Edition * Introduction * PART I: THE INDIVIDUAL * Chapter One: States Dont Make Decisions; People Do * Adam Smith and Twenty-first Century National Security * Maximizing, Rationality, and the Bounds of Institutions * Experimentation in Economic Science * Chapter Two: The Economics of Autocracies * Some Are Ranchers and Some Are Wolves * Predicting the Dictator: A Theoretical Model * Chapter Three: Principles for Policymakers * PART II: THE WORLD * Chapter Four: Castros Cuba and U.S. Sanctions * The Cuban Economy in the 1990s * Dictating Economic Performance * Sanctions: Truth in Advertising * Chapter Five: Democracies and the Politics of Trade * Free Trade Agreements * Case Study: The PRC and Most Favored Nation Status * Case Study: Pistachios, Rugs, and Relationship-Building * Case Study: India and Commerce * Case Study: The PRC, Public Disclosure and Verified End Users * Import Restrictions * Case Study: The PRC and non-market economies * Trade as a Tool: Roundup * Chapter Six: Money and Finance as Security Tools * Money * Inflation * Case Study: Swiss dinars and Saddam dinars * Case Study: Internet Marketplace * Case Study: Money Laundering in Ukraine * Chapter Seven: Exchange Rate Choices and National Security * Choosing an Exchange Rate * Case Study: Dollarization * Choosing Power Over Growth, Again * Chapter Eight: Maximizing Over Time Through Lending and Borrowing * International Finance * Case Study: International Financial Institutions and the East Asian Financial Crisis * Case Study: Tibet vs. the World Bank at Qinghai * Sovereign Lending and Foreign Direct Investment * Debt Dynamics and Debates * Case Study: Debt Forgiveness - Republic of Congo * Case Study: Did the Great Recession Change the Competitive Equation? * Summary: Money, Exchange Regimes, Debt * Chapter Nine: Curing Poverty Helps National Security * Terrorism, Insurgency, and Poverty * Theory of Growth * Incentives and Growth * De-industrialization: When Countries Do Not Invest in Domestic Capacity * Case Study: The Millennium Challenge Account * Case Study: The African Growth and Opportunity Act * Case Study: Saudi Arabian Charities * Case Study: Iraq * Case Study: Syria * Case Study: Law Enforcement Against al Qaeda * Case Study: Brothers to the Rescue and the “Anti-Terrorism Amendment” to the FSIA * Conclusion * Appendix * Endnotes