Foreign Economic Policy for the Next President

Abstract

AT A TIME when U.S. foreign policy is dominated by war, terrorism, and weapons of mass destruction, economic concerns are often rele gated to the back burner. But in reality, economic policy must be an integral component of any successful foreign policy. Some of its elements, such as the suppression of terrorist financing and support for reconstruction efforts in Iraq and Afghanistan, bear directly on the most central national security concerns. The linkage, however, is much broader, because most countries, rich or poor, large or small, depend heavily on the global economy for their prosperity and their stability. Hence, economics ranks at the top of their list of concerns. To continue to be relevant to the rest of the world, the United States must engage effectively on these issues. As the sole military superpower, the United States may often be able to undertake unilateral initiatives for the sake of national security. But in economic policy, unilateralism is simply not an option. No government, Washington included, can ignore market forces. The