The Economic Dimensions of National Security

The end of the Cold War has shifted attention from military threats to other things that might negatively affect the people of the United States. High on the list of concerns is national economic security–the ability to protect or to advance economic interests in the face of circumstances that may threaten or block these interests. The United States is not economically isolated but an integral part of the world economy, doing business in world markets and influencing–and being influenced by–the international financial environment, economic policies, and commercial and financial infrastructure. Thus, enhancing international economic security enhances U.S. economic security–and its physical security, because some situations can escalate to the point that they require a military response. A strong military to respond to such a threat requires strong economic underpinnings–and economic instruments can serve as a nonmilitary form of defense, even as defense considerations can affect the economy.