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Edward Corcoran

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The Emerging Strategic Transformation

Posted: 04/25/11 10:46 AM ET

The new millennium is bringing an epochal shift that is fundamentally altering the challenges facing the nation. Although there is broad awareness of many elements of this shift, the overall transformation is almost totally unrecognized.


From time immemorial, the central security challenge has been physical protection against attack by enemies. The United States achieved its independence by military means, and soon thereafter was fighting foreign invaders on its own soil. Subsequently, it fought in two world wars and then a conflict in Korea. The Soviet challenge, including direct nuclear threats to the continental United States, gave impetus to a strong military posture, which has continued in the face of the residual Russian challenge, a rising Chinese challenge, and emerging challenges from Iran, North Korea, and Venezuela.


U.S. military strength has been grounded in U.S. economic dominance, which also provided broad economic benefits. For over a century, economic conditions insured the industrialized world, led by the United States, received agricultural commodities and raw materials at bargain prices. The rise of the Organization of Petroleum Exporting Countries (OPEC) put a serious crimp in the control of that one specific, though critical, commodity, but did little to change the overall favorable trade balance. By the end of the XX Century, the United States, with 5% of the world's population, consumed some 25% of its production. The U.S. standard of living set the standard for prosperity globally.


The strategic challenges of the XX Century had been military and the United States met them directly. When Iraq invaded Kuwait, the United States was able to rapidly lead a broad coalition in a short, intense, and overwhelmingly successful campaign. Entering the new millennium, it stood at the pinnacle of power, dominating the globe in a way few nations ever have.


But the new millennium has not been kind to U.S. primacy, bringing a host of challenges:


  • A newly assertive Russia whose strong-willed, autocratically inclined leader, skillfully uses Russian nationalism to re-assert Russia's role as a global power;

  • A rising China, buoyed by a surging economy is also stoking national pride and directly challenging U.S. positions militarily in its own region, even posing a vague though very bothersome threat to U.S. space assets;

  • Radical Islamic groups, particularly al Qaeda, have stirred strong anti-American sentiments throughout the Muslim World;

  • Iran continues to frustrate efforts to restrain its nuclear program, while actively supporting radical groups and building ties with an increasingly autocratic and anti-American Venezuela.


The U.S. military response proved to be both very costly and of questionable effectiveness in Iraq, where a trillion dollars, several thousand U.S. lives and tens of thousands of Iraqi lives have produced a fragile state strongly influenced by Iran. A parallel effort in Afghanistan is bogged down. And it is unclear just how military assets could be usefully employed against Iran, Venezuela or Pakistani radicals.


The United States faces only a minimal direct physical threat. Russia's remaining nuclear arsenal could undoubtedly decimate the United States, but it is hard to construct any scenario where that would happen. China's arsenal is much less capable of delivering a devastating blow; at any rate, China seems determined to be a regional rather than a global power. Iran and North Korea pose marginal direct threats. Terrorists pose a direct threat, but its only strategic dimension is with biological or nuclear attacks. In this regard, the stability of Pakistan is particularly troublesome due to the potential for radical Islamic elements to take control. While a strong U.S. nuclear posture deters nuclear challenges, it also gives nuclear weapons high salience. This promotes nuclear proliferation, intensifying the threat, rather than decreasing it. U.S. military assets are also the major element in global maritime security. But military force is also proving difficult to use in this sphere -- Somali pirates now hold some 30 seized vessels despite an international naval protection effort.


Overall, faced with growing global instabilities and uncertain conditions, there is a strong U.S. tendency to strengthen its military capabilities to be better prepared to meet unforeseen contingencies. Therein lies the problem -- the major contingencies of the XXI Century are not susceptible to military solutions, even for security challenges. Iraq and Afghanistan show its limitations, while turmoil in the Middle East, radicalism and instability in Pakistan, intransigence by Iran and North Korea, and Somali pirates all pose challenges that military force cannot adequately address. But the biggest problem is that the changing global situation poses new challenges for which military force is irrelevant. Globalization with a newly networked world means that that the United States can no longer dominate the global economy and enjoy a grossly disproportionate share of global resources. This has several major implications:



  • Partly because of increased competition from rising economic powers, commodity prices have risen sharply since 2000; oil's fourfold increase to over $100 a barrel is representative. These prices restrict the U.S. share of global resources and have greatly increased the amount of U.S. debt held abroad. Interest on this debt together with the higher prices undermines the entire U.S. economy.

  • Since wages in developing nations remain significantly lower than domestic rates, many corporations have moved manufacturing operations abroad, reducing domestic investment, profits, taxes and revenues. A more recent development has been the shift of intellectual jobs abroad. The new global marketplace is a main reason for high unemployment and underemployment.

  • Immigration has become a weakness. Globalization has brought upward mobility to a halt. Immigrants are basically consigned to a permanent underclass; merging with the chronic unemployed, they form a growing disaffected population.

  • The challenges of globalization merge with the challenge of global demographics. Populations in the developing world have a high percentage of young, unemployed men; the global internet insures that they are aware of their situation and gives them a means of doing something about it, as shown by the current turmoil in the Middle East. Similar imbalances in Africa and Asia only portend more troubles. This is especially problematic for China, where worsening economic performance could easily drive a beleaguered leadership to a strongly nationalist, confrontational stance.


Global warming exacerbates this situation. Although catastrophic effects are unlikely, disruptive impacts are almost certain, including a modest rise in sea level, more severe storms, and major shifts in agriculture and rainfall. Food and water shortages will certainly worsen population pressures. Coastal destruction is already apparent in some areas and can only be expected to worsen. Global warming or not, few nations are prepared to address inevitable localized catastrophes, exemplified by Hurricane Katrina and the recent Sendai earthquake and tsunami, much less global calamities such as an unexpected pandemic or a solar flare destroying existing satellite networks.


Domestically, these looming problems are already causing rising internal friction. The ongoing budget crisis makes it clear that there are not enough assets to address crucial domestic needs, without even considering environmental disruption, occasional natural disasters, or a worsening international economic climate. The highest incarceration rate in the world starkly attests to disaffection within the United States, as do continuous reports of murder, misery and mayhem. Such disaffection can only be complicated by the worsening inequality of wealth distribution coupled with chronic unemployment and millions of illegal aliens. The 1965 Watts riots strikingly demonstrated the power of pent up frustration; two aspects are notable: the rioters burned their own neighborhoods and the events did not spread. But one can easily imagine, for instance, unruly mobs firebombing upscale neighborhoods and the example spreading to other localities. Alternatively, the 2002 sniper attacks in Washington showed how just two determined individuals could terrorize a city for an extended period. It is such internal disruption that could devastate the nation, and it is much more likely than a Russian nuclear strike.


The central fact of globalization is that a prosperous United States can only exist in a prosperous world. It is no longer external force that threatens to devastate the United States, but economic degradation. For the first time in history, military forces are not central to addressing the major challenges facing the nation. In fact, assets dedicated to nonproductive military use undermine the economic conditions necessary to avoid turmoil, both globally and inevitably domestically. Military missions need to be rigorously reassessed in terms of overall national security requirements, limited to directly addressing substantial current risks. As Afghanistan vividly illustrates, failure to promote development in a stable situation can rapidly lead to much larger nonproductive requirements. By shifting assets to developmental uses, the United States can set the example globally for reducing the arms trade and the extensive diversion of assets into nonproductive military uses. Indeed, such a shift in focus is essential if the world is to avoid a global meltdown in the coming decades.


Overall, the new millennium poses an entirely new challenge: shrinking national assets facing increasingly nonmilitary security threats that are much more amorphous, harder to even define, much less address -- global warming is a good example. So it is too easy to keep focusing on the kinds of threats we are more familiar with -- military challenges -- even if this means that larger issues go unaddressed.

 
The new millennium is bringing an epochal shift that is fundamentally altering the challenges facing the nation. Although there is broad awareness of many elements of this shift, the overall transfor...
The new millennium is bringing an epochal shift that is fundamentally altering the challenges facing the nation. Although there is broad awareness of many elements of this shift, the overall transfor...
 
 
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11:05 PM on 04/27/2011
Interesting discussion. My belief is the simple theory that every decision has effectiveness and consequence, whether good or bad. Throughout the years, especially the 20th century, America has made plenty of opportunistic decisions for itself with total disregard to the rest of the world. Most of the decisions that it has made economically have either been followed by or the result of military conflict. Unfortunately, a very high concentration of war-minded individuals have been "running" this country with policies that involve force and bullying rather than diplomacy and, dare I say, morality. Why? Maybe, just maybe, some of the original ideas and values this country was founded on have backfired on us and the perpetual snowballing is out of our control. Perhaps, a reformation of policy would suffice? Maybe a few apologies? It worked for Japan, it worked for Russia, AND it worked China. The proof is on their spreadsheets. Believe it.
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Lock Piatt
07:44 PM on 04/27/2011
My God, this is a piece written by a person not that familiar with the manufacturing industries and the realities of markets. Many simular article were printed in the 80s about the Japanese replacing the USA as the dominate economy - did not happen. The piece does sight on very important item and that is that America consumes 25% of the production.

Where will China. Russia and India replace 25% of their sales? It would lead to revolts in all of those nations. Most global investors are going to limit their investment in those nations as the global economy recovers. Keep in mind America is still number one in manufacturing but it is high automation products.
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Dredd
Our government is a wartocracy.
02:26 PM on 04/26/2011
"The United States achieved its independence by military means"

False. Independence is a way of thinking.

Read from the "Father of The US Constitution", then resign from the War College sir:

http://powertoxins.blogspot.com/2009/11/greatest-source-of-power-toxins.html
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Yeuk Moy
02:51 PM on 04/26/2011
And our founding fathers would have been thinking independent thoughts as they rotted in prison, assuming they were not hung as traitors. Conception and execution are two sides of the same coin.
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Dredd
Our government is a wartocracy.
02:20 PM on 04/26/2011
There are nations that can do severe damage to us economically without weapons, but there is not vice versa.

http://blogdredd.blogspot.com/2011/04/phase-five-of-currency-wars-2.html
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Yeuk Moy
02:39 PM on 04/26/2011
Techincally speaking, we can economically attack other countries, but at a large economic cost to ourselves.
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powercosmic
The Anti-Christ
02:18 PM on 04/26/2011
Wow! I see the problem clearly now, given your credentials the problem seems to be the "experts" who are in charge, as you seem to have been.

Clearly you people lived in a bubble of like-minded group-thinkers.

The USA doesn't run the world and it never did. US Corporations, specifically, Big Oil, have herded our foreign policy into the mess that it is. Every aspect of our foreign policy is based on now flawed "Grand Area" idealism about the role of the US military in the world.

This con-job was carried out by Big Oil people in the US government. Jimmy Carter warned us all in 1980, why didn't you even bother to mention JC or the Grand Area policies?

Look, you must be paid to delude people.

The USA will soon not be able to pull-off the Grand Area farce that requires that we spend $1.2 TRILLION dollars a year (funded + discretionary) for much longer.

Please start writing the TRUTH.
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Dredd
Our government is a wartocracy.
02:16 PM on 04/26/2011
The War College, where they teach war, is not a source of good economic information.

http://blogdredd.blogspot.com/2011/04/momcom-mean-welfare-queen-2.html
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William50
11:38 AM on 04/26/2011
One large role in the three wars is to change the focus of the American people away from the harshness facing them. It has failed.
Economics, world or single country means producing and selling products. On the world stage it means manufacturing, giving an extra value to the resources you use and selling it to other nations to gain their wealth. In America on point that has allowed this a hundred time more them jobs going over seas and the cut in wages is Free Trade. No matter what you may wish to call the practice North American, Pan American free trade means a destruction a lowering of the Americans workers ability to afford to live in America.
When the world see the single largest nation begin to destroy itself for greed they also see the military chance to nibble at the edges of that countries power. Remaking the American dream is the best way to destroy the strength of the radical religious movements. Will we ever destroy them? No. Will they be a danger to America? In the limited way of 9/11 yes! Can they defeat the USA? Only with the help of US business greed and two parties that have lost touch with what America is!
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TrekBear
10:59 AM on 04/26/2011
I think the assessment of Al-Queda's role in stirring up anti-American sentiment in the Middle East is off. American actions have had more of an impact in generating anti-US feelings than a relatively small and disorganized terrorist group has. Most Muslims are moderate - it's the clerics that tend more towards extremeism.
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Yeuk Moy
02:42 PM on 04/26/2011
I would argue that the number of extreme clerics are not as numerous as we believe (still quite a lot though), they are simply louder and get more coverage.
09:32 AM on 04/26/2011
Probably without meaning to do so, this article provdes a good modern exmple of how empires fall. Expansion abroad coupled with loose fiscal policy is how it always happens.

We need to lay down he mantle of empire. Stop the current wars, and bring the troops home then discharge them. Stop interventions into the affairs of other countries, and defend only our shores and the free passage of our shipping.

We also need to scrap the war powers act that allows the executive to get us into wars, and the military needs to abandon the idea of "limited war".
06:58 AM on 04/26/2011
Interesting. One statement stood out as misunderstood: "The highest incarceration rate in the world starkly attests to disaffection within the United States[...]" No. The incarceration rate is a result of the failed war on drugs and the greedy prison industry.
11:27 PM on 04/25/2011
Dear Friends,

We were the worlds superpower due to our economy, not our military. Our military was a poor use of our economic outputs, while our allies were building economies we decided we wanted to be an empire.

We watch the Russian empire fail and we expanded our empire into the Middle East, Africa and middle Asia.

We defeated Russia using our economy then we wanted to be the new Russia, with troops fighting in wars all over the world, and going to areas that we have no business in.

We can still succeed, get rid of the active duty army, bring all our troops from all the bases and massively cut government spending, our economy will once again take off.
08:27 AM on 04/26/2011
Uh, where did Russia have troops fighting, other than in Afghanistan (a stupid idea on their part, after observed our example in Vietnam)?

We were the ones with "troops fighitng in wars all over the world," not Russia. And it's been that way since WW II.
10:22 AM on 04/26/2011
Dear Huff,

We both did, not a single war occurred between 1960 and 1985 that the US and Russia were not working against each other on.

Russia failed as they could not support it anymore, so we picked up the slack, and increased our military commitments around the world.
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Yeuk Moy
02:48 PM on 04/26/2011
People tend to underestimatethe cost of war, and I do not mean lives, but teh actual cost in dollars and resources. FOr a long time, the US economy wa the world economy. We could afford to logistically maintain a war anywhere in the world. The Soviet Union, as large as its Army was, never had more than 300,000 or so soldier in Afghanistan. The reason was that they could not logistically support morethan that number in a country they shared a border with.

The Vietnam War has had reprecussions many are not aware of. Ont the military side, we missed an entire arms research development cycle. But the true damage was the reduced government investment in basic research. It is something we are feeling today.
11:22 PM on 04/25/2011
Don't know about Russia, but China has a 100 year plan....what do we have?.. a negative 1 week plan trying to figure out if there is a budget stalemate? Have studied history for years now, and history tells me that the US is in for a not so pleasant future unless We as a People (including all political bents) want a better tomorrow. We continue to argue, but to what end??l. I would think that the common goal would be that we survive as a Nation without a change to our original Constitution and our rights born by that.
If future posts disagree with our Constitution and our Constitutional rights, then I would urge you to move to a different country, revoke your citizenship, be silent, or actually help rebuild the fundamentals on which we were founded.....might be a really great thing.
I'm not very much an an intellectualist, so can't respond to those who consider themselves that, but I do, simplistically, believe that the men and women that founded our country were quite brilliant and should be listened to again in this year 2011....
Time to step up and say we want a non-consumer, production driven country back.
Looking forward to the comments, and find them very interesting as well:) Plese limit comments to what you think will help our Nation survive, not negative responses that cannot help all of us.
08:28 AM on 04/26/2011
Yes. And the article is incorrect, with 99.998% cerrtainty, that China only has regional power desires. They are no different from any other big nation (including us). They want to swagger on the world stage, too.
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gerald4
licensed mechanical and electrical engineer
10:57 PM on 04/25/2011
Industriou­s nations like China, India, Pakistan, Brazil, and other foreign nations grow wealthy and secure by creating enough products to support their needs with their farms, factories and mines, plus they earn additional currency by creating additional wealth by exporting additional products that they manufactur­ed.

The health of every other business in that economic country depends upon these productive industries­.

The only thing that will create/sav­e US jobs, preserve/r­estore the buying power of the US Dollar is reversing the trade deficit, reducing government borrowing, and/or reducing government spending, to start re-buildin­g the USA gold reserves.

Only a positive balance of trade will restore the value of the dollar, and we must accomplish this by any means possible, or accept third world poverty for the majority of our citizens. The only way to do this is to produce and export more (dollar value of) things than we import.

The only way that we can accomplish exporting US made products is to re-industr­ialize and make these products, hopefully with mostly US materials & Labor. The only way that our products will be sold abroad is if these products are either technologi­cally superior, or cheaper.”
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gerald4
licensed mechanical and electrical engineer
11:00 PM on 04/25/2011
Only re-industr­ialization willbring back jobs to the USA.

I have visited Asia several times on Business in the last part of the last century. Crime, family abandonmen­t, divorce, selling your own 12 year old (and younger) daughters for the equivalent of about $45 in the 1990's for 10 years of indentured servitude to brothels, selling your own 12 year old sons to rug weavers, and other bad things increase during these periods of economic difficulty­, such as India before they industrial­ized.
08:38 AM on 04/26/2011
Not necessarily, but the key question is what kind of work can we create that uses the people we have?

By that I mean that the traditional manufacturing jobs, mineral extraction (mining, oil, gas), and agriculture all made use of a lot of people with limited intelligence and education. Becoming a neurosurgeon is not an option for those people. Or banker, etc.

It is nice to argue that all we need is lots of good education and all our job worries will be solved, but that is simply not true. All the education in the world will not turn an unintelligent (should I say unbrilliant?) student in to a particle physicist.

So, if we don't have manufacturing jobs, then what other kinds of work are potentially viable for the 80-90% of the population that is of limited intellectual capacity, regardless of their education level?

And even if we could bring those manufacturing jobs back from China, they would just go away again, because of automation. What then?

People don't understand that this is the real problem. Technology is developing a world that doesn't need/can't use a large spectrum of the population. Then what will we do?
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10:55 PM on 04/25/2011
I would title this piece "The Redemption of Dr. Strangelove".
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realitytrumpsbull
two 'alves of coconut!
10:18 PM on 04/25/2011
The 21st century might not have America in our traditionally accustomed role as socio-political/economic centerpiece. It's a big world, with 6.9 billion people in it, the vast majority of which live outside our borders, along with the lion's share of land and resources. How can America stay relevant, in the 21st century? By innovation, development, and building up our exports, and probably also by being realistic in our expectations. Other countries also have armies, and ICBM's, and millions of poor people to feed. Where are WE headed, what are our goals, what do we want to achieve, in the world?
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gerald4
licensed mechanical and electrical engineer
11:14 PM on 04/25/2011
How can America create innovation­, developmen­t, and building up our exports unless the US education changes to emphasize Science, Technology­, Engineerin­g & Mathematic­s (STEM) instead of more historians, political scientists, social scientists, philosophers, psychologists, musicians, poets, English and other liberal arts graduates.

The USA has lost the World Technology Leadership­!
11:30 PM on 04/25/2011
Dear Reality,

Yes, where are we headed and what happens when we get there. We need to get rid of all our foreign bases, get rid of our active duty army, and focus on our economy. We have the best education system in the world but not the best students. We have the best medical system in the world, but not the the long life span, we have the most capital in the world and produce very little.


The key is to get back to basic, and people have to accept the simple fact, we all have to work and only a small percentage of us can have a nice office job pushing paper and going to meetings, we need to produce products.