New America on Foreign Policy

As a result of the unprecedented 41 drone strikes into Pakistan authorized by the Obama administration, aimed at Taliban and al Qaeda networks based there, about a half-dozen leaders of militant organizations have been killed--including two heads of Uzbek terrorist groups allied with al Qaeda, and Baitullah Mehsud, the leader of the Pakistani Taliban--in addition to hundreds of lower-level militants and civilians, according to our analysis.[1]

As President Obama receives formal recommendations in the coming months on issues surrounding the U.S. military prison at Guantanamo Bay, Cuba, it is crucial that policymakers and the public have an accurate picture of the threat to the United States posed by those detainees already released. Contrary to recent assertions that one in seven, or 14 percent, of the former prisoners had "returned to the battlefield," our analysis of Pentagon reports, news stories, and other public records indicates that the number who were confirmed or suspected to… more

Over the past several years, the cause of democracy promotion has been at the forefront of U.S. foreign policy. Along with heightened rhetorical attention to democratization, the Bush administration's so-called Freedom Agenda brought increased resources for democracy promotion activities and created new programs (including the Millennium Challenge Corporation and the Middle East Partnership Initiative) geared toward spurring democracy and encouraging good governance.

With the London Summit rapidly approaching, I urge participants to take bold steps to address the fundamental structural issues in global finance that have, in part at least, led to the current economic crisis. I recognize that there remains a debate between those who believe that the current economic environment compels a dramatic rethink of the foundations, systems and structures upon which the global economy operates, and those who believe that such sweeping reforms are both unnecessary and politically

Thank you Mr. Chairman and members of this committee for the honor of addressing you today.  Mr. Chairman, it is a tribute to your leadership that this roundtable is being convened in recognition of the centrality of economic and financial issues to American foreign policy. 

The United States, which entered into over $23 billion in Foreign Military Sales (FMS) agreements in fiscal year (FY) 2007 and $32 billion in FY 2008 (see table 1), is the world's largest arms supplier. U.S. exports range from combat aircraft to Pakistan, Morocco, Greece, Romania, and Chile to small arms and light weapons to the Philippines, Egypt, and Georgia. In 2006 and 2007, the United States sold weapons to over 174 states and territories, a significant increase from the… more

The United States is the world's leading arms exporting nation, accounting for over 45 percent of all weapons transferred globally in 2007.

While the U.S. military has long relied on private contractors, the outsourcing of key national security functions has increased dramatically over the past five and a half years. From intelligence gathering and logistical support to personal security services, training, and operational support tasks, the efforts of contractors are now integral to the success of America's security and stabilization missions around the world. Since the beginning of the Iraq War, one dollar out of every five has been spent on private contractors. By most estimates, there are more private… more

In late May, some 40 Pakistani journalists received a summons to an unusual press conference held by Baitullah Mehsud, the rarely photographed leader of the Pakistani Taliban, who is accused of orchestrating the 2007 assassination of Benazir Bhutto, sending suicide bombers to Spain earlier this year, and dispatching an army of fighters into Afghanistan to attack U.S. and NATO forces in recent months. Surrounded by a posse of heavily armed Taliban guards, Mehsud boasted that he had hundreds of trained suicide bombers ready for martyrdom.

It was… more

The next U.S. president, whether it is John McCain or Barack Obama, should reorient American policy toward the Islamic Republic of Iran as fundamentally as President Nixon reoriented American policy toward the People's Republic of China in the early 1970s. Nearly three decades of U.S. policy toward Iran emphasizing diplomatic isolation, escalating economic pressure, and thinly veiled support for regime change have damaged the interests of the United States and its allies in the Middle East. U.S.-Iranian tensions have been… more

As a result of the 2008 Beijing Olympics, China will be exposed to a greater global audience -- and greater global scrutiny -- than ever before. In order to put its best foot forward, the Chinese government has spent record amounts on everything from increased security to environmental cleanup.

But there are some Chinese policies that are too controversial to be "cleaned up" at the… more

Over the past several months, few issues in international finance have generated as much discussion and comment as have Sovereign Wealth Funds (“SWF”s). This Committee deserves enormous credit for recognizing the potentially significant foreign policy consequences of the rapid accumulation by foreign governments of enormous, growing pools of capital. These large concentrations of government controlled wealth raise complex issues that transcend traditional boundaries between foreign policy, financial markets, international economics and national security.

It is my belief, however, that too much… more

The Honorable Nova Daly Deputy Assistant Secretary U.S. Department of the Treasury

Dear Mr. Daly:

We are pleased to submit these comments with respect to the recently proposed regulations regarding the implementation of the Foreign Investment and National Security Act of 2007 (“FINSA”) amendments to Section 721 of the Defense Production Act of 1950 (“Exon-Florio”).

As a general matter, we believe that U.S. and global economic health are strengthened by the free flow of investment capital and by the increased liquidity that open… more

America’s basic infrastructure is outdated, worn, and in some cases, failing. Most experts agree that it is inadequate for meeting the demands of the 21st-century global economy. If we are to remain competitive, we must invest in capital assets like roads, ports, bridges, mass transit, water systems, and broadband infrastructure. Many other countries -- both rich and poor -- see investing in infrastructure as imperative for economic survival and success in an increasingly competitive economic environment. But the United States… more

The ongoing wars in Iraq and Afghanistan have spurred strong growth in Pentagon prime contract awards to companies involved in armored vehicle production and fuel supply. In the mean time, major arms makers like Lockheed Martin and Northrop Grumman have experienced much more modest growth rates.

A New America Foundation analysis of the Department of Defense's top ten contractors for FY 2007 found that the greatest increase by far from the prior year was posted by… more

Five years after the US -led invasion, Iraq remains a deeply violent and divided society. Faced with one of the largest displacement and humanitarian crises in the world, Iraqi civilians are in urgent need of assistance. Particularly vulnerable are the 2.7 million internally displaced Iraqis who have fled their homes for safer locations inside Iraq. Unable to access their food rations and often unemployed, they live in squalid conditions, have run out of resources and find it extremely difficult to… more

The Department of Energy (DOE) plans to undertake an extensive, multi-billion dollar investment in new nuclear weapons facilities and new nuclear warhead designs. The initiative, known as “Complex Transformation,” is unnecessary on strategic and technical grounds, not to mention exorbitantly expensive. The various plans being considered by the DOE have more to do with bailing out the nuclear weapons industry than they do with determining what size complex makes sense in an era of nuclear arms reductions. At a minimum,… more

By way of introduction, I spent most of the last seventeen years working as an investment banker and private equity investor based primarily in London, England. This experience, I believe, gives me a somewhat different perspective on Sovereign Wealth Funds and the role that they play in today’s international capital markets. Currently, I co-direct the Global Strategic Finance Initiative at the New America Foundation. The New America Foundation is a non-profit, post-partisan public policy institute in Washington D.C.

Over the past several months, few issues in international finance have generated… more