Title: United States. National War College. Economics for strategists - Econ Glossary

THE NWC STRATEGIST'S GLOSSARY OFORGANIZATIONAL TOOLS OF ECONOMIC STATECRAFT
7/14/99

Introduction:
The economic tool of statecraft is far from being a monolithic instrument. It is composed of numerous organizational entities performing distinct tasks. The degree to which these entities are focused on the achievement of U.S. national security objectives varies, depending somewhat on whether or not they are direct components of the U.S. Government.

Purpose of This Document:
This paper is designed to help you have a better understanding of the nature of the economic tools of statecraft and the ways and means by which they are applied. You will find an overview of some of the key organizational elements of the economic tool. Each organization listed is hyperlinked to its site on the Internet. If you are connected to the Internet and would like to know more about the organization and its policies and programs, click twice on the link to go directly to its website.

Categorization of the Tools:
Organizations are divided into three major groups:

1. U.S. Government Agencies


2. Non-Governmental Organizations (NGOs)


3. International Organizations.

Each of the organizations in these groups is identified by a letter code reflecting the nature of the economic tool represented.

The letter codes are:

• [P] = policymaking organizations


• [T] = entities engaged in the areas of trade and development


• [S] = organizations engaged in implementing and enforcing economic sanctions


• [D] = bodies involved in international economic, humanitarian and democratic development.


I. U.S Government Agencies


• U.S. Federal Reserve (The Fed) [P]

http://www.bog.frb.fed.us/

The Federal Reserve is the central bank of the United States. Established by Act of Congress in 1913, its role is to provide the nation with a safer, more flexible and stable monetary and financial system. The Fed's duties fall into four general areas: (1) managing the nation's monetary policy; (2) supervising and regulating banking institutions and protecting the credit rights of consumers; (3) maintaining the stability of the financial system; and (4) providing uniquely specialized financial services to the U.S. government, the public, financial institutions, and foreign official institutions.


• U.S. Trade and Development Agency (TDA) [T]

http://www.tda.gov/

The U.S. Trade and Development Agency helps U.S. companies pursue overseas business opportunities. Through the funding of feasibility studies, orientation visits, specialized training grants, business workshops, and various forms of technical assistance, TDA enables American businesses to compete for infrastructure and industrial projects in middle-income and developing countries.


• Export-Import Bank of the United States (Ex-Im) [T]

http://www.exim.gov/

The Export-Import Bank (Ex-Im) is an independent U.S. Government agency that helps finance the overseas sales of U.S. goods and services. Ex-Im provides guarantees of working capital loans for U.S. exporters, guarantees the repayment of loans and makes loans to foreign purchasers of U.S. goods and services. In addition, Ex-Im furnishes credit insurance that protects U.S.orters against the risks of non-payment by foreign buyers for political or commercial reasons. Ex-Im assumes the risks that commercial lenders cannot accept. It must always conclude that there is reasonable assurance of repayment on every transaction financed.1.d. Overseas Private Investment Corporation (OPIC) [T]_ HYPERLINK http://www.opic.gov/ __http://www.opic.gov/_The Overseas Private Investment Corporation is a financially self-sustained, independent U.S. Government agency that sells services tes to assist U.S. companies investing in developing economies around the world. OPIC accomplishes this by aiding U.S. investors through three principal activities designed to promote overseas investment and reduce the associated risks: 1) insuring investm against a broad range of political risks; 2) financing businesses through loans and loan guaranties; and 3) financing private investment funds that provide equity to businesses.1.e. Office of the U.S. Trade Representative (USTR) [T]_ HYPERLINK http://www.ustr.gov/ __http://www.ustr.gov/_The Office of the U.S. Trade Representative (USTR) is responsible for developing and coordinating U.S. international trade, commodity, and direct investment policy, and leading or directing negotiations with other countries and organizations (e.g. WTO, GATT) on such matters. The U.S. Trade Representative is a Cabinet member who acts as the principal trade advisor, negotiator, and spokesperson for the President on trade and related investment matters. Through an interagency structure, the USTR coordinates trade policy, resolves agency disagreements, and frames issues for presidential decision.1.f. Office of Foreign Assets Control, U.S. Department of the Treasury (OFAC) [S]_ HYPERLINK http://www.treas.gov/ofac/ __http://www.treas.gov/ofac/_The Office of Foreign Assets Control of the U.S. Department of the Treasury administers and enforces economic and trade sanctions against targeted foreign countries, organizations sponsoring terrorism and international narcotics based on U.S. foreign policy and national security goals. OFAC acts under presidential wartime and national emergency powers, as well as authority granted by specific legislation.


• Office of Defense Trade Controls, U.S.Department of State [S]

http://www.pmdtc.org/

The Office of Defense Trade Controls manages the export of defense and related articles and services. It achieves this through its approval authority on license applications and other requests for defense trade exports. It also oversees matters related to defense trade compliance, enforcement and reporting.


• United States Agency for International Development (USAID) [D]

http://www.info.usaid.gov/about/

USAID is the independent government agency that provides bilateral economic development and humanitarian assistance to advance U.S. economic and political interests overseas. The primary objective of the U.S. foreign assistance program is to promote sustainable economic development in poor countries in order to 1) improve poor people's lives, 2) prevent political crisis and promote stability, and 3) advance democracy. Aid is provided largely through specific grant-funded projects supporting technical assistance, training and commodities.


II. Non-Governmental Organizations (NGOs): An Illustrative Listing


• CARE [D]

http://www.care.org/

CARE is one of the largest private international relief and development organizations.. Founded in 1945 to send emergency relief packages of food, clothing and medicine to Europe and Asia after World War II, CARE broadened its scope to help poor people around the world. Its programs focus on disaster relief and development, including, small business assistance, primary health care, nutrition, girls' education, agriculture and family planning.


• Agricultural Cooperative Development International/ Volunteers in Overseas Cooperative Assistance (ACDI/VOCA) [D]

http://www.acdivoca.org/

ACDI/VOCA is a private, nonprofit international development organization providing high-quality technical expertise at the request of farmers, agribusinesses, cooperatives, and private and government agencies abroad. ACDI/VOCA advances development goals through a program that draws on accomplished specialists, many of whom are volunteers, to carry out its activities.


• International Committee of the Red Cross (ICRC) [D]

http://www.icrc.org/eng

The International Committee of the Red Cross (ICRC) is an independent organization whose humanitarian mission is to protect the lives and dignity of victims of war and internal violence and to provide them with assistance. In situations of conflict, the ICRC directs and coordinates international relief activities. It also seeks to prevent suffering by promoting and strengthening humanitarian law and universal humanitarian principles.


• The Carter Center [D]

http://www.cartercenter.org/

The Carter Center seeks to prevent and resolve conflicts, enhance freedom and democracy, and improve health. It is guided by a fundamental commitment to human rights and the alleviation of human suffering. The Carter Center promotes peace through collaborative efforts to prevent and resolve conflicts, enhance freedom and human rights, and build strong democracies.


• International Republican Institute (IRI) [D]

http://www.iri.org

IRI conducts programs outside the U.S. to promote democracy and strengthen free markets and the rule of law. Programs are tailored to the needs of pro-democracy activists in over 30 countries and include, for example, grassroots political organizing, campaign management, polling, parliamentary training, judicial reform and election monitoring. By aiding emerging democracies, IRI seeks to play a role in helping bring greater stability to the world. Stable democracies not only further the cause of peace, but also enhance American opportunities for business investment and trade. IRI is nonpartisan and is not part of the Republican Party.


• Partners of the Americas [D]

http://www.partners.net

Founded in 1964 as the people-to-people component of the Alliance for Progress, Partners of the Americas is engaged in international cooperation and training. Each of the 60 "partnerships" links a state or region of the U.S. with a country, city or region in Latin America or the Caribbean. The two sides of a partnership work together to carry out a wide range of activities to improve the quality of life in the communities of Latin America and the Caribbean.


• World Resources Institute (WRI) [D]

http://www.wri.org/wri/

The World Resources Institute's mission is to move human society to live in ways that protect Earth's environment and its capacity to provide for the needs and aspirations of current and future generations. WRI provides - and helps other institutions provide -objective information and practical proposals for policy and institutional change that will foster environmentally sound, socially equitable development.


III. Key International Organizations


• World Trade Organization (WTO) [T]

http://www.wto.org/

The World Trade Organization is the only international organization dealing with the global rules of trade between nations. The WTO's overriding objective is to help trade flow smoothly, freely, fairly and predictably. It does this by: 1) administering trade agreements, 2) acting as a forum for trade negotiations, 3) settling trade disputes, 3) reviewing national trade policies, 4) assisting developing countries in trade policy issues and 5) training programs.


• Asia-Pacific Economic Cooperation (APEC) [T]

http://www.apecsec.org.sg/

The Asia-Pacific Economic Cooperation (APEC) group was established in 1989 in response to the growing interdependence among the economies of that region. Begun as an informal dialogue group, APEC has since become the primary regional vehicle for promoting open trade and practical economic cooperation. Its goal is to advance Asia-Pacific economic dynamism and sense of community.


• Asian Development Bank (ADB) [D]

http://www.asiandevbank.org/

The Asian Development Bank, a multilateral development finance institution, was founded in 1966 to promote the social and economic progress of the Asian and Pacific region. The Bank's principal functions are 1) the extension of loans and equity investments for the economic and social development of its developing member countries; and 2) the promotion and facilitation of investment of public and private capital for development purposes.


• Inter-American Development Bank (IDB) [D]

http://www.iadb.org/

The Inter-American Development Bank (IDB) is the oldest and largest regional multilateral development institution. It was established in 1959 to help accelerate economic and social development in Latin America and the Caribbean. The Bank's operations cover the entire spectrum of economic and social development. Annual lending has grown from the $294 million in 1961 to $10 billion in 1998.


• International Monetary Fund (IMF) [D]

http://www.imf.org/

The International Monetary Fund (IMF) was established in 1945 as the result of a conference held in Bretton Woods, New Hampshire. It was created to 1) promote international monetary cooperation, 2) facilitate the expansion and balanced growth of international trade, 3) promote foreign exchange stability, 4) make resources temporarily available to members experiencing balance of payments difficulties, and 5) shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members. The Fund not only lends resources, but also provides technical assistance and advice to requesting members.


• Organization for Economic Co-operation and Development (OECD) [D]

http://www.oecd.org/

The 29 member countries of the OECD are provided with a setting that enables them to discuss, develop and perfect economic and social policy. Such exchanges may lead to agreements to act in a formal way - for example, by establishing legally binding codes for the free flow of capital and services or agreements to crack down on bribery. Importantly, discussions within the OECD make for better-informed work within member governments on a broad spectrum of public policy and clarify the impact of national policies on the international community.


• United Nations Development Program (UNDP) [D]

http://www.undp.org/

UNDP's mission is to help countries achieve sustainable human development. It seeks to accomplish this by assisting them to build a capacity to design and carry out development programs in areas such as poverty eradication, employment creation, the empowerment of women and the protection and regeneration of the environment. UNDP also acts to help coordinate the development efforts of other components of the United Nations family (e.g. UNICEF, UNHCR, the World Food Program), as well as those of other international development entities (e.g. bilateral donors such as USAID).


• World Bank (IBRD) [D]

http://www.worldbank.org/

Established along with the IMF as a result of the 1944 Bretton Woods Conference, the World Bank (also known as the International Bank for Reconstruction and Development) offers loans, advice, and an array of customized resources to more than 100 developing countries and countries in transition. It does this in a way that maximizes the benefits and cushions the shocks to poorer countries as they play a greater part in the world economy. The World Bank is the largest provider of development assistance, committing about $20 billion in new loans each year. The Bank also plays a vital role (along with the UNDP) in coordinating with other organizations - private, government, multilateral, and non-government - to ensure that all resources are used to full effect in supporting a country's development agenda.