Economic Instruments of Security Policy
Influencing Choices of Leaders
Economic turmoil has spread throughout the western world, but terrorists and
other threats to national security were not put out of business by the Great Recession.
Economic Instruments of Security Policy explores the critical question: do
the United States and its allies still maintain effective economic tools to influence the
behavior of those who seek to cause us harm?
Governments have at their disposal many economic instruments to promote
national security, such as sanctions, foreign aid, international trade, international
finance and laws blocking funds for international terrorism. This book examines the use of
theses economic policies and addresses how best to measure their effectiveness.
Table of Contents
Acknowledgments
Forward to the Second Edition
Introduction
PART I: THE INDIVIDUAL
States Don't Make Decisions; People Do
Adam Smith and Twenty-first Century National Security
Maximizing, Rationality, and the Bounds of Institutions
Experimentation in Economic Science
The Economics of Autocracies
Some Are Ranchers and Some Are Wolves
Predicting the Dictator: A Theoretical Model
Principles for Policymakers
PART II: THE WORLD
Castro's Cuba and U.S. Sanctions
The Cuban Economy in the 1990s
Dictating Economic Performance
Sanctions: Truth in Advertising
Democracies and the Politics of Trade
Free Trade Agreements
Case Study: The PRC and Most Favored Nation Status
Case Study: Pistachios, Rugs, and Relationship-Building
Study: India and Commerce
Case Study: The PRC, Public Disclosure and Verified End Users
Import Restrictions
Case Study: The PRC and non-market economies
Trade as a Tool: Roundup
Money and Finance as Security Tools
Money
Inflation
Case Study: Swiss dinars and Saddam dinars
Case Study: Internet Marketplace
Case Study: Money Laundering in Ukraine
Exchange Rate Choices and National Security
Choosing an Exchange Rate
Case Study: Dollarization
Choosing Power Over Growth, Again
Maximizing Over Time Through Lending and Borrowing
International Finance
Case Study: International Financial Institutions and the East Asian Financial Crisis
Case Study: Tibet vs. the World Bank at Qinghai
Sovereign Lending and Foreign Direct Investment
Debt Dynamics and Debates
Case Study: Debt Forgiveness - Republic of Congo
Case Study: Did the Great Recession Change the Competitive Equation?
Summary: Money, Exchange Regimes, Debt
Curing Poverty Helps National Security
Terrorism, Insurgency, and Poverty
Theory of Growth
Incentives and Growth
De-industrialization: When Countries Do Not Invest in Domestic Capacity
Case Study: The Millennium Challenge Account
Case Study: The African Growth and Opportunity Act
Case Study: Saudi Arabian Charities
Case Study: Iraq
Case Study: Syria
Case Study: Law Enforcement Against al Qaeda
Case Study: Brothers to the Rescue and the "Anti-Terrorism Amendment" to the
FSIA
Conclusion
Appendix
Endnotes
242 pages, Paperback
