Issue No. 5, Winter 2019 Enterprise Report Restoring Liberty, Opportunity, and Enterprise in America Defending American Leadership By AEI President Robert Doar As we enter the new year, I am full of gratitude for the excellent work of AEI scholars and the support of the AEI community in 2019. I am thankful for the warm welcome I received from many of you in my first six months as president of AEI, and I look forward to meeting more AEI supporters and community members in the coming year. The year ahead is sure to hold many challenges for our country. This is, however, precisely the moment that AEI’s investments in long-term visionary thinking and empirical scholarship will pay off. In the past year, AEI has bolstered our scholar ranks with key hires in Social, Cultural, and Constitution Studies and Domestic Policy Studies. At every opportunity, these and other AEI scholars will push back against ideas that hinder a free and open economy or promote antidemocratic values around the world. One area that will be hotly debated in a contentious election year—both in Washington and at kitchen tables across the country—is foreign policy. The long-standing consensus on America’s role in the world is breaking down. This “The year ahead is sure to hold many challenges for your country. This is, however, precisely the moment that AEI’s investments in long-term visionary thinking and empirical scholarship will pay off.” challenge requires a vigorous and clear defense of a strong American presence on the world stage—advocating for free people, free trade, democracy, self-government, and strong alliances that protect weaker states from the reach of more powerful nations such as China, Iran, and Russia. Our nation needs new and innovative thinking about the best ways to bring these values to bear on today’s global realities. At this critical time in our nation’s history, I am pleased to announce that we have named Kori Schake to lead these efforts as the incoming resident scholar and director Robert Doar of AEI’s Foreign and Defense Policy team. Kori’s experience working under President AEI President and George W. Bush at the State Department, Defense Department, and National Security Morgridge Scholar Council, as well as her highly respected academic work and popular writings, makes her the right choice to lead our foreign and defense team. Most importantly, Kori understands that the United States is an exceptional nation that plays a special role in the world. You can read more about her background on page 4 of the Enterprise Report. I would also like to express my gratitude to AEI’s longtime vice president of Foreign and Defense Policy, Danielle Pletka, who decided in June to step down from her managerial responsibilities to focus on her own scholarly work. Under her leadership, the team has achieved new heights and has been an unparalleled defender of American values and leadership. I am grateful that Dany is staying on as an AEI senior scholar and that we will continue to benefit from her scholarship and mentorship. As you will read in the pages of this Enterprise Report, Dany’s successor will be leading an extremely productive and talented group of scholars. On issues from veterans’ affairs to Chinese demographic change to instability in the Middle East, AEI scholars are making original, valuable contributions that deepen our understanding of our country’s challenges, bolster our national security, and advance the case for freedom around the world. You will also read about AEI’s three newest trustees—Martin Eltrich, Jody Jonsson, and Pat Neal—and the efforts of Andrew Klaber, a leader in AEI’s Enterprise Club. With a strong bench of scholars and the leadership of these AEI community members—and supporters like you—AEI is prepared to face the challenges of the coming year with intelligent, fact-driven, and civil analysis. Thank you for your support. AEI Annual Dinner and Irving Kristol Award Honors Ambassador Nikki Haley On October 29, nearly 2,000 members of the AEI community gathered in Washington, DC, to honor former US Permanent Representative to the United Nations and Governor of South Carolina Nikki Haley with the Irving Kristol Award, the highest honor conferred by AEI. Amb. Haley’s remarks focused on the principles and values that make America an exceptional nation—equality before the law, freedom, and inalienable rights—and the importance of leading “Equality before the law. Freedom. Inalienable rights. These are not the world in accordance with those abstractions. They are our inheritance as human beings. The Declaration values. Her remarks also touched of Independence outlined them. The Constitution established them as a on her experience as the child of system of government. It is these sacred principles that make me optimistic. immigrants to the United States, They anchor our nation. And they show us the way forward.” the importance of respect for the Constitution, and why she is optimistic “We are a nation with a history, borders, and a common language. about the country’s future. We are also the first nation devoted to a higher good.Our beliefs are During her time at the UN, Amb. Haley what make us Americans. Our Constitution is what allows this great experiment stood out for effectively orchestrating the in democracy to survive and thrive.” adoption of stringent sanctions against —Amb. Nikki Haley North Korea, educating members about the dangers of the Iranian regime, fighting reforming education, and moving people Please visit www.aei.org/research for America’s ally Israel, and driving the from welfare to work. She recently -products/speech/2019-irving- passage of a security arms embargo released a memoir reflecting on her kristol-award-remarks/ to read against South Sudan. Her governorship time in public office titled With All Amb. Haley’s Irving Kristol Award of South Carolina was marked by Due Respect: Defending America with speech and view video of the event. opening markets, reducing regulation, Grit and Grace (St. Martin’s Press, 2019). 3 Kori Schake Named New Director of AEI New Fellow AEI Foreign and Defense Policy Studies Joins Tax Policy Team Kori Schake is the British to American Hegemony (Harvard incoming resident University Press, 2017); State of Disrepair: scholar and director of Fixing the Culture and Practices of the foreign and defense State Department (Hoover Institution Press, policy studies at 2012); and Managing American Hegemo- AEI. Schake was ny: Essays on Power in a Time of Dominance the deputy director- (Hoover Institution Press, 2009). general of the She is also coeditor, along with former International Institute Secretary of Defense Jim Mattis, of War- for Strategic Studies in London. She has riors and Citizens: American Views of Our Kyle Pomerlaeu recently joined AEI had a distinguished career in government, Military (Hoover Institution Press, 2016). as a resident fellow focusing on tax working at the US State Department, Schake has been widely published issues. He was previously the chief the US Department of Defense, and the in policy journals and the popular press, economist and vice president of National Security Council at the White including in CNN.com, Foreign Affairs, economic analysis at the Tax Foundation, House. She has also taught at Stanford, Politico, New York Times, Wall Street where he led the tax modeling team West Point, Johns Hopkins University’s Journal, and the Washington Post. She and oversaw the research of the School of Advanced International Studies, is a contributing writer at the Atlantic Center for Economic Analysis. His National Defense University, and the and War on the Rocks. work has been cited in most major University of Maryland. Schake has a PhD and MA in govern- media outlets throughout the country. Schake is the author of five books, ment and politics from the University of Pomerlaeu holds an MPP from the among them America vs the West: Can the Maryland, as well as an MPM from the McCourt School of Public Policy at Liberal World Order Be Preserved? (Penguin University of Maryland School of Public Georgetown University. Random House Australia, Lowy Institute, Policy. She received a BA in international 2018); Safe Passage: The Transition from relations from Stanford University. New Trustees Elected to AEI Board “We are honored to have new board members who share AEI’s commitment to open inquiry, vigorous debate, and the advancement of freedom and opportunity for all. Their advice and guidance are key in this new chapter for the Institute, and I know they will greatly contribute to AEI’s culture of integrity, intellectual rigor, and excellence.” —Robert Doar Martin Eltrich III is a partner at AEA the Management Committee of Capital been a home builder and community Investors LP, where he leads the consumer Group, one of the largest mutual fund developer on Florida’s Gulf Coast. Neal is and retail investment practice. Before managers in the United States. She has also a chair of Florida TaxWatch, Florida’s joining AEA in 2001, he was an investment worked at Capital since 1990. Before that, tax and budget policy research institution. banker at Greenhill & Co. in New York, she was an analyst at Fidelity Management Previously, he was a member of the Florida which he joined at its inception in 1996. & Research Company and an officer in the House of Representatives, the chair of the Eltrich started his career at Morgan public finance division of Irving Trust Florida Senate’s Appropriations and Stanley. He serves on the boards of Company. She is a member of the Natural Resources committees, and the directors of At Home, 24 Hour Fitness, CFA Institute and serves on the Stanford chair of the Florida Commission on Ethics.