DOCSLIB.ORG

Economic Security Neglected Dimension of National Security?

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Economic Security Neglected Dimension of National Security? Economic Security Neglected Dimension of National Security? Edited by Sheila R. Ronis Ronis INSTITUTE FOR NATIONAL STRATEGIC STUDIES NATIONAL DEFENSE UNIVERSITY Economic Security: Neglected Dimension of National Security? Economic Security: Neglected Dimension of National Security? Edited by Sheila R. Ronis Published for the Center for Strategic Conferencing Institute for National Strategic Studies by National Defense University Press Washington, D.C. 2011 Opinions, conclusions, and recommendations expressed or implied within are solely those of the contributors and do not necessarily represent the views of the Defense Department or any other agency of the Federal Government. Cleared for public release; distribution unlimited. Portions of this book may be quoted or reprinted without permission, provided that a standard source credit line is included. NDU Press would appreciate a courtesy copy of reprints or reviews. Library of Congress Cataloging-in-Publication Data Economic security : neglected dimension of national security? / Center for Strategic Conferencing, Institute for National Strategic Studies. p. cm. On August 24-25, 2010, the National Defense University held a conference titled Economic Security: Neglected Dimension of National Security? Selected papers from the conference, edited by Sheila R. Ronis, comprise this volume. 1. National security--Economic aspects--United States. 2. Economic security-- United States. 3. Energy security--United States. I. Ronis, Sheila R. II. National Defense University. Institute for National Strategic Studies. HC110.D4E452 2011 330.973--dc23 2011017236 NDU Press publications are sold by the U.S. Government Printing Office. For ordering informa- tion, call (202) 512–1800 or write to the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. For GPO publications on-line, access its Web site at: http://www. access.gpo.gov/su_docs/sale.html. For current publications of the Institute for National Strategic Studies, consult the National Defense University Web site at: http://www.ndu.edu. Contents Preface ...............................................................vii Introduction ........................................................ xi Chapter One We the People: Keeping the Economy and the Nation Strong ....................1 David M. Walker Chapter Two Toward a Premise for Grand Strategy ............................13 John F. Morton Chapter Three Energy Security Is National Security .............................63 Keith W. Cooley Chapter Four Achieving Energy Security That Feeds the Economic Component of National Security ....................75 Louis J. Infante Chapter Five A Well-educated Workforce: Vital Component of National and Economic Security ...............................83 Myra Howze Shiplett, Wendy Russell, Anne M. Khademian, and Lenora Peters Gant Chapter Six Innovation ...........................................................99 Carmen Medina Conclusion .........................................................107 Sheila R. Ronis About the Contributors ...........................................113 v Preface Five years ago, I had the privilege of conducting a study as a con- sultant to the U.S. House of Representatives Small Business Committee. Congress asked me, as a systems scientist, to look at a number of de- fense industrial base issues and their national security implications. The Nation is not well prepared to plan for or establish policy or “grand” strategy in a holistic or long-term sense, and the national security im- plications of that shortcoming remain very disturbing. I recommended the establishment of a center in the Executive Office of the President for “whole of government” and interagency “foresight capability and grand strategy development” and execution, along with an interagency committee of Congress to have oversight responsibility for the center because the Nation has no means to do this. Then, in my work with the Project on National Security Reform over the last few years, the Vision Working Group that I led recom- mended the establishment of a Center for Strategic Analysis and Assessment to provide the mechanism to conduct foresight studies and the development of the grand strategies that would follow—the kind of studies that would look at an entire system, such as the economy and its relationship to national security. At the end of World War II, General George C. Marshall said, “We are now concerned with the peace of the entire world, and the peace can only be maintained by the strong.” But how does the United States re- main strong? What does that mean in a world of globalization? And how do we even define what national security is in such a complex and inter- dependent world? Can we survive, let alone remain a superpower, if we no longer control any means of production? If we remain a major debtor nation? If we continue our dependence on unstable countries for our energy supplies? If we invest insufficient amounts of our resources in research and development, science and technology? Or if we perceive the training and education of people as a cost as opposed to an investment? Recently, I spoke about the national security implications of a downturn in the economy and the auto industry to some colleagues in Detroit. They said, “What are you talking about? What does the economy have to do with national security?” Most people in our country equate national security with military readiness, homeland defense, and generally protecting American interests at home and abroad. And vii viii ECONOMIC SECURITY: NEGLECTED DIMENSION OF NATIONAL SECURITY? they would be right, but not entirely. National security has other dimen- sions. It is a broad description of the elements in our society that make it “secure,” and that goes much further than providing for “a common defense.” It can include anything that adds to the strength of the Nation. It is about being strong in the sense General Marshall intended. Historically, national security includes the strength of our nation’s infrastructure, the foundation upon which the continuous growth of our society depends. This includes our strong societal and moral codes, the rule of law, stable government, social, political, and economic institutions, and leadership. Also included are our nation’s schools and educational programs to ensure a knowledgeable citizenry and lifelong learning—a must for a democracy. Our nation’s strength also requires investments in science, engineering, research and development, and technological leadership. We cannot be strong without a viable way to power our cities, feed ourselves, and move from one place to another. Most of all, a strong economy is an essential ingredient of a global su- perpower. Without it, we will lose our superpower status, and quickly. National security must include a healthy market-based economy, with a strong base of globally competitive products and services that produce jobs. This economy must include sound government policies to promote responsible choices and reduce our debt, and grand strategies for energy and environmental sustainability, science and technology leadership (at least in some areas), human capital capabilities, manufac- turing, and the industrial base. And these are not the only components. National security goes to the very core of how we define who we are as a people and a free society. It concerns how we view our world responsibilities. Economic security is a major element of national security, even as borders are less important than ever. No matter how we look at national security, there can be no question of the need to include the economic viability of our nation. Without capital, there is no business; without business, there is no profit; without profit, there are no jobs. And without jobs, there are no taxes, and there is no military capability. The viability of a nation’s industrial infrastructure, which provides jobs for its people, creates and distributes wealth, and leverages profits, is essential. Without jobs, the quality of peoples’ lives deteriorates to a point where society itself can disintegrate. It can also lead to strife on many different levels. As a nation, we need to find a strategy to deal PREFACE ix with this, and we will discuss the ideas of expeditionary economics. But poverty is not only a problem in Third World countries. It can occur at home, too—especially during a deep recession. No community, local or global, can sustain indefinitely whole populations of “haves” and “have nots.” And that gap is now growing within the United States. There is no question that a part of the infrastructure of a nation must include a sound economy. It was the relative deterioration of the Japanese and German economies that led those nations into World War II. Poverty around the world is a global systemic issue that frequently can and does lead to political instability. But we cannot help others if we cannot help ourselves, and our current economic crisis is a warning. National security is societal, political, and economic strength. In today’s world, national security for a superpower is meaningless without a strong military capability as well. The sovereignty and security of the United States, and the protection of its citizens and property around the world, remain the bedrock of national security. The execution of U.S. national security strategy is conducted in a highly volatile global environ- ment characterized by quantum changes in technology; unprecedented social, economic, and political interdependencies;
Load more

Recommended publications
  • Studies in Applied Economics
    SAE./No.128/October 2018 Studies in Applied Economics THE BANK OF FRANCE AND THE GOLD DEPENDENCY: OBSERVATIONS ON THE BANK'S WEEKLY BALANCE SHEETS AND RESERVES, 1898-1940 Robert Yee Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise The Bank of France and the Gold Dependency: Observations on the Bank’s Weekly Balance Sheets and Reserves, 1898-1940 Robert Yee Copyright 2018 by Robert Yee. This work may be reproduced or adapted provided that no fee is charged and the proper credit is given to the original source(s). About the Series The Studies in Applied Economics series is under the general direction of Professor Steve H. Hanke, co-director of The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise. About the Author Robert Yee ([email protected]) is a Ph.D. student at Princeton University. Abstract A central bank’s weekly balance sheets give insights into the willingness and ability of a monetary authority to act in times of economic crises. In particular, levels of gold, silver, and foreign-currency reserves, both as a nominal figure and as a percentage of global reserves, prove to be useful in examining changes to an institution’s agenda over time. Using several recently compiled datasets, this study contextualizes the Bank’s financial affairs within a historical framework and argues that the Bank’s active monetary policy of reserve accumulation stemmed from contemporary views concerning economic stability and risk mitigation. Les bilans hebdomadaires d’une banque centrale donnent des vues à la volonté et la capacité d’une autorité monétaire d’agir en crise économique.
    [Show full text]
  • Table 1 Œ CENTRAL BANK STATUORTY GOLD RESERVE REQUIREMENTS
    Appendix 3. Central Bank Gold Reserve Statutes Table 1 – CENTRAL BANK STATUTORY GOLD RESERVE REQUIREMENTS UNDER THE CLASSICAL GOLD STANDARD (1880 – 1914) COUNTRY LEGAL RESERVE REQUIREMENTS Argentina – Currency Board 1899 1913 Australia 25% in gold on bank notes up to £7,000,000, 100% above that (law of 1910). Before 1910 no government notes, no legal reserve requirements on commercial bank notes. Belgium 33 1/3% on notes and other demand liabilities Brazil 33 1/3% in gold on note issue (Act of 1890); 100% in gold and convertible securities: Currency Board (1906-1914) Canada 25% on Dominion notes in excess of 20 million. No legal reserve requirements on chartered banks. Chile None Denmark 37.5% in gold coin or bullion on notes until 1907; thereafter 50%. Finland maximum uncovered note issue of 40,000,000 marks, 100% cover in gold, foreign exchange above that France None Germany 33 1/3% in gold coin or bullion on note liabilities Greece 3 1/3% in gold coin or bullion on notes Italy 40% in gold or silver on notes Japan on note liability in gold coin or bullion in excess of fiduciary issue of 120,000,000 yen (1899) Netherlands 40% in gold coin on notes and deposits Norway on note liabilities, 100% in gold coin or bullion in excess of fiduciary issue of 35,000,000 crowns Table 1 – CENTRAL BANK STATUTORY GOLD RESERVE REQUIREMENTS UNDER THE CLASSICAL GOLD STANDARD (1880 - 1914) COUNTRY LEGAL RESERVE REQUIREMENTS Portugal 33 1/3% in gold coin or bullion on note circulation and demand liabilities Spain 33 1/3% cash reserve on a maximum note issue of 1,500,000 pesetas, at least one half to be held in gold Sweden 40 million kroner in gold on notes Switzerland 40% in gold coin on notes United Kingdom 100% in gold coin or bullion on notes in excess of fiduciary issue (£ 14 million plus two - third of lapsed bank notes) United States as of 1900, Treasury minimum of 100 million in gold coin Sources: Germany, Sweden, Italy in Michael D.
    [Show full text]
  • 8. Expeditionary Economics: Stimulating Entrepreneurship Under Geopolitical Risk Robert E
    Grahams HD:Users:Graham:Public:GRAHAM'S IMAC JOBS:14199 - EE - MUNOZ:MUNOZ 9780857939746 PRINT Grahams HD:Users:Graham:Public:GRAHAM'S IMAC JOBS:14199 - EE - MUNOZ:MUNOZ 9780857939746 PRINT 8. Expeditionary economics: stimulating entrepreneurship under geopolitical risk Robert E. Looney INTRODUCTION The concept of Expeditionary Economics (ExpECON) was introduced in 2010 in a path-breaking article in the May/June 2010 issue of Foreign Affairs, “Expeditionary Economics: Spurring Growth After Conflicts and Disasters”, by then Kauffman Institute President and CEO Carl Schramm. In that article, Schramm put forth the proposition that eco- nomic growth is vital for stabilizing post-conflict/disaster settings, and the U.S. military, as often the dominant player in these environments, must sharpen its ability to encourage indigenous entrepreneurship. It was Schramm’s contention that the conventional U.S. approach in recent post-conflict recoveries (Dobbins et al., 2007) has failed largely because it has abandoned the approach that was so successful in building the U.S. economy – the encouragement and support of indigenous entrepreneurial initiative and creativity (Schramm, 2010, 2010a). In Schramm’s original formulation, ExpECON represented a sharp rejection of large bodies of received economic and military doctrine. His main contention was that “a central element in the failure to estab- lish robust economies in war-torn or disaster-stricken countries is the prevailing doctrine of international development, according to which strong economies cannot emerge in poor countries” (Schramm 2010, 89). Schramm’s work shares many of the frustrations put forth in Dambisi Moyo’s (2010) withering critique of foreign aid programs, and De Soto’s (2000) impassioned questioning many of development economics conven- tional wisdoms.
    [Show full text]
  • The Gold Pool (1961-1968) and the Fall of the Bretton Woods System
    NBER WORKING PAPER SERIES THE GOLD POOL (1961-1968) AND THE FALL OF THE BRETTON WOODS SYSTEM. LESSONS FOR CENTRAL BANK COOPERATION. Michael Bordo Eric Monnet Alain Naef Working Paper 24016 http://www.nber.org/papers/w24016 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 November 2017 The views expressed in this paper do not represent the opinion of the Banque de France, Eurosystem, or the National Bureau of Economic Research. We thank the archivists of the Bank for International Settlements, the Bank of England, the New York Fed and the Banque de France for their help. Piet Clement kindly shared by email some additional documents. Kathleen Rasmussen guided us to the US Department of State online archives. We are grateful to seminar participants at the University Paris 1 Sorbonne, the credit, currency and commerce conference (University of Cambridge), Saint Louis Fed and World Cliometrics Congress for comments. We are indebted to Owen Humpage, Walter Jansson and Catherine Schenk for comments on previous drafts. We also thank David Chambers for sharing data. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2017 by Michael Bordo, Eric Monnet, and Alain Naef. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. The Gold Pool (1961-1968) and the Fall of the Bretton Woods System. Lessons for Central Bank Cooperation.
    [Show full text]
  • Navy and Marine Corps Opposition to the Goldwater Nichols Act of 1986
    Navy and Marine Corps Opposition to the Goldwater Nichols Act of 1986 A thesis presented to the faculty of the College of Arts and Sciences of Ohio University In partial fulfillment of the requirements for the degree Master of Arts Steven T. Wills June 2012 © 2012 Steven T. Wills. All Rights Reserved. 2 This thesis titled Navy and Marine Corps Opposition to the Goldwtaer Nichols Act of 1986 by STEVEN T. WILLS has been approved for the Department of History and the College of Arts and Sciences by Ingo Traushweizer Assistant Professor of History Howard Dewald Interim Dean, College of Arts and Sciences 3 ABSTRACT WILLS, STEVEN T., M.A., June 2012, History Navy and Marine Corps Opposition to the Goldwater Nichols Act of 1986 Director of Thesis: Ingo Traushweizer The Goldwater Nichols Act of 1986 was the most comprehensive defense reorganization legislation in a generation. It has governed the way the United States has organized, planned, and conducted military operations for the last twenty five years. It passed the Senate and House of Representatives with margins of victory reserved for birthday and holiday resolutions. It is praised throughout the U.S. defense establishment as a universal good. Despite this, it engendered a strong opposition movement organized primarily by Navy Secretary John F. Lehman but also included members of the Joint Chiefs of Staff, prominent Senators and Congressman, and President Reagan's Secretary of Defense Casper Weinberger. This essay will examine the forty year background of defense reform movements leading to the Goldwater Nichols Act, the fight from 1982 to 1986 by supporters and opponents of the proposed legislation and its twenty-five year legacy that may not be as positive as the claims made by the Department of Defense suggest.
    [Show full text]
  • Blockchain: Leveraging a Trust Technology in Expeditionary Economics
    BLOCKCHAIN: LEVERAGING A TRUST TECHNOLOGY IN EXPEDITIONARY ECONOMICS CARL J. SCHRAMM By now, the rule of law is universally considered a critical prerequisite for help- ing an undeveloped nation emerge with a self-sustaining, expanding economy. While an uncontested element of development theory, establishing the rule of law is so difficult in practice that it is seldom attempted. An example: Frustrated with the diffi- first step on the road to creating a credit- culties of post-conflict pacification, the based economy, the U.S. found itself second Bush administration turned to inventing a makeshift economic develop- establishing the rule of law as the central ment strategy on the fly. Unlike past situ- step in restarting the Iraqi economy.1. U.S. ations, where Army doctrine anticipated development officials, however, did not having to rebuild and temporarily admin- consider its implementation possible. ister the governments and economies of While visiting a farm on the outskirts of defeated nations, U.S. forces deployed in Tikrit in 2010, I asked how the farmer Iraq and Afghanistan had no such remit could prove his ownership of the land on and no institutional memory of perform- which we stood. A USAID official deflect- ing these roles, let alone contemporary ed my inquiries by invoking the dogeared training in managing such responsibili- formula that informal traditions of access ties.3. to the nearby stream for irrigation operat- The military instead looked princi- ed as a de facto claim to the land. The idea pally to USAID, a civilian development of a written deed recorded with the local agency, under a newly devised approach government was dismissed as pie in the referred to as “whole of government.”4.
    [Show full text]
  • The Guide to Mining Arbitrations
    Global Arbitration Review The Guide to Mining Arbitrations Editors Jason Fry and Louis-Alexis Bret © 2019 Law Business Research Ltd The Guide to Mining Arbitrations Editors Jason Fry and Louis-Alexis Bret Reproduced with permission from Law Business Research Ltd This article was first published in June 2019 For further information please contact [email protected] arg © 2019 Law Business Research Ltd Publisher David Samuels Business Development Manager Gemma Chalk Editorial Coordinator Hannah Higgins Head of Production Adam Myers Production editor Harry Turner Copy-editor Gina Mete Proofreader Rakesh Rajani Published in the United Kingdom by Law Business Research Ltd, London 87 Lancaster Road, London, W11 1QQ, UK © 2019 Law Business Research Ltd www.globalarbitrationreview.com No photocopying: copyright licences do not apply. The information provided in this publication is general and may not apply in a specific situation, nor does it necessarily represent the views of authors’ firms or their clients. Legal advice should always be sought before taking any legal action based on the information provided. The publishers accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as of May 2019, be advised that this is a developing area. Enquiries concerning reproduction should be sent to Law Business Research, at the address above. Enquiries concerning editorial content should be directed to the Publisher – [email protected] ISBN 978-1-83862-206-0 Printed in Great
    [Show full text]
  • The Paradox of Planning in World War II
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Rockoff, Hugh Working Paper The Paradox of Planning in World War II Working Paper, No. 1995-13 Provided in Cooperation with: Department of Economics, Rutgers University Suggested Citation: Rockoff, Hugh (1996) : The Paradox of Planning in World War II, Working Paper, No. 1995-13, Rutgers University, Department of Economics, New Brunswick, NJ This Version is available at: http://hdl.handle.net/10419/94307 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu 95-13 April 1996 The Paradox of Planning in the United States during World War II* Hugh Rockoff Department of Economics Rutgers University New Brunswick NJ 08903-5055 908-932-7857 For Discussion Only I.
    [Show full text]
  • The Price of Gold
    ESSAYS IN INTERNATIONAL FINANCE No. 15, July 1952 THE PRICE OF GOLD MIROSLAV A. KRIZ INTERNATIONAL FINANCE SECTION 1.DEPARTMENT OF ECONOMICS AND SOCIAL INSTITUTIONS PRINCETON UNIVERSITY Princeton, New1 Jersey This is the fifteenth in the series ESSAYS IN INTER- NATIONAL FINANCE published by the International Finance Section of the Department of Economics and Social Institutions in Princeton University. It is the second in the series written by the present author, the first one, "Postwar International Lending," having been published in the spring of 1947 and long since out of print. The author, Miroslav A. Kriz, is on the staff of the Federal Reserve Bank of New York. From 1936 to 1945 he was a member of the Economic and Fi- nancial Department of the League of Nations. While the Section sponsors the essays in this series, it takes no further responsibility for the opinions therein expressed. The writers are free to develop their topics as they, will and their ideas may or may not be shared by the .editorial committee of the Sec- tion or the members of the Department. Nor do the views _the writer expresses purport to reflect those of the institution with which he is associated. The Section welcomes the submission of manu- scripts for this series and will assume responsibility for a careful reading of them and for returning to the authors those found unacceptable for publication. GARDNER PATTERSON, Director International Finance Section THE PRICE OF GOLD MIROSLAV A: KRIZ Federal Reserve Bank of New Y orki I. INTRODUCTION . OLD in the world today has many facets.
    [Show full text]
  • Precious Metals Prices Soar! U.S
    Volume 13 Issue 11 Liberty Coin Service’s Monthly Review of Precious Metals and Numismatics October 31, 2007 As Central Bank Gold Price Suppression Conspiracy Falls Apart— Precious Metals Prices Soar! U.S. Dollar Falls To Record Low—Further Declines Expected Will Gold Reach $1,300 And Silver $22 By April 2008? There has been a flurry of revelations and from current levels. 2007 Year To Date Results new developments in the past month that Here are some of the recent developments Through October 30, 2007 just about all point to the falling value of that lead me to these conclusions. Precious Metals currencies in general and the U.S. dollar in News And Information You Platinum +26.4% particular. Gold +23.5% The prices of gold and silver have May Have Missed 1) When bureaucrats have to reveal Silver +11.2% climbed significantly as a result. Palladium +10.5% With only limited space in this newslet- something they would prefer remain un- ter, I can only cover some of the items and known and obscure, they can become ex- Numismatics MS-63 $20.00 Liberty +24.3% not go into the depth that they deserve. perts at burying the disclosure in the middle MS-63 $20.00 St Gaudens +23.5% But, uniformly, they lead me to the conclu- of lengthy reports. Sometimes, it takes a while before anyone catches on. MS-65 Morgan Dollar -3.3% sions that: The past coordinated efforts among a For example, on May 14 the U.S. Treas- US Dollar vs Foreign Currencies number of central banks, international ury’s weekly report of the U.S.
    [Show full text]
  • Central Bank of the Republic of Turkey Foreign Exchange Reserve
    Central Bank of the Republic of Turkey Foreign Exchange Reserve Management 2018 Foreign Exchange Reserve Management Contents 1 PREFACE 2 2 DEFINITION OF FOREIGN EXCHANGE RESERVE 2 3 LEGAL FRAMEWORK 3 4 INSTITUTIONAL FRAMEWORK 3 5 TRANSPARENCY AND ACCOUNTABILITY 4 6 FOREIGN EXCHANGE RESERVE MANAGEMENT OBJECTIVES AND STRATEGY 4 7 TYPES OF FOREIGN EXCHANGE RESERVE MANAGEMENT OPERATIONS 6 8 IMPLEMENTATION OF FOREIGN EXCHANGE RESERVE MANAGEMENT 7 9 RISK MANAGEMENT 7 9.1 Sources of Risk 7 9.1.1 Market Risk 7 9.1.2 Credit Risk 7 9.1.3 Liquidity Risk 8 9.1.4 Operational Risk 8 9.2 Risk Control 8 9.3 Risk Measurement, Reporting and Monitoring 9 9.4 Performance Evaluation 10 10 RESERVE MANAGEMENT OPERATIONS IN 2017 10 10.1 Reserve Developments in 2017 10 10.2 Investment and Risk Management Process 11 10.3 Investing Activities in 2017 and Composition of Reserves 11 11 OVERVIEW 14 ANNEX 1: MANAGEMENT OF GOLD RESERVES 15 1 Foreign Exchange Reserve Management 1. Preface Foreign exchange (FX) reserves play a significant role in achieving macroeconomic policy targets and preventing possible financial crises in that they provide room for maneuver for the sustainability of the exchange rate regime and monetary policies. Under the fixed exchange rate regime, central banks warranted that the local currency could be converted to foreign currency at a fixed rate, and they held foreign exchange reserves to fulfill this commitment. In the following periods, in line with the developments in the world economy, there was a shift from the fixed exchange rate regime to flexible and floating exchange rate regimes.
    [Show full text]
  • The National Security Council: an Organizational Assessment
    The National Security Council: An Organizational Assessment Richard A. Best Jr. Specialist in National Defense December 28, 2011 Congressional Research Service 7-5700 www.crs.gov RL30840 CRS Report for Congress Prepared for Members and Committees of Congress The National Security Council: An Organizational Assessment Summary The National Security Council (NSC) was established by statute in 1947 to create an inter- departmental body to advise the President with respect to the integration of domestic, foreign, and military policies relating to the national security so as to enable the military services and the other departments and agencies of the Government to cooperate more effectively in matters involving the national security. Currently, statutory members of the Council are the President, Vice President, the Secretary of State, the Secretary of Defense, and, since 2007, the Secretary of Energy; but, at the President’s request, other senior officials participate in NSC deliberations. The Chairman of the Joint Chiefs of Staff and the Director of National Intelligence are statutory advisers. The President clearly holds final decision-making authority in the executive branch. Over the years, however, the NSC staff has emerged as a major factor in the formulation (and at times in the implementation) of national security policy. Similarly, the head of the NSC staff, the National Security Adviser, has played important, and occasionally highly public, roles in policymaking. This report traces the evolution of the NSC from its creation to the present. The organization and influence of the NSC have varied significantly from one Administration to another, ranging from highly structured and formal systems to loose-knit teams of experts.
    [Show full text]