Energy and National Security–What’s the Connection? Winter 2005 www.belfercenter.org Economy and Security: Belfer Center Explores Vital Connections or more than 20 years, roundtables at the Graham Allison , director of the Belfer Center. FBelfer Center have had the benefit of con - “The connections between the two areas will tributions from 2005 Nobel Prize Laureate in continue to be central to Belfer Center Economics Thomas Schelling . Schelling, now research in the near and long term.” at the University of Maryland’s School of Pub - Economics giant Martin Feldstein , lic Policy, won the coveted prize for demon - described by Allison as “the greatest Fed chair - strating the influence of economics on national man we never had,” is once again leading an security by applying game theory to the man - extremely popular seminar on economics and agement of the Cold War. His contributions national security that brings together fellows, continue, along with those of others working faculty, and students from multiple disciplines at the Belfer Center on innovative solutions to to consider issues such as the nuclear weapons economy/security issues. market, dependence on foreign oil, and the defense industry. Connecting the Economy/Security Dots: Thomas Schelling (left), Martin Feldstein Former senior vice president and general (center), and Ben Heineman (right) “[D]eciphering the dynamics of counsel for General Electric Ben Heineman the relationship [between eco - and investment pioneer Scott Delman cur - nomics and national security] is rently serve as senior fellows at the Belfer Cen - ter, working to develop closer relationships Stephen Walt analyzed economics as a compo - critical to understanding and between business experts and national security nent of American primacy in his recent book creating decisions of nations, specialists in the Harvard community and Taming American Power . companies and individuals.” elsewhere. Belfer Center fellows are researching these Economics is a central element in the con - general concepts in more specific areas. This cept of “soft power,” says Kennedy School research includes groundbreaking work by “The intersection of economics and Dean Emeritus Joseph Nye . “Understanding Rebecca Weiner on the implications of private national security is often viewed as a given, but economic leverage is vital to maintaining companies and corporate law on military pol - deciphering the dynamics of the relationship is national security interests,” he says, and some - icy, Ant Bozkaya on early stage financing of critical to understanding and creating decisions thing he continues to teach in his courses on technology development, and Emily Oster on of nations, companies, and individuals,” says soft power. Kennedy School Academic Dean the economics of disease and conflict. Belfer Center Fellow Guides Harvard Assistance with New Orleans Revival R E T n the wake of the Gulf Coast disaster, Ahlers has also participated in efforts at the N E C Belfer Center fellow and New Orleans Kennedy School to learn from the failures in R I E F resident Doug Ahlers put Harvard tal - New Orleans. He and Kennedy School crisis L E B ents to work, helping to rebuild the management experts Arnold Howitt and economy in the wake of catastrophe. Dutch Leonard contributed their expertise on After the floods, Ahlers was asked to join the decision making process, and former Mayor Ray Nagin’s “Bring New Orleans NORTHCOM Commander Barry McCaf frey Back” commission’s economic develop - (continued on page 5) ment committee. His position allowed him to guide a group of Harvard Busi - ness School and Kennedy School stu - In This Issue – dents, who visited the disaster area, and Reducing Energy Insecurity . page 3 put their education into practice by cre - Private Military Contractors . page 5 Afghanistan, Drugs, Terror . page 14 Looking Ahead: New Orleans resident and Belfer Center ating a business plan to bring economic Fellow Doug Ahlers (center) and Harvard Professor investment into New Orleans. The pro - Arnold Howitt (left) discuss “Lessons on Katrina” at a posal to establish a non-profit indepen - Upcoming – director’s lunch in December. Harvard Professor Dutch dent economic development corporation April 5: Robert Socolow, Co-director, Leonard (not shown) also took part in the presentation. to support the city has received the Carbon Mitigation Initiative Xenia Dormandy Belfer Center Executive Director attention of local, state, and national April 12: General James E. Cartwright, (right) and Harvard Visiting Scholar Marina McCarthy (2nd from left) were among those in attendance. leaders instrumental in the recovery Commander, U.S. Strategic Command effort. R E T N E C R FROMTHE DIRECTOR E F L E B nternational relations is not like Old Faith - Sims-Gallagher have been sought out for their Iful—predictable in how and when it will insights into the path ahead. Their thoughts on erupt. Instead we must constantly remain where we are going and how we will get there flexible and responsive, trying to recognize the have been featured on National Public Radio, difference between the headlines and the ABC, NBC, and other news outlets. The Presi - trendlines that will change the world. The dent’s comments open the door for energy Belfer Center is committed to focusing on the security proposals like those being discussed in most important emerging issues at the nexus of the symposium series arranged by Dan Schrag , science and international affairs. With limited director of Harvard’s Center for the Environ - attention and resources, where can we add the ment. “The Future of Energy” series features Liquid Gold Standard: Matt Simmons (right), most value? individuals like BP CIO Iain Conn and former president of Simmons and Company, Two new areas now under active explo - White House Chief of Staff John Podesta . International and author of Twilight in the Desert: ration at the Center are economics and secu - The Belfer Center continues to extend its The Coming Saudi Oil Shock and the World rity and energy and security. reach to tackle critical international challenges. Economy, talks with anthropologist and former Martin Feldstein (George F. Baker Profes - Senator Bob Graham , who is a senior fellow Center Fellow Tim Weiskel and others sor of Economics, Director of the National with the Belfer Center this semester following following Simmons’ presentation on energy Bureau of Economic Research, and a member a semester at the Institute of Politics, is putting security at a Belfer Center director’s lunch in February. Simmons was the first presenter in the of the Center’s Board) is reviving the field of together a course to educate national leaders Harvard University Center for the Environment economics and national security. In a year on the principles of intelligence. Bob Rotberg “Future of Energy” lecture series. when the Nobel Prize in Economics was will address the challenges in Sudan in an awarded to one of the Kennedy School’s upcoming conference. In January, I was pleased to join Institute founding fathers, Thomas Schelling , Marty’s The Belfer Center is pleased to welcome of Politics (IOP) Director Jeanne Shaheen and undertaking is well timed. Ben Heineman , Jeffrey Lewis as the new executive director of others at the IOP in introducing a new archive former general counsel for General Electric the Managing the Atom Project. He comes to of John F. Kennedy Jr. Forum events that will and a new senior fellow this semester, joins us from the Center for International and bring us all closer together virtually. Now you investment pioneer Scott Delman , also a Security Studies at the University of Mary - can watch presentations by former, present, senior fellow, in helping to build bridges land’s School of Public Policy, where he con - and future world leaders such as Nobel Laure - among Harvard’s faculty and research in eco - ducted groundbreaking research on China’s ate Mohamed ElBaradei , former Secretary of nomics, business, and security. nuclear policy. He also is a leading blogger on Defense Robert McNamara , and French Min - arms control and nonproliferation (www.arms ister of Defense Michele Alliot-Marie . If you controlwonk.com). We are looking forward to missed February’s Forum with Saudi Arabian The Belfer Center continues learning from Jeffrey’s insights into security Ambassador to the U.S. Prince Turki Al- to extend its reach to tackle policy. Faisal , you can check it out at critical international challenges. We also welcome new senior fellows http://ksgacc man.harvard.edu/iop/events_foru Rosemary Foot , a professor at Oxford Univer - m_listview.asp. Learning from others and sity and an expert in the relationship between spreading ideas is vital to the work we do, and In response to President Bush’s State of the counterterrorism and human rights, and we are pleased to support this IOP initiative. Union comments on energy, Belfer Center Chuck Freilich , former Israeli deputy national experts John Holdren , Henry Lee , and Kelly security adviser. Both are featured on this page. New Belfer Fellows Share Vital Expertise R he Belfer Center welcomes three new and share her views on the E T N fellows who will share their expertise with United Nations’ counterterrorist E T C R faculty and fellows in the coming months. actions and the consequences for E F L Until this fall , Chuck Freilich was the human rights. E B Israeli deputy national security adviser involved Ben Heineman has come in issues of the peace process, terrorism, and from General Electric where he WMD proliferation. He teaches political sci - was GE’s general counsel and ence at Tel Aviv and Hebrew Universities and senior vice president for law and co-directs a Middle Eastern affairs consultancy. public affairs. He is also a distin - While at the Belfer Center, Freilich will share guished senior fellow at Harvard his experience on Israeli national security deci - Law School’s Program on the International Fellowship: Belfer Center Director Graham sion-making and write a book on the subject.