THE INSTRUMENTS AND INSTITUTIONS OF AMERICAN PURPOSE Foreword By Joseph S. Nye & Brent Scowcroft Edited By Kurt M. Campbell & Jonathon Price THE INSTRUMENTS AND INSTITUTIONS OF AMERICAN PURPOSE FOREWORD BY JOSEPH S. NYE & BRENT SCOWCROFT EDITED BY KURT M. CAMPBELL AND JONATHON PRICE Copyright © 2009 by The Aspen Institute The Aspen Institute One Dupont Circle, N.W. Suite 700 Washington, DC 20036 Published in the United States of America in 2009 by The Aspen Institute All rights reserved Printed in the United States of America ISBN: 0-89843-501-3 Wye Publication Number: 09/004 Cover design by: Yong Wook Back Interior design by: Steve Johnson aspen strategy group* CO-CHAIRMEN Stephen E. Biegun Vice President Joseph S. Nye, Jr. Ford Motor Company University Distinguished Service Professor John F. Kennedy School of Government Robert D. Blackwill Harvard University Senior Fellow RAND Corporation Brent Scowcroft President Antony J. Blinken The Scowcroft Group, Inc. Staff Director U.S. Senate Foreign Relations Committee DIRECTOR Lael Brainard Vice President and Director Kurt M. Campbell Global Economy and Development CEO and Co-Founder The Brookings Institution Center for a New American Security Ashton B. Carter Co-Director ASSOCIATE DIRECTOR Preventive Defense Project & Chair, International & Global Affairs Jonathon Price John F. Kennedy School of Government Associate Director Harvard University Aspen Strategy Group Susan Collins Senator MEMBERS United States Senate Madeleine K. Albright Richard Danzig Principal Senior Advisor The Albright Group, LLC Center for Strategic and International Studies Richard L. Armitage President John M. Deutch Armitage International Institute Professor of Chemistry Massachusetts Institute of Technology Zoë Baird President Thomas E. Donilon Markle Foundation Partner O’Melveny & Myers LLP * All titles used in this book are from when papers were presented in Aspen in August 2008. Since that time some members have accepted positions in the new administration. Richard A. Falkenrath Nicholas Kristof Deputy Commissioner of Counterterrorism Columnist New York City Police Department The New York Times Peter D. Feaver Richard G. Lugar Alexander F. Hehmeyer Professor Senator Duke University United States Senate Dianne Feinstein Leo S. Mackay, Jr. Senator Vice President United States Senate Domestic Business Development Lockheed Martin Michèle A. Flournoy President and Co-Founder Sylvia Mathews Burwell Center for a New American Security President Global Development Program Stephen Friedman Bill & Melinda Gates Foundation Chairman Stone Point Capital Sam Nunn Co-Chairman and CEO Michael J. Green Nuclear Threat Initiative Senior Adviser and Japan Chair Center for Strategic and International Thomas O’Gara Studies Chairman The O’Gara Group Richard N. Haass President William J. Perry Council on Foreign Relations Co-Director Preventive Defense Project Chuck Hagel Stanford University Senator United States Senate Daniel Poneman Principal Jane Harman The Scowcroft Group, Inc. Congresswoman United States House of Representatives Jack Reed Senator Jane Holl Lute United States Senate Assistant Secretary-General for Peacebuilding Support Mitchell B. Reiss United Nations Vice Provost for International Affairs The College of William and Mary Arnold Kanter Principal The Scowcroft Group, Inc. Susan E. Rice Strobe Talbott Senior Fellow President The Brookings Institution The Brookings Institution Carla Anne Robbins Fareed Zakaria Deputy Editorial Page Editor Editor The New York Times Newsweek International Dennis B. Ross Philip D. Zelikow Counselor and Ziegler Distinguished White Burkett Miller Professor of History Fellow University of Virginia Washington Institute for Near East Policy Robert B. Zoellick David Sanger President Chief Washington Correspondent The World Bank The New York Times Wendy R. Sherman Principal The Albright Group, LLC Elizabeth Sherwood-Randall Adjunct Senior Fellow Council on Foreign Relations Senior Research Scholar Stanford University Anne-Marie Slaughter Dean Woodrow Wilson School Princeton University James B. Steinberg Dean Lyndon B. Johnson School of Public Affairs The University of Texas at Austin Marin Strmecki Senior Vice President and Director of Programs Smith Richardson Foundation Acknowledgements Kurt M. Campbell Jonathon Price Director, Aspen Strategy Group Associate Director, Aspen Strategy Group rom August 3-8, 2008, the Aspen Strategy Group gathered in Aspen, Colorado Fto assess the instruments and institutions of American power and purpose. Aspen Strategy Group members, government officials, academics, and journalists formed a bipartisan group of foreign policy and national security practitioners from a wide range of government agencies. This publication is a collection of the fifteen papers that were used to guide their discussions during the course of the conference, along with a scene setter and concluding observations. As ever, the Aspen Strategy Group summer workshop was the result of the support and dedication of a number of groups and individuals. We would like to thank Howard Cox, the Feldman Family Foundation, the Bill and Melinda Gates Foundation, Michael Goldberg, Robert and MeiLi Hefner, Hasty Johnson, McKinsey and Company, Thomas O’Gara, Simon Pinniger, the Resnick Family Foundation, the Ruth and Frank Stanton Fund, Terrence Turkat, and Leah Zell Wanger for their generous contributions that made this workshop and publication possible. Their long-standing commitment and support of the Aspen Strategy Group enables all of the program’s activities and publications. We would also like to thank our General Brent Scowcroft Award Fellows, Ben Andruss, Danny O’Gara, Julie Song, and Ji Sung Yang, for all their hard work and tireless dedication to this vital initiative. They all, undoubtedly, have a bright future ahead. Finally, our warmest gratitude goes to our co-chairmen, Joseph Nye and Brent Scowcroft. Under their steadfast guidance, the workshop generated lively and constructive debate on the potential challenges to reforming U.S. institutions and possible solutions the next administration might employ to offset these problems. Their leadership and example has allowed the Aspen Strategy Group to flourish and become a model of bipartisan inquiry, dialogue, and ideas. Contents Foreword by ASG Co-Chairmen ...............................13 Joseph S. Nye, Jr. & Brent Scowcroft Preface .................................................17 Kurt M. Campbell Part 1 EXAMINING THE FULL SCOPE OF AMERICA’S DIPLOMATIC AND INTELLIGENCE CAPABILITIES CHAPTER 1 Soft Power and Smart Power ..............................29 Joseph S. Nye, Jr. CHAPTER 2 The Department of State: Reorganizing for a New Mission ......35 Robert L. Gallucci CHAPTER 3 The Intelligence Establishment: Memorandum for the President.............................47 Philip D. Zelikow Part 2 ASSESSING CAPABILITIES AND CAPACITIES AT HOME AND ABROAD CHAPTER 4 Defense Strategy & Budget in the Post-Bush Era ...............65 Ashton B. Carter CHAPTER 5 Counterterrorism and Homeland Security ....................81 Richard A. Falkenrath CHAPTER 6 A Decent Respect to the Opinions of Congress: Putting the Executive-Legislative Relationship Back on Track.....99 Antony J. Blinken Part 3 SUSTAINING AMERICA’S FINANCIAL LEADERSHIP IN THE GLOBAL ARENA CHAPTER 7 U.S. Leadership for a New Global Capital Markets Order ......119 Diana Farrell CHAPTER 8 Can America Still Lead In the Global Economy?...............137 Lael Brainard and David Lipton Part 4 EXPLORING ORGANIZATIONAL PARAMETERS AND OVERCOMING INSTITUTIONAL GAPS CHAPTER 9 The White House and Organization for International Affairs ....159 Ivo H. Daalder CHAPTER 10 Discussion Outline on National Security Policymaking and Implementation Structure and Process ..................171 Samuel Berger and Thomas E. Donilon CHAPTER 11 Organizing National Security: Barriers and Opportunities ......181 Andrew Krepinevich Part 5 PRIORITIES SPECTRUM: INSTRUMENTS AND INSTITUTIONS SERVING AMERICA’S PURPOSE CHAPTER 12 American Purpose: What Role for the United Nations? ........195 Jane Holl Lute CHAPTER 13 Memo to the President: Making Preventing Nuclear Terrorism a Central Organizing Principle of Your Administration .........201 Graham Allison CHAPTER 14 Building Public-Private Partnerships .......................207 Sylvia Mathews Burwell CHAPTER 15 A Blueprint for a National Energy Council ...................213 John Podesta Concluding Observations . 217 Kurt M. Campbell & Jonathon Price Foreword 13 Foreword by ASG Co-Chairmen Joseph S. Nye, Jr. Brent Scowcroft ASG Co-Chairman ASG Co-Chairman hen the Aspen Strategy Group (ASG) met for its annual summer workshop in WAugust 2008, the president of the United States had not yet been nominated; the global financial crisis had not yet claimed its first victim; the U.S. government had not contemplated a $700 billion Troubled Assets Relief Program (TARP); the six-month ceasefire in Gaza had yet to be broken; and the highly coordinated and sophisticated attacks in Mumbai had not yet occurred. Since that August meeting, the world has dramatically changed. Yet, the instruments and institutions at President Barack Obama’s disposal have not. The Aspen Strategy Group is committed to convening a distinguished group of practitioners, scholars, and commentators to consider the most critical foreign policy and national security issues confronting the country. Recent workshops have covered the dangers posed by nuclear proliferation, the implications of China’s rise on the world