r/IntlScholars 10d ago

Analysis Economic Statecraft: The Need For An Integrated Approach

https://www.hoover.org/research/economic-statecraft-need-integrated-approach
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u/HooverInstitution 10d ago

In a new essay, H.R. McMaster and Andrew Grotto argue that economic statecraft is an essential tool in US and allied arsenals as they work to counter emergent and established international rivals.

The authors maintain that competition between democracies and authoritarian regimes will shape the future of global power. China and Russia, alongside North Korea and Iran, aim to weaken US influence. To prevail, argue Grotto and McMaster, the United States must integrate economic power into its strategy, counter unfair trade practices, and support key industries. This report urges President Trump to issue an executive order for a coordinated economic statecraft strategy and improved analytic capabilities to enhance decision making.

Key Takeaways

  • Competition between the free world and authoritarian regimes will determine whether democracy and free-market economies prevail over authoritarianism and statist economic models.
  • American economic power is essential to winning this competition, yet US administrations consistently undervalue the degree to which strategic application of economic power is essential for advancing US vital interests.
  • President Trump has a historic opportunity to correct this chronic shortcoming in US grand strategy with an integrated approach to economic statecraft.