THE NATIONAL MISSION BUsiness Horizon Quarterly !"#$%"

As America undertakes the abiding national mission of advancing our interests and values abroad, our success depends on harnessing

a vital asset in the cause—our marvelous private sector. Properly enabled, U.S. businesses and non-governmental organizations (NGOs) can greatly expand America’s in!uence, particularly in strategically vital regions where our military presence is being reduced.

Despite what we sometimes think, leaders and people in vital regions around the world—including geo-political hotspots—remain eager for economic, political, and civil engagement with the United States. More often, however, they "nd the Chinese knocking at their door, exercising a “go-out” strategy to increase the country’s global in!uence, gain access to commodities, and win market share in up-and-coming economies. We are falling behind.

Prior to the 2012 U.S. presidential election, I authored an open memo to the candidates about the need to modernize the United States’ global engagement. In that memo, published by the Atlantic Council, I recounted the story of Iraqi Kurdistan’s President Masoud Barzani, who made the case for modernizing U.S. global engagement as succinctly as I’ve heard. “Don’t you know,” he said, “that the presence of four American companies (in Kurdistan) are worth two Army divisions” in building goodwill and sustaining in!uence in the aftermath of America’s military withdrawal from the area?

Despite this clarion call, the presence of the U.S. private sector is minimal in this secure, fast-growing, pro-American, and strategically vital autonomous region of Iraq. #at is even though the opportunity in Kurdistan is enormous and the United States has sacri"ced so dearly to bring freedom and development to its people. #e question of “where are U.S. companies and entrepreneurs” is expressed not only in Iraqi Kurdistan but in many key areas across the globe where America would bene"t from building greater in!uence.

To some degree, the private sector’s reluctance to vie for business in less-developed countries and regional markets stems from its inherent risk. In many cases, however, the retreat is also fostered by indi$erent and in some cases obstructive public policy, out-of-date frictions between the public and private sector,

DESPITE WHAT WE SOMETIMES THINK, LEADERS AND PEOPLE IN VITAL REGIONS AROUND THE WORLD—INCLUDING GEO-POLITICAL HOTSPOTS—REMAIN EAGER FOR ECONOMIC, POLITICAL, AND CIVIL ENGAGEMENT WITH THE UNITED STATES.

AMERICA’S INTERNATIONAL STRATEGY MUST ADJUST TO THE REALITY THAT IN THE 21ST CENTURY, MILITARY MIGHT AND STATE DIPLOMACY ALONE ARE INSUFFICIENT TO ADVANCE OUR INTERESTS AND VALUES ABROAD.

BY GEN. JAMES L. JONES, USMC (RET.), PRESIDENT, JONES GROUP INTERNATIONAL

and a mentality still stuck in the century just passed. America’s international strategy must adjust to the reality that in the 21st century, military might and state diplomacy alone are insu!cient to advance our interests and values abroad.

Projecting power today depends heavily on improving lives, meeting human needs, and imbedding the United States in the social and economic fabric that yields sustainable international in"uence. As important as a capable military is, modernity requires a broader toolkit. In the new global paradigm, the private sector must play a prominent role, and the public sector must become better at unleashing the capabilities of America’s #rms and NGOs.

We have a far better chance of promoting the interdependent pillars of human progress—security, economic development, and good governance—across the globe if our public and private sectors work together. $e collaboration needed to move the needle on human progress abroad is more likely to yield the vibrant markets that are eager for our goods and services, generating huge

dividends for America’s security, geostrategic in"uence, and prosperity.

A World of Strategic Opportunity

$ree key regions provide case studies in the vast potential of this approach—possibilities we can realize if we modernize our global engagement strategy.

Middle East. U.S. interests in the Middle East and North Africa remain keen, even as we harness the shale energy revolution to enhance America’s domestic energy su!ciency. Instability in the region has global reach that a%ects the critical "ow of world trade and oil, the proliferation of weapons of mass destruction (WMD), and the spread of radical ideology. Unfortunately, crisis response—in which our options to in"uence positive outcomes are few and highly problematic—de#ne our posture in hotspots such as Syria and Egypt.

We have, however, a prime opportunity to apply a broader, proactive strategy to in"uence a triangle in the heart of the Middle East, encompassing: Iraq, where

the United States has already invested many lives and billions of dollars for a better future; Iraq’s Kurdish region, where we have longstanding allies and shared interests; and Turkey, close NATO partners in whose security, prosperity, and goodwill we are heavily vested. Peace and stability in this envelope can serve as an anchor for regional peace. Conversely, festering tensions left unaddressed could yield con"ict that would add exponentially to the region’s instability.

In 2009, we pulled our troops out of Iraq without a comprehensive strategy to #ll the vacuum of in"uence in its wake. Political strains are endangering relations between the central government in Baghdad and the regional government in Erbil; between Baghdad and Ankara because of Turkey’s growing engagement with the Kurds; between the United States and Iraq because of the Maliki administration’s tilt toward Iran; and between ourselves and the Kurds over the U.S. policy that has sometimes seemed indi%erent toward the longstanding U.S.-KRG friendship.

$e fact is that there are commercial solutions to this highly consequential geopolitical challenge. With the help of the U.S. private sector, energy development—in particular, energy pipelines serving all three areas and connecting them more e!ciently to world markets—can improve the region’s economic prospects and create shared interests as a basis for closer cooperation and better relations among the three parties. A broader spectrum of economic development projects must be part of such a unifying commercial approach. In addition to oil development, electricity production, agriculture expansion, mining, water development, and a full range of services entailing U.S. private sector participation can be harnessed to improve lives and enhance political stability.

$e ties created by such economic engagement will place Erbil in a better position to preserve its peaceful

autonomy and Baghdad, its national sovereignty. Turkey would be able to wean itself from a dependence on Russian oil. All three would know the bene#ts of greater income and development, while the United States would generate jobs, build greater in"uence, and reap the bene#ts of a more peaceful and more secure region.

Africa. Africa is rich in human capital and natural resources, and o%ers unmatched social, economic, and political potential. Recognizing these realities, the Chinese are actively engaged across the continent. While China applies its full-court press for deals on infrastructure development, #nancial services, and access to commodities, the United States is perceived as generally passive and unengaged. $e question “where is America?” rings across the continent. Let there be no mistake: Africa wants a U.S. presence in the form of the country’s companies and NGOs.

If America ignores the staggering opportunity Africa o%ers, others will #ll the vacuum—and not just the Chinese but malefactors who wish to exploit human want and frustration to sell radical ideology and foster insurgency. $e vulnerable Sub-Saharan region o%ers a large and enticing new market for extremism and a strategically located export hub for global terror.

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THE NATIONAL MISSION BUsiness Horizon Quarterly !"#$%"

IF AMERICA IGNORES THE STAGGERING OPPORTUNITY AFRICA OFFERS, OTHERS WILL FILL THE VACUUM—AND NOT JUST THE CHINESE BUT MALEFACTORS WHO WISH TO EXPLOIT HUMAN WANT AND FRUSTRATION TO SELL RADICAL IDEOLOGY AND FOSTER INSURGENCY.

I submit that awaiting the development of the next Afghanistan in the southern reaches of the African continent is passive policy unworthy of our great nation. Moreover, it is poor diplomatic and economic policy, the consequences of which will be felt in loss of American jobs, strategic relationships, and in!uence.

Our public and private sectors must work together to open markets, establish a sustained presence, and economically engage Africans at the grassroots. "e broader and higher-caliber global engagement is necessary to win hearts and minds. Only by doing that can we achieve the lasting defeat of radicals and predators, countering their use of the most accessible weapons of mass destruction known to man: corruption, poverty, hateful ideology, and a#nity for discredited political and economic models. America’s in!uence and model is essential if this continent of the future—one which will soon be home to the majority of young people on earth—is to emerge as an economic miracle rather than a security nightmare.

Central and Eastern Europe. Free from the yoke of Soviet tyranny, Central and Eastern Europe is home to countries primed for greater economic growth and prosperity to accompany their hard-won freedom.

"ese countries, which chafed under the deprivations of communism, embrace modernity and seek to integrate fully into the global economy. In general, they love America and are eager to engage. Yet, the United States remains too remote there as well.

"e infrastructure and other commercial needs of this expansive region are enormous. "is massive demand o$ers America—the world’s greatest builders, manufacturers, and service providers—huge opportunities, if we seek them out. "e stronger ties and increased in!uence that can be produced if we seize the opportunity will help ensure that Europe—whole and strong—remains America’s geopolitical and economic partner in a world where dramatic shifts in global GDP and population are swinging to other regions.

We would do well to remember that Europe is America’s largest trading partner. Our prosperity and global in!uence in the trade-based global economy is tied directly to Europe’s fate. "e continent’s success, and indeed, the maintenance of a stable global order, depends on the fate of these still !edgling democracies and free market economies that desire and need America’s partnership, and especially the participation of our private sector.

Steps for Reforming Engagement

America cannot achieve its 21st century objectives without harnessing the synergies of its public and private sectors. "is will require a more holistic, inclusive, and modern U.S. global engagement strategy. We can start by making four critical organizational reforms.

First, we need to incorporate better private sector perspectives, needs, and capabilities into the strategic planning processes of U.S. diplomats and our military’s geographic commands. "e private sector possesses valuable expertise and insights that can contribute mightily to

better diplomacy and understanding of regional and local security dynamics. Moreover, the appropriate assistance and advocacy that our diplomats and military authorities can provide to our private sector can win America a greater share of business and in!uence abroad which, in turn, will feed right back into improved U.S. standing and security.

Second, the public sector can do a better job of identifying economic, social service, and civil society promotion opportunities in strategically vital countries. Our “country teams” can expand e$orts to make this information available to our private sector while providing stronger advocacy in foreign capitals on behalf of U.S. enterprises vying against sti$ global competition.

"ird, we must ramp up the pace and breadth of our trade missions. We should consider programs, some of which I’m currently working on, that will promote the joint deployment of government o#cials, corporate leaders, and NGO representatives abroad. "e use of “engagement missions” will enable these individuals to reinforce their unique but synergistic capabilities and value proposition. No other country is better suited to provide holistic approaches to comprehensive economic, political, and social problems than the United States. It is among our most potent comparative advantages, and we must harness it.

Fourth, the United States must vigorously expand its international trade and market access agenda. Not only do we need a broader scope of agreements to promote U.S. commercial access abroad, we must improve the scope and speed of our export promotion and %nancing systems. "e Export-Import Bank and the Overseas Project Investment Corporation (OPIC) must be reauthorized and expanded to compete with China and others. We must match these e$orts with modernizing our export control laws and policies so that American companies can better compete. Opening markets for the entry of U.S. goods and services gains our country little if we maintain undue barriers that prevent our innovations from exiting.

We live in a multi-polar world, one largely inspired by America’s model and catalyzed by our leadership. "e world’s demographic and economic balance of power is shifting rapidly, and we now face new challenges to our accustomed role. "ese changes do not mean that we cannot be just as successful in this new century as we were in the last; it will nevertheless take work, discipline, tenacity, vision, and better strategy. Above all, it will take political leadership that—as a matter of national interest—sets a tone strongly supportive of government’s legitimate and important role in promoting the U.S. private sector’s interests and engagements internationally.

"ere is no doubt that the world still wants and needs America; the question today is whether America perceives the need to answer that challenge. Doing so is a national mission we dare not fail. "e stakes couldn’t be higher—the quality of life for future generations of Americans and a more stable world.

General James L. Jones serves as president of Jones

Group International. As the former commander

of U.S. European Command and Supreme Allied

Commander Europe, he led all military operations for

the North Atlantic Treaty Organization and later, as

National Security Advisor, he brought clear vision and

steady leadership to America’s mission in Iraq, the war in Afghanistan,

and the country’s interests around the world. Jones graduated from the

Georgetown University School of Foreign Service and was commissioned

into the Marine Corps in January 1967. On returning to the U.S., he

pursued a career in the Marines, attending the Amphibious Warfare School

in 1973 and the National War College in 1985, and serving as Marine

Corps liaison officer to the U.S. Senate. He was also commanding officer

of the 24th Marine Expeditionary Unit in Northern Iraq and Turkey on

Operation Provide Comfort; chief of staff, Joint Task Force Provide Promise,

for operations in Bosnia-Herzegovina and Macedonia; and commanding

general, 2nd Marine Division, Marine Forces Atlantic. He also served as

Military Assistant to the Secretary of Defense from 1997-99. He became the

32nd commandant of the United States Marine Corps in July 1999. Upon

retirement in February 2007, the combat veteran became the president

and CEO of the U.S. Chamber of Commerce’s Institute for 21st Century

Energy and, in 2008, served as the State Department’s Special Envoy

for Middle East Regional Security. From 2009 until 2010, he served as

President Obama’s National Security Advisor at the White House.

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THE NATIONAL MISSION BUsiness Horizon Quarterly !"#$%"

WE WOULD DO WELL TO REMEMBER THAT EUROPE IS AMERICA’S LARGEST TRADING PARTNER. OUR PROSPERITY AND GLOBAL INFLUENCE IN THE TRADE-BASED GLOBAL ECONOMY IS TIED DIRECTLY TO EUROPE’S FATE.