In May 2000, the United States spearheaded a Defense Trade Security Initiative (DTSI); a package of 17 measures designed to enhance allied interoperability and coalition warfighting capabilities by facilitating the transfer of critical U.S.-origin defense items to our allies. At the same time, DTSI promotes a strong and robust allied transnational defense industrial base that can provide innovative and affordable products needed to meet allied warfighting requirements for the 21st century.
Transformation extends well beyond the acquisition of new military systems — we seek to leverage advanced technological, doctrinal, operational and organizational innovations both within government and in the commercial sector to give U.S. forces greater capabilities and flexibility. Joint Forces Command and the Armed Services are pursuing an aggressive, wide-ranging innovation and experimentation program to achieve that transformation. The Service programs focus on their core competencies and are organized to explore capability improvements in the near-, mid-, and far-term. The Joint Forces Command program ensures a strong joint perspective while also complementing efforts by the Services. A multilateral program has also been developed. NATO’s Defense Capabilities Initiative now includes both a NATO-centered and nation-centered concept development and experimentation program, which Joint Forces Command complements with a joint experimentation program to include allies, coalition partners and friends. A recently inaugurated interagency process on Contingency Planning offers the promise of improving the coordination among government agencies well before a crisis is at hand.
The on-going integration of the Active and Reserve components into a Total Force is another important element of the transformation. Despite the rapid pace of technological innovation, the human dimension of warfare remains timeless. In this era of multinational operations and complex threats involving ethnic, religious, and cultural strife, regional expertise, language proficiency, and cross-cultural communications skills have never been more important to the U.S. military. We will continue to transform and modernize our forces by recruiting, training, and retaining quality people at all levels of the military and among its civilian personnel who bring broad skills, an innovative spirit, and good judgement to lead dynamic change into the 21st century.
To support the readiness, modernization and transformation of our military forces, we will work with the Congress to enact legislation to implement the Defense Reform Initiative, which will free up resources through a revolution in business affairs. This effort includes competitive sourcing, acquisition reform, transformation of logistics, and elimination of excess infrastructure through two additional rounds of base realignment and closure. The Administration, in partnership with the Congress, will continue to ensure that we maintain the best-trained, best-equipped and best-led military force in the world for the 21st century.
In the area of law enforcement, the United States is already facing criminal threats that are much broader in scope and much more sophisticated than those we have confronted in the past. We must prepare for the law enforcement challenges arising from emerging technology, globalization of trade and finance, and other international dynamics. Our strategy for the future calls for the development of new investigative tools and approaches as well as increased integration of effort among law enforcement agencies at all levels of government, both in the United States and abroad.
We will continue efforts to construct appropriate 21st century national security programs and structures government-wide. We will continue to foster innovative approaches and organizational structures to better protect American lives, property and interests at home and abroad.
Globalization, which has drawn our economic and security interests closely together, is an inexorable trend in the post-Cold War international system. It is logical, then, for the United States to capture its positive energy and to limit its negative outcomes, where they exist. In doing both we will be able to promote shared prosperity, the second core objective of our national security strategy.
Strengthening Financial Coordination
As a result of economic globalization, prosperity for the United States and others is inextricably linked to foreign economic developments. Interdependence of this degree makes it incumbent upon the United States to be a cooperative leader and partner in the global financial system. This means doing our part to provide economic and political support to international financial institutions; working to reform them; equipping them with the tools necessary to react to future financial crises; and expanding them to embrace sustainable development efforts in emerging market economies.
Our objective is to build a stable, resilient global financial system that promotes strong global economic growth while providing broad benefits in all countries. Throughout the past seven years, Congress and the President have worked together to enhance funding for international economic institutions and programs. Promoting our prosperity requires us to sustain these commitments in the years and decades ahead.
Drawing on the lessons of the Mexican peso crisis in 1994 and the Asian crises in 1997 and 1998, the United States took the lead in advocating steps to strengthen the architecture of the international financial system so that it more effectively promotes stronger policies in emerging market economies, works to prevent crises, and is better equipped to handle crises when they do occur. As part of a proactive effort to retool the system, the United States proposed creation of the Contingent Credit Line in the IMF to encourage countries to avoid crises. In addition to providing external incentives, it assists these countries to also improve their own debt management. The United States has also taken the initiative in 1999 and 2000, once financial stability was restored, to advocate a series of reforms in the International Monetary Fund (IMF) and the World Bank. These include restructuring lending instruments, introducing greater transparency and accountability into their operations, increasing efforts to reduce vulnerability in advance of crisis, and involving private sector creditors in crisis resolution.
Some developing countries face particularly difficult challenges in their efforts to achieve sustainable development. The HIPC Initiative, as both an international assistance and development tool, provides multilateral debt reduction to countries facing unmanageable debt burdens. In addition to providing $1 billion in support to the HIPC, the United States has led the IMF, World Bank, and other financial institutions to focus attention and resources on the health, education, environment, and poverty issues that surround sustainable development.