Governments have at their disposal many economic instruments to promote national security, such as sanctions, foreign aid, international trade, international finance and laws blocking funds for international terrorism. This book examines the use of theses economic policies and addresses how best to measure their effectiveness.

"Updated second edition presents an economic analysis of how people make decisions related to national security." - Journal of Economic Literature

"The authors blend classic economic analysis, behavioral economics, and practical experience to present an original and realistic vision of the dynamics that affect global security decisionmaking." Secretary Michael Chertoff, former United States Secretary of Homeland Security and chairman of the Chertoff Group

"An important book, Professors Shiffman and Jochum uniquely use case studies of economic policies to animate a discussion of national security." General Michael V. Hayden, former Director of the USCentral Intelligence Agency

"In Economic Instruments, Professors Shiffman and Jochum give us an interesting and accurate account of the realities ofnational security policymaking; the economic framework provides a structure for innovation for current and future policymakers." US Senator Connie Mack

"This book is an important reminder that trade and economic engagement can lead to a more peaceful world and that economic and national security are inextricably intertwined." Ambassador Mickey Kantor, former United States Trade Representative and Secretary of Commerce.

"Professors Shiffman and Jochum bring a rare combination of practical experience and rigorous academic economics to urgent questions of national security. Specific policies such as counterterrorism, foreign aid and international law are approached ina framework that considers institutions of government and respectsindividual incentives.They have crafted an engaging book that we'd like to see our policymakers reading on airplanes." Eli Berman, University of California San Diego, author of Radical, Religious and Violent: The New Economics of Terrorism

'Shiffman and Jochum's important book illuminates the levers some open, many hidden, all subject to interpretation that drive the decision-making behaviors of individuals within institutions and systems. Their insights suggest that in a very real sense economic security is national security and vice versa, and that an economic approach to the analysis of decision-making has much to offer scholars, leaders and practitioners in the field.' David J. Kilcullen, former Special Advisor for Counterinsurgency to the U.S. Secretary of State and Senior Counterinsurgency Advisor to General David Petraeus

Autorentext
GARY M. SHIFFMAN Senior Fellow at Centre for Peace and Security Studies and Professor in the Security Studies Department at Georgetown University in Washington DC, USA. He is also Senior Vice President for Global Security for L-3 Communications Government Services Group. He has served as Chief of Staff at U.S. Customs and Border Protection in the United States Department of Homeland Security, and held senior positions in the U.S. Senate and Department of Defense.

JAMES JOCHUM Adjunct Professor in the Security Studies Program at Georgetown University. He is the founding member of both Jochum Shore & Trossevin PC and Black Swan LLC.

Inhalt
Acknowledgments Forward to the Second Edition Introduction PART I: THE INDIVIDUAL States Don't Make Decisions; People Do Adam Smith and Twenty-first Century National Security Maximizing, Rationality, and the Bounds of Institutions Experimentation in Economic Science The Economics of Autocracies Some Are Ranchers and Some Are Wolves Predicting the Dictator: A Theoretical Model Principles for Policymakers PART II: THE WORLD Castro's Cuba and U.S. Sanctions The Cuban Economy in the 1990s Dictating Economic Performance Sanctions: Truth in Advertising Democracies and the Politics of Trade Free Trade Agreements Case Study: The PRC and Most Favored Nation Status Case Study: Pistachios, Rugs, and Relationship-Building Study: India and Commerce Case Study: The PRC, Public Disclosure and Verified End Users Import Restrictions Case Study: The PRC and non-market economies Trade as a Tool: Roundup Money and Finance as Security Tools Money Inflation Case Study: Swiss dinars and Saddam dinars Case Study: Internet Marketplace Case Study: Money Laundering in Ukraine Exchange Rate Choices and National Security Choosing an Exchange Rate Case Study: Dollarization Choosing Power Over Growth, Again Maximizing Over Time Through Lending and Borrowing International Finance Case Study: International Financial Institutions and the East Asian Financial Crisis Case Study: Tibet vs. the World Bank at Qinghai Sovereign Lending and Foreign Direct Investment Debt Dynamics and Debates Case Study: Debt Forgiveness - Republic of Congo Case Study: Did the Great Recession Change the Competitive Equation? Summary: Money, Exchange Regimes, Debt Curing Poverty Helps National Security Terrorism, Insurgency, and Poverty Theory of Growth Incentives and Growth De-industrialization: When Countries Do Not Invest in Domestic Capacity Case Study: The Millennium Challenge Account Case Study: The African Growth and Opportunity Act Case Study: Saudi Arabian Charities Case Study: Iraq CaseStudy: Syria Case Study: Law Enforcement Against al Qaeda Case Study: Brothers to the Rescue and the "Anti-Terrorism Amendment" to the FSIA Conclusion Appendix Endnotes