The Impact of Diplomacy and Development on Economic Prosperity

Posted by DipNote Bloggers
July 12, 2011

Secretary of State Hillary Rodham Clinton delivered remarks today to the U.S. Global Leadership Coalition (USGLC) 2011 Conference in Washington, D.C. Secretary Clinton said:

"We are gathered at a moment when our challenges, both at home and abroad, demand that all of us take stock of what we can do to renew America's economic strength, create jobs, and invest for the future. That quest does not end at our borders. Our foreign policy must be a force for economic renewal here at home. We all know that families are struggling to get back on their feet after the most severe economic downturn since the Great Depression. We all know we face genuine economic competition in more sectors, from more companies, from more places than ever before, whether it's from Indian pharmaceutical companies or Brazilian jet manufacturers. And all of us here today recognize that a strong economy at home is vital to America's leadership in the world. Now there will be many prescriptions for what is needed. My plea is that the prescriptions be evidence-based and not ideological or even theological, as sometimes they seem to be.

"And after spending two and a half years as your Secretary of State, traveling nearly 600,000 miles, I have reached one overarching conclusion: Simply put, we need to up our game. President Obama understands the stakes, and this Administration is hard at work to help America out-innovate, out-educate, and out-build the rest of the world. We need to double down on what we do well and add new tools and techniques to compete effectively in the 21st century to be strong at home and to lead abroad.""So let me briefly make five points about what we at the State Department, USAID, and the rest of the U.S. Government are doing, and what we believe American businesses need to do to compete more effectively abroad. Because of the importance of this work, I will be addressing it in more detail in two speeches in the months ahead."

Secretary Clinton continued, "First, State and USAID are engaged in commercial diplomacy that leverages our global presence to help our companies compete and win. The State Department has over 1,000 economic officers and over 400 locally employed staff around the world, as well as 200 people in our Economic Bureau in Washington, who wake up every day asking how they can break down barriers and find opportunities for American workers and businesses. ...I have formally instructed all of our ambassadors to act as CEOs of whole-of-government efforts to promote U.S. exports to their countries. And we are partnering more with chambers of commerce here and abroad. I will be working with Tom Donohue and the American Chamber to bring together representatives from American Chambers of Commerce around the world to discuss how we can boost American exports together so that we partner up more between our government and our private sector so that we have greater resources and greater reach.

"Now, these steps are part of a whole-of-government effort to increase exports that includes Treasury, Commerce, the Export-Import Bank, the Overseas Private Investment Corporation the U.S. Trade and Development Agency, and many others. And it also includes the President's Export Council, which President Obama convened to bring together business leaders, lawmakers, members of the Cabinet, including myself."

Secretary Clinton then said, "Second, even as we help individual companies, our commercial diplomacy is also taking on the new barriers behind borders that are denying many of our companies a chance to compete fairly. This is something I will be speaking about at length in Hong Kong. Because when we see governments enact regulations that are an excuse to give state-owned enterprises or local favorites an unfair advantage, our embassies are pushing back.

"When companies impose so-called indigenous innovation requirements that try to force our companies to trade away their intellectual property to enter or expand in a foreign market, we are pushing back. We work to protect intellectual property, resist favoritism for state-owned enterprises, and protest discrimination against our companies in procurement. And we are insisting on a level playing field for our investors. Because when American businesses are not treated fairly, that's not just an economic issue. It is also a diplomatic issue, and we raise it at the highest levels."

Secretary Clinton continued, "Third, part of commercial diplomacy involves helping companies become more creative about what to export. For example, we are working to build markets and find customers overseas for industries that haven't always traded beyond our borders, like higher education or medical technology. To increase exports, we need to take advantage of all of our strengths, and we have a comprehensive approach to doing that.

"Fourth, we promote trade to open new markets and create jobs here at home. I know two things about trade: It is a polarizing political issue, but done right, it creates American jobs. While our economic competitors are signing bilateral trade deals with countries in Africa, Latin America, and Asia, the three trade deals now working their way through Congress have the potential to create tens of thousands of new American jobs. The U.S.-Korea Free Trade Agreement is projected to grow our economy by at least $10 billion annually.

"The U.S.-Colombia Free Trade Agreement would allow our businesses to sell goods in Colombia duty free the same way Colombian goods have entered the United States for many years. And it comes with important new guarantees on labor and human rights. In Panama, instead of paying tariffs as high as 81 percent as American businesses do now, 88 percent of the consumer and industrial goods we export would enter Panama duty free. Passing these deals is critical to our economic recovery.

"But the stakes are not just economic. These nations are three important partners in strategically vital areas. Countries everywhere are watching to see whether America will deliver for our friends and allies. And so I urge Congress to approve these agreements and a trade adjustment assistance program before the summer recess. It's time to put these trade deals to work on behalf of the American people. In addition to these free trade agreements, we are working to expand trade and access for our companies in other ways wherever we can.""...Overall, foreign investment is responsible for more than five million American jobs, including two million in manufacturing. That's why the Commerce Department recently launched a new program called SelectUSA to mobilize our ambassadors, our state governors, our State and Commerce Department officials to attract more investment in America. It is also why I created a new position in the State Department to deal with our own non-federal officials -- state governors, city mayors, and the like -- and their counterparts abroad. ...We are also pursuing bilateral investment treaties, the so-called BITs. They make it easier to invest in America, and they protect our investments overseas."

The Secretary continued, "Fifth, we are supporting foreign aid and development work to build up tomorrow's trading partners and create opportunities for American companies. With your help, for which I am very grateful, I have advocated for elevating development alongside defense and diplomacy. Now there is, of course, the imperative moral case that our development and humanitarian work saves the lives of the hungry and the sick, helps countries become self-sufficient, and helps people live up to their own God-given potential.

"There is also the security argument that successful development helps to stabilize society, reduces the risk of future conflict. But I believe the economic case is just as compelling. The growth of the developing world presents a major economic opportunity for American business today and a thousand opportunities tomorrow. As Bill Gates told the USGLC earlier this year, and I quote, 'I can't predict the exact future, but I can predict that a world with 200 healthy and thriving countries offers much greater opportunity than the world we have now.' I couldn't agree more."

Secretary Clinton concluded, "We are implementing the first-ever Quadrennial Diplomacy and Development Review recommendations as part of the QDDR that I commissioned. We will be appointing the Department's first-ever chief economist. And we will be merging our economic work into a new under secretariat for economic growth, energy, and the environment, including a new bureau for energy and natural resources. We are also revising the Foreign Service entrance exam to ensure that we select top economic talent and build our economic literacy from the bottom up. And we are urging American companies to roll up their sleeves, get out there, and engage with the economic opportunities that are emerging across the world.

"This is a moment to lean forward and take the kinds of informed risks that have led to some of our greatest successes. We need American businesses to recognize the long-term stakes as well as the short-term rewards. And as they do, they will have our full support. With persistence, patient diplomacy, we can ensure that American companies large and small get a fair shake and a chance to compete on their merits. But that takes resources. And to win those resources, we need political will and we need your support, because that political will depends to a large extent on our ability to tell our story, make our case, and win the argument that this is important for purposes far beyond doing the right thing. It is part of what we call smart power.

"The 1 percent of our budget we spend on all diplomacy and development is not what is driving our deficit. Not only can we afford to maintain a strong civilian presence; we cannot afford not to. The simple truth is if we don't seize the opportunities available today, other countries will. Other countries will fight for their companies while ours fend for themselves. Other countries will promote their own models and serve their own interests instead of opening markets, reinforcing the rule of law, and creating widespread inclusive growth. Other countries will create the jobs that should be created here, and even claim the mantle of global leadership. None of us want to see that happen, and I don't believe most of the people around the world do either.

"Everywhere I travel, I meet people not just looking to us, but asking us for leadership. This is a source of strength, a point of pride, and a great opportunity. But it is an achievement, not a birthright. Maintaining it requires resolve and it requires resources. The work that you have done helps to sustain the investments that make American leadership possible.

"So I thank you. I thank you for understanding what we must do to maintain our position in the world politically, strategically, economically, and morally. And thank you for what you do to help the American people and people around the world to live up to their own God-given potential, and to help create a better, safer, and more prosperous planet."

You can read the Secretary's full remarks here.



July 14, 2011

W.W. writes:

Europe has to change System

Accordingly to report Europe is now and for more then 30 years corrupted and if this system will be kept In less then 2 years it will bankrupt.

In order to restore develpment and economic prosperity it must change current officials and authorities even if they have been voted from European population.

Democracy today can't afford to finance a Barabbas society as in the past and democracy cannot afford to guarantee right for a barabbas society to be elected and come to power.

THE WORLD needs philanthropes not entrepreneur and society needs to Act and Lead toward a future which start today.

With The internet we have a great huge opportunity not even possible 2 years ago.

We can make it together silently and unexpensivly

If Europe won't change current administrative leading society In 2 years it will experience the same problem it is experiencing today in a sort of huge Groundhog Day but 1000 times worse

It is time to act and remove from power current Oligharchic society around the globe work for the globe against who is working and have interest to drag population in poverty.

It is time to make a choice in understanding how we want our tomorrow. like today but worse? or like today but better? or just different new with the today forgotten like it has never existed.

New Mexico, USA
July 13, 2011

Eric in New Mexico writes:

If I could offer a suggestion to Sec. Clinton's speech writers, or herself for that matter on anything she may say at the UNGA in Sept. or anywhere else for that matter; there's one speech I think folks should draw upon for reference.

That would be the Armistice Day speech by General Omar N. Bradley in Boston, Massachusetts-November 10, 1948

Simply to remind folks what is at stake if for no other reason.

I include here a few things from it that would put her speech here in context, and begin with his closing thoughts;

(personal thoughts in parenthisis)

"...we must not forget that we are also engaged in a long-range conflict of ideas. Democracy can withstand ideological attacks if democracy will provide earnestly and liberally for the welfare of its people.

To defend democracy against attack, men must value freedom. And to value freedom they must benefit by it in happier and more secure lives for their wives and their children.

Throughout this period of tension in which we live, the American people must demonstrate conclusively to all other peoples of the world that democracy not only guarantees man’s human freedom but that it guarantees his economic dignity and progress as well.

To practice freedom and make it work, we must cherish the individual; we must provide him the opportunities for reward and impress upon him the responsibilities a free man bears to the society in which he lives."

(we are a nation of nation builders on many levels)

"Disillusionment is always the enemy of peace. And today—as after World War I -disillusionment can come from expecting too much, too easily, too soon. In our impatience we must never forget that fundamental differences have divided this world; they allow no swift, no cheap, no easy solutions.

While as a prudent people we must prepare ourselves to encounter what we may be unable to prevent, we nevertheless must never surrender ourselves to the certainty of that encounter.

For if we say there is no good in arguing with what must inevitably come, then we shall be left with no choice but to create a garrison state and empty our wealth into arms.

The burden of long-term total preparedness for some indefinite but inevitable war could not help but crush the freedom we prize. It would leave the American people soft victims for bloodless aggression.

BOTH the East and the West today deprecate war. Yet because of its threatening gestures, its espousal of chaos, its secretive tactics, and its habits of force—one nation has caused the rest of the world to fear that it might recklessly resort to force rather that be blocked in its greater ambitions.

The American people have said both in their aid to Greece and in the reconstruction of Europe that any threat to freedom is a threat to our own lives. For we know that unless free peoples stand boldly and united against the forces of aggression, they may fall wretchedly, one by one, into the web of oppression.

It is fear of the brutal unprincipled use of force by reckless nations that might ignore the vast reserves of our defensive strength that has caused the American people to enlarge their air, naval, and ground arms.

Reluctant as we are to muster this costly strength, we must leave no chance for miscalculation in the mind of any aggressor.

Because in the United States it is the people who are sovereign, the Government is theirs to speak their voice and to voice their will, truthfully and without distortion.

We, the American people, can stand cleanly before the entire world and say plainly to any state:

“This Government will not assail you.

“You can have no conflict without being yourselves the aggressor.”

Since the origin of the American people, their chief trait has been the hatred of war. And yet these American people are ready to take up their arms against aggression and destroy if need be by their might any nation which would violate the peace of the world.

There can be no compromise with aggression anywhere in the world. For aggression multiplies—in rapid succession—disregard for the rights of man. Freedom when threatened anywhere is at once threatened everywhere."

(put this passage in today's context with respect to Iran & North Korea)

"...humanity is in danger of being trapped in this world by its moral adolescents. Our knowledge of science has clearly outstripped our capacity to control it. We have many men of science; too few men of God. We have grasped the mystery of the atom and rejected the Sermon on the Mount. Man is stumbling blindly through a spiritual darkness while toying with the precarious secrets of life and death. The world has achieved brilliance without wisdom, power without conscience. Ours is a world of nuclear giants and ethical infants. We know more about war than we know about peace, more about killing than we know about living."

(Smart Power was concieved to address this)

donald M.
Virginia, USA
July 14, 2011

Donald M. in Virginia writes:

China our closet ally or a country that has out smarted our politicans.

China, the biggest American foreign creditor with more than $1 trillion in Treasury debt as of March, called on the U.S. government Thursday to adopt "responsible policies" to protect investor interests.

I heard on the news how President Barack Obama stormed out of the debt celing meeting, well if this mess is NOT sorted out, our Nation will have more to tend with when China decides to bury our Nation with more Debt.

They talk about the Gold Master Card of Credit, but hasn't anyone at the White House thought, if you continue to do the kind of business with China, they will own YOU! They will eventually they will call in the MARKER!

I think the United States needs this debt limit passed, but to bring compromise is you know the Chinese will need billions of tons of rice to feed all those people. So maybe the smartest thing Our Nation can do is start making enough RICE in future to sell to the Chinese to help bring down our deficit.

Also there should be some kind of tax placed on the goods coming in from China. If Not they will continue to bury our economy with Chinese Goods.

Heck take a trillion dollars and invest in Rice Crops in the United States. Puts farmers to work, gives jobs and you know Asia will buy it, with the billions of Chinse have to eat.

New Mexico, USA
July 14, 2011

Eric in New Mexico writes:

@ Donald,

If the news report had it right, what the Chinese general actually said was that the US shouldn't be spending so much on our military when we have a fiscal problem.

Frankly that had me in stitches, and get's my vote as the most ignorant statement to date ever uttered from anyone in the region in the last half century we've, through great expense mind you, kept the peace on the Korean peninsula and the region much to everyone's economic development.

To the tune of about 10 trillion dollars my friend if one was to take inflation, interest, and what our return might of been had China stepped on 'lil kim's neck long before he became a nuclear armed terrorist threatening nuclear war every time he has a bad political hangover, and continualy starves his people in genocidal manner.

All the while China seeks to continue to do buisness with us?

Well I'm all for that, so long as they reimburse us for our expenses before Aug 2nd.

Oh, we can negotiate the bill we send them allright if they want to work some of it off.

I figure we can cut them some slack to the tune of a trillion or two, if they are willing to invite the North Korean leadership and top generals to a bilateral security conference in Bejing after convincing 'lil Kim China wishes to discus their new hard-line approach to the imperial dogs poking their noses where they arn't wanted.
'lil Kim will be oh so happy to attend that shin-dig in a fast second.

Then China simply arrests them all on the spot, informs the rest of the military that "2 million Chinese troops are prepared to cross the Yalu river, to put their weapons down, pick up their bowls, it's dinner time. Resistance is futile."

China then marches forth to become a hero to every nation in the region with an interest in preserving economic stability and the peace of nations, accepting their responsibility as a global partner, doing so in their own national self interests in this process.

Better we ruffle their feathers from calling in the marker with a bill from Treasury and the GAO's itemized accounting, than folks in the Cabinet room at the WhiteHouse getting all flustered with each other when such a fiscally sane idea would save their bacon, and ours.

@ To anyone in the US government that is reading this-

I hereby formally and publicly challenge any one of you right here, right now; to come on this blog and tell me why we can't do this by the end of next week and present this bill to China for the reasons outlined above.

If you cannot, or lack the cojones to debate this idea; then I make formal and public request that this message be walked into the Cabinet room and hand-delivered to the President himself, as I understand folk generally don't shoot messengers.

They may shoot me, but you'all have your invitation to shoot this idea down publicly so I can stop talkin' about it.

You'd be doin' me a favor one way or another.
And everyone on this planet if the President decides it's doable and desirable, and the VP thinks this is a "really big freekin' deal" dwarfing any proposal walked in that door to date.

My only regret is I won't be there to see the look on folk's faces when the President get's this dipnote and reads it aloud to those present.

At the very least I would expect it to break the icy chill in the room.

Thanks for your consideration in these most dire matters of national security.



South Carolina, USA
July 17, 2011

Jeanne in South Carolina writes:

Prosperity Using Soldiers at Home

We are pro-peace and pro-non-invasion -- and, pro-prosperity for the USA!

Bring them all home, keep them employed at their same pay/same responsibility/ same buddies, FIX our ROADS, BRIDGES, HOMELESSNESS, etc.

Our infrastructure needs so much work here, and instead of fighting, they could be supporting our country and saving lives here!

It will help all around, I believe, and give a new definition to "service" lives, no more homeless vets, no added unemployment, added numbers for jobs, use the training they already have,!

PLUS...happy people everywhere... happy people = happy city = happy county = happy state = happy country!

Those are real solutions, not just talk. I like it. It could happen with compassion and real gratitude for what our vets give, and their families as well- too many end up living in poverty. It's just wrong. Raise my taxes to help pay for humanitarian care, not for the war machine.

The budget is ALL Pentagon with crumbs for the other we have drones we don't really need to 'basic train' millions of guys and gals to go 'kill or be killed' on the ground. Keep our butts at home to be 'the best country in the world' because we love our citizens and want them to have the best --- doable with suggestions above, I believe.

The current population of 'at home' vet -- homeless or not -- probably needs a way to disipate the stress of battle -- how better than to use it giving back (not that they took anything) to the poorer folks. Instant gradification in watching the improvements....

Using the schooling already sitting up there in their heads -- blow up rocks to improve the roads, design a bridge using military stats, put people in empty houses rather than build barracks -- crap, use someplaces like Detroits closed factories as the base of the new improved CCC -- MCC? -- clean up crime and put the area back in play.

Plenty of military aircraft to get around from place to place in and lots of jeeps(?) to travel in ..... anyway, outta the box brainstorming...

We need to give these ideas to the government, your representatives. They need people to think creatively like this...

....Don't we just want to be creative -- and, still a Peacenik -- revolutionary -- want to think outside the box as much as possible.

It is a new day dawning! Peace, now!
Down the road, I'd like to see a national organization that would offer training and employment for young adults at similar wages and conditions as the military, but for non-military service to your country - building infrastructure, forestry, parks service, public works, diplomacy.

Spred the word about getting these wars stopped and bringing the soldiers home to bring prosperity upon our wonderful country. We are mainly concerned about the peace effort right now and offering an alternative to homelessness to the vets. The outshoot of this, we hope, will be expanded to include others....we are here to assist each other to the highest of our ability.


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