The Morning Call

In US, a renewed zeal for economic warfare

- Rachel Marsden

PARIS — Under U.S. President Donald Trump, we’re increasing­ly seeing warfare being boiled down to its essence: economics.

Let’s face it: All warfare involving America has an economic impetus. If national security was really the primary considerat­ion, there would be fewer wars, and they’d end more quickly.

The idea of having to go to the other side of the planet to eradicate terrorists so they don’t come to America is nonsense. If you don’t want terrorists to come, don’t let them in. And if terrorist eradicatio­n was the real objective, the mission would involve identifyin­g and liquidatin­g them — not hanging around building new bases and embassies in their vicinity, then whining that they’re still a threat decades later.

Traditiona­lly, economic developmen­t within the security complex has been more closely associated with intelligen­ce work and the CIA than with the Pentagon.

The reason for this is mostly self-serving. If the CIA focused more on generating new business and revenue rather than on its paramilita­ry role, it would have trouble justifying its bottomless budgets.

Under President Bill Clinton, that policy shifted. The Clinton administra­tion was big on trade agreements, with Clinton notably signing the North American Free Trade Agreement and the Uruguay Round Agreements Act (which created the World Trade Organizati­on). To that end, the administra­tion was interested in economic intelligen­ce that could help shape a strategy to lock in trade agreements despite unreadable opposition.

For instance, in 1993, France under President Francois Mitterrand was blocking ratificati­on of the General Agreement on Tariffs and Trade in the days leading up to the vote. The CIA mounted an economic espionage and influence operation that was detected by French domestic intelligen­ce and ended with several CIA officers and the chief of station expelled from France.

After the 9/11 terrorist attacks, the CIA reverted back to more traditiona­l, noneconomi­c espionage and a more paramilita­ry role. But now Trump seems interested in once again waging economic warfare.

One of the Pentagon’s new missions is to work with other federal department­s to secure sources for the minerals used in weapons production, circumvent­ing China’s monopoly on them. After all, it’s difficult to put the screws to China on trade when the Chinese own a critical part of your defense supply chain.

Limiting foreign participat­ion in U.S. technology companies is another part of the new Pentagon strategy. Last month, Ellen Lord, the undersecre­tary of defense for acquisitio­n and sustainmen­t, announced a new program to “convene trusted sources of private capital with innovative companies critical to defense industrial base and national security.”

While the new program is a seemingly good idea on the surface, the risk is that a closed market of hand-picked investors could become a haven for crony capitalism. If the objective is to prevent adversarie­s from obtaining U.S. national security technology, well … that horse has long since bolted from the barn.

In 2013, the head of exports for the Israeli Defense Ministry resigned after the U.S. discovered that the missile defense technology it had passed to Israel was subsequent­ly sold to China — leaving open the possibilit­y that it could be sold to North Korea, Iran or any other nation.

Defense-grade cyberspyin­g technology has also escaped into the wild. Reuters has reported that former U.S. intelligen­ce operatives working for the United Arab Emirates used a sophistica­ted tool to monitor targets by hacking into their iPhones.

America’s national security was long ago sold to the highest bidder, and the world is now full of former U.S. defense and intelligen­ce operatives willing to sell their skills and experience for profit. Economic intelligen­ce is critical, but using it strictly for national security rather than for economic developmen­t is misguided.

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