STRATEGIC ADVANTAGE STRATEGIC ADVANTAGE Challengers, Competitors, and Threats to America’s Future BRUCE BERKOWITZ In cooperation with the Center for Peace and Security Studies Edmund D. Walsh School of Foreign Service Georgetown University Georgetown University Press Washington, D.C. GeorgetownUniversityPress Washington,D.C. GeorgetownUniversityPress,Washington,D.C.www.press.georgetown.edu (cid:2)2008byGeorgetownUniversityPress.Allrightsreserved.Nopartofthisbookmaybe reproducedorutilizedinanyformorbyanymeans,electronicormechanical,including photocopyingandrecording,orbyanyinformationstorageandretrievalsystem,without permissioninwritingfromthepublisher. LibraryofCongressCataloging-in-PublicationData Berkowitz,BruceD.,1956– Strategicadvantage:challengers,competitors,andthreatstoAmerica’sfuture/ BruceBerkowitz. p. cm. Includesbibliographicalreferencesandindex. ISBN978-1-58901-222-6(alk.paper) 1.Nationalsecurity—UnitedStates. I.Title. UA23.B419 2008 355’.033073—dc22 2008005136 (cid:3)(cid:2) Thisbookisprintedonacid-freepapermeetingtherequirementsoftheAmerican NationalStandardforPermanenceinPaperforPrintedLibraryMaterials. 15 14 13 12 11 10 09 08 9 8 7 6 5 4 3 2 Firstprinting PrintedintheUnitedStatesofAmerica Figure2.1isareproductionoftheoriginalengravingfromGale,TheMakingofthe ModernWorld,firstedition.(cid:2)Gale,apartofCengageLearning,Inc.Reproducedby permission.www.cengage.com/permissions. Allstatementsoffact,opinion,oranalysisexpressedarethoseoftheauthoranddonot reflecttheofficialpositionsoftheCIAoranyotherU.S.Governmentagency.Nothing inthecontentsshouldbeconstruedasassertingorimplyingU.S.Government authentificationofinformationorAgencyendorsementoftheauthor’sviews.This materialhasbeenreviewedbytheCIAtopreventthedisclosureofclassifiedinformation. To T. G. CONTENTS Acknowledgments ix INTRODUCTION Challenges 1 CHAPTER ONE Trends 16 CHAPTER TWO Power 53 CHAPTER THREE TheAmericanEdge 94 CHAPTER FOUR Pacing 133 vii viii (cid:2) CONTENTS CHAPTER FIVE Agility 179 CHAPTER SIX Command 206 CONCLUSION KeepingtheStrategicAdvantage 224 Notes 233 Index 269 ACKNOWLEDGMENTS Iamglad tohavetheopportunity tothankseveralpeople fortheirideas, comments, and support as I wrote this book: Rachel Abrams, James Adams, Thomas Behling, Bruce Bueno de Mesquita, Anthony Downs, JosephEngelbrechtJr.,RandallFort,AdamGarfinkle,GrantHammond, GregoryIp,JohnLehman,TodLindberg,AndrewMarshall,Christopher Mellon, Linda Millis, Steven Mufson, John Playfair, G. Bingham Powell, Tim Roemer, Henry Rowen, Kori Schake, Rex Swensen, and CharlesWolf.FundingforthisprojectwasprovidedbytheHooverInsti- tution at Stanford University, whose support was much appreciated. ThanksarealsoduetoKelley,and,onceagain,Bob. ix