Economic Statecraft and the Federal Institutional Architecture

Economic statecraft is the use of government policy to influence private commercial activities, like investment and supply-chain structuring, to achieve national security goals. The current U.S. approach to this is highly fragmented, with authorities spread across more than 1,400 siloed offices, resulting in a reactive and uncoordinated system. A more effective strategy would organize these economic tools around four clear objectives: to promote U.S. companies, protect key industries, prevent specific threats, and punish adversaries. Improving this capability requires not just institutional redesign but also a concerted effort to develop a new generation of professionals who can bridge the public and private sectors.