Follow the Money: Finance and the Future of Allied Economic Statecraft

The ability to mobilize and direct public and private capital into critical industries like defense and technology is becoming the defining instrument of contemporary economic statecraft. Governments are creating new financial tools, such as specialized investment funds and financing platforms, to align national priorities with private investment. The generative AI infrastructure boom illustrates this dynamic, where control over capital and supply chains determines who benefits from new technologies. For the United States and its allies, coordinating these financial efforts through vehicles like the NATO Innovation Fund is essential to build resilient industrial capacity and effectively compete against adversaries.