Expeditionary economics

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Expeditionary economics is an emerging field of economic enquiry that focuses on the rebuilding and reconstructing of economies in post-conflict nations and providing support to disaster-struck nations.

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The term was first introduced in 2010 in an essay by Carl Schramm, the former president and CEO of the Ewing Marion Kauffman Foundation. [1] It focuses on the need for good economic planning on the part of developed nations to help prevent the creation of failed states. It also emphasizes the need for the structuring on new firms to rebuild national economies. [2]

Carl Schramm American businessman

Carl J. Schramm is an American economist, entrepreneur, and former President and CEO of the Ewing Marion Kauffman Foundation. The Economist named Schramm the "evangelist of entrepreneurship". He is currently a university professor at Syrcause and is the author of the upcoming book Burn the Business Plan: What Great Entrepreneurs Really Do, to be released by Simon & Schuster.

Ewing Marion Kauffman Foundation organization

The Ewing Marion Kauffman Foundation is a registered 501(c)(3) non-profit, private foundation based in Kansas City, Missouri. The foundation was founded in 1966 by Ewing Marion Kauffman, who had previously founded the drug company Marion Laboratories. The Kauffman Foundation focuses on projects that encourage entrepreneurship, support education, and contribute to Kansas City civic life.

Economic planning is a mechanism for the allocation of resources between and within organizations which is held in contrast to the market mechanism. As an allocation mechanism for socialism, economic planning replaces factor markets with a direct allocation of resources within a single or interconnected group of socially owned organizations.

Since then, the theory has been used by the U.S. Government and the U.S. Army to restructure the economies of countries such as Iraq and Afghanistan and helping Haiti after its severe earthquake. Its aim is to provide economic stabilization and support the counterinsurgency tactics in such nations. [3]

Iraq Republic in Western Asia

Iraq, officially the Republic of Iraq, is a country in Western Asia, bordered by Turkey to the north, Iran to the east, Kuwait to the southeast, Saudi Arabia to the south, Jordan to the southwest and Syria to the west. The capital, and largest city, is Baghdad. Iraq is home to diverse ethnic groups including Arabs, Kurds, Chaldeans, Assyrians, Turkmen, Shabakis, Yazidis, Armenians, Mandeans, Circassians and Kawliya. Around 95% of the country's 37 million citizens are Muslims, with Christianity, Yarsan, Yezidism and Mandeanism also present. The official languages of Iraq are Arabic and Kurdish.

Afghanistan A landlocked south-central Asian country

Afghanistan, officially the Islamic Republic of Afghanistan, is a landlocked country located in South-Central Asia. Afghanistan is bordered by Pakistan in the south and east; Iran in the west; Turkmenistan, Uzbekistan, and Tajikistan in the north; and in the far northeast, China. Much of its 652,000 square kilometers (252,000 sq mi) is covered by the Hindu Kush mountain range at the western end of the Himalayas, separating the Amu Darya and Indus valleys. Kabul is the capital and largest city.

Haiti Unitary republic in the Caribbean

Haiti, officially the Republic of Haiti and formerly called Hayti, is a country located on the island of Hispaniola, east of Cuba in the Greater Antilles archipelago of the Caribbean Sea. It occupies the western three-eighths of the island which it shares with the Dominican Republic. Haiti is 27,750 square kilometers (10,714 sq mi) in size and has an estimated population of 10.8 million, making it the most populous country in the Caribbean Community (CARICOM) and the second-most populous country in the Caribbean after Cuba.

History and theory

Expeditionary economics and armies must focus on infusing entrepreneurship and "messy capitalism" which prevails in the U.S. [4] He describes the strategy adopted by economists to quickly establish a trajectory toward economic growth with the formation of firms that can generate rapid growth in revenue and employment. He also asks the U.S. Army to "treat economic reconstruction as part of any successful three-legged strategy of invasion, stabilization or pacification, and economic reconstruction."

The Pentagon has confirmed that it has applied the theory as a “weapon” to stabilize operations in countries with past conflict such as Iraq and Afghanistan and has planned various measures which will come into effect just as the army leaves the countries. With special reference to Iran and Afghanistan, reports show that significant resources have been dedicated to such efforts over the past decade, with hundreds of billions of dollars spent in the two countries. The theory rests to a huge extent on the dynamism of new firms, which constantly introduce innovations into the economy. The U.S Government's recent engagements have made it appreciate that post-conflict economic reconstruction must become a core competence of the U.S. military. However, their actions do not present any such appreciation.

The Pentagon The United States Department of Defenses office building in Virginia

The Pentagon is the headquarters building of the United States Department of Defense, although as a symbol of the U.S. military, the phrase The Pentagon is also often used as a metonym for the Department of Defense and its leadership.

Criticism

There has been widespread criticism of the theory, particularly on the point that it should be carried out by the invading army. Many economists questioned the relative chances of its application by other post-conflict and military nations.[ citation needed ] There have also been questions on whether the U.S. Army should be held liable or whether the objectives should be outsourced to private-sector enterprises or to other departments of the U.S. Government. The U.S. Army Stability Operations field manual (published in 2009) [5] offers no relevant guidance on what role economic development should play in the United States' post conflict strategy or how to help build dynamic, growth-oriented economies. That being said, NATO's preferred COIN operational approach—Clear, Hold, and Build (CHB)—“encompasses offensive, defensive, stability and enabling activities”, which apply the principles of expeditionary economics. [6]

See also

Expeditionary energy economics

Expeditionary energy economics (e3) is an emerging field of energy economics that addresses energy management in the military expeditionary environment or as part of the disaster response stage of the emergency management cycle. The term was first introduced in 2018 in an article by U.S. Army Major Ion A. Iftimie, a research fellow within the Strategic Analysis Department of the NATO Energy Security Center of excellence in Vilnius, Lithuania. Major Iftimie proposed that the successful megacity counterinsurgency (COIN) campaigns of the twenty-first century will depend on fast solutions to critical energy infrastructure (CEI) vulnerabilities within individual communities. The practice of energy management in the military expeditionary environment (EMMEE) is not new. The US Marine Corps has an Expeditionary Energy Office, and NATO uses the new field to test the applicability and value of a draft military adaptation of ISO 50001:2011.

Entrepreneurial economics is the study of the entrepreneur and entrepreneurship within the economy. The accumulation of factors of production per se does not explain economic development. They are necessary factors of production, but they are not sufficient for economic growth.

Experimental economics is the application of experimental methods to study economic questions. Data collected in experiments are used to estimate effect size, test the validity of economic theories, and illuminate market mechanisms. Economic experiments usually use cash to motivate subjects, in order to mimic real-world incentives. Experiments are used to help understand how and why markets and other exchange systems function as they do. Experimental economics have also expanded to understand institutions and the law.

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Economic growth increase in production and consumption in an economy

Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.

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Fiscal policy use of government revenue collection and spending to influence the economy

In economics and political science, fiscal policy is the use of government revenue collection and expenditure (spending) to influence a country's economy. The use of government revenues and expenditures to influence macroeconomic variables developed as a result of the Great Depression, when the previous laissez-faire approach to economic management became discredited. Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics indicated that government changes in the levels of taxation and government spending influences aggregate demand and the level of economic activity. Fiscal and monetary policy are the key strategies used by a country's government and central bank to advance its economic objectives. The combination of these policies enables these authorities to target the inflation and to increase employment. Additionally, it is designed to try to keep GDP growth at 2%–3% and the unemployment rate near the natural unemployment rate of 4%–5%. This implies that fiscal policy is used to stabilize the economy over the course of the business cycle.

Development economics is a branch of economics which deals with economic aspects of the development process in low income countries. Its focus is not only on methods of promoting economic development, economic growth and structural change but also on improving the potential for the mass of the population, for example, through health, education and workplace conditions, whether through public or private channels.

Provincial Reconstruction Team

A Provincial Reconstruction Team (PRT) was a unit introduced by the United States government, consisting of military officers, diplomats, and reconstruction subject matter experts, working to support reconstruction efforts in unstable states. PRTs were first established in Afghanistan in early 2002, and as of 2008 operate there as well as in Iraq. While the concepts are similar, PRTs in Afghanistan and Iraq had separate compositions and missions. Their common purpose, however, was to empower local governments to govern their constituents more effectively.

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The Kauffman Index of Entrepreneurial Activity, also known as the Kauffman Index of Entrepreneurship, is a leading indicator of new business creation in the United States, which has been cited in academic journals such as Small Business Economics.

References

  1. "Ewing Marion Kauffman Foundation Website". Archived from the original on June 16, 2013. Retrieved March 16, 2013.
  2. "Expeditionary Economics: A New Model for Post-Conflict Countries". Milken Institute. Retrieved March 29, 2013.
  3. "Role of Military in Reconstruction". Center for Conflict Studies. Retrieved March 29, 2013.
  4. "Haiti 2010 Earthquake and Expeditionary Economics" . Retrieved March 29, 2013.
  5. Army, United States; William B. Caldwell, IV; Flournoy, Michele (2009-02-24). U.S Army Stability Operations Field Manual, 2009. ISBN   9780472033904.
  6. Iftimie, Ion A. (2018-04-11). "Expeditionary energy economics (e3): the securitization of energy entrepreneurship during megacity counterinsurgencies (a NATO perspective)". Journal of Innovation and Entrepreneurship. 7 (1): 4. doi:10.1186/s13731-018-0083-6. ISSN   2192-5372.

Bibliography