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Economic Instruments, Military Instruments, and National Power
( Charles Wolf Jr ) 한국국방연구원 1994 The Korean Journal of Defense Analysis Vol.6 No.2
Several propositions are widely accepted as characterizing the post- Cold War era. These propositions include: 1. Economic interests, issues and instruments are increasingly im- portant in international affairs. 2. Military issues, interests and instruments are becoming less im- portant. 3. US national power, especially economic power, has declined relative to that of other countries. 4. This decline has been due to overemphasis on military issues, and reversal of the decline depends on focusing more on economic issues and economic policies. Some of these propositions are more valid than others, and all of them suffer from the ambiguous terminology they employ. This article is principally concerned with clarifying some of this terminology, suggesting various ways of measuring the terms that are used, and proposing several hypotheses about the relationships and interactions among the terms and concepts. The article also contains some observations about the shortcomings of several of these preceding propositions. The central thesis is that economic and military instruments of power are often closely linked, rather than being independent of each other, that the relationships between them are often complex and subtle, and that these relationships vary in different contexts. To be effective, economic power and economic instruments of power sometimes com- plement military power and military instruments, and at other times and in other circumstances substitute for them. To clarify these complex relationships, the article begins by suggesting various indicators or metrics for defining and measuring economic instruments of power, and the military instruments of power. It is,acknowledged in the article that the political and diplomatic instruments of power are also of central importance, although these are not the focus of the present discussion. Having proposed several metrics, three hypotheses about the relation- ships among them are formulated: first, that national power depends on economic instruments, military instruments, and a set of other shift variables; second, economic instruments in a given period depend on their level in the preceding period, as well as on the level of military instruments and a set of other influential economic factors; and third, the level of military instruments in a given period depends upon their level in the preceding period, the current level of economic instruments, and a set of other conditioning political, as well as economic and military, variables. Finally, several examples are cited of how economic instruments can be used, in conjunction with or as a substitute for military instruments, to influence the behavior of various actors in the international arena.