Globalization and National Security

December 1, 2004

Globalization--the international integration of markets for goods, services, and capital--raises serious issues for U.S. national interests because of its effect on technological leadership and economic strength. The underlying concern is that economic globalization will erode America's strength, as jobs, manufacturing, and technology move around the world and as the international economy continues to reorganize and integrate itself. The risks created by global economic integration are diminished economic strength and technological leadership; a decline in innovation; greater reliance on a foreign supply chain; and risks to critical infrastructure and information assurance. This report looks at how globalization will affect the United States' strength and security. It identifies areas where policies could maintain national strength and manage risk in this new economic and security environment.

James A. Lewis is director of the CSIS Technology and Public Policy Program. His previous publications include Transforming Air Traffic Management: Beyond Evolution (CSIS, 2004), Cyber Security: Turning National Solutions into International Cooperation (CSIS, 2003), and Computer Exports and National Security: New Tools for a New Century (CSIS, 2001).