PART 3 — DIPLOMATIC AND ECONOMIC BUREAUCRACIES

Discuss the Overall role of bureaucracies in foreign policy making

Foreign policy bureaucracies compete to get the "president's ear" and to shape outcomes favorable to their own institutional view of good policy. Because so many issues have become internationalized, agencies that once seemed purely domestic (Agriculture, Commerce, Treasury, Homeland Security) now have foreign policy agendas.

THE BUREAUCRATIC POLITICS APPROACH

An approach to foreign policy analysis holding that policy emerges from the interactions among the various bureaucracies as they compete to shape the nation's actions abroad. Policy is less the product of the values and beliefs of individual actors and more the result of interaction among institutions — the "PULLING AND HAULING" among competing bureaucracies. Compromise within, and coalition building across, bureaucracies become central, so the process of policy making becomes an important means of arriving at the substance of policy.

What is one example from the book that illustrates the bureaucratic politics approach in foreign policy?

OBAMA & AFGHANISTAN (2009):

(1.) OPPOSED increasing troop numbers: VICE PRESIDENT JOE BIDEN and Special Representative to Afghanistan Richard Holbrooke.

(2.) SUPPORTED the troop surge: SECRETARY OF DEFENSE ROBERT GATES, GENERAL DAVID PETRAEUS (Central Command, former Iraq commander) backing the MCCHRYSTAL REPORT.

(3.) WHY IT ILLUSTRATES THE MODEL: identical information, different institutional positions → different recommendations. Policy emerged from the contest, not from any one person's worldview.

What are the Main functions of THE DEPARTMENT OF STATE (DoS)?

Its the OLDEST CABINET POST and the ORIGINAL FOREIGN POLICY BUREAUCRACY — established 1781 under the Articles of Confederation as the DEPARTMENT OF FOREIGN AFFAIRS, becoming the DEPARTMENT OF STATE IN 1789. Its PRINCIPAL JOB is to assist the president in policy formulation on all international issues and to IMPLEMENT POLICY in America's foreign relations. It COORDINATES US OVERSEAS PROGRAMS emanating from Washington.

How does THE DEPARTMENT OF STATE (DoS) work with the president?

(1.) Headed by the SECRETARY OF STATE, chosen by the president and confirmed by the Senate; the CHIEF FOREIGN AFFAIRS ADVISOR to the president.

(2.) Two deputy secretaries: DEPUTY SECRETARY FOR POLICY (substance — advises, acts as SecState in his/her absence, assists in formulation and conduct of policy) and Deputy Secretary for Management and Resources (logistics — budget, personnel, day-to-day functioning).

(3.) Assistant secretaries represent their bureaus in INTERAGENCY GROUPS, testify before Congress, sometimes speak directly with the secretary, and may serve as negotiators or representatives with foreign governments.

(4.) A departmental report (State 2000) itself conceded State should NOT be the focus for foreign policy coordination, asserting "that the National Security Council (NSC) [should] be the catalyst and the point of coordination for this new, single foreign policy process."

How does THE DEPARTMENT OF STATE (DoS) manage US international relations?

(1.) ~275 embassies, missions, consular agencies, consulates general and other offices abroad, plus 10 MISSIONS at intergovernmental organizations (UN, EU, OAS, ICAO). Diplomatic relations with 195 NATIONS — the exceptions: BHUTAN, IRAN, NORTH KOREA, SYRIA (and the non-member Observer State of Palestine); business with some is conducted through the "GOOD OFFICES" of third states.

(2.) CHIEF OF MISSION (usually the AMBASSADOR) = the PERSONAL REPRESENTATIVE OF THE PRESIDENT, authorized to handle US relations with that country. Assisted by the DEPUTY CHIEF OF MISSION (DCM), who runs day-to-day embassy operations.

(3.) THE "COUNTRY TEAM" — an embassy houses far more than State: an agricultural counselor (USDA), commercial counselor (Commerce), labor official (Labor), environmental officer (EPA), defense attaché and military advisory group (DOD), plus DEA, IRS, Peace Corps, CDC, etc. CIA officers serve under diplomatic cover of other positions. Hillary Clinton: an ambassador must operate "as the CEO OF A MULTIAGENCY MISSION."

THE DEPARTMENT OF STATE (DoS) ABSORBED INTO STATE IN 1999

the UNITED STATES INFORMATION AGENCY (USIA) (created 1953 — explain American policy abroad, build good relations, advise on foreign attitudes) and the Arms Control and Disarmament Agency (ACDA) (created 1961 — foster arms restraint, seek arms control agreements, monitor compliance). Reason: streamline, improve efficiency, and give State greater control.

THE DEPARTMENT OF STATE (DoS) The US Mission to the United Nations — main role

the US DELEGATION TO THE UN. It ensures greater coordination between the US Ambassador to the UN and the Bureau of International Organization Affairs (which handles US relations with international organizations generally). The permanent-representative position was created under Clinton; the UN ambassador served on the NSC Principals Committee under Clinton, Obama, Trump, and Biden (not under G.W. Bush). Per the lecture: it used to be a cabinet-level position until the current administration, when it was demoted.

THE DEPARTMENT OF STATE (DoS) USAID — role when it existed

created by Congress in 1961, the PRINCIPAL FOREIGN AID BUREAUCRACY of the US government. It "leads the U.S. Government's INTERNATIONAL DEVELOPMENT AND DISASTER ASSISTANCE through partnerships and investments that save lives, reduce poverty, strengthen democratic governance, and help people emerge from humanitarian crises." Focused on SOFT POWER — development, scholarships, human-centered, non-military initiatives. Worked through regional/functional bureaus and country missions, and through PVOS AND NGOS. Budget was only about 0.3% OF US FEDERAL SPENDING (FY2021 operations: $37.5B). Covid example: distributed $1.3B for health-worker protection, donated ventilators to 43 countries, gave emergency food aid to ~5 million people. Per the lecture: USAID operated semi-autonomously from 1961 until 2025; its programs and functions have been absorbed into the Department of State.

What are the FACTORS THAT WEAKENED THE DEPARTMENT OF STATE?

(1.) Poor = its been Perennially underfunded with budget issues/no constituency. (2.) Paradoxical = its too small to punch effectively with 77,000 employees, too big to be efficient with layers of bureaucracy + bad internal culture (elitism, careerism, conformity). (3.) Passed Over = its often sidelined by aides, presidents, rival agencies, and political appointees.

Why does THE NATIONAL SECURITY COUNCIL (NSC) exist?

Created by the NATIONAL SECURITY ACT OF 1947 as a mechanism for coordinating policy options among the various foreign affairs bureaucracies. Headed (as a staff/system) by the NATIONAL SECURITY ADVISOR.

How many Members does THE NATIONAL SECURITY COUNCIL (NSC) have?

Statutory members (the original core + additions): (1.) PRESIDENT, (2.) VICE PRESIDENT, (3.) SECRETARY OF STATE, (4.) SECRETARY OF DEFENSE, (5.) SECRETARY OF ENERGY, (6.) SECRETARY OF THE TREASURY.

(The first six on the lecture slide are the statutory members. Originally the statute limited membership to president, VP, secretary of state, and secretary of defense.)

What does THE NATIONAL SECURITY COUNCIL (NSC) do?

Originally: to advise the president "with respect to the integration of domestic, foreign, and military policies relating to the national security" and to COORDINATE options among bureaucracies. Over time it evolved a SET OF INTERDEPARTMENTAL COMMITTEES to support the Council (Principals Committee, Deputies Committee, interagency policy committees). It enables the president to make foreign policy with little involvement of other branches of government — and even without much involvement of the rest of the executive branch.

Who made the NSC as powerful as it is today?

PRESIDENT KENNEDY STARTED THE SHIFT, but HENRY KISSINGER under Nixon made it what it is today.

PRESIDENT KENNEDY STARTED THE SHIFT of the NSC

the NATIONAL SECURITY ADVISOR became a source of policy rather than merely a policy coordinator. MCGEORGE BUNDY was the first NSA to serve in a POLICY-FORMULATING AS WELL AS POLICY-COORDINATING capacity. (Ironically, the Council itself declined — few NSC meetings were held; Kennedy relied on ad hoc advisors. Under JOHNSON, WALT ROSTOW and the "TUESDAY LUNCH" group shaped Vietnam policy; again the NSA gained while the Council as a forum declined.)

HENRY KISSINGER under Nixon made the NSC what it is today

Kissinger — an academic and former consultant — was critical of the government's bureaucratic machinery, seeing it as impeding effective policy making and hindering the job of the "statesman." He REORGANIZED THE ENTIRE DECISION-MAKING APPARATUS so that he dominated it, making the NSC and its staff the focal point of all policy analyses. He did it by creating a series of interdepartmental committees flowing from the NSC system that included representatives of the principal bureaucracies but excluded them from ultimate authority over policy recommendations — and by setting up a senior review group, which he chaired himself, to screen every recommendation before it reached the NSC and the president. Even after he became Secretary of State as well as National Security Advisor in September 1973, and under Ford, NSC staff dominance continued.

Who has been the most influential National Security Advisor so far?

HENRY KISSINGER (NIXON/FORD). He is the benchmark against whom every later NSA is measured; the book describes subsequent advisors explicitly by reference to him ("cut from the same cloth as Scowcroft and… less like, say, Kissinger or Brzezinski").

Characteristics of the foreign economic area (four — memorize)

(1.) EXECUTIVE LEAD IS RECENT. Only in the twentieth century — usually dated to the Reciprocal Trade Agreements Act of 1934 — has the executive assumed the lead, even though Congress still holds the constitutional prerogative to regulate foreign commerce.

(2.) CONCENTRATION IN THE EXECUTIVE BRANCH, especially because Congress granted presidents "FAST-TRACK" authority (now "TRADE PROMOTION AUTHORITY") — the executive negotiates trade pacts and Congress is limited to an UP-OR-DOWN VOTE WITH NO AMENDMENTS.

(3.) Formulation is DIFFUSE within the executive. Some decisions are made wholly inside one bureaucracy (e.g., at deputy assistant secretary level), others at the INTERAGENCY GROUP level, others only by the president.

(4.) DIFFERENT BUREAUCRACIES OWN DIFFERENT PIECES (import/export, international debt financing) → DECENTRALIZATION.

Overall roles played by economic bureaucracies in foreign policy making?

Negotiate and enforce trade agreements; open foreign markets; monitor and retaliate against unfair trade practices. Manage international monetary and financial policy and respond to global financial crises. Administer SANCTIONS, export controls, and counter–terrorist-financing. Distribute and condition FOREIGN AID (including food aid). Feed expertise into the INTERAGENCY PROCESS so the president's economic decisions rest on real data. As the lecture puts it: they have niche expertise, they compete with each other to define what foreign policy should look like in their area, and they try to get their voice to the president before he decides.

THE OFFICE OF THE US TRADE REPRESENTATIVE (USTR)

STATUS: "The most important foreign economic bureaucracy is the newest and the smallest." Described as PRIMUS INTER PARES — FIRST AMONG EQUALS — within the executive branch on trade.

Origins and the Trade Act of 1974

(1.) TRADE ACT OF 1974 — USTR gained CABINET-LEVEL STATUS and assumed responsibility for coordinating policy on trade matters. (This is the single most likely USTR exam fact.) The same act also created the agricultural advisory committees and six agricultural technical advisory committees through which USDA and the private sector make recommendations to the secretary and the USTR.

(2.) 1980 EXECUTIVE REORGANIZATION PLAN: the head was designated "CHIEF TRADE NEGOTIATOR" and America's official representative to the major trade organizations; staff doubled to ~80.

(3.) Omnibus Trade and Competitiveness Act of 1988: powers reaffirmed; the USTR given primary responsibility for retaliation against unfair trading partners (Section 301). Staff grew again to ~150 by the late 1990s, now ~200.

Main role of the HEAD of the USTR

"The president's principal trade advisor, negotiator, and spokesperson on trade issues." Also: CHIEF TRADE NEGOTIATOR and the official US representative to major trade organizations (WTO). Develops and coordinates US trade, commodity, and direct investment policy, and LEADS NEGOTIATIONS WITH OTHER COUNTRIES on these matters. COORDINATES THE INTERAGENCY PROCESS within the government, LEADS TRADE DELEGATIONS ABROAD, and prepares policy questions for presidential decision making. Serves as the FOCAL POINT FOR CONGRESSIONAL INVOLVEMENT in trade policy formulation and the bridge to private-sector advisory groups (i.e., major corporations).

TRADE POLICY STAFF COMMITTEE (TPSC) (a committee of the USTR chairs)

(1.) Composition: Widely represented across the government; encompasses MORE THAN NINETY SUBCOMMITTEES.

(2.) Function: Handles the vast range of routine trade questions; the mechanism through which agencies like USDA/FAS feed into trade policy.

TRADE POLICY REVIEW GROUP (TPRG) (a committee of the USTR chairs)

(1.) Composition: The DEPUTY USTR and UNDERSECRETARY-LEVEL APPOINTEES from other federal agencies. (2.) Function: RESOLVES QUESTIONS THE TPSC CANNOT, and addresses questions of PARTICULAR POLICY IMPORTANCE. It fits into the NSC SYSTEM as one of its interagency policy committees.

Limits of the USTR (three)

(1.) No exclusive authority over trade issues — it takes the lead on most, but OTHER DEPARTMENTS RETAIN SOME AUTHORITY. (2.) NO IMPLEMENTATION AUTHORITY for trade agreements — implementation is often the responsibility of COMMERCE AND AGRICULTURE. (3.) It must balance opening markets worldwide against the demands of American domestic producers, so it must yield to the "push and pull" of departments with strong constituencies (Commerce, Agriculture, Treasury).

DoS vs. DoD — Why are they at odds?

(1.) SHORT ANSWER: They are at odds because they are institutionally built to want different things and are measured by different outcomes — State's currency is diplomacy, relationships, and negotiated settlements; Defense's currency is capability, deterrence, and security risk. Each therefore reads the same situation differently and competes for the president's ear.

(2.) The best line for an essay: State can "prevent interagency consensus on almost any international economic issue if a clear national security threat can be credibly demonstrated" — but the moment the issue is framed as security rather than commerce, State must contend with Defense. Their rivalry is really a fight over which frame governs.

What led to the DEPARTMENT OF THE TREASURY's growth in influence (five — memorize this list)

(1.) The relative decline of American economic power globally. (2.) The increased recognition that external economic policies affect the domestic economy. (3.) The acknowledgment that international financial shocks need American attention. (4.) CONGRESSIONAL LEGISLATION granting Treasury greater global economic policy responsibility. (5.) The enhanced role of the secretary of the Treasury in economic policy making.

Office of Terrorism and Financial Intelligence (TFI) — role

It "develops and implements… STRATEGIES TO COMBAT TERRORIST FINANCING domestically and internationally and develops and implements the NATIONAL MONEY LAUNDERING STRATEGY as well as other policies and programs to FIGHT FINANCIAL CRIMES." Created through Executive Order 13224, issued by George W. Bush in the aftermath of 9/11. It absorbed the Office of Foreign Asset Control (OFAC) and the FINANCIAL CRIMES ENFORCEMENT NETWORK (FINCEN). Its intelligence component, the OFFICE OF INTELLIGENCE AND ANALYSIS, is part of the US intelligence community (one of the 18). So it is pivotal in counter-terrorist-financing, financial regulation, and enforcement against domestic and international financial crime.

What do The Plaza Act (Plaza Pact), the Baker Plan, and the Brady Plan have in common?

All three are 1980s Treasury initiatives to stabilize the global economy.

The Plaza Act (Plaza Pact)

(1.) NAMED FOR / BY: The Plaza Hotel accord.

(2.) PROBLEM ADDRESSED: An overvalued dollar hurting the US and world economies.

(3.) WHAT IT DID: Sought to REDUCE the value of the dollar against other leading currencies as a means of helping the US and world economies.

The Baker Plan

(1.) NAMED FOR / BY: Secretary of the Treasury JAMES BAKER.

(2.) PROBLEM ADDRESSED: The BURGEONING INTERNATIONAL DEBT CRISIS.

(3.) WHAT IT DID: Called on commercial banks to assist 15 heavily indebted nations (Mexico, Argentina, Brazil, Nigeria, Morocco, the Philippines) by pledging $20 billion in new loans through 1988, plus $9 BILLION MORE from international lending institutions (World Bank, Inter-American Development Bank).

The Brady Plan

(1.) NAMED FOR / BY: Secretary of the Treasury NICHOLAS BRADY (under G.H.W. Bush).

(2.) PROBLEM ADDRESSED: The same debt crisis — but debt LEVELS, not just liquidity.

(3.) WHAT IT DID: A DEBT REDUCTION PROPOSAL — commercial banks in rich countries would be encouraged to write off a portion of the debt owed by countries in the Third World / Global South.

What are the MAIN FUNCTIONS of the DEPARTMENT OF COMMERCE?

(1.) Benefited from the 1980 EXECUTIVE REORGANIZATION ACT, gaining a wider mandate in formulating and implementing US trade policy.

(2.) It now has the principal responsibility for administering ALL US import/export programs.

(3.) Two major divisions do this work, each headed by an UNDERSECRETARY OF COMMERCE: the INTERNATIONAL TRADE ADMINISTRATION and the BUREAU OF INDUSTRY AND SECURITY.

Bureau of International Trade Administration (ITA) — main functions

(1.) Oversees all US trade policy EXCEPT agricultural products and assists the USTR in all trade negotiations (USTR leads; ITA provides valuable assistance). (2.) OPERATES THE US COMMERCIAL SERVICE — the primary agency representing American businesses seeking to export NONAGRICULTURAL products. Through 100+ export assistance centers in the US and commercial offices in 75+ COUNTRIES, it showcases American products, provides information on new markets, and counsels and arranges contacts between American companies and local businesses, especially small and medium-sized firms. (3.) THE IMPORT SIDE — enforcement of antidumping and countervailing duty statutes to protect American businesses from unfair foreign trade practices (these responsibilities moved from Treasury in 1980).

Bureau of Industry and Security (BIS) — functions, with attention to MONITORING CAPACITY

Its responsibilities focus on the EXPORT side of foreign trade. It oversees the export of American goods and looks after the health of the American industrial base — with American prosperity as the guiding motivation. It MONITORS "DUAL-USE" ITEMS — commercial items that can also be used to produce arms and weapons. BIS tracks them so that countries with dubious records cannot use these materials to build weapons. It monitors exports of sensitive MILITARY-RELEVANT ITEMS — chemical weapons precursors, nuclear fuel, and other dual-use goods. Commerce retains the FINAL STATUTORY AUTHORITY on issuing export licenses (with some authority retained by State) — which is precisely why DOD HAS LESS DIRECT INFLUENCE on technology transfer.

What are the MAIN FUNCTIONS of the DEPARTMENT OF AGRICULTURE (USDA)?

USDA enters foreign policy through AGRICULTURAL TRADE AND AGRICULTURAL AID. Under various statutes it monitors agricultural imports (and suggests quotas if necessary) and promotes American agricultural exports. Under Public Law 480 (P.L. 480), now the Food for Peace Act (FPA), and newer laws like the GLOBAL FOOD SECURITY ACT, USDA is responsible for providing food aid to needy countries (sharing some authority with USAID). It also runs the Animal and Plant Health Inspection Service (keeping pests and diseases out) and the FOOD SAFETY AND INSPECTION SERVICE (meat, poultry, egg imports). Lecture framing: USDA is a very powerful lobbyist and executive agency with major influence over trade policy for agricultural products.

Foreign Agricultural Service (FAS) — MAIN functions

Formulates and implements agricultural trade and aid policy, as part of the Farm and Foreign Agricultural Services division of USDA. It is the primary promoter of US agricultural sales abroad. A global network of nearly 100 offices covering approximately 180 countries, staffed with US agricultural attachés and local agriculture experts.

What are the FOUR DUTIES OF the local agriculture experts?

(1.) Observe the agricultural policies of host countries.

(2.) Monitor agricultural imports at home and make policy recommendations for quotas when necessary.

(3.) Analyze worldwide agricultural trading patterns and trading prospects.

(4.) PROMOTE AMERICAN AGRICULTURAL EXPORTS.

Agricultural Trade Offices (ATOs)

(1.) Opened by the FAS about THREE DECADES AGO as a second mechanism to promote American agricultural exports. (2.) Their function: to sponsor trade exhibitions and showcase the variety and quality of American agricultural products to buyers in other countries.