Strategic Goal 8: Economic Prosperity and Security - Public Benefit, Selected Performance Trends, and Strategic Context

FY 2003 Performance and Accountability Report
Bureau of Resource Management
December 2003
Report

I. Public Benefit

Photo showing the safe transfer of goods at a shipping dock in Singapore.

The Department and USAID work to promote global prosperity by expanding trade and investment between nations. The safe transfer of goods to and from port cities, such as Singapore seen in this photo, is vital to ensuring economic security. Department of State Photo

The President's National Security Strategy aims to "help make the world not just safer but better". National security and global economic prosperity are inextricably linked. Americans have a vital interest in a strong international economy that advances prosperity, freedom, and economic opportunity worldwide. Economic growth creates new jobs and higher incomes for Americans and for citizens of other nations. The Department works closely with other agencies, businesses, and NGOs to build a strong and dynamic international economic system based on free trade with new opportunities for American business, workers, and farmers, and to ensure the economic security of the United States. The Department has a direct impact on U.S. economic security through its work to ensure the stability of the international financial system, disrupt terrorist financial networks, support front-line states grappling with difficult economic conditions, develop diversified and reliable sources of energy, and make international transportation of people and goods safe and secure.

The remarkable growth and prosperity of the developed economies have demonstrated the strength of a dynamic, open international trading system based on free trade and free markets, good governance, and the rule of law, a system which is a key element of sustainable development. Conversely, the lack of economic opportunity for many around the world is an underlying factor for a number of the grave challenges we face. Regional instability, international crime and illicit drugs, social and environmental destabilization, and humanitarian crises all feed on, and further marginalize, vulnerable populations. The Department's efforts to promote trade and development have a direct positive effect on these vulnerable populations while also strengthening the U.S. economy. As the world's largest importer and exporter, the U.S. has a significant impact: trade accounts for about one-quarter of the U.S. economy and reached $2.6 trillion in FY 2003. Export growth produced about 25 percent of U.S. economic growth during the past decade. One of every five U.S. manufacturing workers depends on exports for a job. Imports make competitive, lower cost goods available to American consumers and quality supply components available to American industries. The United States is the largest importer from developing countries, importing goods worth over $600 billion in 2002, approximately ten times the value of the total of all official development assistance to developing countries from all donors. Continued growth and the economic opportunity gained from open trading systems, foreign investment, U.S. development assistance, and international cooperation on financial issues promotes political liberty abroad and our national security at home.

II. Selected Performance Trends

Number of World Trade Organization Member Countries (Cumulative)
  Result Target
2000 2001 2002 2003 2003
WTO Member Countries 135 142 144 148 146

 

Number of Countries Agreeing to "Open Skies" Agreements (Cumulative)
  Result Target
2000 2001 2002 2003 2003
Countries 47 56 61 66 66

 

III. Strategic Context

The Economic Prosperity and Security strategic goal is supported by three performance goals. Shown below are the major initiatives/programs, bureaus and partners that contribute to accomplishment of the strategic goal.

STRATEGIC GOAL: ECONOMIC PROSPERITY AND SECURITY
(Components that Contribute to Goal Accomplishment)
Performance Goal
(Short Title)
Initiative/Program Lead Bureau(s) External Partners
Economic Growth and Development Development Strategies Economic and Business Affairs, and International Organizations USAID, Treasury, DOC, USDA, EXIM, OPIC, TDA, USTR, IMF, World Bank, Regional Devl Banks, UNDP, ILO, WTO, OECD, UNCTAD[1], UNICEF, FAO, G-8
Trade and Investment Create Open and Dynamic World Markets Economic and Business Affairs USTR, Treasury, DOC, DOT, USDA, TDA, USAID, WTO, OECD, international institutions, private sector and NGOs
Secure and Stable Markets Secure Energy Supplies Economic and Business Affairs DOE, IEA, foreign governments
Stable Financial Markets

Economic and Business Affairs

Treasury, IMF, World Bank, OECD, Regional Development Banks

Food Security and Agriculture Development

Accomplishment of this goal is the responsibility of USAID.

Note 1: UNCTAD= UN Conference on Trade and Development.