How do you associate the United States with the following countries: China, Japan, South Korea, and Vietnam? If your initial thought relates to conflicts, that is true. However, if you thought of some of America’s largest trading partners, you are also correct.
All four countries are among the top seven largest importers of American goods. In fact, China, Japan, and South Korea are among the top ten importers of Iowa products.
The connections between trade, security, and international relations were all highlighted last month when the U.S. Global Leadership Coalition held its Heartland Summit in Sioux City and Detroit. Although the Midwest is not near the coasts, the agricultural and manufactured goods produced here are highly valued across the globe.
The ties between the US and these countries are more than economic. Just last month, the aircraft carrier USS Reagan docked at Danang, Vietnam. The US and Vietnam have gone from enemies to security collaboration in 50 years. Such activities only happen because of diplomatic efforts by the State Department.
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Often too underestimated is that trade, security, and treaties occur due to the efforts of American diplomats and the goodwill generated by US development funds. American assistance is often misunderstood, with the cost overestimated and the impact underestimated.
American foreign assistance is less than one percent of the federal budget. While it has been used for humanitarian purposes, the primary goal is to increase stability internationally. Japan and South Korea are both excellent examples of countries that developed and are now providers of assistance internationally.
Because of past success with other countries, the aid provided now can be augmented by those who have received it in the past. This increases the overall value of the investment while minimizing the cost. It also serves as an excellent contrast to other countries.
The Chinese government has significantly increased its engagement internationally. Their “Belt and Road Initiative” is on track to make investments in 149 countries.
Most of the projects tend to focus on large infrastructure projects. The construction is usually done by Chinese workers, which does not benefit host countries. Projects often are provided as a loan that may be guaranteed by a host nation asset.
The bottom line is that Chinese investments and assistance are estimated to have been worth over $460 billion over ten years. China is already the top trading partner for 46 countries around the world. Chinese engagement has the strong potential to increase their influence which will reduce opportunities for American exports in the future.
We must recognize the challenge these engagements present us. At the same time, we must acknowledge that there are competing challenges within the US, including significant deficits. The fiscal agreement reached earlier this year will constrain federal spending on many worthy items.
Fiscal constraints should not, however, result in significant reductions to the international engagement budget. The long-term economic and security consequences will far outweigh any short-term, small-scale impact on the budget. As former CENTCOM commander and Secretary of Defense James Mattis once put it: “If you don’t fund the State Department fully, then I need to buy more ammunition.”
On a personal note, I’ve seen how American investments helped transform the country of Kosovo when I deployed there a decade ago. The engagement changed from reconstruction to targeted investment as the Kosovars gained capability.
In return, Kosovo has worked to repay those investments. In 2020, Kosovo deployed over two dozen members of their Security Force in partnership with the Iowa National Guard in the Mideast. That action meant that two dozen Iowa families and employers did not have an empty place at home or at work. It’s hard to put a price tag on that.
A Sioux City resident, Steve Warnstadt is government affairs coordinator for Western Iowa Tech Community College. He is a former Democratic state senator and retired Army National Guard brigadier general. He and his wife, Mary, are the parents of one son and one daughter.