Focusing on Economic Growth Should Be at Top of Policy Agenda for U.S. Leaders

From David Petraeus and Michael O'Hanlon, at USA Today, "Recipe for American success":

As world leaders gathered and debated each other at the U.N. General Assembly meeting in New York, most of the attention seemed to be on hot spots.  Ukraine, Syria and Iraq, conflict zones in Africa and East Asia, and the latest news from Afghanistan got lots of discussion. In many respects, this was inevitable, and necessary. Indeed, our own careers have been largely shaped and dominated by such pressing issues.

In another respect, however, we need to remember that in a world of troubling headlines, less dramatic and more structural developments could determine the future of the global order even more than the latest crises. Many of these concern technology and economics.

While military might was a necessary ingredient in the West's victory in the Cold War, it was more like a moat than a battering ram — it provided time and protection for the inherent strengths of the Western democratic and economic systems to prevail. This is likely to be just as true in the future.

A few basic realities about the modern world need to be remembered. The post-World War II international order set up by U.S. and other key world leaders 70 years ago produced more economic growth in more places on earth, benefiting a far higher percentage of the human race, than had any previous global order in any period in history for which we have data.

As policymakers and leaders establish priorities for 2016 and beyond, attention to economic fundamentals should play as big a role in their thinking as crisis management and domestic political maneuvering.

Indeed, economics can even shape crisis management, if often with a lag effect. Economic sanctions established by Presidents George W. Bush, Barack Obama and many others brought Iran to the table over its nuclear weapons program (an accurate observation whether one likes the actual deal). Sanctions, together with the fall in global oil prices, might not have yet limited assertive (and illegal) Russian interventions, but they could well constrain President Vladimir Putin in the years ahead. China's policies in the East China Sea and South China Sea, even if sometimes more assertive than we would like, have exhibited at least some restraint that might reflect an awareness in Beijing that we could introduce sanctions against China if things got out of hand.

Meanwhile, the North American shale revolution and the North American economic revolution more generally have improved U.S. growth prospects and the fundamental strength of the U.S. economic foundation. They have also helped Mexico provide more jobs to its own workers, reducing demographic pressures and actually making the immigration problem easier to address (even if we have not yet managed to address it appropriately and comprehensively). 

More.