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Governments have at their disposal many economic instruments to promote national security, such as sanctions, foreign aid, international trade, international finance and laws blocking funds for international terrorism. This book examines the use of theses economic policies and addresses how best to measure their effectiveness.

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Acknowledgments Forward to the Second Edition Introduction PART I: THE INDIVIDUAL States Don´t Make Decisions; People Do Adam Smith and Twenty-first Century National Security Maximizing, Rationality, and the Bounds of Institutions Experimentation in Economic Science The Economics of Autocracies Some Are Ranchers and Some Are Wolves Predicting the Dictator: A Theoretical Model Principles for Policymakers PART II: THE WORLD Castro´s Cuba and U.S. Sanctions The Cuban Economy in the 1990s Dictating Economic Performance Sanctions: Truth in Advertising Democracies and the Politics of Trade Free Trade Agreements Case Study: The PRC and Most Favored Nation Status Case Study: Pistachios, Rugs, and Relationship-Building Study: India and Commerce Case Study: The PRC, Public Disclosure and Verified End Users Import Restrictions Case Study: The PRC and non-market economies Trade as a Tool: Roundup Money and Finance as Security Tools Money Inflation Case Study: Swiss dinars and Saddam dinars Case Study: Internet Marketplace Case Study: Money Laundering in Ukraine Exchange Rate Choices and National Security Choosing an Exchange Rate Case Study: Dollarization Choosing Power Over Growth, Again Maximizing Over Time Through Lending and Borrowing International Finance Case Study: International Financial Institutions and the East Asian Financial Crisis Case Study: Tibet vs. the World Bank at Qinghai Sovereign Lending and Foreign Direct Investment Debt Dynamics and Debates Case Study: Debt Forgiveness - Republic of Congo Case Study: Did the Great Recession Change the Competitive Equation? Summary: Money, Exchange Regimes, Debt Curing Poverty Helps National Security Terrorism, Insurgency, and Poverty Theory of Growth Incentives and Growth De-industrialization: When Countries Do Not Invest in Domestic Capacity Case Study: The Millennium Challenge Account Case Study: The African Growth and Opportunity Act Case Study: Saudi Arabian Charities Case Study: Iraq Case Study: Syria Case Study: Law Enforcement Against al Qaeda Case Study: Brothers to the Rescue and the "Anti-Terrorism Amendment" to the FSIA Conclusion Appendix Endnotes

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GARY M. SHIFFMAN Senior Fellow at Centre for Peace and Security Studies and Professor in the Security Studies Department at Georgetown University in Washington DC, USA. He is also Senior Vice President for Global Security for L-3 Communications Government Services Group. He has served as Chief of Staff at U.S. Customs and Border Protection in the United States Department of Homeland Security, and held senior positions in the U.S. Senate and Department of Defense.

JAMES JOCHUM Adjunct Professor in the Security Studies Program at Georgetown University. He is the founding member of both Jochum Shore & Trossevin PC and Black Swan LLC.

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