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UCD Clinton Institute for American Studies

Transatlantic Affairs Newsletter
Volume One, Issue 1
July / August 2005

Ireland and the United States

Ireland - US Bilateral Relationship

Ireland and the United States of America have a robust and productive relationship founded on common ties of immigration, economics and shared historical experience.

At the heart of this close partnership is a shared understanding of our commitment to democracy, human rights and the rule of law. For over 150 years these close cultural and historical ties have provided the foundation for our prolific economic activity and our excellent political and diplomatic relations.

The people of Ireland and the United States are close. Today approximately one of every six Americans can claim Irish ancestry. Throughout Ireland too, people share a close affinity with America and the American people, and each year tens-of- thousands of Irish travel, study and work in the US.

At the beginning of the 21st century the United States is Ireland's largest source of inward investment. There are around 600 US companies currently employing approximately 90,000 people in permanent positions. Overall, American companies have invested nearly sixty billion dollars in Ireland. Significantly, this relationship is reciprocal. Irish companies have invested more than 25 billion dollars in America and employ almost 70,000 people

Many in Europe and the US view Ireland as a stragetic 'bridge' between both regions. Ireland's role as a pragmatic and diplomatic bridge builder has augured well for the EU-US relationship. During Ireland's Presidency of the EU, in the first six months of 2004, Ireland worked to draw the two sides together after the difficulties that arose over Iraq. The successful outcome of the EU-US Summit at Dromoland Castle is testament to these efforts. There are however reasons to be cognisant of possible difficulties into the future. As Ireland's economic momentum continues to develop, and as the traditional pattern of emigration to America slows and reverses, it will become more important than ever to maintain our shared understandings and continue to cultivate our close economic and diplomatic connections.

A significant medium through which this can be achieved is education. This is where academic institutes such as the Clinton Institute for American Studies at University College Dublin become increasingly important. The Clinton Institute will work to broaden and deepen knowledge of the United States from a distinctively Irish perspective and advance study of Irish-US relations in historical and contemporary frames, and by doing so, add considerably to the growth and sustenance of an already productive partnership.

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The United States and the European Union

'The North Atlantic Drift'

William Drozdiak

The transatlantic relationship has been crucial to the stability and prosperity of both Europe and America for over sixty years. However, over the past few years this traditionally close transatlantic alliance has suffered. The war in Iraq and Washington's growing penchant for unilateral action has divided the EU and the US.

In his article The North Atlantic Drift William Drozdiak opines that in order to repair the damaged transatlantic relationship, the Bush administration must revive the values of Republican internationalism. Drozdiak believes that the Bush administration in their first term squandered global empathy after the 9/11 attacks, extended US military forces beyond capacity and ruined the US economy. In order for the US to achieve its foreign policy goals it must turn to its allies and it must rely on persuasion rather than coercion to obtain support for its goals.

However, Drozdiak argues that all is not lost. President Bush does have another chance during his second term to mend traditional alliances. Drozdiak emphasizes the recent enlargement of NATO and the EU as seminal events providing the US with a great chance to strengthen economic, security and foreign policy with traditional allies.

Drozdiak, William, The North Atlantic Drift, Foreign Affairs, January/February, 2005

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'Mind the Gap'

Robert C. Pozen

On 1 May 2004, the European Union expanded to 25 member states, bringing the EU's populations to more than 450 million Europeans. The enlargement process finally brought to an end the artifical division of Europe and the admission of ten new member states has created a zone of peace, security and economic prosperity. While the enlargement of the EU has brought many challenges, it has also brought many opportunities.

In Robert Pozen's article Mind the Gap he argues that the recent EU enlargement coupled with an overall slowdown in US productivity has provided the EU with what Pozen believes is a significant chance to surpass the grandeur of US economic development. In the last decade, the US economy has expanded much faster than that of the EU15, and demographic trends suggest that this disparity will continue. If however, the EU can successfully integrate the EU10, and the US fails to find new ways to sustain high productivity levels, then the gap between Europe and the US will start to narrow for the first time since 1970.

The workers from the EU10 can provide much needed elasticity to Europe's labour markets, while the EU10 member states provide new expansive markets for companies.

Pozen, Robert, C. Mind the Gap, Foreign Affairs, March/April 2005

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'Marianne Unfaithful'

David Frum & Jeffrey Cimbalo

The recent rejection of the EU constitution by the French and Dutch voters has sent an unambiguous message to the leaders of the Untion; 'We the People feel alienated from the European institutions.' The issue of the 'democratic deficit' in Europe has finally found its place among mainstream voters.

The decision at the June European Council to enter into a 'period of reflection' on the treaty was undoubtedly the right decision at this time.

According to David Frum and Jeffrey Cimbalo of the American Enterprise Institute (AEI), the French, the Dutch and other Europeans have lost patience with the political system in Brussels, which remain aloof. Moreover, the politicians and elites in Europe seem increasingly uninterested in the views, values and interests of the very people they claim to represent.

Although Frum and Cimbalo disagree with some of the main reasons put forward by the 'non' camp leading up to the referendum, they do agree with the result.

The implementation of the Constitutional treaty in their view will only add to the problems of a distance Europe. It would do so in four equally important ways. First, it moves power away from elected governments. Second, it puts a lot more power of decision making in the hands of unelected bureaucrats. Third, the EU parliament remains impotent and the power still lies with the EU Commission and finally, the Constitution greatly expands the powers of the European Court of Justice, an institution which Frum and Cimbalo argue is even less representative than the commission.

Frum, David & Cimbalo, Jeffrey, Marianne Unfaithful, American Enterprise Institute for Public Policy Research, 1 June 2005

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The United States and International Affairs

'A Pretty Sticky First 100 Days'

He has a majority in both houses of Congress. He won the Electoral College and the popular vote in the recent Presidential election and many now feel he has political capital in abundance. So, why is President Bush having such a difficult second term?

It only took 100 days for much of the 'political capital' claimed by the President from his electoral victory to be spent. The evidence of the difficulties the President faces is everywhere. On his reform proposals for an overhaul of social security there seems to be little or no support. A Washington Post/ABC poll shows support for reform at around 31 per cent. Significantly, this is lower than the support former President Clinton gained for his health care reform package in 1994.

The President is still unable to get his candidate John Bolton secured as US ambassador to the United Nations and the economy has taken a turn for the worst. 'The Economist' argues that much of the difficulties currently being experienced by the President can be put down to a phenomenon that all second term Presidents suffer from - the fracturing of the Party after a victorious re-election.

Other reasons cited include the ambitious nature of the administration's second term agenda. Norman Ornstein of the AEI highlights that President Bush achieved a considerable amount during his first 100 days in 2001, despite nearly losing the election. So it was natural to assume that the administration was bound to achieve nearly all it wanted after winning out right the second time.

In addition, many pundits blame the President himself; arguing that he has fundamentally shifted the balance of power within the Republican Party toward the religious right and conservative big government. Many Republican's disagree with this developing trend.

'A Pretty Sticky First 100 Days' was taken from The Economist, May 7th-13th 2005

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'Grand Strategy in the Second Term'

John Lewis Gaddis

The September 11th 2001 terrorists' attacks on America ushered in a dynamic shift in US foreign policy. Since that time President Bush has taken unprecedented steps to protect US national interests. In his article Grand Strategy in the Second Term from the January/February edition of Foreign Affairs, John Lewis Gaddis argues that the changes introduced by President Bush have been the most comprehensive reformulation of US strategy since Franklin D. Roosevelt.

Overall, John Lewis Gaddis agrees that the administration should continue to work to restore security in this dangerous world. However, he also highlights the need for Washington to make some necessary readjustments. "Second terms in the White House provide an opportuntiy for second thoughts".

It is important for Washington to remember the art of speaking softly and the need for international legitimacy. It is quite clear that attempts to obtain international legitimacy to date have simply been attempts to secure multilateral legitimacy for unilateral action. There has been no sustained undertaking by the administration to connect with allies.

Gaddis, John Lewis, Grand Strategy in the Second Term, Foreign Affairs, January/February 2005.

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'Implementing Bush's Vision'

Henry A. Kissinger

George W. Bush's second inaugural speech put the advancement of freedom at the heart of US foreign policy. Many have described this move as the victory of "idealism" over "realism". However, Henry Kissinger argues that the real issue is to find a balance between these two crucial constituents of American foreign policy. " No serious realists should claim that power is its own justification," and " No idealist should imply that power is irrelevant to the spread of ideals."

The world has witnessed a remarkable shift towards democratic governance in recent years. States, including Afghanistan, Ukraine, Palestine, and Iraq, have all undergone profound changes in recent months - partly due to President Bush's foreign policy strategies. Nonetheless, this is just the beginning of an important and difficult process. The conation of a democratic culture conducive to these newly established institutions has yet to take hold.

Kissinger argues that pursuing a focussed commitment to the advancement of freedom across the globe requires a clear understanding of the undertaking. First, the US must remember that elections although a significant step, are only the beginning. The willingness to accept election results is a more critical hurdle.

Second, the American public must recognize that US foreign policy successes do not end their engagement but most probably deepen it. And finally, democratic elections are not the whole answer. A number of anti-democratic groups including Hezbollah and Hamas have learnt to undermine democratic government through legitimate means.

Kissinger, Henry A. 'Implementing Bush's Vision, To Effectively Spread Democracy, We Must Balance Values and Geopolitical Challenges' Washington Post, Monday, 16 May 2005.

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'The Overstretch Myth'

David H. Levy and Stuart S. Brown

As former US Treasury Secretary Lawrence Summers has said, "there is something odd about the world's greatest power being the world's greatest debtor." However, Levy and Brown argue that the state of US government finances is not a fundamental threat to its global economic supremacy.

Every since America began to dominate in world affairs; would-be Cassandra's have been predicting its downfall. From the Vietnam War, to Soviet nuclear parity and the Japanese economic challenges, many pundits have predicted the fall of US hegemony. In their recent article, 'The Overstretch Myth', Brown and Levy fundamentally question this perception. They argue that US power is firmly based on "economic superiority and financial stability that will not end soon."

The American economy is continuously expanding and its lead in the innovation and application of new technology ensures continued investment in the economy from top global financiers. "The dollar's position as the global monetary standard is not under threat and the risk to US financial stability posed by foreign liabilities has been greatly exaggerated".

Brown and Levy do indicate that the US economy will have to adjust to a decline in the dollar and a rise in interest rates. But they argue these shifts will only slow economic growth and not herald the collapse of US economic supremacy.

In the global market place the US dominates. To date, no significant challenger has emerged to threaten this position. Some analysts have cited the growth of the euro as a possible threat to the current dollar status. However, the facts present a different picture. At the moment, US economic growth out strips the EU's growth rate substantially. This disparity, coupled with the rigid nature of European capital markets, make this prospect unlikely in the near future.

According to Brown and Levy the largest threat facing US hegemony derives, "not from the sentiment of foreign investors, but from the protectionism and isolationism at home."

Levy, David, H. & Brown, Stuart, S. The Overstretch Myth, Foreign Affairs, March/April, 2005

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Transatlantic Affairs Editor: Frank Groome

If you have any comments or suggestions to improve this service please contact the editor at frank.groom@ucd.ie

The William Jefferson Clinton Institute for American Studies at University College Dublin www.ucd.ie/amerstud