Expeditionary economics

The term was introduced in 2010 in an essay by Carl Schramm, the former president and CEO of the Ewing Marion Kauffman Foundation. It focuses on the need for good economic planning on the part of developed nations to help prevent the creation of failed states. It also emphasizes the need for the structuring on new firms to rebuild national economies.

Since then, the theory has been used by the U.S. Government and the U.S. Army to restructure the economies of countries such as Iraq and Afghanistan and helping Haiti after its severe earthquake. Its aim is to provide economic stabilization and support the counterinsurgency tactics in such nations.

History and theory

Expeditionary economics and armies must focus on infusing entrepreneurship and "messy capitalism" which prevails in the U.S. He describes the strategy adopted by economists to quickly establish a trajectory toward economic growth with the formation of firms that can generate rapid growth in revenue and employment. He also asks the U.S. Army to "treat economic reconstruction as part of any successful three-legged strategy of invasion, stabilization or pacification, and economic reconstruction."

The Pentagon has confirmed that it has applied the theory as a "weapon" to stabilize operations in countries with past conflict such as Iraq and Afghanistan and has planned various measures which will come into effect just as the army leaves the countries. With special reference to Iran and Afghanistan, reports show that significant resources have been dedicated to such efforts over the past decade, with hundreds of billions of dollars spent in the two countries. The theory rests to a huge extent on the dynamism of new firms, which constantly introduce innovations into the economy. The U.S Government's recent engagements have made it appreciate that post-conflict economic reconstruction must become a core competence of the U.S. military. However, their actions do not present any such appreciation.