4: Economic Growth and Prosperity

Lay the groundwork for future growth and support sustainable use of natural resources.

Other Information:

In his 2006 State of the Union Address, President Bush said, “We will choose to act confidently in pursuing the enemies of freedom—or retreat from our duties in the hope of an easier life. We will choose to build our prosperity by leading the world economy—or shut ourselves off from trade and opportunity.” As the world’s largest economy and trading nation, the United States derives enormous benefits from a stable, resilient, and growing world economy. In 2005, total U.S. trade accounted for more than one-quarter of the Nation’s income, while exports alone provided 20 percent of its economic growth. One out of every three acres of U.S. farmland is devoted to exports, as is one out of six jobs in manufacturing. Foreign investment in the United States is estimated at more than $12 trillion—roughly equal to one year of the U.S. economy’s output—while the value of U.S.-owned assets abroad is only modestly lower. Helping poorer countries share in the virtuous circle of development and achieve rapid, sustained, and broad-based growth is also in U.S. vital national security interests. Economic growth is essential to allow countries to reduce and eventually eliminate extreme poverty. Growth also generates the resources countries need to address a wide range of other development challenges, such as poor health and inadequate education. Countries that prosper tend to be more tolerant, more willing to settle disputes peacefully, and more inclined to favor democracy. The U.S. Government’s goal is rapid, sustainable, and broad-based economic growth, both domestically and internationally. To address the development challenges of the future, we must ensure that we lay the groundwork for future growth and support sustainable use of natural resources. We will work to ensure that our efforts effectively target women because growth will lag without the full participation of women. Together with our coalition partners and the international community, we will support economic growth and development in Iraq and Afghanistan—two critical countries on the front lines in the war on terror—by coordinating reconstruction assistance, negotiating debt relief, and facilitating access to international markets. We will continue to help integrate developing nations into the global economy. Coordination with the Millennium Challenge Corporation (MCC)—which has pioneered a revolution in development assistance by focusing our assistance on countries that govern justly, invest in their people, and foster economic freedom—ensures a comprehensive U.S. Government support of economic development activities. In the years ahead, we will build upon our diplomacy and development assistance successes in promoting economic growth and prosperity in opening markets, pursuing ambitious trade and investment agendas, assisting reform-minded governments to build the capacity to implement and sustain economic reforms effectively, multiplying development efforts through private sector participation and recipient country accountability, supporting U.S. businesses through advocacy, and helping areas rebuild from war, terrorism, and natural disasters.

Stakeholder(s):

• U.S. Trade Representative: USTR coordinates trade policy and trade negotiations.


• Millennium Challenge Corporation: MCC is a key partner in the provision of development assistance.


• Department of Agriculture: Agriculture is a key partner, particularly in provision of food aid, promotion of farm exports, and technical assistance for forest management.


• Department of the Treasury: Treasury directs U.S. policy in the international financial institutions and cooperates on initiatives such as the Global Environment Facility.


• Department of Commerce: Commerce works in support of U.S. businesses overseas and through the National Oceanic and Atmospheric Administration on marine resource issues, coastal zone management, and meteorology.


• Other Stakeholders: Departments of Defense, Energy, Justice, and Interior; the Environmental Protection Agency; the Federal Communications Commission; the National Aeronautics and Space Administration; the Overseas Private Investment Corporation, the Export-Import Bank, the u.S. Trade and Development Agency, the Small Business Administration, the Peace Corps, and the u.S. Geological Survey.

Objective(s):

4.1: Private Markets

4.2: Trade and Investment

4.3: Energy Security

4.4: Environment

4.5: Agriculture

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