Shadow Government

Chuck, you're the secretary now

Chuck Hagel may have survived his confirmation ordeal in the Senate, but his troubles may be just beginning. Sequestration is upon us, and his department will have to find a way to minimize the impact on military operations and systems acquisition of that rightly much-maligned budget cutting vehicle. 

Hagel is fortunate to have Bob Hale as comptroller. Hale is a veteran budget expert who never loses his cool. But even Hale's expertise will not be enough to prevent the kind of wholesale damage to DOD's force posture, both today and in the future, that Hagel's predecessor, Leon Panetta, outlined in detail many months ago. 

Hagel must also reassure allies that the United States, and its military, are not in complete disarray. That will be hard to do as long as the sequester is in force. Nor does it help that the United States already has but one aircraft carrier deployed overseas. Not only does that signal America's inability to maintain 24-hour sea-based aircraft operations from the onset of a crisis, it also feeds the worst fears of allies and friends that the United States is slowly, but inexorably, turning inward.

If friends will be worried, as they already are, enemies will exult. The conclusion that Iranians, North Koreans, Venezuelans, and an array of Islamic terrorist groups, not least of which is Hezbollah, will reach is that Washington does not have the clout it once did and that the door to further mischief is wide open. Rivals such as China and Russia will likewise conclude that they can pursue their interests far more aggressively, without any credible American pushback. And fence-sitters like India will be even more reluctant to welcome an American embrace. 

What can Hagel do to stop the rot? In the short term, he could voice his support for a Republican proposal to exempt DOD from sustaining its cuts across-the-board and empower Hale and his team of budget managers to allocate those cuts in a way least harmful to operations and acquisition. For the longer term, Hagel should articulate a clear message about not only the impact of further cuts to defense, but also his determination to ensure that long-standing barriers to efficient defense spending, such as the depression-era Davis-Bacon Act, or the Jones Act, which for decades has undermined the efficiency of the shipbuilding industry and has resulted in driving up the costs of naval construction, should finally be shoved aside.

Hagel could also call for raising the ceilings on reprogramming requests, which limit the comptroller's ability to manage DOD's cash efficiently; for funding an internal DOD audit capability to ensure that funds are not held in "reserve" by bureaucrats who then spend that money wastefully at the close of the fiscal year; and for real caps on spiraling defense health care costs. 

If ever there was an opportunity to remove the barnacles that have hung onto the DOD budget for so long, it is now. An efficiently managed DOD budget would at least to some degree soften the impact on force readiness and modernization of further massive cuts that the Obama administration, driven more by ideology than economics, erroneously concludes are central to the budget deficit. It might also help mitigate the damage that has already been done to America's credibility as a reliable ally for the long term and as a force that its enemies must reckon with in the short-term as well. 

Hagel has forcefully asserted that the department spends its money inefficiently. He is now secretary of defense. He can do something about it and should do so now. He has no time to spare.

Shadow Government

How to win a cyberwar with China

The Internet is now a battlefield. China is not only militarizing cyberspace -- it is also deploying its cyberwarriors against the United States and other countries to conduct corporate espionage, hack think tanks, and engage in retaliatory harassment of news organizations.

These attacks are another dimension of the ongoing strategic competition between the United States and China -- a competition playing out in the waters of the East and South China seas, in Iran and Syria, across the Taiwan Strait, and in outer space. With a number of recent high-profile attacks in cyberspace traced to the Chinese government, the cybercompetition seems particularly pressing. It is time for Washington to develop a clear, concerted strategy to deter cyberwar, theft of intellectual property, espionage, and digital harassment. Simply put, the United States must make China pay for conducting these activities, in addition to defending cybernetworks and critical infrastructure such as power stations and cell towers. The U.S. government needs to go on the offensive and enact a set of diplomatic, security, and legal measures designed to impose serious costs on China for its flagrant violations of the law and to deter a conflict in the cybersphere.

Fashioning an adequate response to this challenge requires understanding that China places clear value on the cyber military capability. During the wars of the last two decades, China was terrified by the U.S. military's joint, highly networked capabilities. The People's Liberation Army (PLA) began paying attention to the role of command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) assets in the conduct of war. But the PLA also concluded that the seeds of weakness were planted within this new way of war that allowed the United States to find, fix, and kill targets quickly and precisely -- an overdependence on information networks.

Consider what might happen in a broader U.S.-China conflict. The PLA could conduct major efforts to disable critical U.S. military information systems (it already demonstrates these capabilities for purposes of deterrence). Even more ominously, PLA cyberwarriors could turn their attention to strategic attacks on critical infrastructure in America. This may be a highly risky option, but the PLA may view cyber-escalation as justified if, for example, the United States struck military targets on Chinese soil.

China is, of course, using attacks in cyberspace to achieve other strategic goals as well, from stealing trade secrets to advance its wish for a more innovative economy to harassing organizations and individuals who criticize its officials or policies.

Barack Obama's administration has begun to fight back. On Feb. 20, the White House announced enhanced efforts to fight the theft of American trade secrets through several initiatives: building a program of cooperative diplomacy with like-minded nations to press leaders of "countries of concern," enhancing domestic investigation and prosecution of theft, promoting intelligence sharing, and improving current legislation that would enable these initiatives. These largely defensive measures are important but should be paired with more initiatives that start to play offense.

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