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*This is a joint post with Steve Radelet
The extraordinary challenges and opportunities of today require a new vision of American global leadership based on the strength of our core values, ideas and ingenuity. They call for an integrated foreign policy that promotes our values, enhances our security, helps create economic and political opportunities for people around the world, and restores America's faltering image abroad. We cannot rely exclusively or even primarily on military might to meet these goals. Instead, we must make greater use of all the tools of statecraft through "smart power," including diplomacy, trade, investment, intelligence, and a strong and effective foreign assistance strategy.
Steve Krasner, Director of Policy Planning Staff at the Department of State, spoke on Transformational Diplomacy on Friday before a standing-room-only crowd at a CGD event (transcript) He argued that the creation of a new Deputy for Development in the State Department reporting directly to the Secretary of State Condoleezza Rice, announced the day before, would strengthen not weaken USAID and thus the effectiveness of U.S. foreign aid programs.