By Leslie H. Gelb

Most nations today beat their foreign policy drums largely to economic rhythms, but less so the United States. Most nations define their interests largely in economic terms and deal mostly in economic power, but less so the United States. Washington still thinks of its security mainly in traditional military terms and responds to threats mainly with force. The principal challenge for Washington, then, is to recompose its foreign policy with an economic theme, while countering threats in new and creative ways. The goal is to redefine "security" to harmonize with twenty-first-century realities.

Economics is now the principal coin of the international realm, and gross domestic product now matters more than military might. Any doubts about that should be erased by one simple and overwhelming fact: China is the first global power in world history that is not a global military power. China’s military punch will be restricted to its border areas for years. Most nations worry not about Chinese arms, but about its trade and investment decisions. And though China’s GDP is just a little more than half of America’s, Beijing’s power rivals Washington’s. World leaders see China’s economy going up and America’s going down, largely because of Washington’s political incapacity to make hard decisions about its domestic economy.

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