Jake Sullivan, US National Security Advisor, delivered a wide-ranging speech on the integration of domestic and international economic policy under President Biden’s administration. Reflecting on the post-World War II period, he acknowledged the creation of an international economic order that led to widespread prosperity, but also recognised the challenges and shortcomings of this system that have emerged in recent decades.
Emphasising the need for a new consensus, Sullivan highlighted the Biden administration’s modern industrial and innovation strategy. This approach focuses on strengthening America’s economic and technological base, promoting diversified and resilient supply chains, setting high standards across sectors, and investing in public goods such as climate and health.
He debunked the notion that the “New Washington Consensus” is exclusive to America or the West, arguing that it aims for a fairer global economic order that benefits all. Sullivan identified four fundamental challenges facing the US: the hollowing out of the industrial base, adapting to a new geopolitical and economic environment of strategic competition (especially with China and Russia), the climate crisis, and inequality.
The speech outlined steps in this new strategy, including a modern American industrial strategy with targeted public investment, international cooperation to build capacity and resilience with partners, innovative economic partnerships beyond traditional trade deals, and mobilising investment in emerging economies.
Sullivan also touched on protecting enabling technologies and managing competition from China. He concluded by reaffirming the Biden Administration’s commitment to building a more inclusive and resilient international economic system, and emphasised working with Congress and international partners to achieve these goals.