Speeches & Texts
The Transatlantic Partnership: A Catalyst for Global Cooperation
American German Business Club (AGBC Frankfurt)
Frankfurt am Main, March 3, 2011
Ambassador Philip D. Murphy
David, Thomas, thank you very much for the invitation to meet with the members of the American German Business Club.
Für mich ist das fast, als käme ich nach Hause – in Frankfurt liegen ja gewissermaßen meine deutschen Wurzeln. Ich sehe hier viele bekannte Gesichter. Wieder hier zu sein erinnert mich daran, wie die Welt vor 15 Jahren aussah, als ich in Frankfurt gelebt und gearbeitet habe. Damals war ich natürlich in einer ganz andere Funktion hier.
This is almost like coming home for me – since in a way, Frankfurt is where my German roots are. I see a lot of familiar faces. Coming back makes me think of where the world was 15 years ago when I lived and worked here in Frankfurt. Of course, I had a very different job then.
And allow me to say here and now what an honor it is to serve my country and the German-American partnership as Ambassador. Fifteen years ago, I never would have dreamed that I would one day be back in Germany in this job. I know that I certainly did not give as many speeches then as I do today but I am reminded of a speech I gave not to the AGBC but to another fine organization that, like the AGBC, does so much for our partnership – the Atlantik Brücke. In that speech, I remember describing the market situation in1995 as chaotic. Germany had become a laboratory for developing so-called “best practices” for investment by the well-heeled West as they struggled to fund the past and future of the East; but the euphoria had begun to fade. The transition of economies in the East to investment grade credit was moving slowly, too slowly. And Germany was gaining a reputation for being the sick man of Europe. There was a financial crisis in Mexico, a recession in Japan, and a sluggish recovery from war in the Arab world as countries there re-balanced their oil-based economies. Well, it is a good thing that I never claimed to be either an historian. If I described the mid-nineties as chaotic, what have the last few years been?
The situations that the world faces today are of a complexity that we could not have imagined 15, let alone 20 years ago at the end of the Cold War. From financial crisis and economic insecurity, from the dangers of weapons of mass destruction and terrorism, the challenges posed by failed and failing states to the potential of emergent and resurgent powers; never before, have events taking place in one country played such an important role, or potentially important role, to other countries, whether they are located next door, on the other side of a continent, or the other side of the world.
It’s easy to think that no generation has ever faced greater challenges. As any follower of contemporary history knows, however – even amateurs like myself, when I think back to that speech at the Atlantik Brücke – every generation has had its share of intractable problems and dilemmas, its piece of dangerous foreign policy terrain to cover, and also its share of genuine opportunities. This, however – and once again, I guess I risk the chance that my words too may sound hopelessly dated 15 years from now – this, I believe, is a unique moment in history. It is marked by an interdependency that has never been seen before.
A number of years ago, Professor Joseph Nye who brought the concept of soft power to the world’s attention, described global power structures as a three-dimensional chess game with separate boards for military power, economic interests, and trans-national challenges such as climate change or terrorism. It was an interesting comparison. Ambassador Richard Holbrooke, whom I am sure many of you knew from both his time in Germany and afterwards, also used chess as an analogy but said that diplomacy was like playing chess while mountain climbing. That was what Dick Holbrooke was like – always pushing, climbing, reaching for the goals that would bring about a better world. God bless his soul.
I personally would probably use a soccer field rather than a chessboard as a point of reference. I understand that some of you here might prefer a baseball diamond. And our kids would probably understand three-D role playing even better in the online games they engage in.
I would also add, however, a number of parallel and intersecting spheres to the diagram. Each of the 200 separate and sovereign nations on this planet has a distinct past that has shaped its interests, values, and goals; and each of these nations has a future that will be shaped by an infinite series of new choices. These choices, when made by politically awakened and technologically empowered people, represent an enormous potential for transformative and positive change. Then add relationships the private sector to those equations and the role that investment and innovation can play and you can begin to understand the multi-dimensional reality of the world we live in. This is a reality where both the stakes and sometimes the passions run high.
To play the game and win – the same as in chess, or soccer, or baseball – or more simply to operate effectively on the shifting ground of the global landscape, nations have to play all the levels I just mentioned, both horizontally and vertically and at the same time. And there are individual players and teams on the playing field that are incrementally stronger, faster, and able to carry or bat the ball further than ever before. I understand we have some Red Sox fans here. Even you will understand that the Sox can’t always be up at bat, but the stronger the player, the more important a role they will play over time. And here, again returning to the real life world of real-life players in international relations, I think of Germany; I think of Europe; I think of my country; and I think of the strength of our partnership.
Right now, for example, the eyes of the world are on the Middle East and in particular on Libya. There are many ways that the transitions that are taking place there and in other countries in the region can go right; but there are also many ways they can go wrong. In each of these countries, change is coming from the inside. It is the people, and especially the young people, that are calling for greater civil liberties, economic opportunities and a stake in the governance of their own societies. There are many similarities in the individual national events that are unfolding but there are also differences. You cannot take one historical, cultural, or political experience and superimpose it on another.
By the same token, it would be naïve to think that either the United States or Europe could dictate or predict the outcomes or tell any of these countries what to do. We can, however, work with the forces within their societies that are trying to make change possible and make sure that they have the support needed. Together the United States and Europe can support those who seek democratic and economic reform; those who want to protect minority rights; those who want to protect the rights of women; and those who want to build democratic institutions that will reflect real results for the people.
In a volatile situation like the one in Libya, we need to make that that those messages of support are loud and clear; and also that the nations and peoples of the world speak with one voice. President Obama and leaders from the European Union, the Arab League, the African Union, the Organization of the Islamic Conference, and many individual nations have spoken out and said that the suffering and bloodshed in Libya is unacceptable; that it violates international norms; and that it must stop. The message that the unanimous UN Security Council resolution sent on the weekend was unmistakable. But where do we go from here? In Washington, President Obama has asked his administration to prepare a full range of options on the way forward. He and Secretary Clinton have sent Under Secretary of State William Burns to speak with leaders in Europe and the Middle East to intensify our consultations on the situation in Libya and the broader region. One of the Under Secretary’s first stops was in Berlin. Last Friday I joined him at meetings at the Kanzleramt and with Aussenminister Westerwelle.
The focus of the discussions was on coordinated political, economic and social actions with allies and partners, and how they best can be implemented, often through multilateral institutions and NGOs. This is the face of both American and European diplomacy in the 21st century. It demonstrates a commitment and level of engagement that is fundamental to the transatlantic partnership. It also encompasses a conviction that social responsibility – at all levels of that multidimensional playing field I spoke of earlier – is essential. It is that simple conviction that underlies the lessons we have learned over the past seventy years in a relationship that has also gone through its fair share of transitions. We were adversaries, occupiers, rebuilders.
Now we are partners "auf augenhöhe." And through all these transitions, we have learned that by supporting universal values and human rights; by creating new opportunities for economic growth; and partnering to advance the kind of sustainable, inclusive economic growth that builds prosperity, we can achieve real results.
There are many chapters to this story – chapters in our partnership that I think are worth remembering and also worth talking about to young people – in a way, of course, that makes sense to them. As a father, I know that the best argument is seldom just a lesson from the past. By the same token, if you watch the news and observe how politicians react in particular situations, you also want to ask them, “Hey, haven’t we been through this before?” – and here I am talking about the deadlock on the budget in the U.S. Congress. I personally thought the prospects for responsible bipartisanship were encouraging in the weeks after the midterm elections. I haven’t given up.
I am sorry if I have gotten off the subject. I was talking about young people and the lessons of the past; and I hope I did not give the impression that young people in this country are not aware of our shared history. It is, however, perhaps less meaningful to them than to you or I. I am concerned sometimes that they don’t feel the impact and the potential of our relationship, of where we have come from. Does that mean that they cannot know where we are going?
These are issues that I think are worth discussing. And that is something I do frequently in town halls at schools and universities around this country. Increasingly I also use virtual channels to conduct these conversations. Just last week, I announced on my Facebook page how pleased I was that Hans-Dietrich Genscher had attended a pre-reception for the Best of European Business Awards 2011. The focus this year was on German companies that were active in Asia and it coincided with the idea behind the Department of State awards for corporate citizenship that are given annually to U.S. companies that are active in overseas markets. As Secretary of State Clinton says, “There is no conflict for companies between doing well and doing good.”
I mentioned that the participation of Dr. Genscher underlined the complementary role that the public and the private sectors can play in creating empowering environments – both at home and abroad. A young Facebook “friend” got back to me and asked what I meant by “empowering.”
Me back to my Facebook friend: “An empowering environment is one that offers people a fulfilling, meaningful future. It is up to both the public and the private sectors to create those opportunities. It is up to individuals to take advantage of those opportunities.”
His response: “Okay, I understand that part but how does an aged politician add value to the event?”
And my answer: “Valuable and interesting because Hans-Dietrich Genscher served at a time when Germany and Europe experienced enormous change and when individuals experienced opportunities they never had before.”
I think he finally understood my point of view because I did end up getting a “like” from him. And you know, it doesn’t matter if he really likes what I had to say or whether he agreed with me in the end. The main thing is that he started to give the matter some thought.
I expect that that is also the case when you as AGBC members reach out to young people as mentors through your wonderful Entrepreneurs of Tomorrow program. I see tremendous importance in initiatives like this. First, you are showing these potential young entrepreneurs what opportunity is all about – and the responsibility that comes with it. I often say how wonderful it would be if we could wave a magic wand and create the conditions for economic prosperity that would give young people good jobs that pay well and that offer a fulfilling, meaningful future. I am talking about young women and men here in this country and also in mine, especially for those who sometimes feel that life has already passed them by; but I am also talking about young people in the countries of the Middle East, the young people that are front and center in the news these days.
But let’s face it: the world's problems are vast but resources are not. Neither the public nor the private sector comes equipped with magic wands. We must look for more pragmatic ways to work together as effectively within the parameters of the 21st century. One of those parameters, I believe, is based on a simple equation: the multiplying factor of economic opportunity plus political responsibility and freedom that is exponentially far greater than the sum of its parts when placed on that multi-dimensional grid of involvement and engagement that I talked about earlier.
There is another lesson that I hope that the young entrepreneurs that you are working with learn: and that is that competition and collaboration can go hand in hand. That means that American prosperity is important for Germany and the rest of the world; and the same thing goes for German prosperity. History has taught us in many different ways and at many different times, that national prosperity creates the parameters for global security. I think we are looking at such a situation right now in the Middle East.
Certainly we saw another example of that over the past few years, as the leaders of the world’s 20 major economies came together to pull the global economy back from the worst financial crisis since the Great Depression. The transatlantic partnership has been particularly important in this regard – not only because we share enormously strong trade and investment ties, but also because of our record in promoting sound market-driven economic policies based on a set of underlying common values based on freedom and democracy.
We are past the crisis point in the economy. The United States is perhaps not as far down the road as Germany but the focus in both of our countries is now on jobs and sustainable growth. In every sector, from manufacturing to clean energy to high-tech to biotech, governments need to make sure that they are good partners – either as facilitators or catalysts – for the private sector. Because it is clear that the private sector has to be the driving force in the recovery.
We drew strength in the period after World War II as transatlantic economies grew and converged. We will need to find ways to continue to prosper as emerging markets of the world take their place on the global stage. There is no going back to the past. Technology is accelerating productivity in mass production to the point where even China has seen major manufacturing employment decline. I am so often asked about the role of China in the world economy that I am often reminded of our concern about the BRIC countries 15 years ago – especially on occasions like this when I come back to Frankfurt.
My take now is not much different than it was then. You succeed by establishing your own uniqueness and excellence. Any idea or machine or even individual capacity can be transplanted. Far harder to transplant, imitate, or emulate, however, are national laboratories, great universities, innovative technology clusters, a diverse culture, deep capital markets, and a flexible work ethic. Where competition is concerned, the lesson for nations is the same as the lesson for business: it is far better to compete by innovating, leading, and competing on strength, than by standing still. The same holds true for the transatlantic partnership. We need to honor our past and build on our achievements.
A few weeks ago, President Obama did just that. He awarded the annual Medal of Freedom, my country’s highest civilian honor, to 15 individuals.
Among those honored was George Herbert Walker Bush, America’s 43rd President, for a career of service that spans nearly 70 years. President Bush still plays a very active role in the civic life of my country. The same week he received the award, he and former President Bill Clinton were named as honorary chairs of the National Institute for Civil Discourse, a new center that has been established in Arizona in the wake of the shooting of a Congresswoman Gabrielle Giffords to encourage civility in politics. When democratic revolutions swept across Eastern Europe, President Bush brought that same commitment to civility and the political process to bear. His steady diplomatic hand helped to make possible an achievement once thought impossible. The Cold War came to an end. The Berlin Wall came down; and one year later, the two Germanys were one.
Chancellor Angela Merkel’s name was also on the list of honorees. The Chancellor could not be present at the ceremony but President Obama will present the award to her on her next trip to the United States. In his remarks, however, the President recalled her words to a joint session of the U.S. Congress two years ago. I had the privilege of attending that event in November 2009 and I can tell you that a shiver went through the chamber of the House of Representatives and touched the hearts of the toughest American politicians when your Chancellor said, “Everything is possible. [But] freedom does not come about of itself. It must be struggled for, and then defended anew, every day of our lives.”
In his remarks, President Obama also remembered the words of President John F. Kennedy who, at a similar ceremony almost 50 years ago, observed that a nation reveals itself by the men and women that it honors. Last week, in honoring the achievements of Chancellor Merkel and President Bush, America also honored the partnership between our two countries – for the proud accomplishments of its past and the potential of its future. One of the lessons we have learned together is that human beings anywhere progress most when they are empowered by responsive and responsible governments. André, my Facebook friend, there is the word empowerment again. That is why it is important and meaningful that we honor our shared commitment to political process, to democracy, and to freedom. It does indeed reveal the qualities of both of our nations. The recent events in the broader Middle East demonstrate why in the future we have no other choice than to remain fully engaged around the world.
I would like to end on that note. The world has been inspired by the courage and determination of people, particularly young people in the Middle East. We see in their struggles a universal yearning for dignity and respect. And they remind us, as Secretary of State Hillary Clinton said earlier this week in Geneva: “the power of human dignity is always underestimated until the day it finally prevails.”
I would also like to thank the members of the American German Business Club, today for your hospitality, but also over the years for your commitment and dedication.
I know that here in Frankfurt, there are a lot of ties that bind the club to the Consulate and the Embassy. You met in days gone by in the Amerika Haus. One of those meetings, on a clear September day ten years ago, was just coming to an end when the world learned about the tragedy of the terrorist attacks in New York and Washington DC. These too are ties that bind and ties that remind us of our responsibility to the past, but most of all to the future.
Vielen Dank für Ihre Aufmerksamkeit.
As prepared for delivery.