23 October 2024

The Time Is Right for Ally-Shoring, and It’s About More Than Being Friends

John Austin, Author and Elaine Dezenski

After decades of reflexive globalism and tolerance of authoritarian economic coercion, a new vision of U.S. international leadership is emerging. On both sides of the political spectrum, there is an awareness that the United States must increase its investments in people, innovation, and infrastructure to strengthen the economy at home, while enhancing trade, sourcing, and the global coproduction system with countries that share American values and want to strengthen a rules-based global economic and political order. This is an approach we call ally-shoring.

Investments at home are vitally important to bring opportunity to those people and places feeling increasingly left behind in the global economy, as we wrote when we first introduced the idea of ally-shoring. But not every industry, supply chain, or ingredient should be simply reshored back to the United States. That is neither efficient nor productive for the U.S. economy. Rather, the United States should be leading an economic alliance of like-minded nations in a sub-global economy built around transparency, democracy, individual freedoms, and support for the rules-based order.

Ally-shoring and friendshoring (as the Joe Biden administration calls it) have become new buzzwords to describe a global supply chain rewiring that is already underway. Ally-shoring is about building new pathways for enhanced cooperation between like-minded nations in producing critical supplies and collaborating in key sectors in which democratic nations seek to maintain strategic advantages (such as artificial intelligence, quantum computing, next-generation energy, and biotechnology).

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