America’s Strategic Recalibration: Addressing Post-Cold War Policy Insolvency

The 2025 National Security Strategy marks a significant shift from longstanding American foreign policy by recognizing resource limitations and emphasizing geographical proximity rather than global intervention. This change, while controversial, aims to address the "insolvency" issue—highlighting the disconnect between national goals and the means to accomplish them.
A close-up, shallow-depth-of-field shot of several small American desk flags standing in a row

The 2025 National Security Strategy represents fundamental departure from three decades of American foreign policy assumptions, explicitly acknowledging resource constraints and prioritizing geographic proximity over global interventionism. This strategic shift, while generating controversy, addresses what foreign policy analysts term “insolvency”—the persistent gap between national objectives and capabilities available to achieve them.

The Post-Cold War Illusion

The Cold War’s conclusion generated unprecedented optimism about American power and global transformation possibilities. Secretary of State Madeleine Albright’s characterization of the United States as “the indispensable power” that “stands tall” and “sees farther into the future” captured prevailing assumptions that American capabilities enabled unprecedented global reshaping.

These assumptions produced specific policy expectations: globalized capital and labor flows would liberalize China, Russia would rapidly transform into friendly free-market democracy, NATO expansion could proceed without serious Russian opposition or military consequences, American military forces could serve as global policeman while re-engineering societies in Iraq, Libya, Syria, and Afghanistan, domestic support for prolonged conflicts would remain stable, and foreign creditors would indefinitely finance expanding national debt.

Reality diverged substantially from these expectations. China pursued economic integration while maintaining authoritarian governance and developing strategic capabilities challenging American interests. Russia-NATO relations deteriorated as alliance expansion approached Russian borders. Military interventions in Iraq, Afghanistan, Libya, and Syria failed to produce stable democratic governance. Domestic tolerance for prolonged conflicts declined, and fiscal sustainability concerns intensified.

Strategic Premises and Priority Setting

The 2025 Strategy establishes several foundational premises contrasting with predecessor documents. First, it explicitly acknowledges finite American resources requiring prioritization rather than unlimited global engagement. This recognition—obvious in principle but largely absent from previous strategies—forces systematic assessment of which objectives matter most rather than pursuing all simultaneously.

Second, the Strategy asserts that priorities must derive from assessments of American security, prosperity, and freedom rather than abstract commitments to global order maintenance. This principle subordinates universal values promotion to concrete national interest calculations, reversing emphases in recent strategies that prioritized values-based engagement.

Third, the document emphasizes geographic proximity, arguing that events in America’s immediate neighborhood matter more than developments in distant regions. This assertion challenges globalist assumptions that interconnection renders geography obsolete, instead reasserting that physical proximity correlates with strategic importance.

These premises represent significant departures from post-Cold War strategic thinking, which emphasized global engagement based on assumptions of American capability surplus and moral obligation to shape international development worldwide.

Multipolarity Recognition and Power Distribution

Beyond resource constraint acknowledgment, the Strategy recognizes fundamental shifts in global power distribution. The world has become more polycentric, with multiple power centers possessing significant autonomy rather than unipolar American dominance or bipolar Cold War structure. This recognition carries implications for alliance management and adversary engagement.

Specifically, the Strategy implicitly argues that American policies inadvertently encouraged Russian-Chinese cooperation against Western interests. By treating both Moscow and Beijing as adversaries requiring simultaneous containment, Washington pushed these powers toward strategic partnership despite historical tensions. A more differentiated approach—engaging Russia to reduce its dependence on China—could fragment this partnership, preventing Beijing from leveraging Russian capabilities as force multiplier.

Similarly, the Strategy questions continued European dependence on American security provision. Rather than maintaining patterns established during Cold War bipolarity, Washington should encourage European military strengthening and internal cohesion, enabling Europe to serve as stabilizing counterweight to Russia independently. This approach assumes that Europe possesses resources to provide its own defense but lacks political will generated by American security guarantees.

Geographic Prioritization and Monroe Doctrine Revival

The Strategy’s “Trump Corollary” to the Monroe Doctrine reasserts Western Hemisphere primacy in American strategic thinking. This principle, largely dormant during recent decades emphasizing global engagement, argues that developments in Latin America and Caribbean directly affect American security more than events in distant regions.

However, this approach raises implementation questions. Russia’s experience attempting to dominate its near abroad through coercion and intimidation demonstrates that heavy-handed neighborhood management often produces counterproductive results, driving smaller states toward external partners for protection. Moscow’s pressure on Ukraine and other post-Soviet states accelerated their Western orientation rather than securing Russian influence.

The Strategy’s success in Western Hemisphere depends on whether Washington employs attraction rather than coercion, offering genuine partnerships rather than demanding subordination. Latin American states increasingly diversify their international partnerships, including with China’s Belt and Road Initiative, suggesting they will resist American attempts at exclusionary sphere-of-influence arrangements.

European Engagement and Domestic Politics

The Strategy’s call to “cultivate resistance” to Europe’s perceived “self-destructive trajectory” has generated controversy regarding appropriate American involvement in allied domestic politics. The document expresses support for populist movements challenging mainstream European governance, raising questions about intervention extent and potential backlash.

Historical precedents of American intervention in allied politics demonstrate mixed results. Heavy-handed approaches often strengthen opposition to American-preferred outcomes by enabling nationalist mobilization against foreign interference. Successfully influencing European political development requires subtle engagement respecting democratic sovereignty while supporting movements aligned with American interests.

The Strategy’s emphasis on European self-sufficiency conflicts somewhat with simultaneous calls for shaping European political trajectories. If Europe should develop autonomous security capabilities and political cohesion, extensive American interference in domestic political processes undermines this autonomy goal. Reconciling these objectives requires careful balance between encouragement and intrusion.

China Strategy: Competition Without Confrontation

The document outlines multifaceted China approach combining deterrence, engagement, counter-balancing, and competition. This framework recognizes that US-China relations cannot be reduced to simple confrontation or cooperation but require simultaneous pursuit of competitive and cooperative elements.

Deterrence focuses on preventing Chinese military action in Taiwan Strait and South China Sea while maintaining technological advantages in strategic sectors. Engagement continues economic interdependence where mutually beneficial while establishing guardrails preventing competition from escalating into conflict. Counter-balancing strengthens Asian partnerships including Japan, India, and ASEAN states to prevent Chinese regional hegemony. Competition emphasizes economic and technological domains where American innovation can maintain advantages.

This approach implicitly rejects both Cold War-style containment demanding complete Chinese isolation and naive engagement assuming economic integration automatically produces political liberalization. Instead, it accepts long-term strategic competition while managing risks and maintaining selective cooperation on issues like climate and pandemic response.

Implementation Challenges and Bureaucratic Resistance

Strategic vision requires effective implementation to produce policy results. The Strategy faces several implementation challenges beyond conceptual framework. First, many senior administration positions remain unfilled, limiting capacity to translate strategic concepts into operational plans and coordinate across agencies.

Second, achieving Strategy objectives requires marshaling expertise from professional foreign policy bureaucracy that often disagrees with its premises. Career officials trained in post-Cold War frameworks emphasizing global engagement and values promotion may resist reorientation toward restrained realism prioritizing concrete national interests. Managing this resistance while leveraging institutional expertise represents significant leadership challenge.

Third, translating principles into specific actions inevitably encounters complexities not captured in strategic documents. The Ukraine conflict illustrates this difficulty—pursuing negotiated settlement advancing American interests while managing Ukrainian expectations, allied concerns, and Russian demands proves far more complex than abstract statements about seeking peace.

Assessing Foreign Policy Solvency

Walter Lippmann, prominent twentieth-century foreign affairs analyst, coined the term foreign policy “insolvency” to describe gaps between objectives and capabilities. By this metric, American foreign policy has operated insolvent for three decades—pursuing objectives requiring resources and commitment levels unsustainable long-term.

The 2025 Strategy attempts addressing this insolvency by scaling back objectives to match available capabilities and public support. Rather than maintaining global military presence, conducting unlimited interventions, and simultaneously confronting multiple great powers, it prioritizes geographic proximity, encourages allied burden-sharing, and differentiates among adversaries.

Critics argue this approach abandons American global leadership and retreats from commitments that maintained international stability. However, defenders contend that persistent gap between objectives and capabilities has undermined American power more than strategic adjustment would. Overextension weakens rather than strengthens influence by dissipating resources across too many fronts while failing to achieve decisive results anywhere.

Long-Term Implications and Open Questions

The Strategy’s success depends on multiple factors beyond administration control. Will allies accept increased security burdens as American guarantees become less automatic? Can Washington successfully differentiate its Russia and China policies without appearing weak toward either? Will prioritizing geographic proximity leave power vacuums elsewhere that adversaries exploit?

These questions lack clear answers, suggesting the Strategy’s implementation will require continuous adjustment as circumstances evolve. However, the document’s explicit recognition of constraints and priorities represents significant analytical advance over predecessor strategies that assumed unlimited American capabilities and universal interests justifying global engagement regardless of costs.

Whether this recalibration produces better outcomes remains uncertain, but continuing previous approaches while expecting different results appeared increasingly untenable. The Strategy offers framework for aligning means with ends—fundamental requirement for sustainable foreign policy that decades of magical thinking obscured.


Original analysis inspired by George Beebe from Responsible Statecraft. Additional research and verification conducted through multiple sources.

By ThinkTanksMonitor