Deputy Secretary Landau Champions Private-Sector-Led Economic Diplomacy Over Traditional Aid

Thank you. In this role, I frequently deliver speeches. However, this particular address strikes at the very core of why I am in this position and what I aim to achieve.

First and foremost, I want to thank President Trump and Secretary Rubio for the opportunity to serve as Deputy Secretary of State and to act as the quarterback of our economic diplomacy efforts. I also want to extend my gratitude to Ambassador Waltz, Ambassador Negrea, and the entire USUN mission for organizing this initiative.

I am deeply delighted to serve under this President and Secretary alongside colleagues like you, because for many decades, economic and commercial issues have taken a back seat in the world of diplomacy. It is widely assumed that diplomacy involves solely resolving political, military, and security questions. However, as our Founding Fathers wrote, the ultimate purpose of our foreign policy is to bring prosperity to our people through economic and commercial intercourse with other nations.

Ultimately, those of us serving democratically elected governments must demonstrate to our citizens that their confidence was well-placed by improving their lives. Ensuring a safe and secure country is vital, but equally important is fostering a prosperous nation with economic opportunities and jobs. This, fundamentally, is the core of diplomacy.

On a personal note, my father was a career diplomat. He spent many years in the private sector before entering government at age 37, when President Eisenhower initiated a program to bring private-sector experience into government. The logic even then was that professional diplomats were not focused enough on commercial diplomacy. My father’s first post was as a commercial attaché at our embassy in Montevideo, Uruguay. He always maintained that a good ambassador is, first and foremost, a good commercial attaché, and that strong economic relations between countries create a lasting foundation of goodwill.

Many of us in government service come and go. My administration may only be here for another two and a half years, after which someone new will take the stage. Therefore, it is crucial that we create something real and lasting. These economic projects establish foundations that outlast any single government and provide tangible value to the people.

While aid programs can keep things afloat, they often come with strings attached—conditions that may conflict with a country’s culture and force unpleasant compromises. It is vital to identify real, lasting economic value that benefits both the recipient nation and others. There is often a global misconception that foreign capital compromises sovereignty. I want to be an affirmative voice in dispelling this myth: investment is an engine of growth.

Sovereign governments set the terms for investment, which is perfectly acceptable as long as those terms are clear. Businesses seek certainty and a framework where they can calculate returns in advance and demonstrate to their stakeholders that their investments have been successful and their promises fulfilled.

It is crucial that everyone understands these are win-win opportunities. Local communities receive capital to build infrastructure, create jobs, and drive economic growth, while other countries also benefit. These ties forge lasting political relationships and give people an economic stake in the partnership. Consequently, if anyone threatens to jeopardize the relationship, business leaders in both countries will speak up, recognizing that it is built on solid ground, not sand.

I am excited to be part of this global initiative, which recognizes that we have too long lived on the mirage that aid alone can sustain everything. Both recipient and donor countries must recognize that finding real economic possibilities is a far preferable model. This is not always easy, but my role—and the role of our government—is to serve as the intermediary. We do not deploy capital ourselves; we have an incredibly dynamic private sector. My job is to connect that sector with opportunities abroad.

I must ensure that the private sector can accurately assess the risks of investing abroad. How many of you are from the private sector? How many are from foreign governments? And how many are from the U.S. Government? It is a very healthy mix, and we must start talking to one another.

I see my role—and the role of all of us in the U.S. Government—as an intermediary between our dynamic private sector and opportunities abroad. There are often communication and risk-assessment problems, which essentially boil down to information flow. If I am doing my job correctly, the American private sector will be aware of opportunities, and they can tell me the challenges.

I travel the world constantly and hear the same question: “Where are the Americans, and why do we get five bids from another country and zero from American companies?” This is a significant problem. I spent many sleepless nights pondering it, and I realized I had been looking at it incorrectly. I used to focus solely on operating companies—construction firms like Bechtel, oil companies, and mining firms.

They are an important piece of the puzzle, but I had not focused sufficiently on our capital. The United States, particularly New York City, is the world’s financial capital. Trillions of dollars are sitting here, waiting to be deployed. If you engage the people on the capital side, they will be the best advocates to talk to the operating side about putting money to work.

Recently, a lightbulb went off in my mind: I need to talk not only to the companies participating in actual investments abroad, but also to the people one step behind who are deploying the capital. I recently met with some of the leading purveyors of capital around the world and asked them why they were not there and what the problems were.

One problem I heard is that the U.S. Government is highly fragmented when working with these companies. They want to invest and want the U.S. Government involved to ensure we have “skin in the game,” so they are not left holding the bag if a foreign government changes the terms of a project. They know that I, or any individual, might not be here in five years, and their projects have long-term horizons.

That is a very fair point. I am fortunate that the President has not only asked me to serve as Deputy Secretary of State, but also as chairman of the board of the Development Finance Corporation (DFC) and the Millennium Challenge Corporation, which can help facilitate initial assistance programs geared toward allowing private sector investments. We also have the EXIM Bank. However, navigating between the State Department, the Commerce Department, EXIM, and the DFC can be confusing. We need to become more of a one-stop shop, and I will work toward that goal.

For now, I want you all to know that at the State Department, this is the very heartland of my job. I hope you can feel the passion I bring to this effort, because whether my tenure is successful will be measured by the deals discussed today and the many more that are yet to come.

Let me give a couple of concrete examples. One region that has been significantly underinvested in is the Pacific Islands. Along with Admiral Paparo from our Pacific Command in Honolulu, I convened a business summit and investment roundtable last February to bring the leaders of Pacific Island nations together. Papua New Guinea has immense opportunities for the American private sector.

For all these Pacific islands, I asked them to identify the sectors they are interested in, and we will make sure to bring representatives of those sectors. I also want to ensure we bring the people with the capital. If there are particular countries, we are happy to promote these kinds of forums to bring the private sector together, because they are looking to deploy capital around the world. My job, and ours collectively from the U.S. Government side, is to enhance that communication.

I am incredibly thrilled to be at this event once again. Let us ensure this remains an ongoing conversation. I want to underscore my personal commitment, as well as our administration’s commitment, to making this an unprecedented golden era for the American private sector around the world. Everyone in this room has an important part to play in making that promise come true. Thank you very much.

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