The Presidency of Bill Clinton has been an important era in the history of the US. Clinton is best known of his economic policies; namely, Clintonomics which produced a huge surplus of the budget. In foreign policy, Clinton is best known of the Engagement and Enlargement which relied on building of a new world order based on both Democracy and Freemarket economy.

1. The Bill Clinton Era: The 1990s,
Globalization, and the New Millennium

2. Lecture Outline INTRODUCTION:
 The US during the Bush Years:
 Bush: Domestic Issues:
 The Election of 1992:
 The Presidency of William Jefferson Clinton (1993- 2001):
 Clinton’s Challenges:
 Clinton’s Domestic Issues:
 Clinton’s Foreign Policy: Engagement and Enlargement (“En-
En” Strategy):
 Peace Keeping Operations:
• Somalia (1993):
• Haiti (1994):
• Bosnia (Dayton Accords, 1995):
• Kosovo (1998/ 9):
 Foreign affairs
• Trade
• NATO
• Crime & Terrorism
• Scandals & Impeachment
 Conclusion

3. INTRODUCTION
 The end of the Cold: US Global power,
 Conflict in the Gulf: The Coalition War
(1991),
 Decisive Victory in the Gulf War,
 The Great Economic Recession (1991),
 1992 Elections: Bill Clinton, 42nd US
President,
 New Economic Approach, New Foreign
Policy,
 Great Ecnomic Boom.

4. The US
during the
Bush Years

5. President George H.W. Bush
Wealthy, World War II pilot,
congressman (Texas), U.S.
ambassador to the UNO, C.I.A.
Director,
Reagan’s vice president (1988),
41st US President (1989- 1992)
(Republican Party)

6. The Gulf War
 Saddam Hussein
invaded Kuwait in 1990.
 The attack shocked the
US— Dependent on the
region’s oil and other Arab
nations.
 The UN imposed sanctions
but the deadline passed.
 ON January 16, 1991, the
U.S.-led force attacked.
 Operation Desert Storm
was a successful,
conventional war.
 US: Create stability in
the Middle East

7.  End of the Cold War
 Fall of the Berlin
Wall
 START I-July 1991
 Invasion of Panama
(Operation Just
Cause)
 Somalia (Operation
Restore Hope)

8. Bush: Domestic Issues
 Bush Domestic Policy:
 Bush had to deal with deficits of over $220 Billion
from Ronald Reagan
 Bush believed that he had to “balance the budget”
 Democrats: We need tax raises!
 Republicans: We need cuts in government
spending!
 The end of the Cold War: Bush cut $52B in New
Defense Spending
 Unemployment rose in several states to over
7.8%
 Poverty rate rose to 14.2%
 Despite his foreign- policy successes, economic
troubles at home proved to be Bush’s political
downfall.

9. Bush raised taxes by
$133 B in 1992,
1988: “Read my Lips,
No New Taxes!!”
Bush sided with the
Democrats for new
taxes and increases in
Domestic Spending.

11. The Election of 1992:
•Pres. Bush: Unable to convince public
he can end recession, create jobs
•Third-party candidate H. Ross
Perot: deficit is biggest problem
Perot RAN on platform of balancing
federal budget and lowering national
debt.
•Gov. William Jefferson Clinton of
AR becomes president,
•“New” Democrat: Moving from
traditional Democratic positions
toward center
•He wants to create “new,” more
inclusive party.

12. The Election of 1992
George Bush lost to Arkansas
governor Bill Clinton

13. The Election of 1992
Bill Clinton
Ross Perot
George
H.W. Bush

14. The
Presidency
of William
Jefferson
Clinton
1993-2001

15. Clinton’s Challenges
Budget
deficits
Taxes’
Issue
Health care
reform
Welfare system
reform

16. Clintonomics: Economic policy
of Pr. Bill Clinton
 Clintonomics: Economic policies as well as
governmental philosophy;
 Clinton's economic approach:
Modernization of the federal government,
making it more enterprise- friendly while
dispensing greater authority to state and
local governments;
 The ultimate goal: Rendering the US
government smaller, less wasteful, and
more agile in light of a newly globalized era.
 Clintonomics: The focus could be
encapsulated by the following four points:

17. Establishing fiscal policy &
eliminating the budget deficit
Maintaining
low interest rates &
encouraging private-
sector investment
Eliminating
protectionist tariffs
Investing in human capital
through education &
research

19. Clinton’s Domestic IssuesBudget Deficit: Using Deflationary Financial Policy:
• He campaigned on promise to reduce taxes for the middle class.
However, Clinton raised taxes.
• Critics complained that the tax increase would hurt the
economy, but this did not happen,
• 1993: Deficit Reduction Act: Budget cuts and tax increases
(especially on wealthy Americans),
• 1993: Omnibus Budget Reconciliation Act:
• Increasing the top federal income tax rate to 36 %, for those
earning more than $115,000, and 39.6 % for income above
$250,000.
• Increasing the corporate income tax rate to 36% for
corporations with incomes over $10 million,
• Increasing taxes on the wealthy Americans by 1.2%,
• Raising fuel taxes,
• Cigarette tax: 39 % per pack,
• Small Business Job Protection Act (1996): Reducing taxes
for many small businesses.
• $255 billion in spending cuts over a five- year period.

20.  Budget surpluses (1998- 2001):
 The ratio of debt held by the public to GDP fell
from 47.8% in 1993 to 33.6% by 2000.
 Public debt held by the public was actually paid
down by $453 billion over the 1998- 2001 periods,
 Federal spending fell from 20.7% GDP in 1993 to
17.6% GDP in 2000,
 Tax revenues rose steadily from 17.0% GDP in
1993 to 20.0% GDP in 2000,
 Defense spending fell from 4.3% GDP in 1993 to
2.9% GDP by 2000: Defense spending fell from
$292B in 1993 to $266B by 1996,
 Robust economic growth still enabled a relative
increase in GDP: It grew from $248B in 1993 to
$343B in 2000;.
 Creating more than 22 millions of jobs for
Americans (1995- 2000).

22. For the 1st time in 30 years, the
government had a surplus which Clinton
used to pay down the nation’s debt.

23. Dow Jones Industrial Average, 1901-2010
Clinton’s deficit reduction coincided with a boom
in the technology industry; This led to the longest
sustained era of economic growth in U.S. history

24. “Contract with America”
 Many of Clinton’s policies
were in response to
Republican control of
Congress,
 1994: Republicans
took control of the
House of Representatives
for the 1st time since
1954,
 Newt Gingrich (Georgia
Congressman): Speaker
of the House

25. 1995: Government Shut
Down,
Gingrich: “Contract with
America”,
A balanced budget
amendment, tax cuts, welfare
reform, & tougher crime laws,
Clinton used the rivalry
with Republicans to win
re-election in 1996

26. Reforming the Healthcare system
 Clinton proposed a
plan to guarantee
affordable health
care for all
Americans,
 Republicans in
Congress defeated
Clinton’s “big
gov’t” health care
reform.

27. • Health care costs were rising and tens of millions of
Americans had little or no health insurance.
• Hillary Clinton headed a special task force which
proposed a government- sponsored program of
health care.
• The plan was defeated after months of debate.
 1993: Family and Medical Leave Act: It
guaranteed workers up to 12 weeks of unpaid
medical leave for certain medical and family reasons.
 1996: Health Insurance Portability and
Accountability Act: The bipartisan bill granted
people the right to keep their insurance plan if they
changed jobs,
 1996: Children's Health Insurance Program:
Senator Ted Kennedy introduced a bill to provide
health care coverage for children of the working
poor, to be financed via cigarette tax increase.

28. Reforming the Welfare System
 Bill Clinton’s 1992
presidential campaign:
“end welfare as we
have come to know it,”
 Clinton worked with
Republicans to reform
the welfare system
 The law put limits on
how long people could
receive benefits
 Allowing states to
decide how welfare
money would be spent.

29.  The Personal Responsibility and Work
Opportunity Reconciliation Act: It gave
states control of welfare, ending six decades
of federal government control of the
program,
 The Temporary Assistance for Needy
Families program (TANF): It changed the
financing and benefit structure of cash
assistance,
 Instead of welfare being funded in a more
open- ended manner, welfare was funded by
federal block grants to states,
 It created caps for how long and how much
aid a person could receive,
 Harsher punishments.

31. Clinton’s Foreign Policy
Truman
Doctrine
Carter
Doctrine
Reagan
Doctrine
Clinton:
Engagement &
Enlargement

32. Updating &
restructuring
American military and
security capabilities
Elevating the role of
economics in
international affairs
Promoting democracy
abroad

33. Clinton’s Foreign Policy

34.  Francis Fukuyama: The defeat of
communism had resulted in an
overwhelming victory of liberal
democracy and Western
capitalism,
 The American model had won the
struggle of history,
 The role of the US: To assist the
continuous advance of liberal
democracy.
 ‘From Containment to

35. The Engagement and
Enlargement Concept
Democratic
Enlargement:
Clinton’s aim to make
the new grand
strategy for American
foreign policy,

36. The National Security Strategy
National Security
Strategy
Strengthening the
world community
with major market
democracies
Fostering and
consolidating new
democracies and
market economies
Countering
aggression and
supporting
liberalization of
states hostile to
democracy and new
markets
Pursuing
humanitarian
agenda: Helping
democracy and
market economics
take root in regions
of greatest
humanitarian
concern

37.  Foreign policy objectives: The National Security
Strategy of Engagement and Enlargement, July
1994,
 The National Security Strategy: Three central
strategic goals:
 To sustain our security with military forces that are
ready to fight,
 To bolster America’s economic revitalization,
 To promote democracy abroad,
 The National Security Strategy: One aspect integrated
and furthered all other and furthered all other interests:
The promotion of democracy,
 The strategy advocated a targeted interest-based
approach that focused on aiding people already pushing
for democracy,
 It would mobilize international resources, take public
positions, integrate democracies into foreign markets,
advance human rights, help strengthen civil society,
market institutions, and good governance.

38. Democracy is the heart of
our mission. Now, as then,
our special role in the world
is to defend, enlarge, and
strengthen the community of
democratic nations… .
Democracy in short is the
one big thing that we must
defend, sustain, and promote
wherever possible even as
we deal with the many other
tasks that face us.

39.  The Clinton administration: Non-
democracies were a threat to
international peace,
 “In this century, virtually every
major act of international aggression
has been perpetrated by a regime
that repressed political rights.”
 The overthrow of democracy in Haiti
and the conflict in Bosnia: Threats to
international peace, and prescribed
the promotion of democracy as the
best way to neutralize such treats.

40.  Democracies were perceived to be
less likely to cause trouble for the US
by upsetting international stability
through war, or internal conflict,
which could lead to refugee crises:
…democracies are less likely than non-
democracies to go to war with each other,
to persecute their citizens, to unleash
tidal waves of refugees, to create
environmental catastrophes, or to engage
in terrorism. And democracies are more
likely to be reliable partners in trade and
diplomacy.

41. Democratic Domino Theory
 The successful promotion of democracy in key states: A
positive indicator which might lead to other states’
successful transition to democracy up the same road;
 The advancement of democracy and market economy:
Mutually reinforcing and directly tied to American national
security;
 ‘Market democracy’: Uniting liberal democracy and free
market capitalism;
 Democracy is beneficial for economic development and
prosperity, an open economic system with free trade is
powerful contributor to democratization;
 Both processes would make American national security
beneficial.
 Clinton’s foreign policy: “Pragmatic neo- Wilsonian”;
 Democracy promotion should be implemented with
determined pragmatism rather than absolute doctrines.
 Democratic Enlargement in security terms: The Clinton
administration securitized democracy promotion.

42.  As free states grew in number and strength, the
international order would become both more prosperous
and more secure,
 Clinton (1994): "We have put our economic
competitiveness at the heart of our foreign policy,"
 Primary U.S. strategic and economic interests,
 Economic advantage and national political interest do not
conflict but go hand in hand.
 Emerging democracies with a growing middle class eager
to consume American products, serves both America’s
need for markets and its desire for a world of peaceful
and prosperous liberal- minded nations.
 Relations with countries with bright economic futures;
such as, Mexico and South Korea, would be placed on the
front burner in Clinton’s administration; poor, blighted
nations, particularly in sub-Saharan Africa and Central
America, would ordinarily be given little attention.
 Clinton: The free trade president and the leading architect
of a new world economic order.

43. Transitional States

44. Clinton’s Foreign Policy
US
The North
American
Free Trade
Agreement
(NAFTA)
Asia-Pacific
Economic
Cooperation
(APEC)
Free Trade
Area of the
Americas
World Trade
Organization

45. Criticisms of NAFTA

46. Clinton’s Foreign Policy
Clinton’s presidency:
U.S. troops committed
peacekeeping efforts;
1993- 5: Somalia:
U.S. troops were sent to offer
food & restore order to civil
war ;
1995- 8: Bosnia &
Herzegovina: U.S. troops were
sent to stop ethnic cleansing
by Serbs;
1998- 9: Kosovo: U.S. troops
were sent to stop a civil war.

47. Somalia 1993

48.  Battle of
Mugadishu (Oct. 3,
1993):
 Black Hawk Down,
 US & UN Troos Vs.
Muhammed Farrah
Aidid Milishias,
 U.S.: 18 killed, 73
wounded, 1
captured,
 UN Retreat (Mar. 3,
1994),
 US Retreat (Mar.
25, 1994),

49. Haïti (1994)
Gen. Raoul Cédras
Pr. Jean- Bertrand
Aristid

50. Kosovo 1998-9

51. US Middle East Foreign Policy
 The Oslo Accords (1993) (Signed in Taba, 1995):
 The Oslo process, A peace process aimed at achieving
a peace treaty between Palestinians and Israelis,
 United Nations Security Council Resolutions
242 and 338,
 The "right of the Palestinian people to self-
determination",
 The Oslo process: Secret negotiations in Oslo,
 The recognition by the PLO of the State of Israel and
the recognition by Israel of the PLO as the
representative of the Palestinian people and as a
partner in negotiations,
 The Oslo Accords:
 Created Palestinian Authority with limited self-
governance of parts (The West Bank and Gaza Strip),
 Acknowledged the PLO as Israel's partner in
permanent- status negotiations.

53.  Oct. 26, 1994: The "Treaty of Peace
Between the State of Israel and the
Hashemite Kingdom of Jordan”: Wadi
Arabah Treaty.
 The signing ceremony took place at the
southern border crossing of Arabah:
 Kingdom of Jordan: The second Arab country
to sign a peace accord with Israel.
 Settling relations between the two countries,
 Adjusting land and water disputes,
 Providing for broad cooperation in tourism and
trade.
 Neither Jordan nor Israel would allow its
territory to become a staging ground for
military strikes by a third country.

55. Crime & Terrorism
Clinton presidency: US
experienced new waves of
violence;
Race riots hit
L. A. in 1992;
Four white police officers
were acquitted of police
brutality charges in the
Rodney King case

57. 1995: Gulf War
veteran Timothy
McVey detonated
a bomb that
destroyed a
federal building
in Oklahoma
City, killing 168
people.

59. 1999: Two
students
opened fire at
Columbine
High School
in Colorado,
killing 13
people &
wounding 23
others.

60.  Osama bin Laden
formed al-Qaeda &
began terrorist
attacks on the USA
 US Embassy
bombings: Dar
Essalam & Nairobi,
 Attack on USS Cole
(Yemen)
 Bombing of the
World Trade Center
in 1993.

63. Scandals & Impeachment
 Whitewater Scandal:
While still governor of
Arkansas, Clinton was
connected to an
improper land deal,
 Monica Lewinsky
Affair: Clinton was
accused of numerous
sexual affairs with
White House intern
Monica Lewinsky.

64.  When Clinton lied
under oath about
his relationship with
Monica Lewinsky,
Republicans in
Congress voted to
impeach him,
 Clinton became only
the 2nd president to
be impeached, but
he was not removed
from office.

65. Conclusion
 The Clinton years during the 1990s
represented new changes for the US:
•The Democratic Party took back the
presidency by becoming more
moderate,
•The economic boom of the 1990s
was based largely on technology
innovation that would crash in early
2000,
•The emergence of terrorism, at home
& abroad, presented new threats to
US security.