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february 2002

Research, articles, news mentions, and blogs from the HBS faculty. Submit a story

Q&A: Wrestling with the Unthinkable

L. Paul Bremer and the War on Terrorism

In June 2000, when the National Commission on Terrorism released its report, the commission’s chairman, L. Paul (“Jerry”) Bremer III (MBA ’66), issued a warning. “There’s a chance terrorists will try to stage a catastrophic event in the United States in the future,” Bremer stated. “Thousands of casualties,” he said, would be the likely result.

Counterterrorism and international affairs have been central elements of Bremer’s career. Entering the diplomatic service immediately after graduating from HBS, he embarked on several tours of duty overseas as a political, economic, and commercial officer at U.S. embassies before becoming deputy ambassador to Norway from 1976 to 1979. He was selected in 1983 by President Reagan to be ambassador to the Netherlands, where he served until 1986 when Reagan appointed him ambassador-at-large for counterterrorism, making Bremer his top advisor on terrorism.

Bremer, who has also worked as a special or executive assistant to six secretaries of state, entered the private sector in 1989, becoming managing director of Kissinger Associates, a strategic consulting firm. In 2000, he moved to Marsh & McLennan to take charge of that firm’s political risk business; last October, he was named chairman and CEO of Marsh Crisis Consulting, a unit of Marsh & McLennan that provides a full range of services to corporate clients to help them avoid, plan for, and manage crises such as natural disasters, product recalls, and terrorism.

A Yale graduate and Connecticut native, Bremer serves on several boards, is a member of the Council on Foreign Relations, and is the founder and president of the Lincoln/Douglass Scholarship Foundation, a Washington, D.C.– based nonprofit that provides scholarships to inner-city youths. Married and the father of two grown children, he resides in Chevy Chase, Maryland.

What are the key nonmilitary components of fighting terrorism?

Above all else, the key is good intelligence. The objective is to stop terrorists from attacking in the first place, and that means you need to be aware of their plans before they carry them out. You need an informant — and that probably means you have to know a terrorist.

I’ve been involved in foreign policy for more than 35 years. There is no field more dependent on good intelligence than counterterrorism, and I’ve never seen an area where intelligence was more difficult to get. Our intelligence community has become too risk averse, and we’ve erected legal barriers that prevent us from dealing with the very kind of unsavory individuals who have access to the sort of information we need. Those shortcomings must be
corrected.


Is America hampered in this fight by its concern for civil rights at home or creating civilian casualties overseas?

The President has to find an appropriate balance between taking steps that are effective and respecting our civil liberties. Abraham Lincoln posed the central question in an 1863 speech: Must government either be so strong that it offends our civil liberties, or be so weak that it can’t protect our security? As in the fight against any kind of organized crime, we must find the right balance.

The National Commission on Terrorism that I chaired found that the use of military force in responding to terrorism over the last decade has been episodic and not very well planned. In the wake of the embassy bombings in Africa, for example, our responses were so timid that they made us look weak. That said, the use of military force has to be handled very carefully, including keeping civilian casualties to a minimum, commensurate with military goals.

Can the U.S. economy grow if the war on terrorism is prolonged and inconclusive?

Because the American economy rides on the back of the American consumer, the fundamental issue is whether we can restore consumer confidence, to get people back to spending money now for their future. If terrorism continues in America, it will take longer for consumer confidence to come back and will delay the return to a robust economic cycle.

In terms of what economic decisions ordinary citizens can make to support the country, the most important is what the President has said: People should go about their business and not give in to the fear that terrorism attempts to engender in us.

Are imprecise government alerts regarding potential terrorist attacks constructive?

Government has an exquisite problem here. I’ve sat in that chair, where there’s a flood of intelligence coming in, and you have to make a judgment. If government receives credible intelligence of a possible attack and says nothing and an attack occurs, then its credibility suffers. Same thing if government officials issue warnings and nothing happens. So they must have calculated that the risk of keeping silent carries more potential negatives than speaking out. That’s their dilemma.

In these times, should American business leaders sometimes put aside pragmatic decisions for “patriotic” ones, such as not laying off workers?

We are at war. The more American citizens and companies recognize that reality and factor it into their decisions and their daily lives, the better. This is going to be a very long, drawn-out campaign; the Afghan part is just the beginning of the beginning. To the extent that decision-makers can say to themselves, “We are, after all, at war,” and consider the consequences of what they’re doing in that regard, that’s good. They ought to try to put their decisions in that broader framework.

At Marsh Crisis Consulting, what are you telling clients?

September 11 was a wake-up call for the United States, in terms of the security threats we face. But it should also be a wake-up call to businesses about what can happen when a crisis hits and they’re not ready.

A crisis could be triggered by terrorism but also by an earthquake, a product recall, or anything that constitutes a serious risk to a company’s reputation, brand, or financial performance. Surveys show that a corporation will experience a crisis once every four to five years. That means that every CEO will likely face a crisis during his or her tenure. How they respond may be the most important thing they do during their entire tenure because the stock market and investors punish companies that do not handle crises well.

Terrorism is probably as old as civilization. Is it useful to demystify it?

What’s useful is to delegitimize it, to say that no matter what the cause is, nothing justifies the intentional killing of innocent civilians as a way to draw attention to a cause. Terrorism will always be there, just as crime will always be there. What you have to do is keep it down to as low a level as you can.

How do you cope with your own fears?

I don’t lose any sleep these days. I have been dealing with ugly issues going on twenty years now.

— Garry Emmons(send e-mail to the author)

february 2002

This article previously appeared in the following issue:

february 2002 Issue Cover

  • Web Exclusive: Behind the Scenes with Karen Tumulty
  • The Big Aha
  • Redefining Success: Women & Work
  • Profile: Karen Tumulty Reports on America
  • Q&A: Wrestling with the Unthinkable
  • Update
  • Newsmakers
  • R&D
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Alumni News | Mara Aspinall

Ex-Genzyme Official to Lead Testing Firm

Former Genzyme Genetics president Mara Aspinall (MBA '87) has taken the helm of a new cancer diagnostics business, On-Q-ity Inc.


Past Issue | September 2008

Mara Aspinall

Mara Aspinall (MBA '87) talks about the promise of personalized medicine in a September 2008 Q&A.

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