Top DoD Management Challenges

COUNTERING STRATEGIC CHALLENGES: NORTH KOREA, RUSSIA, CHINA, IRAN, AND TRANSNATIONAL TERRORISMRepublic of Korea Marine Amphibious Assault Vehicleseject smoke clouds during a Korean Marine ExchangeProgram exercise. (U.S. Marine Corps photo)According to the 2017 Defense Posture Statement,the DoD has developed a comprehensive set ofalliance capabilities to deter and counter theNorth Korean threat. The DoD maintains 80,000military personnel and a significant ground, air,and sea force capability in and around SouthKorea and Japan. It conducts regular joint militaryexercises with South Korea and Japan, with whomthe United States has security treaty commitments.The United States and South Korea have alsoagreed to deploy a Terminal High-Altitude AreaDefense missile capability to South Korea to defendSouth Korea and alliance forces from North Korea’sballistic missile threats.Speaking in Seoul on August 14, 2017, GeneralDunford stated that the military directly supportsU.S. diplomatic and economic efforts to resolve thecrisis with North Korea. He also stated that theDoD provides viable military options in the eventthat deterrence fails. However, General Dunfordnoted that armed conflict with North Korea wouldlead to a level of casualties not experienced sinceWorld War II. Similarly, Secretary of DefenseMattis has said that a military confrontation withNorth Korea would be “catastrophic.”The United States continues to reach out toChina, North Korea’s closest ally and tradingpartner, to convince China to pressure NorthKorea to halt its nuclear program. In 2017,the United States imposed additional economicsanctions on North Korea, and China agreed toUnited Nations’ limitations on future imports fromNorth Korea. However, North Korea has rejectedformal negotiations and expressed no intention tode‑nuclearize or stop developing ballistic missiles.North Korean leader Kim Jong-un reportedlybelieves that maintaining North Korea’s nuclearand ballistic missile capability is necessary to deterthe threat that North Korea’s perceived enemies,principally the United States, pose to his regime.Given the level of concern over North Korea’sstatements and actions, the DoD faces severalchallenges: maintaining a high level of militaryreadiness and deterrence; supporting the U.S. andallied strategy to seek diplomatic negotiationswhile imposing economic sanctions; and, ifrequired, executing a military option.RUSSIAIn June 2017, Secretary of Defense Mattis testifiedabout a resurgent and more aggressive Russia,which objects to key aspects of the post-Cold Warinternational order by taking multiple actionsagainst other countries, including challenging thesovereignty of nations on its borders. In recentyears, Russia has clashed with the United Statesover the 2014 revolution in Ukraine that ousted itspro-Russian president, the subsequent revolt of thepresident’s supporters and Russia’s interventionin Eastern Ukraine and seizure of Crimea. Russiahas also opposed the expansion of the NorthAtlantic Treaty Organization (NATO) into the Balticcountries of Estonia, Latvia, and Lithuania, whichbrought U.S. and other NATO allies’ military forcesto Russia’s border.In the Syrian civil war, Russia intervened on behalfof the Government of Syria. As a result, U.S. forcesconducting operations to defeat the Islamic Stateof Iraq and Syria (ISIS) in Syria operate in closeproximity to Russian military forces. The DefenseIntelligence Agency has reported that Russia’smilitary intervention in Syria changed the dynamicof the conflict, bolstered the government of Syria,and ensured that resolution to the conflict isimpossible without Russia’s agreement.3 DoD OIG FY 2018 Summary of Management and Performance Challenges Facing the DoD

COUNTERING STRATEGIC CHALLENGES: NORTH KOREA, RUSSIA, CHINA, IRAN, AND TRANSNATIONAL TERRORISMIn addition to having a formidable nuclear force,Russia has significantly advanced its conventionaland unconventional military capabilities. TheRussian military has enhanced its ground, sea, andair strategic and operational forces; deployed anasymmetric, unconventional warfare capability;and expanded its covert use of cyber andinformation operations.In Europe, the United States and its NATO allieshave reinforced their military capabilities. Throughthe European Deterrence (formerly Reassurance)Initiative, announced in June 2014, the DoD hassought to build its European allies and partners’capability to enable a quicker and more robustresponse to support NATO’s common defense. TheEuropean Deterrence Initiative augmented thepresence of U.S. forces in Eastern Europe throughincreased unit rotations and pre-positionedmateriel in strategic locations. In addition, otherNATO countries have deployed military units tothe Baltic countries and to Romania, Poland, andBulgaria. NATO is also enhancing its ResponseForce into a flexible and mobile, 40,000-troopjoint force composed of land, sea, air, and specialoperations units, and is conducting increasedtraining and joint exercises with partner countries’security forces. The total U.S. investment in theEuropean Deterrence Initiative has quadrupledover the past year, from 789 million in FY 2016 to 3.4 billion for FY 2017.However, challenges remain to the rapiddeployment of U.S. and other NATO forces inresponse to potential Russian aggression. Forexample, a recently released DoD OIG evaluationnoted that, according to senior U.S. EuropeanCommand officials, obstacles to a timely militaryground response by U.S. and other NATO forces to aRussian military attack include a lack of compatibleinfrastructure and movement agreements betweenNATO countries and experience controllingmilitary convoys.In Syria, the United States and Russia haveestablished communication mechanisms tode‑conflict operations and avoid conflict. OnJune 19, 2017, after U.S. forces shot down a Syrianfighter aircraft, the Russian defense ministry issueda statement that “all kinds of airborne vehicles,including aircraft and UAVs of the internationalcoalition detected to the west of the EuphratesRiver will be tracked by the Russian SAM [surfaceto-air missiles] systems as air targets.” Despite theheightened tension resulting from these actions theUnited States and Russia have sought to deconflictair zones in Syria. To further reduce the potentialfor military confrontation, in agreement with theUnited States and other concerned countries, Russiahas established and is monitoring de-escalationzones in southern Syria.U.S. Marine Corps KC-130 J Hercules aircraft with Marine Aerial Refueler Transport Squadrons. (U.S. Marine Corps photo)DoD OIG FY 2018 Summary of Management and Performance Challenges Facing the DoD 4

COUNTERING STRATEGIC CHALLENGES: NORTH KOREA, RUSSIA, CHINA, IRAN, AND TRANSNATIONAL TERRORISMA U.S. Navy Boatswain’s Mate directs an MH-60S Seahawk helicopter to the flight deck aboard the Littoral Combat ShipUSS Coronado. (U.S. Navy photo)Strategically, Russia’s actions indicate that it hasestablished an enduring presence in Syria tomaintain its warm-water naval port and to projectpower regionally. As a United Nations SecurityCouncil member, Russia also influences a widerange of other international issues, including thefight against terrorism. The potential exists formilitary confrontation in these areas; the DoDneeds to maintain an effective military deterrencecapability and dialogue with the Russian military.CHINAAlready a nuclear weapons power, China continuesto further build its conventional military capacity.In recent years, China’s military has improvedits offensive and defensive capabilities in theareas of ballistic and cruise missiles, counterspace and offensive cyber capabilities, electronicwarfare systems, surface and submarine warfarecapabilities, and its air force. In 2017, Chinesemilitary expenditures increased another 7 percent.In recent years, China has undertaken aggressiveexpansionist activities in the Asia-Pacific region.In the South China Sea, China has increasedtensions with its regional neighbors and withthe United States by creating artificial islandsin maritime territory claimed by multipleneighboring countries. China is militarizing theseartificial islands, using them to gain control overthe South China Sea’s air and sea lanes, as wellas its extensive underwater natural resources.The Chinese government refuses to accept aninternational arbitration tribunal ruling that Chinadoes not have the maritime territorial sovereigntyit claims over the South China Sea.In the East China Sea, China declared an air‑defenseidentification zone in 2013 in which it requiresthe identification, location, and control of foreignaircraft over what it considers its sovereignairspace or water. China’s self-declared air-defenseidentification zone extends over the Japaneseowned Senkaku Islands. Neither Japan nor theUnites States recognize China’s claims. In addition,the Japanese government has expressed concernover China’s almost daily intrusions into Japaneseair space in 2017.In response to China’s actions, the DoD continuesto fly, sail, and operate throughout the SouthChina and East China Seas, in accordance withinternational law, to demonstrate its commitmentto freedom of navigation and overflight.Furthermore, the DoD is working to enhance5 DoD OIG FY 2018 Summary of Management and Performance Challenges Facing the DoD

COUNTERING STRATEGIC CHALLENGES: NORTH KOREA, RUSSIA, CHINA, IRAN, AND TRANSNATIONAL TERRORISMthe alliance relationships the United Stateshas with countries in the Asia-Pacific region insupport of regional stability and U.S. strategicinterests. In 2014, the United States signed theEnhanced Defense Cooperation Agreement withthe Philippines, which increased U.S. accessto Philippine military bases, and provided fordonations of U.S. maritime vessels to the Philippinemilitary and joint training exercises. In 2015,the United States announced the Southeast AsiaMaritime Security Initiative, a 5-year, 425 millionproject to enhance partner capabilities andcollaboration among Southeast Asia countries,including the Philippines, Vietnam, Indonesiaand Malaysia.To expand its global maritime influence, Chinaestablished its first overseas military basein Djibouti in the Horn of Africa. Djibouti isstrategically located on the Strait of Bab el-Mandebbetween the Red Sea and the Gulf of Aden whereapproximately 20,000 ships and 20 percent ofglobal exports traverse yearly. China is buildinga facility that will house up to 10,000 Chinesemilitary personnel and provide a logisticsbase for its navy.U.S. intelligence analysts assert that this is a criticalperiod in which China plans to test U.S. militaryand political resolve. The United States and itsallies will need to have a clear response to protectU.S. interests.IRANIran continues to pose a significant global securitythreat to the United States given its regional powerambitions and potential development of a nuclearweapons capability. For example, according to the2017 Defense Posture Statement, Iran supportsthe Assad regime in Syria, backs the militant Shi’aterrorist organization Hezbollah in Syria andLebanon, and contributes to disorder in Yemen.In July 2017, Michael Pompeo, the Director of theCentral Intelligence Agency, described Iran’s useof proxy forces—Hezbollah in Lebanon and Syriaand Shiite militias in Syria and Iraq—to establishU.S. Marine Corps joint terminal attack controllerscommunicate with an MV-22 Osprey during takeoff.(U.S. Marine Corps photo)Iranian dominance along the newly forming ShiiteCrescent stretching from Beirut to Tehran. Iran’sally Hezbollah claims it is “close to achieving thisgoal.” These actions directly threaten Israel andother U.S. allies in the Middle East.In 2015, Iran, the P5 1 (China, France, Russia, theUnited Kingdom, the United States, and Germany),and the European Union agreed to the JointComprehensive Plan of Action, which seeks toensure that Iran’s nuclear program is exclusivelypeaceful in exchange for the United States, theEuropean Union, and the United Nations liftingeconomic sanctions. Under U.S. law, the StateDepartment must notify Congress every 90 daysof Iran’s compliance with the Joint ComprehensivePlan of Action.Because of Iran’s continued testing of ballisticmissiles and direction of hostile actions in theregion, Congress passed legislation in 2017imposing new economic sanctions against Iran.The State Department also stated Iran hasexpanded activities that undermine stability,security, and prosperity in the Middle East, such assupporting the terrorist groups Hezbollah, Hamas,and Palestinian Islamic Jihad. Iran also supportsthe government of Syrian President BasharDoD OIG FY 2018 Summary of Management and Performance Challenges Facing the DoD 6

COUNTERING STRATEGIC CHALLENGES: NORTH KOREA, RUSSIA, CHINA, IRAN, AND TRANSNATIONAL TERRORISMal‑Assad, despite his atrocities against his ownpeople. In Yemen, Iran has provided the Houthirebels with advanced weaponry, which the rebelshave used to attack Saudi Arabia, that threatensfreedom of navigation in the Red Sea. Iran is alsotesting and developing ballistic missiles, in defianceof U.N. Security Council Resolutions.In response to the new economic sanctions,President Hassan Rouhani of Iran warned that itcould start its nuclear program “within hours.”Iran’s parliament also responded by votingoverwhelmingly in favor of legislation to increasethe budget for the country’s ballistic missileprogram and the Revolutionary Guard’s externaloperations arm, the Quds Force.The United States is working with its allies in theMiddle East to contain Iranian aggression andinfluence. In May 2017, the State Departmentannounced a large arms package— 110 billion ofdefense equipment and services—for Saudi Arabiaand other U.S. allies in the Gulf region to supporttheir long-term security “in the face of the malignIranian influence and Iranian-related threats.” TheState Department re-designated Iran 2 months lateras a State Sponsor of Terrorism, a designation it hasheld since 1984.Meanwhile, Iran has taken significant stepsto increase its influence in Iraq. Speaking atthe Aspen Security Forum in July 2017, Iraq’sAmbassador to the United States praised Iran’sprovision of critical supplies in the fight againstISIS. He stated that Iran has enhanced its influencetoday in Iraq because other Arab nations weremissing when Iraq needed their support againstISIS. Recently, however, Saudi Arabia has initiatedtalks with Iraq pursuant to an economic agreementto help reconstruct the country post-ISIS.Notwithstanding its current support of Iraq todefeat ISIS, Iranian influence in Iraq could makeit more difficult for Iraq to assert its sovereigntyand maintain its independence as it attemptsto reconcile competing sectarian interests andestablish stable governance. Currently, Iranian-A U.S. Marine Corps humvee enters the beach to board aLanding Craft Utility 1651 in order to transfer personneland equipment. (U.S. Navy photo)backed Shia Popular Mobilization Forces ofconsiderable size and reach operate in Iraq tosupport the anti-ISIS campaign. The Government ofIraq has officially incorporated some of these ShiaPopular Mobilization Forces into the Iraqi SecurityForces. Iran has warned the Iraqi governmentnot to weaken these Iranian-backed Shia forces,which, so far, have avoided conflict with U.Smilitary personnel.TRANSNATIONAL TERRORISMCountering transnational terrorism remains a keyU.S. national security challenge. Despite heightenedU.S., European, and other allies’ focus oncombatting terrorism following al-Qaeda’s attack onthe United States on September 11, 2001, terroristorganizations have proliferated throughout theworld and present a global threat.These terrorist organizations include Boko Haramin Nigeria and Chad; al-Shabab in Somalia; alQaeda in Syria, Yemen, and Afghanistan; the IslamicMaghreb in North Africa; and ISIS in Iraq, Syria,Libya, Afghanistan, Egypt, and the Philippines.Tens of thousands of young Muslims have migratedacross nation-state borders to join the terroristorganizations, especially into Syria and Iraq, withan estimated 3,000 – 5,000 from Western Europeand the United States alone.These terrorist organizations continue to pose asignificant destabilizing force. ISIS, in particularand those it has inspired, has carried out multipleterrorist attacks in Europe and in the United States.7 DoD OIG FY 2018 Summary of Management and Performance Challenges Facing the DoD

COUNTERING STRATEGIC CHALLENGES: NORTH KOREA, RUSSIA, CHINA, IRAN, AND TRANSNATIONAL TERRORISMISIS recently directed its adherents to attacktourists anywhere in the world using a SUV ortruck as its principal weapon.While each terrorist organization has a uniquehistory, procedures, and motivation based on localgrievances, the common thread linking them isadherence to interpretations of extremist versionsof Islam that justify violence.However, the so-called Islamic Caliphate establishedby ISIS in Iraq and Syria is on the verge of defeat.In June 2017, after a 9-month battle, Iraqi SecurityForces, backed by U.S. and Coalition air and specialoperations forces, liberated Mosul, Iraq’s secondlargest city. In August 2017, Kurdish and Arabmilitary forces, supported by U.S. and Coalition airand special operations forces, entered Raqqa, Syria,the “capital” of the so-called Islamic Caliphate.However, the military success against ISIS inSyria and Iraq is driving some of the survivingISIS fighters into other ungoverned spaces aroundthe world, fueling the spread of transnationalterrorism. The prospect of radicalized foreignfighters returning to their home countries tofurther spread ISIS influence and stage attacksposes a significant challenge to the United Statesand its allies.Special Presidential Envoy for the Global Coalitionto Counter ISIS, Ambassador Brett McGurk, statedthat the long-term key to preempting ISIS andother terrorist attacks after the military phase ofdefeating the so-called Islamic Caliphate in Iraqand Syria is to share information among the U.S.coalition of 69 countries. He noted that this willrequire increased emphasis on law enforcement andintelligence gathering to build a global database ofknown terrorists.In addition to Iraq and Syria, the DoD is conductingmilitary operations with allies against terroristgroups throughout the world, especially in severalfragile or failed states. For example, GeneralRaymond A. Thomas III, Commander, U.S. SpecialOperations Command, recently stated that forcesunder his command, along with local proxies,eliminated approximately 1,500 ISIS terroristsin Libya after ISIS established a presence therein 2015. He said that his teams operate globallyagainst terrorists, anywhere a significant threatexists. In addition, U.S. forces are providingcritical support and assistance to the PhilippineSecurity Forces as they combat ISIS in the southernregion of Mindanao.The DoD is also undertaking increased securitycooperation initiatives in the Middle East andin other regions to enhance our alliances andbuild our partners’ military capability to defendthemselves against Islamist extremist terroristattacks. For example, on May 15, 2017, the DoDannounced a new bilateral defense cooperationagreement with the United Arab Emirates ona range of shared regional security threats,including the ongoing Iranian, Al-Qaeda, or ISISbacked instability in Yemen and Libya, and thecampaign to defeat ISIS in Iraq and Syria. The StateDepartment also announced that the United Statesand Saudi Arabia are embarking on a numberof new initiatives “to counter violent extremistmessaging,” which will include opening a newGlobal Center for Combatting Extremist Ideology.A recent DoD OIG evaluation reported that DoDand State Department global efforts to buildpartner-country counterterrorism capacity throughtraining and equipping programs have reachedover 70 nations through the congressionally fundedSection 2282 program.In summary, transnational terrorism presents along-term global threat. International institutionsand governments must work to resolve theunderlying conditions that led to the rise andcontinued propagation of violent extremism.These conditions result from the collapse of stateeconomies and effective governance, sectarianand religious civil wars, and political and socialalienation among the young in the countries inwhich the ideology has taken root.DoD OIG FY 2018 Summary of Management and Performance Challenges Facing the DoD 8

ADDRESSING CHALLENGES IN OVERSEAS CONTINGENCY OPERATIONS IN IRAQ/SYRIA AND AFGHANISTANIraqi federal police load artillery in support of the fight against ISIS near Hawijah, Iraq. (U.S. Army photo)9 DoD OIG FY 2018 Summary of Management and Performance Challenges Facing the DoD

ADDRESSING CHALLENGES IN OVERSEAS CONTINGENCY OPERATIONS IN IRAQ/SYRIA AND AFGHANISTANChallenge 2: Addressing Challengesin Overseas Contingency Operationsin Iraq, Syria, and AfghanistanThe U.S. Government is engaged in two overseas contingency operations:(1) Operation Inherent Resolve (the effort to degrade and defeat the IslamicState of Iraq and the Levant [ISIS] in Iraq a

Dec 01, 2017 · weapons and ballistic missile technologies, and its role in their proliferation, presents a growing strategic threat to U.S. forces in the region and to the U.S. mainland, as well as to North Korea’s neighbors, South Korea and Japan. The United States is pressuring North Korea to