Gary Becker Presentation Dec 0704

The Role of Economics in the Department of Homeland Security Gary Becker, Senior Economist Office of the Private Sector Department of Homeland Security December 7, 2004

Department of Homeland Security • Created in 2003 in response to the events of 9/11, DHS is the consolidation of 22 previously disparate agencies into one department • A more secure homeland through better coordination • Committed to protecting rights of citizens and enhancing public services

2

Major Divisions • Border and Transportation Security (BTS) – e.g., Transportation Security Administration, Customs and Border Protection, Immigration and Customs Enforcement

• Emergency Preparedness and Response (EPR) – Preparation and response for disasters – e.g., Federal Emergency Management Agency

• Science and Technology (S&T) – Lead DHS efforts in R&D

• Information Analysis and Infrastructure Protection (IAIP) – Identify and assess threats, issue warnings

• Management – Budget, personnel 3

Other Divisions •

Coast Guard –

•

Maritime protection

Secret Service –

•

Protection of the President and other government leaders

Citizenship and Immigration Services (CIS) –

•

Paperwork functions for immigration services and American citizenship

Office of the Private Sector –

Create a better government and foster strategic communications with the private sector

For complete detail and organization chart visit the DHS website: www.dhs.gov 4

Office of the Private Sector • Create and foster communications with private sector • Advise the Secretary on the impact of the DHS policies, regulations, processes, and actions on the private sector • Interface with other agencies with homeland security functions and assess their potential impacts on the private sector • Create and manage private sector advisory councils • Work with research centers • Promote and develop public-private partnerships • Promote and develop private sector “best practices” to secure critical infrastructure 5

Economists in the Private Sector Office • Promoting the more thorough examination of economic issues throughout DHS agencies • Ensuring that both regulatory and non-regulatory solutions are considered • Ensuring that the most cost-effective alternative is considered and implemented if possible • Considering the impacts to small businesses • Thinking beyond traditional government solutions—the success story in Nogales, Arizona 6

What role does economics play in DHS? • Regulations – Evaluate proposed and final rules to fulfill our obligations under various laws and Executive Orders

• Policies – Evaluate current policies and processes (e.g., security directives, non-immigrant visas, border crossing procedures)

• Creating a better government – Demonstrate to the private sector why partnering with DHS is beneficial (e.g., Free and Secure Trade program, FAST Lane)

• Proactively search for ways to do things more efficiently and effectively – Hold stakeholder conferences, perform surveys and contractor studies to find problems and develop workable nonregulatory and regulatory solutions 7

Samples of our Continuing Work • Regulations – Costs and benefits of Advance Passenger Information Systems

• US-VISIT – Assessing the range of economic impacts of its nationwide implementation

• Border wait times – Can we enhance security at the borders while reducing crossing times?

• Non-immigrant visa policies – What impacts are our visa policies having on the economy? Can we improve our procedures to reduce time and variance in the visa application process?

8

Conclusion • The Private Sector office is a unique office in all of government. Our office was established to liaison with industry and provide the Secretary of DHS with advice to address the concerns of America’s business sector.

• On behalf of the Private Sector Office and Al MartinezFonts, we are here to work with you. My name is Gary Becker at gary.becker@dhs.gov My phone number is 202-282-9013.

• The whole staff of PSO is about 15 people and includes three economists. Call or e-mail me. I challenge you to help us help you.

9