Statecraft: Strategies for a Changing World

Overview
Published in 2002, Statecraft sets out Margaret Thatcher's strategic framework for navigating the post–Cold War, post–9/11 world. Drawing on her experience, she advances a hard-headed but value-driven realism in which nation-states remain the primary actors, power matters, and moral purpose must be matched by capability. The book moves from principles to regional analyses to prescriptions for economic policy and security, consciously challenging fashionable multilateralism and technocratic governance.

First Principles of Statecraft
Thatcher argues that successful foreign policy begins with clear interests, coherent objectives, and credible means. Deterrence, not wishful diplomacy, preserves peace; firmness and consistency build trust among allies and respect among adversaries. She stresses the interplay of values and interests, contending that liberty, rule of law, and national sovereignty are not abstractions but practical assets that generate stability and prosperity. Institutions are instruments, not ends; if they cannot act effectively, coalitions of the willing should.

Europe and the Nation-State
A major theme is her critique of the European Union’s centralizing impulse. She warns that monetary union without political accountability misaligns incentives, creates rigidities, and risks crises. The push for a common foreign and security policy, in her view, dilutes responsibility and undermines NATO by duplicating structures without delivering usable power. Thatcher advocates a Europe of sovereign states trading freely, cooperating pragmatically, and competing dynamically, with the United Kingdom retaining its currency and freedom of action. She links the EU’s regulatory expansion to slower growth and democratic distance, arguing that legitimacy flows from national electorates, not supranational bureaucracies.

American Leadership, NATO, and the Use of Force
Thatcher affirms the indispensability of American leadership and the strategic value of the Anglo-American alliance. NATO remains the cornerstone of European security, but only if members sustain military capabilities and political will. She supports missile defense and treats the Cold War–era ABM constraints as obsolete. The lessons she distills from the Balkans and the Gulf are blunt: humanitarian intentions must be matched by decisive means; half-measures prolong conflict; and legitimacy derives as much from outcomes and moral clarity as from formal mandates when the latter are blocked by vetoes.

New Threats: Terrorism and Proliferation
Writing in the shadow of 9/11, she characterizes terrorism backed by rogue regimes and WMD proliferation as the defining dangers. Pre-emption can be necessary where deterrence fails, particularly against regimes like Saddam Hussein’s Iraq. She underscores the importance of intelligence, financial disruption of terror networks, alliance coordination, and homeland resilience. Islamist extremism is treated as an ideological challenge requiring both security responses and the steady assertion of liberal democratic confidence. She calls for steadiness toward the Middle East, support for Israel’s security, and clarity toward Iran and North Korea.

Russia, China, and the Wider World
Her approach to great powers is engagement from strength. Russia is seen as strategically significant but institutionally fragile, requiring firmness on energy leverage, arms control, and regional coercion. China’s rise demands economic engagement tempered by hedging, technology protection, and insistence on fair trade and security transparency. She is wary of global governance schemes that erode sovereignty or impose costly constraints without proven benefits, critiquing initiatives like expansive international legal regimes and prescriptive climate accords when they outpace innovation and consent.

Economics, Development, and Governance
Prosperity and power rest on free markets, property rights, and open trade. Thatcher links economic dynamism to strategic influence, urging the West to resist protectionism and regulatory overreach. Development policy should privilege trade access, institutional reform, and accountability over unconditional aid. Debt relief makes sense only with governance improvements that prevent moral hazard.

The Craft of Leadership
Throughout, Thatcher emphasizes disciplined decision-making: define ends before means, align rhetoric with action, manage alliances through candor, and maintain military credibility. Public opinion should be led, not followed, by explaining stakes and accepting responsibility. Statecraft is presented as a fusion of conviction, prudence, and readiness to act when delay would raise risks and costs.