Marshall spent the next half-century refining this process into what we now call net assessments: comparative evaluations that go beyond counting ships and dollars to examine doctrine, organisation, culture, and politics. Most importantly, net assessments search for opportunities, identifying how asymmetries can be exploited to strengthen one’s competitive position. In more recent years the UK and Japan have adopted net assessments to help them diagnose an increasingly complex world, and Australia has established an office in our Department of Defence.
Yet Australia’s security, and its need for strategic analysis, goes well beyond military issues. As I argue in my new Lowy Policy Brief, Net Assessments for Australia, the Albanese government should also set up Directorates of Net Assessment in DFAT, Home Affairs, Treasury and PM&C. We know these departments excel at tactics, but our era demands they function as strategic leaders as well.
A Directorate of Net Assessment would enable DFAT to meet Foreign Minister Penny Wong’s pledge that Australia will “contribute to the regional balance of power that keeps the peace by shaping the region we want”. That task requires a finely grained understanding of the different balances of power that matter most – across distinct geographic and policy domains – and deep dives into specific strategic problems and how to overcome them. DFAT should seize this opportunity to become the nation’s strategic brains trust for an age of competition.
So too, Home Affairs has an essential role with its responsibility for non-kinetic threats to national security. And Treasury, as the 2024 Independent Intelligence Review found, needs to pursue “analysis of [the] long-term implications of Australia’s economic security decisions … horizon-scanning … [and] scenario planning”. Indeed, all departments would benefit from more such futures work, and this is best done through the discipline and problem-solving orientation of net assessments.
Such an approach fits Australia’s national character. We excel when focused on solving real problems rather than writing elegant strategies. Net assessments would help Ministers understand the choices before them and use daily decisions – on capabilities, personnel, funding, partnerships – to strengthen Australia’s competitive position. After decades of producing endless White Papers that now gather dust on our shelves, what Ministers need isn’t another long framework document but a clear diagnosis of our core strategic problems and real options to address them.
DFAT, Home Affairs, Treasury and PM&C already have the expertise, they just need permission to use it differently. We should give officials the tools to diagnose why China succeeds in some Pacific nations but fails in others, what AI means for cybersecurity, and how to achieve deterrence without destabilisation. Let them identify which Australian strengths create genuine competitive advantages. The ministers who receive such analysis won’t need another White Paper because they’ll have something better: a playbook for winning the strategic competitions that matter.
Andrew Carr’s Lowy Institute Policy Brief, Net Assessments for Australia, was published this week.