It is apparent that the threat of global war has passed. Facing us now are dangers that were little understood even just a few years ago, but which have become increasingly clear as we look at the new world laid in front of us. The current security environment is one that holds four principal dangers: (1) weapons of mass destruction, (2) threats to democracy in the former communist world, (3) regional conflict and (4) economic insecurity. This report is the department of the Navy's response to these dangers and to the dramatic changes in our world - a response which we have reflected in our budget. Much work has already been done developing a new strategic vision and reorganizing headquarters staffs and assessment processes to focus on this strategy. There are four principal areas for the Department of the Navy to focus on; personnel, readiness, efficiency and technology. These will guide us as we ensure our naval forces have the right personnel, are right-sized and recapitalized for the future, and are ready to perform their missions. Two Navy-Marine Corps missions have now become especially salient. The first calls for the Navy and Marine Corps to be able to project military power from the sea to land, to deal with warfighting in regions of the world that are far from the United States. The second calls for the Navy-Marine Corps to be ever present overseas to demonstrate United States will and to perform a variety of functions short of warfare. These functions include crisis response deterrence of others' use of force, evacuation of non-combatants and the provision of humanitarian aid and protection. Near continuous forward presence best facilitates accomplishing these functions.


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