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The United States, in active partnership with its allies, has fielded an initial layered integrated Ballistic Missile Defense System (BMDS). The United States has come a long way since President Ronald Reagan first delivered his challenge to the defense community 25 years ago—to develop anti-ballistic missile technologies to improve our national secu- rity and lessen our reliance on nuclear deterrence. Although the nature of the threat has changed substantially since he envisioned the Strategic Defense Initiative, the harsh reali-ties of today’s global security environment push the United States to field missile defenses as soon as possible. Ballistic missile technology and associated threats have proliferated in recent years. The continuing development of chemical, biological, and nuclear weapons poses consider-able danger, especially when paired with ballistic missiles. State and non-state actors could use WMD carried on bal-listic missiles to blackmail and intimidate the United States and our allies, by potentially holding hostage hundreds of thousands of people. Iran’s pursuit of ballistic missiles poses a grave, evolving threat to the United States, our al- lies, and friends. Meanwhile, the combination of its recent nuclear and long-range missile tests makes North Korea a real threat to international peace and security. executive Summary Ballistic missile defense is one of the most complex and challenging missions in the Department of Defense (DoD). A ballistic missile’s altitude, speed, and range leave a defender little time to react. To meet this challenge, the Missile Defense Agency (MDA) is developing a layered, integrated system capable of destroying a ballistic missile in each of three distinct phases of flight—boost, midcourse, and terminal. The system requires accurate missile identi-fication and tracking with advanced sensors; advanced in- terceptor missiles or directed energy weapons (e.g., lasers); and reliable Command and Control, Battle Management, and Communications (C2BMC) to integrate the system and direct the engagement. With the initial fielding of the BMDS in July 2006, the United States now has a limited defense against ballistic missile attack. This initial capability provides a defense against short- and medium-range ballistic missiles using PATRIOT Advanced Capability-3 (PAC-3) missiles and Aegis Ballistic Missile Defense (BMD) Standard Missile-3 (SM-3). The initial capability also enables engagement of intermediate-range and intercontinental ballistic missiles in the midcourse phase using Ground-Based Interceptors (GBIs). These layers are integrated through an advanced C2BMC network. MDA continues its strong research and development pro-gram to improve and upgrade existing capabilities. MDA continues to develop, test, and field an increasingly capable system of interceptors, sensors, and command and control systems to improve the depth, range, and reliability of our defenses. In 2008, MDA will work to broaden and deepen the initial capability by expanding our missile defense coop-eration with allies and friends. In addition we will add more networked, forward-deployed sensors and increasingly capable interceptors at sea and on land. The Agency’s mission—to develop and field an integrated, layered BMDS to defend the United States, its deployed forces, allies, and friends against all ranges of missiles in all phases of flight—is more relevant now than ever before. The years ahead will be demanding as MDA continues the tough task of developing, testing, and enhancing our world- wide ballistic missile defenses.