Monday, June 25, 2007

Capitalism: It's the U.S. Game

Azar Gat:
For all the criticism leveled against it, the United States -- and its alliance with Europe -- stands as the single most important hope for the future of liberal democracy. Despite its problems and weaknesses, the United States still commands a global position of strength and is likely to retain it even as the authoritarian capitalist powers grow. Not only are its GDP and productivity growth rate the highest in the developed world, but as an immigrant country with about one-fourth the population density of both the European Union and China and one-tenth of that of Japan and India, the United States still has considerable potential to grow -- both economically and in terms of population -- whereas those others are all experiencing aging and, ultimately, shrinking populations. China's economic growth rate is among the highest in the world, and given the country's huge population and still low levels of development, such growth harbors the most radical potential for change in global power relations. But even if China's superior growth rate persists and its GDP surpasses that of the United States by the 2020s, as is often forecast, China will still have just over one-third of the United States' wealth per capita and, hence, considerably less economic and military power. Closing that far more challenging gap with the developed world would take several more decades. Furthermore, GDP alone is known to be a poor measure of a country's power, and evoking it to celebrate China's ascendency is highly misleading. As it was during the twentieth century, the U.S. factor remains the greatest guarantee that liberal democracy will not be thrown on the defensive and relegated to a vulnerable position on the periphery of the international system.

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