The Post-American World
The world in which we live in is undergoing massive and rapid change that is transforming our world into global society. Within this new global society, economies all over the world are increasing the amounts of human capital, critical infrastructure and competitiveness of their regions. Regions from Asia to South America and Russia to Africa are experiencing social and economical change that has set their economies on a path that is reconstructing their agrarian society into an industrial one. However, along with this economic growth and development of these emerging economies come some economic challenges of this new age of the global society.
Fareed Zakaria’s book “The Post-American World” deals with the recent redistribution of influence over the global society and emergence of a new global power system. The political economy of the Untied States is one that is per occupied with issues that only have to deal with U.S. domestic policy. Issues such as terror attacks, illegal immigration, religion, healthcare and the U.S. financial crisis dominate the political arena. The world is adapting all around the U.S. and all it seems to be interested in is the number of illegals in New Mexico and what church the next potential political leader stance is with healthcare.
Fareed’s book shows the once centralized American ascendancy is being broken down as the rest of the world rises to take part in the global society. America once commanded unmatched power in the global society. Countries all over the world once educated themselves in all aspects of American culture from business to social. However now America is the one educating its workforce on the business and social cultures of Asia, The Middle East and South America. In order for America to retain its ascendancy in the global society it must be able to allocate power to other regions, establish alliances with emerging global powers and provide a sense of equality with these new members to the global society.
This kind of thinking can already be seen within American business. More and more business are expanding into emerging markets to increase corporate profits. As these business move they hire economist, human behavior experts, and international relations personal to help in the understanding of the new business environment. America business is allowing intermediate foreign corporations to manufacture their products within their regions. This act is providing partnerships and thus expressing a sense of equality towards the foreign business. This will result in an economy to scale by cost advantages of expansion. This will allow producers average cost to fall as output is increased to cover the increase in demand.
It is vital to America that it understands the need and wants of others in the global society. America must understand that the only thing that can lead to its downfall is it own exceptionalism. American government must understand that it is easier to work with other nations governments than it is to work alone in the global market if we look at history the rise of a nation is inevitably followed but the decline of the nation. This decline is the U.S. opportunity cost of not fully understanding the global business environment
America’s role is one that is changing the global market landscape. America’s role in the past was one of supreme authority, unmatched and unchallenged. However if American is going to stay competitive it is going to have to adapt to the new global society and understand that it must treat others like it wants to be treated.