Vive Le Canada

US establishment concedes defeat
Date: Thursday, April 24 2008
Topic: Eye on Uncle Sam


From the US's "capital E" establishment journal, Foreign Affairs: "The United States' unipolar moment is over. International relations in the twenty-first century will be defined by nonpolarity. Power will be diffuse rather than concentrated, and the influence of nation-states will decline as that of nonstate actors increases. But this is not all bad news for the United States; Washington can still manage the transition and make the world a safer place."

The Age of Nonpolarity


What Will Follow U.S. Dominance



From Foreign Affairs, May/June 2008



Summary:  The United States' unipolar moment is over. International relations in the twenty-first century will be defined by nonpolarity. Power will be diffuse rather than concentrated, and the influence of nation-states will decline as that of nonstate actors increases. But this is not all bad news for the United States; Washington can still manage the transition and make the world a safer place.



RICHARD N. HAASS is President of the Council on Foreign Relations


The principal characteristic of twenty-first-century international relations is turning out to be nonpolarity: a world dominated not by one or two or even several states but rather by dozens of actors possessing and exercising various kinds of power. This represents a tectonic shift from the past.


The twentieth century started out distinctly multipolar. But after almost 50 years, two world wars, and many smaller conflicts, a bipolar system emerged. Then, with the end of the Cold War and the demise of the Soviet Union, bipolarity gave way to unipolarity -- an international system dominated by one power, in this case the United States. But today power is diffuse, and the onset of nonpolarity raises a number of important questions. How does nonpolarity differ from other forms of international order? How and why did it materialize? What are its likely consequences? And how should the United States respond?



NEWER WORLD ORDER


In contrast to multipolarity -- which involves several distinct poles or concentrations of power -- a nonpolar international system is characterized by numerous centers with meaningful power.


In a multipolar system, no power dominates, or the system will become unipolar. Nor do concentrations of power revolve around two positions, or the system will become bipolar. Multipolar systems can be cooperative, even assuming the form of a concert of powers, in which a few major powers work together on setting the rules of the game and disciplining those who violate them. They can also be more competitive, revolving around a balance of power, or conflictual, when the balance breaks down.


At first glance, the world today may appear to be multipolar. The major powers -- China, the European Union (EU), India, Japan, Russia, and the United States -- contain just over half the world's people and account for 75 percent of global GDP and 80 percent of global defense spending. Appearances, however, can be deceiving. Today's world differs in a fundamental way from one of classic multipolarity: there are many more power centers, and quite a few of these poles are not nation-states. Indeed, one of the cardinal features of the contemporary international system is that nation-states have lost their monopoly on power and in some domains their preeminence as well. States are being challenged from above, by regional and global organizations; from below, by militias; and from the side, by a variety of nongovernmental organizations (NGOs) and corporations. Power is now found in many hands and in many places.



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But the reality of American strength should not mask the relative decline of the United States' position in the world -- and with this relative decline in power an absolute decline in influence and independence. The U.S. share of global imports is already down to 15 percent. Although U.S. GDP accounts for over 25 percent of the world's total, this percentage is sure to decline over time given the actual and projected differential between the United States' growth rate and those of the Asian giants and many other countries, a large number of which are growing at more than two or three times the rate of the United States.


GDP growth is hardly the only indication of a move away from U.S. economic dominance. The rise of sovereign wealth funds -- in countries such as China, Kuwait, Russia, Saudi Arabia, and the United Arab Emirates -- is another. These government-controlled pools of wealth, mostly the result of oil and gas exports, now total some $3 trillion. They are growing at a projected rate of $1 trillion a year and are an increasingly important source of liquidity for U.S. firms. High energy prices, fueled mostly by the surge in Chinese and Indian demand, are here to stay for some time, meaning that the size and significance of these funds will continue to grow. Alternative stock exchanges are springing up and drawing away companies from the U.S. exchanges and even launching initial public offerings (IPOs). London, in particular, is competing with New York as the world's financial center and has already surpassed it in terms of the number of IPOs it hosts. The dollar has weakened against the euro and the British pound, and it is likely to decline in value relative to Asian currencies as well. A majority of the world's foreign exchange holdings are now in currencies other than the dollar, and a move to denominate oil in euros or a basket of currencies is possible, a step that would only leave the U.S. economy more vulnerable to inflation as well as currency crises.


U.S. primacy is also being challenged in other realms, such as military effectiveness and diplomacy. Measures of military spending are not the same as measures of military capacity. September 11 showed how a small investment by terrorists could cause extraordinary levels of human and physical damage. Many of the most costly pieces of modern weaponry are not particularly useful in modern conflicts in which traditional battlefields are replaced by urban combat zones. In such environments, large numbers of lightly armed soldiers can prove to be more than a match for smaller numbers of highly trained and better-armed U.S. troops.



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FAREWELL TO UNIPOLARITY


Charles Krauthammer was more correct than he realized when he wrote in these pages nearly two decades ago about what he termed "the unipolar moment." At the time, U.S. dominance was real. But it lasted for only 15 or 20 years. In historical terms, it was a moment. Traditional realist theory would have predicted the end of unipolarity and the dawn of a multipolar world. According to this line of reasoning, great powers, when they act as great powers are wont to do, stimulate competition from others that fear or resent them. Krauthammer, subscribing to just this theory, wrote, "No doubt, multipolarity will come in time. In perhaps another generation or so there will be great powers coequal with the United States, and the world will, in structure, resemble the pre-World War I era."



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But even if great-power rivals have not emerged, unipolarity has ended. Three explanations for its demise stand out. The first is historical. States develop; they get better at generating and piecing together the human, financial, and technological resources that lead to productivity and prosperity. The same holds for corporations and other organizations. The rise of these new powers cannot be stopped. The result is an ever larger number of actors able to exert influence regionally or globally.


A second cause is U.S. policy. To paraphrase Walt Kelly's Pogo, the post-World War II comic hero, we have met the explanation and it is us. By both what it has done and what it has failed to do, the United States has accelerated the emergence of alternative power centers in the world and has weakened its own position relative to them. U.S. energy policy (or the lack thereof) is a driving force behind the end of unipolarity. Since the first oil shocks of the 1970s, U.S. consumption of oil has grown by approximately 20 percent, and, more important, U.S. imports of petroleum products have more than doubled in volume and nearly doubled as a percentage of consumption. This growth in demand for foreign oil has helped drive up the world price of oil from just over $20 a barrel to over $100 a barrel in less than a decade. The result is an enormous transfer of wealth and leverage to those states with energy reserves. In short, U.S. energy policy has helped bring about the emergence of oil and gas producers as major power centers.


U.S. economic policy has played a role as well. President Lyndon Johnson was widely criticized for simultaneously fighting a war in Vietnam and increasing domestic spending. President Bush has fought costly wars in Afghanistan and Iraq, allowed discretionary spending to increase by an annual rate of eight percent, and cut taxes. As a result, the United States' fiscal position declined from a surplus of over $100 billion in 2001 to an estimated deficit of approximately $250 billion in 2007. Perhaps more relevant is the ballooning current account deficit, which is now more than six percent of GDP. This places downward pressure on the dollar, stimulates inflation, and contributes to the accumulation of wealth and power elsewhere in the world. Poor regulation of the U.S. mortgage market and and the credit crisis it has spawned have exacerbated these problems.


The war in Iraq has also contributed to the dilution of the United States' position in the world. The war in Iraq has proved to be an expensive war of choice -- militarily, economically, and diplomatically as well as in human terms. Years ago, the historian Paul Kennedy outlined his thesis about "imperial overstretch," which posited that the United States would eventually decline by overreaching, just as other great powers had in the past. Kennedy's theory turned out to apply most immediately to the Soviet Union, but the United States -- for all its corrective mechanisms and dynamism -- has not proved to be immune. It is not simply that the U.S. military will take a generation to recover from Iraq; it is also that the United States lacks sufficient military assets to continue doing what it is doing in Iraq, much less assume new burdens of any scale elsewhere.



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http://www.foreignaffairs.org/20080501faessay87304/richard-n-haass/the-age-of-nonpolarity.html








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