Wednesday, February 25, 2009

The U.S. Hegemony ends, the era of global multipolarity enters

08:38, February 24, 2009

By Li Hongmei People's Daily Online

The International Monetary Fund (IMF) recently published two graphics which struck people as odd by the stark juxtaposition: In 2003, GDP in the U.S accounted for 32 percent of the world total, while GDP of the emerging economies put together took up only 25 percent. In 2008, however, things just reversed with 25 percent for the U.S. and 32 percent going to the emerging economies. The two graphs show GDP as a percentage of total world output. However, what deserves notice is that the dramatic reversal could take place in just five years, and how much more will it change in the next five or the next ten years?

It is evident that the upshot of the shifting economic power signals a swift reduction of U.S. strength as a unipolar power. 'At best, America's unipolar moment lasted through the 1990s, but that was also a decade adrift…So now, rather than bestriding the globe, we are competing—and losing—in a geopolitical marketplace alongside the world's other superpowers: the European Union and China,' citing an article in Saturday's New York Times Magazine titled 'Waving Goodbye to Hegemony' by Parag Khanna.

In the post-Cold War period and with the decomposition of the former Soviet Union, the world scenario was generally subject to the U.S influence. And especially in the 1990s, it seemed conceivable and probable that the international power structure would be ended in the U.S. predominance in the political, economic and cultural systems, or simply and bluntly put, the U.S. would be 'King of the hill.' It would be that case if the U.S. were not hit by the '9.11' terrorist attack.

The U.S. used to rally the international support by launching a severe clampdown upon terror and acting as the global rescuer to keep the world free from the terrorist havoc. But quite soon, this noble campaign against terrorism, initiated by the U.S. Neo-Conservative elites, was interpreted by the international community as a camouflage used by the U.S. to hide its intention to regain monopoly over the entire globe. In 2008, nevertheless, the U.S hegemony was pushed onto the brink of collapse, as a result of its inherent structural contradictions, which proved well-rooted in the American society and far from conciliatory. A visible sign of the U.S. strength decline turned out to be the decline of its monolithic economic clout over the globe.

The typically American liberal capitalist financial system, featuring the loopholes of effective monitoring and feeding greed and exploitation, sparked a swirl of Domino Effects last year and quickly sent the whole economy into plunging. The worst ever economic downturn since the Great Depression also helped the first African-American president Barack Obama take power in a backdrop that Americans are so dearly longing for a radical change.

With the breakdown of the U.S.--dominated international power structure, the world attention would be focused on such an unavoidable question: Does the decline of U.S. geopolitical hegemony make multilateral global governance more likely? Perhaps it is still too early to rush any conclusion, but at least one thing is certain: the U.S. strength is declining at a speed so fantastic that it is far beyond anticipation. The U.S. is no longer 'King of the hill,' as a new phase of multipolar world power structure will come into being in 2009, and the international order will be correspondingly reshuffled. Albeit, for now, the new international power structure is still indiscernible—

In the Middle East, peace talks between Palestine and Israel have yet to see any fruit, and maybe not in prospect; Iran is rising as a regional power; Latin America is stepping up its efforts to break away from the U.S. orbit; the European Union cannot afford its increasing expansion; Leading players on the European Continent such as Britain, Germany and France are battling their own economic downtrend; and Russia also faces a tough job in reducing its heavy reliance on gas exports and building the modern manufacturing industry of its own.

China has grown to be a new heavyweight player and stepped into the limelight on the world stage. And its role in salvaging the plummeting world economy from hitting bottom looms large and active, as the U.S. Secretary of State Hillary Clinton said during her just wrapped-up Asian tour, 'the U.S. appreciates the continued Chinese confidence in the U.S treasuries.' If the Cold War was 'a tug of war' between East and West, and a showcase of hard power, what we have today, for the first time in history, is a global, multicivilizational and multipolar competition, and a display of smart power. To be the winner, one has to seek more cooperation rather than confrontation.


http://english.people.com.cn/90002/96417/6599374.html#

Copyright by People's Daily Online, All Rights Reserved

Tuesday, February 17, 2009

Obama Signs $787 Billion Economic Stimulus Bill

By William Branigin
Washington Post Staff Writer
Tuesday, February 17, 2009; 3:34 PM

President Obama today signed into law a $787 billion economic stimulus plan that he said begins "the essential work of keeping the American dream alive in our time."

In a speech and signing ceremony in Denver, Obama said the new law is aimed at creating millions of jobs and halting the U.S. economy's downward spiral.

Obama signed the massive, nearly 1,100-page American Recovery and Reinvestment Act at the Denver Museum of Nature and Science, a setting intended to underscore the new law's role in creating clean-energy jobs. Before the signing, the president toured a solar panel installation on the museum's roof.

From Colorado, Obama is scheduled to fly to Arizona, where he plans to unveil an initiative tomorrow to help millions of homeowners avoid foreclosure.

The bill passed the House Friday by a vote of 246 to 183 and was approved that night in the Senate by 60 to 38. No House Republicans voted for the package. In the Senate, only three Republicans supported the bill, narrowly giving it a filibuster-proof majority and handing Obama a major legislative victory within his first month in office.

Obama said the legislation will save or create 3.5 million jobs over the next two years, pulling the nation back from the brink of what he has called a potential economic catastrophe. The measure aims to spur job growth through massive new investments in energy, transportation, education and health-care projects, while reviving social safety-net programs.

A little more than a third of the legislation's price tag comes from tax cuts. The rest of the costs, about $507 billion, are from spending.

In part, the new law is intended to make good on Obama's campaign pledges to upgrade the nation's aging roads, bridges and electricity grid; overhaul and computerize medical record-keeping and develop alternative energy resources to fight global warming and reduce U.S. dependence on foreign oil.

The bill includes nearly $50 billion for roads, bridges, transit and rail, including $8 billion for high-speed rail.

Sunday, February 1, 2009

‘Grimmest’ Davos Ever Brings Anger, Finger-Pointing at Bankers

By James Hertling and Simon Kennedy

Feb. 2 (Bloomberg) -- The theme of the World Economic Forum’s annual meeting was “Shaping the Post-Crisis World.” Unfortunately, the assembled executives, policy makers and do- gooders were stuck in the here and now.

The search for scapegoats and the worst economic prospects since World War II resulted in a gathering marked by fear, anger and bitterness, a far cry from the usual search for consensus.

Turkish Prime Minister Recep Tayyip Erdogan stormed out of a panel discussion and Russian Prime Minister Vladimir Putin hectored the U.S. as the font of the world’s economic woes. Almost everyone blamed the few bankers who showed up for the near-collapse of the financial system.

Attendees were “less reluctant to criticize, and sometimes very vocally criticize, the U.S. and its capitalist system because of the problems we’re having,” said David Rubenstein, co-founder of the Carlyle Group, who first came to Davos a decade ago. “Maybe that’s deserved, but it’s a big change.”

“Everyone I spoke to says it’s the grimmest Davos they’ve ever been to,” said Kenneth Rogoff, professor of economics at Harvard University and a World Economic Forum regular since 2002. “The mood has been very depressed. It’s a low-burn depression.”

Another big change was the virtual absence of Wall Street figures among the 2,500 delegates at the conference, which ended yesterday.

‘Stupid Things’

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon was the only U.S. banking chief who showed up. He made a concession to the mood of this year’s event by accepting some blame for the collapse that has led to more than $1 trillion of writedowns. He deflected the rest at regulators.

“God knows, some really stupid things were done by American banks and by American investment banks,” Dimon said. “To policy makers, I say: ‘Where were they?’”

That attitude was tough for some to swallow. At one session, a call for curbs on bankers’ bonuses was met with applause by sections of the audience.

“We should not trust these bankers,” said Nassim Nicholas Taleb, author of the best-selling book “The Black Swan.” “Look at their track record. The only way to stop the process is for the government to own those banks.”

With the world’s elite nursing a collective hangover after the greatest era of global prosperity came to an end, there was enough bile to go around.

Erdogan’s Walkout

Erdogan stunned a packed house on Jan. 29 by walking out on a debate on last month’s war in the Gaza Strip. He claimed that the session’s moderator didn’t give him equal time with Israeli President Shimon Peres and vowed never to return to Davos. By the time he met the press an hour later, he promised to reconsider.

Anyone who thought Barack Obama’s election as president would temper criticism of U.S. policies would have been disappointed. Economists questioned his $819 billion stimulus plan, urged him to deliver another rescue package for banks and fretted about soaring national debt.

“People are looking for the solution but don’t yet have the question formulated,” Arif Naqvi, chief executive officer of Abraaj Capital Ltd., which manages $7.5 billion, said.

The need for action wasn’t in debate. Away from the slopes, U.S. stocks capped their worst ever January, the International Monetary Fund forecast the weakest global growth in 60 years and companies from Starbucks Corp. to Caterpillar Inc. cut jobs.

Deepening Recession

That led many attendees to predict they’ll still be in a funk when they return in 2010.

“We’re in a multi-multi year problem,” Howard Lutnick, chief executive officer of Cantor Fitzgerald LP., said. “We’ve weathered horrible times before. That’s what lies ahead of us now.”

Delegates also took turns bashing America’s policies and its role in the world.

Chinese Premier Wen Jiabao and Putin cited the U.S. for leading the world into recession in back-to-back speeches on the opening day.

“Just a year ago, American delegates speaking from this rostrum emphasized the U.S. economy’s fundamental stability and its cloudless prospects,” Putin said.

To cap it off, Putin dismissed a query from audience member Michael Dell, head of personal-computer maker Dell Inc., about what the technology community could do to assist Russia.

“We don’t need any help. We are not invalids,” Putin said.

Balanced Tone?

The spats gave this year’s conference a more balanced tone, said Bahraini banker Khalid Abdulla-Janahi, who remembers then- Vice President Dick Cheney “hammering the Russians, the Iranians and many others” during his 2004 visit.

“This time, it was a two-way street,” said the chairman of Ithmaar Bank BSC. “We heard Putin hammering the West and Erdogan standing up to Peres. That’s how it should be.”

Those who made it to the five-day Alpine retreat insisted that they weren’t wasting their time or their money --and they really didn’t mind the muted tone of the event’s party circuit.

“People are conscious about throwing parties or even smiling this year,” said Martin Sorrell, chief executive of WPP Group Plc. “It’s become a little too big, but it’s never been more relevant.”


http://www.bloomberg.com/apps/news?pid=20601087&sid=aSrfvUUeboBM&refer=home#

To contact the reporter on the story: James Hertling in Davos at jhertling@bloomberg.net; Simon Kennedy in Davos at skennedy4@bloomberg.net
Last Updated: February 1, 2009 18:01 EST

Rafael V. Mariano, chairperson of the Peasant Movement of the Philippines, 2000

Food has long been a political tool in US foreign policy. Twenty-five years ago USDA Secretary Earl Butz told the 1974 World Food Conference in Rome that food was a weapon, calling it 'one of the principal tools in our negotiating kit.' As far back as 1957 US Vice-President Hubert Humphrey told a US audience, "If you are looking for a way to get people to lean on you and to be dependent on you in terms of their cooperation with you, it seems to me that food dependence would be terrific."